managewell.net

Second part of my article on exploring how Little’s Law related to the Agile Project Management just got printed in PM World Today. Here is the abstract: Little’s Law states that inventory in a process is the multiplication of throughput and the flow-time. In first paper of this two-part series, we took an every-day example to discuss Little’s Law at length. We also briefly looked at the implications of Little’s Law for manufacturing and for software development. In traditional manufacturing, there is a strong emphasis on plant capacity utilization as a core driver in cost management. However, a high plant capacity utilization requires (or rather leads to) high inventory to ensure the production doesn’t slow down for want of raw materials. High inventory in turn leads to a low inventory turnover, signifying poor sales, thus having high economic implications. Inventory is...