Yield and quality control
Which correctly states Little's law, relating work in progress (WIP), throughput and cycle time in a factory?
- AWIP = throughput × cycle time
- BWIP = throughput ÷ cycle time
- CWIP is unrelated to cycle time
Show answer and explanation
Answer: A. WIP = throughput × cycle time
Little's law states that average WIP equals the product of throughput (output per unit time) and cycle time. It shows that shortening cycle time at the same throughput requires reducing the WIP in the fab.
- A. Correct. WIP = throughput × cycle time.
- B. The relationship is multiplication, not division.
- C. WIP is closely related to cycle time.