So, when we talk about Lean and Process Lead Time (PLT), we just rearranged the formula to say that PLT, also known as Little’s Law, is calculated as PLT=WIP/ER. In simpler terms, Process Lead Time, PLT (how long it takes for something to go through a process from start to finish), is essentially the same as WIP or Work in Process (the average number of items waiting) divided by ER or Exit Rate (the average number of items finishing the process in a set period).
Let's illustrate Little’s Law using a fun example commonly employed in Lean Six Sigma training. Picture yourself at Disney World with your family, strategizing to minimize your kids' wait times for the best rides. What does this entail if we evaluate your decision-making using PLT? Here's the breakdown: Before getting on a ride, such as the Jungle Cruise, you begin by counting the number of people in line in front of you, the WIP. Subsequently, you monitor the rate at which individuals exit the line and board the boat within a minute. This rate is known as your exit rate, or ER.
It's time to crunch some numbers! You aim to determine how long you'll wait in line before getting on the boat. The Process Lead Time (PLT) is simply the number of people ahead of you (WIP), let's say 160, divided by the Exit Rate (ER) of 20 people boarding per minute. By using the formula PLT=WIP/ER, your wait time would be 160 people/20 people per minute. Thus, a quick calculation shows that you'll only have to wait around eight minutes before setting sail with your group. Pretty good, isn't it?
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