WIP-Lead-Time-Reduction-Playbook - Level 1

WIP Lead Time Reduction Playbook – Level 1 (Summary)

This playbook provides a structured framework for reducing Work-In-Progress (WIP) to accelerate delivery times, improve cash flow, and boost customer satisfaction. Based on Little’s Law (Lead Time = WIP ÷ Throughput), it demonstrates that every 10% WIP reduction can yield a similar percentage drop in lead time.

Excess WIP ties up 25–40% of operating capital, occupies 30–50% of facility space, hides bottlenecks, increases errors by up to 18.7%, and delays market responsiveness. The playbook outlines a five-step framework:

Key Strategies: Implement WIP limits (e.g., 38–42 units), balance workloads, reduce batch sizes, cross-train staff, and use visual management (Kanban, dashboards). Technology enablers include digital Kanban, analytics dashboards, and mobile workflow tools.

Case results show up to 73.6% lead time reduction (42 to 11.1 days) and $1.24M quarterly savings through targeted WIP cuts and smaller batches. A phased rollout—Preparation (5 weeks), Pilot (11 weeks), and Full Deployment (16+ weeks)—ensures measurable, sustained gains.

KPIs tracked: Lead time, WIP levels, throughput, quality, on-time delivery, inventory turns, and WIP limit violations.

End goal: faster delivery, higher quality, lower costs, and stronger market agility through disciplined WIP control.