WIP-Lead-Time-Reduction-Playbook - Level 2

WIP Lead Time Reduction Playbook – Level 2 (Summary)

This playbook provides a structured, data-driven approach to reducing Work-In-Progress (WIP) and compressing lead times by applying Little’s Law (Lead Time = WIP ÷ Throughput) and lean operational practices. It shows how cutting WIP can free up capital, improve cash flow, reduce errors, and boost delivery speed without increasing resources.

Core Principles & Impact

• Lead Time Drivers:
• WIP Costs:
• Business Benefits:

Framework for Reduction.

Proven Results (Case Examples)

• Precision Aerospace cut WIP from 120 to 40 units, slashed lead time from 42 to 11.1 days (73.6% faster), and saved $30,800/day in carrying costs.
• MediTech improved on-time delivery from 76% to 94.5% and increased repeat business by 32% via 30% WIP reduction.

Key Enablers ensure adherence to WIP limits and continuous improvement.

This is a practical, high-ROI method for boosting operational agility, profitability, and customer satisfaction through disciplined WIP control.