Applying Little's Law and the Theory of Constraints
Applying Little's Law and the Theory of Constraints
- Publication:
- Six Sigma Forum Magazine
- Date:
- February 2005
- Issue:
- Volume 4 Issue 2
- Pages:
- pp. 37-41
- Author(s):
- Godfrey, Michael R., Bandy, Brent
- Organization(s):
- University of Wisconsin Oshkosh, Oshkosh, WI
Abstract
Little's Law holds that inventory is equal to flow time multiplied by flow rate and is best understood when used to reduce cycle times. The theory of constraints (TOC) focuses on identifying the bottleneck and then exploiting and elevating it. Since Little's Law and TOC are relevant tools as part of broader Six Sigma or lean projects, students and practitioners must learn to apply these techniques appropriately. Two models provide a framework for moving from the basics to a more complete understanding of both Little's Law and TOC. The first model is simple and deterministic, while the second is stochastic, involving random elements for both arrivals and processing times.