Related terms: Abort, Commitment Point
WiP, Work in ProgressMeasured in: work itemsDefinition: The number of work items which have entered the system but which are not yet either completed or discarded.Related terms: Arrival Rate, Throughput, Delivery Rate, TiPReferences: [ande], [burr], [hopp], [marc], [rein]
TiP, Time in ProcessMeasured in: units of time
Alternatives: Cycle Time (but see cautionary note below), Lead Time (when referring specifically to the time in process in a Kanban development system from the Commitment Point to delivery), Throughput Time [modi], Time In System [rein]
Definition: The time that a work item remains in the system or sub-process under consideration prior to being either completed or discarded. This is the key metric in understanding the time to delivery of a system. More specific terms may be derived by replacing "Process" with the particular part of the process of interest, for example "Time in Development". As with all the terms in Little's Law the scope of the system or sub-process under consideration must be well defined to ensure they are meaningful.
A key reason for recommending this term is that it sidesteps the "Cycle Time versus Lead Time" debate which shows no sign of resolution within the communities that use these terms.
Related terms: Cycle Time, Lead Time, Touch Time, Takt Time
References: [macc]
Cycle Time
Measured in: units of time
Alternatives: For CT1 (defined below) use its reciprocal - Delivery Rate; for CT2 use TiP or (where applicable) Lead Time
Definition: The time taken for a "cycle". This is a very ambiguous term which should not be used in Kanban without qualification. Examples of where it is commonly used in the literature are:- In a factory: the time between completed units exiting the system [chew], [like], [marc], [woma]
- For a queue: the time an item remains in the queue [litt]
- For an airport security control: the (average) time between two items completing the process [modi]
- For a work station or machine: the time between completed parts exiting the station [chew], [like], [marc], [woma]
- For a worker/team: the time between starting and completing an item [hopp], [modi], [rein], [vaca]
- For a project/team: the time between deliveries of completed items [beck]
It is incorrect to use the term for any period which is not contiguous, e.g. Touch Time or aggregated time in a column. Unfortunately such usage may be found in some tool implementations.
Broadly speaking there are two categories of usage for Cycle Time which may be referred to as CT1 and CT2. CT1 is the time between successive items emerging from a station or system. CT2 is the time an item takes from entering the system to leaving it. It is left to the reader to decide which of the examples above are CT1 or, CT2. Note that there is a special case (when WiP=1) where CT1=CT2. Unfortunately this just tends to confuse people further, especially when the example given to define the term is an example where WiP=1!
Where Cycle Time is used in the Kanban community, its definition "generally" coincides with that of Lead Time for Kanban development systems given below.
Author's Note: Since there is no universally accepted definition of what Cycle Time means in a flow system, the term should simply be avoided.
Related terms: TiP, Lead Time, Touch Time, Takt Time
References: [beck], [burr], [chew], [hopp], [litt], [marc] [modi], [rein], [roth], [vaca], [woma]
Lead Time
Measured in: units of time
Definition: In general usage, Lead Time means the time from the request for an item to the delivery of the item (this may simply be the time to get an item from stock or the time to specify, design, make and deliver an item). However its usage in Kanban development systems is more specific. It indicates the time from the Commitment Point to the delivery. For this to be useful the commitment and delivery points must be made explicit.
Note there remains some ambiguity in this term and I would recommend using TiP in most circumstances, and certainly when analysing sub-processes in a larger flow system. If you use Lead Time, qualify it if necessary (e.g. Development Lead Time and ensure that you define the meaning that you wish to be assigned to it in your context.
Related terms: TiP, Cycle Time, Touch Time, Takt Time
References: [ande], [burr], [marc]Touch TimeMeasured in: units of timeAlternatives: Value-Creating TimeDefinition: The sum of all the times during which a work item is actively being working on (excluding wait times, for example being held in stock or in queues).Related terms: TiP, Cycle Time, Lead Time, Takt TimeReferences: [modi], [woma]
Takt TimeMeasured in: units of timeDefinition: The projected customer demand expressed as the average unit production time (i.e. the time between the completion of work items) that would be needed to meet this demand. It is used to synchronise the various sub-processes within the system being designed to meet demand without over or under production.Related terms: TiP, Cycle Time, Lead Time, Touch TimeReferences: [marc], [rike], [woma]
Flow EfficiencyMeasured in: %Definition: The ratio of the time spent working on an item (Touch Time), to the total time in process (TiP), i.e.:Flow Efficiency = Touch Time / TiP
Related terms: Resource EfficiencyReferences: [modi]
Resource EfficiencyMeasured in: %Definition: The ratio of the time a resource (for example a person!) is actively working on a work item, to their total available time.Related terms: Flow EfficiencyReferences: [modi]
References- [ande] Anderson, David J. Kanban, Blue Hole Press. (2010)
- [beck] Beck, Kent and Martin Fowler, Planning Extreme Programming, Addison Wesley (2000)
- [burr] Burrows, Mike. Kanban from the Inside, Blue Hole Press. (2014)
- [chew] Chew, W. Bruce, Harvard Business School Glossary of Terms [as referenced by Fang Zhou]. (2004)
- [hopp] Hopp, W.J and M. L. Spearman, Factory Physics, 3rd ed., McGraw Hill, International Edition. (2008)
- [like] Liker, Jeffrey K. The Toyota Way, McGraw Hill. (2004)
- [litt] Little, J. D. C and S. C. Graves. Little's Law, pp 81-100, in D. Chhajed and TJ. Lowe (eds.) Building Intuition: Insights From Basic Operations Management Models and Principles. doi: 10.1007/978-0-387 -73699-0, (c) Springer Science + Business Media, LLC. (2008)
- [lkun] Lean Kanban University. Glossary of Terms, from Kanban from the Inside, Mike Burrows. (2014)
- [marc] Marchwinski, C. et al Eds, 4th ed, Lean Lexicon, a graphical glossary for Lean Thinkers. (2008)
- [macc] Maccherone, Larry. Introducing the Time In State InSITe Chart. LSSC. (2012)
- [modi] Modig, N. and P. Åhlström, This is Lean, Rheologica Publishing. (2013)
- [rein] Reinertsen, Donald G, The Principles of Product Development Flow, Celeritas Publishing. (2005)
- [roth] Rother, Mike and John Shook, Learning to See: Value Stream Mapping to Add Value and Eliminate Muda, Lean Enterprise Institute. (2003)
- [vaca] Vacanti, Daniel S. Actionable Agile Metrics for Predictability: An Introduction, LeanPub. (2015)
- [woma] Womack, J. P. and D. T Jones, Lean Thinking, Simon and Schuster. (1996, 2003)