Work in Progress (WIP) Limits:

• WIP limits are not calculated through a formula but are determined based on the team's capacity and the workflow stages. Adjusting WIP limits is crucial for managing the flow of work and ensuring that work items move smoothly through the Kanban system.

  
  

Lead Time:

• Lead Time = Time when work was completed - Time when work was started

• Lead time measures how long it takes for a work item to move from start to finish in the Kanban system. It helps teams understand their delivery times and identify areas for improvement.

  
  

Cycle Time:

• Cycle Time = Time when work was finished - Time when work actually started

• Similar to lead time but specifically focuses on the time taken for the work to be completed once it has started, excluding any waiting time before the work begins.

  
  

Throughput:

• Throughput = Number of work items finished / Unit of time

• Throughput measures the rate at which the team completes work items. It's a key indicator of productivity and efficiency.

  
  

Cumulative Flow Diagram (CFD):

• While not a formula, a CFD is a crucial visual tool in Kanban that shows the number of work items in each stage of the workflow over time. It helps identify bottlenecks and capacity issues.

  
  

Little’s Law (used to connect WIP, throughput, and cycle time):

• Average Cycle Time = Average WIP / Average Throughput

• Little’s Law provides a theoretical foundation to understand the relationship between work in progress, throughput, and cycle time, offering insights into how adjusting one can affect the others.

  
  

Blocker Clustering:

• Identifying and analyzing the frequency and impact of blockers can help in improving the flow. While not a specific formula, tracking blocker clusters is an analytical approach used to identify and mitigate recurring impediments in the Kanban system.

  
  

Flow Efficiency:

• Flow Efficiency = (Value-added Time / Lead Time) * 100

• This metric helps teams understand what proportion of the lead time is actually spent on value-adding activities versus waiting or non-value-adding activities.