What is Work In Progress (WIP) limits? explained with examples

Work In Progress (WIP) limits


Work in Progress or WIP limits are constraints placed on the number of tasks or parts of a project that can be underway at any one time. This is a key component of Kanban, aiming to improve flow, reduce cycle time, and avoid bottlenecks in production. Regardless of the Agile methodology being used, WIP limits are a great practice when you need to get things done.

Work in Progress or WIP limits create a purposeful constraint designed to optimize the flow of work through various stages of the development process. By limiting the number of tasks that any one person or team can work on simultaneously, WIP limits help to focus effort and resources on completing tasks before new ones are started. This focus helps to reduce context switching, often associated with juggling multiple tasks, which can drain productivity and lead to more mistakes.


Why WIP limits matter?

WIP limits encourage the completion of tasks in progress before new tasks begin. Reducing simultaneous tasks typically leads to a faster turnaround for each individual task. This reduces the overall cycle time from start to finish.

Cycle time is the amount of time that it takes to complete a task from the very start to finish. Quicker cycle times mean that products or features can be delivered more rapidly. This enhances the team's ability to respond to changes and feedback.

With WIP limits in place, teams are less likely to rush through tasks to get to the next one because the focus is on completion rather than starting new tasks. Focusing on the task at hand helps to improve the quality of work. More time and attention are devoted to each task. High quality reduces the need for rework, further enhancing efficiency.


Implementing WIP limits makes it easier to identify bottlenecks in the process. When work backs up because the WIP limit has been reached, it signals that there's a problem in the workflow that needs addressing. Identifying bottlenecks allows teams to adjust their processes or allocate their resources more effectively. It helps to smooth out the workflow and increase efficiency.

WIP limits require that team members communicate effectively about task priorities and progress. Better communication can lead to better collaboration because team members coordinate to ensure that tasks are moving smoothly through the workflow. And better collaboration often results in a more cohesive team and a more efficient development process.

By limiting WIP, teams can manage their workload more effectively, preventing overcommitment and reducing the risk of burnout. Keeping workload at manageable levels helps maintain good morale, and it ensures sustained productivity over long periods.

Understanding WIP with an examples

Meet Alex, a data analyst on a project team at a tech company. One morning, Alex begins working on an important task, compiling a detailed performance report from the latest user data, which is crucial for the upcoming quarterly review.

30 minutes into data analysis, Alex receives an urgent message from a team member, Sarah, who needs immediate help with extracting and formatting data for a client presentation. Considering it urgent, Alex sets aside the performance report and begins assisting Sarah.

While helping with the data extraction, Alex is approached by the project manager, who urgently requests an analysis of recent customer feedback for a surprise meeting happening in an hour. The task seems critical, so Alex pauses the client data work and starts analyzing the customer feedback.

By midday, Alex has three unfinished tasks. The performance report is half complete, the data extraction for the client presentation is on hold, and the customer feedback analysis is incomplete. Despite a very busy morning, Alex has nothing completed to show for the efforts.

So, what can Alex do? Here are a few ideas. Before switching tasks, Alex should assess the priority and urgency of new requests against current tasks. If the performance report is critical for the quarterly review and time-sensitive, it should remain the priority unless something truly more urgent arises.

Alex could benefit from setting a limit on the number of tasks in progress known as WIP limits. By committing to not handling more than one significant task at a time, Alex could ensure more focused and effective work.

When new tasks emerge, Alex should communicate the current workload and negotiate deadlines. For example, telling Sarah, "I'm currently focused on our quarterly performance report, which I need to finish by 2 p.m. Can I help you with the data extraction right after that?" it shall help to set some real expectations in order to complete the project within the deadline.

And when the project manager has a new request, Alex might say, "Sure, I can help with the analysis of customer feedback. I'll need to set aside the quarterly report I'm working on. It sounds like the meeting is a higher priority."

It's possible that when the project manager hears this, they might realize that both of these items are urgent, and they didn't realize the work that Alex would need to stop in order to start the new task. The transparency and communication can be very helpful when trying to reduce WIP.

Another Example:

One application of WIP limits is metered entry on highways. Metered entry, often implemented using ramp meters, controls the rate at which vehicles are allowed to enter a freeway. As the driver approaches a highway on-ramp equipped with a metered entry system, they'll see a traffic signal typically just before the merge point onto the highway. The light generally operates on a simple red and green cycle, where red indicates that the driver must stop and wait, and green permits the driver to proceed and merge onto the highway.

The goal is to space out vehicles entering the highway to prevent the merging process from causing congestion or reducing the overall flow of traffic on the highway. Studies have shown that although metered entry might cause a slight delay at on-ramps, it generally improves overall travel times on the freeway by reducing the more severe delays that would occur due to congestion. If you think of each car as work trying to make its way through a system, limiting the work in progress means that each vehicle has improved travel time from start to finish.

Conclusion:

In short, WIP limits improves the efficiency of the teams in order to handle and operate multiple tasks at once while ensuring the better task completion and with better quality. It also limits burnouts of the employees and maintains the steady progress of the project by making workflows smoother and more predictable. 

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