George, Michael Louis - Institute of Business Entropy - 2013
The Ohno Criterion states that WIP with faster velocities have lower cost than WIP with average slower velocities, in … manufacturing cycles per unit time: v=G/W where W= number of pieces of Work In Process Inventory (WIP), and G = rate at which pieces … exit from WIP to finished goods per unit time. This velocity is derived from Little’s Law: average cycle time t=W/G units …