How to Calculate WIP in Kanban with Cumulative Flow Diagram

Mark Draper

·October 20, 2023

·7 min read

How to Calculate WIP in Kanban with Cumulative Flow Diagram — Image Source: unsplash

Calculating Work in Progress (WIP) in Kanban with Cumulative Flow Diagram

Calculating work in progress (WIP) is a crucial aspect of effectively managing workflow and identifying bottlenecks in a kanban system. By understanding the amount of work that is currently in progress, teams can optimize their processes and ensure a smooth flow of tasks. One effective tool for tracking WIP is the Cumulative Flow Diagram (CFD). A CFD provides a visual representation of the flow of work over time, allowing teams to monitor WIP levels and identify any areas of concern. In this blog post, we will provide a step-by-step guide on how to use a CFD to calculate WIP in your kanban system.

Collecting Data on Completed Tasks

To calculate work in progress (WIP) using a Cumulative Flow Diagram (CFD), it is important to collect data on completed tasks within a specific time period. This data will serve as the basis for analyzing the flow of work and identifying WIP levels. Here are the steps to follow:

Step 1: Define the Completed Tasks

The first step is to identify the tasks that have been completed within the desired time frame. It is crucial to ensure that these tasks are clearly defined and measurable. This means breaking down larger tasks into smaller, actionable items that can be easily tracked and evaluated.

Step 2: Record the Completion Time

Once you have identified the completed tasks, it is essential to record the date and time when each task was finished. Consistency in recording completion times is key, so make sure to use a standardized format throughout your data collection process. This will enable accurate analysis and comparison of task completion rates over time.

By defining completed tasks and recording their completion times, you will have a solid foundation for creating a Cumulative Flow Diagram and calculating WIP in your kanban system. Let's move on to the next steps in this guide to further analyze and visualize your workflow.

Plotting the Number of Tasks Completed Against Time

Once you have collected data on completed tasks and their respective completion times, the next step is to plot the number of tasks completed against time. This will provide a visual representation of your workflow and help identify any patterns or trends. Here are the steps to follow:

Step 3: Create a Time Series Chart

To create a time series chart, you can use a line chart or a bar chart, depending on your preference. The x-axis should represent time, while the y-axis should represent the number of tasks completed. Each data point on the chart will indicate the number of tasks completed at a specific point in time.

Step 4: Analyze the Chart

Once you have plotted the data on your time series chart, it's time to analyze it. Look for patterns, plateaus, or inclines in the graph. Plateaus indicate periods of stable work in progress (WIP), while inclines suggest an increase in WIP levels. Identify periods of high or low task completion rates and take note of any significant changes or anomalies.

Analyzing the chart will provide insights into your workflow efficiency and help you understand how work is flowing through your kanban system. It can also highlight potential bottlenecks or areas for improvement. By visually representing your data, you can gain a better understanding of your team's performance and make informed decisions to optimize your processes.

Next, we will delve deeper into identifying plateaus and inclines in order to calculate WIP accurately using the Cumulative Flow Diagram (CFD).

Identifying Plateaus or Inclines in the Graph

After creating a time series chart and analyzing it, the next step is to identify plateaus and inclines. These patterns in the graph can provide valuable insights into the stability and fluctuations of work in progress (WIP) within your kanban system. Here's how to do it:

Step 5: Identify Plateaus

Plateaus on the chart indicate periods of stable WIP, where the number of tasks completed remains relatively constant over time. To identify plateaus, look for horizontal sections of the graph where there is minimal change in the number of tasks completed. Once you have identified these plateaus, calculate the average number of tasks in progress during these periods. This average represents your WIP during stable phases.

Step 6: Identify Inclines

Inclines on the chart indicate periods of increasing WIP, where more tasks are being added than completed over time. These inclines suggest potential bottlenecks or inefficiencies in your workflow. To identify inclines, look for upward slopes or steep increases in the number of tasks completed on the graph. Determine the average number of tasks in progress during these inclines to understand your WIP during periods of high activity.

By identifying plateaus and inclines, you gain a deeper understanding of how work is flowing through your kanban system. This information allows you to pinpoint areas that may require attention or improvement. The next steps will guide you on calculating the average number of tasks in progress during plateaus and inclines using a Cumulative Flow Diagram (CFD).

Determining the Average Number of Tasks in Progress

Once you have identified plateaus and inclines in your time series chart, the next step is to determine the average number of tasks in progress during these periods. This will provide a more accurate representation of your work in progress (WIP) within your kanban system. Here's how to do it:

Step 7: Calculate the Average WIP

To calculate the average WIP, sum up the number of tasks in progress during plateaus or inclines. For each plateau or incline, add up the number of tasks completed at each data point within that period. Once you have the total, divide it by the number of plateaus or inclines to get the average WIP.

Step 8: Use the Average WIP for Analysis

The average WIP serves as a valuable metric for analyzing your workflow and identifying bottlenecks. By comparing it with your team's capacity and other performance indicators, you can gain insights into potential areas for improvement. A higher average WIP may indicate overburdened resources or inefficient processes, while a lower average WIP may suggest underutilized resources.

Monitor the average WIP over time to track improvements or changes in your kanban system. Regularly reviewing this metric allows you to make data-driven decisions and optimize your workflow accordingly. By keeping an eye on your average WIP, you can continuously refine your processes and ensure a smoother flow of work.

In the next section, we will discuss how accurately measuring and managing WIP using a Cumulative Flow Diagram can lead to a more efficient kanban system.

Accurately Measuring and Managing WIP in Kanban

Calculating work in progress (WIP) using a Cumulative Flow Diagram (CFD) provides valuable insights for managing workflow in a kanban system. By analyzing plateaus and inclines on the CFD, project managers can identify areas for improvement and optimize their processes. Regularly monitoring and adjusting WIP based on these insights can lead to a more efficient and effective kanban system. Accurate measurement of WIP allows teams to balance their workload, identify bottlenecks, and make data-driven decisions to improve productivity. By implementing these strategies, organizations can achieve better flow, increased efficiency, and ultimately deliver high-quality results.