The lead time of a system is heavily influenced by both the utilization and the variation. There are approximations available to estimate this relation, and one of them is the Kingman formula. In this post I would like to introduce you to this equation and describe the fundamental understanding of it. Luckily, you don’t really need the formula for your daily dose of lean. The equation itself has little practical use. However, this relationship is important for understanding the behavior of your production system. While you won’t use the Kingman formula to evaluate your production system, understanding the equation will help you in tweaking your system in the right direction.

Continue reading The Kingman Formula – Variation, Utilization, and Lead Time