I have found some formulas of Little's Law in relation to the application in Kanban, but it still makes little sense for me. Two quotations from different sources.
Average Cycle Time = Average Work In Progress / Average Throughput Little’s law locks the three measures (WIP, throughput and cycle time) together in a unique and consistent way for any system to which it applies.
According to Little’s Law, Average Throughput = Average WIP divided by average cycle time
A number of questions arise. Why would I need this in order to calculate the average time if I can just sum up all cycles time from each item and divide it by the number of items?
Isn't "Work in Progress" is a fixed value and thus can't be average?
My WIP is 3, average cycle time is 1 day. 3/1 = 3. Throughput is 3. 3 what? :) Parrots?
The first formula is just not applicable. Where can I find a value of throughput?