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Re: WIP

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  • David J Anderson
    In my work (and my book) I modeled it as investment. The thinking it up can be time-boxed or controlled in some manner. Answer the question... How much are
    Message 1 of 27 , Sep 6, 2005
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      In my work (and my book) I modeled it as investment. The thinking it
      up can be time-boxed or controlled in some manner. Answer the
      question...

      How much are willing to invest in our next innovative idea?

      This is usually constrained in most companies by the funding for the
      marketing department. One of the challenges is that often cost
      accounting prevents technical people from engaging at an early
      enough stage to improve the quality of the ideas.

      David

      --- In scrumdevelopment@yahoogroups.com, Ron Jeffries
      <ronjeffries@X...> wrote:
      > On Tuesday, August 30, 2005, at 1:15:06 PM, David J Anderson wrote:
      >
      > > To my mind, it is clearly not WIP unless it has been started,
      and
      > > that ought to involve a commitment back to the customer
      detailing
      > > when it will be delivered. In manufacturing terms a "due date".
      >
      > > Simply identifying it for the backlog does not count as starting.
      >
      > > The fact that the customer has dreamt it up and considers it
      part of
      > > their value stream is not justification for it becoming WIP. To
      use
      > > the manufacturing term, you could consider it "stock" i.e. it is
      in
      > > inventory, but it isn't WIP until a commitment is made and
      resources
      > > are assigned to work on it.
      >
      > Suppose that thinking it up was costly. Would we still not list it
      > as WIP? I think we would. Perhaps WIP is supposed to be measured in
      > dollars or time, not number of items?
      >
      > Ron Jeffries
      > www.XProgramming.com
      > Example isn't another way to teach, it is the only way to teach.
      > --Albert Einstein
    • David J Anderson
      Dollar Days is all about amplication. It s about improving signal to noise ratio in management accounting. From the perspective of this thread, it is largely
      Message 2 of 27 , Sep 6, 2005
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        Dollar Days is all about amplication. It's about improving signal to
        noise ratio in management accounting. From the perspective of this
        thread, it is largely irrelevant. We're deciding where to start the
        WIP measurement and the lead time measurement.

        David


        --- In scrumdevelopment@yahoogroups.com, "Clarke Ching" <lists@c...>
        wrote:
        > Ron wrote:
        > >Perhaps WIP is supposed to be measured in dollars or time, not
        number of
        > items?
        >
        > Goldratt recommends using "Dollar-days" to measure WIP in factories -
        thus
        > taking into account both time and dollars. I've posted a note below
        > describing Dollar-Days, which I originally sent to Kent Beck's
        Software in
        > Process yahoo group.
        >
        >
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