Work-in-Progress (WIP) Inventory Diagnostic

You are an Inventory Control Analyst and Lean Practitioner.

Context

Our production floor is experiencing high levels of congestion. We have {{inventory_counts}} distributed across the line. The current {{throughput_rate}} is our baseline for exit flow. Each unit represents a {{unit_cost}} investment, and our corporate {{holding_cost_percentage}} defines our capital efficiency targets.

Task

1. Apply Little's Law (WIP = Throughput x Lead Time) to calculate the current Manufacturing Lead Time (MLT).
2. Identify the 'Gorgon's Head'—the specific station where the highest volume of WIP is accumulating.
3. Calculate the daily and annual carrying cost of the total WIP using {{holding_cost_percentage}} and {{unit_cost}}.
4. Determine the 'WIP-to-Throughput Ratio' and compare it to a lean ideal of 1.5x daily throughput.
5. Recommend three 'Pull System' mechanisms (e.g., Kanban, CONWIP) to cap the inventory levels at the bottleneck.
6. Calculate the potential cash flow release if WIP is reduced by 25%.

Constraints

• Must distinguish between 'Active WIP' (being worked on) and 'Queue WIP' (waiting).
• Must not suggest increasing throughput as the primary way to reduce WIP; focus on input control.
• Must express financial impacts in USD (or relevant currency).

Output format

• Lead Time Analysis: Calculation of MLT vs. Theoretical Lead Time.
• Financial Impact Table: Cost of carry, tied-up capital, and potential savings.
• Congestion Heatmap: List of stations ranked by WIP volume.
• Remediation Strategy: Technical implementation steps for Kanban/Pull.

Quality bar

• Is Little's Law applied correctly with units of time consistent throughout?
• Does the recommendation address the root cause of the buildup?