Why setting the WIP limit is important from a project management perspective?

If you are a project manager like me then WIP is a term that you use a lot. For those who are new to this term, it stands for Work In Progress or Work In Play.

Why Limit WIPs ?

If a task is in WIP status, it means there is a risk of completion till it actually reaches the done status. So, having too many tasks in WIP status is equivalent to opening up multiple streams of risk to the project. This also hides the causes of bottlenecks in the project process since your focus as a PM is distributed to multiple items. In fact, when a task enters WIP, you actually have a person or a group investing time on it. This means it is pulling in investment. Technically, a task in WIP only provides a return when it is completed and deployed. We can avoid all these additional streams of risks if we just start limiting WIP tasks.

For example, a typical software maintenance project running Kanban with 3 Developers,1 Quality Analyst, and a Product Owner should try to limit their WIPs to not more than 4 tasks.

Limiting WIPs keep the team focused by not taking up too much work. Instead of shifting between all WIPs, the goal here is to keep things lean by ensuring a new task is only picked once the task in WIP status is completed. Our goal is to ensure the cycle time for a task is minimized by exposing possible bottlenecks caused in the project life cycle.

The Detrimental Effects of Excessive WIP: A Multi-faceted Problem

Uncontrolled WIP manifests in a variety of negative consequences, impacting not only project timelines and budgets but also team morale and overall organizational performance.

• Decreased Team Morale and Increased Stress: Constantly juggling multiple incomplete tasks can lead to increased stress, frustration, and burnout among team members. This can negatively impact morale, reduce job satisfaction, and ultimately lead to decreased productivity and higher employee turnover.
• Increased Cycle Time and Delayed Delivery: When teams are burdened with too many concurrent tasks, cycle times inevitably increase. Context switching between tasks introduces significant overhead, leading to decreased efficiency and prolonged project durations. The result is delayed delivery and potentially missed market opportunities.
• Diminished Focus and Reduced Quality: A heavy WIP load forces team members to divide their attention among multiple priorities, resulting in a lack of deep focus and a higher risk of errors. This can lead to reduced quality in the final deliverables and necessitate rework, further compounding the issue of delayed delivery.
• Hidden Bottlenecks and Inefficient Resource Allocation: Excessive WIP often obscures the true bottlenecks in the project workflow. Resources may be disproportionately allocated to tasks that are not critical to project completion, while genuine bottlenecks remain unaddressed. This inefficient resource allocation further exacerbates delays and increases project costs.
• Increased Risk and Reduced Predictability: A large volume of WIP represents a significant source of risk. Unfinished tasks are susceptible to changes in requirements, scope creep, and unforeseen delays. This increased uncertainty makes it difficult to accurately predict project completion dates and budgets, hindering effective project planning and decision-making.

Conclusion

In conclusion, effectively managing Work in Progress is a critical strategy for organizations seeking to optimize project delivery, enhance team performance, and improve overall efficiency. By implementing WIP limits and fostering a culture of focus and continuous improvement, organizations can unlock significant benefits, including reduced cycle times, improved quality, enhanced predictability, and increased team morale. Embracing WIP optimization is an investment in sustainable success, enabling organizations to thrive in today’s competitive project landscape