Work in progress(WIP)

Work in progress (WIP) is a form of inventory which is usually found within steps or sub-processes of a production process, sometimes in a one bin or two bin system. More detail on inventory management and control systems can be found on the inventory management pages.

The presence of unnecessary work in progress is usually an indicator of an unreliable supply chain or process/production bottlenecks. Work in progress is considered a type of waste just like inventory as it ties up cash for a certain period of time which could be generating higher returns elsewhere in the organization.

Some operations use work in progress between production steps in order to meetpeak demand or volatile demand patterns. If this is not the case in your organization, then it could indicate that there is a bottleneck somewhere downstream in your productive process causing the build up of WIP, and may warrant further analysis. An efficient productive system should only pull materials through when needed, without the need for much WIP.


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