Work in progress or process refers to one form of inventory. WIP as it is often referred to as, is the work that is in process or production at a stage that falls between raw material and finished product.
To put it another way WIP is when an organization has possession of raw materials and they have moved those raw materials into production to begin the transformative process. WIP can be located all throughout an organization from released raw materials up to the point just before inventory becomes a finished product. Work in Progress May also include goods that are not complete. Such as, partially finished goods, semi finished goods and items that have begun processing but not reached a finished state. An example of partially finished goods is any product that is waiting, stored or in queue in a partially complete form. These semi finished goods will not be considered complete until they complete their transformative process and have met the required specifications of a completed product. Continuous Improvement strategies like lean and six sigma help to reduce inventory and work in progress.
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