Work in Progress (WIP)

In manufacturing, work in progress (WIP) refers to the quantity of unfinished products that are still in the production process. WIP includes all materials, labor and costs that have already been incorporated into production but are not yet considered finished products.

Monitoring and optimizing WIP is crucial for increasing efficiency and reducing costs in production processes, as excessive WIP inventories can lead to unnecessary storage costs and a slowdown in the production flow.