Work in process: Difference between revisions

Revision as of 03:56, 29 October 2019

Revision as of 17:38, 13 November 2020

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{{redirect|Work in progress}}

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'''Work in process''' ('''WIP'''),<ref name="yourdictionary">{{cite web|url=http://business.yourdictionary.com/work-in-process|title=Work-in-process dictionary definition &#124; work-in-process defined|publisher=business.yourdictionary.com|accessdate=2014-07-12}}</ref><ref name="ventureline">{{cite web|url=http://www.ventureline.com/accounting-glossary/w/work-in-process-definition/|title=WORK IN PROCESS DEFINITION|publisher=ventureline.com|accessdate=2014-07-12}}</ref><ref name="businessdictionary">{{cite web|url=http://www.businessdictionary.com/definition/work-in-process.html|title=What is work in process? definition and meaning|publisher=businessdictionary.com|accessdate=2014-07-12}}</ref><ref name="thefreedictionary">{{cite web|url=http://financial-dictionary.thefreedictionary.com/work+in+process|title=Work in Process financial definition of Work in Process|publisher=financial-dictionary.thefreedictionary.com|accessdate=2014-07-12}}</ref> '''work in progress''' ('''WIP'''),<ref name="collinsdictionary">{{cite web|url=http://www.collinsdictionary.com/dictionary/english/workinprogress|title=Collins English Dictionary &#124; Always Free Online|publisher=collinsdictionary.com|accessdate=2014-07-12}}</ref><ref name="investopedia">{{cite web|url=http://www.investopedia.com/terms/w/workinprogress.asp|title=Work In Progress (WIP) Definition &#124; Investopedia|publisher=investopedia.com|accessdate=2014-07-12}}</ref><ref name="ventureline2">{{cite web|last=|first=|date=|title=What Is Work-In-Progress (WIP)? {{!}} Finance Strategists|url=httphttps://www.venturelinefinancestrategists.com/accounting-glossary/wterms/work-in-progress-definition/|titleurl-status=WORK IN PROGRESS DEFINITIONlive|publisherarchive-url=|archive-date=ventureline.com|accessdate=20142020-0711-1211|website=Finance Strategists|publisher=financestrategists.com}}</ref> '''goods in process''',<ref name="yourdictionary"/> or '''in-process inventory''' are a company's partially finished goods waiting for completion and eventual sale or the value of these items.<ref name="tuition">{{cite web|url=http://www.tuition.com.hk/dictionary/w.htm|title=W - Wage to WTO (World Trade Organisation) - Dictionary|publisher=tuition.com.hk|accessdate=2014-07-12}}</ref> These items are either just being fabricated or waiting for further processing in a queue or a buffer storage. The term is used in production and [[supply chain management]].

Optimal production management aims to minimize work in process. Work in process requires storage space, represents bound capital not available for investment and carries an inherent risk of earlier expiration of shelf life of the products. A queue leading to a production step shows that the step is well buffered for shortage in supplies from preceding steps, but may also indicate insufficient capacity to process the output from these preceding steps.