Work in Process (WIP) is a Lean Metric describing the number of items within the process boundaries.

To determine WIP

  • Count all
    • product between process steps
    • products being transformed at the moment
    • half-finished goods which are stored in the warehouse between processes (intermediate inventories)
  • Do not count: raw material, finished goods

Work with WIP to

  • Improve your Order Lead Times, Service Level and Cash Flow
  • Eliminate waste, e.g. bad quality, motion, waiting, transportation
  • Improve the efficiency of direct and indirect processes

Calculation:

WIP = Throughput Time (TPT) × Cycle Time (CT) at bottleneck

Learn more about this topic in our Lean Metrics Online Course.

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