What does "work in the process" mean?

process work, also known as WIP, is a term usually used in the control chain management. It refers to a product that has been made of raw material but is not ready for sale for many reasons. Examples of work in the process could be a chair that was created but was not completed, or a pile of dolls in a storage that was not properly packed for sale. This term differs slightly from another term, ongoing work concerning any work that has been started and has not been completed. When something is referred to as unfinished work, it is determined in this general sense, outside the area of ​​the supply chain management.

The reasons that the product may be in the process include unfinished production, delayed release data, or problems in the supplier chain. For example, the product may be in the process because a company that deals with a dealer. The motorcycle that has been partially assembled but waiting to order is also a process, as well as a brand new car that has not been painted yetEN. Most of the time the company should try to avoid working in the process.

work in the process can become a company of storage and manipulation companies, so it is best to have the least product in this state. Ensuring that WIP is minimal is part of the supply chain management, which focuses on aspects of communication and transactions among many companies involved in creating a finished product. Coordination supplies between raw materials manufacturer and delivery service are part of the supply chain management, as well as distributors who sell the finished product to retailers.

Proper supply chain management helps companies avoid wip surplus. The supply chain management may seem only for large companies, but also the smallest companies process the supply chain management at a certain level. As an example, a balloon twister that PRIt wipes out the operation of one woman, practices the management of the supplier chain when he examines and decides on the seller for his balloons. In this case, the process of work may be a balloon that has inflated for use, but has not yet twisted in shape because it noticed that its previous attempts resulted in broken balloons. If he calls his dealer to complain about the low quality product, he performs quality control, another important part of the supply chain management.