WIP (Work in Process)

Last updated 2026.02.13
WIP재공품재고관리inventory management린제조lean manufacturing생산최적화production optimization

Definition

WIP (Work In Process) refers to all intermediate-stage inventory that has been started in manufacturing but not yet completed as finished goods. This includes semi-finished products on production lines, parts being assembled, and products waiting for inspection.

Application in Manufacturing

Production Management Metrics

  • Inventory Valuation: Recorded as assets on balance sheets, a core element of cost management
  • Production Velocity Measurement: WIP levels help identify bottleneck areas and production lead times
  • Cash Flow Management: Excessive WIP indicates capital tied up in inventory

Lean Manufacturing Perspective

In lean thinking, excessive WIP is considered one of the seven wastes. WIP beyond optimal levels causes:

  • Increased wait time between processes
  • Delayed quality issue detection
  • Higher storage space and management costs

Manufacturing AI Applications

WIP Optimization

AI-based production scheduling analyzes real-time WIP data to:

  • Automatically calculate optimal input quantities per process
  • Predict bottlenecks in advance and reallocate resources
  • Dynamically adjust WIP levels based on demand changes

Real-time Monitoring

Using computer vision and IoT sensors:

  • Automatic WIP counting and tracking on production lines
  • Anomaly detection through process dwell time analysis
  • WIP simulation based on digital twins

Key Points

In automotive assembly lines, vehicle bodies waiting for final assembly after painting represent typical WIP. AI systems analyze this WIP data to optimize worker allocation for subsequent processes and reduce overall production cycle time.