In production control, what does "work in progress" (WIP) refer to?

"Work in progress" (WIP) refers specifically to items that are currently being produced but are not yet completed. This term encompasses all materials and components that share the production process but have not yet transitioned into finished goods. WIP is a crucial concept in production control because it helps manufacturers track the efficiency and capacity of production processes, manage inventory levels, and streamline operations.

In contrast, materials awaiting inspection represent raw materials that have not yet entered the production stage, while finished goods ready for sale are items that have completed the entire production process and are awaiting distribution. Defective items in need of repair, although they may have been part of the production process, do not contribute to WIP as they are not actively being produced but rather require rectification before they can be classified as completed products. Thus, WIP is specifically tied to the processes and items in the active phase of production.