Glossary

Work-In-Process (Work in Progress) Inventory (WIP) is the amount or value of all materials, components, and subassemblies representing partially completed production. Raw material and purchased components are usually classified as raw materials inventory; and similarly finished goods are counted separately, but WIP inventory is everything between these two. Value is calculated at plant cost, including material, direct labor, and overhead.

A workflow is a depiction of a sequence of operations. Examples include the work of a person, work of a mechanism, work of a group of persons, work of an organization of people and machines. By visualizing the network of connected operations in a business, management can guide change towards more efficiency and more focus on customer added value. For example, a workflow diagram can help optimize use of multi-function product teams and functional departments.