Industrial companies face the challenge of having to organise increasingly complex production and logistics processes. Variety, smaller batch sizes, volatile demand and increasing time pressure increase the demands on planning and control. In this environment, the transparency of Work in progress (WIP) Material on one of the crucial levers for efficiency, punctuality, and cost control.
While raw materials and finished goods are usually clearly recorded in ERP systems, work in progress material often lacks sufficient transparency in many companies. Yet, it is precisely WIP material that significantly ties up resources, moves permanently through production, and directly influences lead times, inventory levels, and capacity utilisation.
In short: Those who do not understand or control the handling of work-in-process materials lose control over their production processes.
Was work in progress (WIP) bedeutet
Work in progress refers to all materials, components or assemblies that are already in the production process but are not yet completed. This includes work-in-progress parts, semi-finished products and materials between individual processing steps.
From a business perspective, Work in progress Material as part of current assets. From an operational perspective, it is the „breathing buffer“ between workplaces, machines, and production stages.
Distinction between raw material and finished goods
- Raw materialNot yet processed, clearly identifiable
- Work in Progress MaterialsAlready value-added processed, condition is continuously changing
- Finished materialProduction process complete, uniquely identifiable again
A central problem when Work in progress Work in Process Material: Often, the material does not have its own item or material number during processing, even though material value, labour time, and overhead are already accounted for.
Work in Process in a production and logistics context
In practice, it goes through Work in progress Material numerous stations
- Stock or transfer area provision
- Transport to workplaces
- Processing on machines or assemblies
- Intermediate storage in buffers or quality zones
- Forward transport to the next process step
Especially in intralogistics Work in progress Material is one of the biggest challenges. Search times, improvised interim storage, special trips, and a lack of overview often arise because the current status of WIP is unclear.
A digital production control system, which transparently maps all process steps, creates the necessary overview and real-time transparency here.
The WIP process: How material flows through production
A typical WIP Process starts with the provision of materials for production. In many companies, raw material is already consumed by the production order at this point. From this moment, the material no longer exists systemically as raw material – the Work in progress Process begins.
Material provision and handover
The picked materials are made available in handover areas between the warehouse and production. Logistical control here is usually still ERP-supported.
Transport, processing and interim storage
Transport to the workstations is often carried out just in time. After each processing step, the WIP is provided in intermediate storage or buffers before it is requested by the next workstation. This process is repeated several times depending on the work schedule.
Completion and transition to finished goods
After the final work step – often a quality check – the completion message is booked. Only now can the material be clearly identified as finished goods and transferred to the finished goods warehouse.
Figure 1: The path of WIP material through production
How the optimisation of work in process materials affects lead times and inventory.
A large amount of work-in-progress material almost always leads to longer lead times, increasing circulating stocks and higher capital commitment. The more material in the process at the same time, the longer individual orders have to wait. Targeted control of WIP Process therefore has a direct positive impact on plannability and delivery reliability.
Why the Control of WIP Material is Crucial
Without active control, in dealing with Work in progress Material significant risks:
- Loss of capacity due to missing materials at the workplace
- Inefficient transport and special journeys
- High search effort for shift and shift handovers
- Quality issues due to long storage times or incorrect material assignment
The control of Work in progress Material is therefore a central component of modern production control.
Methods for Controlling Work in Process Material
Work in Process (WIP) material is barely visible in the ERP system, which causes search times, delays, and unclear inventory levels. Digital tools such as MES systems or shop floor control stations fill this gap between production, logistics, and IT, enabling better planning. Real-time information for material flow, process states and production progress at any time. This allows WIP material to be assigned and tracked.
Digital Systems as Key
Firstly, digital systems such as a MES System enable the real-time mapping, analysis and targeted control of work-in-progress material. These digital tools allow every piece of material to be efficiently monitored via a digital ID. The completion status, material condition and process steps are displayed online and in real-time – even on mobile devices via scanner or handheld unit. This makes material flow planning flexible, eliminates search times and allows bottlenecks to be identified early on.
Practical example: Visibility of WIP (Work in Process) material with solutions from IGH Infotec AG
A practical approach to managing WIP material is the digital mapping of all internal material movements via a central control panel. IGH Infotec AG uses the X-ControlCentre (X CC) one that serves as a control and transparency platform for WIP material.
Each processed material is placed in a virtual container with a unique container ID managed. This allows material quantities to be clearly assigned, tracked, and transported between individual production steps. Transport orders for Work in progress Materials are created centrally in the system, prioritised, and distributed to the mobile devices of logistics employees. Employees can process and confirm jobs directly.
This structure creates a fully documented WIP Process across all workstations, machines, buffer areas, quality zones and intermediate storage areas. The added value lies in complete transparency across Location, status and quantity work-in-progress container. Search times are eliminated, bottlenecks become visible earlier, and the material supply to production becomes significantly more reliable.
In addition, the system supports optimised transport control, for example through Multi-order journeys, priority logic or automatic destination suggestions. This allows internal transport to be bundled more efficiently and the performance of intralogistics to be sustainably increased.
More transparency about WIP material within your own operation? Find out more about the X-ControlCenter experienced and benefit from full WIP visibility.
Conclusion: Proactively control Work in Process material rather than just managing it
Material in Progress is one of the biggest and often underestimated levers for efficiency in production. Companies that their WIP Process make transparent and actively control, reduce lead times, lower inventory and sustainably increase their on-time delivery. Digital solutions create the basis, Work in Progress Materials to develop from an operational risk factor into a strategic competitive advantage.
