Do you set limits to your WIP & why is it important?

Do you set limits to your WIP & why is it important?

WIP (work-in-progress) is a term which refers to the partially finished goods that is still in the production flow and are yet to hit the state of being customer ready. WIP holds labour costs, raw material costs and overhead manufacturing costs that are invested in the production process at different stages. It implies substantial burdon on the company finance when overproduced and brings about a customer churn when under produced and massive loss when a semi finished or finished goods is misplaced. Setting limits to such WIP is much important to streamline your manufacturing industry’s operative efforts and control opex ( operational expenses). We would be outlining the WIP limits below and why is it important for manufacturers to understand their dynamic change in the profitability.

What & why do you need WIP Limit?

The key idea behind WIP limits is to stop starting new productions and start finishing the existing one. If there are more goods unfinished that are already in process, manufacturers will try to juggle at once and it will be tough for them to take it to the finish line. Hence, WIP limits enable manufacturers to optimize their production workflows for better management & control on WIP. It is about finishing the job already in progress before introducing more job. In Layman’s terms ” Optimal WIP is a way to go”. Here are the three most predominant limits which every manufacturer should concentrate on to sustain and remain unshaken in the disruptive manufacturing industry.

  • Count Based Limit

  • Cost Based Limit

  • No of Days of work Based Limit

Count Based Limit

Do you know how can over-presence of WIP count affect your manufacturing industry?

Many manufacturing industries are still unaware that too much unfinished & finished goods will have a direct impact on their operational expenses. Possessing unfinished works & unsaleable products can be detrimental to any company. The same logic applies to the manufacturing industry. Having a lot of WIP inventory denotes that manufacturing industry has obstacles in meeting demands and streamlining the supply chains at large. This sort of excess WIP often has a serious impact in repetitive jobs where raw materials are converted all the way into finished goods and stored before customer orders are received. To avoid excess WIP inventory, they can control WIP count by limiting the new production and can pull in only if necessary.

Let me explain with an example, consider the textile industry. It will be mostly a MAKE TO STOCK approach. When the products are overproduced and kept in stock for long time without considering market demands, will result in overage finally leading to inventory loss. Maintaining a minimum level of WIP at each sewing workstation is necessary here. This can be done by limiting or setting the WIP count at each process level

And most importantly, they should set a target / limit for the productions by analysing the demand forecasts, so that they will plan only for the required count and the unfinished items for products in a production process can be maintained easily. During the festive season, there will be a lot of demands for textiles and in such case, they can increase their WIP count based on demand. This helps them keep their WIP balanced by feeding the production line / work stations based on the market demands.

Days based limit

When faced with too much work, and too few machines to do it, manufacturers will assign multiple tasks in the hope of increasing throughput. Unfortunately, the result is that machines will take longer days to get that done and it burns out in the process. This is because the machine plan is not properly optimized and they try hard to multi-task & fail at it often. This lengthens the number of days they work on a task. When the machinery runs for a too long time, there is a high possibility of machine failure resulting in unplanned downtime. If your machines sits idle, it will take too long days to repair & how is it possible to complete your order on time? This is were you need a complete machinery plan with which you can allot tasks based on the machine’s capacity and limit the days of its running.

While there is no hard rule in setting this WIP limit, the basic idea is that each machine should be working based on its capacity. So that it possibly avoids the complete shutdown of your machinery. This allows manufacturers to stabilize work and increase productivity.

Cost Based Limit

The optimal Opex is important for the smooth running of the business. In spite of all tracking done with number of parts and day work, $$$ is something that needs to be monitored at the business level. So a limit of what can be the WIP Cost that a business can handle ……

You can set a maximum limit to the operating cost / expense for a particular time. One way to improve profitability is to maintain the stable opex. The expenses spent on anything in the production line that is materials / machinery (during WIP) should fall under the cost you have set. Your WIP should not exceed the opex sustainability.

Hope this article demonstrates what is WIP limit and why it is important for manufacturing industry to manage their opex and to improve their productivity.

The live demo set up of WIP Manager is available. Take a look at it.

Customizable Advanced Reports for your WIP Manager 1.0

Customizable Advanced Reports for your WIP Manager 1.0

It has been just less than a month, since we released our initial version of fully digitized WIP Manager. And now, we are back with the super cool update on it. Can you guess?? YES!! WIP Manager is now ungraded to generate work-in-progress reports (WIP reports). Also, we are rolling out new premium version of WIP manager comprising of two editions. Let us see in detail about the new exciting features.

Visually track your Work-in-progress

A production manager’s daily work-in-progress schedule will always be overwhelming. It is not always easy to keep tabs on all the production targets, a manufacturing team is working on, comparing WIP at each production process and each parts.

So what if there is a one-stop solution for production managers to get WIP details in one screen? WIP reports will be a right one which enables users to visually compare & get WIP count at each process stages, compare scrap & rejection count, WIP count at production stages. Reports can be generated on a daily, weekly, monthly & yearly basis based on your preference.

You can find reports for

  • WIP change trend

  • Rejection trend

  • Production trend

WIP Change Trend

As a production manager, user should stay updated about the product movements. The changes each process undergone in terms of inward & outward is necessary to plan for the upcoming target schedules. WIP change trend report showcases what is the remaining material count available in each process stages in a specific time frame.

This helps production managers to rightly execute their production schedules by exactly knowing the trend in Work-in-progress change.

Rejection Trend

The materials involved in the manufacturing process is either sent to the Rejection or Scrap when they fail to meet the quality standards. The materials in the rejection can be reworked for rectification of defects whereas the materials sent to scrap can not be reworked further and it is completely discarded. The rejection trend chart compares the scrap & rejection count for a specific time period. Tracking & handling the rejections can be a hassle for production managers unless they have a rejection chart which helps them exactly know how many materials are reworked and how many materials are thrown off as scrap also to make a plan to fill the gap & achieve their production target.

Production Trend

Knowing the exact count of materials present at each process level and comparing it with each process is essential to understand the real performance of a process, particularly with regard to the established target. The production trend report visually displays the outward count of materials at each process level for a specific time period. It differs with WIP change trend report in comparing the process level with the inward count rather than displaying the remaining material count (inward – outward).

Launching Premium Plans

Since launching WIP manager initial version, we’ve have been thrilled with how manufacturing industries are interested to digitally track their WIP. Hence as a part of our revised features and enhancements, today we are excited to announce the PREMIUM version of WIP Manager.

The PREMIUM version includes two affordable & simple perpetual pricing plans, SME Edition & Enterprise Edition.

SME Edition – This plan includes all available features with restriction to the number of users & processes. It comprise of 5 processes & 15 users. SME Edition is ideal for all small & medium sized businesses.

Enterprise Edition – This plan includes all available features with no restriction to the users & processors. That is, it comprise of unlimited processors & users. The enterprise edition is ideal for large business enterprises.

Need to know more on WIP? schedule a demo with us.

Kindly reach support if you have any queries.

Announcing fully digitized WIP Manager for WIP Tracking

Announcing fully digitized WIP Manager for WIP Tracking

A decade ago, I was working in a garment factory where every data is manually entered using paper sheets. There is no proper track of data especially the materials in, out and WIP and there is a high risk and possibility of manipulating the original data. Even today I could witness many manufacturing industries are still using XL sheets to record data. Keeping no track of yesterday and today data, how it is possible to improve productivity?. Keep a full stop to it and digitize your WIP so that you can keep track of all events from start to end. As a part of our Industry 4.0 solution, we are now introducing a WIP manager, fully digitized 100% foolproof WIP tool where in you can easily manage and keep track of your ‘work in progress’. You can get a clear picture of what is happening on your shop floor on a daily basis.

Why WIP Manager? / Manage end to end WIP

WIP manager offers everything you need to manage, enter & take count on the WIP flow and WIP units. The inventories which still requires work, assembly, inspection, or processing before they’re completed can be tracked to know the right numbers and set strict limits.

Here is how you can be benefited with WIP Manager. 

  • Manage WIP at each process

  • Minimal Data Entry

  • Predefine shopfloor information

  • Analyse the rejections

Manage WIP at each process (Track product Movement)

For each production process, the target must be set for the amount of WIP required. It must be agreeable to undergo smooth production work flow providing enough time to resolve production issues before WIP shortages occur. Also, the presence of unnecessary work in progress results in unreliable supply chain, requirement of excessive manual work finally resulting in unnecessary delay and increased WIP in inventory. To avoid all these hurdles and pursue efficient WIP flow, WIP manager will allow production managers to only pull inventory / materials when needed without the need for much WIP. WIP manager will help understand the process at each level to exactly know which process needs material to move forward. It facilitates quick & easy configuration WIP levels by process and part and enable tracking of material movement at each process steps.

Minimal Data Entry

The idea of streamlining data is what every manufacturing industry strives to fulfil in efforts to minimize errors and maximize productivity. Regrettably, most industries uses a combination of paper work, spreadsheets and multiple systems which takes much time to address the needs of the shop floor. WIP manager completely eliminates such paper works and allows only few fields to be manually entered by production operators. Operators can easily enter & take a count on WIP materials at each process.

Predefine Shop Floor Information

Every manufacturing industry has a unique production process and levels, the raw materials, parts and other materials which differ with each other. Also, the downtime occurs cannot said to be same each time and it varies with process or even with industry. So WIP manager allow operators to predefine the raw materials, parts to be produced and their production processes. It also allows to predefine the expected downtime events and the quality defects to efficiently deal with the downtime & bad quantity issues.

Analyze the rejections

No shop floor is perfect. It is usual that some goods produced can be defective or doesn’t meet quality standard. It is all about how the manufacturing industry handles it. You can often rework defective parts to make them usable. WIP manager provides options for handling or dealing with such defects.

Rejection – Rejections refers to defective which do not meet with dimensional or quality standards but can be reworked for rectification of defects.

Scrap – Scrap is a discarded parts / materials which has no values. And such materials can not be reworked further.

Operators can easily deal with the material losses by moving the defective items either to the rejection or to the scrap.

Kindly reach support if you have any queries.