Method Study of Calculating and Controlling Work-In-Process
Xiao-yan SONG1ˈLang WU2
1
Department of Industrial Engineering, GAA (H.K) Ltd, Dong Guan, China
2
Department of Industrial Engineering, GAA (H.K) Ltd, Dong Guan, China
(xiao.ni@163.com)
Abstract - The focus of this paper is to study two
methods of calculating the work-in-process as applied to
manufacturing system. A teamwork chart is given to figure
out the composing and related quantity of work-in-process
when we focus on comparatively simple process or parts of a
complex process. But when we focus on more complex
production process, an I-O curve is introduced instead of
teamwork for more easily studying the quantity of work-in–
process. Moreover, the paper discusses the main factors
which affect the quantity of the work-in-process and
illustrates how to better control and monitor them.
Keywords - Cycle Time, Lead Time, Teamwork Chart,
I-O Curve, Work-In-Process
I. INTRODUCTION
WIP is the abbreviation of Work-in-process, which is
a main waste in manufacturing system, especially in high-
volume production. Blinder and Mac-cini (1991) show
that the variances of investment in work-in-process and
raw materials are both larger than that of finished goods
investment[1,2]. As far as we know, WIP means that
products in various stages of completion through the plant
including raw material that has been released for initial
processing and completely processed material awaiting
final inspection and acceptance as finished product; Many
accounting systems also include semi-finished stock and
components in this category [3]. For example, some WIP
are being produced; some are being transferred; some
WIP are waiting because machine is busy with other WIP;
some WIP are waiting because other parts necessary for
assembly are missing [4]; and some are being used for
buffer.
Obviously, it is necessary to keep a certain quantity of
WIP in order to make the production system smooth and
continuous. But how to understand “a certain quantity” or
how to define a reasonable quantity of WIP is very
important. Too little WIP may be interrupt the normal
manufacturing, but too many may result in a waste.
II. METHODS of CACULATING WIP
Most of time, people can easily separate the category
of WIP, but be always difficult to know how many WIP
exist in our manufacturing system and why we need so
many WIP. If people can’t know or understand “how
may”, they also couldn’t control WIP before defining a
reasonable quantity for the target. This paper will share
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978-1-61284-449-7/11/$26.00 ©2011 IEEE

two methods to help people to calculate how many WIP
are flowed in our manufacturing system.
A. Teamwork Chart
There is the production flow which involves in four
stations and each station has different cycle time (see
Table I). All of products flow through four stations for
being produced or transferred (station A and station C are
used to transfer products), and then they are put out. In
addition, all of products will be assembled in a certain
cycle time (the time required to perform one complete
sequence of job activities [3]) on the special flow-fixture,
and this special fixture will be cycled after the product
passes the full flow. Now we need to define a reasonable
quantity of flow-fixture to keep this production flow
smooth and continuous.
TABLE I
FLOW CHART
Flow
Flow Chart
Station A B C D
Cycle Time
A B C D
(Second / 1 5 3 4
Piece)
From above description, we can know the quantity of
flowed fixture is equal to the quantity of WIP. So, if we
want to know how many fixtures are being flowed on line,
we must calculate how many WIP are on line, that is, how
many WIP are in the four stations simultaneity. We can
use a teamwork chart to get it (see Fig. 1).
The teamwork chart is composed by three parts. One
part can be called the chart title such as teamwork chart
and other information including measure unit, name of the
process or the station in top of the chart. Other part can be
called summary at the bottom of the chart. And the other
part can be divided into three sides. The left side which
includes many of equaled rows shows that the production
process is observed and recorded in seconds. The middle
side which involves in four columns shows the exact time
relationship among working cycle of the four stations
(WIP in each station is marked in different colors.). And
the right side shows the quantity of WIP in every second.
According to above chart, the WIP quantity is figured
out. It is also easy to understand the WIP quantity and
composing by the intuitionistic teamwork chart.
 TEAMWO RK CHART
UNIT PRO CESS AND STATIO N VALUE TABLE II
A B C D DATA of THE SAMPLE FOR EXPLAINNING I-O CURVE
SECO ND WIP
1 5 3 4
1 1 5 3
Process Batch: Normal Standard
Allowance
1 4 3 Item Station Time Tray Time Time
1 3 3
1 5 2 a b c=a/b d e=cu(1+d)
1 2 1 A 40.6 2 20.3 5.0% 21.3
1 1 3
4 2 B 19.5 1 19.5 5.0% 20.5
1 3
1 3 3 3 C 27.3 1 27.3 3.0% 28.1
1 5 2
1 2 4 D 19.4 1 19.4 3.0% 19.9
1 1 3
1
4
3 5 E 10.7 1 10.7 5.0% 11.2
1 3 3 6 F 35.0 2 17.5 3.0% 18.0
1 5 2
1 2 7 G 15.3 1 15.3 3.0% 15.7
1 1 3 8 H 18.0 1 18.0 3.0% 18.5
4
1 3
1 3 3 9 I 18.4 1 18.4 5.0% 19.3
1 5 2
1 2 10 J 19.0 1 19.0 7.0% 20.3
1 1 3
4
1 3
1 3 3 From above chart, we can get that station A is an entry
1 5 2
1 2 for input and station J is an exit for output. The bottle-
1 1 3
1
4
3 neck of the process is station c and its standard time is
1 3 3 28.1 seconds. The lead time (the total time required to
1 5 2
1 2 manufacture an item. included are order, preparation,
1 1 3 queue, set-up, run, move time, inspection, and put away
4
1 3
1 3 3 times [5]) of the process, summation of station’s cycle
1 5
1 times, is 223.1 seconds.
1 The function of input can be calculated by the
1 … … … … …
SUMMARY MAX VALUE 3 following equation:

Fig. 1. Teamwork chart Y1 = (1 /28.1)u X + 2 (2)

B. I-O Curve Here, Y1 means the quantity of WIP passing station

“A”; X means the observation time.
However teamwork chart is easy to be understood, it The function of output can be calculated by the
is difficult to be figured out when we deal with more following equation:
complex process. Here, an “I-O curve” chart not only can
figure out the WIP quantity but also watch quantity Y2 =1/ 28.1uX – 195/28.1 (3)
variety of WIP from moment to moment.
What is I-O chart? Any process can be separated into Here, Y1 means the quantity of WIP passing station
three parts including “input”, “in process” and “output” “J” (195 = lead time – cycle time =223.1-28.1=195).
(see Fig.2). So, the quantity of WIP can be calculated by referring
to “(1)”:

Input In Process Output WIP quantity = Input – Output =9 Tray (see Fig. 3)

Fig. 2. I-O explanation

Y (Tray)

If people can get the function or rule of “input” and

Input Curve
“output”, the quantity of WIP is calculated by the Y1=1/28.1 (X)+ 2
following equation: Output Curve

WIP quantity = Input - Output (1) Y2=1/28.1 (X)- 195/28.1

8.9
9 Tray

There is an example to explain “I-O” chart in detail. 1

There is a full assembly process which involves in ten
stations, each station will separately finish different task
195 X(Seconds)
with different cycle time and product batch. The process
time of each station include set-up and move time (see
Table II). Fig. 3. I-O chart


 III. WIP CONTROL
Input Curve
In order to better control and monitor WIP, we must
know which factors are related to the WIP quantity and
how they affect WIP quantity and variety. And at the
Output Curve
same, we need to define a reasonable WIP as the target.
There is an example to simulate and explain how to
control and monitor WIP by using I-O chart and VSM WIP Quantity

chart.
The following is a full flow chart (see Fig.4) in which
B and C process is for checking, other processes are used
to process product. Moreover, the simulation assumption Fig.6. I-O Curve by simulation
is given that 40 percent of products need pass C process
for checking, 100 percent of products need pass B process As shown in above chart, the equation of calculating
for checking and all processes ignore line utilization and WIP can be figured out. In order to analyze which factors
yield. are related to the WIP, we can use a simple equation if the
running time is long enough.
40%
C

Pas
WIP = (Total running time / Cycle time of material input)

 A  B

 D  E  D  E s Inventory
– ((Total running time – Lead time) / Takt time) (4)

Fig.4. Flow chart Form above formula, we can see that there are at least
three factors can affect the quantity of WIP, cycle time of
The following is Process and Line Allocation (see material input, lead time (most of times, huge inventory
Table III): of final product because of the product was not pulled by
the market or lost it’s value because of too long lead time
TABLE III
[6]) and takt time (takt time, or R value, is determined on
SIMULATION DATA
the basis of the periodic production requirements and the
Flow A B C D E amount of operating time during the period [7]). In order
Standard time to control WIP, the cycle time of material input should
5.8 4.6 52 0.10/0.16 5.1
(Seconds/Piece) near the takt time. Because the takt time is near cycle time
Line Quantity
63 50 252 1/1 56
(bottle-neck) of the full process, it’s better to take the
( Sets) cycle time of material input, takt time and cycle time of
Input Capacity the full process as the main compared and monitored
(KPieces/ 821 821 366 1210 830
21Hours)
indexes for controlling the WIP (see Fig.7).

Based on above simulation assumption and related Quantity

data, we can design a simulation model (see Fig.5).
Input (manufacturing)
Output
A B 356 Sec C D E C
68 Sec 138 Sec 168 Sec 156Sec
63Cell 50Cell 2cell 252 Cell 55Cell 2cell
95 operators/shift
10080 ea
50 operators/shift
8000 ea
4 operator/shift 3360ea 126 Operator/shift 5040ea 110 Operators
8800ea
4 operator/shift
shipment (customer)
C/T = 5.8 sec/ea C/T = 4.6 sec/ea C/T = 0.10Sec/ea C/T = 52 Sec/ ea C/T = 5.1 Sec/ ea C/T = 0.10 Sec/ 12 ea
P/T= 241 sec/ea P/T= 70 Sec/ea P/T= 1950sec/12ea P/T= 520sec/ea P/T= 131 sec/ea P/T= 1950 Sec/ea
UTI=85% UTI=95% UTI=95% UTI=95% UTI=95% UTI=95%
Yield=99.8% Yield=98% Yield=99% Yield=99% Yield=99% Yield=99%
2shift 2shift 2shift 2shift 2shift 2shift
64260 Sec/Avail.Day 71820 Sec/Avail.Day 71820 Sec/Avail.Day 71820 Sec/Avail.Day 71820 Sec/Avail.Day 71820 Sec/Avail.Day cycle time of Input
938 1046 138 Sec 688 Sec 921 Sec cycle time of bottle-neck
S
     
Takt time

Time

Fig.7 monitored index (sample)

In addition, another key factor is lead time. By using

VSM chart, we can find out and cancel no value-added
Fig.5 VSM and Simulation Model actions such as transferring, idle for waiting, and connect
the break points of logistic in order to reduce lead time for
Then, I-O curve is got by using simulation model (see better controlling the WIP.
Fig.6).


 IV. CONCLUSION

In the paper, two comparatively practical methods for

WIP control and calculation have been addressed as
applied to manufacturing system. In order to reduce the
economic losses resulted from work-in -process, we need
to define a reasonable quantity of WIP as a target, and
construct an index system for our manufacturing system
to monitor and control variety of work-in-process from
moment moment.

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