Work in Process

Stage Evaluation

Items move through casting and welding stations before they reach the final assembly and testing zone. While they are stationary in these middle steps, they count as work in process rather than raw stock which forces the accounting team to add labor and energy costs to the original invoice price of the metal.

Inventory Cycle

Long lead times result in higher levels of unfinished units sitting around the facility floor waiting for the next specialized technician. Reducing the volume of work in process speeds up the cycle of converting cash spent on supplies back into cash earned from sales.

Value Accuracy

Field exams focus on whether items listed on the ledger are truly being manufactured or if they are simply damaged parts that have stopped moving through the line. Managing work in process requires constant updates to ensure that the balance sheet does not overstate the market value of items that still lack their final finishing layer. Value grows as items move.