In the manufacturing industry, efficient WIP (Work-in-progress) management is essential for maintaining productivity, reducing waste, and optimizing operational expenses. Without proper WIP controls, production lines become cluttered with unfinished goods, machines run inefficiently, and operating costs spiral out of control.
There are 3 types of WIP limits namely, Count-based, Cost-based, and Days-based limits. Implementing these limitations help manufacturers to prevent production bottlenecks by controlling the flow of unfinished goods, enhance machine performance by avoiding overuse and unplanned downtime, optimize operational expenses by capping WIP cost at sustainable level, and increase profitability through better resource management and reduced waste.
3 core WIP limits and how they
transform manufacturing efficiency
Count-based limits : Control the flow of unfinished goods
One of the biggest challenges in manufacturing is managing the volume of unfinished products moving through the production line. Without proper limits, manufacturers often face overproduction, leading to cluttered warehouses, excess inventory, and higher holding costs.
Count-based WIP limits help maintain optimal production flow by capping the number of unfinished goods at each stage. This ensures that the team focus on completing existing tasks before starting new ones, preventing workflow congestion.
How it works?
- Set WIP Thresholds - Define the maximum number of unfinished products allowed at each stage - whether it's assembly, testing, or packaging.
- Balance production capacity - Prevent overloading production lines with new tasks until existing ones are completed.
- Optimize resource allocation - Keep your workforce and machines focused on finishing current jobs, reducing multitasking inefficiencies.
- Dynamic adjustments - Modify WIP limits in real-time based on demand forecasts and production capacity, ensuring flexibility during fluctuations.
Benefits of Cound-based limits
- Eliminate over production - Prevent excessive manufacturing by setting precise limits, helping you avoid unnecessary inventory buildup and reducing long-term storage costs.
- Prevent bottlenecks - By capping the amount of work in progress, you maintain a steady production flow, reducing idle time and avoiding blockages in your process.
- Enhance productivity - Keep teams focused on completing existing tasks before starting new ones, resulting in smoother operations and improved task completion rates.
- Reduce waste - Avoid accumulating partially finished goods and materials, leading to leaner operations, better resource utilization, and higher overall efficiency.
