Work-in-process (WIP) inventory days of supply

This measure determines work-in-process (WIP) inventory days of supply, which is calculated as annual average WIP inventory value (i.e. the value of all materials, components, and subassemblies representing partially completed production) divided by the value of WIP transfers per day, assuming 365 days in a year. It is part of a set of Process Efficiency measures that help companies optimize the performance of their "produce product" process by minimizing waste and refining resource consumption.

Benchmark Data

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Measure Category:
Process Efficiency
Measure ID:
104221
Total Sample Size:
2,434 All Companies
Performers:
25th
- Median
- 75th
-
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are days.

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365 / WIP inventory turn rate in turns

Key Terms

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Process efficiency

Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.

Measure Scope

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Cross Industry (7.3.1)

  • 4.3.2.1 - Manage raw material inventory (10310)
  • 4.3.2.2 - Execute detailed line schedule (10311)
  • 4.3.2.3 - Report maintenance issues (10319)
  • 4.3.2.4 - Rerun defective items (10313)
  • 4.3.2.5 - Monitor and optimize production process (19566)
    • 4.3.2.5.1 - Automate and control plant (19567)
    • 4.3.2.5.2 - Perform advanced process control (19568)
    • 4.3.2.5.3 - Perform real-time optimization (19569)
    • 4.3.2.5.4 - Manage plant alarms and alerts (19570)
  • 4.3.2.6 - Assess production performance (10314)