Work-in-process (WIP) inventory turns

This asset management measure is typically calculated as the cost of goods sold (COGS) for the year divided by the average on-hand work-in-process material value (i.e. the value of all materials, components, and subassemblies representing partially completed production) at plant cost for the most recently completed fiscal year. Plant cost includes material, labor, and plant overhead. This measure 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:
104225
Total Sample Size:
2,425 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
No
Sample image showing interactive filters for more detailed measure peer group data and an interactive graph.

Compute this Measure

Units for this measure are turns.

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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)