What is the term for materials or parts that are currently being processed into final products?

The term for materials or parts that are currently being processed into final products is known as Work In Progress (WIP). WIP refers to the items that are in various stages of manufacturing but are not yet completed. This could include items that are undergoing assembly, machining, or other processing tasks.

WIP is a crucial concept in manufacturing as it helps to manage and track the flow of production. It gives manufacturers insights into production efficiency and helps in inventory management by identifying bottlenecks and areas for improvement. By understanding WIP, companies can optimize their processes to reduce lead times, improve production rates, and ultimately enhance overall productivity.

In contrast, raw materials refer to the basic inputs that are transformed into finished goods, whereas components are usually finished items that will be assembled into a larger product. Inventory encompasses all types of goods that a company holds, including raw materials, WIP, and finished products. Thus, WIP specifically pinpoint the items that are actively being worked on, making it the most accurate term in this context.