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Work in Process
Work in Process is so often one of the most understated key financial numbers of many manufacturers. WIP typically becomes a victim of poor costing or BoM, and is relegated a secondary role on the financials. It falls into the gut feel to good guess area, which is never good for effectively managing a manufacturing business.
Work in Process actually helps a good CFO identify problems quickly, giving them the ability to communicate and maintain a pulse on the organization. It is important to understand that accurate WIP numbers are dependent upon all manufacturing set ups, which allows the CFO to identify costing concerns, set up problems and stalled production.