24 September 2016
Both terms are same in operational sense WIP stands work in process, partially finished goods in different stages and lying at Floor of the production for waiting of completion of final product Semi-finished goods: a product that has not been completely manufactured or partly finished in order to make Finished goods,
24 September 2016
Dear Brother Let us take an example of one product of tooth paste to understand the terms of WIP as well as Semi-finished goods. Brother really I don’t know the operation of the toothpaste product. I have taken this example under assumption in order to make you understand, In order to make the product of tooth paste, presume, it has to be undergone certain stage of operations and each stage has to be performed to get the final product. Stage -1: bulk preparation: Bulk will produce by using different ingredients and will make it ready for filling, it is one of the stage of operation. In this stage, Bulk will be called as semi-finished goods Stage -2: Filling the paste into Tube: once Bulk is prepared, it will be filled into tube, it is second operation and, filled tube will be called as semi-finished goods Stage- 3: capping the tube. Fitting the cap to the filled tube is one of the operation, in this stage almost all tooth paste is ready, and however still it will be called as semi-finished goods as these product is still waiting for next operation of packing and printing. Stage- 4: Packing and printing. It is final stage of the operation, once this operation is completed, the product will be ready for sale.
Now we can understand the terms of WIP, WIP stands for work in process, it means processing goods are lying at each and every stage which are waiting, in order to perform next stage of operation to complete the final product is called WIP.
Whereas the meaning of semi-finished goods is the goods which are partly processed, in other way meaning the completion of the each stage of the product would be called as Semi finished goods as explained above imagined process flow and it will be either used for next operation as part of final product or be part of another final product. Hope now you understood. Thanks /Rajannaidu
25 September 2016
means when semi finished goods means completion of particular stages to make finished goods but when we look from whole prospective it remains still work in progress
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