28 June 2001
involved in running a competitive business. Frequently the cycle
times of these processes are rolled up into one or more measures to be
used as the primary drivers of competitiveness improvement.
White space: Activities which help a process reach Entitlement but
are left un-done. This may happen because: they do not fall within
anyone's functional responsibility, there is conflict between
functions on how to do them, or functions sub-optimize and neglect
them. Pictorially, these are activities that fall in the "white
spaces" between functional boxes on an organization chart; e.g.,
Product may not be shipped via the customers' preferred carriers
because neither Order Entry nor Shipping considers it their
responsibility to check with the customers.
Acronym for "Work-In-Process".
Work-In-Process (WIP): Inventory that has been issued to the
producing organization and not yet delivered to a finished goods
accounting area. WIP may include elements of material, labor and
overhead. WIP is analogous to "AIP" in an administrative business
The complement of Yield:
(1 - Yield).
Yield: The percent of products or services that are acceptably
completed in a process. (See: "Process yield," "First-pass yield.")