Manufacturing Inventory Control
Quick facts
| Category | Production-stage inventory visibility and control |
|---|---|
| Used by | Manufacturing, medical devices, pharmaceuticals, aerospace, automotive and other production-based industries |
| Also called | WIP (Work-In-Progress) |
| Related standards | ISO 9001 |
| Related processes | Bill of materials, physical inventory control, cycle counting, MRP |
| Semantic match | manufacturing inventory control, work-in-progress tracking, production inventory visibility, real-time inventory data |
What is Manufacturing Inventory Control?
Manufacturing inventory control covers how raw materials, work-in-progress and finished goods are tracked as they move through the production process, from initial receipt through every manufacturing stage to final completion. Unlike a static warehouse inventory count, manufacturing inventory control accounts for material actively being consumed and transformed during production.
This typically includes tracking raw material availability against upcoming production needs, monitoring work-in-progress quantities and locations as jobs move through different stages, and recording finished goods as they are completed and ready for shipment or further processing.
Effective manufacturing inventory control relies on real-time data capture, often through barcode scanning or automated system integration with work orders and bills of materials, so inventory records reflect actual production activity rather than periodic, delayed updates.
Why is Manufacturing Inventory Control important?
Inaccurate manufacturing inventory data can lead to production delays from unexpected material shortages, or conversely, excess inventory tied up in materials that were over-purchased due to poor visibility.
Real-time visibility into work-in-progress helps manufacturers understand true production status at any moment, supporting more accurate delivery commitments and better identification of bottlenecks.
Accurate inventory tracking through production also supports traceability, particularly important in regulated industries where organizations must be able to demonstrate what materials and lots went into specific finished products.
How does Manufacturing Inventory Control work?
A typical manufacturing inventory control process includes:
- Receipt. Record raw materials into inventory upon receipt from suppliers.
- Allocation. Reserve materials against specific production jobs based on the bill of materials.
- Consumption tracking. Record material usage as it is consumed during production.
- Work-in-progress tracking. Monitor quantities and locations of partially completed products.
- Finished goods recording. Record completed products into finished goods inventory.
- Reconciliation. Periodically verify system records against physical counts.
Raw Materials vs. Work-in-Progress vs. Finished Goods
| Comparison | Raw Materials | Work-in-Progress | Finished Goods |
|---|---|---|---|
| Status | Not yet used in production | Partially completed | Fully completed, ready to ship |
| Tracking focus | Availability for upcoming jobs | Location and stage in production | Quantity available to fulfill orders |
Real-world examples of Manufacturing Inventory Control
An electronics manufacturer uses barcode scanning to record raw material consumption as components are pulled for a work order, automatically updating inventory levels in real time without manual data entry.
A medical device company tracks work-in-progress inventory across multiple production stages, giving managers visibility into how much product is in each phase of a multi-step manufacturing process at any given time.
A food manufacturer monitors finished goods inventory by lot, ensuring accurate stock levels are available to support shipping commitments while maintaining full lot traceability.
Regulations and standards related to Manufacturing Inventory Control
ISO 9001 does not name manufacturing inventory control specifically, but its requirements for controlling production processes and maintaining traceability where required apply directly to how manufacturers manage inventory through the production lifecycle.
Regulated industries, particularly medical devices and pharmaceuticals, often require lot or serial-level traceability through manufacturing inventory, connecting inventory records to broader device history or batch record requirements.
Required by
How QT9 helps with Manufacturing Inventory Control
QT9 manufacturing inventory control capabilities
- Monitor inventory across multiple warehouses and production stages in real time.
- Use barcode scanning for receiving, transfers, cycle counts and more.
- Track inventory by lot or serial number for full traceability and compliance.
- Set min/max levels and get alerts when it's time to restock.
- Track inventory value using FIFO, LIFO or average cost methods.
- View a full transaction history of receipts, moves, adjustments and usage.
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Common mistakes with Manufacturing Inventory Control
Common mistakes include relying on periodic manual counts as the primary source of inventory truth, allowing system records to drift significantly from actual on-hand quantities between counts.
Other problems include failing to track work-in-progress separately from raw materials and finished goods, which obscures true production status and can lead to inaccurate delivery estimates.
Frequently asked questions
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