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What Is A Production Order?
A production order is an internal directive used in manufacturing (e.g., in SAP) to produce a specific quantity of a part, assembly, or product. It is initiated either by a sales order or an internal request and contains all essential details for production. This includes the product specifications, bill of materials (BOM) status, required materials, routing, resource allocation, planned start and completion times, and production quantities.
What Are the 4 Steps of Production Order?
Planning – Checks component and resource availability while allocating capacity to ensure timely production. Once authorized, the release date is set to meet delivery deadlines.
Release – Assigns components to the order. If automated, this step also triggers transfer orders and purchase requests for out-of-stock materials.
Work in Progress – The order is divided into production runs, and manufacturing operations begin. Components are used as production progresses, and finished products are moved to stock locations.
Completion – All finished goods are fully produced, recorded, and received into inventory, marking the production order as complete.
What Does A Production Order Involve?
Order Number – A unique identifier assigned to the production order for tracking and management.
Product Information – Details about the item to be manufactured, including its name, Bill of Materials (BOM), and any relevant technical specifications or drawings.
Quantities and Units – The planned production volume, typically measured in pieces or other relevant units.
Scheduling – The planned start and finish times to manage production timelines and monitor progress.
Resources – Information on the required machinery, tools, labor, and specialized skills needed for production.
Materials and Components – A list of required raw materials, parts, and components, including their quantities and availability status.
Work Instructions – Step-by-step guidelines detailing production sequences, quality standards, and inspection procedures.
Cost Center Allocation – The cost centers or departments responsible for executing the production order.
Status and Tracking – Real-time updates on the production order’s progress, such as planned, in progress, completed, or canceled, ensuring efficient workflow management.
