Production orders
A production order is the document that authorises and controls the manufacture of a product, specifying what to make, from which components (BOM), through which operations (routing). It is the execution heart of discrete manufacturing in PP.
Production orders integrate PP with MM (component issues, finished-goods receipt), CO (order costs and settlement, variance analysis), and QM (in-process inspection).
- A production order defines a specific manufacturing job: the material and quantity to produce, the components to consume (from the…
- Create & release (often from a planned order via MRP).
- Goods issue of components to the order.
- Watch out: Order not released, cannot execute.
What a production order does
A production order defines a specific manufacturing job: the material and quantity to produce, the components to consume (from the BOM), and the operations to perform (from the routing). It is released to the shop floor, materials are issued to it, operations are confirmed, and the finished goods are received into stock.
The order lifecycle
- Create & release (often from a planned order via MRP).
- Goods issue of components to the order.
- Confirmation of operations (times, yields).
- Goods receipt of finished product into stock.
- Settlement of order costs.
Integration
Production orders integrate PP with MM (component issues, finished-goods receipt), CO (order costs and settlement, variance analysis), and QM (in-process inspection). They are where planning becomes physical production and where manufacturing cost is captured. Process industries use process orders analogously.
Common pitfalls
- Order not released, cannot execute.
- Missing component goods issue, wrong consumption/costs.
- Order not settled, costs stuck on the order.