What is a production order?

A production order represents an internal order (in SAP) that is used to manufacture a defined quantity of a specific individual part, assembly or product in a company. The production order is triggered either by a sales order or by an internal ordering party. A production order contains all the relevant information needed to carry out the manufacturing process. This includes information about the product to be produced, the BOM status, the materials required, the routings, the resource requirements, the planned start and finish time, the quantities and other relevant details.

What does a production order involve?

  1. Order number A unique identification number assigned to the production order.

  2. Product information Details of the product to be manufactured, including the product name, Bill of Materials (BOM) and, if applicable, technical drawings or specifications.

  3. Quantities and units The planned or to-be-produced quantity of the product, usually expressed in pieces or other relevant units.

  4. Scheduling Planned start and finish time of the production order to control the production schedule and monitor progress.

  5. Resources Information about the required resources such as machinery, equipment, tools, labour or specific skills needed to complete the manufacturing order.

  6. Materials and components A list of the required materials, parts or components needed to manufacture the product. This usually includes the exact name, quantity and, if applicable, information on material availability.

  7. Work instructions Detailed instructions on how the production order is to be carried out, including the sequence of each production step, work instructions, quality standards and inspection procedures.

  8. Cost centre allocation Information on the cost centres or departments responsible for carrying out the production order.

  9. Status and tracking The current status of the production order, e.g. whether it is planned, started, in progress, completed or cancelled. This enables tracking of progress and effective production control.

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