Manufacturing Order
Definition
A manufacturing order (production order or work order) is the authorization to produce a specific quantity of an item by a due date, carrying the bill of material and routing that define the components and operations required.
In Practice
The manufacturing order is where planning becomes execution. Created from an MRP planned order or a customer order, it reserves and issues components per the BOM, schedules operations across work centers per the routing, collects labor and machine time, and receives the finished quantity into stock — accumulating actual costs against standards along the way.
Its lifecycle (planned, firmed, released, in process, completed, closed) is the backbone of shop floor control. Order status tells the planner what is committed, dispatch lists sequence released orders at each work center, and closing the order settles cost variances. A plant's WIP is simply the sum of its open manufacturing orders.
Frequently Asked Questions
What is the lifecycle of a manufacturing order?
Planned (suggested by MRP), firmed (protected from replanning), released (components issued or kitted, paperwork to the floor), in process (operations reporting progress), completed (finished quantity received to stock), and closed (costs settled, variances analyzed). Each status change updates inventory, capacity, and cost records.
What is the difference between a manufacturing order and a purchase order?
Both are supply orders MRP can create, but a manufacturing order authorizes internal production — consuming components and capacity per a BOM and routing — while a purchase order authorizes an external supplier to deliver material. The planner chooses based on the item's make-or-buy designation.
Related Calculators
Related Terms
A kit is a grouped set of components picked and issued together as one unit — either staged for a production order or sold as a bundled item — so everything needed for assembly or use arrives complete.
Picking ListA picking list (pick list) is a document or digital task list that tells a warehouse operator exactly which items, quantities, and locations to pick to fulfill one or more orders, sequenced to minimize travel.
Gateway Work CenterA gateway work center is the first work center in a production routing — the point where a manufacturing order enters the shop floor and its raw material is first committed to the process.
Material Requirements Planning (MRP)Material Requirements Planning (MRP) is a calculation engine that translates a production schedule into time-phased requirements for every component and raw material, using bills of materials, inventory records, and lead times.
Count PointA count point is a designated step in a production routing where completed units are counted and reported, so the system can track work-in-process quantities and backflush component usage without recording every individual operation.