Production Order

Examples of Production Orders

Production orders can vary depending on industry and product, for example:

• An order for 1,000 units of a finished product in food production

• An order for assembling metal parts into a machine component

• An order for assembling electronic modules into a finished product

What all production orders have in common is that they describe what needs to be done and function as a control tool throughout the entire production process.

Production Order vs. Production Plan and Work Drawing

To fully understand production orders, it can be helpful to distinguish between a few closely related concepts:

1. Production plan: The overall plan that shows which products are to be produced, in what quantities, and when they need to be completed. The production plan serves as the company’s “master plan” for production and helps prioritise resources and capacity.

2. Production order: The production order is the concrete instruction that initiates the production of a specific product or batch. It translates the plan into action and tells production staff exactly what needs to be done, which materials are required, and when the work is to be carried out.

3. Work drawing: A work drawing provides detailed technical instructions on how the product is to be manufactured. This may include dimensions, material types, assembly instructions, or step-by-step processes that ensure the product is produced correctly and consistently.

Production orders are therefore the key to turning production plans into reality and ensuring that work is carried out accurately and efficiently. Without clear production orders, even the best plan can fall apart because employees do not know exactly what they are expected to produce.

Why It’s Essential to Have Control Over Your Production Orders

When production orders are handled poorly, it can quickly lead to problems such as delays, material waste, production errors, and lower productivity. On the other hand, when you have full visibility and control over your production orders, you can:

– Ensure production runs according to plan: Everyone knows what needs to be produced, when, and in what quantities.

– Optimise resource usage and working time: With properly planned and fully documented orders, materials and labour hours are used efficiently.

– Prevent errors and lack of coordination: When all steps are documented and visible, the risk of misunderstandings, duplicated work, and bottlenecks is minimised.

In short, the entire production flow becomes more stable when production orders are clear and accurately recorded.

Production Orders in Production and Inventory Management

In both production and inventory management, production orders play a central role. To ensure a smooth and efficient process, orders should:

– Be registered correctly and tracked throughout production: This makes it possible to follow the product’s status from start to finish and identify potential bottlenecks.

– Clearly specify materials, quantities, and deadlines: All involved employees and departments have the necessary overview to perform their tasks correctly.

– Be integrated with inventory levels: When production orders are linked to inventory, you can avoid production stoppages due to missing materials and gain better visibility into capital tied up in stock, raw material consumption and purchasing management.

When you have control over your production orders, you not only gain better control over production itself, but also over inventory levels, planning, and costs—resulting in a more efficient and transparent production flow.

Efficient Handling of Production Orders with Rackbeat

With a WMS like Rackbeat, you can:

• create production orders directly in the system

• track their progress from plan to finished product

• minimise errors and waste through automated control

• gain real-time insight into inventory and create bills of materials

This makes it easier to plan, prioritise, and ensure that your products are completed on time.

Ready to Take Control of Your Production Orders?

At Rackbeat, our advisors can help you:

• optimise your production processes

• gain full visibility into ongoing and upcoming production orders

• implement a system that fits your business

Book a free and no-obligation online meeting to learn more: