What is a Production Order?

Production Order

Share This...

Production Order

A production order is an official document or instruction issued by a company’s control department to its manufacturing or production department. It authorizes the production department to manufacture a specific quantity of a particular product.

A production order typically includes the following information:

  • Order ID/Number: A unique identifier for the order.
  • Product Description: Details of the product to be manufactured, such as name, model, SKU, etc.
  • Quantity: The number of units to be produced.
  • Materials List: A list of all the raw materials and components required to produce the specified quantity of the product.
  • Production Instructions: Detailed instructions for the manufacturing process, including steps to be followed, settings to be used on machinery, etc.
  • Scheduled Start and Completion Dates: When the production should start and by when it should be completed.
  • Routing Information: Information about the sequence of operations and work centers where the production will take place.
  • Quality Standards and Inspection Instructions: Information on the quality standards to be met and instructions for quality control inspection.

Production orders are essential tools in production planning and control, ensuring that the production department knows what to produce, how much to produce, and when to produce it. They also play a critical role in inventory management, cost accounting, and overall operational efficiency. Production orders can be tracked to monitor the progress of manufacturing activities and to identify any delays or issues that need to be addressed.

Example of a Production Order

Let’s consider a fictional company, “XYZ Autos,” which manufactures cars. The company receives a large order from a client for 200 units of their Model Z sedan.

The control department issues a production order to the manufacturing department. This order could look something like the following:

  • Order ID/Number: PO-12345
  • Product Description: Model Z Sedan
  • Quantity: 200 Units
  • Materials List: List of all materials required for the production of 200 Model Z sedans (e.g., steel sheets, car engines, tires, electronic components, upholstery materials, paint, etc.)
  • Production Instructions: Detailed instructions on the assembly process for the Model Z Sedan. This may include which parts to assemble first, which machine settings to use, how to install the software, etc.
  • Scheduled Start and Completion Dates: Start Date – September 1, 2023; Completion Date – November 30, 2023.
  • Routing Information: Information about the sequence of operations and the specific workstations or assembly lines where each step will be carried out.
  • Quality Standards and Inspection Instructions: Information about the standards the Model Z Sedan must meet, including safety standards, fuel efficiency standards, etc., and instructions on how to conduct quality control inspections at various stages of the production process.

This production order is then used by the manufacturing department to guide the production process. They will arrange for the required materials, schedule the work on the production lines, conduct quality inspections as instructed, and aim to complete the order by the scheduled date. The progress of the order will be tracked and any issues that arise will be addressed promptly to ensure timely and successful completion of the order.

Other Posts You'll Like...

Want to Pass as Fast as Possible?

(and avoid failing sections?)

Watch one of our free "Study Hacks" trainings for a free walkthrough of the SuperfastCPA study methods that have helped so many candidates pass their sections faster and avoid failing scores...