Work Order
A work order is an authorization to produce a specific quantity of an item for a specific date. A work order can represent a manufacturing production order, a repetitive schedule, or a sequenced production line.
Work orders are typically created in response to current or projected demand for an item. Work orders can also be used to build up inventory in anticipation of future demand when there is unused manufacturing capacity.
Elements of a Work Order
Important elements of a work order include:
• The type identifies the source of the order and indicates how it should be processed.
• The status determines where a work order is in its life cycle.
• The bill of material (BOM) lists the quantities of components required to fulfill an order.
• The routing lists the operations required to complete the order.
These elements are examined on the following pages.
