Introduction to Work Orders
Overview
Work Orders
A work order is an authorization to produce a specified quantity of a specified item by a specified date.
Work Order Bills and Routings
Each item has a bill and a routing associated with it. Each work order inherits the bill and routing of its item, which you can modify as needed.
Work Orders: Source
The demand for work orders originates in MRP as it processes demand from:
• Sales orders
• Return material authorizations
• Parent work orders
• Manually entered orders
Terminology
Routable
Routable work orders for subassemblies are automatically created when a parent item is allocated or released.
Rework
Required for items that are unacceptable and need additional processing.
Work Order Splits
Often created when component inventory is short. You split the work order to finish as much as possible while awaiting receipt of more components.
Work In Process (WIP)
Work in process refers to products in various stages of completion throughout the plant. Stages include raw material issued to work orders up to processed material awaiting final inspection and acceptance as finished product.
Due Date
The date this work order is due to be completed, which is the date you plan to have product available:
• For shipment to a customer
• To issue to another manufacturing order
All MRP plans are based on this due date
Release Date
The date this work order is scheduled to be released to production. Orders not released by this date are flagged on the MRP reports. The system calculates either release or due date, creating in effect, forward or backward order scheduling.
Manufacturing Lead Time
The normal or average number of working days it takes to manufacture the item, including the time to process paperwork, issue components, inspect the finished product, and receive it into stock.
• For items with Pur/Mfg code set to M, the manufacturing lead time can be calculated from the item’s routing/process as part of the Routing Cost Roll-Up
• When a work order is entered for a purchased or manufactured item, the system uses this lead time to calculate the release date
