What is a Work Order

A Work Order (WO) in manufacturing management is a formal document or instruction that outlines specific tasks to be performed to produce a product or component. It serves as the foundation for organizing, tracking, and executing production processes on the shop floor. A work order is crucial for ensuring that manufacturing operations are completed correctly, on time, and in accordance with the planned resources, such as labor, machinery, and materials.

Key Elements of a Work Order

  1. Work Order Number: A unique identifier assigned to each work order for tracking and reference.

  2. Product or Component Details: Specifies the product to be manufactured, including part numbers, descriptions, and quantities.

  3. Operations and Routing: Lists the specific tasks or operations required, typically aligned with a Routing plan, which details the sequence of production steps.

  4. Work Centers: Identifies the Work Centers where each operation will take place, ensuring the correct machines and resources are allocated.

  5. Materials and BOM: References the Bill of Materials (BOM), which provides a detailed breakdown of the raw materials, components, and sub-assemblies needed to complete the work order.

  6. Labor and Time Allocation: Specifies labor resources required and the time allocated for each operation, including both setup and production time.

  7. Deadlines and Schedule: Defines the start and finish dates for the work order, ensuring production aligns with delivery requirements.

  8. Costs and Resources: Tracks material, labor, and overhead costs, helping in cost analysis and control for each production job.

The Process of a Work Order in Manufacturing

  1. Work Order Creation: A work order is generated based on demand, which could come from a customer order, forecast, or stock replenishment. It includes detailed instructions on what is to be produced and the resources required. In SIX ERP a Workorder is part of a Manufacturing order, which groups several Workorders for the production of a Specific Product or product group.

  2. Assignment to Work Centers: Each operation in the work order is mapped to the appropriate Work Centers, which are equipped with the necessary machinery and labor. This assignment follows the Routing specified for the product, ensuring that tasks are performed in the correct sequence.

  3. Material Allocation: The work order pulls materials as outlined in the Bill of Materials (BOM). These materials are allocated to the work centers for each stage of production.

  4. Scheduling and Capacity Planning: The work order is integrated into the overall Production Schedule, which considers the capacity of each work center to ensure efficient operation. This process ensures that production resources are available and that deadlines can be met without bottlenecks or delays.

  5. Execution and Tracking: As the work order progresses, each operation is tracked in real-time. Labor and machine time are logged at the work centers, and the status of materials is updated. Any deviations from the plan, such as delays or material shortages, are flagged for corrective action.

  6. Quality Control: Work orders often include steps for Quality Control (QC). As the product moves through various stages, inspections are performed at key points to ensure the quality of materials and processes.

  7. Completion and Closing: Once all operations in the work order are completed, the work order is closed. At this stage, all costs, materials, and labor hours are finalized, and the finished product is either moved to inventory or shipped to the customer.

Connection to Key Terms

Importance of Work Orders in Manufacturing Management

Example Use Case

Consider a furniture manufacturer that produces wooden tables. A customer places an order for 50 tables, triggering the creation of a Manufacturing Order. The Manufacturing order is sub-devided into several work orders which specify:

A work order is a vital tool in manufacturing management, providing a detailed plan for executing production tasks. It ties together critical elements like routing, work centers, BOMs, and scheduling, ensuring that production flows smoothly, costs are controlled, and quality standards are met. In systems like SIX ERP, work orders are deeply integrated with other manufacturing functions, making them essential for efficient, organized, and profitable manufacturing operations.