A Manufacturing Order (MO) is a formal instruction to produce a specific quantity of a finished product or component in a manufacturing facility. It acts as a higher-level document that groups multiple Work Orders (WOs), which represent the individual tasks or steps needed to complete the manufacturing process. The manufacturing order oversees the entire production workflow from start to finish, ensuring that all necessary steps—defined by individual work orders—are executed correctly and efficiently.
A manufacturing order typically covers the production of a finished product and organizes the process into multiple work orders, each representing a different stage of production. For example, producing a complex product like a car engine may require several work orders, such as casting, machining, assembly, and quality control. The manufacturing order groups these work orders together, ensuring that they follow the defined Routing, use appropriate Work Centers, and consume the materials listed in the Bill of Materials (BOM).
In some cases, sub-BOMs may be defined for specific work orders within a manufacturing order. These sub-BOMs detail the materials and components required for intermediate products or sub-assemblies that are produced either at different internal work centers or outsourced to external work centers. This approach allows manufacturers to efficiently manage complex production processes where different stages of assembly or fabrication occur at separate locations, while still maintaining full traceability of materials and ensuring that each work order is properly resourced and completed according to the overall production plan.
Work Orders within a manufacturing order represent smaller, specific tasks. Each work order corresponds to a particular operation (e.g., cutting, assembly, or painting) and is performed in a designated work center.
The manufacturing order ensures that these tasks are coordinated, tracked, and completed in the correct sequence, ensuring the entire product is produced on time and according to specifications.
A manufacturing order consists of several subprocesses that break down the full production cycle into manageable steps. These subprocesses cover everything from planning and material allocation to quality checks and completion.
Triggered by Demand: A manufacturing order can be generated based on a customer order, inventory replenishment needs, or production forecasts.
Defines the Finished Product: The MO specifies the final product, including part numbers, descriptions, quantities, and due dates. It typically refers to the associated Bill of Materials (BOM), Routing, and production instructions.
Material Requirements Planning (MRP) ensures that the necessary raw materials and components are available for production. The manufacturing order pulls information from the BOM to determine the required materials.
Material Reservation: The system checks inventory levels and reserves the required materials for the MO. If materials are not available, procurement or production orders for those materials are triggered.
Routing defines the sequence of operations needed to complete the production process. The manufacturing order uses routing to outline which Work Centers will perform specific operations and in what order.
Work Order Creation: For each operation in the routing, a corresponding Work Order is generated. These work orders detail the specific tasks to be completed at each step, such as machining, assembly, or quality control.
Capacity Planning ensures that the manufacturing order can be completed using the available resources (labor, machinery, and time) at each work center. If resources are limited, production schedules are adjusted.
Production Scheduling assigns a timeline to each work order within the manufacturing order, ensuring the correct sequence of operations and avoiding bottlenecks at work centers.
Work Order Processing: Once the manufacturing order is scheduled, individual work orders are executed at the corresponding work centers. Operators perform the tasks specified in the work order, logging time, material usage, and labor.
Work-in-Progress (WIP) Tracking: As each work order is completed, the system updates the status of the manufacturing order, allowing managers to monitor the overall progress and ensure that production stays on schedule.
In-Process Quality Checks: Quality control inspections are performed at various stages of production as specified in the manufacturing order. These checks help catch defects early in the process, reducing rework or waste.
Final Inspection: Once all work orders are completed, a final quality check ensures the finished product meets the required specifications.
Cost Tracking: As each work order is processed, the system tracks the associated costs (labor, material, overhead). These costs are aggregated at the manufacturing order level, allowing for analysis of actual versus planned production costs.
Cost Variance Analysis: If actual costs differ from expected costs, the manufacturing order provides visibility into where the discrepancies occurred, helping in future production planning and budgeting.
Work Order Completion: As individual work orders are completed, components may be moved to the next stage of production or into Inventory as intermediate products.
Final Product Delivery: Once all operations in the manufacturing order are complete, the finished product is moved to finished goods inventory or shipped to the customer.
Closeout of Work Orders: After all work orders under the manufacturing order are completed, the MO is closed, signifying the end of the production process.
Reporting: The system generates reports on production performance, including data on costs, efficiency, quality, and resource usage. This helps manufacturers evaluate performance and plan future production.
Bill of Materials (BOM): The manufacturing order pulls data from the BOM to ensure all required materials and components are available. Each work order within the manufacturing order uses these materials as inputs for specific operations.
Routing: The manufacturing order follows the routing plan, which defines the sequence of operations. Routing ensures that work orders are generated in the correct order and that tasks are assigned to the appropriate work centers.
Work Centers: Work orders in a manufacturing order are executed at designated work centers. These centers handle specific tasks such as machining, assembly, or inspection.
Work Orders: A manufacturing order groups and oversees the execution of multiple work orders, each representing a specific operation within the production process.
MRP (Material Requirements Planning): The MO integrates with MRP to ensure that all necessary materials are available for each step of production.
Consider a bicycle manufacturing company producing 500 bicycles. The manufacturing order for this batch will group the following work orders:
Frame Cutting Work Order: Assigned to the Cutting Work Center for cutting metal tubes into frame parts.
Welding Work Order: Sent to the Welding Work Center for assembling and welding the frame parts together.
Painting Work Order: Directed to the Painting Work Center for applying a protective coat to the frame.
Assembly Work Order: Managed at the Assembly Work Center, where all bicycle components (frames, wheels, gears) are assembled.
Final Inspection Work Order: Conducted at the Quality Control Work Center to ensure all bicycles meet the necessary standards.
The manufacturing order oversees all these work orders, ensuring that materials are allocated correctly, tasks are scheduled and executed in the proper sequence, and quality checks are performed. Once all work orders are completed, the manufacturing order is closed, and the 500 bicycles are moved to finished goods inventory.
A Manufacturing Order (MO) is an essential tool in manufacturing management that coordinates and tracks the entire production process. It groups multiple Work Orders, ensuring that all operations follow the specified Routing, use the appropriate Work Centers, and consume the materials from the Bill of Materials (BOM). With subprocesses like material allocation, capacity planning, work order execution, and quality control, the manufacturing order ensures efficient production, cost control, and high-quality output. In ERP systems like SIX ERP, manufacturing orders help streamline complex production workflows, providing visibility and control at every step of the manufacturing process.