03 - Introduction to Work Orders

A Work Order (WO) is a production document that defines the tasks, resources, and materials required to manufacture a product. It serves as the execution link between the Bill of Materials (BOM) and the actual production process.

Work Orders help in:

• Planning and scheduling production

• Allocating raw materials to jobs

• Tracking progress of manufacturing

• Recording production costs and output

Key Elements of a Work Order

• Product to Manufacture – finished good to be produced

• Bill of Materials (BOM) – source of required raw materials and steps

• Quantity to Produce – the planned output

• Work Centers / Operations – where and how the product is made

• Raw Material Reservations – allocation of items from stock

• Production Status – draft, in progress, completed, or cancelled

Work Order Lifecycle

1. Creation – A WO is created from a Sales Order, Production Plan, or manually.

2. Material Reservation – Raw materials are reserved or issued against the WO.

3. Execution – Production tasks are carried out, progress is recorded.

4. Completion – Finished goods are updated in stock.

5. Closure – Costs are posted, and the WO is marked as complete.

Reports & Tracking

• Work Order Status Report – see all active and completed WOs

• Material Consumption Report – track raw material usage

• Production Cost Report – compare planned vs. actual cost

Best Practices

• Define accurate BOMs before creating Work Orders

• Use batch/serial tracking for traceability

• Review capacity planning to avoid bottlenecks

• Regularly monitor in-progress WOs for delays

Next Step

Once you are familiar with the basics of Work Orders, proceed to the next article: Creating a Work Order.