Production Management

What is a Production Order? How to Open and Track It?

Author: Korgün Software Published: September 7, 2026 7 minute read
What is a Production Order? How to Open and Track It?

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What you will learn in this article

  • Difference between production order and sales and work order
  • Required master data before opening an order
  • What records will be used to track production?
  • When a production order can be closed

A production order is a production instruction that gathers material, operations, dates, and actual results for producing a specific quantity of a specific product under the same record. Converts sales or stock needs into work to be done in the field; It shows not only when production started, but also how it progressed and with what result it was completed.

Separate the concepts first

Sales Order, Production Order, and Work Order Are Not the Same Thing

SALES ORDER

Shows customer's demand

Product, quantity, price and delivery expectation are kept in the commercial record. Not every sales order requires direct production.

PRODUCTION ORDER

Manages the product to be produced

It associates the need with the bill of materials, operation route, material consumption, time, quality and product result.

WORK ORDER

Directs specific operation

It is the work center and employee level instruction of an operation such as cutting, processing, assembly or packaging.

What is the need to open a production order?

PRODUCTION TO ORDER

customer order

Production is opened for the specific customer's quantity, variant and delivery date.

STOCK PRODUCTION

Inventory replenishment

Finished goods stock is renewed according to the target stock level or forecast.

SEMI-FINISHED PRODUCTS

Lower‑level need

A subsidiary order is created for the semi-finished product required by the main product order.

PROJECT AND SAMPLE

special production

Sample, trial or project based production is tracked with separate costs and results.

To see which materials are required by the production order MRP and material requirements planning guide Check it out. This article does not discuss the MRP calculation, but rather how to manage the order in the field after the need arises.

What Data Should Be Ready Before Opening a Production Order?

01

Order ID

Unique production order number, order type, resource request and responsible department.

02

Product and quantity

Stock code, variant, unit of measurement, planned quantity and tolerance to be produced.

03

Date and priority

Planned start, target finish, delivery date, sequence and urgency information.

04

bill of materials

The bill of materials version to be used, raw material and semi‑finished material requirements, and waste allowances.

05

Operation route

Process order, work centers, preparation and processing times, control points.

06

traceability

Production lot, material lots used, quality status and related documents.

An Order Opened with Incomplete Master Data Causes Problems Before It Even Starts

If the bill of materials is not up to date, material requirements are wrong, the route is missing, capacity and completion date are off, or the unit of measure is incorrect, the consumption amount is distorted. The production order does not correct these data; it only links the used versions to the production result. bill of materials and version structure in the bill of materials guide and review it.

How to Open and Track a Production Order?

01

order or need

A customer order, stock completion, project or semi-finished product need creates production demand.

02

Production order

The product, quantity, delivery date, bill of materials version, route and priority are linked by a single order number.

03

material consumption

The amount and lot, if any, of the raw material used in production, not the planned amount, are recorded.

04

Operations

Work center, start-end time, produced quantity, downtime, waste and rework results are entered.

05

quality control

Interim control and final control results are linked to the order with accepted and blocked amounts.

06

Product receipt

The approved product quantity is placed in the finished goods stock; The order is closed with realized results.

Sample production order

Planned and Actual Should Be Seen Separately in the Order Card

SOURCE

customer order

500 items to order

PLAN

500 pieces

8 September start, 10 September end

REALIZED

492 intact, 8 lost

With actual consumption and duration

CONCLUSION

8 open needs

The order cannot be considered ready until the completion decision is made.

What Do Production Order Statuses Mean?

01

draft

The order is prepared; The product, quantity and master data are still subject to change.

02

planned

The date, work center and capacity are checked and put into production order.

03

Released

Materials and documents are ready; The field can start production.

04

Manufacturing

Material consumption and operation realizations are recorded in the order.

05

Pending

Progress has been temporarily halted due to material, malfunction, quality or any other reason.

06

completed

Planned operations have been completed, result quantities and quality records have been entered.

07

Closed

It has been confirmed that there are no missing records and cost/stock movements have been finalized.

"In Production" and "Waiting" states should not be only color-changing labels. If the operation that changes the status, time and reason are recorded, the stage at which the delay occurred can be identified.

Things to Check Before Closing the Production Order

1

Are the solid quantity produced and the finished goods stock receipt the same?

2

Have waste, scrap and reprocessed quantities been recorded separately?

3

Have actual material consumptions and lots used been recorded instead of planned?

4

Are the start, end and result records of all operations complete?

5

Have intermediate and final quality checks been completed?

6

Is there any open backlog, waiting, outsourcing or missing quantity?

Linking actual material lots to the production order is the basis for tracing back raw material used from a defective product. The record chain In the guide for batch and lot tracking in production and review it.

Common Mistakes in Production Order Tracking

01

Collecting every order into one order

Combining different delivery dates, variants or production conditions into a single order disrupts priority and traceability.

02

Using the old bill of materials and route

Even though the product has changed, the order opened with the previous version produces the wrong material requirement and operation time.

03

Accept planned expenditure as actual

Excess consumption, substitute material and wastage in the field are invisible; Stock and cost do not reflect reality.

04

Closing operations altogether

It cannot be determined how much time and loss occurred in which work center. Downtime and bottleneck analysis are weakened.

05

Show incomplete order completed

If the order is closed while there is an open quantity, quality waiting or subcontracting process, the order may be considered ready.

Frequently Asked Questions

Can a production order be created without a sales order?

Yes. Orders can also be opened for stock completion, semi-finished product needs, sample or project production. Specifying the resource requirement on the order facilitates subsequent analysis.

Can there be more than one product in a production order?

Although it is possible depending on the system design, managing different products, variants or traceability conditions in separate orders makes result and cost tracking more clear.

When is the production order considered complete?

It can be completed when operations are finished, good and defective quantities are entered, quality results are given, and finished goods entry is made. It is closed after financial and inventory checks.

Can the production order be changed later?

It can be changed according to the authority and status rule; However, after production begins, it should be recorded who made quantity, bill of materials or route changes and why.

To see the plan, material and operation link of the production order in the work order opening and tracking guide You can also review the record chain.

Actual production result from planned work

Manage production order with material, operation and quality records

Production orders, operation realizations, actual expenses and product receipts KG Palaimon Examine how you can track with it.

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