Work Order

Work orders are the operational backbone of a manufacturing floor. While MRP determines what needs to be produced and when, work orders are the actual instructions that make it happen. Each work order typically references a BOM for the materials list and a routing for the sequence of operations. A routing defines the steps required to produce the product: cut, weld, paint, assemble, inspect. Each step is assigned to a work center (a machine or production area) with an estimated time. The work order lifecycle follows a predictable pattern. It begins as a planned order, usually generated by MRP. A planner reviews and confirms it, which triggers material reservations. When the scheduled start date arrives, the work order is released to the shop floor. Operators report progress by recording material consumption and time spent at each operation. When the final operation is complete, the finished product is received into inventory and the work order is closed. Work orders generate important data for management. Comparing planned versus actual material usage reveals waste. Comparing planned versus actual labor time reveals efficiency. Analyzing scrap rates by work center identifies equipment problems. Tracking on-time completion rates shows schedule reliability. Increasingly, manufacturers are moving toward paperless work orders displayed on shop floor terminals, which enables real-time progress tracking and eliminates the delays and errors associated with paper-based reporting.