A production order defines which material is to be produced, how it should be produced, when it should be produced, and what quantity is required.
In this business example, production orders are used to initiate and control the production of bicycles in a bicycle company. Individual production orders will define the following information:
- Which bicycle types are to be produced?
- What quantities are to be produced?
- At which production time?
- What material components are required?
- Which operations are to be carried out at which work centers?