Production Orders — Planning to Completion

A Bill of Materials defines how to make a product. A Production Order defines what to make, how much, and when. It is the formal instruction to the shop floor to manufacture a specific quantity of a finished good using a specific BOM, within a planned timeframe.

Production orders are the central record for tracking manufacturing activity in Udyamo ERP Lite. They link the BOM to actual production, drive material issues, and provide the basis for production costing and performance analysis. Every unit of finished goods that enters your inventory should trace back to a production order.

What You Will Learn

• What a production order is and when to create one
• The production order lifecycle: planned, in progress, on hold, completed, cancelled
• Priority levels and how to use them
• Planned vs. actual dates and what the gap tells you
• Location assignment for production output
• Step-by-step: creating a production order, starting production, handling holds, and completing the order
• How production numbers are auto-generated

Prerequisites

Required: Before creating a production order, ensure the following:

• At least one BOM exists in Approved status (see Chapter 13)
• The finished good item exists in the Item Master
• Warehouse locations are configured (see Chapter 9)

What is a Production Order?

A production order is an internal document that authorizes the shop floor to manufacture a specific quantity of a product. It answers four questions:

1. What are we making? (The finished good, linked to a BOM)
2. How many are we making? (The quantity)
3. When should production start and finish? (Planned dates)
4. Where will the finished goods be stored? (The output location)

In a steel fabrication shop, a production order might say: "Manufacture 200 units of MS Flange 150mm PN16 using BOM version 2, starting 10 March and finishing by 17 March, with output to the Finished Goods Warehouse."

Production Number

Every production order is assigned a unique production number that serves as its identifier throughout the system. Udyamo ERP Lite auto-generates production numbers in a sequential format. This number appears on material issues, quality inspections, and any other documents linked to the production order.

The Production Order Lifecycle

Production orders move through a defined set of statuses that reflect the real-world progression of manufacturing work:

Planned

The production order has been created but work has not started. At this stage, you can:

• Edit all fields (BOM, quantity, dates, location, priority)
• Review material requirements based on the linked BOM
• Create material issues to prepare raw materials
• Cancel the order if plans change

This is the planning phase. Use it to line up materials, verify capacity, and confirm the production schedule before committing shop floor resources.

In Progress

Production has started. The status changes to "in_progress" when you trigger the Start Production action. At this point:

• The actual start date is recorded automatically
• Material should have been issued to the production floor (via material issues)
• The order is now visible as active work on the shop floor
• Editing is restricted to prevent changes to an active production run

On Hold

Production has been temporarily paused. Common reasons for putting an order on hold:

• Machine breakdown requiring repair
• Quality issue discovered during in-process inspection
• Material shortage mid-production
• Priority change — a more urgent order needs the same resources

The Hold Production action pauses the order. The order remains in the system with all its data intact, waiting to be resumed.

Completed

Production is finished. The Complete Production action:

• Records the actual end date
• Signals that finished goods are ready to be received into inventory
• Closes the production order against further material issues
• Provides the basis for calculating actual vs. planned performance

Cancelled

The production order has been abandoned. The Cancel Production action is used when:

• The customer cancels the underlying sales order
• The product is discontinued
• The order was created in error

Cancelled orders are retained in the system for audit purposes but cannot be reactivated. Any materials already issued should be handled through the material return process.

Status Transition Summary

Warning: Completing a production order is a significant action. Once completed, the order cannot be reopened. Verify that the actual quantity produced is correct and that quality inspections (if required) have been performed before marking the order as complete.

Priority Levels

Not all production orders are equally urgent. Udyamo ERP Lite supports four priority levels:

Priority is an organizational tool. It does not automatically reschedule other orders — that remains the production supervisor's decision. However, filtering and sorting production orders by priority helps the supervisor make informed scheduling decisions.

Tip: Reserve the "urgent" priority for genuine emergencies. If everything is urgent, nothing is urgent. Most production orders should be "medium" priority, with "high" used selectively for time-sensitive work.

Planned vs. Actual Dates

Each production order tracks four dates:

The gap between planned and actual dates is a key performance indicator. Consistently late completions may indicate:

• Unrealistic planning (planned durations are too short)
• Capacity constraints (too many orders competing for the same resources)
• Material availability issues (production waiting for raw materials)
• Quality problems (rework extending production time)

Review planned vs. actual dates regularly to calibrate your planning and identify systemic issues.

Location Assignment

The location field on a production order specifies where the finished goods will be received into stock upon completion. This is typically a finished goods warehouse or a specific storage area within your facility.

Choosing the correct location matters because:

• Stock levels at that location will increase when the order is completed
• Downstream processes (packing, dispatch) will look for finished goods at this location
• Stock valuation reports will reflect the production output at this location

Step by Step: Creating and Managing a Production Order

Creating a Production Order

Step 1: Navigate to production orders.

Go to Manufacturing > Production Orders. Click New Production Order.

Step 2: Fill in the production order details.

Step 3: Save the production order.

Click Save. The system assigns a production number (e.g., PO-2026-0042) and sets the status to Planned.

Starting Production

Step 4: Ensure materials are available.

Before starting production, verify that raw materials have been issued to the production floor. Create a Material Issue if you have not already done so (see Chapter 15).

Step 5: Start the production order.

Click the Start Production button. The system:

• Changes the status to In Progress
• Records the actual start date as today's date
• The production order now appears as active work

Handling a Production Hold

Step 6 (if needed): Put the order on hold.

If production needs to pause — for example, the cutting machine requires maintenance — click Hold Production. Enter a note explaining the reason (e.g., "CNC cutting machine — bearing replacement, expected 2-day downtime").

The status changes to On Hold. The order remains in the system, preserving all data.

Step 7 (when ready): Resume production.

Once the issue is resolved, click Resume Production. The status returns to In Progress.

Completing Production

Step 8: Complete the production order.

When all 200 flanges have been manufactured and passed quality inspection, click Complete Production. The system:

• Changes the status to Completed
• Records the actual end date
• The finished goods (200 units of MS Flange 150mm PN16) are available at the Finished Goods Warehouse

Tip: Before completing the order, verify the produced quantity against the planned quantity. If you produced fewer units due to rejections, note this in the production order notes for future analysis.

Cancelling a Production Order

If a production order is no longer needed (e.g., the customer cancelled their order), click Cancel Production from the planned or on-hold status. Enter a note explaining the reason for cancellation.

Warning: If materials have already been issued to a cancelled production order, you will need to create a material return to move those materials back to the warehouse. Otherwise, your stock records will show materials as consumed when they were not.

Tips & Best Practices

Tip: Use the notes field liberally. Record the sales order number, customer name, any special instructions from the customer, and any deviations from the standard process. These notes become invaluable when reviewing production history months later.

Tip: Create production orders at least 2-3 days before the planned start date. This gives time to check material availability, create material issues, and resolve any shortages before the shop floor is ready to begin.

Tip: Review open production orders at the start of every day with your production supervisor. Filter by priority (urgent and high first) and by planned start date. This daily review is the simplest form of production scheduling and prevents orders from falling through the cracks.

Warning: Avoid creating production orders without linking them to an approved BOM. While the system allows you to select items directly, linking to a BOM ensures consistent material requirements, accurate costing, and a clear audit trail.

Quick Reference

Production Order Actions