Order concept

Orders include sales orders and demand forecasts from customers. A sales order often includes multiple sub-items.

Some customers place long-term orders, such as monthly or quarterly orders. After receiving the order, the enterprise needs to break down the long-term order into a delivery plan, deliver the goods in batches and purchase materials.

In many businesses, different customer orders may include the same product with only slight differences in packaging.

Sales orders usually only include finished products. Parts and components are automatically brought out by the BOM and will not be included in the order.

Production work order

According to the customer’s sales order, it is usually necessary to issue a production order (also called a work order). In ERP, if the BOM is divided into multiple levels, work orders are also opened according to levels.

Work order is the basic unit of production organization

Several ways to open a work order

Graded matching: According to the delivery plan of the finished product order, finished product work orders are issued in batches. The number of work orders takes into account the convenience of organizing production. Finished product work orders are developed layer by layer according to the BOM, and at each level, a semi-finished product work order matching the finished product is issued. Usually the work order numbers have a certain matching relationship, for example, the first few digits are the same but the last digit is different.

Advantages: The structure is clear and easy to manage. The plan is arranged according to the matching principle during production, and there will be no problem of incompatibility between the front and back.

Disadvantages: It may result in too many work orders and many small work orders, which is not conducive to consolidated production and will increase the difficulty of workshop management.

Production scheduling optimization strategy: APS arranges multiple work orders with the same material number and close demand time to be produced together during scheduling, which can reduce unnecessary switching.

Independent billing at all levels: There is no one-to-one correspondence between semi-finished work orders and finished product work orders. When issuing semi-finished work orders, the requirements of multiple orders will be merged, reducing the total number of work orders and merging production.

Advantages: Reduce the total number of work orders and reduce the workload of workshop production management

Disadvantages: Increased inventory of semi-finished products may cause parts to be incompatible with assembly production.

Production scheduling optimization strategy: Use the APS algorithm to match before and after and establish a corresponding relationship. If the difference in the matching demand time of a half-product work order is too large, the production will be split and the half-product inventory will be reduced.