Overview
A Work Order is a formal authorization to manufacturing to produce, refurbish, rework or disassemble an item. The Work Order can consume material, labor and machine resources, as well as overhead charges, during the production of the item. The Work Order function provides the necessary information needed by various departments to plan, schedule and manage the manufacturing shop floor. It also provides a repository for capturing the Standard and Actual (standard cost division) or Weighted Average and Actual cost (weighted average cost division) of the Work Order.
Application
The following details how a manufacturing Work Order is used:
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Authorization for manufacturing in use resources in the manufacture of an item.
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Planned and scheduled Work Orders by Work Centers.
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Work Center Capacity Planning.
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Production reporting of labor and quantities produced.
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A planned standard cost of production versus an actual cost of production and the calculated variance.
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Work in Process valuation.
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“As-built” Work Order information. This provides a permanent record of the actual material issued to a Work Order, including non-lot and non-serial controlled items, lot controlled items, and serial controlled items.
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Serial number usage traceability
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Lot number usage traceability
SEE ALSO
