Day 12 — Production Order

What is a Production Order in SAP PP?

1. A Production Order is an instruction to manufacture a product. 2. It is created from a Planned Order or manually. 3. It contains BOM and Routing details. 4. It specifies production quantity and dates. 5. It allows material issue for production. 6. It records production confirmation. 7. It updates inventory after production. 8. It is closed after production is completed.

A company manufactures 200 air conditioners. 1. MRP creates a Planned Order. 2. Planner converts it into a Production Order. 3. Raw materials are issued. 4. Workers manufacture the product. 5. Production is confirmed. 6. Quality inspection is completed. 7. Finished goods are received into inventory. 8. Production Order is closed.

1. What is a Production Order? 2. How is a Production Order created? 3. What information is available in a Production Order?