Production represents the heart of most manufacturers and their distinctive competency. A separate functional area termed production activity control is typically responsible for coordinating the execution of production activities. These activities are driven by the firm s S&OP (sales and operations planning) game plans.
Manufacturing environments can have a wide range of production activities. Many of these variations in production activities can be modeled using bill of material and routing information, although some firms operate without routing data. Other variations reflect different ways to suggest, report, and coordinate production activities (such as lean manufacturing environments), or make-to-order environments requiring linkage between production orders and sales orders. This argues for a contingency approach to modeling and managing production activity.
A production order represents the set of activities to produce an item. Differing types of production orders are used to model different types of production activities. This chapter starts with the basic structure and life cycle for a production order and an explanation of production order types. It explains the variations for reporting production activities and the primary tools for coordinating manufacturing. It also includes case studies of several manufacturing environments.