{"id":68628,"date":"2023-11-16T14:00:02","date_gmt":"2023-11-16T20:00:02","guid":{"rendered":"https:\/\/www.projectmanager.com\/?p=68628"},"modified":"2026-07-17T13:32:36","modified_gmt":"2026-07-17T18:32:36","slug":"production-order","status":"publish","type":"post","link":"https:\/\/www.projectmanager.com\/blog\/production-order","title":{"rendered":"How to Make a Production Order for Manufacturing"},"content":{"rendered":"

Manufacturers make things, and how much they make is determined by demand and the supply of raw materials. But who makes the decision on the quantity of output and how that information is delivered is processed through what’s called a production order.<\/p>\n

First, let\u2019s define what a production order is and why it\u2019s so important to the manufacturing process. Then we\u2019ll outline what\u2019s included in the project order so you know how to make one run production more efficiently. We\u2019ll also throw in some free production planning templates.<\/p>\n

What Is a Production Order?<\/h2>\n

A production order is a document that’s generated by a manufacturing company\u2019s control department and sent to its production department to authorize the specific number of a particular product that will be produced over a time period. The production order is usually issued after a sales order has been made.<\/p>\n

The creation of a production order will trigger certain events in the manufacturing process. If the necessary items referenced in the bill of materials are in stock, they are reserved for production. If they are not in stock, then a requisition order will be created to acquire them. At this point, planned costs for the order will also be determined as well as capacity requirements for work centers.<\/p>\n

All this is part of the larger manufacturing process that can be controlled with project management software. ProjectManager<\/a> is award-winning project management software that has customizable Gantt charts to visualize the production workflow. Users can break down production order steps into individual tasks to create a detailed schedule. If there are task dependencies, project managers can track all four types of them on the Gantt to avoid costly bottlenecks.\u00a0Get started with ProjectManager today for free.<\/p>\n

\"Gantt<\/a>
ProjectManager’s Gantt charts visualize your production workflow. Learn more<\/a><\/figcaption><\/figure>\n

Why Is It Important to Use Production Orders?<\/h2>\n

Production orders are important because they make sure a manufacturer has the amount of product that the market demands. But more than that it helps production planning<\/a> by defining what you need to produce based on demand, how much to make based on minimum order quantities and when to begin manufacturing based on weeks of supply.<\/p>\n

Using a production order also helps manufacturers to optimize their expenses and improve budgeting. By planning and knowing their inventory, manufacturers can improve the accuracy of their orders and reduce production costs. Using production orders, and archiving old ones, allows you to reference previous inventory costs to see what you spent in the past<\/a> and make sure your future orders are within budget.<\/p>\n

All this helps manufacturers streamline their production management<\/a> process to increase their revenue and that’ll drive growth. With more revenue comes more working capital that allows manufacturers to invest in new machinery, software or expansion of their production lines with new products. This extra capital can also inform your promotional campaigns and improve customer experience.<\/p>\n

\n\t
\n\t\t\"\"\t<\/div>

Get your free<\/p>\n

Production Schedule Template<\/h3>\n

\n\tUse this free Production Schedule Template for Excel to manage your projects better.<\/p>\n\t\t