A Quick Look at Production Order in SAP:

What Is a Production Order?

A Production Order in SAP is a formal instruction to manufacture a specific quantity of materials within a set timeframe. It contains all the necessary data for executing the production process, from input materials to scheduling details, making it central to manufacturing operations in SAP ERP.

Technical Overview

• Entity Type: Business Object
• Software Component Version: ESM ERP 606
• Technical Name: ProductionOrder
• Object Category: Business Process Object

Business Context and Use

Production orders are essential in managing and executing manufacturing activities. Within a production environment, the need for raw materials and components is ongoing. SAP models production using operations and activities that may be executed sequentially, in parallel, or as alternatives.

With the Production Order business object, organizations can:

• Execute and control production processes in the plant
• Fulfill ongoing material requirements
• Define inputs and resources needed to produce materials
• Automatically calculate quantities, activity durations, and capacity based on output
• Schedule production using basic dates as soon as the order is created

Note: The system’s default values are based on calculated inputs, which can be adjusted as needed.

Key Features and Integration

One of the strengths of SAP Production Orders lies in their ability to integrate seamlessly with Manufacturing Execution Systems (MES). Key features include:

• Automated Scheduling: SAP enables automatic scheduling at the order creation stage, which helps manage production flow and resource availability.
• Flexible Rescheduling: Production planners can reschedule entire orders or individual operations without disrupting overall supply planning.
• Execution-Level Planning: Changes made during execution do not impact planned dates, allowing for flexibility and avoiding production delays.
• Order Completion and Reorganization: Production orders can be closed or restructured based on the actual production outcomes and confirmed quantities.

Many manufacturers adopt ISA-95 standards for integration between SAP ERP and MES systems, ensuring real-time data exchange and enabling faster, data-driven decisions on the shop floor.

Industry-Specific Use

In process industries, the term Production Order may be referred to as a Process Order. SAP supports both discrete and process manufacturing environments through modules like PP-SFC (Production Order) and PP-PI (Production Planning for Process Industries).

Implementation Prerequisites

To use Production Orders effectively in SAP, ensure that:

• You have implemented the PP-SFC (Shop Floor Control) or PP-PI (Process Industries) components.
• You have configured the necessary master data, including bill of materials (BOM), routings, and work centers.

Additional Resources

For a deeper dive into configuration and execution, visit the SAP Help Portal and navigate to:
SAP ERP → ERP Central Component → Logistics → Production Planning and Control (PP)