Work Order Management
Quick facts
| Category | Production task generation and tracking |
|---|---|
| Used by | Manufacturing, medical devices, pharmaceuticals, aerospace, automotive and other production-based industries |
| Also called | WO |
| Related standards | None specific |
| Related processes | Bill of materials, shop floor management, job management and job costing, MRP |
| Semantic match | work order management, production order scheduling, work order tracking, shop floor work orders |
What is Work Order Management?
A work order is a specific production instruction that defines what needs to be built, in what quantity, using which materials and labor, and in what sequence of operations. Work order management covers generating these orders, scheduling them across available capacity, and tracking their progress through completion.
Work orders are typically generated from a product's bill of materials and routing, ensuring that production instructions reflect the current approved design and process. Once released to the shop floor, a work order becomes the record against which labor, material consumption and progress are tracked.
Work order management also handles prioritization and scheduling, allocating limited capacity, whether machine time, labor or both, across multiple concurrent work orders to meet delivery commitments as efficiently as possible.
Why is Work Order Management important?
Clear, well-managed work orders give the shop floor unambiguous instructions, reducing the risk of production errors caused by outdated or incomplete information about what to build and how.
Tracking work order status in real time gives production managers visibility into what is on schedule and what is falling behind, allowing for proactive intervention rather than discovering delays only when a delivery date is missed.
Because work orders connect directly to bills of materials and routing, they also support accurate cost tracking and traceability, tying labor and material consumption to a specific, identifiable production record.
How does Work Order Management work?
A typical work order management process includes:
- Generation. Create a work order based on a sales order, forecast or production plan, using the relevant BOM and routing.
- Scheduling. Assign the work order to a work center or timeframe based on capacity and priority.
- Release. Release the work order to the shop floor for execution.
- Execution tracking. Record labor, material consumption and progress against the work order.
- Completion. Close the work order once production is finished and finished goods are recorded.
- Analysis. Compare planned versus actual time, cost and quantities for the completed work order.
Work Order vs. Purchase Order
| Comparison | Work Order | Purchase Order |
|---|---|---|
| Purpose | Instructs internal production of an item | Requests materials or services from an external supplier |
| Tracked against | Labor, machine time and material consumption | Supplier delivery and invoice |
Real-world examples of Work Order Management
A manufacturer automatically generates a work order from an approved sales order, pulling the correct bill of materials and routing so the shop floor has clear, current instructions for the build.
A contract manufacturer schedules multiple work orders across different work centers, reallocating capacity when one order falls behind schedule to protect an upcoming delivery commitment.
An aerospace supplier tracks actual labor and material consumption against a work order in real time, comparing it to the planned estimate to identify a cost variance worth investigating.
Regulations and standards related to Work Order Management
Work order management is not itself a regulatory requirement, but well-documented, traceable work orders support broader traceability and process control expectations found in ISO 9001, AS9100 and similar regulated industry standards.
How QT9 helps with Work Order Management
QT9 ERP work order management capabilities
- Generate work orders directly from approved BOMs and sales orders.
- Schedule and assign work orders to specific work centers or employees.
- Track labor, material consumption and progress in real time from the shop floor.
- Automatically generate work orders and purchase orders based on real-time demand.
- Compare planned versus actual costs and quantities upon completion.
- Maintain full traceability connecting work orders to BOMs, routing and inventory.
See QT9 Software in Action
Discover how QT9 Software helps manufacturers improve efficiency, strengthen compliance and connect quality management and ERP processes within one integrated platform.
Common mistakes with Work Order Management
Common mistakes include generating work orders from an outdated bill of materials or routing, leading production to build against instructions that no longer reflect the current approved design.
Other problems include failing to track actual labor and material consumption consistently, which undermines both cost analysis and the traceability records that regulated industries often require.
Frequently asked questions
Related quality management terms
Related content
Ready to Transform Your Business?
See how QT9 Software helps manufacturers simplify operations, improve traceability and drive continuous improvement with integrated quality management and ERP software.