production order vs planned order?

[Former Member]

hi

can anyone describe the difference between planned order and production order.

regards

sanjay

[Former Member]

thanks for reply

[former_member184655]

Dear Sanjay,

Planned order can be created manually through MD11 or automatically through MRP run taken using

MD01/MD02.

It's a request created in the planning run for a plant to trigger the procurement of a plant material for a

certain quantity for a specific date.

Production Order:

A production order defines which material is to be processed, at which location, at what time and how much work is required. It also defines which resources are to be used and how the order costs are to be settled.

As soon as a planned order or other request is generated from material requirements planning, the information is passed on to shop floor control; the order-relevant data is also added to ensure complete order processing.

Production orders are used to control production within a company and also to control cost accounting.

Features

You can use the production order to specify:

· What is to be produced

· When production is to take place

· Which capacity is to process the order

· How much production costs

Production order can be created manually using CO01 with material,CO07 without material,

CO40/CO41 - Coversion of planned orders into production order.

Regards

Mangalraj.S

[Former Member]

Hi check it out here,

Planned orders are results of running MRP. Shortages of materials that are set to internal procurement will create planned orders, which can be converted into production orders. Production orders are like "hard copies", they cannot be adjusted by MRP anymore. Well that's for a discrete environment, not sure about repetitive manufacturing.

One we firm the planned order changes will be not reflected in the subsequent MRP, correct. e.g. BOM change. New components will not be recommended for firm planned order.

I'm assuming when you ask about when to use planned vs production orders you are asking when to use Repetitive Mfg (with PE planned orders) vs Discrete Mfg (with production orders). We use both and while we're not perfect in our approach yet we are gaining a better appreciation for the two.

For repetitive, the planning is much simpler, you basically run MRP against your demand and you get planned orders. You can change and firm these manually or you can use time fence strategies, and you can have multiple operations running through multiple work centres. They are very simple to maintain and use. Repetitive is normally run against shorter lead time build, where we don't need a high level of control. If we have the option we go with Repetitive.

Where we want a better level of control we go with discrete. Planned (LA) orders are created from a run of MRP against your demand. These are converted to production orders, released, and processed. There is a lot more control (and work) with this order type than we see with Repetitive planned orders. We can link documents to the order, we can change the routing and the BOM on the order, and we have better visibility of the individual orders while they are in manufacturing. Costing is against the order as opposed to Repetitive where the costs (and variances) are seen against the cost collector. After everything is complete, you still have a record against the build. The order stays intact, though it may be complete and closed, you still the retain history.

[former_member199502]

Hi,

Refer this link it will answer ur question

http://www.sap-basis-abap.com/pp/difference-between-planned-prod-orders.htm