What is the Difference between Production Order and Process Order in SAP PP?

In SAP PP, the production order and process order are two key concepts used for managing manufacturing processes.

Focus Keyword: SAP PP Production Order vs. Process Order

Production Order:

• A production order is used for discrete manufacturing processes where individual products are produced.
• It is used for production planning and control, tracking materials, resources, and costs for manufacturing a specific product.
• Production orders are typically used in industries such as automotive, electronics, and machinery manufacturing.

Process Order:

• A process order is used for continuous or repetitive manufacturing processes where products are produced in a continuous flow.
• It is used for managing complex production processes, involving multiple stages and operations.
• Process orders are commonly used in industries such as chemical, pharmaceutical, and food processing.

While both production orders and process orders are used in SAP PP for manufacturing operations, the key difference lies in the type of manufacturing processes they are designed for.

By understanding the distinctions between production order and process order in SAP PP, organizations can effectively streamline their manufacturing operations and improve overall efficiency.