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Purchase orders, Work orders, Work breakdown structures

Former Member
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Hi,

I am not into MM background,can you please give me an detail idea what is Purchase orders, Work orders, Work breakdown structures.

Thanks

Sud

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Answers (3)

Answers (3)

Former Member
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former_member472711
Active Participant
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Purchase order (PO)

The buying entity’s request or instruction to a vendor (external supplier) to supply certain materials or render/perform certain services/works, formalizing a purchase transaction.

Work Order

This term is used in many places.. In the Procution Planning module, Prodcution orders for assembly is a work order.

In the Plant Maitenance module, internal work orders are used for Maintenance / Repairs / Installation, modification or removal of equipments

Work Breakdwon Structure

The work breakdown structure (WBS) is a model of the project that organizes project tasks into a hierarchy.

- It is the functional basis for further planning steps in a project, for example, for process planning, cost planning, scheduling, capacity planning or costing, as well as project control.

- It gives you a clear picture of the project and facilitates the coordination and implementation of the project from a management standpoint.

- It shows the work involved in a project.

Former Member
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Please read the first post in this forum for details.

Purchase Order: A legal document to another entity requesting for supply of goods / services for specific terms and conditions.

Work Order: The exact definition varies in different organizations. This is typically a PO for services to be done within the company premises (Work inside the company - hence work order).

I have also seen it being used for PO for maintenance orders (for materials and services)

Work Breakdown Structure: As the name suggests, it is a hierarchy of work broken down... for e.g. in a project, you have Erection of Building as 1 level, below it, you have Foundation and Superstructure as 2nd level. Foundation can be broken down into more specific activities... each of these (level 1 to level n) is a work breakdown structure.

Hope this helps,

Lakshman