NetSuite Production Scheduling & Work Orders (2026)

NetSuite manufacturing: production management inside the ERP

Manufacturing in NetSuite revolves around work orders — the records that tell the production floor what to build, how many, and when. Work orders consume raw materials, apply labor and overhead through routing operations, and produce finished goods that enter inventory.

TL;DR: NetSuite production scheduling uses work orders with bills of materials and manufacturing routing to manage shop floor operations. It supports make-to-order, make-to-stock, and mixed-mode manufacturing with capacity planning, WIP tracking, and the optional Advanced Manufacturing module for complex multi-step production.

For discrete and process manufacturers on NetSuite, production scheduling means managing the flow of work orders through the shop floor: sequencing operations, allocating resources, tracking progress, and ensuring finished goods are available when sales orders need them.

---

Work orders

The work order is the central production record. It specifies what to build (the assembly item), how many (quantity), when it's needed (due date), and what goes into it (the bill of materials).

Creating work orders. Work orders can be created manually, generated from sales orders (make-to-order), or created by NetSuite's demand planning when inventory falls below reorder points (make-to-stock). Each method serves a different manufacturing strategy.

Bill of materials (BOM). The BOM defines the component items and quantities needed to produce one unit of the assembly. A work order for 100 units multiplies the BOM quantities by 100 to calculate total material requirements. NetSuite checks component availability and flags shortages.

Work order statuses track the lifecycle: Planned → Released → In Process → Built. A planned work order is scheduled but not yet on the floor. Released means materials are allocated and production can begin. In Process means production has started. Built means the finished goods have been received into inventory.

Assembly builds vs work orders

NetSuite offers two approaches to production:

Assembly builds are the simpler option — a single-step process that consumes components and produces the assembly in one transaction. No routing, no operation tracking. Suitable for simple assembly operations.

Work orders with routing support multi-step production processes. Each routing step (operation) has a work center, estimated time, and cost rate. Production progress tracks at the operation level, and WIP (work in process) accumulates as operations complete.

---

Manufacturing routing

Routing defines the sequence of operations required to produce an item. Each operation specifies:

• Work center — the machine, station, or department where the operation occurs
• Setup time — time to prepare the work center for this operation
• Run time — time per unit (or per batch) to perform the operation
• Labor cost rate — the hourly rate applied to this operation
• Overhead rate — applied overhead per hour or per unit

Example routing for a machined component:

1. Cut raw material (Saw station, 5 min setup, 2 min/unit)
2. Machine to spec (CNC station, 15 min setup, 8 min/unit)
3. Deburr and finish (Finishing station, 0 min setup, 3 min/unit)
4. Quality inspection (QC station, 0 min setup, 2 min/unit)

The routing drives production scheduling — the system knows how long each operation takes and can sequence work orders across work centers.

---

Capacity planning

Capacity planning answers: can we produce what we've committed to sell, with the resources we have, in the timeframe required?

Work center capacity defines how many hours each work center is available per day/week. A CNC machine running one shift is available 8 hours/day. Two shifts is 16 hours. NetSuite tracks scheduled load against available capacity.

Capacity load reports show how much of each work center's capacity is consumed by planned and released work orders. When a work center is over-capacity, you need to either adjust the schedule, add shifts, outsource operations, or renegotiate delivery dates.

Rough-cut capacity planning gives a high-level view: given the current backlog and production plan, where are the bottlenecks? This is planning-level analysis that informs hiring, equipment, and scheduling decisions.

---

WIP tracking

Work in process (WIP) represents the value of partially completed production. Materials consumed, labor applied, and overhead allocated all accumulate in WIP as a work order progresses through its operations.

WIP accounting in NetSuite:

• Component issues debit WIP and credit raw materials inventory
• Labor and overhead entries debit WIP
• Completed assembly receipt credits WIP and debits finished goods inventory
• If WIP balance isn't zero after completion, the variance posts to a production variance account

Accurate WIP tracking requires timely operation completions. If the production floor completes operations without recording them in NetSuite, the WIP balance doesn't reflect reality. This is an operational discipline issue, not a system issue.

---

Demand-driven production

Make-to-order

Work orders created directly from sales orders. The customer orders 500 units, and a work order generates for 500 units linked to that sales order. Completion of the work order fulfills the sales order. This approach minimizes finished goods inventory but requires production lead times that customers will accept.

Make-to-stock

Production planned against forecasted demand rather than actual orders. NetSuite's demand planning and reorder point features trigger work orders when projected inventory falls below the safety stock level. This approach requires inventory investment but enables faster delivery.

Mixed mode

Most manufacturers use both strategies. Standard products are make-to-stock with safety stock levels. Custom or high-value items are make-to-order. NetSuite supports both simultaneously, with different planning rules per item.

---

Advanced Manufacturing (SuiteApp)

NetSuite's Advanced Manufacturing module adds capabilities beyond the standard work order:

• Shop floor control with barcode scanning for operation starts/completions
• Outside processing for operations sent to subcontractors
• Quality management integration with inspection at production stages
• Phantom assemblies for sub-assemblies that don't stock independently

For manufacturers with complex multi-level BOMs, multiple routing options per item, or significant shop floor tracking requirements, Advanced Manufacturing is worth evaluating.

---

The bottom line

NetSuite's production capabilities serve light-to-medium manufacturing complexity well. Simple assembly operations work with assembly builds. Multi-step production with routing, capacity planning, and WIP tracking handles most discrete manufacturing scenarios.

For very complex manufacturing — process manufacturing with batch tracking, extensive shop floor automation integration, or advanced scheduling with constraint-based optimization — evaluate whether NetSuite's capabilities meet your requirements or whether a specialized MES (Manufacturing Execution System) alongside NetSuite is the better architecture.

Frequently Asked Questions

Does NetSuite support production scheduling for manufacturing?expand_more

What is the difference between assembly builds and work orders in NetSuite?expand_more

Does NetSuite support make-to-order and make-to-stock manufacturing?expand_more

What is NetSuite Advanced Manufacturing?expand_more

How does WIP tracking work in NetSuite?expand_more