A work center is a physical or logical production area used as a unit for scheduling and routing operations. It is usually defined as being either labor or machine-constrained, and while it may contain multiple machines or personnel they are considered identical in terms of the capability to process products assigned to that center.

A work center may perform multiple operations, but capacity requirements are usually tracked only at the total work center level. Its definitions can be flexible based on the process and reporting capabilities and requirements of the organization.

Uses of data in work center

Data in work centre is used for 

  • Scheduling: Formulas entered in the work center helps to calculate the duration of an operation
  • Costing: The formulas entered in the work center allows you to calculate the costs of an operation
  • Capacity planning: Formulas for calculating capacity requirements and availability of capacity are stored in the work center

Get more definitions about work center and other ERP related terms here.


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