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In this demo, a production order is created using the SI P easy access menu or by entering transaction code CO40. The tutorial begins by navigating through the logistics menu, expanding the production and shop floor control menus, followed by the order menu, and finally selecting 'create' within that menu. From there, the option to create a production order from a planned order is chosen. The production order creation screen appears, where a previously created planned order number (3:03) is entered. Next, the order type is specified by clicking the search icon, which presents a list of available order types for selection.