The overall flow of production is
1) Create Production order
2) Release production order, system creates Transfer Requirement (standard SAP MvT319)
3) Create Transfer order against the Transfer Requirement
4) Transfer the stock from physical bin to Production supply area by confirming the transfer order
5) Perform Consumption posting(261)
By activating the production interface for WM you need to perform the step 3 and 4 which will put more system control (whether you should use this or not is based on your client requirement but if WM is active then recommended approach is to use the Production interface to transfer the stock to Line side)