The GENERATE command has three processing phases:

1. Target zone analysis: SMP/E analyzes the target zone to determine which modules, macros, source, load modules, data elements, hierarchical file system elements, and program elements must be created.
2. JCL creation: SMP/E constructs the JCL statements used to create the jobs to build the target libraries.
3. Job generation: SMP/E constructs the jobs necessary to create the target libraries.