What is the pancreas and what does it do? The pancreas is an organ that sits just beneath the stomach and the first part of the small intestine. It is responsible for producing enzymes that aid in digestion and is also the source of insulin production. Pancreatitis refers to an inflammation of this organ. It can happen to dogs and cats of any age, breed, or sex. If severe, pancreatitis can lead to irreversible changes in the pancreas and impaired function long term.