Transforming your manufacturing business with Odoo MRP

Leading a manufacturing company involves many critical decisions. Unlike other industries, manufacturing businesses can be extremely expansive and diverse. This makes it imperative for business leaders to have technologies that enable them to plan, record, track, and control every aspect of their business. With Odoo manufacturing or MRP, you can have quality assurance, maintenance, and product lifecycle fully integrated into one system. It allows you to accurately capture data in real-time from your workforce and equipment using the API. Odoo MRP can also customize your manufacturing processes in alignment with your company-specific business processes using a work center and other routing concepts.

So, let’s have a look at some ways in which Odoo MRP can help you stay ahead of the curve.

Product manufacturing order

Here’s how you can create a product by manufacturing an order in Odoo MRP. There are usually two ways to do this. The first is simply without routing & work center and the other is by customizing the work order, and setting up a work center & routing. Here’s the first one:

Go to manufacturing → Operations → Manufacturing orders

After this, click on the ‘create’ button and fill in the below categories:

Product: Select a product to manufacture.

Quantity to Produce: Add the total quantity to produce.

Bill of Material: Add bill of material.

Deadline: Add deadline for production of the order.

Plan From: Add Planned date for the production of the order.

Components: Raw Material for production of the product. This Comes from the Bill of Material.

After adding all the details click on the ‘mark as to-do’ button for processing the order.

Click on the “Check Availability” button and you will be able to see the quantity available in reserve.

Once all quantities are available click on the ‘Produce’ button.

Once done, click on ‘mark as done’.

Once this is done, your production process is completed.

Now let’s have a look at another way of creating manufacturing orders in Odoo MRP. This time, we do it by customizing the work order, setting up the work center & routing. This is the advanced method for complex production where work center, routing, and bill of materials are used.

First, go to Manufacturing → Configuration → Settings.

After this, we need to enable the work order in the manufacturing settings.

After enabling work orders, we move to setting up the work centers and routings.

1. Work Center.

To create a work center, click on work centers in the settings or go to manufacturing → master data → work center → create.

Create work centers and click on the “Save” button.

2. Routings.

Routes are the paths through which the production of each product passes. Production is not a simple process, it contains a lot of work centers, routes, and so on. In this step, we set the routes for manufacturing.

For creating routings we can click on routings in the settings or Manufacturing → Master data → Routings → Create.

Fill in all the details, add the work centers for this route, and click on the “Save” button.  

Manage production

We can start processing work orders in 3 ways.

1) By clicking on the work order from the manufacturing order.

2) Clicking on any of the work orders by following this Manufacturing → Operation → Work Orders.

3) You can open any of the ongoing work orders from the work center overview.

Path: Manufacturing → Overview → Click on the Work Orders button.

You can see all the work orders.
One can get hold of each work order and complete the production. The production of the product will go through the route that we set for its production.

Click on ‘process’ to start production. You will then enter the production interface.

Click on ‘validate’ after completing each stage.

When the entire production is finished click on ‘mark as done’ or ‘mark as done and close MO’. After this, the production is completed.

When we complete each production, the product will be added to the inventory. The inventory will be updated automatically.

Bill of Material

Bill of materials, BOM are the components we add for the production of a particular product. Every product is manufactured with unique raw materials.
Therefore, for the manufacturing of a product, we need to take the corresponding bill of materials. Let’s see how this is done.

Go to Manufacturing → Master Data → Bill Of Material → Create.

Here we shall see how to create a BOM and how to add the components. Product: Add a product for which you need to create a Bill Of Materials.

Product Variants:  Add variants if needed.

Quantity: Add quantity.

Routing: Select the Route of production for the product.

Reference: Add Reference.

BOM TYPE: Select the type of the BOM as required for the production of the product either ‘Manufacture this product’ or ‘Kit’.

You can add the raw materials required for the product in the Component under the Components tab. Select the work center operations for the raw material in Consumed in Operations.

If there are by-products in your manufacturing order, you will need to enable them in manufacturing settings.

Once the by-products are enabled you can see a by-products tab next to the component.

Add the products, and quantity & select the operations. Under by-product enter the details (if there were any to produce the product).

After adding all the details click on the ‘save’ button.

Unbuild Orders
Unbuilding is yet another innovative feature in the Odoo 17 manufacturing app. Here we can unbuild a manufactured product in case of damage caused to any of its parts. This way we won’t be scrapping the entire product and we can unbuild the product to utilize all the good components of it.

 To do this, go to manufacturing → operation → unbuild orders → create.

 

Fill the necessary fields and click the ‘unbuild’ button.

Scrap Orders

The Odoo MRP app allows you to scrap the product at any stage of the production line. When you click on scrap you can immediately transfer the product to scrap and see it in the scrap order tab.

We can also create scrap manually by going to manufacturing → operations → scrap orders → create

Here fill up the below details

Product: Select a product that is scrapped.

Quantity: Add quantity.

Source Location:  Add the location from where the product was scrapped.

Scrap Location: Select the scrapped location.

Once all the fields have been filled you can click on the ‘validate’ button.

Planning, processing, and costing are the foundation stones of a robust manufacturing business. Odoo MRP can make this process simpler for manufacturers across. With more than 200 developers across the globe with vast experience in Odoo apps, we at Bista Solutions understand your unique manufacturing needs. Reach out to us and schedule your free consultation now!