Implementing a Manufacturing Business in Odoo 11 Enterprise
Learn how to implement Odoo 11's powerful MRP application using real world case examples and processes. By the end of this video you will be comfortable creating products, bill of materials, work orders, routings, and more. Loaded with tips and examples on implementing Odoo manufacturing to solve real business requirements.
How do I properly implement Odoo's Manufacturing Application?
Tips and tricks to properly configuring Odoo Manufacturing
If you are attempting to implement, configure or otherwise put into production Odoo's manufacturing application you have come to the right place. Of all the applications available in Odoo, the MRP application is perhaps the most complex in terms of business processes. Below is a beginners guide to understanding the Odoo MRP application. In the related course above, we walk through all of the processes from a real-world business perspective. Unlike many MRP videos that simply walks you through the features of the application, this video course teaches the MRP application from a business view point. Read on to find out how you can successfully implement an Odoo MRP system.
First Steps in Configuring an MRP system
With any ERP/MRP system, not just with Odoo, it is important that you thoroughly understand the application. Inside and Out. You should be prepared to spend a great deal of time testing various scenarios and configurations. In my 30 years of experience I have been involved in hundreds of MRP implementations ranging from the extremely simple to the extremely complex. Here are some tips and tricks to creating a successful implementation plan.
Consider Hiring Professional ERP/MRP consultants: Many people who have never had real-world experience implementing financial accounting systems or MRP/ERP applications attempt to take a system into production . Most often this ends up poorly. How you configure your financial accounting, stock locations, work centers, bill of materials, and other critical settings in the application is critical to a successful MRP implementation. You don't have to have someone do the entire setup for you.
Take this course and others on Odoo MRP: While this statement may seem to contradict the first it is important you understand as much as possible about the Odoo MRP application so you can communicate efficiently and effectively with an experienced Odoo integrator. If you are new to MRP this course is designed to give you that basic understanding of MRP basics such as bill of material configuration, basic workcenter setup and routings, processing manufacturing orders, and analyzing inventory. When you have additional questions we can assist you in finding an Odoo professional to look at your specific MRP requirements.
Begin with simple processes and product production: Begin by picking out a single product that is simple and easy for the entire team to understand the process. Don't attempt to try and solve all the production challenges when you first start. It is tempting to want to try and solve the toughest problems first. Instead use the 80/20 rule to focus on the most common processes and leave the one-offs and irregular processes until later.
Never ever expect to take a system live from your test setups:. One of the biggest mistakes I've seen in over 30 years of complex ERP/MRP implementations is many inexperienced integrators treat a test/experimental setup as if it will at some point in time become the live system. They see the time invested in setting up all the products, bill of materials, work centers, routings, etc as time lost if they are not able to turn that instance into a production instance. NEVER DO THIS! Never attempt to take a test/experimental instance into production. Once you get all your testing done and you know EXACTLY how you wish your specific production system to be configured do you then start an entire new database instance and methodology configure your setup. Do yourself another favor and document everything along the way you can about the process and any irregularities or important things you learned going from a test/experiment configuration to a staging configuration you can then push into production.
Configuring Product Bill of Materials in Odoo Manufacturing
One of the first concepts you must understand when implementing a manufacturing system is a bill of materials.
What is a Bill of Materials? A bill of materials, often refereed to as BOMS (pronounced as bombs) is much like a list of ingredients for a cooking recipe. It tells the exact raw products or sub-assemblies and the quantities required to produce a finished product. In Odoo you can create multiple BOM"s and attach them to any product. When a manufacturing order is created the bill of materials is processed and those raw products are removed from inventory.
Creating a Bill of Materials in Odoo. It is very simple to create a bill of materials in Odoo. First of course you have to install the MRP application. Then you can go to any product and click the Bill of Materials button in the top right hand corner. From here you can create a bill of materials and specify all the products and their quantities that are required for the finished product. Furthermore, you can create multiple bill of materials for a given finished product. This allows great flexibility in manufacturing. In this video course you will see step by step how to configure a bill of materials in Odoo and then use that bill of materials to create a manufacturing work order.
Creating a Manufacturing Order in Odoo Manufacturing
After we review how to create a bill of materials we are then ready to manually create manufacturing orders to produce finished products.
What is a manufacturing order? A manufacturing order is a document to request the production of a given number of products. The bill of materials is used to determine what products are consumed and remove them from inventory. When you create a manufacturing order you specify. In most production systems manufacturing orders will be produced automatically through other applications and processes in the system. For example, you may use a minimum qty rule in inventory control to trigger a manufacturing order any time you have less than 100 of the product in stock. Another example is using a make to order routing in sales to automatically create a manufacturing order in the MRP application.
Creating a manufacturing order in Odoo. Creating a manufacturing order in Odoo is easy. Much like creating a sales order is in the sales management system. When you create the manufacturing order you must specify the product you wish to manufacture. Each manufacturing order produces any number of a single product. So you could manufacture 100 towel holders in one manufacturing order but you can't manufacture 50 towel holders and 50 instruction booklets in the same manufacturing order. In this video tutorial we walk through all of the process and demonstrate how to use the manufacturing system from a functional perspective using real-world examples.
Setting up Work Centers
In this section we will discuss Odoo work centers and why you would want to use them to organize your manufacturing operations.
What are Work Centers? As we discussed earlier, a bill of materials is like the ingredients list in a recipe. It specifies the raw ingredients (products) and their quantities. What the bill of materials does not do is tell you specifics about production capacity. That is the purpose of Work Centers. They are used in Odoo to better manage and organize your manufacturing processes. They allow you to specify metrics that estimate the capacity to produce a given product. In our recipe anology, this is like specifying the number of servings and the size of the servings along with the estimated time it will take to finalize the recipe.
When would I want to use Work Centers? Typically you would want to use work centers if you want greater control and tracking of the time and resource personal it takes to produce a product. For example, with work centers you can easily track how many products you are producing an hour. You can determine efficiency and calibrate your MRP system over time to produce more accurate estimates. Without work centers you will know what is built but you won't have details into the process and the time and human resources required to produce the product.
Routings and Work Orders
Work centers are not much use without routings and work orders. Here we will discuss how to use routings and work orders to complete a basic manufacturing implementation.
What are Routings? Routings are an Odoo document you create that specifies which operations and work centers will be used to produce a given bill of materials. Bill of Materials specify what raw products and quantities you need while routings specify what work centers and the amount of time each of them need to produce the product. Within routings you can also specify the amount of time required for each operation. In our real-world video example we walk through how to define these operations and use routings with bill of materials. Once you thoroughly understand routings you will be on your way to configuring a basic MRP workflow.
What are Work Orders? Now that we understand the basics of routings and work centers we can learn how work orders fits into the manufacturing operation. Work orders are automatically created when a manufacturing order is verified that has a routing attached. These work order documents are then used by your team members to manage and organize the production operations. This can be done in real-time if appropriate for your operation. If this sounds complicated, don't worry... the video course goes step-by-step through each of these processes and will give you the confidence to get your own MRP system up and running in no time.
Working with an Odoo Manufacturing Consultant
Successfully integrating an MRP system into a company can dramatically improve operational efficiency, controls, and management. I created this course after nearly 30 years of experience in developing and implementing ERP/MRP systems in a variety of industries. It is a great tutorial for those who wish to get a real-world look at how to configure a basic MRP application. What this course can't do however is replace the experience of an Odoo consultant that has experience implementing manufacturing systems. As mentioned in our tip section it is important that you learn as much as you can about the MRP application because you know your company better than anyone. This will allow you to communicate effectively with an MRP consultant and together you can work to successfully build out an Odoo manufacturing application that works for you.
INSTRUCTOR: Greg Moss, founder of OdooClass.com