ODOO Standard Manufacturing comes with basic functionalities, what only performs is stock movements, that is, it consumes materials or raw materials and generates new stock of manufactured products due to the transformation of materials or raw materials.
This means that ODOO is a blank canvas for any company that needs to adapt its manufacturing processes to software, since with some modules and a little development it can be adapted.
And this is basically the only advantage of ODOO Production.
The rest will have to work for the consultant or partner.
What do we need in a Manufacturing module of an ERP like ODOO?
Initially moving stocks, ODOO does this correctly.
Even if movements to subcontracted companies are required to carry out certain manufacturing processes.
Of course, keep track of lots or serial numbers if the company requires it.
And allow managing the optimization of the supply of raw materials or materials for effective purchasing management. Lean Manufacturing is still in vogue.
You also need to valuate the stock that has been generated, this does not do it very well, here you have to make some changes or developments, unless you use automatic inventory valuation accounting.
Obviously correctly calculate the production costs, not only for the valuation of the inventory generated in each manufacturing order, but to know the margins generated by the products sold derived from the manufacture of the products. Application of the costing method (Direct costing) or if we use the operations function we can add the standard cost machine – hour to also calculate the Indirect Costs of Production.
ODOO does not calculate the cost per hour – machine, this must be previously calculated and incorporated into ODOO.
All ODOO does is record the number of hours that a machine or an operation has been running.
In addition to the calculation of costs, and the valuation of stocks.
An important issue in production is the control of waste (waste or scrap), the control of the good quantities produced with respect to the planned ones and the control of unplanned stops. If we know the theoretical quantity at which a machine can work and its capacity, we can calculate the OEE KPI or ratio, which measures the operating effectiveness of each machine.
This ratio or KPI of the OEE is fundamental in manufacturing since it allows us to know if we are using a machine effectively or not, that is, to know what is the percentage of performance that we are obtaining from it.
It must be taken into account that the performance of the machines affects the indirect unit manufacturing cost, these indirect costs have a fixed behavior at the total level, but their behavior at the unit level is variable, which means that the higher the manufacturing volume, the lower it will be the unit manufacturing overhead cost.
On the other hand, the operations, in addition to allowing the recording of working hours of a machine or a process, serve as a technical guide on the processes to be carried out by the users.
Additionally, the Quality Control module can be used to check the validity of manufactured products or production operations and obtain reports to improve processes that reduce failures, deviations, waste…
The manufacturing area in any company is one of the most complex to implement in an ERP, in ODOO it is no exception, but if it is configured, developed and managed correctly, you can get a lot out of the information it provides.
Good management of resources and manufacturing processes allow cost reductions, reductions in delivery times, reduction of waste, increase in production capacity using the same available resources…
That is, continuous improvement methodologies or as many companies also name them KAIZEN or LEAN MANUFACTURING.
More information about ERP ODOO
- ODOO Balanced Scorecard KPIs analysis and control
- ERP ODOO Benefits and Advantages
- Is ERP ODOO a substitute or a complement to Excel spreadsheets? Take a look ODOO 14
- Planning Purchase Orders Excel report with ODOO data
- 7 keys to successfully implement ERP ODOO
- Reports XLS Excel ODOO
- How to forecast Purchase Orders with ODOO
- How to Control Costs and Analyze margins with ODOO
- Control ODOO Commissions with Excel
- Planning activities CRM ODOO
- ODOO Analysis Margins and Costs of Sales
- Advantages ODOO Manufacturing
- What is an ODOO Functional Consultant?
Industrial company financial manager
Dani is helping us to use ODOO more efficiently, we are rapidly leveling up with the ERP. It is also preparing us very useful analysis and control reports and outstanding management tools. Always available by phone or email, willing to help and collaborate in everything that is proposed. Very professional and fast work. A key service for our company.
Controller ODOO ERP