According to Mavenvista, a mid-sized manufacturing unit in India could lose over ₹10 lakhs per day during downtime due to late arrival of raw materials in inventory.
Another report from VPIC Group states that quality issues in final products result in losses averaging around 15-20% of sales.
Manufacturing looks smooth from afar. However, there is chaos all around the shop floor, longer downtimes due to a shortage of inventory, mistakes in bills of materials, work orders lost, and whatnot.
To fix this chaos, smart manufacturers use the Odoo ERP Manufacturing Module. It is an open ERP system that helps streamline production processes end-to-end.
To know more about it, read this blog till the end, as in this blog, we will cover the Odoo Manufacturing module, how it works, its top features, benefits of using Odoo ERP for manufacturing, and more.
An Overview of the Odoo Manufacturing Module
In Odoo ERP, there is a Manufacturing Module that is designed to streamline and manage production processes.
It has numerous features, which you will learn about later in this blog, that help in planning, executing, and monitoring work centers, bills of materials, manufacturing orders, and more.
On top of this, Odoo manufacturing can also be integrated with other apps like Accounting, Sales, and Purchases, creating an interconnected system.
This brings in transparency, eliminates errors, reduces delays, and improves coordination between the departments.
How Does the Odoo Manufacturing Module Work?
The Odoo Manufacturing Module is used to manage the complete production process. Here is how the full workflow looks.
- Create the Product and Bill of Materials (BoM)
The products needs to be manufactured are defined. Along with that, Bills of Materials (BoMs) are also created.
- Plan Production
Production managers use the Manufacturing module to create a Manufacturing Order (MO) based on the demand for the products, their sales forecasts, or the inventory levels. Using the same module, production is also scheduled to work centers that are available.
- Check Raw Material Availability
Before production begins, all the required raw materials are checked to ensure that they are available in stock. A feature in the module helps with that. If something is out of stock, it informs the concerned team.
- Work Orders Generated
The module divides the Manufacturing Order into smaller Work Orders. Then, each is assigned to a specific work center or production team.
- Start Manufacturing
Operators begin the production. Throughout the process, the Odoo ERP Manufacturing module is used to track progress in real time, monitor production status, and identify bottlenecks.
- Perform Quality Inspections
During and after the manufacturing process, quality checks are carried out. The Manufacturing module in Odoo is used to detect issues and ensure that finished products meet the standards.
- Complete Production
Once production is finished, Odoo Manufacturing records the completed quantity, updates the Manufacturing Order, and marks the production as complete.
- Update Inventory Automatically
Simultaneously, the system updates the inventory levels, deducts the consumed raw materials, and adds finished goods to inventory.
- Analyze Manufacturing Performance
Manufacturing can also use the Odoo ERP dashboard manufacturing to have insights into production costs, machine utilization, productivity, and more, and generate reports.
Top Features in Odoo Manufacturing Module
Odoo Manufacturing has various features that help manufacturers streamline their production. Let’s explore the Odoo Manufacturing module features in this section.
- Material Requirements Planning (MRP)
The Odoo MRP helps automatically plan production. It analyzes demand, inventory levels, and manufacturing capacity, and prepares plans for manufacturing.
Key Features
- Master Production Schedule (MPS)
- Demand forecasting
- Multi-level Bills of Materials (BoMs)
- Automated Manufacturing Orders (MOs)
- Procurement rule automation
- Capacity planning
This Manufacturing feature helps manufacturers to produce products on time and avoid delays and inventory shortages.
- Bill of Materials (BoM) Management
With this feature in Odoo ERP, manufacturers can create and manage bills of materials (BoM) for both simple and complex manufacturing processes.
Key Features
- Multi-level BoMs
- BoM version control
- Phantom BoMs (Kit BoMs)
- Alternative BoMs
- Component substitutions
- By-product configuration
- Manufacturing Orders (MO)
Odoo Manufacturing Module has a feature called Manufacturing Orders, or MO. This tells what to manufacture, quantity, what raw materials to use, completion date, and other details.
Key Features
- Automatic MO generation
- Production scheduling
- Material reservations
- Consumption tracking
- Partial production
- Backorder management
Manufacturers can also use the MO feature to monitor every production order.
- Work Centers & Routing
The other key Odoo manufacturing ERP features are Work Centers and Routing. This helps in defining the production workflows and assigning the production to appropriate work centers.
Key Features
- Work center configuration
- Routing management
- Cycle time estimation
- Operation sequencing
- Resource allocation
- Work center capacity planning
With this Odoo Manufacturing module feature, companies can tackle production bottlenecks and improve the utilization of the machines.
- Shop Floor & Work Order Management
This Odoo Manufacturing feature helps in tracking production in real-time and digitizing the shop floor operations.
Key Features:
- Digital work instructions
- Work Order execution
- Tablet-friendly shop floor interface
- Employee time tracking
- Production progress monitoring
- Barcode-enabled operations
Work Order and Shop Floor management feature also helps in reducing manual paperwork by digitizing everything and giving complete visibility into every production stage.
- Production Planning & Scheduling
Manufacturers and production managers can use this Odoo Manufacturing module feature to plan manufacturing activities.
Based on the resources available, delivery deadlines, and priorities, it helps in planning production efficiently and maximizing output.
Key Features
- Finite capacity scheduling
- Manufacturing calendar
- Workload balancing
- Production sequencing
- Resource planning
- Manufacturing lead time optimization
- Inventory & Warehouse Integration
With this feature, manufacturing can integrate inventory and warehouse with the Manufacturing module to ensure uninterrupted production and inventory operations.
Key Features
- Automatic stock reservations
- Raw material allocation
- Lot & serial number tracking
- Inventory replenishment
- Multi-warehouse support
- Barcode scanning
Real-time synchronization of manufacturing with inventory eliminates stock discrepancies.
- Quality Management
This Odoo ERP manufacturing feature helps in maintaining consistent product quality. Manufacturers use it to check the quality of the final product and match them with standards.
Key Features
- Quality Control Points (QCPs)
- In-process inspections
- Pass/Fail quality checks
- Non-conformance management
- Corrective actions
- Quality alerts
- Maintenance Management
With this Odoo feature, manufacturers can integrate preventive maintenance with production operations.
It helps in predicting issues in machines and preventing unexpected downtime. It also helps in extending the life of assets.
Key Features
- Preventive maintenance schedules
- Corrective maintenance requests
- Equipment monitoring
- Maintenance KPIs
- Downtime tracking
- Maintenance work orders
- Product Lifecycle Management (PLM)
With the PLM (Product Lifecycle Management) feature, manufacturers can manage engineering changes in the products.
They can also use it to make revisions in final products without disrupting the whole production.
Key Features
- Engineering Change Orders (ECOs)
- BoM revision control
- Version management
- Document management
- Approval workflows
- Change history tracking
- Manufacturing Costing & Analytics
This Odoo feature of manufacturing module helps in tracking production costs. It also generates detailed reports to show overall manufacturing performance and other insights.
Key Features
- Real-time production costing
- Labor cost tracking
- Machine cost allocation
- Material consumption analysis
- Overall Equipment Effectiveness (OEE) reporting
- Manufacturing dashboards
- Subcontracting & Outsourced Manufacturing
This feature plays a key role in managing production activities that are performed by third-party vendors. Manufacturers can use it to collaborate with external vendors and have complete operational visibility.
Key Features
- Subcontracting workflows
- Component supply management
- Vendor production tracking
- Receipt validation
- Outsourced manufacturing orders
- Cost monitoring
Top Benefits of Odoo Manufacturing Module
The following are the top advantages of using the Odoo Manufacturing module and its features for your production business.
- Streamline your production planning.
- Improve control over inventory.
- Reduce manufacturing costs
- Fulfill orders faster
- Ensure better product quality.
- Have real-time visibility into production
- Improve efficiency of the shop floor.
- Easily scale your manufacturing operations.
Industries That Can Benefit from Odoo Manufacturing Module
Odoo manufacturing module is beneficial for every manufacturing business that produces any kind of product with raw materials and other resources. The following industries can leverage the Odoo ERP manufacturing module to streamline production processes.
- Automotive Manufacturing
Automotive manufacturers can use Odoo manufacturing to manage their complex assemblies. They can also use it for multi-level Bills of Materials (BoMs), production scheduling, and quality inspections.
- Food & Beverage
Odoo Manufacturing module can assist food companies with tracking batching, expiry dates, recipes, and inventory in real-time.
- Pharmaceutical & Healthcare
Healthcare and pharma companies maintain strict quality standards by using Odoo ERP. They use it to track lots, manufacturing records, and regulatory compliance throughout the production lifecycle.
- Electronics & Electrical
Electronics and electrical manufacturers use the Odoo Manufacturing Module to handle multi-component products, engineering revisions, serial number tracking, and demand-driven manufacturing.
- Textile & Apparel
In textile, Odoo manufacturing can be used to plan production, manage fabric inventory, monitor work orders, and streamline operations from cutting and stitching to finished garments.
- Furniture Manufacturing
Furniture manufacturers use Odoo manufacturing module features to plan production for both made-to-order and mass-produced furniture. They use it to manage custom orders, product variants, and raw material consumption.
- Chemical Manufacturing
Chemical companies maintain consistency and safety across their manufacturing processes with Odoo ERP. They use the platform to control formulations, production batches, by-products, and inventory.
- Machinery & Industrial Equipment
Industrial equipment production companies use the Odoo Manufacturing module to coordinate complex manufacturing operations, routing, manage work centers, and subcontracting.
- Consumer Goods
Odoo Process Manufacturing module helps in optimizing production planning, inventory replenishment, and order fulfillment of consumer goods efficiently.
- Plastic & Packaging
Odoo Manufacturing ERP software is used by plastic manufacturers to manage their production lines, monitor raw materials used, reduce waste, and automate workflows.
How Ahex Technologies Can Help
Ahex Technologies is your trusted Odoo Silver Partner that can power your manufacturing business with the Odoo ERP Manufacturing module and solutions. We have 5+ years of experience in implementing Odoo ERP to streamline production processes for our notable clients.
We are proud to share that after Odoo implementation, our clients have remarkable results, which include up to 150% higher production, approximately 30% less wastage, 95% on-time production completion, and significant savings in terms of capital, effort, and resources.
This is our Odoo Manufacturing implementation roadmap
- Requirement Discovery
Our consultants first analyze your manufacturing processes, production workflows, and business objectives. Then, based on goals and requirements, we define a customized implementation strategy.
- Solution Design & Configuration
Our team configures the Odoo Manufacturing Module according to your business processes. These will include features like Bills of Materials (BoMs), work centers, routing, and production workflows.
- Customization & Integration
If there is a requirement, we customize the features to align with your processes. Then, we integrate Odoo with your existing ERP, CRM, accounting, warehouse, and other systems.
- Data Migration & Testing
After that, we migrate your data to Odoo securely. Then, we thoroughly test the Odoo system to ensure that it is working right.
- User Training & Go-Live
Our team trains your employees to use the Odoo manufacturing module efficiently. Also, we support the go-live process and ensure your manufacturing operations run smoothly from day one.
- Ongoing Support & Optimization
After deployment, we assign a dedicated team that will help you with technical support and upgrade Odoo from time to time.
Conclusion
Odoo Manufacturing module is meant for manufacturers to streamline their production processes. By using its top features like MRP, BOM, MO, Work Centers & Routing, Quality Management, PLM, and others, one can easily plan, execute, and monitor manufacturing.
It not only helps in streamlining manufacturing, but it also helps manufacturers to have better control over inventories, reduce costs, ensure quality of products, improve efficiency, and fulfill orders faster.
To power your business with Odoo Manufacturing, reach out to Ahex Technologies, the trusted Odoo implementation company and a certified Odoo Silver Partner.
FAQs
Q1. What is the Odoo Manufacturing module?
The Odoo Manufacturing module is a part of Odoo ERP that helps in managing the entire production process.
Q2. What are the best software options for managing manufacturing processes with ERP systems?
Some of the most popular ERP solutions for manufacturing are SAP S/4HANA, Microsoft Dynamics 365, Oracle NetSuite, and others.
However, among all these, Odoo is a preferred choice for thousands of manufacturing businesses. It is cost-effective, modular, and easy-to-use, and integrates seamlessly with other systems.
Q3. How to integrate an ERP solution to improve manufacturing efficiency?
To integrate an ERP solution successfully, you need to start by analyzing your manufacturing workflows and business requirements.
After that, you must configure the processes and migrate your business data. When it is done, you must integrate the ERP with your other systems and test it.
Don’t forget to train your team to use it effectively.
Q4. What are the top features of the Odoo Manufacturing module?
The top Odoo ERP Manufacturing module features are
- Material Requirements Planning (MRP)
- Bills of Materials (BoMs)
- Manufacturing Orders (MOs)
- Work Orders
- Work Centers & Routing
- Shop Floor Management
- Subcontracting
Q5. Which companies offer the best manufacturing management software with full-feature guides?
There are several companies that offer manufacturing management software, but if you’re looking for the best and most experienced company, then it is Ahex Technologies.
The company has 5+ years of experience, has catered to more than 50+ manufacturing clients, and has a proven portfolio full of successful Odoo Manufacturing implementation projects.
