Odoo · Inventory & Manufacturingmrp

Manufacturing

Bills of materials, work orders, work centers and subcontracting

Manufacturing

Creates manufacturing orders from the bill of materials, distributes work orders to work centers, and reflects the material and time spent in the cost.

What it does

The Manufacturing module is based on the bill of materials. When a manufacturing order is created, the components are reserved from stock; if operations are defined, the work orders drop to the work centers in sequence. The operator starts and finishes the work order, the time spent is recorded and added to the production cost at the work center's hourly cost. For semi-finished goods, a multi-level bill of materials is set up.

Bill of Materials (BoM)

Defines the components and their quantities. In a multi-level structure, a semi-finished product has its own bill of materials. A kit-type bill of materials passes the components straight to the delivery without creating a manufacturing order. A different component list can be given per product variant.

Work order and operations

Operations are added to the bill of materials: component placement, soldering, testing, assembly and so on. Each operation is linked to a work center and a duration. When the manufacturing order is confirmed, these operations open as work orders. Sequence dependencies can be defined between work orders.

Work center and capacity

An hourly cost, capacity, setup time and cleanup time are defined for the work center. If an alternative work center is defined, the work order is routed to a center that is not busy. The center's workload and OEE are reported.

Subcontracting

When the bill of materials is defined as the subcontracting type, a purchase order is created for the subcontractor. The components sent are tracked in the subcontractor's stock location. The finished product enters stock through a receipt, and the components are counted as consumed at the same moment.

We don't just install the module — we fit it to your business

ASON analyzes your production processes on-site with an engineering team; it sets up work center, routing, and cost modeling, and when needed connects shop-floor data to the system through machine and IoT device integrations.

  • Setup & ConfigurationModeling and rollout tailored to your processes.
  • Data MigrationWe migrate your existing data without loss.
  • Team TrainingHands-on training and documentation.
  • Regulation & LocalizationTürkiye-specific compliance and integrations.

Technical scope

Multi-level bill of materials and semi-finished goods
Kit-type bill of materials
Component list per product variant
Operations (routing) definition and work order dependencies
Work center cost, capacity, setup and cleanup time
Routing to an alternative work center
Subcontracting and material feed to the subcontractor
By-product definition
Unbuild order
Scrap records and backorders on partial production
Master Production Schedule (MPS)
Production recording with lots and serial numbers

Frequently asked questions

We have semi-finished goods; can a multi-level bill of materials be set up?

Yes. The semi-finished product is defined as a separate product and has its own bill of materials; it appears as a component in the parent product's bill of materials. If you want to keep it in stock, it is produced with its own manufacturing order. If you do not want to stock it, multi-level production in a single order is considered.

What is a kit-type bill of materials for?

A kit-type bill of materials passes the components straight to the delivery without creating a manufacturing order. If you do not want to keep a semi-finished product in stock, a kit structure can be considered. If a separate production step is needed, a normal bill of materials is used instead and a manufacturing order is created. The choice is made per product.

We subcontract part of the work; does Odoo track it?

Yes. The relevant bill of materials is defined as the subcontracting type and the subcontractor is selected. When a purchase order is created for the subcontractor, the components are sent to them and appear in the subcontractor's stock location. When the finished product is taken into stock with a receipt, the components are consumed automatically. You can follow the quantity of material held at the subcontractor from a report.

How is the production cost calculated?

The cost is made up of two parts: the stock cost of the components consumed, and the time spent on the work orders multiplied by the work center's hourly cost. When the operator starts and finishes the work order, the time is recorded. When the manufacturing order is closed, these two parts are added up to determine the cost of the finished product. The valuation method is selected on the product record.

Can we define component placement, soldering and testing as separate work orders?

Yes. Operations such as component placement, soldering, testing and assembly are added to the bill of materials. Each operation is linked to a work center and a duration. When the manufacturing order is confirmed, these operations open as work orders. Sequence dependencies can be defined between work orders, so the test step does not start before assembly is finished.

If a work center is busy, does the work order wait?

Capacity, setup time and cleanup time are defined for the work center, and planning uses them. If you define an alternative work center, the work order is routed to a center that is not busy. The center's workload and OEE are reported. The hourly cost is also kept on the center and is reflected in the production cost.

Can we record faulty output and products we want to take apart?

Yes. A scrap record is created for material or products that come out faulty. If you want to take a finished product back apart into its components, an unbuild order is used. On partial production, a backorder stays open for the remaining quantity and is closed as production is completed. If a by-product comes out of the run, it can also be defined on the bill of materials.

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Warehouse, manufacturing, purchase, maintenance

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