Manufacturing: Operations Overview and Workflow Examples


Purpose

The purpose of this document is to provide an overview of Manufacturing Orders, Work Orders, Unbuild Orders, and Scrap Orders in the Odoo Manufacturing Application. Then we will go over a standard workflow and a more complicated workflow using routings and work orders to illustrate the steps to track manufacturing in Odoo. 

Process

To get started, navigate to the Manufacturing application. 

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Manufacturing Orders

When a product is configured to be Manufactured, it will cause a manufacturing order to be created whenever it is purchased by a customer (if the MTO route is also applied) or if you trigger a reordering rule to be executed.

Your manufacturing orders can be found under Operations > Manufacturing Orders

You can also create a manufacturing order manually by clicking Create from the manufacturing orders page. 

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When you create a manufacturing order manually, you will need to input the product you are manufacturing and the quantity you want to produce. The Route and the Bill of Materials will be selected by default based on how the product is configured. If you have multiple Bill of Materials associated with this product, you can choose the one you would like to use for this manufacturing order from the drop down menu. 

You can also set a deadline to start production by so that you know you can meet your target for shipping the item to the customer. 

The Consumed Materials tab will fill in with the components needed and the quantities of those components needed to meet the manufacturing order's quantity once you hit Save

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Work Orders

Work orders are used to track the operations related to the manufacturing of your products. They are only triggered if you have a Routing specified on the Bill of Materials for the product. Your Routings detail the steps for production and allow you to upload any worksheets, instructions, or include any notes that your production workers need to complete the manufacturing of the product.

When a work order gets triggered, your warehouse employees will be able to process it and complete the manufacturing steps necessary to fulfill your manufacturing orders.

Routings and work orders are typically not needed in smaller scale production lines where the same employee would perform all necessary production steps.They are often used if you have multiple teams processing different pieces of work, if the users need instructions, or if separate scheduling is needed for operations in the manufacturing.

Once a Work Order is triggered, you can access your Work Orders by navigating to Operations > Work Orders.

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From this page you can see all pending Work Orders and their associated Manufacturing Orders. Because Work Orders are only triggered by Manufacturing Orders, you cannot create Work Orders manually.

By selecting any Work Order, you will see the associated documents that provide the production workers with the instructions and specifications that they need to successfully manufacture the product. 

Once they have completed the work on the work order, they can MARK AS DONE to complete the work order and remove it from the Work Orders list.

On the last operation for a manufacturing order, there will be a second button to mark as done and close mo. Clicking this button will mark the manufacturing order itself as Done. completing the stock moves and removing it from the To Do list. 

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Unbuild Orders

To get to your Unbuild Orders, navigate to Operations > Unbuild Orders. Unbuild orders allow you to break down finished products and re-stock its component products in your inventory.

These orders should only be used on finished products where the components are still usable for production once broken down. 

If you unbuild 1 finished product that uses 2 component products to create it, once the unbuild order is executed, you will decrease your finished product's stock by 1 and increase the stock of each component product by 1. Those component products can now to be used in other manufacturing processes as needed. 

On the Unbuild Orders screen, select Create to set up your Unbuild Order. You will have the following fields to fill in:

Product: Select the product that you want to unbuild. 

Bill of Material: The bill of materials for the selected product will be automatically selected, but you can choose a different Bill of Materials if the product you've chosen has more than one. 

Quantity: Input the number of products that you want to unbuild. 

Manufacturing Order: You can select the associated manufacturing order that produced the completed product that you are now unbuilding. This is not needed to fulfill the unbuild order.

If there is no associated Manufacturing Order, you can just unbuild the product from the available stock. 

Location: You can specify the location of the stock you are unbuilding. 

Destination Location: You can specify where the resulting products will be moved to once they are unbuilt. 

Lot: You can select the lot or serial number that is associated with the product you are unbuilding. This field will only be visible if the product is configured for tracking. 

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Scrap Orders

Scrap Orders allow you to move inventory that is damaged or defective to your scrap location for processing. Scrap Orders can be made manually from the Scrap Orders page found under Operations > Scrap Orders.

Throughout the product's life cycle, you will have the ability to create scrap orders in various places (receiving inventory, processing manufacturing, during quality checks, etc.)

From the Scrap Orders page, click Create to make a Scrap Order. You will be given the following fields to fill in: 

Product: Select the product that you want to scrap. 

Quantity: Select the quantity of the product that needs to be scrapped. 

Lot: Select the lot or serial number associated with the scrapped product.This field will only be visible if the product is configured for tracking. 

Package: Input the package associated with the product that needs to be scrapped if there is one. 

Owner: Input the employee responsible for the product. 

Location: You can specify the location of the stock you are scrapping. 

Scrap Location: You can specify where the resulting products will be moved to once they are scrapped. Only locations that are configured as a scrap location will be available for selection.

Note that scrap locations can be configured as an Inventory Loss location type, allowing you to configure Stock Valuation Accounts.  

Source Document: You may enter a reference to a sale order, purchase order, RMA, or other document that relates to the scrap oder. 

Expected Date: This is the date and time that the scrap is expected to take place. 

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Once you've input the specifications for your scrap order, select Save. Once the scrap order has been processed, select validate and the Scrap Order will be moved to Done and you will decrease your stock by the number of products that were scrapped.

Basic Manufacturing Workflow 

For our basic workflow, we will start by creating a Quotation and move through the process until we have the available product in our stock.

Before we begin, if you want to follow along in your own system, you will need to have a product that is configured to be manufactured, made to order, and that has an associated BOM.

For this example, we have no Route associated with our BOM, we are manufacturing in the same warehouse that our stock is held and have no need for a picking or transfer to a different location. 

To get started, navigate to the Sales application. 

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We will start by creating a Quotation for the product that we want to manufacture in any quantity that we would like. For this example, we will order 1.

Because this product is configured to be manufactured and make to order, once we confirm the quotation, it will create a Delivery Order and a Manufacturing Order automatically. 

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To complete the manufacturing of the product, let's go to the Manufacturing application. 

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Once inside of the Manufacturing application, you will see all of your manufacturing orders. Find the manufacturing order that we just created and select it. 

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Click the CHECK AVAILABILITY button to reserve the needed components from your Inventory. If all of the components are available, they will turn black and you will be ready to move on to the next step. 

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There will now be a PRODUCE button on the top left of the Manufacturing Order.

When you click that, it will launch a new window where you can edit the quantity being produced or add other lines to the components, if needed. Clicking Record Production will create, but not complete, the Inventory Moves for the component and finished products.

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Once production is complete, hit Mark as Done. This will complete the inventory moves, moving the finished products to their post-production location for order fulfillment. 

You will now have the additional stock available to complete the order.

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Complex Manufacturing Workflow 

For our complex manufacturing workflow, assume that a Sale Order has been placed for our product and our Delivery and Manufacturing Orders are already created. 

For this example, we will be manufacturing a product that has a component product that also needs to be manufactured. Our components are stored in a separate location from our production area and so the components will need to be gathered by using a Route associated with the product and a Picking before production can begin. 

To get started navigate to the Manufacturing application. 

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In this example we are making cupcakes with buttercream icing that will need to be manufactured before we can complete the cupcake order. When you review your Manufacturing Orders, we have separate orders for the icing and the cupcakes. 

Manufacturing could be more complex if, for example, one of our component products needed a component that also needed to be manufactured or if you had multiple component products that needed to be manufactured before you could complete production on the final goods. 

But, for this example we will only have the 1 component product and 1 main product. 

Let's start manufacturing our Icing by clicking on the Manufacturing Order. 

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In the top right corner of the Manufacturing Order, there's a  Picking Smart Button. This is activated because our components are stored in a different warehouse than our production location so we need a picking to be completed to get the components to the production location. 

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When you go into the Picking/transfer, you will need to set the  Done Quantities for each item in the picking.

Click the Check Availability button to reserve the components from your available stock.

Once you see that your components are Reserved and they turn black, click on the  icon next to each component.

When the modal pops up you'll enter the required amount of the component in the Done field.

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Once you have all of the quantities input for your components, click the Validate button. 

Now navigate back to the Manufacturing Order page by using the breadcrumbs on the top left of the page. 

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Once back on the Manufacturing Order page, click the Plan button to trigger the work orders for this product. At the top right of the Manufacturing order, we now see a  Work Orders Smart Button.

The Plan button was visible, and work orders were triggered, on this example because we have a Routing specified on this Bill of Material. 

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When we click the  Work Orders Smart Button, we are taken to the Work Orders page which can also be access by going to OPERATIONS > WORK ORDERS

We'll select the Work Order for this product that shows the status of Ready

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On the Work Order, we can hit Process when we are ready to begin work. This will launch the Work Order's details page which will have any worksheets and notes that you set up in the routings configuration. When the work has been completed, select mark as done.

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If there are multiple work orders on the Manufacturing Order, then there will also be a Mark as done and close MO button, but it won't appear until the last work order has been selected. 

We will Mark as Done and proceed to the next two work orders on this Manufacturing Order. 

Navigate to OPERATIONS > MANUFACTURING ORDERS and we can select the next Manufacturing Order in the sequence. 

Because we manufactured the icing already, we will now have the icing available in our stock to process the manufacturing of the cupcakes. 

The manufacturing process for the cupcakes will be the same as the process for the icing; we will process the picking and move the ingredients from stock to the production location and validate that they have arrived. We will go to the manufacturing order for the cupcakes and process the work orders for them.

Once the work orders are completed, we will mark the Manufacturing Order as Done. This will complete the inventory moves, decreasing the quantity on hand for the component products and increasing the quantity on hand for the product we produced.