Manufacturing ERP with Odoo (Odoo MRP)

Nikhil Krishnan
5 min readMay 17, 2018

A complete ERP system made up of different modules and integrates all the portions of the business. And this each module is specialised to handle separate business workflows like accounting, sales, purchase, inventory, human resource, and manufacturing etc. So that each every data and functions generate on a single database.

A manufacturing company needs to handle production and manufacturing process in one hand, parallel need to handle others like accounting, sales, purchase, HR. Odoo is one of the best options that you have available in the market at present. Odoo is cost effective, time effective and very easy to use. The main advantage is this ERP is Open source software and no license fee for this Odoo community version.

In this section I guide you, the use of MRP module in a small business and its benefits, you’ll find an introduction to MRP software or modules, it’s working and work flows and learns how the MRP module make benefit in your manufacturing business.

After the successful installation of Odoo ERP, We can simply install the MRP module in the new database, manufacturing module/software now your business is ready to handle the manufacturing processes.

Planning, costing and processing these are the basics of a manufacturing business. For the effective and efficient way in a manufacturing business organization must need a good proper production planning and costing method. Then only the production become economical and profitable.

Production planning is an activity that performed before the original production starts. It involves planning and schedules the production, ensure the availability of raw materials, machines and equipment, and the last but not the least is Human resources are available to meet the production requirements in planned dates.

It also ensures that a detailed plan on how our manufacturing unit will reach the production goal and schedule the best time table for an effective and efficient production with cost effective or economic way. Also, we can predict the time of the production ready to deliver, which can be useful for us to predict how long it will take to deliver the customer’s orders.

We can provide better Service to Customers

→Proper planning helps to provide good services to clients or customers with better quality at reasonable prices.

→Deliver the product as per promised delivery dates.

→Proper delivery and good quality both helps you to improve the relations with customers.

→Improve their confidence and trustworthy.It makes Promoting profitable repeat orders.

→Also, our customers give new leads. Or they suggest us.

Handle the rush orders

→An effective planning can handle the rush orders.

→Handle it cost effectively.

Inventory and stock maintenance

→Raw material management

→Finished product management

→Minimal stock and maximum stock manage.

→Effective track of stock moves.

Effective use of work center and machines

→Most effective use of equipment

→Handle the work centers

→We can plan properly and efficiently to use the machines

→Manage work with the efficiency of the machines.

→Reduce the idle time of machine

Reduce the idle time of production

→Planning helps in reducing the idle time

→Avoid the wastage of time of production

→Avoid the wastage of time of resources

Avoid the wastage of raw materials

→Proper planning reduce the wastage of resource

→We can use the maximum resource.

Lower capital requirements are needed for a well-planned production

→Meet the raw materials in low cost

→Effective use of workers makes less capital and high profit.

Manufacturing ERP software automates and integrates the process of planning, costing, processes, resources, work orders and work centers. It provides visibility in our system, provides accurate and real time data and information. And a Good ERP increases the productivity, efficiency, and accuracy with economically by helping them navigate complex workflows. Make them easy to use and handle the process and business. Avoid the duplication and re entry. Improve the areas like production, purchase(raw materials) storage, sale, and delivery.

→Odoo will help you to balance your planning, costing, processes, activities, Human resources, other resources, tools, and machines.

→Odoo provides the improvement in visibility of system.

→The help of odoo we can improve the efficiency of human resource.

→Odoo will help in maximum utilization of available resources.

→We can generate detailed reports. Odoo provides different reports like PDF report, XLS report, Chart views etc.

→Odoo helps you to make decisions faster.

→Odoo helps you gain more control of your business.

→Odoo solves a number of challenges and provides large scale benefits to manufacturers to manage growth, reduce cost by cost effective methods, easy to plan the production.

→Odoo is easy to use.

In odoo MRP we can plan and create MRP orders. We can check the availability of raw materials, if it is available we can start the production. After complete the production, we can post it into inventory. From this records, we can generate sufficient reports. There are other modules like Accounting, Sales, Purchase, Inventory gives a complete support for MRP module. Also provide to unbuild the order, scrap the products, etc.

The MRP module did not have an independent existence, its need inventory support for handle all the stock valuation, stock move etc. basic Purchase module helps to manage the purchase of raw materials etc, sales modules and CRM modules manage the customer and their sales. HR module handles the employees and their process like attendance, leave, payroll/payslip and appraiser etc.

  • Track changes in demand
  • Manage your stock and warehouse and stock valuation(inventory)
  • Manage the complete process of a company, Information and functions generate on a single database.
  • Make better decisions more quickly
  • Make accounting easier.
  • Increase sales and customer satisfaction.
  • Maintain the customer relationship.
  • Manage human resource, Make them happy, then company automatically grown up
  • Manage purchases, bids management. bid competitiveness through pricing accuracy
  • More accessible data.
Relation of MRP and ERP

ERP help in manufacturing in accurate resource, real time information and wild and clear visibility, reduce the administrative and operational costs.

Flexibility

→ERP software or module is more flexible and configurable

→Users can make decisions take actions faster

→Easy to adapt the market strategies and growing business.

Competition

-E-marketing and E-commerce make large scale change in the market, world class products available. We can easy to find our market, in the same time competition is also increased. So everyone participates.

-Good ERP can only give the full support for winning the market.

-Back born of manufacturing company is the production unit, but sales team are the revenue generators. A complete ERP can only handle both in parallel.

-Quality assurance of manufactured products.

Sudden update production schedules.

Time savings in inside sales, purchase, planning, and costing

Improved capacity planning and costing.

Cost savings from overall equipment, cost center management.

Now Increase your own chances of selecting a good ERP system in your production business that will help you bring large scale business growth in your organisation. All the best.

Nikhilkrishnan

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Nikhil Krishnan

Blockchain and Odoo-ERP developer. I started my career as a Python developer. Working as Odoo ERP developer But my curious mind caught up in the Blockchain too.