In today's fiercely competitive manufacturing landscape, staying ahead of the curve is crucial for businesses aiming to achieve operational efficiency and sustainable growth. As production complexities continue to evolve, manufacturers seek advanced solutions that can simplify their processes, enhance productivity, and optimise resource utilisation. One such powerful tool that has gained significant traction is Odoo MRP (Manufacturing Resource Planning).
Odoo MRP, an open-source and comprehensive manufacturing management software, has emerged as a game-changer for manufacturers across various industries. With its extensive suite of features, Odoo MRP empowers businesses to streamline their entire manufacturing process, from planning and scheduling to inventory management and quality control.
Whether you're a small-scale operation or an enterprise-level manufacturer, this comprehensive guide will shed light on the immense potential of Odoo MRP and help you make informed decisions about implementing it in your organization
Benefits of Odoo MRP for NZ Manufacturers:
Cost:
Odoo comes at a fraction of the cost when compared to competitors. Licensing is charged annually and starts at around $25 USD per user per month for access to all Odoo applications.
How does that stack up?
Netsuite: Standard $99 p month (Odoo comes in nearly 75% cheaper!)
SAP: Professional $132 p month (Odoo is just over 80% cheaper!)
Acumatica: Small Business $1,000 p month (Odoo is 97% cheaper)
Epicor: ERP $175 p month (Odoo is still a whopping 85% cheaper)
Integration:
With Odoo MRP, integration with the full suite of Odoo apps for no additional licensing cost has been a game changer for SMEs. The manufacturing, inventory, and purchase apps are considered the trifecta for full-trace material tracking and management. To have such powerful software accessible to NZ manufacturers allows smaller organisations to punch well above their weight. Further, you're not limited to those apps, adding apps like CRM, eCommerce, Fleet, and Projects
Intuitive Interface:
A clear advantage when compared to competitors, Odoo's clean, intuitive interface is revolutionary in its design. Employees happily navigate and manage all of your manufacturing operations from the same screen or across different teams in real time, whether in the office or on the production floor.
Customisation:
Odoo comes with a high level of customisation built in. Flexibility provides the ability to configure any manufacturing scope and/or requirement. Having the capacity to manage custom builds and engineer to order projects, complete control is realised over your companies workflows. Even across various manufacturer types and ranging from small shops to larger industrial organisations.
Odoo MRP: What are some common uses of Odoo MRP?
Read our recent blog post for a thorough introduction to Odoo for Manufacturing. Odoo MRP is a cost effective, easy to use MRP that combines maintenance, product lifecycle management (PLM), quality, and MRP to provide a powerful solution for manufacturers of all sizes.
Material Tracking
With 53% of organisations planning to increase their focus on sustainable sourcing, those manufacturers who can accurately prove the origin of materials all the way through the supply chain will take the lead. Having Material tracking systems follow the life cycle of materials from procurement, to warehouse, to manufacturing and engineering, and eventually to the customer is a big win for brands looking to include low emission or sustainable practices in their product claims. Comprehensive tracking enables complete supply chain visibility and guarantees consistent product quality both in and out of the business.
Some MRP platforms, like Odoo, natively offer supply chain traceability for material tracking and promote end to end quality assurance.
So, what does this look like for a company using Odoo MRP? The following is an excerpt from Odoo's MRP Whitepaper 2023:
First, materials are procured via the purchase app. Automated replenishment behaviours are set up ahead of time to order components when inventory reaches a minimum threshold, otherwise purchase orders are created manually. When shipments are received, lots and serial numbers are recorded before materials reach storage, either by manually inputting that data into the inventory application or scanned in using Odoo barcode.
In Odoo, multiple warehouses and floors are configured based on the material flow of the business's manufacturing operations. Whenever materials move from one location to another (e.g. warehouse to manufacturing floor), traceability reports are automatically generated, allowing the materials to be tracked during downstream processes.
When a product is ready to be manufactured, material lots and serial numbers are used to compile the necessary components in the BOM's, and move from the storage warehouse to the manufacturing floor for production. Once the product is finished, a record indicates the exact parts that were used. More complex manufacturing methods can also be configured to require order pickings and transfers to final storage; no matter the method, the movement of materials is transparent and can be viewed through the traceability report.
Material tracking in Odoo is particularly advantageous if products need to be recalled or repaired. Using the repairs application, products can be fixed, and broken parts can be identified using the items tracking information. Faulty parts can be linked back to initial shipments if necessary, and the repair applications reporting features can be used to identify larger patterns of problems.
Quality Control
Some applications like Odoo Quality help manufacturers enforce quality standards across the supply chain by pinpointing quality issues as they arise.
Control point measurements for example are a fully customisable quality metric in Odoo Quality and are easy to set up. They can be configured for manufacturing specific operations like assembly and material handling or for logistics based operations such as incoming and outgoing shipments. Different control point types, such as measurement or pass fail tests, can be applied to each control point. As well, the frequency and automation of these control points are customisable. Therefore, businesses can validate the quality of components as soon as they are received, ensure protocols are adhered to throughout the manufacturing process, and ensure the final products meet standards before they are shipped out.
What happens when a component or manufactured good doesn't meet a quality control point?
In Odoo, quality control points can be established anywhere necessary to alert team members of an issue so that it can be tackled where it arises. This is particularly valuable because it takes quality control from being in the hands of administration and oversight teams alone. This way, workers across the manufacturing and engineering floors are empowered to investigate the root cause of an issue and propose corrective actions. Furthermore, the Quality app gives opportunities for quality control teams to optimise their own flows and identify areas for improvement.
Manufacturing Execution Systems
With the acronym MES, a Manufacturing Execution Systems helps you avoid exactly that, a mess! Manufacturing execution systems are used to control the details of production and monitor operations on the shop floor, by instructing and recording all of the actual steps involved, from material procurement to the actual product/component construction.
In the BOM, users can design step-by-step operations and incorporate quality control points, providing clear directions for assembly workers. After a manufacturing order is launched and work orders are triggered, workers can access instructions through a user-friendly tablet view. When assembly workers complete work orders via the tablet view, Odoo tracks material registration and task completion based on the operations initially configured in the BOM. Workers also have the ability to raise quality alerts and propose improvements from the tablet view, facilitating helpful feedback for workflow optimisation.
An MES can help manufacturers to streamline their production processes, reduce costs, and improve quality by identifying bottlenecks, reducing cycle times, and improving equipment utilisation. It can also help to ensure compliance with regulatory requirements and standards by providing a detailed record of production activities and materials usage.
MES systems can be customised to meet the specific needs of different manufacturing environments, from discrete manufacturing to process manufacturing.
In Odoo, work centers automatically record efficiency data based on completed work orders to provide useful metrics like overall equipment effectiveness (OEE). The exact time workers spend on manufacturing activities is also recorded providing valuable cost information and productivity insights.
Strengthen Collaboration and Communication
Collaboration and communication are vital for smooth manufacturing operations. Odoo MRP facilitates seamless collaboration among teams by providing a centralised platform where employees can access real-time data, share information, and collaborate on projects. From engineers and production managers to procurement teams and quality control personnel, everyone can work together efficiently, eliminating information silos and fostering cross-functional collaboration. This enhanced communication leads to better decision-making, improved coordination, and ultimately, increased productivity.
Conclusion
Odoo MRP stands as a comprehensive solution that addresses the unique challenges faced by manufacturers in today's competitive landscape. By streamlining processes, optimising resource utilisation, and providing real-time visibility into operations, Odoo MRP empowers businesses of all sizes to achieve operational efficiency and sustainable growth. With its cost-effective pricing, seamless integration capabilities, intuitive interface, and extensive customisation options, Odoo MRP proves to be an invaluable tool for manufacturers, enabling them to stay ahead of the curve and unlock their true potential.
Whether you're a small-scale operation looking to optimise your production or a large enterprise striving for operational excellence, embracing Odoo MRP can revolutionise your manufacturing processes and pave the way for success. Embrace the power of Odoo MRP and take your manufacturing operations to new heights, ensuring a competitive edge in the dynamic world of manufacturing.