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Figure 21.17: New production order The production order follows the process given by the figure
Process for handling a production order .
Figure 21.18: Process for handling a production order The Scheduled date , Product Qty and Reference, are automatically completed when the form is first opened.
Enter the product that you want to produce, and the quantity required. The Product UOM by default is completed automatically by Open ERP when the product is first selected.
You then have to set two locations: The location from which the required raw materials should be found, and
The location for depositing the finished products. For simplicity, put the Stock location in both places. The field Bill of Materials will automatically be completed
by Open ERP when you select the product. You can then overwrite it with another BoM to specify something else to use for this specific manufacture then Click the button Compute Data.
The tabs Scheduled Products and Work Orders are also completed automatically when you click Compute Data. You will find the raw materials there that are required for the production and the operations needed by the
assembly staff.
If you want to start production, click the button Confirm Production, and Open ERP then automatically completes the Products to Consume field in the Consumed Products tab and Products to Finish field in Finished
Products tab.
The information in the Consumed Products tab can be changed if: • you want to enter a serial number for raw materials,
• you want to change the quantities consumed lost during production. For traceability you can set lot numbers on the raw materials used, or on the finished products. Note the
Production Lot and Pack numbers.
Once the order is confirmed, you should force the reservation of materials using the Force Reservation button. This means that you do not have to wait for the scheduler to assign and reserve the raw materials from your stock
for this production run. This shortcuts the procurement process.
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If you do not want to change the priorities, just leave the production order in this state and the scheduler will create a plan based on the priority and your planned date.
To start the production of products, click Start Production. The raw materials are then consumed automatically from stock, which means that the draft Waiting movements become Done .
Once the production is complete, click Produce. The finished products are then moved into stock.
21.7 Scheduling
The requirements scheduler is the calculation engine which plans and prioritises production and purchasing automatically from the rules defined on these products. It is started once per day. You can also start it manually
using the menu Warehouse → Schedulers → Compute Schedulers. This uses all the relevant parameters defined in the products, the suppliers and the company to determine the priorities between the different production
orders, deliveries and supplier purchases.
You can set the starting time by modifying the corresponding action in the menu Administration → Configuration → Scheduler → Scheduled Actions. Modify the Run mrp Scheduler configuration document.
Figure 21.19: Configuring the start time for calculating requirements Tip: Calculating requirements scheduling
Scheduling only validates procurement confirmed but not started. These procurement reservations will themselves start production, tasks or purchases depending on the configuration of the requested product.
You take account of the priority of operations in starting reservations and procurement. The urgent requests, or those with a date in the past, or those with a date earlier than the others will be started first so that if there are not
enough products in stock to satisfy all the requests, the most urgent will be produced first.
21.8 Calculation of lead times
All procurement operations that is, the requirement for both production orders and purchase orders are automatically calculated by the scheduler. But more than just creating each order, Open ERP plans the timing of
each step. A planned date calculated by the system can be found on each order document.
To organize the whole chain of manufacturing and procurement, Open ERP bases everything on the delivery date promised to the customer. This is given by the date of the confirmation in the order and the lead times shown in
each product line of the order. This lead time is itself proposed automatically in the field Customer Lead Time shown in the product form. This is the difference between the time on an order and that of the delivery.
To see a calculation of the lead times, take the example of the cabinet above. Suppose that the cabinet is assembled in two steps, using the two following bills of materials.
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Table 21.21: Bill of Materials for 1 ARM100 Unit Product Code
Quantity Unit of Measure
PANLAT 2
Unit BOIS002
0.25 m2
LIN040 1
m BOIS010
0.249 m2
TAQ000 12
Unit Table 21.22: Bill of Materials for 2 PANLAT Units
Product Code Quantity
Unit of Measure BOIS002
0.17 m2
The PANLAT is made from an order using the workflow shown. The BOIS02 is purchased on order and the other products are all found in stock. An order for the product ARM100 will then generate two production orders
ARM100 and PANLAT then produce two purchase orders for the product BOIS02. Product BOIS02 is used in the production of both ARM100 and PANLAT. Set the lead times on the product forms to the following:
Table 21.23: Lead Times Product Code
Customer Lead Time Manufacturing Lead Time
Supplier Lead Time ARM100
30 days 5 days
PANLAT 10 days
BOIS02 5 days
A customer order placed on the 1st January will set up the following operations and lead times: • Delivery ARM100: 31 January =1st January + 30 days,
• Manufacture ARM100: 26 January =31 January – 5 days, • Manufacture PANLAT: 16 January =26 January – 10 days,
• Purchase BOIS02 for ARM100: 21 January =26 January – 5 days, • Purchase BOIS02 for PANLAT: 11 January =16 January – 5 days.
In this example, Open ERP will propose placing two orders with the supplier of product BOIS002. Each of these orders can be for a different planned date. Before confirming these orders the purchasing manager could group
these orders into single order.
21.8.1 Security days
The scheduler will plan all operations as a function of the time configured on the products. But it is also possible to configure these factors in the company. These factors are then global to the company, whatever the product
concerned. In the description of the company, on the Configuration tab, you find the following parameters:
• Security Days : number of days to deduct from a system order to cope with any problems of procurement, • Purchase Lead Time : additional days to include for all purchase orders with this supplier,
• Manufacturing Lead Time : number of additional days needed for manufacturing. • Scheduler Range Days : all the requests which are for procuring for a later date to the number of days
which are not calculated in the scheduler. Note: Purchasing lead time
The security delay for purchases is the average time between the order generated by Open ERP and the real purchase time from the supplier by your purchasing department. This delay takes account of the order process in
your company, including order negotiation time.
Take for example the following configuration: • Security Days : 2,
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• Purchase Lead Time : 3, • Manufacturing Lead Time : 1.
The example above will then be given the following lead times: • Delivery ARM100: 29 January =1st January + 30 days – 2 days,
• Manufacture ARM100: 23 January =29 January – 5 days – 1 day, • Manufacture PANLAT: 12 January =26 January – 10 days – 1 day,
• Purchase BOIS02 for ARM100: 15 January =26 January – 5 days – 3 days, • Purchase BOIS02 for PANLAT: 4 January =12 January – 5 days – 3 days.
21.9 Operations
In the first part of this chapter, manufacturing management was handled in terms of products and materials. This section focuses on manufacturing operations. To manufacture or assemble products, as well as using raw
materials and finished product you must also handle operations such as assembly, drilling wood, and cutting timber.
The different operations will have different impacts on the costs of manufacture and planning depending on the available workload.
21.9.1 Definition of concepts
To manage operations you should understand the following concepts • Workcenters,
• Routing, • Operations.
21.9.2 Workcenters
Workcenters represent units of product, capable of doing material transformation operations. You can distinguish two types of workcenter: machines and human resources.
Note: Workcenter Workcenters are units of manufacture consisting of one or several people andor machines that can be considered
as a unit for the purposes of forecasting capacity and planning.
Use the menu Manufacturing → Configuration → Resources → Work Centers to define a new workcenter. You get a form as shown in the figure
Definition of a workcenter .
