Confirming pre-generated Goods Receipt Documents

293 CHAPTER TWENTYONE MANUFACTURING The management of manufacturing described in this chapter covers planning, ordering, stocks and the manufacturing or assembly of products from raw materials and components. It also discusses consumption and production of products, as well as the necessary operations on machinery, tools or human resources. The management of manufacturing in Open ERP is based on its stock management and, like it, is very flexible in both its operations and its financial control. It benefits particularly from the use of double-entry stock management for production orders. Manufacturing management is implemented by the mrp module. It is used for transforming all types of products: • Assemblies of parts: composite products, soldered or welded products, assemblies, packs, • Machined parts: machining, cutting, planing, • Foundries: clamping, heating, • Mixtures: mixing, chemical processes, distillation. You will work in two areas: on products in the first part of this chapter, and on operations in the second part. The management of products depends on the concept of classifications while the management of operations depends on routing and workcenters. Note: Bills of Materials Bills of Materials, or manufacturing specifications, go by different names depending on their application area, for example: • Food: Recipes, • Chemicals: Equations, • Building: Plans. For this chapter you should start with a fresh database that includes demo data, with mrp and its dependencies installed and no particular chart of accounts configured.

21.1 Management of production

Production Orders describe the operations that need to be carried out and the raw materials usage for each stage of production, You use specifications bills of materials to work out the raw material requirements and the manufacturing orders needed for the finished products. Manufacturing has the following results: • Stock reduction: consumption of raw materials, • Stock increase: production of finished goods, • Analytic costs: manufacturing operations, • Added accounting value of stock: by the creation of value following the transformation of products. 294

21.2 Bills of Materials

21.2.1 Use of Bills of Materials

Bills of Materials are documents that describe the list of raw materials used to make a finished product. To illustrate the concept of specification you are going to work on a cabinet where the manufacturing plan is given by the figure Plan of construction of a cabinet . Figure 21.1: Plan of construction of a cabinet The cabinet is assembled from raw materials and intermediate assemblies: Table 21.1: Product Definitions before defining Bills of Materials Product Code Description ARM100 Cabinet PANLAT Wooden Side Panel PANA100 Rear Panel PROFIL Metal Strut ETA100 Shelf PLET100 Shelf Panel BOIS002 Wood Panel BOIS010 Wood Panel TAQ000 Panel Pins LIN040 Lintel To describe how to assemble this cabinet, you define a bill of materials for each intermediate product and for the final cabinet assembly. These are given by the table below. Table 21.2: Bill of Materials for 1 ARM100 Unit Product Code Quantity Unit of Measure PANLAT 2 Unit PANA100 1 Unit PROFIL 4 Unit ETA100 3 Unit