From Sales Order to Manufacturing Order | Odoo MRP

Odoo

24 Nov 202105:34

Summary

TLDRThis video walks through the integration of sales and manufacturing processes in Odoo, using Stealthy Wood's operations as an example. It explains how to set up automatic workflows to manage product sales and manufacturing efficiently. By configuring bills of materials, purchase orders, and reordering rules, the system ensures seamless inventory management and production. The video demonstrates how Odoo generates sales orders, purchase orders, and manufacturing orders to streamline operations. The final result is a smooth, automated process that prevents stock shortages and enables timely deliveries to customers.

Takeaways

🛠 Odoo helps streamline sales and manufacturing integration by automating key processes like creating sales orders and purchase requests.
📦 When a product is purchased that needs to be manufactured, Odoo automatically generates sales orders, RFQs for components, and manufacturing orders.
🪑 The example in the video focuses on manufacturing a conference chair, showcasing the step-by-step flow in the Stealthy Wood database.
🔧 A bill of materials (BOM) is essential to set up for any product being manufactured in Odoo.
🏭 To ensure automation works smoothly, the manufacturing route needs to be activated on the product form in Odoo.
🛒 Odoo automates purchasing by linking the product's purchase route to specific vendors and setting up reordering rules.
📊 Reordering rules allow Odoo to know how many items to order when stock levels are low or a sales order is created.
🚚 Once the sales order is confirmed, Odoo generates necessary purchase orders and manufacturing orders for missing components.
🖥 Odoo tracks stock levels and ensures that all necessary steps are completed before allowing the delivery of products to customers.
✅ After production is complete, Odoo updates the sales order, moving it to a ready stage, allowing for customer delivery.

Q & A

What is the primary objective of the process discussed in the script?
-The primary objective is to integrate sales with the manufacturing process using Odoo, allowing automatic behaviors when products that need to be manufactured are purchased, thus streamlining operations and preventing stock shortages.
How does Odoo help save time and prevent bottlenecks in the manufacturing process?
-Odoo automatically generates sales orders, requests for quotations from vendors, and manufacturing orders when a product is purchased, ensuring that all necessary components are in place to avoid delays and bottlenecks.
What is required to begin configuring the manufacturing process in Odoo?
-To configure the manufacturing process, a bill of materials (BOM) must be created for the product. Additionally, the 'Manufacture' route should be activated on the product form to signal that the product needs to be manufactured.
Why is it important to automate purchase orders for components in Odoo?
-Automating purchase orders ensures that components for the manufacturing process are reordered automatically, preventing stock shortages and delays in production.
What configuration must be done for individual components of a product in Odoo?
-For individual components, the 'Buy' route must be selected, indicating the item will be purchased from a vendor. Additionally, a vendor needs to be assigned to the product, and reordering rules should be configured to manage stock levels.
What is the purpose of setting reordering rules in Odoo?
-Reordering rules are set to determine the minimum and maximum quantities of a product that should be ordered when a sales order is created, ensuring that stock levels remain optimal.
How does the sales application in Odoo integrate with the manufacturing process?
-When a sales order is created for a product that needs to be manufactured, Odoo generates the necessary manufacturing orders and purchase orders for components, allowing the production process to begin seamlessly.
What steps are taken when a product is out of stock and needs to be manufactured?
-If a product is out of stock, a manufacturing order is generated, and any required components are ordered from vendors. Once the components arrive, the product is manufactured and delivered to the customer.
How does the replenishment process work in Odoo?
-The replenishment process involves going to the inventory application, selecting the product, and automating orders for manufacturing and purchasing components. Odoo will generate the necessary manufacturing and purchase orders automatically.
What happens after the manufacturing order is completed in Odoo?
-After the manufacturing order is completed, the product is marked as 'done,' and the sales order can be fulfilled. The delivery status is updated from 'waiting' to 'ready,' allowing the item to be delivered to the customer.

Outlines

00:00

⚙️ Setting Up Automated Manufacturing and Sales Integration

The video begins by introducing how to configure an automated workflow in Odoo that integrates sales with the manufacturing process for Stealthy Wood. This setup saves time and avoids bottlenecks caused by missing materials. When a product is sold that needs to be manufactured, Odoo automatically creates sales orders, generates requests for quotations from vendors, and prepares manufacturing orders. The process simplifies production by aligning sales and inventory needs, ensuring employees can meet customer demands more efficiently.

05:02

🪑 Configuring Bill of Materials and Automating Orders

The next section focuses on configuring the manufacturing process for a specific product, in this case, a conference chair. To set up the workflow, a Bill of Materials (BOM) is needed for the chair. The process requires activating the 'manufacture' route in the product form and setting the 'buy' route for components like the chair seat. The video explains how to assign vendors to components and establish reordering rules for inventory, so orders are automated based on stock levels and sales demands.

🛒 Creating Sales Orders and Generating Manufacturing and Purchase Orders

The video demonstrates the next step: creating a sales order for the conference chair and linking it to Azure Interior. Once the sales order is confirmed, it generates a delivery order, but the product is not in stock. This triggers the need for both manufacturing and purchase orders. The video walks through the process of moving to the purchase application, showing that no orders were initially created because the system requires replenishment from the inventory application.

🔄 Replenishing Stock and Processing Purchase Orders

This section covers how to generate purchase orders through the inventory application. After selecting the conference chair and automating orders, the system creates a manufacturing order and associated purchase orders for necessary components. The video demonstrates how to process the purchase order, receive and validate the stock, and apply the demand for the required quantities. The user confirms the purchase and validates the inventory to ensure all components are available for manufacturing.

🏭 Completing the Manufacturing Order

The video now shifts focus to the manufacturing application. Since the Bill of Materials didn’t require specific operations or work centers, the manufacturing order for the conference chair is ready to be processed. The user marks the order as done, completing the production of the item. This allows the team to proceed with fulfilling the customer’s order.

🚚 Delivering the Finished Product to the Customer

The final section shows the completed manufacturing order being reflected in the sales order for Azure Interior. The product moves from the 'waiting' stage to the 'ready' stage, signaling that it can now be delivered. The user validates the delivery order, confirming that the correct quantities are applied. The video concludes by explaining that Stealthy Wood is now fully equipped to handle future orders without worrying about running out of stock or delays in manufacturing.

👋 Wrapping Up: Streamlined Manufacturing with Odoo

In conclusion, the video summarizes the benefits of the configured system in Odoo, which streamlines the manufacturing process by automating sales and inventory tasks. It ensures that Stealthy Wood is prepared to meet customer orders efficiently without stock shortages. The video ends with a friendly farewell, reminding viewers that the setup will prevent operational bottlenecks in the future.

Mindmap

Keywords

💡Odoo

Odoo is a comprehensive business management software that integrates various business functions such as sales, inventory, and manufacturing. In the video, Odoo is used to automate the manufacturing and sales processes for the company Stealthy Wood, showing how the software helps streamline operations, manage orders, and track inventory.

💡Bill of Materials (BOM)

A Bill of Materials (BOM) is a detailed list of components, materials, and parts required to manufacture a product. In the video, the BOM for the conference chair is set up in Odoo, ensuring all necessary materials are accounted for before manufacturing can begin.

💡Manufacturing Order

A Manufacturing Order is a document that initiates the production of a product. In Odoo, this order is automatically created when a customer purchases a product that needs to be manufactured. The video demonstrates how the manufacturing order for the conference chair is generated and tracked through the system.

💡Sales Order

A Sales Order is a confirmation of a sale from a customer, detailing the product and quantity purchased. In the video, a sales order for the conference chair is created when a customer buys the product, triggering the entire manufacturing and inventory replenishment process.

💡Purchase Order

A Purchase Order is a document issued to a supplier to request goods or services. In the video, a purchase order is generated when the system identifies a need for components to manufacture the conference chair, ensuring that materials are available without manual intervention.

💡Inventory Management

Inventory Management refers to the process of overseeing the ordering, storage, and use of materials that a business uses for production. In Odoo, inventory management is automated so that when stock levels are low, replenishment orders are created automatically, as shown when components for the conference chair are ordered.

💡Reordering Rules

Reordering Rules in Odoo help automate the purchasing process by setting minimum and maximum inventory levels. The system triggers a purchase order when stock falls below the minimum level. The video illustrates this when the user configures reordering rules to ensure there is always sufficient stock of chair components.

💡Automated Workflows

Automated Workflows refer to processes that are programmed to run automatically without manual intervention. In the video, Odoo automates several workflows, such as generating sales orders, purchase orders, and manufacturing orders, saving time and preventing bottlenecks in the manufacturing process.

💡Conference Chair

The Conference Chair is the product used as an example throughout the video. It is a manufactured item for which the speaker sets up the manufacturing process in Odoo, from creating a Bill of Materials to automating purchase orders for components and tracking the delivery to the customer.

💡Stealthy Wood

Stealthy Wood is the fictional company used in the video to demonstrate how Odoo can integrate manufacturing, sales, and inventory management processes. The video shows how Stealthy Wood uses Odoo to manufacture products like the conference chair and efficiently manage orders and inventory.

Highlights

Odoo allows automatic behaviors when a product that needs to be manufactured is purchased, streamlining the sales and manufacturing flow.

Automatic creation of sales orders and manufacturing orders reduces the time spent on manual processes and avoids bottlenecks caused by missing materials.

Odoo can generate requests for quotations (RFQs) for components or products from vendors as part of the manufacturing order process.

The system creates both purchase orders for materials and manufacturing orders automatically, saving time in managing inventory.

Odoo's setup process includes creating bills of materials (BOMs) for products that are to be manufactured.

In the inventory settings, users need to select the 'Manufacture' route to ensure the product can be manufactured in the system.

Users must configure the purchase route for items sourced from vendors to ensure components are available for manufacturing.

Reordering rules allow users to set minimum and maximum quantities for automatic purchasing when stock is low, optimizing inventory levels.

The sales application can be used to trigger the manufacturing process by creating a sales order for a customer, which initiates stock checks and manufacturing orders.

When stock is unavailable, Odoo automatically generates purchase orders and manufacturing orders, and tracks these via the inventory and purchase applications.

Replenishment settings in the inventory application allow users to automate order processes for required products and components.

Odoo automatically creates a manufacturing order and processes the related purchase orders when stock is needed, ensuring the right quantities are ordered.

After confirming purchase orders, employees can receive and validate stock, updating inventory and moving the product through the manufacturing process.

Once the product is manufactured, the manufacturing order can be marked as complete in Odoo, which updates the sales order status.

With the setup complete, the final delivery of the product can be validated in the system, ensuring customers receive their order without delays.