A Step-by-Step Guide to Setting Up Odoo Manufacturing for Yo

In today's fast-paced industrial landscape, efficiency and adaptability are critical for manufacturing businesses. Many companies turn to Enterprise Resource Planning (ERP) systems to streamline their operations, and Odoo stands out as one of the most comprehensive and customizable options available. If you're looking to digitize and optimize your factory's production process, this step-by-step guide will walk you through setting up Odoo Manufacturing, from initial configuration to real-time production monitoring.

Why Choose Odoo for Manufacturing?

Before diving into the setup process, it’s important to understand why so many companies choose Odoo for manufacturing. Odoo offers:

• All-in-one integration: Manufacturing, Inventory, Sales, Procurement, Accounting, and HR are all connected.
• Customizability: You can tailor workflows to suit your unique business needs.
• Real-time analytics: Monitor production in real-time and make data-driven decisions.
• Scalability: Whether you’re a small shop or a large-scale factory, Odoo scales with your operations.

Step 1: Define Your Manufacturing Workflow

Before setting up Odoo Manufacturing, clearly define your production processes. Questions to consider:

• Do you use make-to-stock (MTS) or make-to-order (MTO)?
• Are there workstations or production lines?
• What raw materials are used and how are they tracked?
• Do you have subcontractors?

The answers to these questions determine how you’ll configure Odoo’s Manufacturing module.

Step 2: Install and Configure Odoo Manufacturing Module

1. Login to your Odoo instance.
2. Navigate to Apps, search for Manufacturing, and install the module.
3. Once installed, go to the Manufacturing menu from the dashboard.

After installation, configure the basic settings:

• Go to Manufacturing → Configuration → Settings
• Enable options such as:
• • Work Orders
  • Manufacturing Steps
  • Byproducts
  • Subcontracting
  • Master Production Schedule

Save the settings to activate features you’ll need in your workflow.

Step 3: Create Bill of Materials (BoM)

The Bill of Materials (BoM) is the foundation of Odoo manufacturing processes. It specifies the raw materials, components, and quantities needed to manufacture a finished product.

To create a BoM:

1. Go to Manufacturing → Products → Bills of Materials
2. Click Create.
3. Select the product, add components, and set the quantities.
4. Choose the BoM Type:
5. • Manufacture this Product
   • Kit (used for non-manufacturing assembly)
   • Subcontracting
5. (Optional) Assign the BoM to a specific routing or work center.

BoMs can be multi-level, meaning a component in one BoM might itself be a manufactured product with its own BoM.

Step 4: Define Work Centers and Routings

Work centers represent physical locations (stations, machines, assembly lines), and routings describe the sequence of operations.

1. Create Work Centers:
2. • Go to Manufacturing → Configuration → Work Centers
   • Click Create, add name, time efficiency, cost/hour, and other parameters.
2. Create Routings:
3. • Go to Manufacturing → Configuration → Routings
   • Click Create, define the steps, and assign work centers.
3. Link routings to BoMs to ensure proper process flow.

Using routings allows you to break production into stages, useful for time tracking and bottleneck analysis.

Step 5: Set Up Inventory and Procurement

Manufacturing heavily relies on real-time inventory tracking. Odoo’s Inventory module syncs with Manufacturing for automatic stock movements.

Key Configuration Areas:

• Locations: Define raw materials, finished goods, and transit locations.
• Reordering Rules: Set minimum and maximum stock levels to trigger purchase orders.
• Procurement Strategies:
• • Buy: Purchase from vendors.
  • Manufacture: Produce in-house.
  • Subcontract: Outsource production.

Odoo ensures that once a Manufacturing Order (MO) is confirmed, all necessary components are reserved or replenished.

Step 6: Manage Manufacturing Orders (MOs)

Once the setup is complete, you can begin actual manufacturing operations using Manufacturing Orders.

How to Create a MO:

1. Go to Manufacturing → Operations → Manufacturing Orders
2. Click Create
3. Select the product, quantity, and BoM.
4. Review the list of components and work orders.
5. Click Confirm to reserve raw materials and create work orders.

Work orders will then be routed to their respective work centers for execution.

You can also automate MO creation based on sales orders if you operate under an MTO (make-to-order) model.

Step 7: Track Work Orders in Real-Time

For each MO, Odoo can generate one or more work orders depending on the routing. Workers can interact with Odoo's IoT-enabled terminal to:

• Start and stop operations
• Record time spent
• Register quality checks
• Mark tasks as done

Go to Manufacturing → Operations → Work Orders to manage and monitor progress.

This real-time interaction improves transparency, tracks labor efficiency, and helps eliminate bottlenecks.

Step 8: Implement Quality Control

Odoo allows quality checks during or after manufacturing steps.

1. Install the Quality module via Apps.
2. Go to Quality → Quality Control Points, and create control points for specific operations or products.
3. Define the type of check (e.g., pass/fail, measurement).
4. Link checks to routing steps or work centers.

After the work order step is completed, the quality check is triggered automatically. Failed checks can generate alerts or trigger rework.

Step 9: Automate Maintenance (Optional)

For equipment-intensive operations, you can use the Maintenance module:

• Schedule preventive maintenance based on machine usage.
• Record breakdowns and assign repair teams.
• Track machine availability and downtime.

Go to Maintenance → Equipments, create entries for each machine, and assign them to relevant work centers.

This integration helps minimize unplanned downtimes and keeps production on schedule.

Step 10: Analyze Performance and Reporting

Odoo Manufacturing includes built-in analytics tools to help you make data-driven decisions.

Reports you can generate include:

• Overall Equipment Effectiveness (OEE)
• Work Center Efficiency
• Cost Analysis per Order
• Scrap Rates
• Cycle Times

Go to Manufacturing → Reporting → Manufacturing Orders, and use filters and groupings to slice the data the way you need.

You can also integrate with Odoo’s BI dashboards or external tools like Power BI for deeper insights.

Tips for a Successful Implementation

1. Start Small: Begin with one production line or product to test your setup.
2. Train Your Team: Educate staff on using the interface, especially on the shop floor.
3. Clean Master Data: Ensure that your products, BoMs, routings, and inventory records are accurate.
4. Use Sandbox Testing: Experiment in a test environment before going live.
5. Consider a Partner: For complex needs, working with an experienced Odoo for manufacturing partner like GloriumTech can speed up deployment and reduce risk.

Conclusion

Odoo provides a flexible and powerful environment for manufacturers to digitize and streamline their operations. From BoM creation and work center management to real-time production tracking and quality assurance, Odoo manufacturing offers end-to-end control over your production lifecycle.

Whether you’re running a small workshop or a multi-site factory, this step-by-step guide should help you launch your Odoo Manufacturing setup confidently. The key to success lies in planning, data accuracy, and incremental deployment.

If you're ready to revolutionize your production with Odoo, don’t hesitate to explore implementation services from industry experts. For more tailored support, check out GloriumTech’s Odoo Manufacturing solutions — a trusted partner in helping factories go digital.