Key Takeaways
- Master Production Schedule (MPS) balances demand forecasts with inventory and capacity for top-level production planning
- MRP automatically calculates component needs and generates procurement orders based on BOMs, inventory, and lead times
- Multi-level Bills of Materials support complex products with sub-assemblies and intermediate manufacturing steps
- Work center capacity planning identifies bottlenecks before they cause production delays
- Shop floor reporting provides real-time production status, quality data, and inventory updates
Master Production Schedule (MPS)
MPS is the top-level planning tool that determines what to produce, in what quantities, and when. It balances demand signals (sales forecasts, orders) with supply capabilities (inventory, production capacity).
| MPS Input | Source | Purpose |
|---|---|---|
| Sales forecast | CRM pipeline + historical | Demand prediction |
| Confirmed orders | Sales module | Committed demand |
| Current inventory | Stock module | Available supply |
| Safety stock | Configuration | Buffer for variability |
| Lead times | BOM + procurement rules | Timing calculations |
Review and adjust MPS weekly. Compare planned vs. actual production, update forecasts with latest sales data, and rebalance the schedule for the rolling 8-12 week horizon.
Bills of Materials and Product Structure
The BOM defines every component, quantity, and operation required to manufacture a product. Accurate BOMs are the foundation of MRP calculations, cost estimation, and production scheduling.
- Single-level BOM: list of direct components for simple products
- Multi-level BOM: parent and child BOMs for products with sub-assemblies
- Phantom BOM: sub-assembly that is not stocked independently (exploded during MRP)
- Kit BOM: components shipped together without manufacturing (assembled by customer)
- BOM variants: different BOMs for product variants (size, color, configuration)
BOM errors cascade through MRP, causing wrong material orders and production delays. Audit BOMs quarterly and update immediately when engineering changes are made.
Material Requirements Planning
MRP explodes the production plan through BOMs to calculate material requirements. It compares needed quantities against available inventory and scheduled receipts, then generates procurement actions for shortages.
| MRP Action | Trigger | Result |
|---|---|---|
| Purchase order | Buy-type component below reorder | RFQ to vendor |
| Manufacturing order | Make-type component below reorder | Production order |
| Transfer order | Component at another warehouse | Internal stock move |
| Reschedule alert | Lead time cannot meet demand date | Planner notification |
Work Centers and Routing
Work centers represent physical production stations with defined capacity, operating hours, and cost rates. Routings link work centers in sequence to define the manufacturing process for each product.
| Work Center Config | Setting | Impact |
|---|---|---|
| Capacity | Units per hour | Throughput calculation |
| Operating hours | Shifts and schedules | Available time for scheduling |
| Setup time | Minutes per changeover | Planning accuracy |
| Cost per hour | Labor + overhead rate | Production costing |
| Efficiency | OEE percentage | Realistic capacity planning |
Overall Equipment Effectiveness (OEE) combines availability, performance, and quality rates. An 85% OEE means your work center has 85% of its theoretical capacity available. Use OEE to set realistic capacity.
Shop Floor Control and Reporting
Shop floor operators interact with Odoo through tablets or kiosks at each work center. They start/stop operations, report quantities produced, log scrap, and trigger quality checks.
- Operator logs into the work center tablet/kiosk
- Selects the next work order from the queue
- Starts the timer for the operation
- Reports completed quantities and any scrap
- Triggers quality check if configured at this control point
- Marks operation complete and moves to next order
Use barcode scanning for operator login, work order selection, and component consumption. Scanning reduces errors and speeds up shop floor data entry.
Frequently Asked Questions
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