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Posts Tagged ‘Bill of materials’

Calculating a product cost with OpenERP

Last week I had the opportunity to try a very useful module that, IMHO, should be included in OpenERP core. This module is product_extended and can be found in the extras repository, you can download it with the following command:

#  bzr branch lp:openobject-addons/extra-6.0

This module does many things, among them shows the product last order for a supplier and its date. But what is really interesting is that it calculates a product cost based on its Bill of Materiales. In order to do that, first you need to check the “Compute Standard Price” check box in the product form,

Then, you can either click on the “Compute Standard Price” button or check it in the product bill of materials (a product can have more than one bill of materials). In the latter, you can find the product information on the Bill of Materials form.

You can calculate the standard price by clicking on the “Compute Standard Price” wizard on the right of the BoM form. How is this cost calculated? This is the interesting part, it takes into account the product cost of each product, plus the hours and cycle costs of every workcenter that is involved in its routing. A very useful module.

It needs a minor change in order to make it work with OpenERP 6.1 but you should try it, I highly recommend it

Cheers!

Getting started with the OpenERP MRP module

March 8, 2011 1 comment
MRP

Image via Wikipedia

Getting started with the MRP module can be a daunting enterprise, and it is easy  to get lost at it. But actually it is easier than it seems. I will cover the functional elements you need to get started with the MRP module. I will not cover how to do that, it is already covered in the documentation.

In order to start with the MRP module, you just need four pieces of information:

  1. Product information; the first information item you need. Which products you are planning to sell and procure.
  2. Bill of Materials, sometimes called formulas. They are a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, components, parts and the quantities of each needed to manufacture an end product.
  3. Stock information, pretty much how much inventory you have at hand. If you don’t have this information, you can’t even get started. MRP uses inventory information to determine when and how much to procure.
  4. Master Procurement Schedule; this provides the list of the products you need to procure (either purchase or manufacture) and when you need them. This can be provided by the stock_planning module. Or you could keep an spreadsheet updated with your procurement needs and create the procurement orders from there.

If you are planning on implementing the MRP module, you need to assess the four points I described above. Chances are bill of materials are maintained in paper or spreadsheets. The stock information might be maintained by an information system within the company. But at the end of the day, you will need to assess the quality of the bill of materials. Implementing them will be the longest item in the MRP implementation plan, and you can’t take shortcuts over there. Chances are you will need someone manually checking they are fine, and that you will need to import them manually (which might be the healthiest thing to do).

Well, just wanted to cover some information issues that come up when you are implementing the MRP module.

Cheers,