Atlantis – IBIM Program at the University of Deusto – OpenERP for Production Planning

OpenERP for Production Planning

OpenERP: Open Source Business Application

Alex Rayón Jerez © 2011Atlantis – IBIM Program at the University of Deusto

29th of March 2011

Atlantis – IBIM Program at the University of Deusto – OpenERP for Production Planning

Main objectives

For any person or/and any organization, this brief presentation about the Open Source Business Application OpenERP will permit students know how this enterprise resource planning tool allows any given company to plan its production

There are so many modules within OpenERP, but we are just going to focus on two of them: manufacturing (allows you to manage your supply chain in a complete and accurate way) and warehouse management (llows multi-warehouse management and is based on hierarchical locations structure, from warehouses to storage bins)

Atlantis – IBIM Program at the University of Deusto – OpenERP for Production Planning

Table of contents

Installation and initial setup Architecture Warehouse management Manufacturing

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Installation and initial setup

The basic install of OpenERP, including all its components, should not take more than 30 minutes under any compatible environement (Windows, GNU/Linux or Mac). Just few steps to take

Basically, initial installation is summarized in two basic steps:

1) Install and configuration of the database server in some of the computation nodes (Windows, GNU/Linux or Mac)

2) There are two alternatives to interact with the database of OpenERP:

Install a web server that can later be used in any web client

Install a desktop client

Developed under GTK (cross-platform widget toolkit for creating graphical user interfaces)

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Architecture

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Warehouse managementIntroduction

The warehouse and logistics management in OpenERP allows multi-warehouse management and it is based on hierarchical locations structure, from warehouses to storage bins

The unique double entry inventory system, allows you to manage your own internal locations as well as external locations like customers, suppliers or manufacturing inventories

It includes:

Warehouse management

Traceability

Inventory control

Products

Automatic Procurements

Reporting

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Warehouse managementWarehouse management

The Incoming Shipments represent all suppliers’ orders to be received, generated by the purchase orders confirmations.

The system allows you to manage back orders, automated inventory valuation, serial numbers, quality control, etc.

By default, you get one incoming shipment by purchase order, but you can also use the menu “Incoming Products” to manage reception control by orders lines (in case of multi orders reception).

The Internal Moves represent internal products moved between several locations in your warehouses. OpenERP creates some internal moves automatically, according to specifications defined on the product or on the location form, but you are also allowed to create them manually for any re-organization purpose inside your warehouses. Outgoing Packings shows packings that will leave the warehouse.

These packings are generated by all confirmed sale orders and can be in two statuses: confirmed or available. A package is in the state “confirmed” when the operation is confirmed but the products are not available on hand.

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Warehouse managementWarehouse management (II)

Delivery Orders According to the logistic flows configuration, you can process customer orders in one, two or more operations. OpenERP proposes a delivery flow in:

One step “Outgoing Packing”: meaning the products are sent in one stock move: directly from your stock to your customer location

Two steps “Outgoing Packing” then “Delivery Order”: meaning the products are sent in two stock moves: first the packing preparation, in case of quality control before sending the packing to the customer, and then the packing delivery

Yet you can also define your own logistics flow, according to your needs

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Warehouse managementWarehouse management (III)

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Warehouse managementTraceability

Stock Moves. You can track all inventory transactions made in the past or planned in the future. Every transaction goes from one location to another, one due to the double entry inventory management of OpenERP. From the product form, you can also obtain the future stock forecast.

Tracking Lots are used to track logistical units which can be containers for a set of products, for example. Every transaction line can belong to one tracking lot that refers to the related box, the pallet or the container. You can get the complete upstream or downstream traceability for each tracking lot.

With Production Lots (usually identified by bar codes stuck on the products) you can efficiently track a single product (in this case, it's often called Serial number) or a set of similar products. You can specify the production lot on every product used in the inventory transactions. You can get the complete upstream or downstream traceability for each production lot.

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Warehouse managementInventory control

The Location Structure menu opens the warehouses structure within your physical locations, partner locations and virtual locations.

By a simple click on a location, you can get a complete inventory location analysis, for a specified period.

Periodical Inventories: You can create your yearly inventory as well as intermediate inventories, for all your products or only for a specific location. OpenERP give you the flexibility to start your inventory from scratch or to get quantities from the system and then change them after checking the actual stock quantity.

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Warehouse managementProducts

In OpenERP, a product is an item you can buy and sell. It can be a raw material, a stockable product, a consumable or a service.

The procurement logistic is managed on the product form (MTS/MTO, ...). The linked locations functionality allows locations to be linked between each other, to define paths followed by products (logistics rules).

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Warehouse managementAutomatic procurements

Minimum Stock rules will help you to avoid out of stock situations.

You can specify the minimum (security stock) and maximum stock quantity that you want to maintain.

When the stock level will reach the minimum limit, it will automatically re-order the right quantity to reach the maximum level you specified.

The system will automatically create a purchase order that will just need to be confirmed by the purchaser.

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Warehouse managementReporting

Inventory Valuation is a report that contains the monetary value of your stock quantity, for each location of your warehouses structure, and for your real as well as virtual stock

Inventory by location gives you a report of the product quantities by location

Dates of Latest inventories by product report give you the list of all inventories by date and product for any control purpose

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Warehouse managementFrom supplier to customer

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Warehouse managementStocks

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Warehouse managementBasic logistics configuration

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Warehouse managementLogistics configuration in a multi-company environment

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Warehouse managementImport/Export

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Warehouse managementWarehouses

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Warehouse managementScheduling

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Warehouse managementManagement of lots and traceability

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Warehouse managementManagement by journal

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Warehouse managementAdvanced elements of Stock Management

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ManufacturingIntroduction

Manufacturing in OpenERP allows you to manage your supply chain in a complete and accurate way

You can manage resources like human resources or machines

You will be able to create multi-level bills of materials and their corresponding routing for assembling or manufacturing finished products

A scheduler tool will then deliver the planning and will launch all manufacturing orders and purchase orders when necessary

A control system will inform you in case of problems during the supply process

Remember Iceland's volcano's case?

Finally, you can analyse your supply chain efficiency thanks to a list of useful reports

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ManufacturingIntroduction (II)

It includes:

Resources

Master Data

Planning

Manufacturing

Control

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ManufacturingIntroduction (III)

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ManufacturingResources

Resources: OpenERP allows you to manage two types of resources; materials and human resources. Resources are defined by their working time and/or their capacity (number of operations done in parallel in a work center, time to complete a production cycle).

Working period allows you to define the period of activity by day.

With Resources Leaves you can specify the days or periods of inactivity for any resource.

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ManufacturingMaster Data

Master Bills of Materials describe the list of raw materials or sub-products used to make a finished product

The hierarchical structure allows you to manage multi-level bill of materials.

Bills of materials components are components and sub-products used in Master bills of materials

Routings define the list of operations to be done in a work center to manufacture or assemble a given product

One bill of material can be linked to one routing, which describes how to manufacture or assemble the product

Work Centers are independent units within the manufacturing facility, consisting of one or several people and/or machines

Work centers are used for the purpose of forecasting and capacity planning

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ManufacturingPlanning

Compute schedulers: the scheduler is the heart of the ERP system in terms of planning.

It organizes manufacturing orders based on priorities (sub-products manufacturing, dates required, etc), launches purchase orders for missing components and assigns products in stock.

The scheduler tool is usually planned to be launched automatically once a day

This frequency can be adjusted depending on your company's sector and needs

You can also run it manually should you need to

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ManufacturingManufacturing

Manufacturing Orders describe the list of raw material that will be used for each stage of production

Raw material can be consumed all at once or progressively during the production process

In addition OpenERP provides scrap management. Partial production is also possible

The procurement order will schedule a proposal for automatic procurement for the product which needs replenishment

This procurement will start a task, either a purchase order form for the supplier, or a production order depending on the product's configuration

Work Orders are manufacturing operations required to produce or assemble products

The different work orders will have different impacts on the costs of manufacturing and planning, depending on the available workload

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ManufacturingControl

Procurement Exceptions: in the MRP process, procurements orders are created to launch manufacturing orders, purchase orders, stock allocations, etc.

Procurement orders are generated automatically by the system and unless there is a problem, the user will not be notified

In case of problems, the system will raise some procurement exceptions to inform the user about blocking problems that need to be resolved manually (like, missing BoM structure or missing supplier).

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ManufacturingReporting

Work Center Load is a projection of loads in a work center for a given a period

The load is expressed in hours (for human resources) or cycles (for machines)

Weekly Stock Value Variation enables you to track the evolution of the stock value, according to the level of manufacturing activities (consumption of raw materials, production of finished goods, added accounting value of stock) as they progress in the transformation process.

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ManufacturingManagement of Production

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ManufacturingBills of Materials

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ManufacturingBills of Materials (II)

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ManufacturingMulti-level Bills of Materials

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ManufacturingManufacturing

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ManufacturingWorkflow for Complete Production

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ManufacturingWorkflow for Complete Production (II)

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ManufacturingProduction order in detail

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ManufacturingScheduling

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ManufacturingCalculation of lead times

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ManufacturingCalculation of lead times (II)

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ManufacturingOperations

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ManufacturingEvents and barcodes

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ManufacturingTreatment of exceptions

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ManufacturingManual procurements

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ManufacturingManual procurements (II)

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ManufacturingManagement of waste and secondary products

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ManufacturingManagement of repairs

Atlantis – IBIM Program at the University of Deusto – OpenERP for Production Planning

ReferencesWeb sites

OpenERP Open Source Business Applications http://www.openerp.com/OpenERP Book http://doc.openerp.com/v6.0/book/index.html#books-linkManufacturing module http://www.openerp.com/products/manufacturingWarehouse management module http://www.openerp.com/products/wms

Atlantis – IBIM Program at the University of Deusto – OpenERP for Production Planning

Copyright (c) 2011 Alex Rayón JerezThis work (but the quoted images, whose rights are reserved to their owners*) is licensed

under the Creative Commons “Attribution-ShareAlike” License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/

*

Atlantis – IBIM Program at the University of Deusto – OpenERP for Production Planning

Profesor: Ing. Alex Rayón JerezBilbao, March 2011

Facultad de Ingeniería, ESIDEUniversidad de Deusto

Departamento de Tecnologías Industriales, Facultad de Ingeniería, Universidad de DeustoAvda. de las Universidades, 24, 48007 Bilbao, País Vasco, España

Alex Rayón Jerez

alex.rayon@deusto.esTo contact me, some other ways :-) http://alexrayon.es/alex-rayon-20/