Odoo Manufacturing applied to jewelry production
When setting up a production module in an ERP system (Odoo Manufacturing), the first steps, like with any module is to firstly define your work, firmly identify your objectives, and the scope of the program, map out your production flow, and then start designing your module to achieve these goals. Choosing the right system and a good partner to develop your system is a critical part of your success,
Personally open source is my preference as we run quite a unique production system so customisation is a huge part of it, and as we are also in a dynamic business ( but what business is not these days!) manufacturing jewellery from precious metal, as your company evolves an open source system allows you freely to build on cheaply and easily, and not be tied in to any system or organisation. You must plan for your system still to be functional in five years, or even ten years time. Think back to where you, or your business was ten years ago, how different was business then,and now, project that length of time forward, do you have confidence your new system will be able to take you there? You should because if you don’t you are probably wasting your money.
The second part of this criteria is choosing the right partner, for us we wanted somebody who was available to spend significant time in our offices during development to see first hand and get a real view of how we work. This face time is invaluable, it leads to discussions, different points of view, if your development partner has good experience their input will give you new ideas and ways to improve your systems, its a great way to merge thinking and brainstorm new ideas. An important point here though, if your partner is to spend large amounts of time your office, you and your staff must be comfortable and even better enjoy having them with you, if the synergy is good the results will be better – this is a non quantifiable but very important aspect of choosing your software partner.
Below, I have identified and briefly outlined the 4 basic objectives you should look to satisfy when designing and building a production module, these are:-
1) Production order control,tracking and reporting, rejection control capacity measuring
2) Quality control, monitoring and production enhancements
3) Analysis of actual costs compared to estimated costs.
4) Worker/Dept. Key Performance Indicators (KPI’s)
- Production order control, tracking and reporting
Successful production can be defined as as supplying the right product at the right time, at the right cost, and providing a profit. The first steps in this is effectively structuring your system (Odoo Manufacturing) to calculate materials supply time, and available capacity, to enable you to plan a delivery schedule. Once the production commences you will want your system to track progress and create reports that will enable you to monitor progress and be alerted to any problems or hold-ups. How you deal with production rejections needs to be thought out clearly and a policy implemented, this will involve a series of decision boxes deciding on appropriate actions depending on your production type and customer requirements.
- Quality control, monitoring and production enhancements inside Odoo Manufacturing,
We should all learn by our mistakes, a quality control issue has 2 aspects to be addressed, the micro and the macro. The micro situation of how you repair, replace or cancel an item with quality issues really is part of production control as outlined in point 1 above, but the most important part of Quality control, or what I call the macro is analysing what went wrong, how it went wrong, where it went wrong, and what steps can we take to ensure it does not go wrong again. this step requires your system to gather reported data on each quality event and compile a report on it, this will give you objective information on issues within your production system, and allow you to address them an an appropriate manner.
- Analysis of actual costs compared to estimated costs.
Measuring the gap between your estimated costs and your actual costs inside Odoo Manufacturing, has a huge benefit in understanding your profitability and where it comes from, in most industries prices are based on estimated costs, calculated in advance and a sales price is derived from this. In reality it is very rare for your actual costs to run at exactly the same level as your estimations, materials consumed may be more or less efficient, rejections will bump costs up, machine wear and tear may be more or less than expected and labour efficiency may be more or less expensive, reporting on this analysis will help you better understand where your profitability lies, and correct prices that need correcting. It will help you address problem areas and will help to improve the accuracy of your future estimations. A great benefit of this is that you might we more able to safely cut margins to capture business you would otherwise not be confident in quoting on.
- Worker/Dept KPI’s
Setting Key Performance Indicators inside Odoo Manufacturing is a very powerful motivational and correctional tool to have in your management tool box, as long as you are collecting quality data and are able to use it in a good way. Getting it ever so slightly wrong and you can inflict huge damage on your organisation, As good a tool as KPI’s are unless you can gather accurate data and compile exceptional information and utilise it with well set performance parameters the risk for damage is huge. Without a system that can give you a very accurate assessment of of your various departments and individual workforce members you would be well advised not to use KPI’s but if your system can provide you with great informative reports then you are 75% along the line to putting this invaluable tool to use, its just up to management to set appropriate parameters and you are ready to go.
PT Kapit Mas,