Bill of materials

# Bill of materials

A bill of materials (or BoM for short) documents specific components, along with their
respective quantities, that are needed to produce or repair a product. In Odoo, BoMs serve as
blueprints for manufactured goods and kits, and often include production operations and step-by-step
guidelines, as well.

## BoM setup

To create a BoM , go to Manufacturing app â£ Products â£ Bills of Materials and
click New .
Next, set the BoM Type to Manufacture this Product .
Then, specify required components and, if
necessary, define any manufacturing operations .
Individual BoMs can also be quickly accessed or created by clicking the Bill of
Materials smart button on any product form, as accessible through the Sales , Inventory , and Manufacturing apps, as well as through any internal links where a product is referenced (such
as in a field or a line item).
BoM for Drawer , displaying the Components tab.
`Drawer`
- Basic subcontracting

### Components

In the Components tab of a BoM , specify components used to manufacture the product by
clicking Add a line . From the Components drop-down menu, select from
existing products or create a new product by typing the name and selecting either the Create â â option to quickly add the line item, or the Create and editâ¦ option to add the component and continue to its configuration form.
Optionally, access additional fields by clicking the (settings
adjust) icon to the far-right of the Components tab. Tick the checkboxes for the
following features to enable these columns:
- Apply on Variants : specify which product variant each component is used in. When the field is left
blank, the component is used in all product variants.
Apply on Variants : specify which product variant each component is used in. When the field is left
blank, the component is used in all product variants.
- Consumed in Operation : specify the operation using the component. Useful for
determining manufacturing readiness .
Consumed in Operation : specify the operation using the component. Useful for
determining manufacturing readiness .
- Manual Consumption : tick the checkbox to force operators to check the Consumed checkbox on a manufacturing order (MO). Not doing so triggers the Consumption Warning error message, where the consumed
component quantity must be manually inputted. Otherwise, the operation cannot be completed.
Manual Consumption : tick the checkbox to force operators to check the Consumed checkbox on a manufacturing order (MO).
Not doing so triggers the Consumption Warning error message, where the consumed
component quantity must be manually inputted. Otherwise, the operation cannot be completed.

### Operations

Add an operation to a BoM to specify instructions for production and register time spent on an
operation. To use this feature, first enable the Work Orders feature by going to Manufacturing app â£ Configuration â£ Settings . In the Operations section, tick the Work Orders checkbox to enable the feature.
Work order dependencies
Next, navigate to the BoM by going to Manufacturing app â£ Products â£ Bill of
Materials and selecting the desired BoM . To add a new operation, go to the Operations tab, and click Add a line .
Doing so opens the Create Operations pop-up window, where the various fields of the
operation are configured:
- Operation : name of the operation.
Operation : name of the operation.
- Work Center : select existing locations to perform the operation, or create a new work
center by typing the name and selecting the Create â â option.
Work Center : select existing locations to perform the operation, or create a new work
center by typing the name and selecting the Create â â option.
- Apply on Variants : specify if this operation is only available for certain product
variants. If the operation applies to all product variants, leave this field blank. See also Configuring BoMs for product variants
Apply on Variants : specify if this operation is only available for certain product
variants. If the operation applies to all product variants, leave this field blank.
Configuring BoMs for product variants
- Duration Computation : choose how time spent on the operation is tracked. Opt for Compute based on tracked time to use the operationâs time tracker or Set
duration manually if operators can record and modify time themselves. Choosing the Compute based on tracked time option enables the Based on last
__ work orders option, which automatically estimates the time to complete this operation based on
the last few operations. Choosing Set duration manually enables the Default
Duration field instead.
Duration Computation : choose how time spent on the operation is tracked. Opt for Compute based on tracked time to use the operationâs time tracker or Set
duration manually if operators can record and modify time themselves.
Choosing the Compute based on tracked time option enables the Based on last
__ work orders option, which automatically estimates the time to complete this operation based on
the last few operations. Choosing Set duration manually enables the Default
Duration field instead.
- Default Duration : estimated amount of time to complete the operation; used for planning manufacturing orders and determining work center availability .
Default Duration : estimated amount of time to complete the operation; used for planning manufacturing orders and determining work center availability .
- Company : specify the company the BoM is available in.
Company : specify the company the BoM is available in.
Include operation details in the Work Sheet tab. Choose PDF to attach a file
or Google Slide with public access to share a link. Select Text to type
instructions in the Description text field.
Type / for a list of formatting options and features, including ChatGPT.
`/`
Finally, click Save & Close to close the pop-up window. To add more operations, click Save & New and repeat the same steps above to configure another operation.
Each operation is unique, as it is always exclusively linked to one BoM .
After creating an operation, click the Copy Existing Operations button to choose an
operation to duplicate.

#### Instructions

To add detailed instructions to operations, the Quality app must be installed.
Add specific instructions to an existing operation by clicking the operationâs (list) icon in the Instructions column. The number in the Instructions column shows the number of existing detailed instructions there are for the
operation.
On the Steps dashboard, click New to open a blank quality control point form
where the new manufacturing step can be created. Here, give the specific instruction a Title and set the Type to Instructions . In the Instructions tab of the form, write out the directions for the step in the operation.
Further customizations can be made here on this form, beyond ordinary instructions, to also
include specific types of quality control points that carry specific (or complex) conditions. For
more details about quality control points refer the Instruction check documentation.

### Miscellaneous

The Miscellaneous tab contains more BoM configurations to customize procurement,
calculate costs, and define how components are consumed.
- Manufacturing Readiness : choosing When components for the 1st operation are
available shows the Component Status as a green Not Available , when
only the components that are consumed in the first operation are in stock. This indicates that
although not all components are available, operators can at least begin with the first operation.
Choosing When all components are available displays a red Not
Available component status unless all components are in available. Tip Specify which operation consumes each component on the BoM in the Manual Consumption
field .
Manufacturing Readiness : choosing When components for the 1st operation are
available shows the Component Status as a green Not Available , when
only the components that are consumed in the first operation are in stock. This indicates that
although not all components are available, operators can at least begin with the first operation.
Choosing When all components are available displays a red Not
Available component status unless all components are in available.
Specify which operation consumes each component on the BoM in the Manual Consumption
field .
- Version : displays the current BoM version, visible with the Odoo PLM app installed
for managing BoM changes.
Version : displays the current BoM version, visible with the Odoo PLM app installed
for managing BoM changes.
- Flexible Consumption : specifies if components used can deviate from the quantity
defined on the BoM . Choose Blocked if operators must adhere strictly to the BoM quantity. Otherwise, choose Allowed or Allowed with Warning .
Flexible Consumption : specifies if components used can deviate from the quantity
defined on the BoM . Choose Blocked if operators must adhere strictly to the BoM quantity. Otherwise, choose Allowed or Allowed with Warning .
- Routing : select the preferred warehouseâs manufacturing operation type for products
produced in multiple warehouses. If left blank, this warehouseâs Manufacturing operation type is
used by default.
Routing : select the preferred warehouseâs manufacturing operation type for products
produced in multiple warehouses. If left blank, this warehouseâs Manufacturing operation type is
used by default.
`Manufacturing`
- Analytic Distribution : select pre-created analytic distribution models from the list to automatically record
the cost of manufacturing products in the chosen journal.
Analytic Distribution : select pre-created analytic distribution models from the list to automatically record
the cost of manufacturing products in the chosen journal.
- Manuf Lead Time : define the number of days needed to complete a MO from the date of
confirmation.
Manuf Lead Time : define the number of days needed to complete a MO from the date of
confirmation.
- Days to prepare Manufacturing Order : number of days needed to replenish components, or
manufacture sub-assemblies of the product.
Days to prepare Manufacturing Order : number of days needed to replenish components, or
manufacture sub-assemblies of the product.
- Analytic distribution
Analytic distribution
- Lead times

## Add by-products to BoMs

A by-product is a residual product that is created during production in addition to the main
product of a BoM . Unlike the primary product, there can be more than one by-product on a BoM .
To add by-products to a BoM , first enable the By-Products feature in Manufacturing app â£ Configuration â£ Settings . In the Operations section, tick the checkbox for By-Products to enable the feature.
Once the feature is enabled, add by-products to a BoM by clicking the By-products tab.
Click Add a line , and fill in the By-product , Quantity , and Unit of Measure . Optionally, specify a Produced in Operation for the
by-product.
The by-product, Mush , is created in the Grind grapes operation when producing Red Wine .
`Mush`
`Grindgrapes`
`RedWine`

BoM setup
Components
Operations
Miscellaneous
Add by-products to BoMs


Manufacturing product configuration

# Manufacturing product configuration

In order to manufacture a product in Odoo Manufacturing , the product must be properly configured.
Doing so consists of enabling the Manufacturing route and configuring a bill of materials (BoM)
for the product. Once these steps are completed, the product is selectable when creating a new
manufacturing order.

## Activate the Manufacture route

The Manufacture route is activated for each product on its own product page. To do so, begin by
navigating to Manufacturing â£ Products â£ Products . Then, select an existing
product, or create a new one by clicking New .
On the product page, select the Inventory tab, then enable the Manufacture checkbox in the Routes section. This tells Odoo the product can be manufactured.

### Lot/serial number tracking

The assignment of lots or serial numbers to newly manufactured products is optional. To optionally assign lots or serial numbers to newly manufactured products, go to the Traceability section in the Inventory tab. In the Tracking field, select By Unique Serial
Number or By Lots .
Doing so enables the Lot/Serial Number field on a manufacturing order, or the Register
Production instruction on a work order card in the Shop Floor app.
Lot/Serial Number field on the MO.
Register Production option to generate lot/serial number on a work order card.

## Configure a bill of materials (BoM)

Next, a BoM must be configured for the product so Odoo knows how it is manufactured. A BoM is a
list of the components and operations required to manufacture a product.
To create a BoM for a specific product, navigate to Manufacturing â£ Products â£
Products , then select the product. On the product page, click the Bill of Materials smart button at the top of the page, then select New to configure a new BoM .
On the BoM , the Product field auto-populates with the product. In the Quantity field, specify the number of units that the BoM produces.
Add a component to the BoM by selecting the Components tab and clicking Add
a line . Select a component from the Component drop-down menu, then enter the quantity
in the Quantity field. Continue adding components on new lines until all components have
been added.
Next, select the Operations tab. Click Add a line and a Create
Operations pop-up window appears. In the Operation field, specify the name of the
operation being added (e.g. Assemble, Cut, etc.). Select the work center where the operation will be
carried out from the Work Center drop-down menu. Finally, click Save & Close to finish adding operations, or Save & New to add more.
The Operations tab only appears if the Work Orders setting is enabled. To
do so, navigate to Manufacturing â£ Configuration â£ Settings , then enable the Work Orders checkbox.
The section above provides instructions for creating a basic BoM that allows a product to be
manufactured in Odoo. However, it is by no means an exhaustive summary of all the options
available when configuring a BoM . For more information about bills of materials, see the
documentation on how to create a bill of materials .

Activate the Manufacture route
Lot/serial number tracking
Configure a bill of materials (BoM)


Manufacturing order costs

# Manufacturing order costs

The ability to accurately calculate the cost of manufacturing a product is critical when determining
product profitability. Odooâs Manufacturing app simplifies this calculation by automatically
calculating the cost to complete each manufacturing order (MO), as well as the average production
cost of a product, based on all completed MOs .
Odooâs Manufacturing app distinguishes between the MO cost and the real cost of an MO .
The MO cost represents how much it should cost to complete an MO , based on the
configuration of the productâs bill of materials (BoM). This takes into account the cost and
quantity of components, as well as the cost of completing the necessary operations.
The real cost represents how much it actually costs to complete the MO . A few factors can
cause the real cost to differ from the MO cost. For example, an operation may take longer to
complete than estimated, a greater component quantity might be needed than was specified on the BoM , or the price of components may change during manufacturing.

## Cost configuration

Odoo computes MO costs based on the configuration of the BoM used to manufacture a product. This
calculation includes the cost and quantity of components and operations listed on the BoM , in
addition to the operating costs of the work centers where those operations are carried out, and the
amount paid to each employee who works on an operation.

### Component cost

Component cost is calculated automatically, based on the average purchase cost of a component across
all purchase orders (POs). To view a componentâs cost, navigate to Inventory app â>
Products â> Products , and select a component product. The cost is displayed in the Cost field of the General Information tab, on the componentâs product form.
It is possible to set the cost of a component manually, by clicking the Cost field on
the componentâs product form and entering a value. However, any future POs for the component
override a manually entered value, resetting the Cost field back to an automatically
computed value.

### Work center cost

To set the operating cost for a specific work center, navigate to Manufacturing app
â£ Configuration â£ Work Centers , and select a work center.
To set the cost of operating the work center for one hour, enter a value in the per
workcenter field, located beside the Cost per hour section on the work centerâs General Information tab.
To set the hourly cost of each employee that operates the work center, enter a value in the per employee field, located beside the Cost per hour section on the work
centerâs General Information tab. For example, if 25.00 is entered in the per employee field, it costs $25.00 per hour for each employee working at the work
center.
`25.00`
The value entered in the per employee field is only used to calculate the MO cost,
which is the estimated cost of completing the MO .
The actual cost of completing the MO is represented by the real cost. Instead of using the
value entered in the per employee field, the real cost is calculated using the hourly
cost specific to each employee.
For example, if the per employee cost of a work center is â$50.00â, and an employee
with an hourly cost of â$60.00â completes a work order there, the MO cost (estimated) is
calculated using the $50/hr cost, while the real cost is calculated using the $60/hr cost.
See the employee cost section below for information
on how to set the cost for specific employees.

### Employee cost

To set the hourly cost for a specific employee, navigate to the Employees app, and
select an employee. On the employeeâs form, select the Settings tab, and enter the
employeeâs rate in the Hourly Cost field of the Application Settings section.
As detailed in the work center cost section above, the value entered in the Hourly Cost field on the employeeâs form is used to
calculate the real cost of an MO . The estimated cost of an MO , referred to as the MO cost,
uses the per employee cost set on each work centerâs form.

### BoMconfiguration

Configuring a BoM so Odoo can accurately calculate the cost of MOs that use it requires two
steps. First, components must be added, and the required quantity specified. Second, operations must be added, along with the work centers where they are carried out.
Begin by navigating to Manufacturing app â£ Products â£ Bills of Materials .
Select a BoM , or create a new one by clicking New .
In the Components tab of the BoM form, add each component by clicking Add a
line , selecting the component from the drop-down menu in the Component column, and
entering the quantity in the Quantity column.
In the Operations tab, add an operation by clicking Add a line to open the Create Operations pop-up window. Enter a title for the operation in the Operation field.
Select the Work Center where the operation is carried out. Then, add a Default Duration , which is the estimated amount of time the operation takes to complete.
By default, the Duration Computation field is set to Set duration manually ,
which means that the number entered in Default Duration field is always used as the
expected duration of the operation.
Selecting Compute based on tracked time causes Odoo to automatically compute the Default Duration based on a certain number of work orders, which is set in the Based on field. Before there are work orders to compute this duration, the value in the Default Duration field is used instead.
The hourly cost of operating the work center, and the duration of the operation, are used to
calculate the operationâs cost.
Finally, click Save & Close to add the operation to the BoM , and close the Create Operations pop-up window. Alternatively, click Save & New to add the
operation to the BoM , and open a blank Create Operations pop-up window to add another
operation.
For a full overview of BoM configuration, see the documentation on bills of materials .

## MOoverview

Each MO has an overview page, which lists a variety of information about the MO , including MO cost and real cost. To view the overview for an MO , navigate to Manufacturing
app â£ Operations â£ Manufacturing Orders , and select an MO . Then, click the Overview smart button at the top of the MO .
Both the MO cost and real cost take into account the cost and quantity of components, as well as
the cost of completing each work order. The overview page lists a row for each of these values, with
the sum of them listed at the bottom of the MO Cost and Real Cost columns.
Before work begins on an MO , the MO Cost and Real Cost columns display the
same costs. This is the estimated cost of completing the MO .
However, once work commences, the values in the Real Cost column may begin to diverge
from the values in the MO Cost column. This happens if a different component quantity is
used than was listed on the MO , the duration of a work order is different than expected, or the
hourly cost of the employee performing a work order differs from the employee cost set on the work
center.
Once the MO has been completed by clicking Produce All , the values in the MO Cost column update to match those displayed in the Real Cost column.

## Average manufacturing cost

In addition to the cost of each individual MO for a product, Odoo also tracks the average cost of
manufacturing the product, taking into account the cost of every completed MO . To view this,
navigate to Inventory app â£ Products â£ Products , and select a product.
The manufacturing cost of the product is displayed per unit of measure in the Cost field, located in the General Information tab. The value continues to update as the
costs of additional MOs are factored into the average cost.
To the right of the Cost field is a Compute Price from BoM button, which
only appears for products with at least one BoM . Click this button to reset the cost of the
product to the expected cost, which only takes into account the components and operations listed on
the BoM .
Be aware that clicking Compute Price from BoM does not set the price permanently. The
cost continues to update based on the average of the BoM price and the real cost of any future MOs .
Example workflow: manufacturing cost
Golf product manufacturer Fairway Fields produces a variety of golf products, including an
indoor putting green . They have configured a BoM for the putting green, so Odoo automatically
calculates the manufacturing cost of each putting green MO .
The BoM lists two components:
- One unit of green felt , which costs $20.00.
One unit of green felt , which costs $20.00.
- One unit of a rubber pad , which costs $30.00.
One unit of a rubber pad , which costs $30.00.
The BoM also lists four operations, all of which are carried out at Assembly Station 1 , which
has an hourly operating cost of $30.00. Those operations are as follows:
- Cut felt : default duration of seven minutes, for a total cost of $3.50.
Cut felt : default duration of seven minutes, for a total cost of $3.50.
- Cut rubber pad : default duration of five minutes, for a total cost of $2.50.
Cut rubber pad : default duration of five minutes, for a total cost of $2.50.
- Attach pad to felt : default duration of 15 minutes, for a total cost of $7.50.
Attach pad to felt : default duration of 15 minutes, for a total cost of $7.50.
- Cut holes : default duration of three minutes, for a total cost of $1.50.
Cut holes : default duration of three minutes, for a total cost of $1.50.
Altogether, the components required to produce one putting green cost $50.00, and the operations
required cost $15.00, for a total manufacturing cost of $65.00. This cost is reflected in the Cost field on the putting greenâs product form.
Fairway Fields confirms an MO for one putting green. Before manufacturing starts, the MO overview lists a cost of $65.00 in both the MO Cost and Real Cost fields.
`$65.00`
Manufacturing begins, and the operations take ten minutes longer than expected, for a total
manufacturing time of 40 minutes. This deviation from the BoM is reflected on the MO overview, which now lists a Real Cost of $70.00 .
`$70.00`
Once manufacturing is finished, and the MO is marked as Done , the MO overview updates
again, so the values in the MO Cost and Real Cost columns match, each
displaying a value of $70.00 .
`$70.00`
On the putting greenâs product page, the Cost field now displays a cost of $67.50 ,
the average of the original cost of $65.00 and the real cost of $70.00 from the MO .
`$67.50`

Cost configuration
Component cost
Work center cost
Employee cost
BoMconfiguration
MOoverview
Average manufacturing cost


One-step manufacturing

# One-step manufacturing

Odoo Manufacturing allows users to manufacture products using one, two, or three steps. When using
one-step manufacturing, Odoo creates a manufacturing order (MO), but does not generate transfers for
the movement of components out of inventory or finished products into stock. Inventory counts still
update based on the number of components used and products manufactured, but the act of transferring
them to and from inventory is not tracked.
The number of steps used in manufacturing is set at the warehouse level, allowing for each
warehouse to use a different number of steps. To change the number of steps used for a specific
warehouse, begin by navigating to Inventory â£ Configuration â£ Warehouses ,
and then select a warehouse from the Warehouses screen.
On the Warehouse Configuration tab, find the Manufacture radio input
field, and select one of the three options: Manufacture (1 step) , Pick
components and then manufacture (2 steps) , or Pick components, manufacture and then
store products (3 steps) .
Products must be properly configured before they can be manufactured in Odoo. For details on how
to do so, see the documentation on how to configure a product for manufacturing .

## Create manufacturing order

To manufacture a product in Odoo Manufacturing , begin by navigating to Manufacturing â£ Operations â£ Manufacturing Orders , and then click New to create a new MO .
On the new MO , select the product to be produced from the Product drop-down menu. The Bill of Material field auto-populates with the associated bill of materials (BoM).
If a product has more than one BoM configured for it, the specific BoM can be selected in the Bill of Material field, and the Product field auto-populates with the
associated product.
After a BoM has been selected, the Components and Work Orders tabs
auto-populate with the components and operations specified on the BoM . If additional components or
operations are required for the MO being configured, add them to the Components and Work Orders tabs by clicking Add a line .
Finally, click Confirm to confirm the MO .

## Process manufacturing order

An MO is processed by completing all of the work orders listed under its Work Orders tab. This can be done on the MO itself, or from the work order tablet view.

### Basic workflow

To complete work orders from the MO itself, begin by navigating to Manufacturing
â£ Operations â£ Manufacturing Orders , and then select an MO .
On the MO page, select the Work Orders tab. Once work begins on the first work order
that needs to be completed, click the Start button for that work order. Odoo Manufacturing then starts a timer that keeps track of how long the work order takes to complete.
When the work order is completed, click the Done button for that work order. Repeat the
same process for each work order listed on the Work Orders tab.
After completing all of the work orders, click Produce All at the top of the screen to
mark the MO as Done , and register the manufactured product(s) into inventory.

### Shop Floor workflow

To complete the work orders for an MO using the Shop Floor module, begin by navigating to Manufacturing â£ Operations â£ Manufacturing Orders , and then select an MO .
On the MO , click on the Work Orders tab, and then select the âï¸ (square
with arrow coming out of it) button on the line of the first work order to be processed. Doing so
opens a Work Orders pop-up window, with details and processing options for the work
order.
On the pop-up window, select the Open Shop Floor button at the top-left of the window to
open the Shop Floor module.
When accessed directly from a specific work order within an MO , Shop Floor defaults to the page
for the work center where the work order is configured to be carried out. The page shows a card for
the work order that displays the MO number, the product and number of units to be produced, and
the steps required to complete the work order.
A work order is processed by completing each step listed on its card. This can be done by clicking
on a step and following the instructions listed on the pop-up window that appears. Once the step is
completed, click Next to move on to the next step, if any are required.
Alternatively, work order steps can be completed by clicking the checkbox that appears on the right
side of the stepâs line on the work order card. When using this method, the step is automatically
marked as completed, without a pop-up window appearing.
The final step on a work order card is titled Register Production . This step is used to register
the number of product units that were produced. If the number produced is equal to the number that
the MO was created for, click the # Units button on the right side of the line to
automatically register that number as the quantity produced.
If a different number must be entered, click the Register Production step to open a
pop-up window. Enter the number of units produced in the Units field, and then click Validate to register that number.
The Register Production step appears on every work order card. It must be completed for the
first work order that is processed. After doing so, the step appears as already completed for
each remaining work order in the MO .
After completing all of the steps for a work order, a button appears on the footer of the work order
card. If any other work orders must be completed before the MO can be closed, the button is titled Mark as Done . If there are no additional work orders to complete, the button is titled Close Production .
Clicking Mark as Done causes the work order card to fade away. Once it disappears
completely, the work orderâs status is marked as Finished on the MO , and the next work order
appears in the Shop Floor module, on the page of the work center where it is configured to be
carried out. Any additional work orders can be processed using the instructions detailed in this
section.
Clicking Close Production causes the work order card to fade away. Once it disappears,
the MO is marked as Done , and the units of the product that were produced are entered into
inventory.
After clicking Mark as Done or Close Production , each button is replaced by
an Undo button. Click the Undo button before the work order card fades away
to keep the work order open.
This section details the basic workflow for processing an MO in the Shop Floor module. For a
more in-depth explanation of the module and all of its features, please see the Shop Floor
overview documentation.

Create manufacturing order
Process manufacturing order
Basic workflow
Shop Floor workflow


Three-step manufacturing

# Three-step manufacturing

Odoo Manufacturing allows users to manufacture products using one, two, or three steps. When using
three-step manufacturing, Odoo creates a pick components transfer, a manufacturing order (MO), and a
store finished products transfer, and updates inventory counts based on the number of components
removed, and finished products created.
The number of steps used in manufacturing is set at the warehouse level, allowing for each
warehouse to use a different number of steps. To change the number of steps used for a specific
warehouse, begin by navigating to Inventory â£ Configuration â£ Warehouses ,
and then select a warehouse from the Warehouses screen.
On the Warehouse Configuration tab, find the Manufacture radio input
field, and select one of the three options: Manufacture (1 step) , Pick
components and then manufacture (2 steps) , or Pick components, manufacture and then
store products (3 steps) .
Products must be properly configured before they can be manufactured in Odoo. For details on how
to do so, see the documentation on how to configure a product for manufacturing .

## Create manufacturing order

To manufacture a product in Odoo Manufacturing , begin by navigating to Manufacturing â£ Operations â£ Manufacturing Orders , and then click New to create a new MO .
On the new MO , select the product to be produced from the Product drop-down menu. The Bill of Material field auto-populates with the associated Bill of Materials (BoM).
If a product has more than one BoM configured for it, the specific BoM can be selected in the Bill of Material field, and the Product field auto-populates with the
associated product.
After a BoM has been selected, the Components and Work Orders tabs
auto-populate with the components and operations specified on the BoM . If additional components or
operations are required for the MO being configured, add them to the Components and Work Orders tabs by clicking Add a line .
Finally, click Confirm to confirm the MO .

## Process pick components transfer

After confirming a three-step MO , a Transfers smart button appears at the top of the
page. Click it to be taken to the Transfers page for the MO . The page lists two
transfers: WH/PC/XXXXX (the pick components transfer), and WH/SFP/XXXXX (the store finished
products transfer).
Select WH/PC/XXXXX to open the pick components transfer for the MO . This transfer is
used to track the movement of components from the locations where they are stored to the location
where they are used to manufacture the product.
After transferring the components out of their storage location, click Validate at the
top of the transfer, followed by Apply on the Immediate Transfer? pop-up
window that appears. Doing so marks the transfer as Done , and updates inventory counts
to reflect the quantity of components transferred.
Finally, return to the MO by clicking the WH/MO/XXXXX breadcrumb at the top of the
page.

## Process manufacturing order

An MO is processed by completing all of the work orders listed under its Work Orders tab. This can be done on the MO itself, or from the work order tablet view.

### Basic workflow

To complete work orders from the MO itself, begin by navigating to Manufacturing
â£ Operations â£ Manufacturing Orders , and then select a manufacturing order.
On the MO page, select the Work Orders tab. Once work begins on the first work order
that needs to be completed, click the Start button for that work order. Odoo Manufacturing then starts a timer that keeps track of how long the work order takes to complete.
When the work order is completed, click the Done button for that work order. Repeat the
same process for each work order listed on the Work Orders tab.
After completing all of the work orders, click Produce All at the top of the screen to
mark the MO as Done , and register the manufactured product(s) into inventory.

### Shop Floor workflow

To complete the work orders for an MO using the Shop Floor module, begin by navigating to Manufacturing â£ Operations â£ Manufacturing Orders , and then select an MO .
On the MO , click on the Work Orders tab, and then select the âï¸ (square
with arrow coming out of it) button on the line of the first work order to be processed. Doing so
opens a Work Orders pop-up window, with details and processing options for the work
order.
On the pop-up window, select the Open Shop Floor button at the top-left of the window to
open the Shop Floor module.
When accessed directly from a specific work order within an MO , Shop Floor defaults to the page
for the work center where the work order is configured to be carried out. The page shows a card for
the work order that displays the MO number, the product and number of units to be produced, and
the steps required to complete the work order.
A work order is processed by completing each step listed on its card. This can be done by clicking
on a step, and following the instructions listed on the pop-up window that appears. Once the step is
completed, click Next to move on to the next step, if any are required.
Alternatively, work order steps can be completed by clicking the checkbox that appears on the right
side of the stepâs line on the work order card. When using this method, the step is automatically
marked as completed, without a pop-up window appearing.
The final step on a work order card is titled Register Production . This step is used to register
the number of product units that were produced. If the number produced is equal to the number that
the MO was created for, click the # Units button on the right side of the line to
automatically register that number as the quantity produced.
If a different number must be entered, click the Register Production step to open a
pop-up window. Enter the number of units produced in the Units field, and then click Validate to register that number.
The Register Production step appears on every work order card. It must be completed for the
first work order that is processed. After doing so, the step appears as already completed for
each remaining work order in the MO .
After completing all of the steps for a work order, a button appears on the footer of the work order
card. If any other work orders must be completed before the MO can be closed, the button is titled Mark as Done . If there are no additional work orders to complete, the button is titled Close Production .
Clicking Mark as Done causes the work order card to fade away. Once it disappears
completely, the work orderâs status is marked as Finished on the MO , and the next work order
appears in the Shop Floor module, on the page of the work center where it is configured to be
carried out. Any additional work orders can be processed using the instructions detailed in this
section.
Clicking Close Production causes the work order card to fade away. Once it disappears,
the MO is marked as Done , and the units of the product that were produced are entered into
inventory.
After clicking Mark as Done or Close Production , each button is replaced by
an Undo button. Click the Undo button before the work order card fades away
to keep the work order open.
This section details the basic workflow for processing an MO in the Shop Floor module. For a
more in-depth explanation of the module and all of its features, please see the Shop Floor
overview documentation.

## Process finished product transfer

After completing the MO , return to the orderâs Transfers page by clicking the Transfers button at the top of the order. This time, select WH/SFP/XXXXX to
open the store finished products transfer. This transfer is used to track the movement of finished
products from the location where they were manufactured to the location where they are stored.
After transferring the finished products to their storage location, click Validate at
the top of the transfer, followed by Apply on the Immediate Transfer? pop-up
window that appears. Doing so marks the transfer as Done , and updates inventory counts
to reflect the quantity of finished products transferred.

Create manufacturing order
Process pick components transfer
Process manufacturing order
Basic workflow
Shop Floor workflow
Process finished product transfer


Two-step manufacturing

# Two-step manufacturing

Odoo Manufacturing allows users to manufacture products using one, two, or three steps. When using
two-step manufacturing, Odoo creates a manufacturing order (MO) and a pick components transfer, but
does not generate a transfer for the movement of finished products into stock. Inventory counts
still update based on the number of products manufactured, but the act of transferring them to and
from inventory is not tracked.
The number of steps used in manufacturing is set at the warehouse level, allowing for each
warehouse to use a different number of steps. To change the number of steps used for a specific
warehouse, begin by navigating to Inventory â£ Configuration â£ Warehouses ,
and then select a warehouse from the Warehouses screen.
On the Warehouse Configuration tab, find the Manufacture radio input
field, and select one of the three options: Manufacture (1 step) , Pick
components and then manufacture (2 steps) , or Pick components, manufacture and then
store products (3 steps) .
Products must be properly configured before they can be manufactured in Odoo. For details on how
to do so, see the documentation on how to configure a product for manufacturing .

## Create manufacturing order

To manufacture a product in Odoo Manufacturing , begin by navigating to Manufacturing â£ Operations â£ Manufacturing Orders , and then click New to create a new MO .
On the new MO , select the product to be produced from the Product drop-down menu. The Bill of Material field auto-populates with the associated Bill of Materials (BoM).
If a product has more than one BoM configured for it, the specific BoM can be selected in the Bill of Material field, and the Product field auto-populates with the
associated product.
After a BoM has been selected, the Components and Work Orders tabs
auto-populate with the components and operations specified on the BoM . If additional components or
operations are required for the MO being configured, add them to the Components and Work Orders tabs by clicking Add a line .
Finally, click Confirm to confirm the MO .

## Process pick components transfer

After confirming a two-step MO , a Transfers smart button appears at the top of the
page. Click it to open the pick components transfer for the MO . This transfer is used to track the
movement of components from the locations where they are stored to the location where they are used
to manufacture the product.
After transferring the components out of their storage location, click Validate at the
top of the transfer, followed by Apply on the Immediate Transfer? pop-up
window that appears. Doing so marks the transfer as Done , and updates inventory counts
to reflect the quantity of components transferred.
Finally, return to the MO by clicking the WH/MO/XXXXX breadcrumb at the top of the
page.

## Process manufacturing order

An MO is processed by completing all of the work orders listed under its Work Orders tab. This can be done on the MO itself, or from the work order tablet view.

### Basic workflow

To complete work orders from the MO itself, begin by navigating to Manufacturing
â£ Operations â£ Manufacturing Orders , and then select an MO .
On the MO page, select the Work Orders tab. Once work begins on the first work order
that needs to be completed, click the Start button for that operation. Odoo Manufacturing then starts a timer that keeps track of how long the work order takes to complete.
When the work order is completed, click the Done button for that work order. Repeat the
same process for each work order listed on the Work Orders tab.
After completing all of the work orders, click Produce All at the top of the screen to
mark the MO as Done , and register the manufactured product(s) into inventory.

### Shop Floor workflow

To complete the work orders for an MO using the Shop Floor module, begin by navigating to Manufacturing â£ Operations â£ Manufacturing Orders , and then select an MO .
On the MO , click on the Work Orders tab, and then select the âï¸ (square
with arrow coming out of it) button on the line of the first work order to be processed. Doing so
opens a Work Orders pop-up window, with details and processing options for the work
order.
On the pop-up window, select the Open Shop Floor button at the top-left of the window to
open the Shop Floor module.
When accessed directly from a specific work order within an MO , Shop Floor defaults to the page
for the work center where the work order is configured to be carried out. The page shows a card for
the work order that displays the MO number, the product and number of units to be produced, and
the steps required to complete the work order.
A work order is processed by completing each step listed on its card. This can be done by clicking
on a step and following the instructions listed on the pop-up window that appears. Once the step is
completed, click Next to move on to the next step, if any are required.
Alternatively, work order steps can be completed by clicking the checkbox that appears on the right
side of the stepâs line on the work order card. When using this method, the step is automatically
marked as completed, without a pop-up window appearing.
The final step on a work order card is titled Register Production . This step is used to register
the number of product units that were produced. If the number produced is equal to the number that
the MO was created for, click the # Units button on the right side of the line to
automatically register that number as the quantity produced.
If a different number must be entered, click the Register Production step to open a
pop-up window. Enter the number of units produced in the Units field, and then click Validate to register that number.
The Register Production step appears on every work order card. It must be completed for the
first work order that is processed. After doing so, the step appears as already completed for
each remaining work order in the MO .
After completing all of the steps for a work order, a button appears on the footer of the work order
card. If any other work orders must be completed before the MO can be closed, the button is titled Mark as Done . If there are no additional work orders to complete, the button is titled Close Production .
Clicking Mark as Done causes the work order card to fade away. Once it disappears
completely, the work orderâs status is marked as Finished on the MO , and the next work order
appears in the Shop Floor module, on the page of the work center where it is configured to be
carried out. Any additional work orders can be processed using the instructions detailed in this
section.
Clicking Close Production causes the work order card to fade away. Once it disappears,
the MO is marked as Done , and the units of the product that were produced are entered into
inventory.
After clicking Mark as Done or Close Production , each button is replaced by
an Undo button. Click the Undo button before the work order card fades away
to keep the work order open.
This section details the basic workflow for processing an MO in the Shop Floor module. For a
more in-depth explanation of the module and all of its features, please see the Shop Floor
overview documentation.

Create manufacturing order
Process pick components transfer
Process manufacturing order
Basic workflow
Shop Floor workflow


Allocation reports

# Allocation reports

When fulfilling sales orders (SOs), or sourcing components for manufacturing orders (MOs), it is
sometimes necessary to prioritize one SO or MO over another. In situations where there is
insufficient stock on-hand to fulfill every SO or MO , ensuring that products and components are
reserved for priority orders is essential.
In Odoo Manufacturing , allocation reports are used on MOs to assign products to specific sales
orders SOs , or components to specific MOs . This ensures the products or components are available
for those orders, and are not used by mistake.

## Configuration

To use allocation reports, the Allocation Report for Manufacturing Orders feature must be
enabled. To do so, navigate to Manufacturing app â£ Configuration â£ Settings ,
and tick the checkbox next to Allocation Report for Manufacturing Orders . Then, click Save .
For products that are sold, it is also necessary to configure them so they can be included in SOs .
To do so, begin by navigating to Inventory â£ Products â£ Products , and select a
product. Under the Product Name field on the product form, make sure that the Can Be Sold checkbox is ticked.

## Allocate products

To allocate products or components from an MO to an SO , or to a different MO , begin by
navigating to Manufacturing app â£ Operations â£ Manufacturing Orders . Click New to create a new MO .
On the MO form, select a product in the Product field, and specify the quantity to be
produced in the Quantity field. Finally, click Confirm to confirm the MO .
The rest of the allocation workflow depends on the current on-hand quantity of the product being
manufactured, and whether or not there are any SOs or MOs which require the product, but have
not already been allocated units.
If there are existing SOs and MOs that require the product, and there are too few units
of the product on-hand to fulfill those orders, then an Allocation smart
button appears at the top of the page as soon as the MO is confirmed.
If there are existing SOs and MOs that require the product, and there are enough units
of the product on-hand to fulfill those orders, then the Allocation smart button only appears at the top of the page once the MO has been marked as done, by clicking Produce All .
If there are not any existing SOs and MOs that require the product, the Allocation smart button does not appear, even when the MO has been marked as done.
Click the Allocation smart button to open the MRP Reception
Report for the MO . This report lists open delivery orders or MOs , depending on the type of
product produced in the original MO .

### Allocate to delivery order

If the MO contains a finished product, the report lists any open delivery orders for which
quantities of the product have yet to be reserved.
An MO is created to produce three units of a rocking chair . Clicking the Allocation smart button on the MO opens an allocation report that lists open
delivery orders that require one or more rocking chairs.
Click the Assign All button to the right of a specific order to assign products for each
quantity required to fulfill that order.
If an order requires one quantity of four units of the product, and one quantity of one unit of
the product, clicking Assign All assigns five units of the product to fulfill both
quantities.
Alternatively, click Assign next to a specific quantity to only assign products to that
quantity, and not any others in the order.
If an order requires one quantity of four units of the product, and one quantity of one unit of
the product, clicking Assign next to the quantity of one unit assigns a product to
that quantity, but leaves the quantity of four units without any products assigned.

### Allocate to MO

If the MO contains a component, the report lists any open MOs for which quantities of the
component have yet to be reserved.
An MO is created to produce three units of wood , which is used as a component for the rocking chair product. Clicking the Allocation smart button on the MO opens an
allocation report that lists open rocking chair MOs that require one or more pieces of wood.
Click the Assign All or Assign button to the right of a specific MO to
assign components to that MO .

### Unassign products

After assigning products to a quantity within a delivery order, or components to an MO ,
the Assign button turns into an Unassign button. Click Unassign to unreserve the assigned products from that quantity, making them available for other quantities.

### Print labels

After clicking Assign All or Assign , the Print Labels or Print Label button to the right of either button becomes selectable. Selecting either
button generates and downloads a PDF document with one label for each product that was assigned.
These labels are used to designate each product as being reserved for that specific order.

Configuration
Allocate products
Allocate to delivery order
Allocate to MO
Unassign products
Print labels


Delays

# Delays

Odooâs Manufacturing app displays delays in manufacturing orders through the Delayed
Productions filter. If the MO âs end date exceeds its deadline, the deadline is highlighted in red
to draw attention to the delay.

## Deadline calculation

The MO deadline depends on how the MO was created, and is calculated as follows:
- Make To Order : the MO deadline is the Sales Order Delivery Date .
Make To Order : the MO deadline is the Sales Order Delivery Date .
- Replenishment : the MO deadline is today + Manufacturing Lead Time .
Replenishment : the MO deadline is today + Manufacturing Lead Time .
- Manually created MO : the deadline field remains empty.
Manually created MO : the deadline field remains empty.
The MO deadline is not the same as the MO end date .
The end date is computed as:

## Filters

Several additional filters are available to help track delays:
- Delayed Productions : the MO âs scheduled start date is later than the deadline.
Delayed Productions : the MO âs scheduled start date is later than the deadline.
- Late : the MO âs scheduled end date exceeds the deadline, highlighted in red.
Late : the MO âs scheduled end date exceeds the deadline, highlighted in red.
- Late Availability : one or more required components are not available before the
deadline. For example, a confirmed purchase order or manufacturing order for components is
scheduled to end after the MO deadline.
Late Availability : one or more required components are not available before the
deadline. For example, a confirmed purchase order or manufacturing order for components is
scheduled to end after the MO deadline.
- Components Available : all components are available to begin production.
Components Available : all components are available to begin production.

## Use case

Consider an MO with a deadline of September 17th :
- If production on the MO starts after September 17th, it appears in the Delayed
Productions filter.
If production on the MO starts after September 17th, it appears in the Delayed
Productions filter.
- If required components are scheduled to arrive after September 17th, the MO appears in the Late Availability filter.
If required components are scheduled to arrive after September 17th, the MO appears in the Late Availability filter.
- If the MO has a scheduled end date after September 17th, it appears in the Late filter.
If the MO has a scheduled end date after September 17th, it appears in the Late filter.
By combining these indicators, planners can quickly identify where production is at risk of missing
delivery commitments.


Overall equipment effectiveness

# Overall equipment effectiveness

In Odooâs Manufacturing app, overall equipment effectiveness (OEE) represents the amount of time
a work center is fully productive. OEE is displayed as a percentage of the total time a work
center is active.
Fully productive time is considered to be time when the work center is operational and processing work orders that have not exceeded their expected duration .
OEE helps manufacturing teams understand the efficiency of work centers, and the causes of
manufacturing downtime.
Since OEE tracks work center productivity, using it requires enabling the work centers feature
in the settings of the Manufacturing app.
To do so, navigate to Manufacturing app â£ Configuration â£ Settings , and tick
the checkbox next to Work Orders , under the Operations heading. Then,
click Save .

## Efficiency standards

For OEE to accurately reflect the percentage of fully productive time for a work center, the work
center must be properly configured with the correct productivity metrics. These include the work
centerâs time efficiency , capacity , and OEE target .

### Time efficiency

Time efficiency represents the efficiency of a work center when processing work orders, and is
represented as a percentage. A time efficiency value of 100% signifies that the work center
processes work orders at the speed of the expected duration, as listed on a productâs BoM . A value
less than or greater than 100% signifies that the work center processes work orders slower or faster
than an operationâs expected duration, respectively.
To set the time efficiency for a work center, navigate to Manufacturing app â£
Configuration â£ Work Centers , and select a work center. On the General Information tab, enter a numerical value in the Time Efficiency field.
Manufacturing a chair product requires two operations: cut and assemble . The productâs BoM lists an expected duration of 30 minutes for each operation.
The cut operation is carried out at the cut station work center, which has a time efficiency
value of 50%. This means it takes twice as long to complete the operation, for a total time of
one hour.
The assemble operation is carried out at the assembly line work center, which has a time
efficiency value of 200%. This means it takes half as long to complete the operation, for a total
time of 15 minutes.

### Capacity

Capacity represents how many units of a product can be produced in parallel at a work center. The
duration of work orders for multiple units increases or decreases, based on how many units the work
center can handle.
To set the capacity for a work center, navigate to Manufacturing app â£
Configuration â£ Work Centers , and select a work center. On the General Information tab, enter a numerical value in the Capacity field.
A drill station work center has a capacity of one unit. An MO is confirmed for 10 units of a chair , a product manufactured using the drill station.
Since there are ten times as many units to produce than the work center can handle at once, the
operation time is ten times the duration listed on the productâs BoM .

### OEEtarget

The OEE target is the goal for how much of a work centerâs operating time should be fully
productive time. It is displayed as a percentage, and should only be set as high as 100% .
`100%`
To set the OEE target for a work center, navigate to Manufacturing app â£
Configuration â£ Settings â£ Work Centers , and select a work center. On the General
Information tab, enter a numerical value of 100.00 or less in the OEE Target field.
`100.00`

## CalculatingOEE

OEE is represented as a percentage value between zero and 100. The value signifies the amount of
time that a work center was fully productive. The remainder signifies the amount of time that the
work center was operating at less than full efficiency. This can occur for a number of reasons,
including reduced speed , material availability , and equipment failure .

### Fully productive time

For a work center to be considered fully productive, it must be able to receive work orders, have
the components necessary to process work orders, and be operating within the expected duration of
the work order it is processing.
An assembly line work center is not blocked, and receives a work order to assemble a bicycle .
The required components are available, so production begins as soon as they are picked and
delivered to the work center. The work order has an expected duration of 30 minutes, and is
completed in 27 minutes. All of this time is considered fully productive time.

### Reduced speed

When a work center is operating at reduced speed, it means that it is processing a work order that
has exceeded its expected duration. While the work center may be operational, this is not considered
fully productive time.
A cutting station work center receives a work order to cut boards for a table . The expected
duration of the work order is 15 minutes. The work order ends up taking 18 minutes to complete.
The work center is considered to have been operating at reduced speed during the three minutes
that exceeded the expected duration.

### Material availability

Material availability refers to situations where a work center is able to accept a work order, but
the required components are not available. This can occur because the components are not in stock,
or are reserved for a different order.
Manufacturing of a bench requires 20 units of wood . A manufacturing order (MO) is confirmed
for 10 units of the bench, but there is not enough wood in stock to begin manufacturing. The time
it takes to acquire the wood is recorded as material availability downtime.

### Equipment failure

Equipment failure signifies any period of time when a work center is unusable due to maintenance
issues with its equipment. This can be due to equipment breaking down, or when a work center is shut
down for scheduled maintenance. In these cases, a work center can be blocked using a maintenance request .
The drill at a drill station work center breaks down, causing the work center to be unusable. A
maintenance request is created to fix the drill, and the work center is blocked from receiving
work orders. It takes two hours to fix the drill, and make the work center available again. This
two-hour period is recorded as equipment failure downtime.

## OEEreporting

To view OEE reporting metrics for every work center, navigate to Manufacturing app
â£ Reporting â£ Overall Equipment Effectiveness . This page shows the metrics for each work center
with OEE data.
Alternatively, to see OEE reporting metrics for a single work center, navigate to Manufacturing app â£ Configuration â£ Work Centers , and select a work center. At
the top of the work centerâs form, click the OEE smart button.
By default, the main OEE reporting page shows data in a bar chart, while the page for a specific
work center shows it in a pie chart. To select a different chart type on either page, click the (bar chart) , (line chart) , or (pie chart) button above the displayed chart.
It is also possible to see OEE data in a pivot view, or a list displaying each time entry, by
clicking the (pivot view) or (list
view) buttons at the top-right corner of the page.

Efficiency standards
Time efficiency
Capacity
OEEtarget
CalculatingOEE
Fully productive time
Reduced speed
Material availability
Equipment failure
OEEreporting


Production analysis

# Production analysis

The Production Analysis report provides statistics about products manufactured using Odooâs Manufacturing app. The report is useful when trying to understand production costs, manufacturing
durations, and other important statistics about manufactured products.
To open the Production Analysis report, navigate to Manufacturing app â£ Reporting
â£ Production Analysis .
The Production Analysis report is one of many reports available across the Odoo app
suite. This documentation only covers the measures specific to the Production
Analysis report, along with a few use case examples.
For a full overview of the basic features available in most Odoo reports, see the documentation
on reporting essentials .

## Measures

Measures are the datasets that can be selected in the Production Analysis report. Each
dataset represents a specific statistic about MOs in the database. Choose a measure by clicking
the Measures button, and selecting one of the options from the
drop-down menu:
The options displayed in the Measures drop-down menu, and the
order they appear in, differ depending on the filters, groupings, and comparisons enabled in the Searchâ¦ bar. By default, the available measures appear as follows:
- Average Employee Cost/Unit : the average cost paid to employees to produce one unit of
the product.
Average Employee Cost/Unit : the average cost paid to employees to produce one unit of
the product.
- By-Products Total Cost : the total value of all by-products created by manufacturing
the product.
By-Products Total Cost : the total value of all by-products created by manufacturing
the product.
- Component Cost/Unit : the average cost of the components required to produce one unit
of the product.
Component Cost/Unit : the average cost of the components required to produce one unit
of the product.
- Cost/Unit : the average cost of producing one unit of the product, including component,
employee, operation, and subcontracting costs.
Cost/Unit : the average cost of producing one unit of the product, including component,
employee, operation, and subcontracting costs.
- Duration of Operations/Unit : the average total duration of operations required to
produce one unit of the product.
Duration of Operations/Unit : the average total duration of operations required to
produce one unit of the product.
- Quantity Demanded : the total number of units of the product included in MOs .
Quantity Demanded : the total number of units of the product included in MOs .
- Quantity Produced : the total number of units of the product that have actually been
produced.
Quantity Produced : the total number of units of the product that have actually been
produced.
- Total Component Cost : the total amount spent on the productâs components, across every MO for the product.
Total Component Cost : the total amount spent on the productâs components, across every MO for the product.
- Total Cost : the total amount spent manufacturing every unit of the product produced so
far.
Total Cost : the total amount spent manufacturing every unit of the product produced so
far.
- Total Duration of Operations : the cumulative duration of every operation completed
while manufacturing the product.
Total Duration of Operations : the cumulative duration of every operation completed
while manufacturing the product.
- Total Employee Cost : the cumulative amount paid to employees to manufacture the
product.
Total Employee Cost : the cumulative amount paid to employees to manufacture the
product.
- Total Operation Cost : the cumulative amount spent on operations required to produce
the product.
Total Operation Cost : the cumulative amount spent on operations required to produce
the product.
- Total Operation Cost/Unit : the average cost of the operations required to produce one
unit of the product.
Total Operation Cost/Unit : the average cost of the operations required to produce one
unit of the product.
- Total Subcontracting Cost : the cumulative amount paid to subcontractors to produce the
product.
Total Subcontracting Cost : the cumulative amount paid to subcontractors to produce the
product.
- Total Subcontracting Cost/Unit : the average cost of engaging a subcontractor to
produce one unit of the product.
Total Subcontracting Cost/Unit : the average cost of engaging a subcontractor to
produce one unit of the product.
- Yield Percentage (%) : the total quantity of the product produced versus the total
quantity demanded, represented as a percentage.
Yield Percentage (%) : the total quantity of the product produced versus the total
quantity demanded, represented as a percentage.
- Count : the total count of MOs created for the product.
Count : the total count of MOs created for the product.
Only one measure can be selected at a time when one of the (graph view) options is enabled. However, multiple measures, and varying group-by
criteria (on the x and y axes), can be selected when using the (pivot table) .

## Use case: compare products

One of the best uses for the Production Analysis report is comparing statistics about
two or more products. This is accomplished by entering the products into the Searchâ¦ bar, then selecting the necessary measure, filter, and grouping, to see the desired data.
Toy manufacturer Tommyâs Toys is trying to reduce their manufacturing operation costs. To
accomplish this, they have decided to identify redundant products and cease manufacturing the
ones with higher operational costs.
Two of the toys that have been singled out for analysis are the pogo stick and moon shoes .
Tommyâs Toys believes these two toys are so similar that they can stop manufacturing one, without
significantly impacting their product offering.
To compare operation costs for the toys, business analyst Mike opens the Manufacturing app, and navigates to the Production Analysis page. In
the Searchâ¦ bar, he enters the names of both products. Then, he opens the Searchâ¦ bar drop-down menu, and clicks Product in the Group
By section.
Below the Searchâ¦ bar, Mike clicks on the Measures drop-down menu, and selects the Total Operation Cost/Unit option. Finally, he selects the (bar chart) graph type.
With these options selected, the Production Analysis report shows a bar chart for the
current year, with one bar for each product, signifying the average operation cost for one unit
of the product.
With this data, Mike is able to see that the average operation cost for the moon shoes is almost
twice the cost of the pogo stick. Using this insight, Tommyâs Toys decides to cease production of
moon shoes, thus lowering their average cost of manufacturing operations.

## Use case: compare time periods

The Production Analysis report can also be used to compare data for two different time
periods. This is accomplished using the options in the Comparison section of the Searchâ¦ bar.
Furniture company Fannyâs Furnishings wants to compare their production costs for the first and
second quarters of 2024, to see which products they spent the most money producing in each
quarter.
To compare the two time periods, shop floor supervisor Adam opens the Manufacturing app, and navigates to the Production Analysis page. He
begins by selecting the (pie chart) graph type option at the top
of the page.
The Comparison feature is meant to be used with the (pie chart) graph type, or the (pivot) view.
A Comparison option can still be selected with the other view types enabled, but
doing so does not change the way data is displayed on the report.
Next, Adam selects the Total Cost option from the Measures drop-down menu. This option displays the total amount spent producing each
product.
In the Searchâ¦ bar drop-down menu, he leaves the 2024 filter enabled in
the End Date section, and enables the Q2 filter as well. With both of
these time periods selected, the pie chart shows data for the second quarter of 2024.
Finally, Adam selects the End Date: Previous Period option in the Comparison section of the Searchâ¦ bar. Doing so causes the pie chart to
be split into an inner circle, and an outer ring.
The outer ring shows data for the selected time period, quarter two of 2024. The inner circle
shows data for the previous time period, quarter one of 2024.
If End Date: Previous Year is selected instead of End Date: Previous
Period , the inner circle shows data for the selected time period, one year previous.
In the case of this example, it would show data for quarter two of 2023.
Using this report, Adam can see that the products with the highest total cost for quarter two are
the bicycle and tricycle . On the other hand, in quarter one, the roller skates had the
highest total cost.

Measures
Use case: compare products
Use case: compare time periods


Shop Floor overview

# Shop Floor overview

The Shop Floor module is a companion module to the Manufacturing app. Shop Floor provides a
visual interface for processing manufacturing orders (MOs) and work orders. It also allows
manufacturing employees to track the amount of time spent working on manufacturing and work orders.
The Shop Floor module is installed alongside the Manufacturing app.

## Opening Shop Floor

Shop Floor can be opened in the following ways:
- Click the Shop Floor module icon from the main Odoo dashboard.
Click the Shop Floor module icon from the main Odoo dashboard.
- Click the Shop Floor smart button on a manufacturing order.
This will open the manufacturing order in the Shop Floor module.
Click the Shop Floor smart button on a manufacturing order.
This will open the manufacturing order in the Shop Floor module.

## Selecting work centers

When Shop Floor is opened on a workstation, it is possible to select work centers to assign to it.
Open the Shop Floor app from either the main Odoo dashboard or from the Shop Floor smart button on a manufacturing order.
If it is the workstationâs first time opening Shop Floor , a window may open to allow a user to
select work centers. If the window does not open, click the (Add) icon
next to the list of work centers.
Select the work centers to assign to the workstation, then click Confirm .

## Installing Shop Floor on a workstation

Shop Floor can be installed in the Chrome browser of a workstation to limit its access to other
Odoo applications.
First, open the Shop Floor app from either the main Odoo dashboard or from the Shop Floor smart button on a manufacturing order.
On the Shop Floor overview, a pop-up window to select work centers for the workstation may open.
If it does not open, click the (Add) icon next to the list of work
centers.
Click the Install App button. A new window will open. In this window, click the Install button to install the app in the workstationâs browser.

## Navigation

Shop Floor is broken down into three main views, which can be selected from the navigation bar at
the top of the module:
- The All MO page serves as the moduleâs main dashboard and displays information cards
for MOs .
The All MO page serves as the moduleâs main dashboard and displays information cards
for MOs .
- Each work center also has a dedicated page that displays information cards for the work orders
assigned to it. Work center pages can be toggled on or off by clicking the (plus) icon in the navigation bar, selecting or deselecting them on the pop-up window
that appears, and then clicking Confirm .
Each work center also has a dedicated page that displays information cards for the work orders
assigned to it. Work center pages can be toggled on or off by clicking the (plus) icon in the navigation bar, selecting or deselecting them on the pop-up window
that appears, and then clicking Confirm .
- The My WO page shows information cards for all work orders assigned to the employee
whose profile is currently active in the operator panel on the left side of the module. This page
functions largely the same as the pages for each work center, but it only shows work orders
assigned to the active employee.
The My WO page shows information cards for all work orders assigned to the employee
whose profile is currently active in the operator panel on the left side of the module. This page
functions largely the same as the pages for each work center, but it only shows work orders
assigned to the active employee.
To isolate an MO or work order so that no other orders appear, search the reference number of
the MO in the Search bar at the top of the module. This search filter remains
active when switching between the different module views.
On the left side of the module is the operator panel, which shows all of the employees currently
signed in to Shop Floor and allows new employees to sign in. The operator panel is always
available in the module, regardless of the selected view. It can be toggled on or off by clicking
the (sidebar) button in the navigation bar.

### All MO page

By default, the All MO page shows an information card for every MO that is ready to start . An MO is considered ready to start once it has been confirmed, and all required components are
available.
To view every confirmed MO regardless of readiness, click the (close) icon on the MO Ready filter to remove it from the Search bar.

#### MO information card

An MO information card on the All MO page displays all the relevant details of the
associated MO , and also provides employees with options for processing the MO .
The header for an MO card shows the MO number, the product and number of units being produced,
and the MO status. If work on the MO has not yet begun, the status appears as Confirmed . Once work has begun, the status updates to In Progress . If all
work orders for an MO have been completed and the MO is ready to close, the status updates to To Close .
The main body of an MO card shows a line for each completed work order, if any, followed by the
current work order to be completed. Completed work orders appear in grey and are struck out. The
current work order is indicated by a button that opens the page for the work center to which the
order is assigned.
Below the current work order is a line titled Register Production , which records lot or
serial numbers for the units produced. Click the Register Production line to specify a
lot or serial number for the produced units, then click Validate .
To register the quantity of products being produced, click the # Units button on the
right side of the line, which automatically records the number of units the MO was created for as
the number of units produced. For example, if an MO is created for 10 units of a dining table,
clicking the 10 units button records that 10 units were produced.
The footer of the MO card displays a Close Production button. This is used to close
the MO once production is completed. However, if any quality checks are required for the MO as a
whole (not the work orders within it), a Quality Checks button appears instead. Clicking Quality Checks opens a pop-up window where any required quality checks can be completed.
After clicking Close Production , the MO card begins to fade, and an Undo button appears in the footer. Clicking Undo keeps the MO open. When the MO card
disappears completely, the work order is closed.
On the right side of the footer is a (gear) button, which opens a pop-up
window with additional options for the MO :
- Scrap : Send components to a scrap location when they are found to be defective.
Scrap : Send components to a scrap location when they are found to be defective.
- Add Work Order : Add an additional work order to the MO .
Add Work Order : Add an additional work order to the MO .
- Add Component : Add an additional component to the MO . Note Additional components are consumed in the Shop Floor module, but their stock moves will not be
validated until the MO is closed.
Add Component : Add an additional component to the MO .
Additional components are consumed in the Shop Floor module, but their stock moves will not be
validated until the MO is closed.
- Open Manufacturing Order : opens the MO in the Manufacturing app
Open Manufacturing Order : opens the MO in the Manufacturing app
- Log Note : Enter a note that will be visible on the backend and throughout all steps on
the shop floor.
Log Note : Enter a note that will be visible on the backend and throughout all steps on
the shop floor.

### Work center pages

By default, the page for each work center shows an information card for every work order assigned to
it that is ready to start . A work order is considered ready to start once the MO it is a part of
is ready to start, and any preceding work orders have been completed.
To view every confirmed work order assigned to a work center regardless of readiness, click the (remove) icon on the MO Ready filter to remove it from the Search bar.

#### Work order information card

The work order information cards on a work centerâs page show all of the relevant details of the
associated work order, and also provide employees with options for processing the work order.
The header for a work order card shows the reference number of the MO that the work order is a
part of, the product and number of units being produced. When work has begun, the status updates to
display a timer showing the total time the work order has been worked on. The instructions for each
work order open automatically when the timer starts.
The main body of a work order card shows a line for each step required to complete the work order.
Work order steps can be completed by clicking on the line, then following the instructions on the
pop-up window that appears.
Below the final step of the work order is a line titled Register Production , which
functions the same as the Register Production line on an MO card. Registering the
number of units produced using the Register Production line on a work order card also
completes the step for the associated MO card.
If there are instructions for a work order, the operator can expand the Instructions header in the work order. To complete a step, click the instruction line and follow the instructions
in the pop-up window. The instructions that follow an individual instruction will automatically
open.
If the work order being processed is the final work order for the MO , a Close
Production button appears on the footer of the work order card. Clicking Close
Production closes both the work order and the MO , unless a quality check is required for the MO . In this case, the quality check must be completed from the MO card before the MO can be
closed.
Alternatively, if the MO requires the completion of additional work orders, a Mark as
Done button appears instead. Clicking Mark as Done marks the current work order as
completed, and causes the next work order to appear on the page for the work center it is assigned
to.
After clicking Close Production or Mark as Done , the work order card begins
to fade away, and an Undo button appears on the footer. Clicking Undo causes
the work order to remain open. Once the work order card disappears completely, the work order is
marked as Finished on the MO .
On the right side of the footer is a (gear) button, which opens a pop-up
window with additional options for the work order:
- Scrap : sends components to a scrap location when they are found to be defective.
Scrap : sends components to a scrap location when they are found to be defective.
- Add Component : adds an additional component to the MO .
Add Component : adds an additional component to the MO .
- Open Manufacturing Order : opens the associated MO in the Manufacturing app.
Open Manufacturing Order : opens the associated MO in the Manufacturing app.
- Move to work center : transfers the work order to a different work center.
Move to work center : transfers the work order to a different work center.
- Update instructions : allows the user to propose a change to the work orderâs
instructions or steps.
Update instructions : allows the user to propose a change to the work orderâs
instructions or steps.
- Create a Quality Alert : opens a quality alert form that can be filled out to alert a
quality team about a potential issue.
Create a Quality Alert : opens a quality alert form that can be filled out to alert a
quality team about a potential issue.
- Request Maintenance : creates a maintenance request for the work center.
Request Maintenance : creates a maintenance request for the work center.

### Operator panel

The operator panel is used to manage the employees that are signed in to the Shop Floor module.
The panel shows the name and profile picture of every employee that is currently signed in across
all instances of the database.
To interact with Shop Floor as a specific employee, click the employeeâs name to activate their
profile. Profiles that are not active appear with their names and profile pictures greyed-out.
When an employee is selected in the operator panel, they can begin working on a work order by
clicking the work orderâs heading. If an employee is working on one or more work orders, the work
order titles appear under their name, as well as a timer showing how long theyâve been working on
each order.
To add a new employee to the operator panel, click the Add Operator button at the bottom of the panel. Then, select an employee from the Select Employee pop-up
window.
To remove an employee from the operator panel, click the (log out) button next to their name in the panel.

## MO/WO prioritization

The Shop Floor module prioritizes orders based on their scheduled date . An order can be moved to
the top of the list by clicking the (star) icon in the MO form. MOs and work orders scheduled sooner are more highly prioritized and appear before orders which
are scheduled further out.
To specify the scheduled date on an MO , begin by navigating to Manufacturing app
â£ Operations â£ Manufacturing Orders , and click New to create a new MO .
Click on the Scheduled Date field to open a calendar popover window. By default, the Scheduled Date field and its corresponding pop-up window show the current date and time.
Use the calendar to select the date on which processing should begin for the MO . In the two fields
at the bottom of the popover window, enter the hour and minute at which processing should begin,
using the 24-hour clock format.
Finally, click Apply at the bottom of the popover window to set the date and time for
the Scheduled Date field. Then, click the Confirm button at the top of the MO to confirm it.
To prioritize a manufacturing order and its work orders in the Shop Floor app, click the (star) icon in the MO form.
Once the MO is confirmed, it appears in the Shop Floor module, as long is it has the Ready status, which means all components are available.
On the Odoo dashboard, click on the Shop Floor module to open it. The All MO # page of the dashboard displays Ready MOs , organized in order of their scheduled dates.
If a manufacturing order should be prioritized above the standard date scheduling, click the (star) icon next to its number.
At the top of the module, select a work center to see the work orders assigned to it. The page for
each work center organizes work orders, based on the scheduled dates of their corresponding MOs .
Three MOs are confirmed for a Table product:
- WH/MO/00076 has a Scheduled Date of April 2.
WH/MO/00076 has a Scheduled Date of April 2.
- WH/MO/00077 has a Scheduled Date of March 31.
WH/MO/00077 has a Scheduled Date of March 31.
- WH/MO/00078 has a Scheduled Date of April 1.
WH/MO/00078 has a Scheduled Date of April 1.
On the All MO # page of the Shop Floor module, the cards for each MO appear in
this order: WH/MO/00077, WH/MO/00078, WH/MO/000076.
Each MO requires one work order, carried out at Drill 1 . Clicking on the Drill 1 button at the top of the screen opens the page for the work center, which
displays one card for each work order, appearing in the same order as their corresponding MOs .

Opening Shop Floor
Selecting work centers
Installing Shop Floor on a workstation
Navigation
All MO page
Work center pages
Operator panel
MO/WO prioritization


Shop Floor time tracking

# Shop Floor time tracking

By signing in to the Odoo Shop Floor module as operators , employees can track the amount of time
they spend working on each work order. Odoo tracks the time it takes to complete each work order, as
well as the time each operator spends on it.

## Manage operators

When the Shop Floor module is first opened, the employee profile that is signed in to the database
is automatically signed in as an operator.
All operators for the current session are listed in the operator panel next to the main content
area. While the panel can list multiple employee profiles, only one employee can be active at once.
The active profile highlighted in the operator panel is used for time tracking. The panel can be
opened or collapsed by clicking the (employee
panel) icon located next to the view list.

### Add an operator

To add employees to the operator panel, click the Add Operator button at
the bottom of the panel. In the Select Employee pop-up window, click on a specific employee to
sign in using their profile. If no PIN code is required to sign in as that employee, the profile
is automatically signed in and selected as the active operator.
If a PIN has been set for the employee, a Password? pop-up window opens. Enter the code using the
number pad or keyboard, then click Confirm to sign in to the Shop Floor module.
Each employee can be assigned a PIN, which must be entered when signing in to the Shop Floor module. Badges can also be generated and printed for checking in and out with Kiosk Mode in the Attendances app. See the Settings tab section for more details.

### Switch profiles

Click an employeeâs name to make their profile active. The active employee appears highlighted in
blue, while employees who are signed in but not active appear faded out.

### Log out an operator

To sign out a specific employee from the module, click the (logout) icon next to their name in the operator panel.

## Track work order duration

To track time spent on a work order, begin by selecting the employee assigned to it from the
operator panel.
Next, select the work center where the work order is scheduled to be carried out. This can be done
by selecting the work center in the Shop Floor module. Alternatively, open the manufacturing order
(MO), open the Work Orders tab, and click the (Open Work
Order) icon. In the Work Orders pop-up window, click Open Shop
Floor .
In the work center view, find the card for the work order. The assigned operatorâs avatar is listed
on the work order. When work begins, click the (play) icon to start
tracking the duration. This duration tracks the collective time spent working on the work order by
all employees. The operatorâs avatar is displayed on the work order to indicate that work has begun
and is assigned to an operator.
In addition, the work order reference number appears in the operator panel under the employeeâs
name, along with another timer that tracks the time the employee has spent individually on the work
order. This timer only reflects work done during the current session, even if the employee has
previously worked on the work order.

### View active profile work orders

The operator panel displays the work center location and the individual time spent for each work
order an operator is working on. This timer only reflects work done during the current session, even
if the operator has previously worked on the work order.
Operators can work on multiple work orders simultaneously and track their time for each. Click My WO at the top of the page to see all of the work orders the active profile is working
on.

### Pause and stop timer

To pause the timer on a work order, click the (pause) icon.
When a work order is complete, click the Mark as Done button at the bottom of the work
order card to remove it from the work center page.
If there are no additional work orders for the MO , the button says Close Production instead. Clicking Close Production marks the entire MO as Done and removes it
from the Shop Floor module.
The Close Production button is always visible on the MO card in the All MO view.

## View work order duration

### By individual work order

To view the duration of a work order, navigate to Manufacturing app â£ Operations
â£ Work Orders .
By default, the search bar has a filter applied to display incomplete work orders only. To view work
orders that have been completed and marked as Done , remove the filter from the search bar by
clicking on the (Remove) icon next to the filter.
The actual time it took to complete each work order is displayed in the Real Duration column. This value represents the total time spent on the work order by all operators who worked on
it. It includes time tracked in the Shop Floor module as well as time tracked in the work order
form or the Work Orders tab of the MO .
To view detailed time tracking information, select a work order. In the work order form, go to the Time Tracking tab to see a detailed list of all operators who have worked on the work order and
the amount of time they spent on it.

### By manufacturing order

To view the duration of all work orders in a specific MO , navigate to Manufacturing app â£ Operations â£ Manufacturing Orders .
By default, the search bar has a filter applied to display incomplete MOs only. To view MOs that
have been completed and marked as Done , remove the filter from the search bar by clicking the (Remove) icon next to the filter.
Select an MO . In the MO form, go to the Work Orders tab to see a list of all work orders
included in the MO .
The actual time it took to complete each work order is displayed in the Real Duration column. This value represents the total time spent on the work order by all operators who worked on
it. It includes time tracked in the Shop Floor module as well as time tracked in the work order
form or the Work Orders tab of the MO .
To view details for a specific work order, click the (Open Work
Order) icon. The work order form opens.

Manage operators
Add an operator
Switch profiles
Log out an operator
Track work order duration
View active profile work orders
Pause and stop timer
View work order duration
By individual work order
By manufacturing order


Subcontracting

# Subcontracting

In manufacturing, subcontracting is the process of a company engaging a third-party manufacturer,
or subcontractor, to manufacture products that are then sold by the contracting company.
Subcontracting provides a variety of benefits for both the contracting company and the
subcontractor.
For the contracting company, subcontracting allows them to sell a wide variety of manufactured
products, without having to worry about investing in and maintaining the equipment and labor
required to handle the manufacturing themselves.
This helps contracting companies stay flexible throughout economic cycles, as they can easily
increase or decrease their engagements with subcontractors, as necessitated by the current moment.
It also means they are able to focus on tasks they excel at, while delegating more specialized work
to subcontractors.
On the other side of the relationship, subcontracting allows subcontractors to specialize in more
niche areas of production, which might not be as profitable outside the bounds of a subcontracting
engagement. In certain arrangements, it also provides them with the flexibility to choose which
projects they accept or decline, and how many they work on at any given time.
In Odoo, companies can configure their subcontracting workflows based on a variety of different
factors, including how components are sourced, and what happens to finished products once they are
manufactured.

#### Basic subcontracting

Subcontract products without supplying the subcontractor with components.

#### Resupply subcontractor

Ship components to a subcontractor each time a PO for a subcontracted product is confirmed.

#### Dropship to subcontractor

Dropship components to a subcontractor each time a PO for a subcontracted product is
confirmed.

## Configuration

To enable subcontracting in Odoo, navigate to Manufacturing app â£ Configuration
â£ Settings , and tick the checkbox next to the Subcontracting setting, under the Operations heading. Then, click Save .
With subcontracting enabled, a few different features become available in Odoo:
- On bills of materials (BoMs), the BoM Type field now includes a Subcontracting option.
Enabling the Subcontracting BoM type designates the BoM âs product as a subcontracted
product, which means Odoo knows that it is produced by a subcontractor, and not by the company
that owns the Odoo database.
On bills of materials (BoMs), the BoM Type field now includes a Subcontracting option.
Enabling the Subcontracting BoM type designates the BoM âs product as a subcontracted
product, which means Odoo knows that it is produced by a subcontractor, and not by the company
that owns the Odoo database.
- Two subcontracting routes become available in the Inventory app, and can be assigned to specific
products, on the Inventory tab of their product pages: Resupply Subcontractor on Order Dropship Subcontractor on Order
Two subcontracting routes become available in the Inventory app, and can be assigned to specific
products, on the Inventory tab of their product pages:
- Resupply Subcontractor on Order
Resupply Subcontractor on Order
- Dropship Subcontractor on Order
Dropship Subcontractor on Order

## Subcontracting workflows

In Odoo, there are three subcontracting workflows, the main difference between them being how the
subcontractor obtains the necessary components:
- In the basic subcontracting workflow, the subcontractor is fully responsible for obtaining the
components. This workflow is outlined in the Basic subcontracting documentation.
In the basic subcontracting workflow, the subcontractor is fully responsible for obtaining the
components. This workflow is outlined in the Basic subcontracting documentation.
- In the Resupply Subcontractor on Order workflow, the contracting company sends the components
from their warehouse to the subcontractor. This workflow is outlined in the Resupply subcontracting documentation.
In the Resupply Subcontractor on Order workflow, the contracting company sends the components
from their warehouse to the subcontractor. This workflow is outlined in the Resupply subcontracting documentation.
- In the Dropship Subcontractor on Order workflow, the contracting company purchases the
components from a vendor, and has them delivered directly to the subcontractor. This workflow is
outlined in the Dropship to subcontractor documentation.
In the Dropship Subcontractor on Order workflow, the contracting company purchases the
components from a vendor, and has them delivered directly to the subcontractor. This workflow is
outlined in the Dropship to subcontractor documentation.
In addition to how a subcontractor obtains components, it is also necessary to consider why a
product is being subcontracted, as well as what happens to products once they are manufactured by
the subcontractor.
In terms of why a product is being subcontracted, the two main reasons are to fulfill a customer
order, or to replenish the quantity of stock on-hand.
In terms of what happens to products once they are manufactured, they can either be shipped to the
contracting company, or dropshipped directly to an end customer.
Each of the three subcontracting workflows described above can be configured to facilitate any of
these possibilities, and the methods for doing so are outlined in their respective documentation.

## Subcontracted product valuation

The valuation of a subcontracted product depends upon a few different variables:
- The cost of the required components, if provided by the contracting company; from here on referred
to as C .
The cost of the required components, if provided by the contracting company; from here on referred
to as C .
`C`
- The price paid to the subcontractor for the service of manufacturing the subcontracted product;
from here on referred to as M .
The price paid to the subcontractor for the service of manufacturing the subcontracted product;
from here on referred to as M .
`M`
- The cost of shipping components to the subcontractor, and having them shipped back to the
contracting company; from here on referred to as S .
The cost of shipping components to the subcontractor, and having them shipped back to the
contracting company; from here on referred to as S .
`S`
- The cost of dropshipping, if the components are shipped by the subcontractor to the end customer;
from here on referred to as D .
The cost of dropshipping, if the components are shipped by the subcontractor to the end customer;
from here on referred to as D .
`D`
- Any other associated costs, like import taxes, etc.; from here on referred to as x .
Any other associated costs, like import taxes, etc.; from here on referred to as x .
`x`
Therefore, the total valuation of a subcontracted product ( P ) can be represented by the following
equation:
`P`
It is important to note that not every subcontracted product valuation will include all of these
variables. For example, if the product is not dropshipped to the end customer, then there is no need
to factor in the cost of dropshipping.

Configuration
Subcontracting workflows
Subcontracted product valuation