Buy the materials the plan needs, when it needs them
An MRP crosses the production plan, bills of materials and stock to suggest dated purchases and orders. We first measure whether your plant has the data for it to calculate correctly.
36 questions: production plan, bills of materials and 4 more topics
Material calculation from the plan and the recipes
Material requirements planning (MRP) calculates what to buy or make, how much and when. It starts from demand, explodes the bills of materials and nets off stock and incoming purchases.
The result is suggested purchase and production orders that planning reviews and confirms.
Processes it covers
- Production planning
- Manufacturing orders
- Bills of materials
- Component purchasing
- Production costing
- Subcontracting
Companies that need an MRP, and cases where another option fits better
Who it is for
- Plants that manufacture from bills of materials: food, plastics, metalworking, chemicals, garments
- Plant and purchasing managers who calculate materials in spreadsheets from the weekly plan
- Companies already using Odoo Inventory and Purchase who want to manufacture in the same database
When it is not the right fit
- If the bottleneck is machine sequencing with long changeovers: an APS solves that problem
- If each product is designed per customer with no stable bill of materials, it is better to start with project management
Signs it is time to assess an MRP
- Production orders stop for lack of a component that was not ordered in time
- Bills of materials live in spreadsheets or in the plant manager’s head
- The actual cost of a manufactured product is unknown until month end
- Production and purchasing argue about priorities every week
- There is no traceability of which component lot went into which order
- The weekly plan is redone by hand every time a rush order arrives
The cost of planning materials from memory
Stoppages for missing material
An order stopped by a component that never arrived ties up machine and staff without output.
Surplus that ties up cash
To avoid stopping, extra is bought, and that improvised stock ties up money and space.
Cost unknown until month end
Without consumption per order, each product’s margin is known after it has been sold.
From the recipe and weekly plan to dated purchases
Online assessment
36 questions on material planning. When you finish you see your level by dimension.
30-minute review
Diego reviews with you whether your bills of materials, supplier lead times and opening stock let the MRP calculate reliable purchases.
Plant workshop
We review bills of materials, supplier lead times and how the weekly plan is built with the plant and purchasing.
Implementation with Odoo Manufacturing
We configure bills of materials, work centres and replenishment rules in two-week cycles, tested on real orders.
Data, master records and access your company provides for an MRP
- Bills of materials for the main products with quantities and units
- Routings with work centres and estimated times per operation
- Lead times and minimum order quantities for each component supplier
- Counted opening stock of components and work in progress
- Orders or demand forecast for the coming weeks
Deliverables of the MRP implementation with Odoo
Validated bills of materials
Lists loaded into Odoo Manufacturing and checked against actual consumption on test orders.
Lists with explained variances
Replenishment rules
Min/max, make-to-order and safety lead times per component, set for your production type.
Replenishment plan in the MPS
Orders and consumption on the floor
Manufacturing orders with component consumption, lots and scrap recorded from the shop floor view.
Lot-to-order traceability
Cost per order
Material and work-centre hour cost per order, with the variance against standard cost.
Cost-by-product report
Typical risks of a MRP project and how they are controlled
Bills of materials copied from the spec sheet
ControlThey are checked against the actual consumption of two or three orders before the calculation is switched on.
Optimistic supplier lead times
ControlThey are taken from the receipts recorded in recent months, not from supplier promises.
Unreliable opening stock
ControlPhysical count of components before go-live and cycle counts afterwards.
Scope limits and market options for MRP
Limits
- Odoo MRP plans with infinite capacity; fine sequencing per machine needs an APS
- Automatic machine readings need Odoo IoT or another shop-floor integration
- Recipes with variable potency or concentration are reviewed case by case in the workshop
Selection criteria
- Your production type: to order, to stock or in batches
- Multi-level bills of materials and subcontracting
- Inventory, purchasing and accounting in the same database
- Three-year total cost and support in Peru
Odoo
Odoo Manufacturing: production orders, bills of materials, work centres and subcontracting. It is the platform we implement.
Other platforms on the market
- SAP S/4HANA Manufacturing
- Oracle NetSuite Manufacturing
- Microsoft Dynamics 365 Supply Chain
- Epicor Kinetic
- Infor CloudSuite Industrial (SyteLine)
- Katana
In no order of preference.
Costs and valued inventory for SUNAT
- Permanent valued inventory register (PLE format 13.1) from Odoo stock moves
- Cost register when company revenue makes it mandatory, with production cost per order
- Scrap and losses recorded with supporting evidence for tax deduction
Systems that exchange data with an MRP
Enterprise resource planning
inventory, purchasing and costs
See the systemWMSWarehouse management system
component reservations and issues
See the systemMESManufacturing execution system
orders and shop-floor progress
See the systemQMSQuality management system
receiving and in-process checks
See the systemAPSAdvanced planning and scheduling
orders to sequence by machine
See the systemPLMProduct lifecycle management
approved bills of materials
See the systeme-ProcurementE-procurement
suggested purchase requests
See the systemS&OPDemand planning and S&OP
agreed demand plan
See the systemMRP assessment in 9 minutes
This MRP assessment evaluates how your plant calculates materials required to fulfill production orders while controlling shortages and surplus inventory. Questions cover bills of materials, scrap, inventory, replenishment parameters, purchasing proposals, availability and batches.
Scored dimensions
- Demand and master schedule. Evaluates how the plant converts orders, forecasts and target inventory into production orders with defined dates and quantities.
- Bills of materials and consumption. Checks bill-of-material accuracy, units of measure, revisions and scrap factors against actual material consumption per order.
- Material coverage and planning parameters. Verifies whether MRP uses current available stock, reservations, replenishment lead times, minimum order quantities and safety stock.
- MRP explosion and proposals. Examines how net component requirements are calculated and how purchase or manufacturing proposals become approved orders.
- Production material readiness. Determines whether materials arrive and become available before the date required by each production order.
- Batches and order consumption. Checks whether each production order retains the relationship between received material batches, consumed quantities and finished-product batches.
What you receive
Upon completion, you receive an MRP maturity level and a breakdown of gaps by assessed dimension. The result identifies controls to review and proposes initial actions to organize material calculations, purchasing and manufacturing.
19 scored questions and 12 context questions (type of operation, size, current system). Context questions are not scored: they let us read the result against similar operations.
36 questions, 9 minutes
Example: if bills of materials are not compared with actual consumption, the result flags Bills of materials and proposes reviewing the highest-volume products first.
Answers about MRP
MRP is the material calculation. In Odoo it lives inside the ERP, alongside inventory, purchasing and accounting, with no separate integration.
Reviewed bills of materials for the main products, reliable opening stock and supplier lead times. The assessment measures all three.
Odoo handles lots, traceability and bills of materials with by-products. In the review we check whether your process needs more.
Review your MRP result with Diego
Twenty minutes by video call or WhatsApp. Have at hand the bill of materials of one product and one week’s plan.
Assessment first: the review uses your answers.
