ODOO'S FUNCTIONS

Odoo operates under the default assumption that a finished product is not scrapped. In a Make to Order (MTO) scenario, if you sell 100 units, the system expects the production of 100 finished products and the preparation of components for the entire quantity of 100 finished products. Scrapping is not automatically factored into the default production calculations.

CLUEDOO'S FUNCTIONS

The practical reality in many factories often diverges significantly: Scrap percentages for items in the Bill of Materials (BOM) are known, and the goal is to establish a precise BOM that incorporates a designated scrap percentage. In this way, when a production request for 100 units is received, the production order is initiated for 100 units plus the anticipated scrap percentage.

Cluedoo recognizes and addresses this business scenario by introducing the concept of scrap on the finished product BOM. This feature ensures that the specified scrap percentage is considered in the production order, aligning with the real-world need for accurate production planning that includes anticipated scrap.

MODULE +

This module eliminates the need to make a challenging decision between utilizing a BOM where scrap is directly included in the component quantity (resulting in an incorrect BOM) and estimating raw material requirements inaccurately (where the system requests the warehouse to prepare 100kg, but in reality, production needs 110kg). By incorporating scrap on the finished product BOM, it ensures a more accurate representation of the production process, preventing potential errors in both BOM definition and raw material estimation.

CLUEDOO RECOMMENDATION

Install in every factory with scrap management. A classic example is plastic injection. 

Required module: 

Production Order Management

1.

Set scrap percentage on the Bill of Materials for a product. 

2.

Scrap %= 10%

Qty to transfer= 20

Qty to produce= qty to transfer / (1 - scrap percentage)

                         = 20 / (1 - 10%) = 2,22