Odoo Manufacturing (MRP) Complete Guide: BOM, Work Orders, and Routing in 2026

What Is Odoo MRP and Who Needs It

Odoo Manufacturing (MRP) is the production management module that handles everything from simple assembly to complex multi-step manufacturing. It connects directly with Inventory, Purchase, Sales, and Accounting so that a single manufacturing order triggers material reservations, purchase requests for missing components, cost calculations, and sales order fulfillment.

Odoo MRP works for several types of manufacturers:

• Assembly operations that combine purchased components into finished products
• Discrete manufacturers producing distinct items in batches or lots
• Process manufacturers handling recipes, formulations, and by-products
• Contract manufacturers managing subcontracted production steps

Key Benefits

• Real-time material visibility: Know exactly what components are needed and when
• Accurate product costing: Track material, labor, and overhead costs per unit
• Production scheduling: Plan work orders based on capacity and material availability

Configuring Bills of Materials

The Bill of Materials (BOM) is the foundation of every manufacturing operation. It defines what components go into a product, in what quantities, and through which operations.

BOM Types in Odoo

Odoo supports three BOM types, each serving a different manufacturing scenario:

• Manufacture this product: Standard BOM for producing items in-house. This is the most common type.
• Kit: A virtual BOM that groups products together without a manufacturing step. Used for product bundles and sales kits.
• Subcontracting: BOM for products manufactured by a third-party vendor. Odoo tracks components sent to the subcontractor and finished goods received.

Creating Your First BOM

Here is the step-by-step process for creating a manufacturing BOM in Odoo:

1. Go to Manufacturing and open the Bill of Materials menu
2. Click Create and select the finished product
3. Set the BOM type to Manufacture this product
4. Add components in the Components tab with quantities and operations
5. Configure the Operations tab if using routing
6. Set the By-Products tab if your process generates secondary products

BOM Variants for Product Configurations

When your products have variants such as size, color, or material, Odoo lets you define a single BOM with variant rules. Instead of creating separate BOMs for every combination, you specify which components apply to which variant attributes. A furniture manufacturer might have one BOM for a table with rules that select different wood types and leg styles based on the chosen variant.

BOM Structure and Cost Report

Once your BOMs are configured, Odoo provides a multi-level BOM structure report showing the complete hierarchy of components and sub-assemblies. The cost report calculates the total manufacturing cost based on current product prices, helping you identify expensive components and optimize your supply chain.

Setting Up Work Centers and Routing

Work centers represent the physical locations where manufacturing happens. These include machines, assembly lines, workstations, and even individual operators. Routing defines the sequence of operations that a product goes through during manufacturing.

Configuring Work Centers

Each work center in Odoo has several important settings:

• Capacity: How many units can be processed simultaneously
• Time efficiency: Percentage that adjusts expected duration (80 percent efficiency means tasks take 25 percent longer)
• OEE targets: Overall Equipment Effectiveness goals for tracking performance
• Cost per hour: Labor and overhead cost allocated to this work center

Building Your Routing

A routing is a sequence of operations, each assigned to a specific work center. For a simple assembly process, your routing might look like this:

1. Operation 1: Cutting: Work Center: Saw Station, Duration: 5 minutes per unit
2. Operation 2: Assembly: Work Center: Assembly Line, Duration: 15 minutes per unit
3. Operation 3: Quality Check: Work Center: QC Station, Duration: 3 minutes per unit
4. Operation 4: Packaging: Work Center: Packing Area, Duration: 2 minutes per unit

Each operation can have its own worksheet, quality control points, and component consumption rules. Odoo also supports parallel operations and flexible sequencing for complex manufacturing processes.

Work Center Scheduling

With work centers and routing configured, Odoo automatically schedules production orders based on:

• Work center availability: Avoids scheduling conflicts and double-booking
• Material availability: Only schedules when components are in stock
• Order priorities: Respects confirmed sales order deadlines

Managing Manufacturing Orders

A Manufacturing Order (MO) is the actual production instruction. It tells your team what to make, in what quantity, using which BOM, and by when.

Creating and Confirming Orders

Manufacturing orders can be created manually or generated automatically from sales orders. When an MO is created, Odoo:

1. Explodes the BOM to list all required components
2. Checks stock availability for each component
3. Reserves available components automatically
4. Flags missing components that need to be purchased or transferred
5. Calculates expected production cost

Tracking Production Progress

During production, operators can track progress through the shop floor interface. They record time spent at each work center, report consumed quantities, and note any deviations from the standard BOM. This real-time data feeds into cost analysis and performance reporting.

Handling Component Consumption

Odoo supports several consumption strategies:

• Defined in BOM: Components are consumed based on the BOM quantities exactly
• Manual consumption: Operators record actual quantities used, allowing for waste tracking
• Automatic reservation: Components are reserved when the MO is confirmed

Advanced MRP Features

By-Products and Co-Products

Many manufacturing processes produce more than one output. A bakery producing bread also generates leftover dough. A metal fabricator cutting sheets produces scrap. Odoo handles these through the by-products feature, automatically creating inventory entries for secondary outputs.

Unbuild Orders

When a manufacturing order produces defective goods or when you need to recover components from finished products, unbuild orders reverse the manufacturing process. Components are returned to stock, and the finished product quantity is reduced.

Maintenance Integration

Odoo Maintenance connects directly to work centers. You can schedule preventive maintenance, track equipment breakdowns, and automatically block production on work centers that are under maintenance. This prevents scheduling orders on equipment that is not operational.

Quality Control Points

Quality checks can be embedded at any operation in your routing. Define pass or fail criteria, measurement tolerances, and corrective action workflows. Failed quality checks can automatically block the production order from being marked as done.

Frequently Asked Questions

References

1. Odoo Documentation: Manufacturing (MRP) Overview. https://www.odoo.com/documentation/17.0/applications/inventory_and_mrp/manufacturing.html
2. Odoo Documentation: Bills of Materials Configuration. https://www.odoo.com/documentation/17.0/applications/inventory_and_mrp/manufacturing/bom.html
3. Odoo Documentation: Work Centers and Routing. https://www.odoo.com/documentation/17.0/applications/inventory_and_mrp/manufacturing/work_orders.html
4. Deloitte: Manufacturing Cost Reduction Strategies (2025). https://www2.deloitte.com/us/en/insights/industry/manufacturing/manufacturing-industry-outlook.html
5. APICS: Production Planning and Control Best Practices. https://www.ascm.org/ascm-insights/supply-chain-management/