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OpenERP Processes

OpenERP Functional and Process Matrix

Contents

  1. 1 OpenERP Functional and Process Matrix
    1. 1.1 Overview of Business Logistics Processes 
    2. 1.2 MASTERDATA
    3. 1.3 MARKETING & PRESALES
    4. 1.4 SALES ORDER PROCESS
      1. 1.4.1 Order Types
    5. 1.5 SOURCING / PROCUREMENT 
    6. 1.6 GENERAL PROCUREMENT + CONSUMABLES
    7. 1.7 WAREHOUSING ORGANISATION 
      1. 1.7.1 Warehouse OrganisationShippingPicking & PackingTransportationStock ReplenishmentMRP / JIT ProcessWarehouse Management Reporting
      2. 1.7.2 Typical Warehouse processes
      3. 1.7.3 Warehouse Management - Warehouse Organisation
      4. 1.7.4 Warehouse Management - Push Flow Strategies
      5. 1.7.5 Warehouse Management - Pull Flow Strategies 
      6. 1.7.6 Warehouse Management - An Implementation Approach
      7. 1.7.7 W02 - Manage Shifts
      8. 1.7.8 W03 - Incoming Shipments / Goods Receipt (based on Purchase Order)
      9. 1.7.9 W03 - Goods Receipt (based on inbound Deliveries)
      10. 1.7.10 W03 - Inspection Lot Processing
      11. 1.7.11 B50 - Delivery Creation
      12. 1.7.12 W04 - Picking and Packing
      13. 1.7.13 W05 - Manage Shipments
      14. 1.7.14 W06 - Returnables Handling & Control
      15. 1.7.15 W08 - Customer Returns Material
      16. 1.7.16 W50 - Receive Material From Customer
      17. 1.7.17 W09 - Physical Inventory (with WM)
      18. 1.7.18 W10 - Manage Waste and Disposals
      19. 1.7.19 W11 - Scrap Handling Selling
      20. 1.7.20 W11 - Scrap Selling
      21. 1.7.21 Stock Replenishment Processes
  2. 2 Further Reading
    1. 2.1 Business Processes in OpenERP
      1. 2.1.1 Overview of Functional Logistical Processes in OpenERP
      2. 2.1.2 Business Process and Model Mapping Methods
      3. 2.1.3 How to create an incoming Shipment Processs
      4. 2.1.4 How to create a Bill-Of Material in OpenERPW01  - Warehouse Management in OpenERPWarehouse Management - Warehouse OrganisationWarehouse Management - Push Flow StrategiesWarehouse Management - Pull Flow Strategies Warehouse Management - An Implementation Approach
    2. 2.2 Using MRP & JIT in OpenERP
      1. 2.2.1 What is Materials Requirements Planning (MRP) & Just-In-Time (JIT) in OpenERP? 
    3. 2.3 Configuration of Knowledge Management in OpenERP
      1. 2.3.1 How to configure OpenERP's Knowledge Management 
    4. 2.4 Printing Report, Labels, Forms in OpenERP
      1. 2.4.1 How to print Forms, Reports, Labels, etc.  in OpenERP
    5. 2.5 Example xPython Programming and OpenERP Interfacing
      1. 2.5.1 How to use xPython with OpenERP
    6. 2.6 OpenERP Implementation Approach
      1. 2.6.1 An OpenERP Implementation Approach


Overview of Business Logistics Processes 

MASTERDATA

  • MD1 - Product Master / Material Master
  • MD2 - BOM & BOM Components
  • MD3 - Partners: 
    • Customer Master
    • Supplier Master
    • Addresses & Contacts 
  • MD5 - Price Lists
  • MD6 -
  • MD7 -

MARKETING & PRESALES

  • A01 Project Management
  • A02 New & Update Product Offer 
  • A03 Price List Management
  • A04 Quotation Management
  • A05 Customer Relationship Management
  • A06 External Contact Management
  • A07 Distribution Conditions
  • A08 Customer Management
  • A09 Sales Forecasting
  • A11 Web Shopping Basket Interface (.e.g Magento)

SALES ORDER PROCESS

Depending on the trigger of the sales process and the type of sales order, different fields may be required for each business flow. 

A regular sales order pre-configured form is provided in OpenERP. Other sales order forms are also available as add-ons / modules or may need to be configured / developed accordingly. Each sales order type is explained below: 

Order Types

  • B01 Regular - Sales order  
  • B02 Services - Sales order
  • B04 Credit Memo - Sales Order - e-g- due to Return of Goods  (Return Flows)
  • B06 Loan - Sales Order Entry (Products or Machines on loan to customer / suppliers)
  • B08 Jobbing - Sales Order - (Processing additional activities based on customer supplied products)
  • B10 Intercompany process - Stock Transfer
  • B12 Intercompany process - Cross-Co. Selling

SOURCING / PROCUREMENT 

For each product it is possible to configure the sourcing & procurement process by configuration of the product master in the Procurement Method Field (Make to Order or Make to Stock) and Supply Method Field (Buy or Produce). This influences the process as follows:

 Make or Buy? MTO  
 MTS
 
Products are not stocked and only  purchased or produced as soon as the demand occurs
 Products are normally stocked (or wait until next re-order)
 min Stock-levels need to be maintained
 Buy
  • RFQ automatically created when order received. Lead-time need to be maintained to give customer correct delivery dates. 
  • Maintain Lead-Times to for delivery dates estimation
  • Min Stock-Levels need to be maintained in the product master record. 
  • When min stock-level is reached then a RFQ is automatically created by the MRP scheduler (predictions also based on lead-times) 
  • When an order received products are delivered direct from Stock. 
  • Lead-times are reduced
  • Higher inventory costs. 
 Produce
  •  As above,  but a manufacturing order is created instead of a RFQ
  • Depending on the manufacturing process,  the delivery lead-times could be long. Consider JIT strategies too.  
  •  As above but a manufacturing order is create instead of a RFQ

  • S01 - Identify Suppliers
  • MD4 - Create a new supplier
  • S03 - Request for quotations
  • S04 - Supplier Evaluation
  • S05 - Supplier Order Follow-up
  • S06 - Supplier Claims  / Damaged Material Control
  • S07 - MRP & JIT Strategies + Proc. Pricing
  • S10 - MRP Run Process (common process for MTS/FTS/MFTS/TTS and MTO/FTO/MFTO/TTO)
  • S11 - Purchase Requisition Process (common process for MTS/FTS/MFTS/TTS and MTO/FTO/MFTO/TTO)
  • S12 - Purchase Order Process (common process for MTS/FTS/MFTS/TTS and MTO/FTO/MFTO/TTO)

GENERAL PROCUREMENT + CONSUMABLES

  • P01 General Procurement
  • W70 Manage Consumables (Not handled on stock)
  • W71 Manage Consumables (Handled on stock)

WAREHOUSING ORGANISATION 

Warehouse process includes the following processes

  • Warehouse Organisation
  • Shipping
  • Picking & Packing
  • Transportation
  • Stock Replenishment
  • MRP / JIT Process
  • Warehouse Management Reporting

Typical Warehouse processes

  • W02 - Manage Shifts

  • W03 - Inspection Lot Processing

  • B50 - Delivery Creation

  • W04 - Picking and Packing

  • W05 - Manage Shipments

  • W06 - Returnables Handling & Control

  • W08 - Customer Returns Material

  • W50 - Receive Material From Customer

  • W09 - Physical Inventory (with WM)

  • W10 - Manage Waste and Disposals

  • W11 - Scrap Handling Selling

  • W11 - Scrap Selling

Stock Replenishment Processes

In OpenERP's product create form,  it is possible to configure products as 'make to stock' or 'make to order'  and also whether the products are 'bought' (Buy) or 'manufactured / assembled' (Produce). A combination of these two fields enables flexible configuration of various business processes as described below.  

Finished Products are stocked in the warehouse. A minimum Order level needs to be maintained. MRP will automatically re-order. Often also called DFS (delivery from Stock process)
  • W20  MTS-B  (Make to Stock + Buy) - Finished Products are stocked in the warehouse and re-ordered from the supplier when stock levels reach a minimum Order level. Schedular / MRP will automatically re-order. Often also called DFS (delivery from Stock process)
  • W22  MTS-P  (Make to Stock & Produce) - Finished Products are stocked. When stocks reach min. stock levels new product order is created to manufacture new item for stock replenishment. Minimum Order level needs to be maintained. MRP will automatically re-order.  Often also called DFS (delivery from Stock process)
  • W24  MTO-B (Make To Order + Buy) - Finished Products are not stocked and are purchased when an order is received. No minimum stock levels defined
  • W26  MTO-P (Make To Order + Produce) - Finished Products are not stocked are manufactured / assembled when an order is received. No minimum stock levels 
Final finishing carried-out on products
In this scenario, raw materials or partly completed finished goods are available in stock. The final finishing step is carried out either when min. stock levels are reached or when order Examples could be Dying Textiles, Add  anodised coating to aluminium extrusions, Painting products in a specific colour. 
  • W28 - FTS (Finish To Stock) - Similar to the MTS-P  process but applies normally to a sub-contract process to raw materials already stocked.
  • W30 - FTO (Finish To Order) - Similar to the FTS  process,  but products are only finished when customer order is recieved 
  • W32 - MFTS (Make and Finish To Stock) - Similar to the MTS-P  process,  but applies normally to a manufacturing process and then a sub-contract process to raw materials which may or may not already be stocked. Examples could be making textile products then sending textiles for dying - then returning them to stock.
  • W34 - MFTO (Make and Finish To Order)  - Similar to the MFTS  process,  but products are only produced and  finished when customer order has received 
Multi - Warehouse Scenarios
Stock is transfered from a main warehouse or buffer to local warehouse or shop
  • W36 - TTO (Transfer To Order) - Similar to the TTS  process,  but products are only transferred when customer order has been received 
  • W38 - TTS (Transfer To Stock) - A process of transferring stock from one buffer warehouse to other satellite warehouse such as within multicompany scenario

Specific Industrial Processes 
  • W40 - Jobbing Process  (Processing additional activities based on customer supplied products)
  • W42 - Tools Handling
  • W44 - Customer Consignment Stock - Initial Agreement + Initial Fill
  • W45 - Customer Consignment Stock - Consumption + Refill
  • W46 - Customer Consignment Stock Return - End of Agreement (recover goods)/quality problems
  • W48 - Delivery Date Calculation
  • W50 - Invoicing
AFTERSALES
  • C01 Customer Complaint Management
  • C03 Remove Product Offer
  • C04 Service & Support management
FINANCIAL ACCOUNTING
  • F00 G/L Accounting
  • F01 Inventory & Stock Valuation
  • F02 Receivables
  • F03 Payables
  • F04 Payroll
  • F05 Travel Expenses
  • F06 Cash Management
  • F07 Taxes
  • F08 Fixed Assets
  • F09 Reporting
  • F10 Financial Closing
  • F11 Budgeting
  • F12 Credit & Risk Management
FOREIGN TRADE
DECLARATIONS TO AUTHORITIES / INBOUND
DECLARATIONS TO AUTHORITIES / OUTBOUND
CUSTOMS PROCESSES
LEGAL REQUIREMENTS


References



Further Reading

Business Processes in OpenERP

Configuration of Knowledge Management in OpenERP

Printing Report, Labels, Forms in OpenERP

Example xPython Programming and OpenERP Interfacing

OpenERP Implementation Approach