Manage Subcontracting and Toll Manufacturing

1. Overview & Business Value#

This comprehensive operational guide details the architecture, business workflows, configuration parameters, and execution steps for Manage Subcontracting and Toll Manufacturing within SmartERP.

Managing outsourced production steps, sending drop-shipped components to subcontractors, and receiving finished assemblies.

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2. Prerequisites & Security Access Groups#

• Required Modules: mrp, quality_control, smarterp_manufacturing_costing
• Security Groups:
  • Manufacturing User (Technical ID: mrp.group_mrp_user)
  • Manufacturing Administrator (Technical ID: mrp.group_mrp_manager)
  • Quality Inspector (Technical ID: quality.group_quality_user)
• Master Data Dependencies: Bills of Materials (BoM), routing operations, work centers with machine/labor hourly rates, raw material stock, and inspection checkpoints.

3. Step-by-Step Configuration & Execution#

Step 1: Navigating to the Module Interface#

1. Log into your SmartERP instance at https://smarterp.et/odoo.
2. Open the main App Switcher (grid icon in the top-left corner).
3. Select the Manufacturing app icon.
4. From the top navigation bar, open Manufacturing → Operations → Manufacturing Orders / Work Orders; Quality → Quality Control.

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Step 2: Creating and Parameterizing Records#

1. Click the New button in the top-left control panel.
2. Complete the mandatory fields in the record form:
   • Finished Product (Mandatory): Manufacturable item variant linked to an active Bill of Materials
   • Quantity to Produce (Mandatory): Target production batch volume in standard unit of measure
   • Bill of Materials (BoM) (Mandatory): Active engineering recipe defining component roll-ups and operation steps
   • Scheduled Date (Mandatory): Target production execution date and shift allocation
3. Configure optional operational parameters and localized tags as required:
   • Work Center Routing (Optional): Specific shop floor machine or assembly station sequence
   • Lot / Serial Number (Optional): Assigned traceability lot for finished goods batch tracking
   • Analytic Cost Account (Optional): Cost absorption center for direct labor and utility overhead
4. Click the Save icon in the control bar to commit the record.

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Step 3: Validating and Processing Transactions#

• State Transitions: Execute operational state progression (Draft → Confirmed → In Production → Quality Gate Passed → Done → Cost Closed).
• Ledger & System Impact: Consumes raw materials from inventory (crediting stock valuation), absorbs labor/machine overhead, and debits finished goods inventory at actual cost.
• Audit Verification: Automated recording of author ID, timestamp, and immutable revision history.

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Subcontracting Operations in Ethiopia#

When domestic plants lack specialized machinery (e.g., specialized chrome plating, powder coating, or precision heat treatment), operations are subcontracted to external vendors while raw materials remain corporate property.

Procedure: Configuring Subcontracted Production#

1. Open the Bill of Materials for the product.
2. Set BoM Type to Subcontracting.
3. In the Subcontractors field, select the certified partner (e.g., Addis Precision Coating PLC).
4. In the Components tab, list the items provided to the subcontractor:
   • Raw Steel Brackets: 100 units (supplied by your plant).
   • Chemical Coating Service: Subcontractor processing fee.
5. Save the BoM.

Executing the Subcontracted Flow#

1. Create a Purchase Order for the finished subcontracted item.
2. Upon confirming the PO, SmartERP automatically generates a Resupply Subcontractor Delivery Order to ship the raw steel brackets to the vendor's location.
3. When the vendor delivers the finished coated brackets, validate the warehouse receipt.
4. SmartERP automatically relieves the raw brackets from the subcontractor's virtual location and registers the completed assemblies into stock.

4. Advanced Configuration Points#

• Automated Actions & Scheduled Tasks (Crons):
  • MRP: Recalculate BoM standard costs (mrp.ir_cron_bom_cost_roll): Runs weekly to update standard costing from latest procurement purchase prices
  • Quality: Trigger periodic inspection alerts (quality.ir_cron_inspection_check): Runs daily to flag mandatory quality testing queues
  • Workcenter: Update OEE statistics (mrp.ir_cron_workcenter_oee): Runs hourly to compute Overall Equipment Effectiveness metrics
• Custom Print Templates & Reports:
  • Production Order Traveler & Pick List
  • Shop Floor Work Order Execution Slip
  • Quality Inspection Certificate & Non-Conformance Report
  • Manufacturing Cost Analysis & Variance Ledger
• Multi-Company Rules: Record-level security isolation under Company 1 (Ashewa Technology Solutions S.C.), preventing cross-company ledger leakage across parent and subsidiary legal entities.

5. Comprehensive Troubleshooting Matrix#