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Odoo ERP

Automating Multistage Manufacturing with Subcontracting in Odoo

Implemented a complex make-to-order workflow with multi-level BOMs and subcontracting in Odoo, giving a manufacturer full production traceability and fewer material delays.

Industry
Manufacturing
Region
India
Stack
Odoo 18 · Manufacturing, Inventory, Quality, Sales, Purchase, Accounting

Key outcome

Greater production traceability, reduced material delays, and automated procurement triggers

The challenge

A precision component manufacturer operated a multi-stage production process involving in-house machining, heat treatment (outsourced to a specialist vendor), and final assembly. Work-in-progress was tracked on paper routing cards, and subcontracting was managed through informal vendor calls and email.

The result: materials were delayed when vendors were not informed on time, the exact status of a production order was unknown between stages, and quality issues at the final stage could not be traced back to which subcontract batch was involved.

What we configured

KometCode implemented Odoo 18 Manufacturing with a full make-to-order (MTO) routing:

Multi-level Bills of Materials

  • Three-level BOM structure: finished product → sub-assemblies → raw materials
  • Subcontracting BOM configured for the heat treatment stage — Odoo triggers a purchase order to the heat treatment vendor automatically when that stage is reached in the routing
  • Phantom BoMs used for sub-components that are consumed in-line rather than stocked

Subcontracting workflow

  • When a work order reaches the heat treatment routing step, Odoo auto-generates a purchase order to the subcontractor
  • Components are shipped to the vendor; receipt is logged in Odoo when the processed parts return
  • Costs for subcontracted operations flow into the manufacturing order’s cost tracking automatically

Shop floor routing

  • Four work centres configured: Raw Material Prep, CNC Machining, Heat Treatment (subcontracted), Final Assembly & QC
  • Tablet-accessible work order list for each work centre — operators mark steps complete in real time
  • Work order notes and material consumption logged against the specific routing step

Quality integration

  • Quality control points configured at receipt (incoming raw material) and at Final Assembly
  • Failed QC triggers a non-conformance report linked to the manufacturing order and the relevant supplier batch
  • Quality statistics visible per product and per supplier

Procurement automation

  • Reorder rules configured for raw materials with supplier-specific lead times
  • MTO route ensures materials are procured only when a confirmed sales order exists — no overstock
  • Automated RFQ generation when stock falls below safety levels

Results

  • Material delays reduced by 60% — automated POs to the heat treatment vendor eliminated manual coordination; vendors are notified the moment a routing step is triggered
  • Full batch traceability — any quality issue at Final Assembly can be traced back to which raw material lot and which subcontract run was involved
  • Production costs visible per order — management can see the actual vs. standard cost for each manufacturing order including subcontracting costs
  • Zero paper routing cards — the shop floor runs entirely through Odoo work orders on tablets

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