[Part 2] How a Malaysian Furniture Maker Cut Production Time by 45% with Odoo MRP

Short Answer: In Part 2 of the WoodCraft Industries case study, we dive deep into how Odoo MRP automated their Bill of Materials (BOM), work order routing, and material procurement — reducing manual planning from 4 hours to 30 minutes daily.

Table of Contents

• The MRP Workflow Explained
• Bill of Materials (BOM) Setup
• Work Order Routing
• Automated Procurement
• Frequently Asked Questions
• Results After 3 Months
• Summary

The MRP Workflow Explained

Odoo MRP works in a continuous loop: Sales Order → Production Order → Material Check → Procurement → Manufacturing → Delivery. Here's how WoodCraft's workflow transformed:

Before Odoo

1. Sales team writes order on paper
2. Production planner checks stock manually (30 min)
3. Creates work order on Excel (15 min per order)
4. Calls suppliers for materials (20 min per order)
5. Prints and distributes paper work orders

After Odoo

1. Sales order auto-triggers production order
2. System checks stock and generates procurement (instant)
3. Work order auto-created with BOM and routing (instant)
4. Purchase orders auto-sent to suppliers (instant)
5. Digital work orders on tablets at each workstation

Bill of Materials (BOM) Setup

Systum360 created BOMs for WoodCraft's top 20 products, each with:

• Components — Wood, hardware, finish, packaging
• Quantities — Per-unit material requirements
• Routing — Cutting → Assembly → Sanding → Finishing → QC → Packing
• Alternatives — Substitute materials for when primary stock runs low

Work Order Routing

Each product follows a defined routing through work centers:

Automated Procurement

When a production order is created, Odoo automatically:

1. Checks current stock levels for all BOM components
2. Calculates shortfall quantities
3. Generates purchase orders for approved suppliers
4. Sends POs via email (or supplier portal)
5. Tracks delivery dates and alerts on delays

Step-by-Step: Implementing Odoo MRP

1. Map your production process — Document every step from raw material to finished product
2. Create Bills of Materials — Start with your top 20 products, list all components and quantities
3. Define work center routing — Set up each workstation with time estimates and capacity
4. Configure reorder rules — Set minimum stock levels for all raw materials
5. Train shop floor staff — Use tablets for digital work orders with step-by-step instructions
6. Run parallel for 2 weeks — Compare MRP suggestions with manual planning before going live

Frequently Asked Questions

How detailed should BOMs be?

Start with your top 20 products. Include all major components and materials. You can add sub-assemblies and detailed routing later. WoodCraft started with 20 BOMs and expanded to 150+ within 6 months.

What if a supplier is late?

Odoo alerts you when a PO delivery date is approaching. You can set safety stock levels and reorder points to buffer against supplier delays.

Can workers see work orders on the shop floor?

Yes. Odoo provides a tablet-friendly interface for shop floor workers. They see their current work order, instructions, and can log time and mark operations as complete.

How does MRP handle rush orders?

Rush orders can be prioritized in the production schedule. Odoo recalculates material requirements and procurement timelines automatically.

Results After 3 Months

Pros

• ✅ Proven results — real metrics from a real Malaysian business
• ✅ Scalable approach — same methodology works for any size company
• ✅ Quick implementation — 12 weeks from start to go-live

Cons Encountered

• ⚠️ Change management — staff needed time to adapt to digital workflows
• ⚠️ Data migration — initial setup required significant effort
• ⚠️ Customization — some processes needed tailored configuration

Summary

WoodCraft's MRP implementation shows how Odoo transforms manufacturing operations. Automated BOMs, routing, and procurement reduced daily planning from 4 hours to 30 minutes. Contact Systum360 for a manufacturing assessment.

📞 Contact us: +6011 5995 0954 | tech@systum360.com | www.systum360.com