Setting Up the Work Centre
When we go into our Manufacturing module in Odoo 8 with mrp_production_real_cost installed, we will encounter the screen pictured above when we try to create a work centre.
The ingredients to our MRP Real Production Cost, which is what we might call the total cost of production, are Materials, Labour and Overhead.
We can register the Labour costs by inputting information into the Timesheet module. Note that the logging of labour hours is optional, and you may choose not to capture this in Odoo.
We also have to specify the Materials used and their costs in the Bill of Materials. The materials are not optional.
The place where many users get lost is in determining the Overhead. This is where the business must decide how to reasonably and realistically account for their costs which are not captured in Labour or Materials. This is also optional.
When OCA manufacturing module mrp_production_real_cost is installed, you will see fields for:
- Pre-op Costs
- Cost per Cycle
- Cost per Hour
- Post-op Costs
This cost is calculated by defining the time required before production multiplied with a costing product.
Cost per Cycle
The sum of all overhead costs associated with running one work centre cycle. This can include non-stockable supplies and other necessary additional resources.
Cost per Hour
This cost is the sum of all overhead costs associated with running the work centre divided by the number of hours the work centre is operating. NOTE: this cost DOES NOT include Cost per Cycle, it covers the rest of the operating costs.
This cost is calculated by defining the time required after production multiplied with a costing product.
When all of these costs are added together with Labour and Material costs, we will finally have the MRP real cost of production.