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How to Configure Manufacturing in Odoo 17: Setup Guide

DeployMonkey Team · March 24, 2026 6 min read

Manufacturing in Odoo 17

Odoo 17 provides a complete MRP system with bills of materials, work centers, routing operations, manufacturing orders, and integration with inventory and procurement. This guide covers the essential configuration steps.

Step 1: Install Manufacturing

Navigate to Apps and install Manufacturing. This installs the mrp module with all core production management features.

Step 2: Configure Settings

Go to Manufacturing > Configuration > Settings:

  • Work Orders — Enable for routing operations and work center-based production tracking
  • Byproducts — Enable to define secondary outputs from manufacturing processes
  • Subcontracting — Enable for outsourced manufacturing management

Step 3: Set Up Work Centers

Navigate to Manufacturing > Configuration > Work Centers:

  • Create work centers for each machine or production area
  • Configure working hours, setup/cleanup times, and hourly cost rates
  • Set capacity per cycle and per-product capacity overrides
  • Define alternative work centers for flexible scheduling

Step 4: Create Bills of Materials

Go to Manufacturing > Configuration > Bills of Materials:

  • Select the product to manufacture and set BOM type (Manufacture or Kit)
  • Add components with required quantities per unit
  • Add routing operations to define the production steps and assigned work centers
  • Set consumption policies to control component usage flexibility
  • Configure lead times for production scheduling

Step 5: Process Manufacturing Orders

Navigate to Manufacturing > Operations > Manufacturing Orders:

  1. Create an MO by selecting the product and quantity
  2. Odoo loads the BOM and computes component requirements
  3. Confirm the MO to reserve components from inventory
  4. Process each work order at the assigned work center
  5. Record production quantities and validate to complete
  6. Finished goods are added to inventory automatically

Step 6: Automated Procurement

Configure automatic MO creation:

  • Set the Manufacture route on products that are produced in-house
  • Create reorder rules to trigger MOs when stock falls below minimum levels
  • Use sale_mrp for automatic MO creation from sales orders

Step 7: Reporting and Analysis

Manufacturing reports are available under Manufacturing > Reporting:

  • Production Analysis by product, period, and work center
  • Cost tracking — planned vs. actual production costs
  • Work center utilization and efficiency metrics

Key Differences from Later Versions

  • Operation dependencies (blocked-by relationships) were enhanced in v18/v19
  • Batch sizing features on BOMs improved in later versions
  • Product catalog mixin for component selection is newer
  • Core MRP architecture remains consistent across v17, v18, and v19