[ADD] Manufacturing: MO costs

closes odoo/documentation#10015

Signed-off-by: John Holton (hojo) <hojo@odoo.com>

content/applications/inventory_and_mrp/manufacturing/basic_setup.rst

@@ -12,3 +12,4 @@ Basic setup
    basic_setup/one_step_manufacturing
    basic_setup/two_step_manufacturing
    basic_setup/three_step_manufacturing
+   basic_setup/mo_costs

content/applications/inventory_and_mrp/manufacturing/basic_setup/mo_costs.rst

@@ -0,0 +1,216 @@
+=========================
+Manufacturing order costs
+=========================
+
+.. |MO| replace:: :abbr:`MO (Manufacturing Order)`
+.. |MOs| replace:: :abbr:`MOs (Manufacturing Orders)`
+.. |POs| replace:: :abbr:`POs (Purchase Orders)`
+.. |BoM| replace:: :abbr:`BoM (Bill of Materials)`
+.. |BoMs| replace:: :abbr:`BoMs (Bills of Materials)`
+
+The ability to accurately calculate the cost of manufacturing a product is critical when determining
+product profitability. Odoo's *Manufacturing* app simplifies this calculation by automatically
+calculating the cost to complete each manufacturing order (MO), as well as the average production
+cost of a product, based on all completed |MOs|.
+
+.. important::
+   Odoo's Manufacturing app distinguishes between the *manufacturing order cost* and the *real cost*
+   of an |MO|.
+
+   The |MO| cost represents how much it *should* cost to complete an |MO|, based on the
+   configuration of the product's bill of materials (BoM). This takes into account the cost and
+   quantity of components, as well as the cost of completing the necessary operations.
+
+   The real cost represents how much it *actually* costs to complete the |MO|. A few factors can
+   cause the real cost to differ from the |MO| cost. For example, an operation may take longer to
+   complete than estimated, a greater component quantity might be needed than was specified on the
+   |BoM|, or the price of components may change during manufacturing.
+
+Cost configuration
+==================
+
+Odoo computes |MO| costs based on the configuration of the |BoM| used to manufacture a product. This
+includes the cost and quantity of components and operations listed on the |BoM|, in addition to the
+operating costs of the work centers where those operations are carried out.
+
+Component cost
+--------------
+
+Component cost is calculated automatically, based on the average purchase cost of a component across
+all purchase orders (POs). To view a component's cost, navigate to :guilabel:`Inventory app -->
+Products --> Products`, and select a component product. The cost is displayed in the
+:guilabel:`Cost` field of the :guilabel:`General Information` tab, on the component's product form.
+
+It is possible to set the cost of a component manually, by clicking the :guilabel:`Cost` field on
+the component's product form, and entering a value. However, any future |POs| for the component
+override a value entered manually, resetting the :guilabel:`Cost` field back to an automatically
+computed value.
+
+Work center cost
+----------------
+
+To set the operating cost for a specific work center, navigate to :menuselection:`Manufacturing app
+--> Configuration --> Work Centers`, and select a work center.
+
+To set the operating cost for the work center, as a whole, enter a value in the :guilabel:`per
+workcenter` field, located beside the :guilabel:`Cost per hour` section on the work center's
+:guilabel:`General Information` tab. This operating cost is used regardless of how many employees
+are working at the work center at any given time.
+
+To set the operating cost for the work center based on the number of employees working there at a
+given time, enter a value in the :guilabel:`per employee` field, located beside the :guilabel:`Cost
+per hour` section on the work center's :guilabel:`General Information` tab. For example, if `25.00`
+is entered in the :guilabel:`per employee` field, it costs $25.00 per hour for *each* employee
+working at the work center.
+
+Note that, if values are entered in both the :guilabel:`per workcenter` *and* :guilabel:`per
+employee` fields, the value in the :guilabel:`per workcenter` field takes precedence, and the value
+in the :guilabel:`per employee` field is ignored.
+
+.. important::
+   It is also possible to set a per hour cost for specific employees, by navigating to the
+   :menuselection:`Employees` app, selecting an employee, clicking the :guilabel:`HR Settings` tab
+   on their employee form, and entering a value in the :guilabel:`Hourly Cost` field.
+
+   Just like the *per workcenter* field on a work center form, the :guilabel:`Hourly Cost` field on
+   an employee's form overrides the *per employee* field on a work center form.
+
+   However, the *per workcenter* field takes precedence over both the *per employee* field on the
+   workcenter form *and* the :guilabel:`Hourly Cost` field on the employee form.
+
+|BoM| cost
+----------
+
+Configuring a |BoM| so Odoo can accurately calculate the cost of |MOs| that use it requires two
+steps. First, components **must** be added, and the required quantity specified. Second, operations
+**must** be added, along with the work centers where they are carried out.
+
+Begin by navigating to :menuselection:`Manufacturing app --> Products --> Bills of Materials`.
+Select a |BoM|, or create a new one by clicking :guilabel:`New`.
+
+In the :guilabel:`Components` tab of the |BoM| form, add each component by clicking :guilabel:`Add a
+line`, selecting the component from the drop-down menu in the :guilabel:`Component` column, and
+entering the quantity in the :guilabel:`Quantity` column.
+
+In the :guilabel:`Operations` tab, add an operation by clicking :guilabel:`Add a line` to open the
+:guilabel:`Create Operations` pop-up window. Enter a title for the operation in the
+:guilabel:`Operation` field.
+
+Select the :guilabel:`Work Center` where the operation is carried out. Then, add a
+:guilabel:`Default Duration`, which is the estimated amount of time the operation takes to complete.
+
+By default, the :guilabel:`Duration Computation` field is set to :guilabel:`Set duration manually`,
+which means that the number entered in :guilabel:`Default Duration` field is always used as the
+expected duration of the operation.
+
+Selecting :guilabel:`Compute based on tracked time` causes Odoo to automatically compute the default
+duration based on a certain number of work orders, which is set in the :guilabel:`Based on` field.
+Before there are work orders to compute this duration, the value in the :guilabel:`Default Duration`
+field is used instead.
+
+The hourly cost of operating the work center, and the duration of the operation, are used to
+calculate the operation's cost.
+
+Finally, click :guilabel:`Save & Close` to add the operation to the |BoM|, and close the
+:guilabel:`Create Operations` pop-up window. Alternatively, click :guilabel:`Save & New` to add the
+operation to the |BoM|, and open a blank :guilabel:`Create Operations` pop-up window to add another
+operation.
+
+.. seealso::
+   For a full overview of |BoM| configuration, see the documentation on :doc:`bills of materials
+   <bill_configuration>`.
+
+|MO| overview
+=============
+
+Each |MO| has an *overview* page, which lists a variety of information about the |MO|, including
+|MO| cost and real cost. To view the overview for an |MO|, navigate to :menuselection:`Manufacturing
+app --> Operations --> Manufacturing Orders`, and select an |MO|. Then, click the :icon:`fa-bars`
+:guilabel:`Overview` smart button at the top of the |MO|.
+
+Both the |MO| cost and real cost take into account the cost and quantity of components, as well as
+the cost of completing each work order. The overview page lists a row for each of these values, with
+the sum of them listed at the bottom of the :guilabel:`MO Cost` and :guilabel:`Real Cost` columns.
+
+Before work begins on an |MO|, the :guilabel:`MO Cost` and :guilabel:`Real Cost` columns display the
+same costs. This is the *estimated* cost of completing the |MO|.
+
+However, once work commences, the values in the :guilabel:`Real Cost` column may begin to diverge
+from the values in the :guilabel:`MO Cost` column. This happens if a different component quantity is
+used than was listed on the |MO|, or if the duration of a work order is different than expected.
+
+Once the |MO| has been completed by clicking :guilabel:`Produce All`, the values in the
+:guilabel:`MO Cost` column update to match those displayed in the :guilabel:`Real Cost` column.
+
+.. image:: mo_costs/overview.png
+   :align: center
+   :alt: The MO Overview page.
+
+Average manufacturing cost
+==========================
+
+In addition to the cost of each individual |MO| for a product, Odoo also tracks the average cost of
+manufacturing the product, taking into account the cost of every completed |MO|. To view this,
+navigate to :menuselection:`Inventory app --> Products --> Products`, and select a product.
+
+The manufacturing cost of the product is displayed per unit of measure in the :guilabel:`Cost`
+field, located in the :guilabel:`General Information` tab. The value continues to update as the
+costs of additional |MOs| are factored into the average cost.
+
+To the right of the :guilabel:`Cost` field is a :guilabel:`Compute Price from BoM` button, which
+only appears for products with at least one |BoM|. Click this button to reset the cost of the
+product to the expected cost, which only takes into account the components and operations listed on
+the |BoM|.
+
+.. important::
+
+   Be aware that clicking :guilabel:`Compute Price from BoM` does not set the price permanently. The
+   cost continues to update based on the average of the |BoM| price and the real cost of any future
+   |MOs|.
+
+.. admonition:: Example workflow: manufacturing cost
+   :class: alert alert-success
+
+   Golf product manufacturer *Fairway Fields* produces a variety of golf products, including an
+   indoor *putting green*. They have configured a |BoM| for the putting green, so Odoo automatically
+   calculates the manufacturing cost of each putting green |MO|.
+
+   The |BoM| lists two components:
+
+   - One unit of *green felt*, which costs $20.00.
+   - One unit of a *rubber pad*, which costs $30.00.
+
+   The |BoM| also lists four operations, all of which are carried out at *Assembly Station 1*, which
+   has an hourly operating cost of $30.00. Those operations are as follows:
+
+   - *Cut felt*: default duration of seven minutes, for a total cost of $3.50.
+   - *Cut rubber pad*: default duration of five minutes, for a total cost of $2.50.
+   - *Attach pad to felt*: default duration of 15 minutes, for a total cost of $7.50.
+   - *Cut holes*: default duration of three minutes, for a total cost of $1.50.
+
+   Altogether, the components required to produce one putting green cost $50.00, and the operations
+   required cost $15.00, for a total manufacturing cost of $65.00. This cost is reflected in the
+   :guilabel:`Cost` field on the putting green's product form.
+
+   Fairway Fields confirms an |MO| for one putting green. Before manufacturing starts, the |MO|
+   overview lists a cost of `$65.00` in both the :guilabel:`MO Cost` and :guilabel:`Real Cost`
+   fields.
+
+   .. image:: mo_costs/overview-before.png
+      :align: center
+      :alt: The MO Overview page for one putting green, before production starts.
+
+   Manufacturing begins, and the operations take ten minutes longer than expected, for a total
+   manufacturing time of 40 minutes. This deviation from the |BoM| is reflected on the |MO|
+   overview, which now lists a :guilabel:`Real Cost` of `$70.00`.
+
+   .. image:: mo_costs/overview-during.png
+      :align: center
+      :alt: The MO Overview page for one putting green, during production.
+
+   Once manufacturing is finished, and the |MO| is marked as *Done*, the |MO| overview updates
+   again, so the values in the :guilabel:`MO Cost` and :guilabel:`Real Cost` columns match, each
+   displaying a value of `$70.00`.
+
+   On the putting green's product page, the :guilabel:`Cost` field now displays a cost of `$67.50`,
+   the average of the original cost of $65.00 and the real cost of $70.00 from the |MO|.