Process Costing in Manufacturing Process Industrial Chemical Fertilizer Production Management
Streamline Raw Material Procurement and Processing
Integrated Production Planning for Chemical Fertilizer Plants
Accurate Material Requirements Planning (MRP) in Odoo
Boost Operational Efficiency for Chemical Manufacturing Units
The Industrial Chemical Fertilizer Production Management solution in Odoo is designed to streamline and control every aspect of chemical and fertilizer plant operations from raw material planning to cost tracking. Key features include a comprehensive Bill of Materials (BoM) that defines inputs like acids, minerals, and processing steps such as reaction, granulation, drying, and neutralization. The system supports accurate process costing, by product tracking, and automatic cost splitting for multi product outputs. Manufacturing Orders (MO) and Work Orders allow real time tracking of raw chemical usage, machine and labour effort, and actual cost per production batch. Operators record operation wise data directly in the system, ensuring precise cost monitoring. Job Cost Sheets offer a clear comparison of planned vs. actual usage enabling detailed cost reconciliation and insight into production efficiency. Integrated Purchase Requisitions ensure timely procurement of materials, maintaining uninterrupted plant operations and aligning procurement with actual production needs.
Main Features:
- The Bill of Materials (BoM) form defines all inputs and processing steps required to produce industrial chemicals (like acids, alkalis, solvents) or fertilizers (like urea, DAP, potash).It includes:
- Raw materials: e.g., sulphuric acid, phosphoric acid, rock phosphate, ammonia, minerals.
- Processing steps: e.g., reaction, mixing, granulation, drying, neutralization.
- Process Costing calculation: Estimates for materials, labour, and machine/utility usage.
- By-products: Records secondary outputs such as gypsum, spent acid, or chemical residues for reuse or disposal. If the process creates multiple final products, the system automatically splits and tracks the cost for each product.
- Manufacturing Orders (MO) Form View Overview
- Manufacturing Orders are used to plan, manage, and track each production batch.They display:
- The required raw chemicals and minerals,
- Linked work orders for each process step (e.g., blending, heating, filtration).
- By-products produced during manufacturing.As production progresses, the system updates actual quantities used and time spent, then calculates the actual cost of raw materials, labour, and machines giving you a complete batch-wise cost summary for accurate pricing and profit tracking.
- Work Orders Form View for Operation-Level Cost Tracking
- Work Orders break down the full process into individual operations such as reaction, neutralization, mixing, drying, or packing.Operators record:
- Actual time spent on each operation.
- Machine or utility hours used (e.g., reactors, boilers, compressors).These updates automatically calculate the exact cost of each stage and keep the total batch cost in the Manufacturing Order accurate.
- By-products produced during manufacturing.As production progresses, the system updates actual quantities used and time spent, then calculates the actual cost of raw materials, labour, and machines giving you a complete batch-wise cost summary for accurate pricing and profit tracking.
- Job Cost Sheets for Final Cost Reconciliation
- Job Cost Sheets compare planned vs. actual usage for:
- Raw chemicals and minerals,Worker time.
- Machine or utility costs.After production, they show what was actually consumed in the batch. This helps analyse the true production cost for each chemical or fertilizer batch and provides insights for future cost control and process improvement.
- Purchase Requisitions for Material Planning
- Purchase Requisitions help request raw materials or chemicals like acids, minerals, catalysts, or packaging materials linked directly to the production plan.This ensures:
- Raw materials arrive on time,
- No production delays occur,
- The procurement team stays connected to actual plant needs for continuous production flow.
Workflow Overview:
- Bill of Materials (BoM) Configuration:
- Define the chemical formulation, including raw materials like sulphuric acid, ammonia, and rock phosphate.
- Set up process operations like neutralization, granulation, drying, and packing, each linked to a work center.
- Add by-products (e.g., gypsum, spent acids) and estimate Direct Material Cost, Direct Labour Cost, and Overhead Cost.
- Cost allocation across multiple finished goods is automatically handled for multi-product chemical batches.
- Job Cost Sheet Preparation:
- Presents a detailed breakdown of expected chemical inputs, plant staff working hours, and utility/machine cost projections.
- A key tool for cost control and budgeting in fertilizer production.
- Manufacturing Order (MO) Creation Confirmation:
- The Production Scheduler initiates the MO using the configured BoM.
- Odoo reserves inventory (e.g., acids, minerals) and schedules each plant operation.
- MO includes tabs for Work Orders, By-Products, and detailed cost estimation for the full batch.
- Work Order Execution:
- Technicians and operators access assigned work orders for each process (reaction, mixing, etc.).
- They record actual labour time and machine/utility consumption (e.g., reactors, boilers).
- Manufacturing Order Update with Actuals:
- The system automatically captures actual consumption of chemicals and utilities.
- Adjustments reflect real-time inventory and cost accounting accuracy.
- Production Finalization Job Cost Sheet Closure:
- On clicking Produce All, Odoo marks the batch as completed.
- Final actual material usage, labour hours, and overhead costs are logged.
- Enables a transparent planned vs. actual cost comparison for each chemical or fertilizer production batch.
Key Benefits:
- Full control over chemical process manufacturing in Odoo.
- Accurate tracking of fertilizer plant operations.
- Real time insights into cost efficiency, batch productivity, and material utilization.
The Industrial Chemical & Fertilizer Production Management solution in Odoo is designed to support a wide range of industries involved in chemical and fertilizer manufacturing. This includes fertilizer production units that manufacture urea, DAP, NPK, potash, and phosphate based fertilizers. It also caters to inorganic chemical plants producing acids like sulphuric, nitric, and hydrochloric acid, as well as alkalis such as sodium hydroxide and potassium hydroxide. Organic chemical manufacturers dealing with solvents, alcohols, and agricultural compounds are equally supported. The system extends to the agrochemical sector, covering the production of pesticides, herbicides, and fungicides. Water treatment chemical plants producing coagulants, flocculants, and disinfectants can effectively manage operations using this solution. It is also suitable for industries manufacturing industrial cleaning chemicals, such as degreasers and detergents, as well as companies in mining and mineral processing using flotation agents and beneficiation chemicals. Additionally, the solution is ideal for petrochemical additive manufacturers, specialty chemical producers of dyes and catalysts, environmental and waste treatment chemical units, and even construction chemical plants producing admixtures and waterproofing agents used in agricultural infrastructure.