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Tracking Work Order Time and Labor Costs in Odoo Manufacturing

Record and analyze actual work order times in Odoo Manufacturing - comparing planned vs. actual labor hours, computing real production costs, and identifying inefficiencies by work center.

Work Order Time Tracking in Odoo Manufacturing#

Planned production times are estimates. Tracking actual work order times reveals the gap between plan and reality - enabling accurate cost computation, capacity planning adjustments, and process improvement.

Enabling Work Order Time Tracking#

Manufacturing → Configuration → Settings → enable Work Orders and Time Tracking.

Planned vs. Actual Time#

Each operation on a BOM has a Planned Duration (e.g., 2 hours to machine one batch).

On the work order:

  • Planned Duration: from the BOM operation
  • Actual Duration: recorded by the operator during production

Variance = Actual − Planned → negative is better (finished faster), positive is a concern.

Recording Time#

Method 1 - Manual Entry:

Manufacturing → Work Orders → [Work Order] → Duration: enter actual hours and minutes.

Method 2 - Timer:

Manufacturing → Work Orders → [Work Order] → Start / Pause / Stop:

  • Operator clicks Start when beginning
  • Pauses for breaks or interruptions
  • Stops when finished
  • Odoo records elapsed time automatically

Method 3 - Tablet/Shop Floor:

Using the shop floor interface on a tablet:

  • Operator scans the work order QR code
  • Taps Start → timer begins
  • Taps Done → timer stops, work order is completed

Labor Cost Computation#

For each work center, set the labor cost per hour:

Manufacturing → Configuration → Work Centers → [Work Center] → Costs tab:

  • Time Efficiency: cost per hour (e.g., $45/hour for the CNC operator)
  • Employee Cost: if individual operator rates vary, link to payroll

Actual labor cost = Actual Duration × Cost per Hour

For the production cost of a finished product:

  • Component cost + Actual labor cost across all work orders = Total Production Cost
  • Compare to standard cost → variance analysis

Reporting#

Manufacturing → Reporting → Work Center Analysis:

  • Planned vs. actual hours by work center and period
  • Cost per unit (actual labor cost per finished product)
  • Efficiency %: Planned / Actual (>100% = faster than planned = efficient)

Consistently below 85% efficiency at a specific work center: investigate operator skill gaps, machine condition, or unrealistic planned times.

Adjusting BOM Operation Times#

After accumulating actual time data for 3-6 months:

Manufacturing → BOM → Operations tab → [Operation] → Duration Computation:

  • Update planned duration to better reflect actual performance
  • This improves scheduling accuracy for future orders

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