10
.. i18n: Information Systems have played an increasingly visible role over the past several years in
11
.. i18n: improving the competitiveness of business.
12
.. i18n: More than just tools for handling repetitive tasks, they're used to guide and advance
13
.. i18n: all of a company's' daily activities. Integrated management software is today very often a
14
.. i18n: key source of significant competitive advantage.
16
Information Systems have played an increasingly visible role over the past several years in
17
improving the competitiveness of business.
18
More than just tools for handling repetitive tasks, they're used to guide and advance
19
all of a company's' daily activities. Integrated management software is today very often a
20
key source of significant competitive advantage.
22
.. i18n: The standard response to a need for responsiveness, reliability, and rapidly
23
.. i18n: increasing expectations is to create an organization based on departments with
24
.. i18n: a clear linear structure, integrated around your operating processes. To
25
.. i18n: increase efficiency amongst salespeople, accountants, logistics staff and
26
.. i18n: everyone else you should have a common understanding of your problems.
28
The standard response to a need for responsiveness, reliability, and rapidly
29
increasing expectations is to create an organization based on departments with
30
a clear linear structure, integrated around your operating processes. To
31
increase efficiency amongst salespeople, accountants, logistics staff and
32
everyone else you should have a common understanding of your problems.
34
.. i18n: For this you need a common language for shared references, policies and communication.
35
.. i18n: An ERP (Enterprise Resource Planning) system makes the ideal platform for this common reference
38
For this you need a common language for shared references, policies and communication.
39
An ERP (Enterprise Resource Planning) system makes the ideal platform for this common reference
42
.. i18n: Open Source software at the service of management
43
.. i18n: =================================================
45
Open Source software at the service of management
46
=================================================
48
.. i18n: Risks and integration costs are important barriers to all the advantages you gain from such systems.
49
.. i18n: That's why, today, few small- and medium-sized companies use ERP.
50
.. i18n: In addition, the larger ERP vendors such as SAP, Microsoft and Oracle haven't been able
51
.. i18n: to reconcile the power and comprehensive cover of an ERP system with the simplicity and flexibility
52
.. i18n: wanted by the users.
53
.. i18n: But this is exactly what small and medium enterprises are looking for.
55
Risks and integration costs are important barriers to all the advantages you gain from such systems.
56
That's why, today, few small- and medium-sized companies use ERP.
57
In addition, the larger ERP vendors such as SAP, Microsoft and Oracle haven't been able
58
to reconcile the power and comprehensive cover of an ERP system with the simplicity and flexibility
60
But this is exactly what small and medium enterprises are looking for.
62
.. i18n: The development processes of open source software, and the new business models adopted by their
64
.. i18n: provide a new way of resolving such problems of cost and quality for this kind of enterprise
67
The development processes of open source software, and the new business models adopted by their
69
provide a new way of resolving such problems of cost and quality for this kind of enterprise
72
.. i18n: To make an ERP system fully available to small and medium enterprises, cost reduction is the first
74
.. i18n: Open source software makes it possible to greatly reduce development costs by
75
.. i18n: aggressive reuse of open source software libraries; to eliminate intermediaries (the distributors),
76
.. i18n: with all of their expensive sales overhead; to cut out selling costs by free publication of the
78
.. i18n: and to considerably reduce the marketing overhead.
80
To make an ERP system fully available to small and medium enterprises, cost reduction is the first
82
Open source software makes it possible to greatly reduce development costs by
83
aggressive reuse of open source software libraries; to eliminate intermediaries (the distributors),
84
with all of their expensive sales overhead; to cut out selling costs by free publication of the
86
and to considerably reduce the marketing overhead.
88
.. i18n: Since there is open interaction among thousands of contributors and partners working on the same
90
.. i18n: the quality of the resulting software benefits greatly from the scrutiny.
91
.. i18n: And you can't be everything at once: accountant, software developer, salesperson,
92
.. i18n: ISO 9001 quality professional, specialist in agricultural products,
93
.. i18n: expert in the customs and habits of pharmaceutical vendors, just as a start.
95
Since there is open interaction among thousands of contributors and partners working on the same
97
the quality of the resulting software benefits greatly from the scrutiny.
98
And you can't be everything at once: accountant, software developer, salesperson,
99
ISO 9001 quality professional, specialist in agricultural products,
100
expert in the customs and habits of pharmaceutical vendors, just as a start.
102
.. i18n: Faced with these wide-ranging requirements, what could be better than a world network of
103
.. i18n: partners and contributors?
104
.. i18n: Everyone adds their own contribution according to their professional competence.
105
.. i18n: Throughout this book you'll see that the results exceed any reasonable expectations when such work
106
.. i18n: is well organized.
108
Faced with these wide-ranging requirements, what could be better than a world network of
109
partners and contributors?
110
Everyone adds their own contribution according to their professional competence.
111
Throughout this book you'll see that the results exceed any reasonable expectations when such work
114
.. i18n: But the real challenge of development is to make this solution simple and flexible, as well as
116
.. i18n: And to reach this level of quality you need a leader and co-ordinator who can organize all of these
118
.. i18n: So the development team of Tiny ERP, today called Open ERP, is responsible for most of
119
.. i18n: the organization, synchronization and coherence of the software.
121
But the real challenge of development is to make this solution simple and flexible, as well as
123
And to reach this level of quality you need a leader and co-ordinator who can organize all of these
125
So the development team of Tiny ERP, today called Open ERP, is responsible for most of
126
the organization, synchronization and coherence of the software.
128
.. i18n: And Open ERP offers great performance in all these areas!
130
And Open ERP offers great performance in all these areas!
132
.. i18n: The Open ERP Solution
133
.. i18n: =====================
135
The Open ERP Solution
136
=====================
138
.. i18n: Because of its modularity, collaborative developments in Open ERP have been cleanly integrated,
139
.. i18n: enabling any company to choose from a large list of available functions.
140
.. i18n: As with most open source software, accessibility, flexibility, and simplicity are important keywords
141
.. i18n: for development.
142
.. i18n: Experience has shown that there's no need to train users for several months on the system,
143
.. i18n: because they can just download it and use it directly.
145
Because of its modularity, collaborative developments in Open ERP have been cleanly integrated,
146
enabling any company to choose from a large list of available functions.
147
As with most open source software, accessibility, flexibility, and simplicity are important keywords
149
Experience has shown that there's no need to train users for several months on the system,
150
because they can just download it and use it directly.
152
.. i18n: So you'll find the modules for all types of needs, allowing your company to build its customized
154
.. i18n: by simply grouping and configuring the most suitable modules. Hundreds of modules are available.
156
So you'll find the modules for all types of needs, allowing your company to build its customized
158
by simply grouping and configuring the most suitable modules. Hundreds of modules are available.
160
.. i18n: They range from specific modules like the EDI interface for agricultural products,
161
.. i18n: which has been used to interface with Match and Leclerc stores, up to the generic demonstration
163
.. i18n: module for ordering sandwiches, which can take care of the eating preferences of your staff.
165
They range from specific modules like the EDI interface for agricultural products,
166
which has been used to interface with Match and Leclerc stores, up to the generic demonstration
168
module for ordering sandwiches, which can take care of the eating preferences of your staff.
170
.. i18n: The results are rather impressive. Open ERP (once called Tiny ERP when it started out) is management
171
.. i18n: software that is downloaded more than any other in the world, with over 600 downloads per day.
172
.. i18n: It's available today in 18 languages and has a world network of partners and contributors.
173
.. i18n: More than 800 developers participate in the projects on the collaborative development system of Tiny
176
The results are rather impressive. Open ERP (once called Tiny ERP when it started out) is management
177
software that is downloaded more than any other in the world, with over 600 downloads per day.
178
It's available today in 18 languages and has a world network of partners and contributors.
179
More than 800 developers participate in the projects on the collaborative development system of Tiny
182
.. i18n: To our knowledge, Open ERP is the only management system which is routinely used not only by big
183
.. i18n: companies but also by very small companies and independent companies. This diversity is an
184
.. i18n: illustration of the software's flexibility: a rather elegant coordination between people's
185
.. i18n: functional expectations of the software and great simplicity in its use.
187
To our knowledge, Open ERP is the only management system which is routinely used not only by big
188
companies but also by very small companies and independent companies. This diversity is an
189
illustration of the software's flexibility: a rather elegant coordination between people's
190
functional expectations of the software and great simplicity in its use.
192
.. i18n: And this diversity is also found in the various sectors and trades which use the software, including
193
.. i18n: agricultural products, textiles, public auctions, IT, and trade associations.
195
And this diversity is also found in the various sectors and trades which use the software, including
196
agricultural products, textiles, public auctions, IT, and trade associations.
198
.. i18n: Lastly, such software has arisen from the blend of high code quality, well-judged architecture and
199
.. i18n: use of free technologies. In fact, you may be surprised (if you're an IT person) to find that the
200
.. i18n: download size of Open ERP is only around 6 MB. When that's expanded during installation its size is mostly
201
.. i18n: attributable to all the official translations that are packaged with it, not the operating code.
202
.. i18n: We've moved a long way from
203
.. i18n: the days when the only people who could be expected to benefit from ERP were the owners of a widget
204
.. i18n: factory on some remote industrial estate.
206
Lastly, such software has arisen from the blend of high code quality, well-judged architecture and
207
use of free technologies. In fact, you may be surprised (if you're an IT person) to find that the
208
download size of Open ERP is only around 6 MB. When that's expanded during installation its size is mostly
209
attributable to all the official translations that are packaged with it, not the operating code.
210
We've moved a long way from
211
the days when the only people who could be expected to benefit from ERP were the owners of a widget
212
factory on some remote industrial estate.
214
.. i18n: Why this book?
215
.. i18n: --------------
220
.. i18n: Many books set out to tell readers about the management of enterprise, and equally many aim to
221
.. i18n: instruct the reader in the use of a piece of specialized software. We're not aiming to add to those
222
.. i18n: lists because our approach is intended to be different.
224
Many books set out to tell readers about the management of enterprise, and equally many aim to
225
instruct the reader in the use of a piece of specialized software. We're not aiming to add to those
226
lists because our approach is intended to be different.
228
.. i18n: Having restructured and reorganized many businesses, we wanted our management experience to generate
229
.. i18n: a work that is both instructive and practical. It was important for us not to write a manual about
230
.. i18n: Open ERP, but instead a work that deals with advanced management techniques realized through these
231
.. i18n: IT tools. You'll see what management practices might be useful, what's possible, and then how you
232
.. i18n: could achieve that in Open ERP.
234
Having restructured and reorganized many businesses, we wanted our management experience to generate
235
a work that is both instructive and practical. It was important for us not to write a manual about
236
Open ERP, but instead a work that deals with advanced management techniques realized through these
237
IT tools. You'll see what management practices might be useful, what's possible, and then how you
238
could achieve that in Open ERP.
240
.. i18n: It's this that we'll consider Open ERP for: not as an end in itself but just the tool you use to put
241
.. i18n: an advanced management system into place.
243
It's this that we'll consider Open ERP for: not as an end in itself but just the tool you use to put
244
an advanced management system into place.
246
.. i18n: Who's it for?
247
.. i18n: -------------
252
.. i18n: Written by two CEOs who have been successful with new technologies, this book is aimed at directors
253
.. i18n: and managers who have an ambition to improve the performance of their whole company's management
254
.. i18n: team. They're likely already to have significant responsibilities and possess the influence to get
255
.. i18n: things done in their company.
257
Written by two CEOs who have been successful with new technologies, this book is aimed at directors
258
and managers who have an ambition to improve the performance of their whole company's management
259
team. They're likely already to have significant responsibilities and possess the influence to get
260
things done in their company.
262
.. i18n: It's likely that most readers will come from small- and medium-sized enterprises (up to a few
263
.. i18n: hundred staff), and independent companies, because of the breadth of functions that need to be
264
.. i18n: analyzed and involved in change. The same principles also apply to larger companies, however.
266
It's likely that most readers will come from small- and medium-sized enterprises (up to a few
267
hundred staff), and independent companies, because of the breadth of functions that need to be
268
analyzed and involved in change. The same principles also apply to larger companies, however.
270
.. i18n: Structure of this book
271
.. i18n: ======================
273
Structure of this book
274
======================
276
.. i18n: Part One, :ref:`part1-steps`, starts with the installation of Open ERP. If you have already installed Open ERP you
277
.. i18n: can directly take your first steps on a guided tour in the :ref:`ch-guided` chapter. If you're already familiar
278
.. i18n: with Open ERP or Tiny ERP you can use the :ref:`ch-real` chapter to find out how to create a new workflow from
279
.. i18n: scratch in an empty database with nothing to distract you. Or you can skip directly to the :ref:`ch-crm` chapter in
280
.. i18n: the :ref:`part2-crm` part, to start with details of Open ERP's functional modules.
282
Part One, :ref:`part1-steps`, starts with the installation of Open ERP. If you have already installed Open ERP you
283
can directly take your first steps on a guided tour in the :ref:`ch-guided` chapter. If you're already familiar
284
with Open ERP or Tiny ERP you can use the :ref:`ch-real` chapter to find out how to create a new workflow from
285
scratch in an empty database with nothing to distract you. Or you can skip directly to the :ref:`ch-crm` chapter in
286
the :ref:`part2-crm` part, to start with details of Open ERP's functional modules.
288
.. i18n: Part Two, :ref:`part2-crm`, deals with Supplier and Customer Relationship Management (SRM & CRM). You'll find the
289
.. i18n: elements necessary for managing an efficient sales department there, and automating tasks to monitor
290
.. i18n: performance.
292
Part Two, :ref:`part2-crm`, deals with Supplier and Customer Relationship Management (SRM & CRM). You'll find the
293
elements necessary for managing an efficient sales department there, and automating tasks to monitor
296
.. i18n: Part Three, :ref:`part-genacct`, is devoted to general accounting and its key role in the management of the whole
299
Part Three, :ref:`part-genacct`, is devoted to general accounting and its key role in the management of the whole
302
.. i18n: Part Four, :ref:`part-ops`, handles all the operational functions of enterprise management:
303
.. i18n: Human Resources for managing projects,
304
.. i18n: through financial analyses supplied by analytic (or cost) accounts. You'll see how using Open ERP
305
.. i18n: can help you to optimize your leadership of an enterprise.
307
Part Four, :ref:`part-ops`, handles all the operational functions of enterprise management:
308
Human Resources for managing projects,
309
through financial analyses supplied by analytic (or cost) accounts. You'll see how using Open ERP
310
can help you to optimize your leadership of an enterprise.
312
.. i18n: Part Five, :ref:`part-phys`, describes the physical movement of Stocks and their Manufacture
313
.. i18n: (the transformation or products and services into other products).
315
Part Five, :ref:`part-phys`, describes the physical movement of Stocks and their Manufacture
316
(the transformation or products and services into other products).
318
.. i18n: Part Six, :ref:`part-trade`, deals with Purchasing and Selling goods and services.
320
Part Six, :ref:`part-trade`, deals with Purchasing and Selling goods and services.
322
.. i18n: Part Seven, :ref:`part-qual`, is focused on the Process description and Documentation handling that Open ERP
325
Part Seven, :ref:`part-qual`, is focused on the Process description and Documentation handling that Open ERP
328
.. i18n: Finally Part Eight, :ref:`part-config`, structured in two chapters, explains first how to administer and configure Open
329
.. i18n: ERP then provides a methodology for implementing Open ERP in the enterprise.
331
Finally Part Eight, :ref:`part-config`, structured in two chapters, explains first how to administer and configure Open
332
ERP then provides a methodology for implementing Open ERP in the enterprise.
334
.. i18n: .. note:: *About the authors*
336
.. i18n: **Fabien Pinckaers**
338
.. i18n: Fabien Pinckaers was only eighteen years old when he started his first company.
339
.. i18n: Today, over ten years later, he has founded and managed several new technology companies,
340
.. i18n: all based on Free / Open Source software.
342
.. i18n: He originated Tiny ERP, now Open ERP, and is the director of two companies including Tiny sprl,
343
.. i18n: the editor of Open ERP. In three years he has grown the Tiny group from one to sixty-five
345
.. i18n: without loans or external fund-raising, and while making a profit.
347
.. i18n: He has also developed several large scale projects, such as Auction-in-Europe.com,
348
.. i18n: which become the leader in the art market in Belgium.
349
.. i18n: Even today people sell more art works there than on ebay.be.
351
.. i18n: He is also the founder of the LUG (Linux User Group) of Louvain-la-Neuve,
352
.. i18n: and of several free projects like OpenReport, OpenStuff and Tiny Report.
353
.. i18n: Educated as a civil engineer (polytechnic), he has won several IT prizes in Europe such as Wired
354
.. i18n: and l'Inscene.
356
.. i18n: A fierce defender of free software in the enterprise,
357
.. i18n: he is in constant demand as a conference speaker and
358
.. i18n: he is the author of numerous articles dealing with free software in the management of the
361
.. i18n: **Geoff Gardiner**
363
.. i18n: Geoff has held posts as director of services and of IT systems for
364
.. i18n: international companies and in manufacturing.
365
.. i18n: He was Senior Industrial Research Fellow at Cambridge University's Institute for Manufacturing
366
.. i18n: where he focused on innovation processes.
368
.. i18n: He founded Seath Solutions Ltd (http://www.seathsolutions.com/) to provide services
369
.. i18n: in the use of Open Source software, particularly Open ERP, for business management.
371
.. i18n: Author of articles and books focusing on the processes and technology of innovation,
372
.. i18n: Geoff is also an active contributor to the Open ERP project.
373
.. i18n: He holds an MBA from Cranfield School of Management and
374
.. i18n: an MA in Engineering and Electrical Sciences from Trinity Hall, Cambridge.
375
.. i18n: He is a member of the Institution of Engineering and Technology and of the Society of Authors.
377
.. i18n: Having observed, suffered, and led process implementation projects in various organizations,
378
.. i18n: he has many thoughts to share on the successful adoption of an effective management automation
381
.. note:: *About the authors*
385
Fabien Pinckaers was only eighteen years old when he started his first company.
386
Today, over ten years later, he has founded and managed several new technology companies,
387
all based on Free / Open Source software.
389
He originated Tiny ERP, now Open ERP, and is the director of two companies including Tiny sprl,
390
the editor of Open ERP. In three years he has grown the Tiny group from one to sixty-five
392
without loans or external fund-raising, and while making a profit.
394
He has also developed several large scale projects, such as Auction-in-Europe.com,
395
which become the leader in the art market in Belgium.
396
Even today people sell more art works there than on ebay.be.
398
He is also the founder of the LUG (Linux User Group) of Louvain-la-Neuve,
399
and of several free projects like OpenReport, OpenStuff and Tiny Report.
400
Educated as a civil engineer (polytechnic), he has won several IT prizes in Europe such as Wired
403
A fierce defender of free software in the enterprise,
404
he is in constant demand as a conference speaker and
405
he is the author of numerous articles dealing with free software in the management of the
410
Geoff has held posts as director of services and of IT systems for
411
international companies and in manufacturing.
412
He was Senior Industrial Research Fellow at Cambridge University's Institute for Manufacturing
413
where he focused on innovation processes.
415
He founded Seath Solutions Ltd (http://www.seathsolutions.com/) to provide services
416
in the use of Open Source software, particularly Open ERP, for business management.
418
Author of articles and books focusing on the processes and technology of innovation,
419
Geoff is also an active contributor to the Open ERP project.
420
He holds an MBA from Cranfield School of Management and
421
an MA in Engineering and Electrical Sciences from Trinity Hall, Cambridge.
422
He is a member of the Institution of Engineering and Technology and of the Society of Authors.
424
Having observed, suffered, and led process implementation projects in various organizations,
425
he has many thoughts to share on the successful adoption of an effective management automation
434
.. i18n: *From Geoff Gardiner*
436
*From Geoff Gardiner*
438
.. i18n: My gratitude goes to my co-author, Fabien Pinckaers, for his vision and tenacity in
439
.. i18n: developing Tiny ERP and Open ERP, and the team at Tiny for its excellent work on this.
441
My gratitude goes to my co-author, Fabien Pinckaers, for his vision and tenacity in
442
developing Tiny ERP and Open ERP, and the team at Tiny for its excellent work on this.
444
.. i18n: Open ERP relies on a philosophy of Open Source and on the technologies that have been
445
.. i18n: developed and tuned over the years by numerous talented people. Their efforts are greatly
446
.. i18n: appreciated.
448
Open ERP relies on a philosophy of Open Source and on the technologies that have been
449
developed and tuned over the years by numerous talented people. Their efforts are greatly
452
.. i18n: Thanks also to my family for their encouragement, their tolerance and their constant presence.
454
Thanks also to my family for their encouragement, their tolerance and their constant presence.
456
.. i18n: *From Fabien Pinckaers*
458
*From Fabien Pinckaers*
460
.. i18n: I address my thanks to all of the team at Tiny for their hard work in preparing, translating and
461
.. i18n: re-reading the book in its various forms.
462
.. i18n: My particular thanks to Laurence Henrion and my family for supporting me throughout all this effort.
464
I address my thanks to all of the team at Tiny for their hard work in preparing, translating and
465
re-reading the book in its various forms.
466
My particular thanks to Laurence Henrion and my family for supporting me throughout all this effort.
468
.. i18n: .. Copyright © Open Object Press. All rights reserved.
470
.. Copyright © Open Object Press. All rights reserved.
472
.. i18n: .. You may take electronic copy of this publication and distribute it if you don't
473
.. i18n: .. change the content. You can also print a copy to be read by yourself only.
475
.. You may take electronic copy of this publication and distribute it if you don't
476
.. change the content. You can also print a copy to be read by yourself only.
478
.. i18n: .. We have contracts with different publishers in different countries to sell and
479
.. i18n: .. distribute paper or electronic based versions of this book (translated or not)
480
.. i18n: .. in bookstores. This helps to distribute and promote the Open ERP product. It
481
.. i18n: .. also helps us to create incentives to pay contributors and authors using author
482
.. i18n: .. rights of these sales.
484
.. We have contracts with different publishers in different countries to sell and
485
.. distribute paper or electronic based versions of this book (translated or not)
486
.. in bookstores. This helps to distribute and promote the Open ERP product. It
487
.. also helps us to create incentives to pay contributors and authors using author
488
.. rights of these sales.
490
.. i18n: .. Due to this, grants to translate, modify or sell this book are strictly
491
.. i18n: .. forbidden, unless Tiny SPRL (representing Open Object Press) gives you a
492
.. i18n: .. written authorisation for this.
494
.. Due to this, grants to translate, modify or sell this book are strictly
495
.. forbidden, unless Tiny SPRL (representing Open Object Press) gives you a
496
.. written authorisation for this.
498
.. i18n: .. Many of the designations used by manufacturers and suppliers to distinguish their
499
.. i18n: .. products are claimed as trademarks. Where those designations appear in this book,
500
.. i18n: .. and Open Object Press was aware of a trademark claim, the designations have been
501
.. i18n: .. printed in initial capitals.
503
.. Many of the designations used by manufacturers and suppliers to distinguish their
504
.. products are claimed as trademarks. Where those designations appear in this book,
505
.. and Open Object Press was aware of a trademark claim, the designations have been
506
.. printed in initial capitals.
508
.. i18n: .. While every precaution has been taken in the preparation of this book, the publisher
509
.. i18n: .. and the authors assume no responsibility for errors or omissions, or for damages
510
.. i18n: .. resulting from the use of the information contained herein.
512
.. While every precaution has been taken in the preparation of this book, the publisher
513
.. and the authors assume no responsibility for errors or omissions, or for damages
514
.. resulting from the use of the information contained herein.
516
.. i18n: .. Published by Open Object Press, Grand Rosière, Belgium
518
.. Published by Open Object Press, Grand Rosière, Belgium