diff --git a/addons/mrp/mrp.py b/addons/mrp/mrp.py
index 04a08126561..0fd75d7ca7a 100644
--- a/addons/mrp/mrp.py
+++ b/addons/mrp/mrp.py
@@ -706,42 +706,49 @@ class mrp_production(osv.osv):
         production = self.browse(cr, uid, production_id, context=context)
 
         produced_qty = 0
-        if production_mode == 'consume_produce':
-            produced_qty = production_qty
-
         for produced_product in production.move_created_ids2:
-            if (produced_product.scrapped) or (produced_product.product_id.id<>production.product_id.id):
+            if (produced_product.scrapped) or (produced_product.product_id.id <> production.product_id.id):
                 continue
             produced_qty += produced_product.product_qty
 
         if production_mode in ['consume','consume_produce']:
-            consumed_products = {}
-            check = {}
-            scrapped = map(lambda x:x.scrapped,production.move_lines2).count(True)
+            consumed_data = {}
 
-            for consumed_product in production.move_lines2:
-                consumed = consumed_product.product_qty
-                if consumed_product.scrapped:
+            # Calculate already consumed qtys
+            for consumed in production.move_lines2:
+                if consumed.scrapped:
                     continue
-                if not consumed_products.get(consumed_product.product_id.id, False):
-                    consumed_products[consumed_product.product_id.id] = consumed_product.product_qty
-                    check[consumed_product.product_id.id] = 0
-                for f in production.product_lines:
-                    if f.product_id.id == consumed_product.product_id.id:
-                        if (len(production.move_lines2) - scrapped) > len(production.product_lines):
-                            check[consumed_product.product_id.id] += consumed_product.product_qty
-                            consumed = check[consumed_product.product_id.id]
-                        rest_consumed = produced_qty * f.product_qty / production.product_qty - consumed
-                        consumed_products[consumed_product.product_id.id] = rest_consumed
+                if not consumed_data.get(consumed.product_id.id, False):
+                    consumed_data[consumed.product_id.id] = 0
+                consumed_data[consumed.product_id.id] += consumed.product_qty
 
-            for raw_product in production.move_lines:
-                for f in production.product_lines:
-                    if f.product_id.id == raw_product.product_id.id:
-                        consumed_qty = consumed_products.get(raw_product.product_id.id, 0)
-                        if consumed_qty == 0:
-                            consumed_qty = production_qty * f.product_qty / production.product_qty
-                        if consumed_qty > 0:
-                            stock_mov_obj.action_consume(cr, uid, [raw_product.id], consumed_qty, raw_product.location_id.id, context=context)
+            # Find product qty to be consumed and consume it
+            for scheduled in production.product_lines:
+
+                # total qty of consumed product we need after this consumption
+                total_consume = ((production_qty + produced_qty) * scheduled.product_qty / production.product_qty)
+
+                # qty available for consume and produce
+                qty_avail = scheduled.product_qty - consumed_data.get(scheduled.product_id.id, 0.0)
+
+                if qty_avail <= 0.0:
+                    # there will be nothing to consume for this raw material
+                    continue
+
+                raw_product = [move for move in production.move_lines if move.product_id.id==scheduled.product_id.id]
+                if raw_product:
+                    # qtys we have to consume
+                    qty = total_consume - consumed_data.get(scheduled.product_id.id, 0.0)
+
+                    if qty > qty_avail:
+                        # if qtys we have to consume is more than qtys available to consume
+                        prod_name = scheduled.product_id.name_get()[0][1]
+                        raise osv.except_osv(_('Warning!'), _('You are going to consume total %s quantities of "%s".\nBut you can consume upto total %s quantities.' % (qty, prod_name, qty_avail)))
+                    if qty < 0.0:
+                        # we already have more qtys consumed than we need 
+                        continue
+
+                    raw_product[0].action_consume(qty, raw_product[0].location_id.id, context=context)
 
         if production_mode == 'consume_produce':
             # To produce remaining qty of final product
@@ -761,8 +768,10 @@ class mrp_production(osv.osv):
                 produced_qty = produced_products.get(produce_product.product_id.id, 0)
                 subproduct_factor = self._get_subproduct_factor(cr, uid, production.id, produce_product.id, context=context)
                 rest_qty = (subproduct_factor * production.product_qty) - produced_qty
-                if rest_qty <= production_qty:
-                    production_qty = rest_qty
+
+                if rest_qty < production_qty:
+                    prod_name = produce_product.product_id.name_get()[0][1]
+                    raise osv.except_osv(_('Warning!'), _('You are going to produce total %s quantities of "%s".\nBut you can produce upto total %s quantities.' % (production_qty, prod_name, rest_qty)))
                 if rest_qty > 0 :
                     stock_mov_obj.action_consume(cr, uid, [produce_product.id], (subproduct_factor * production_qty), context=context)
 
diff --git a/addons/mrp/test/mrp_procurement.yml b/addons/mrp/test/mrp_procurement.yml
index 4aaf1560432..f5bcf4f767a 100644
--- a/addons/mrp/test/mrp_procurement.yml
+++ b/addons/mrp/test/mrp_procurement.yml
@@ -243,7 +243,7 @@
   I create record for producing products with quantity 5.00.
 -
   !record {model: mrp.product.produce, id: mrp_product_produce0}:
-    product_qty: 5.00
+    product_qty: 2.00
     mode: 'consume_produce'
 -
   I produce 2 products with 5.00 quantities each.
diff --git a/addons/mrp/test/mrp_production_order.yml b/addons/mrp/test/mrp_production_order.yml
index c765809af1e..57d75e1c1a5 100644
--- a/addons/mrp/test/mrp_production_order.yml
+++ b/addons/mrp/test/mrp_production_order.yml
@@ -76,10 +76,10 @@
     for order in order_ids:
         wf_service.trg_validate(uid, 'mrp.production', order, 'button_produce', cr)
 -
-  I create record for producing products with quantity 6.00.
+  I create record for producing products with quantity 1.00.
 -
   !record {model: mrp.product.produce, id: mrp_product_produce0}:
-    product_qty: 6.00
+    product_qty: 1.00
     mode: 'consume_produce'
 -
   I produce the product.
diff --git a/addons/purchase/purchase_demo.xml b/addons/purchase/purchase_demo.xml
index 6aa98f8cf6c..a8b02c3ebd1 100644
--- a/addons/purchase/purchase_demo.xml
+++ b/addons/purchase/purchase_demo.xml
@@ -56,7 +56,7 @@
             <field name="date_planned" eval="time.strftime('%Y/%m/%d')"/>
             <field name="name">New server config + material</field>
             <field model="product.product" name="product_id" search="[]"/>
-            <field model="product.uom" name="product_uom" search="[]"/>
+            <field name="product_uom" ref="product.product_uom_unit"/>
             <field name="price_unit">150</field>
             <field name="product_qty">5</field>
         </record>