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Are there any suggestions on how to be able to unreserve single components on manufacturing orders? We have automatic reservation turned on, but we may need to unreserve a single component from an order for a higher priority manufactruing order. Our representative at Odoo has said that would be custom development. It seems like it would be a basic function of the system.

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This is not available to us, consistently. We have only observed it on some Sales orders. 
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in 16.2, the reserve/unreserve works better for multistep operations

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Yes, it is possible to unreserve a single component on MO.

1. From the MO click the forecast icon for the component to open the product (component forecast page)

2. Unreserve the component from the MOs (since reservation is set to automatic) you wish to swap reservation


3. Reserve the component for the higher priority order 

 

Hope this helps

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Is this on V16 or V15? I do not have this option on V16.

This is V16 enterprise, seems it is available in v15 as well. (did a quick check on runbot)

The reservation method selected as ‘at confirmation’ for manufacturing operation

Believe the option does not show up on forecast if the product has already been consumed by the operation. In your example it is likely only the SO has a reservation while the MOs have been completed.
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@Jaideep we have SH, and the components on the BoMs are not consumed until the completion of the manufacturing order, except for a few components. This unreserve option still is not there, except on sales orders

Also is the unreserve still there if Manufacturing is set to 3 steps on the warehouse Configuration?

It seems like the reservation is set to manual and the user isn’t making the reservation from MO. 

You could validate this from setting on manufacturing operation in the inventory app.

The other way to validate could be to click ‘check availability’ button on MO and then click the forecast on the component line to check if unreserve option is available.
@Alex Dolmage, yes the functionality remains unaltered even if multi step manufacturing is enabled. The reservation is set by the inventory operation (pick components) so you would require to click 'check availability' on the pick operations to reserve components. On validation of the picking, availability on MO is updated.