I followed this : https://discuss.frappe.io/t/guide-easy-install-erpnext-on-digitalocean-successfully-tested on Ubuntu 16.04 Virtual Machine with 1GB RAM & 1 vCPU.
Running “python install.py --production” goes on for some time and eventually the Machine becomes unresponsive.
What could be the problem? Should I be using a Larger VM?
Any other reference for installation steps?
Can’t say for sure that your VM is too small, but I do know that I have never been successful when installing on anything less than 2gb ram and 1gb swap space. Even after getting it running with a 2gb ram machine, it will have slow response times for just about everything. For small user groups of 3 to 5 users I always have a 4gb ram and 2cpu system just to have a reasonable response.
It has been a long time since I tried a 2gb machine so even that may be problematic by now.
Just my experience… your mileage may vary 
BKM
I’m running on vultr with 1024MB ram no issues(for 1 user):
$ free -h
total used free shared buff/cache available
Mem: 981Mi 569Mi 98Mi 2.0Mi 313Mi 245Mi
Swap: 4.0Gi 427Mi 3.6Gi
I added some swap, obviously. My install script(for ubuntu 20.04) is here:
https://paste.sr.ht/~zie/c22cd2105c0bf046e253ad52603540aa56494edb
on vultr.com, I just set it as the first boot script, and then run the setup script that it installs by hand after it reboots. I imagine DO is very similar in abilities.
