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Procedia Manufacturing 55 (2021) 110–115

30th International Conference on Flexible Automation and Intelligent Manufacturing (FAIM2021)

30th International Conference on Flexible Automation and Intelligent Manufacturing (FAIM2021)
15-18 June 2021, Athens, Greece.
15-18 June 2021, Athens, Greece.
QR
QR code-based material flow
code-based material flow monitoring
monitoring in
in aa subcontractor
subcontractor manufacturer
manufacturer
network
network
Jaakko Peltokorpi*, Lauri Isojärvi, Kai Häkkinen, Esko Niemi
Jaakko Peltokorpi*, Lauri Isojärvi, Kai Häkkinen, Esko Niemi
Aalto University, Puumiehenkuja 3, 02150, Espoo, Finland
Aalto University, Puumiehenkuja 3, 02150, Espoo, Finland
* Corresponding author. Tel.: +358-50-566-2382. E-mail address: [email protected]
* Corresponding author. Tel.: +358-50-566-2382. E-mail address: [email protected]

Abstract
Abstract
Principal manufacturers suffer from uncertainty as they lack up-to-date information on their orders in supply chains (SCs). The
Principal
current eramanufacturers suffer
of digitalization from
offers uncertainty
many solutionsastothey lackorder
monitor up-to-date information
statuses on their orders
through integrated in supply
information chains
systems. (SCs). The
However, the
current era of digitalization offers many solutions to monitor order statuses through integrated information systems.
requirements to implement such systems are high for the companies and they still prefer personal interactions with suppliers. This However, the
requirements
paper proposes to aimplement such systems
QR code-based are high for
order monitoring the companies
system and they manufacturer
in a subcontractor still prefer personal interactions
network. with suppliers.
The objective This
of the study is
paper proposes a QR code-based order monitoring system in a subcontractor manufacturer network. The objective
to assess the technological and operative maturity of the system in real SCs. A prototype system was built and demonstrated to of the study is
to assess the technological
representatives from Finnishand operativeinmaturity
companies a virtualofworkshop.
the systemThein real SCs. Astudy
feasibility prototype
showedsystem wasQR
that the built and demonstrated
code-based to
monitoring
representatives
system is practicalfrom
andFinnish companies
promising. in a virtual
The companies, workshop.
however, The feasibility
recognize study showed that
that its implementation wouldthebeQR code-based
challenging monitoring
from both the
system is practical
technical integrationandand
promising. The companies,
subcontractor adaptationhowever,
points ofrecognize
view. The thatresults
its implementation
obtained givewould be challenging
insights into modernfrom both the
information
technical
management integration
in SCs and andsuggest
subcontractor
areas ofadaptation
interest forpoints
furtherofstudies.
view. The results obtained give insights into modern information
management in SCs and suggest areas of interest for further studies.
© 2020 The Authors. Published by Elsevier Ltd.
© 2020
© 2021The TheAuthors.
Authors. Published by Elsevier
Ltd. Ltd. license https://creativecommons.org/licenses/by-nc-nd/4.0/)
This is an open accessPublished by Elsevier
article under the CC BY-NC-ND
This isan
This anopen
openaccess
access article under theBY-NC-ND
CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
Peer is
review article under
under responsibility the scientific
of the CC license
committee https://creativecommons.org/licenses/by-nc-nd/4.0/)
of the FAIM 2020.
Peer-review
Peer underresponsibility
review under responsibility
of of
thethe scientific
scientific committee
committee ofFAIM
of the the FAIM2020.2021.
Keywords: supply chain; subcontractor manufacturer; monitoring; QR code; feasibility study
Keywords: supply chain; subcontractor manufacturer; monitoring; QR code; feasibility study

1. Introduction managed better. In the current era of digitalization, supply chain

1. Introduction managed
(SC) better. In
monitoring the current
could era of take
increasingly digitalization, supply
place through chain
internet-
Production management in a subcontractor network is (SC) monitoring
based information could increasingly
technology (IT) take place[2].
systems through
Eveninternet-
though
Productionespecially
problematic, management in thein project-oriented
a subcontractorbusiness.
networkForis based information
companies’ technology
key concern is a (IT)
lack systems [2]. Even
of visibility though
in their SC
problematic, especially in the project-oriented
example, one Finnish company (turnover 100 MEUR) has business. For companies’ key concern is a lack of visibility in
network, they do not see the immediate benefits of such systems their SC
example, one Finnish
80,000 purchase company
order lines (turnover
per year, 1005000
of which MEUR) has
are open network,
[1]. they dotonotimplement
The efforts see the immediate benefits
the systems oforganizations
fail if such systems
80,000 purchase order lines per year, of which 5000
all the time at hundreds of suppliers. Controlling such a huge are open [1]. Theexchange
cannot efforts totheimplement the systems
most crucial fail ifdata
and accurate organizations
necessary
all the time
number of atopen
hundredsorderof suppliers.
lines is Controlling
practically such a huge
impossible. for suppliers and customers [1]. Data exchanged innecessary
cannot exchange the most crucial and accurate data SCs are
number of open order lines is practically impossible.
Traditionally, a contract is made with suppliers or subcontractor for suppliers
typically and customers
related to ordering,[1]. Data exchanged
production, in SCs and
transport, are
Traditionally, ato
manufacturers contract
assureisgood
madedelivery
with suppliers or subcontractor
performance. A lot of typically related
warehouses [3]. For to principal
ordering,companies,
production,perhaps
transport,
the mostand
manual work is required to get information about the Astatuses
manufacturers to assure good delivery performance. lot of warehouses[4][3].
important but For
leastprincipal
accurate companies,
data are the perhaps
statuses oftheorders
most
manual work is required to get information about the
of orders, as companies still prefer personal interactions with statuses important [4] but least accurate data are the statuses
in suppliers' production. The implementation of IT-based of orders
of orders, as[1].
suppliers companies still prefer
Nevertheless, a personal interactions
subcontractor with
network in suppliers' inproduction.
traceability SCs should The consider
implementation
all theof necessary
IT-based
suppliers [1]. Nevertheless, a subcontractor
continually faces different kinds of problems, resulting in less network traceability in SCs should consider all
requirements [5] with appropriate technologies [2,6]. the necessary
continually
than faces different
100% delivery kinds of problems, resulting in less
performance. requirements
This paper[5]develops
with appropriate
a QR technologies
code-based [2,6].
material flow
thanAs100%thedelivery performance.
situation described above is common in This paper
monitoring develops
system a QR code-based
in a subcontractor material
manufacturer flow
network.
As the situation
manufacturing companies,described
one mayabove is common
ask how this can bein monitoring system in a subcontractor manufacturer
The prototype of the system was constructed and demonstrated network.
manufacturing companies, one may ask how this can be The prototype of the system was constructed and demonstrated
2351-9789©©2020
2351-9789 2021
TheThe Authors.
Authors. Published
Published byLtd.
by Elsevier Elsevier Ltd.
2351-9789
Thisisisanan
This ©open
2020
open The
access Authors.
access Published
article
article under under
the by
theElsevier
CC BY-NC-ND Ltd.
CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
license https://creativecommons.org/licenses/by-nc-nd/4.0/)
This is an open
Peer-review
Peer-review access
under
under article under
responsibility
responsibility the scientific
of the CC BY-NC-ND
of the license
scientific
committee https://creativecommons.org/licenses/by-nc-nd/4.0/)
committee
of the FAIMof the FAIM 2021.
2020.
Peer-review under responsibility of the scientific committee of the FAIM 2020.
10.1016/j.promfg.2021.10.016
 Jaakko Peltokorpi et al. / Procedia Manufacturing 55 (2021) 110–115 111
2 Author name / Procedia Manufacturing 00 (2019) 000–000

to representatives from Finnish manufacturing companies. The specific identification precision category in Fig. 1. The
feasibility of the QR code-based system was evaluated through implementation of traceability in SCs requires the following
a virtual workshop and a questionnaire. The ultimate purpose requirements to be fulfilled [5]:
of the study is to assess the technological and operative maturity • every object involved needs to be identified precisely to
of such system in real SCs and gain insights into areas of accomplish recognition of the products and components
interest for future research. used;
The remainder of this paper is organized as follows. Section • related data (information) must be collected, associated with
2 introduces the theory on traceability and reviews the the objects, and archived in order for data to be accessed at
requirements, potential technologies, and existing literature on any time;
order monitoring in production and SCs. Section 3 presents the • data related to the same object need to be linked to identify
prototype and feasibility study of the QR code-based material coherences between several process steps;
flow monitoring system. Section 4 provides managerial • the whole SC needs to be integrated to avoid redundant data
implications. Section 5 draws conclusions and suggests some storage and inconsistencies.
areas of interest for further study.
2.1. Identification technologies
2. Requirements and technologies for order monitoring in
production and SCs Product/component identification in a production workshop
can be enhanced by advanced technologies [6]. Table 1 assesses
The ability to verify events, or traceability, was integrated the suitability of such technologies in this study.
into the ISO 9000 quality standards about three decades ago and
received increasing attention as a manufacturing risk Table 1. Suitability (*** is the best) of the different identification
technologies for the present study.
management tool [7]. Especially in logistics, traceability is a
commonly used term that integrates both tracking (monitoring) Technology Suitability Why not suitable?
the status and tracing (acquiring improved transparency of) the Optical character
previous steps of orders in the SC [5]. It is predominant in the * Text format conversion only
reader [5]
food and agriculture industry because of regulations but is
Barcode [10] ** Little data, slow transmission
becoming more popular in other industries, alongside the
adaptation of modern Industry 4.0 practices [8]. Traceability Quick Response ***
across the entire SC combines both internal and external (QR) code
Not for challenging process
traceability [8]. Internal refers to keeping records of a product Magnetic strip, *
Chip card [5] conditions
(or order) within a single production process and external refers
to the movement of a product between multiple traceability Radio Frequency
***
Identification (RFID)
partners or companies. The Global Standards One (GS1)
traceability standard [9] defines the level of traceability on the Bluetooth, Wi-Fi [10] * The effective range is too small
basis of identification precision and logistical hierarchy (Fig. 1)
[8]. QR codes and RFID are popularly applied in production
workshops as their electronic components are adequately
protected inside, and they have corresponding accessories [10].
The RFID is often more cost-efficient in labor-intensive
manufacturing as its reading form is one-to-many, whereas a
QR code is read one-to-one [10]. RFID requires specific readers
(smartphones do not have enough power to generate the strong
electromagnetic field RFID requires) and factory-level
middleware to which the readers are connected. This
middleware is further connected to a cloud server through
which the communication is transmitted and where the data are
stored. The cost of RFID favors the selection of the cheaper QR
codes, by means of which reading can be done using free
software and labels are changeable and easily printed at a low
cost [11].
Fig. 1. Traceability levels based on identification precision and logistical
Given the importance of the visibility and monitoring of
hierarchy [8].
SCs, relatively few studies report monitoring systems and even
This study focuses on material flow monitoring in a make- fewer in the context of SCs involving manufacturing
to-order (MTO) and engineering-to-order (ETO) subcontractor subcontractors. Guo et al. [12] constructed an RFID-based
system to access real-time sales information at retailers. Ergen
manufacturer network. The products are not standardized but
et al. [13] examined the impacts of RFID in the current SC of
are either configured from the catalog, customer-tailored, or
prefabricated concrete panels. The results from their simulation
engineered and manufactured on the basis of specifications
study showed that the total cost benefit of the panel
from the principal company. Thus, they fall into the unique or
manufacturer is about twice as much compared to the benefit of
112 Jaakko Peltokorpi et al. / Procedia Manufacturing 55 (2021) 110–115
Author name / Procedia Manufacturing 00 (2019) 000–000 3

the contractor. The benefits were related to decreases in task

durations, in the number of incorrectly shipped or identified
items, and in the number of missing panels and reduction of
reproduction costs. The study did not consider the benefits
arising from monitoring the order status.

2.2. QR code-based monitoring systems

The simple technology and advantages of QR codes

attracted monitoring applications in several industries and areas
(Table 2). Tavares et al. [14] proposed an architecture for QR
code-based SC management, which is also adopted in the
system developed in the next section of this study. Kim and
Moon [15] developed a QR code-based management system for
MTO production. The system enables workers to monitor
production information and progress in real time, thus replacing Fig. 2. Order information management in a subcontractor network.
the old methods of Excel records and weekly meetings.
Okumura et al. [16] showed that the implementation of QR
codes in a Kanban production system significantly improved
customer service performance. Other systems provide
consumer-accessible product information in SC to support their
purchase decision [17,18]. An example of the highest level of
traceability, product consumption monitoring at the end user, is
the QR code-based monitoring of the medicine intake of
patients [19].

Table 2. Previous studies with QR code-based monitoring systems

PROTOTYPE VERSION
Reference Industry/area Application
Tavares et al. [14] Not specified SC management Fig. 3. Technological structure of the QR code-based monitoring system.
Kim & Moon [15] Manufacturing Process status monitoring
Okumura et al. [16] Manufacturing Performance improvement
Tarjan et al. [17] Food Product SC tracing
Peng et al. [18] Food Product SC tracing
Navin et al. [19] Healthcare Medicine intake monitoring 1.3
Ćopić et al. [20] Textile Human error prevention
Agrawal et al. [21] Textile Secure traceability of SC
Qing [22] Power supply Defect management

3. QR code-based order monitoring system in a 2.1 2.4

1.2
subcontractor manufacturer network
1.1 2.7 2.10
This section proposes a QR code-based system for order
monitoring in a vertical subcontractor manufacturer network.
2.1.
.
Subcontractors deliver MTO and ETO parts and subassemblies
for final assembly at the principal company. Fig. 2 illustrates
order information management in the network. Each customer
project involves purchasing orders which define the suppliers Fig. 4. System prototype (system description (1.1-1.3) and operation (2.1-2.11)
of specific customer orders. The customer order may comprise video steps are described later in this section).
several purchasing order rows, each of them for one type of
item. An order row further defines the factory of a specific the table in this study (Fig. 4). The prototype consists of the
item/product and planned delivery time. One order row may following technical specifications:
comprise multiple production orders, each of them with a • two Lego bricks representing two orders (rows) with QR
predetermined delivery time and number of items. labels (36 x 42 mm) printed with a Seiko SLP 650;
• QR code, including project name (8 char.), principal
3.1. System prototype and demo video company name (8), subcontractor name (8), delivery date
(dd.mm.yy), part name (8), order no. (8), and order row no.
Fig. 3 illustrates the technological structure of the system. (8). Each order row in QR code format contains a short one-
The blue dotted line area indicates the prototype built on top of or two-letter-long label and a string value separated by a
 Jaakko Peltokorpi et al. / Procedia Manufacturing 55 (2021) 110–115 113
4 Author name / Procedia Manufacturing 00 (2019) 000–000

colon. Each label corresponds to a field of information in the 3.2. Virtual workshop and feasibility study
data model of order or order row;
• Django, a phyton-based, free, and open-source server, that A one-hour virtual workshop in Microsoft Teams was
uses Django’s models and handles HTTPS requests for arranged to discuss and evaluate the feasibility of the QR code-
storing and updating required information about products, based order monitoring system. Representatives from four
orders, and events. Each model typically maps to a single large companies participated in the workshop. The companies
(SQL) database table. A separate database system (MySQL, manufacture different products in Finland: forest machinery,
PostgreSQL, etc.) is also possible; pumps, wiring accessories, and marine equipment. The
• a webpage on Django containing information about the participants first watched the demo video to get ideas about the
order rows associated with the QR codes and previous system and to present their views on the feasibility (pros and
events registered to them. User registration/authentication in cons, etc.) of the system in their subcontractor network. This
Django’s system is required upon opening the webpage. was followed by general discussion on further research ideas
From this webpage users/operators can also register new and needs.
events for the order row. These new events also appear in After the workshop, the participants evaluated the
the monitoring pages, allowing the customer to see every technological and operational feasibility of the proposed
event registered to the whole order, as well as the current system if it were extended and applied as a material flow
status of each separate order row; monitoring system in their company and subcontractor
• a smartphone an operator uses to retrieve information and to network. Five participants answered the nine statements (on a
register events. The Django server provides a simple camera Likert scale of 1-5) with the results presented in Appendix A.
view of the webpage that automatically parses any QR code According to the results, the companies see that:
detected in the picture. To make it easy, JavaScript and • the QR technology and solution are practical (3.6) and
Instascan (https://github.com/schmich/instascan) with a free mature enough to be easily applied (3.6);
MIT license were used. All the communication occurs • the level of expertise required to realize the technical system
securely via an HTTPS browser; is too high for the companies (2.6);
• a Huawei E3372 laptop with a dongle internet connection • the links to the ERP system are challenging to construct
and a virtual workstation in the university’s systems. (1.8);
• the system enables accurate and real-time reporting (3.6),
The technical specifications presented above show that the quick response (3.2), and other benefits (3.4);
system software architecture was built from available and free • adapting the system to the operations of a subcontractor
solutions. The QR code-based system does not require any network is challenging (2.4);
infrastructure solutions in the factory and supply chain but only • there are alternative monitoring solutions to be found on the
a basic smartphone connected to the internet. This is simpler market (3.4).
and cheaper than an RFID-based system as presented in the
previous section. The companies were interested in following the
A demo video (3:14 min) of the system was recorded using development of the QR code system on the market. It was also
a smartphone. The video presents a description of the system found that there are possibilities of integrating the QR code
(1.1.-1.3.) and its operation (2.1.-2.11) with the following steps monitoring system into the MES.
and subtitles:
4. Managerial implications
QR code-based order monitoring system
The prototype system that was developed has several
1.1. mobile device to register events at shop floor level; applications in managing supply chains. Implementation of the
1.2. QR stickers attached to orders; system in full scale to monitor MTO and ETO parts and
1.3. cloud-based system to monitor order status in real time; subassemblies would provide the following benefits:
• ensures the availability of parts in final assembly well in
2.1. order goes to production at workstation (WS) #1; advance;
2.2. once the job is completed at WS#1, the operator scans the • reduces the overall uncertainty related to materials
QR code, checks the order information, registers an event delivery;
of 20% progression of work, selects the location, and • reduces the need for prior verifications through direct
submits the event; contact by telephone and email;
2.3. order status is updated in real time in the system; • reduces the need for inbound storage;
2.4. order continues to WS#4; • improves the synchronization between the principal
… company’s and subcontractor’s manufacturing operations;
2.7. another order goes to production at WS#3; • reduces the administrative burden on the subcontractor,
… thanks to reduced inquiries from customers;
2.10. order goes to the shipping area and is 100% complete; • enables more accurate tracing of parts and related
2.11. dispatcher scans the QR code and registers an event processes.
indicating that the order is ready for shipment.
114 Jaakko Peltokorpi et al. / Procedia Manufacturing 55 (2021) 110–115
Author name / Procedia Manufacturing 00 (2019) 000–000 5

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Appendix A. Feasibility study results