A new Instrument for Production Control: The Smart Order Concept

Abstract

Production control is an essential component of a production system used to monitor and manage production orders. Centrally controlled production systems rely on basic data management, such as storing the bill of materials and required work schedules. Components of customer orders are added to generate the corresponding production orders. However, this type of production control can pose serious problems in case of unforeseen events such as machine failure or changing customer requirements during production. In such scenarios, costly and time-consuming re-scheduling becomes necessary, which endangers the company's competitive position and leads to data retention issues. This paper introduces a new method of production control based on the concept of smart orders. Smart orders use smart contracts for autonomous routing based on programmed information in the source code, enabling self-control through the production system. Smart contracts are transaction programs that work with ‘if-then logic”, allowing for partially flexible process schedules and reducing the need for human intervention. The smart order uses the functionalities of blockchain technology, such as security, transparency, and immutability, to ensure the integrity of production data. The paper concludes by presenting the expected value propositions of smart order-based production control on the production system. Depending on the production control system used, companies can integrate the results presented in this paper into their own blockchain implementation strategy.