RFID in Manufacturing - RFID Technology for the Manufacturing Industry

RFID in Manufacturing

RFID in manufacturing environments has improved many tracking applications including work-in-process, tools, parts bins, returnable transport containers, finished goods inventory, and much more.

Manufacturers today need to be efficient as possible.  Globalization, increased competition and other economic pressures make it critically important for companies within the manufacturing industry to reduce labor costs, increase asset utilization and reduce material costs.  At the same time the customers' needs are expanding with demands for faster delivery, customized products, and better customer service.  In manufacturing environments, RFID applications will address those challenges. 

RFID Technology uses communication via radio waves to exchange data between a reader and an electronic tag attached to an object, for the purpose of identification and tracking. RFID technology also allows for Bulk Reading which is the reading of multiple tags at one time. For example, a pallet load of 100 different items each with a RFID Track and Trace tag can be identified at once with out having to break the pallet down.

When RFID is used in manufacturing environments, companies can ultimately reduce operating costs, labor costs, minimize claims and returns, and thus increase operating profits. The right solution for RFID in manufacturing applications requires a detailed and well planned strategy. Companies need to have a good understanding of the capabilities of RFID technology in order to plan an implement a cost effective and valuable solution.

Benefits of RFID in Manufacturing

• Improve Efficiency - No line-of-sight is required for RFID technology.  RFID Technology will eliminate the need to remove labeled items from cases, pallets, cartons, etc. and thus provide significant productivity improvements and cost savings.
• Durability - RFID technology tags and hardware can withstand harsh environments.  RFID tags will last for years longer than traditional bar code labels, and hardware is built with great ruggedness.  RFID technology will provide a long lasting solution.
  
• Flexible - There is a long-read ranged associated with RFID tags, and RFID tags can store much more information than a 2D barcode and are re-writeable. RFID technology is more flexible that bar code data collection solutions.
  
• Reduce Costs - RFID in manufacturing will bring many operational enhancements in efficiency and will help to reduce stock levels and operations costs.  RFID technology may be a significant cost up front but numerous companies have seen a positive ROI and are grateful for the implementation.
  
• Real-Time Tracking  - With RFID Technology people, items, and equipment, and manufacturing procedures can be tracked in real time and improve demand forecasting.  Companies with better demand forecast accuracy also have less inventory (~15%), better perfect order ratings (~17%), and shorter cash-to-cash cycle times (~35%) then competitors.  RFID technology will provide real-time tracking and improve the speed and accuracy of tracking applications.
  
• Continual ROI - RFID technology may be more expensive than bar code technology, however, there have been tremendous strides in the technology making it more affordable.  The benefits of improved operations from RFID technology provide a fast ROI averaging 1-2 years and have saved many manufacturing companies in the U.S. thousands and even millions of dollars.
  
  

RFID in Manufacturing Case Study Provided by Zebra Technologies

This 4 minute video provided by our partners at Zebra technologies provides a detailed case study for RFID in manufacturing.  The video features employees from Campbell Hausefeld Manufacturing facilities talking about the reasons for choosing RFID technology and the benefits they have seen.  

The United States Manufacturing Industry

In an article posted online on June 13th, 2011, "NAM and the State of the Manufacturing Industry 2011" the president and CEO of the National Association of Manufacturers (NAM) Jay Timmons is quoted:

"(U.S) Manufacturing continues to drive the economic recovery.... The U.S. continues to be the world's largest manufacturing economy. The manufacturing industry in the U.S. has increased employment and productivity over the last 12-18 months, adding more than 250,000 jobs since the beginning of 2010." he goes on to attribute the recent increase in manufacturing to "innovations that have increased productivity" among other factors. 

NAM's mission is to be the voice of all U.S. manufacturing and spread the word about manufacturing's "vital leadership in innovation, job opportunity, technological progress and economic security."

On the internet there is much debate by economist over the various measures for manufacturing output.  There have been many blogs and online discussion about the U.S. manufacturing industry.  Here are some links we have found intersting.

Other RFID Industry Solution Pages by BCI:

RFID Healthcare

RFID Warehousing

RFID Library and Education

View the documents below to learn more about the value RFID in Manufacturing