By Tony Repaci
Radio frequency identification (RFID) has always been considered a forward-looking technology. Today, most of the focus is on how emerging electronic product code (EPC) RFID tags can help connect trading partners and align supply chains. However, what should not be overlooked are the unique benefits that RFID technology can provide to Australian and New Zealand warehousing operations and manufacturers who are looking to increase product visibility and traceability through the manufacturing process and beyond.
 In manufacturing and warehouse environments, RFID is commonly used to automatically route materials, identify containers and track equipment. Generally, RFID provides the highest value in situations when traceability through a process or item life cycle is required, where labour costs or data errors related to identification and handling are high, and when there are time or labour constraints related to item identification, handling or replenishment. Additionally, RFID technology is suited for use in manufacturing and warehouse environments any time business processes or software applications need more information about an object than bar codes or other forms of automated data capture technology can provide.
Real benefits
RFID technology’s ability to track and trace parts through the supply chain offers real benefits to Australian and New Zealand manufacturers that (along with distributors) must trace the genealogy of their products or provide lifetime identification. In the aviation industry, for example, if positive identification and lifetime service records (including data on the manufacturer and production process) aren’t available for a part, it can’t fly. Misidentification and record-keeping errors could potentially cost airlines millions of dollars in unnecessary replacement costs.
It is worthwhile to consider how traceability applications could be enhanced with RFID by the ability to update item information throughout its life. Read-write RFID tags can permanently and securely store an item ID number and reserve additional memory for data that can be written and updated later. Maintenance, asset management and warranty applications could benefit from this capability if item tags were regularly updated with inspection dates, service codes, or even data from sensor readings. These applications go beyond the basic requirement of providing tracking and identification, and can provide true value and cost savings to the enterprise.
Reverse logistics
Having accurate product genealogy data can provide a big boost to service, returns and recall operations. Companies can detect and prevent ineligible service claims with an RFID system that enables them to uniquely identify otherwise lookalike parts. The ID information can also verify that items being returned for credit rightfully belong to the registered user. Linking individual part numbers with customers also enables companies to conduct narrow, targeted recalls should the need arise. The data can also limit liability exposure and provide valuable service and maintenance evidence if product performance is ever in dispute.
The sooner that RFID is applied to products and components in manufacturing and warehousing environments, the more benefits it can provide. Tags for genealogy and lifetime traceability can serve double duty as enablers of efficient production tracking, routing and materials management applications. Manufacturing operations that require sequencing or build-to-order production rely on item-level identification to ensure the right components are added to assemblies. RFID provides a way to quickly verify identities, and can be integrated with materials handling and production control systems to route items to the appropriate assembly, testing, packaging or storage locations.
Just in time, just in sequence
In the automotive industry, where just-in-time, just-in-sequence delivery requirements are common, automakers and their suppliers routinely use RFID to identify sub-assemblies to ensure they are installed in the correct chassis. One original equipment manufacturer (OEM) applies RFID tags to racks that carry engines to their installation location. Each engine has a bar code serial number, which is scanned to associate the specific engine with the rack that is carrying it in a database. The database verifies that all engines on the rack have the same configuration, to prevent the possibility of the wrong type of engine being installed in a chassis. Forklift-mounted RFID readers confirm to operators that they are picking the right rack. The racks are read again prior to the engines being unloaded. All RFID and bar code scan data is communicated to the database application in real time over a wireless LAN that covers the facility. By preventing sequence loading and installation errors, the company avoids the high cost of product rework.
RFID’s ability to track and trace products, parts and equipment in the warehousing and manufacturing environments can have a positive impact on a business’s bottom line. Given all the capital manufacturers and warehousing operations have tied up in raw materials and finished goods inventory, plus the capital equipment, storage space and labour needed to process it, seemingly modest or incremental improvements to how goods are managed, processed and importantly accounted for can unlock a significant amount of money for your business.
Tony Repaci is the managing director, Australia and New Zealand, of Intermec, a global company that develops, manufactures and integrates technologies that identify, track and manage supply chain assets. For further information, visit www.intermec.com.au
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