Rfid Based Roi For Vertically Integrated Manufacturers


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Scenarios that are providing real returns for users of S3Edge's packaged software for asset visibility and control across manufacturing, warehousing, and distribution.

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Rfid Based Roi For Vertically Integrated Manufacturers

  1. 1. Discrete Manufacturing<br />Current: Incorrect parts fitted onto various units at line stations causing invalid units, which in turn cause re-work / scrap and mis-ships.<br />With RFID:Automate component verification by matching tags on line unit and parts that are being put into the unit at assembly time.<br />Value: Component verification during unit assembly leading to reduction in scrap, re-work, repair, downtime of assembly line in addition to reducing customer violations. <br />Current: Label mismatch on cartons leads to units ending up in the wrong cartons at boxing station; Manual (paper) or barcode based scanning of pallets and units at shipping used to create bill of lading & ASN - Results in errors, delays, and ineffective utilization of labor.<br />With RFID:<br /><ul><li> Commission labels with tags and verify this with unit tag to prevent carton mismatch.
  2. 2. Utilize RFID tag on units to automate shipping w/o manual verification with RFID portals at Shipping dock-doors</li></ul>Value: <br /><ul><li>- Eliminates errors that cause shipments of wrong units in wrong cartons
  3. 3. Eliminates error prone manual scanning, and reduces time to ship
  4. 4. Automates creation of ASN</li></ul>Current: Manual / paperbased processes at raw materials receive, and inventory replenishment resulting in inventory loss, production mistakes and delays.<br />With RFID:<br /><ul><li> Install RFID portals at Receive dock-doors / bays
  5. 5. Tag re-usable inventory carts
  6. 6. Use RFID tags on totes to signal replenishment when they are empty.</li></ul>Value: <br /><ul><li> Automated Receive eliminates manual scans of individual units, increasing labor utilization
  7. 7. Inventory visibility reduces waste, prevents errors (no more incorrect parts being delivered to assembly lines) and tracks materials movement and utilization.
  8. 8. RFID tags on material bins allows for immediate materials replenishment with mobile readers.</li></ul>Raw material Receive, Materials Production<br />Production <br />(Assembly Lines)<br />Pack-out & Ship<br />ROI in terms of $ impact:<br /><ul><li> Real-time inventory management reduces excess , eliminates waste, prevents shortage.
  9. 9. Mistake proofing of assembly line prevents production downtime and costs incurred due to scrap, unit re-work and mis-ships to customers.
  10. 10. Automated Ship / Receive increases labor productivity (eliminates non-value added activities).</li></li></ul><li>Warehouse Operations<br />Current: Manual or bar-code based Receive involves scanning dock door barcode (to identify ASN), pallets or items from truck, and location which results in a LOT of time to unload an entire truck, while potentially introducing errors into the process.<br />With RFID:<br /><ul><li> Utilize tags on units and / or pallets to automate Receiving.
  11. 11. Auto identify dock door and storage bay with location tags.</li></ul>Value: <br /><ul><li> Automated Receiving reduces time to unload a truck (~ 50%), increasing labor productivity and utilization
  12. 12. Location tags prevent ‘lost’ or incorrect inventory movement</li></ul>Current: Fork-lift operator goes to staging bay to pick up pallets and Put-Away in [aisle, bin] . Cycle counts are done manually (paper based) or with a combination of barcode scans & human input. Both of the above are error-prone and time consuming.<br />With RFID:<br /><ul><li> Utilize bin and floor tags to auto Put-Away
  13. 13. Use a combination of unit / pallet tags + location tags to automate cycle counts and inventory mgmt.</li></ul>Value: <br /><ul><li>RFID tags on bin and floor remove eliminate errors i.e. wrong Put-Away of items as a result of original bin location - identified by WMS - being full.
  14. 14. Item level visibility at all times reduces lost or misplaced inventory and exceptions due to incorrect inventory movements.
  15. 15. Cycle counts are reduced manifold by automating Stock-Take.</li></ul>Current: Fork-lift operator directed to [aisle, bin] locationn to pick up pallets (inventory) and load onto trailer – when pallets are not found, time is spent trying to locate it. Shipping is manual and error prone process.<br />With RFID:<br /><ul><li> Utilize unit / pallet , bin and floor tags to manage and locate items.
  16. 16. Use RFID portals to automate Shipping.</li></ul>Value: <br /><ul><li> No more ‘easter-egg’ hunt
  17. 17. Eliminates non-value and error prone manual scanning prior to shipping, and reduces time to load at each dock</li></ul>Put-Away & Stock-Take (cycle counting)<br />Receiving & Staging<br />Pick, Pack, & Ship<br />ROI in terms of $ impact:<br /><ul><li> Automation of Shipping / Receiving results in time savings from elimination of scanning units one by one, which in turn results in faster throughput of units to end customer.
  18. 18. Elimination of cascading errors during inventory storage and retrieval for order fill.
  19. 19. Reduced returns and charge-backs due to shipping of incorrect inventory.
  20. 20. Eliminates time, error, and costs incurred due to manual Stock-Take</li>