Due to the increasing cost of operation, manufacturers and contract manufacturers are searching for new ways to reduce costs and optimize their operations. Across the supply chain new technology implementation has been a cost saving solution, and it is no different for manufacturing operations. A lot of this growth can be associated to the adoption of RFID networks throughout the supply chain. These wireless networks are being implemented to act as “intelligent monitoring systems” that provide detailed track and trace functionality from manufacture to end consumer stages of the supply chain. To make RFID a more viable solution for manufacturers, changes have been made to handle their extreme operating environments. New and improved radio frequency tags were designed that can withstand extreme heat and cold, high pressures, hazardous locations and extreme moisture levels. With these improvements also came cost reductions as adoption started to increase on a much larger scale. Functions of RFID in manufacturing: Inventory Traceability – Tagging components, WIP and finished products with RFID tags provides real time visibility into manufacturing operations and provides manufacturing operators with continuous data flow to improve decision making. Equipment Tracking & Monitoring Using RFID –Placing RFID tags on this equipment helps to locate lost or misplaced assets needed for production setup and execution. Production Scheduling – Manufacturers are also using RFID to identify idle equipment. This helps them to increase asset utilization by more effectively scheduling production. Monitor Waste & Shrinkage – Tagging component inventory, WIP and finished goods helps manufacturers to monitor waste levels from production lines and possible sources of internal theft or loss. Reduce Carrying Costs – RFID implementation improves data accuracy, allowing manufacturers to implement JIT inventory management strategies. This helps to reduce inventory carrying costs as items are replenished as needed rather than kept on hand in large quantities. Shipment Routing – RFID tags can carry data related to predetermine shipping routes. As production is completed this data can be used to assist in staging outgoing shipments. This data accessibility expedites the shipping process and reduces required labor. Labor Tracking & Security – Radio frequency identification can also be used to track and manage staff activity. RFID badges can be used for granting access to restricted zones and track employees productivity as they move throughout the facility. Machinery Integration – In some cases manufacturers are using RFID to help control and monitor large machinery activity. In this type of scenario RFID is integrated with machinery control systems. Learn more about uses for RFID in manufacturing by contacting Datex experts today at marketing@datexcorp.com or 800.933.2839 ext 243.

1. USING RFID IN
MANUFACTURING
OPERATIONS
BY: ANGELA CARVER

2. What is RFID?
• RFID is a type of automatic identification technology thattransmits
data in the form of a unique serial number wirelessly.
• The system consists of a RFID tag attached to the inventory item, an
antenna which collects the inventory activity data and the portal
which houses the antenna unit.
• As the tag passes through the designated portal, activity data is
transmitted in real time to inventory management software systems
where data can be viewed and utilized

3. Using RFID in Manufacturing
• Due to the increasing cost of operation, manufacturers and contract
manufacturers are searching for new ways to reduce cost and
optimize operations.
• New technology implementation has been a solution and RFID is
becoming one of the top technologies. Frost & Sullivan reported the
RFID marketplace will increase from $738 mil in 2014 to $5.4 bil in
2020.
• RFID is being implemented in manufacturing worldwide to act as an
intelligent monitoring system that can provide track and trace
functionality throughout all levels of the supply chain.

4. RFID Tags Designed for Manufacturing
Operations
• Radio frequency identification systems have been in use for many
years, but were not practical for manufacturing due to their inability
to withstand the harsh conditions within manufacturing
environments.
• New and improved RFID tags have been designed to handle
conditions such as:
• Extreme heat and cold
• High pressures
• Hazardous locations
• Extreme moisture levels
• These changes have made RFID a more viableinventory
management solution for manufacturing.

5. Inventory Traceability Using RFID
• Constant, up-to-date access to inventory data is criticalto
manufacturers as it is a basis for all operations and decision making.
• Tagging components, work in progress (WIP) and finished products
with RFID tags can provide manufacturing operators with continuous
status updates.
• As product is funneled through the facility it passes designated “read
points” where new data is collected and added to the recorded audit
trail.
• This data helps to both forecast future replenishment needs as well
as monitor manufacturing progress.

6. Equipment Tracking & Monitoring Using
RFID
• Items being manufactured are not the only items closely monitored
within manufacturing plants. Fixed assets such as manufacturing
equipment and tooling pieces must also be tracked.
• Placing RFID tags on manufacturing equipment helps to find lost or
misplaced items within the plant that are needed for production
setup. Finding these items quickly streamlines the setup process and
allows your staff to increase productivity.
• RF identification also helps to monitor equipment maintenance
needs. Plant staff can easily locate items needing additional attention
or are scheduled for regular maintenance, extending the life of your
business’ investment.

7. RFID Aids in Production Scheduling
• Manufacturing operations run on strict schedules based on pre-sold
inventory and fluctuations in demand.
• When setting production schedules RFID can assist in identifying
tools and equipment not currently in use. This helps to increaseasset
utilization and increase production capabilities.
• Using RFID to track asset usage also helps to reduce labor hours
used identifying idle equipment. Staff no longer has to walk the floor
to identify available production areas and can use this time to focus
on other business critical activities.

8. RFID Helps Monitor Waste/Shrinkage
• With the tagging of component, WIP and finished inventory with RFID
tags comes greater inventory traceability capabilities.
• Waste inventory from production lines can be tracked to monitor
acceptable levels while removing waste from usable inventory,
keeping available component levels accurate.
• Shrinkage, inventory that is lost or stolen, can also be more closely
monitored within the facility using RFID as it can pinpoint the
approximate location of inventory items at any given time by tracking
the last passive scan through stationary RFID portals.
• Having more accurate data can help to reduce inventory lost
internally and identify problem staff.

9. RFID Helps Reduce Inventory Carrying
Costs
• The focus of many manufacturing businesses is cost reductionwith
product quality consistency.
• RFID helps to reduce costs by facilitating the implementation of just-
in-time (JIT) replenishment strategies.
• With more accurate inventory data, safety stock inventory levels can
be reduced, replenishing inventory on an as-needed basis. This helps
to reduce inventory carrying costs, savings that can be passed on to
customers.

10. RFID Enables Shipment Routing
• As finished products come off of the assembly line they arethen
prepared for final shipment.
• With RFID implementation inventory tags carry data related to
predetermined shipping routes. Characteristics such as carrier
information, product origin, destination and container contents are all
associated to the inventory item, simplifying shipment staging.
• Having this data easily accessible expedites the shippingprocess
and requires less labor output to process outbound shipments.

11. RFID Aids in Labor Tracking & Security
• Inventory and tools/equipment are not the only assets many
manufacturers are tracking using RFID systems.
• Many facilities now require staff to carry ID badges equipped with
built-in RFID tags.
• These badges allow staff to easily access permitted areas
throughout the facility and tracks their location in real time.
• This helps security to track employees if needed and assistslabor
tracking efforts.

12. RFID-Machinery Integration
• Some facilities handling bulk materials have taken RFID
implementation to the next level and integrated their radio frequency
identification systems with machinery control systems.
• In some cases this allows machinery operators to more safely
transport bulk materials throughout the facility using a series of
sensors that communicate with the RFID tag.
• While these systems are more complex than the average use, it is an
example of the true capabilities of RF technology and the future of
the use in manufacturing.
Source: http://www.plantengineering.com/single-article/beyond-track-and-trace-using-rfid-on-the-factory-
floor/cf9e83dd0fde70fd2be47135571ae16e.html?tx_ttnews%5BsViewPointer%5D=1

13. Conclusion
• Manufacturing operations are extremely complex and at times all of
the moving pieces are difficult to manage.
• RFID provides significant benefits to manufacturing operations
including:
• More efficient and cost effective inventory replenishment
• Reduces labor needs and associated costs
• Provides more accurate, real time inventory data
• Tool and equipment maintenance tracking
• Streamlines overall facility operation

14. Contact Us
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@Datexcorp