The document discusses the use of RFID (Radio Frequency Identification) technology in manufacturing to improve efficiency, optimize operations, and reduce costs. It highlights benefits such as real-time inventory tracking, equipment monitoring, production scheduling, and waste reduction, while emphasizing the technological advancements that have made RFID viable in manufacturing settings. Overall, RFID significantly enhances inventory management, labor tracking, and operational effectiveness in complex manufacturing environments.

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

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