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Case study dsi herzog cs_072010

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Barcode Tracking Systems

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Case study dsi herzog cs_072010

  1. 1. Honeywell and Dynamic Systems Inc. help Herzog ContractingCorporation implement an industry-leading asset managementsystem, resulting in significant cost savings.Herzog Contracting Corp. is a $400 million construction company withvarious projects, crews and sites nationwide. As most crews reportdirectly to the construction site each morning, and not a centralizedlocation, there was traditionally little to no tracking of the differenttools and small equipment used by each crew. Herzog recognizedthat the “honor system” was resulting in a major loss in profitability due to the costs associatedwith replacing tools and equipment that went missing. When Herzog won a new contract for thecase study
  2. 2. construction of Denver’s West CorridorLight Rail Project in 2009, companyleaders recognized the opportunityto implement an asset managementsolution and enlisted Dynamic SystemsInc., a software developer specializingin bar code data collection applications,to help. Herzog and Dynamic Systemsselected Honeywell’s Dolphin®7850mobile computer and Focus®1690hand-held area-imaging scanner, pairedwith CheckMate Toolroom software andpre-printed 1D and 2D bar codes tolabel, track and monitor the tools andequipment used for the light rail project.Since implementation in May of 2009,tool and equipment replacement haslessened to the point that the company issaving an estimated $20,000 per month.The Challenge:A project such as the construction ofDenver’s West Corridor Light Rail Projectinvolves a variety of trade work—frombridge building to carpentry to ditchdigging. All of these elements requiredifferent tools and equipment, fromhammers and drills to shovels and GPSreceivers. Until recently, there was noasset system in place to track equipmentneeds. Each foreman was responsiblefor his or her crews’ set of tools, andas such, it was a common occurrencefor tools and equipment to be lost ormisplaced, which the company knewwas causing a major impact on overallprofitability. Without a proper trackingsystem, Herzog estimated that itreplaced at least 10 percent of all toolspurchased over the course of a project.On one recent project in particular, thecompany purchased more than 1,000replacement tape measures.Herzog challenged Dynamic SystemsInc. to provide a comprehensive toolmanagement solution to meet theirhighly specific criteria. Many constructionsites do not have an office, so atraditional computerized system wasnot an option. Further, not every sitehas easily accessible Internet, so thesystem had to be managed withouta wireless connection, but with theability to upload information to a centraldatabase as needed. The solution alsohad to be very durable, including theability to withstand prolonged exposureto dust and dirt, which is commonly aproblem on construction sites. The toolsand equipment used on-site vary in sizeand shape, so the solution needed toincorporate bar codes that were smallenough and durable enough to fit andstay put on all types of tools. Herzogwas specifically interested in utilizing 2Dbar codes for these reasons. To readthe bar codes, Herzog needed a mobilecomputer with scanning and imagingcapabilities, and a hand-held scannerthat could quickly and seamlessly lognew tools into the system.Taking all requirements into consideration,the company selected a completesolution, including Honeywell’s Dolphin7850 mobile computer and Focus 1690scanner in conjunction with DynamicSystems’ CheckMate software for tooltracking, and pre-printed 1D and 2Dbar codes.The Solution:Designed for rugged environments andbuilt to withstand repeated drops toconcrete, Honeywell’s Dolphin 7850mobile computer was selected for theproject because of its IP64 rating andeasy-to-use, touch screen interface.Signature capture functionality wasalso a key reason the device wasselected as it allows each crew foremanto electronically sign out tools andequipment for his or her team, instillinga sense of responsibility and ownershipover the tools. This signature alsoserves as a legal record from which thecompany can hold a specific foremanresponsible, should an expensive toolturn up missing.Honeywell’s Focus 1690 hand-heldarea-imaging scanner decodes virtuallyall bar codes, including the 1D and2D bar codes designed specifically toadhere to Herzog’s requirements. The1690 quickly scans the individual barcodes applied to each new small tooland/or piece of equipment owned byHerzog. Using CheckMate Toolroomsoftware, this information is loadedinto an electronic library so thateach individual tool can be tracked.Additionally, this software allows toolsto be classified according to value, withmore expensive tools being trackedmore closely. Although updates arenot made to the library in real-time dueto the nature of the business, they aremade two to three times daily, creatingan easy, searchable database for quicklydetermining which crew last used aspecific tool or piece of equipment.As the solution continues to growin popularity and use, the electronicrecords will also serve as a componentof a complete pricing/cost estimatesystem for the company.The Benefit:This solution provides increasedprofitability for Herzog as foremen feel aheightened sense of ownership for theircrew’s tools, resulting in a significantdecrease in tool and equipment loss.Herzog estimates it is currently saving$20,000 per month on tool replacement.The company is also seeing improvedproductivity as the solution allowsmanagement to know where expensiveand unique tools are at any point intime and there is no longer time spentsearching for lost or stolen tools.“Herzog is among the first constructioncompanies in the business to manageour assets electronically and thiswouldn’t be possible without Honeywell’srugged and reliable devices,” saidDeric Berry, Fleet Manager, HerzogContracting Corp. “We look forward
  3. 3. © 2010 Honeywell International Inc.For more information:www.honeywellaidc.comHoneywell Scanning & Mobility9680 Old Bailes RoadFort Mill, SC 29707800.582.4263www.honeywell.comto seeing improved productivity andprofitability from our crews as wecontinue to implement this system atother sites.”The success of Denver’s West CorridorLight Rail Project resulted in thepurchase of a duplicate system to beused in the construction of the NorthTexas Rail Project, slated for completionin mid 2011.

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