Herzog Contracting Corporation implemented an asset management system using Honeywell and Dynamic Systems Inc. to track tools and equipment for a light rail construction project. This involved labeling tools with barcodes scanned by Honeywell mobile computers and software. It resulted in significantly less lost or replaced tools, saving an estimated $20,000 per month by decreasing costs.

1. Honeywell and Dynamic Systems Inc. help Herzog Contracting
Corporation implement an industry-leading asset management
system, resulting in significant cost savings.
Herzog Contracting Corp. is a $400 million construction company with
various projects, crews and sites nationwide. As most crews report
directly to the construction site each morning, and not a centralized
location, there was traditionally little to no tracking of the different
tools and small equipment used by each crew. Herzog recognized
that the “honor system” was resulting in a major loss in profitability due to the costs associated
with replacing tools and equipment that went missing. When Herzog won a new contract for the
case study

2. construction of Denver’s West Corridor
Light Rail Project in 2009, company
leaders recognized the opportunity
to implement an asset management
solution and enlisted Dynamic Systems
Inc., a software developer specializing
in bar code data collection applications,
to help. Herzog and Dynamic Systems
selected Honeywell’s Dolphin®
7850
mobile computer and Focus®
1690
hand-held area-imaging scanner, paired
with CheckMate Toolroom software and
pre-printed 1D and 2D bar codes to
label, track and monitor the tools and
equipment used for the light rail project.
Since implementation in May of 2009,
tool and equipment replacement has
lessened to the point that the company is
saving an estimated $20,000 per month.
The Challenge:
A project such as the construction of
Denver’s West Corridor Light Rail Project
involves a variety of trade work—from
bridge building to carpentry to ditch
digging. All of these elements require
different tools and equipment, from
hammers and drills to shovels and GPS
receivers. Until recently, there was no
asset system in place to track equipment
needs. Each foreman was responsible
for his or her crews’ set of tools, and
as such, it was a common occurrence
for tools and equipment to be lost or
misplaced, which the company knew
was causing a major impact on overall
profitability. Without a proper tracking
system, Herzog estimated that it
replaced at least 10 percent of all tools
purchased over the course of a project.
On one recent project in particular, the
company purchased more than 1,000
replacement tape measures.
Herzog challenged Dynamic Systems
Inc. to provide a comprehensive tool
management solution to meet their
highly specific criteria. Many construction
sites do not have an office, so a
traditional computerized system was
not an option. Further, not every site
has easily accessible Internet, so the
system had to be managed without
a wireless connection, but with the
ability to upload information to a central
database as needed. The solution also
had to be very durable, including the
ability to withstand prolonged exposure
to dust and dirt, which is commonly a
problem on construction sites. The tools
and equipment used on-site vary in size
and shape, so the solution needed to
incorporate bar codes that were small
enough and durable enough to fit and
stay put on all types of tools. Herzog
was specifically interested in utilizing 2D
bar codes for these reasons. To read
the bar codes, Herzog needed a mobile
computer with scanning and imaging
capabilities, and a hand-held scanner
that could quickly and seamlessly log
new tools into the system.
Taking all requirements into consideration,
the company selected a complete
solution, including Honeywell’s Dolphin
7850 mobile computer and Focus 1690
scanner in conjunction with Dynamic
Systems’ CheckMate software for tool
tracking, and pre-printed 1D and 2D
bar codes.
The Solution:
Designed for rugged environments and
built to withstand repeated drops to
concrete, Honeywell’s Dolphin 7850
mobile computer was selected for the
project because of its IP64 rating and
easy-to-use, touch screen interface.
Signature capture functionality was
also a key reason the device was
selected as it allows each crew foreman
to electronically sign out tools and
equipment for his or her team, instilling
a sense of responsibility and ownership
over the tools. This signature also
serves as a legal record from which the
company can hold a specific foreman
responsible, should an expensive tool
turn up missing.
Honeywell’s Focus 1690 hand-held
area-imaging scanner decodes virtually
all bar codes, including the 1D and
2D bar codes designed specifically to
adhere to Herzog’s requirements. The
1690 quickly scans the individual bar
codes applied to each new small tool
and/or piece of equipment owned by
Herzog. Using CheckMate Toolroom
software, this information is loaded
into an electronic library so that
each individual tool can be tracked.
Additionally, this software allows tools
to be classified according to value, with
more expensive tools being tracked
more closely. Although updates are
not made to the library in real-time due
to the nature of the business, they are
made two to three times daily, creating
an easy, searchable database for quickly
determining which crew last used a
specific tool or piece of equipment.
As the solution continues to grow
in popularity and use, the electronic
records will also serve as a component
of a complete pricing/cost estimate
system for the company.
The Benefit:
This solution provides increased
profitability for Herzog as foremen feel a
heightened sense of ownership for their
crew’s tools, resulting in a significant
decrease in tool and equipment loss.
Herzog estimates it is currently saving
$20,000 per month on tool replacement.
The company is also seeing improved
productivity as the solution allows
management to know where expensive
and unique tools are at any point in
time and there is no longer time spent
searching for lost or stolen tools.
“Herzog is among the first construction
companies in the business to manage
our assets electronically and this
wouldn’t be possible without Honeywell’s
rugged and reliable devices,” said
Deric Berry, Fleet Manager, Herzog
Contracting Corp. “We look forward

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to seeing improved productivity and
profitability from our crews as we
continue to implement this system at
other sites.”
The success of Denver’s West Corridor
Light Rail Project resulted in the
purchase of a duplicate system to be
used in the construction of the North
Texas Rail Project, slated for completion
in mid 2011.