Advantages of RFID Application

by Neil Jones on 2011-03-25

Radio frequency identification (RFID) is a progressive technology. The new Electronic Product Code (EPC) RFID chip which helps to connect business partners with associate supply chains is a hot topic now. But to obtain the immediate advantages of RFID, manufacturers should consider their company’s own business procedures, not just the obedient needs of customers of retailers. Without much management and involvedness that supply chain functioning require, RFID yields a fast return on investments in several factories and storehouse industrial operations. Manufacturers who are always in a bottle-neck situation craving for traceability and who wish to lessen workforce and expenses for maintenance and refilling are best suited to save money with RFID.

The returns are prompt on RFID investment because the industrial applications opt for recent appropriate technologies. Several concerns and apprehensive operation challenges of retail RFID systems depend on unreliability of tag standards. Many business applications like up-to-the-minute tracking, replacement and refilling, parts identification, management of assets and fleet are in-house procedures and does not need RFID systems to coordinate with clients, retailers, logistics providers and other companies. This provides users various opportunities for incorporating RFID application.

It is known that one apparatus is not suitable for every job. The RFID chip is only one part of the entire system that links mobile computers, cordless LANs, barcodes, material handling machines and industrial controls to administer goods and assets in an effective way. “Tag first” approach is not desirable – considering only the tag facilities and forcefully incorporating them into business. Instead you should look from the perspective of your business procedures, identifying areas where data is sorted out, collected, conveyed and processed and implement RFID solution accordingly. Organizations need to understand other components to realize RFID’s worth. How have companies cut down costs and enhanced efficiency using internal RFID applications? Here is an account.

RFID Usage
Developed in 1940s, RFID technology has been in commercial use for 30 years. In industries, RFID is applied for automatic tracking of materials and machines and identifying containers. RFID performs exceptionally well in tracing the life cycle of a product, reducing overhead cost, time and mistakes in high data identification and handling areas, and providing information about a product or any mechanically captured data when required by a software application or business procedure.

Product Tracking & Genealogy
The companies which needs to outline genealogy or lifetime information of products finds RFID tracking useful. Without positive recognition and lifetime service records for a part, aircrafts can’t fly in aviation industry. Wrong identification and inaccurate records can cost millions of dollars for replacement.

Traceability applications improve with RFID as it can update product information throughout life. Product ID number can be permanently and safely stored in a read-write RFID tag. Extra memory is also provided for storing and updating data. If the product chips are consistently updated with security codes, sensor readings and inspection dates, the maintenance, warranty and asset administration applications can benefit.

Service, profits and recall operations can improve with precise product genealogy information. RFID system helps to detect look-alike parts and companies can avert ineligible service claims. The product ID authenticates the returned items that they legally belong to the registered manufacturer. Providing individual part numbers to clients helps organizations to carry out targeted recalls. It limits legal issues and acts as an important service and maintenance proof if product quality is ever questioned.

WIP Tracking
The lifetime traceability and product genealogy RFID tags are providers of proficient production tracking in goods management applications. Item-level identification is required by manufacturing industries to make sure that correct parts are added to assemblies. RFID authenticates identities quickly which is incorporated with material handling and production control devices to direct items to apt assembly, checking or packaging locations.

Automakers and their retailers apply RFID to identify minor assemblies to make sure they are installed in a proper framework. One OEM attaches RFID chips to racks carrying engines to its installation location. Each engine possesses a barcode number that is scanned to relate that particular engine with the rack contained in a database. To avert the incorrect engine from getting installed in a framework, the database authenticates that all engines of the rack are of same configuration. Selection of appropriate rack is confirmed by the forklift-mounted RFID readers. Before the engines are unloaded, the racks are scanned again. All RFID and barcode scanned information is send to database software immediately through wireless LAN facility. Companies reduce expenses by avoiding installation mistakes and sequence loading.

Replenishment
Refilling of materials for production is also done by RFID at regular intervals. In the above example, what if a wireless signal was prompted to deliver another rack to the installation location. Or imagine after 10 racks were unloaded, the work station was refilled with a fresh bucket of parts automatically for the assembly procedure. RFID possess the ability to bring Kanban and other immediate replenishment procedures to advanced stages of responsiveness and competence. These enhanced performances induce confidence and control among companies and in turn reduces material inventory and overall expenditure. These examples proscave how RFID can bring about improvements – by adding to your business procedures, not altering them.

Unlocking the Value
The RFID chip serves as a key to release product data from a database in many applications. Other than enjoying the utility of the tag, you have to understand how RFID can generate value and provide profits on investment. Features like frequency, size and price gives a good platform to rate tags, but not to asses the overall value of a RFID application. The value and returns on investment depends on the successful functioning of the entire system to offer operational improvements.

Conclusion
Tags are one part of RFID systems which are in turn part of enterprise information system. Barcode Scanners and RFID’s contribution to an organization should be assessed based on its impact on hardware, software and operations for generations. Several ways are there to benefit by selectively using RFID in appropriate applications which adds to and accomplishes legacy operations. It will allow gaining future profits from supply chain or outside applications.