Best Practices for RFID in Manufacturing Operations · Best Practices for RFID in Manufacturing...
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Best Practices for RFID in Manufacturing Operations Jonathan Gregory Program Manager OATSystems
Transcript of Best Practices for RFID in Manufacturing Operations · Best Practices for RFID in Manufacturing...
Best Practices for RFID in Manufacturing OperationsJonathan Gregory
Program Manager
OATSystems
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RFID in Manufacturing – Best Practices from 100+ Deployments
• Introduction• Technology Adoption: Where are we?• What Successful Deployments Have in Common• Getting Started
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OAT Systems: Auto-ID Innovation & Leadership
• Breadth & Depth of Resources: division of Checkpoint Systems (NYSE: CKP) $1B RF technology innovator and global services provider
– 40+ years RF experience– 5500+ employees, located across 6 continents
• Proven Solutions: Over 100 industrial manufacturers, retailers and consumer products companies deploy OAT software to streamline operations.
• Enterprise Scale: Powers the world’s largest RFID-enabled Manufacturing deployment: Airbus A380 Value Chain
• First-to-Market: First RFID Middleware (2001), First Multi-Site Deployment (2003), First RFID-centric Applications (2003), First Flexible Architecture Solution (2006), Selected for the First End-to-End Aerospace & Defense deployment (2008)
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Selected Manufacturing Deployments by Process Area
Part MarkingCompany: Fortune 500 Aerospace SuppliersAssets Tracked: Serialized Components for Airbus A350 AircraftAuto-ID Technology: High Memory Tags, 2D BarcodeEnterprise Systems: SAP ERPResults: Automated part marking, WIP visibility
Clean Room TrackingCompany: Global Defense ContractorAssets Tracked: Indirect Materials used in Process ManufacturingAuto-ID Technology: RFID, BarcodeResults: Reduced inventory costs
Materials ManagementCompany: Multiple Aerospace Manufacturers, Defense ContractorsAssets Tracked: Indirect Materials (Molds & Jigs)Auto-ID Technology: RFID, RTLSEnterprise Systems: SAP, Baan, Deltek CostPointResults: Reduction in material costs, improved work order tracking
Inbound ReceivingCompanies: Aerospace OEM, Chemical Manufacturer, Electronics DistributorAssets Tracked: Component Parts and Raw Materials from SuppliersAuto-ID Technology: RFID, Wi-Fi, BarcodeEnterprise Systems: SAP, Baan ERPResults: Reduced handling time, labor costs
WIP Tracking / Kanban ManagementCompanies: Heavy Equipment, Electronics MfgAssets Tracked: Component Parts, Finished GoodsAuto-ID Technology: RFID, BarcodeEnterprise Systems: SAP ERPResults: Automated line-side replenishment, reduced labor, inventory and rework costs
Component Tracking & KittingCompany: Specialized Aircraft ManufacturerAssets Tracked: Component Parts, Subassembliesfor Whole GoodsAuto-ID Technology: RFID, Wi-Fi, BarcodeEnterprise Systems: SAP, Baan ERPResults: Reduced labor costs for outbound shipping,customs paperwork
Equipment TrackingCompany: Heavy Equipment ManufacturerAssets Tracked: Specialized Equipment, Yard TrailersAuto-ID Technology: RFID, Wi-Fi, Barcode, GPSEnterprise Systems: SAP ERPResults: Reduced asset shrinkage, labor costs
Tool TrackingCompany: Fortune 500 Defense ContractorAssets Tracked: Specialized Tools and Tooling across 20+ building manufacturing campusAuto-ID Technology: RFID, BarcodeEnterprise Systems: Deltek CostPointResults: Improved asset utilization, reduced tool inventory
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Technology Adoption Life Cycle
Early Adopters
Early Majority
LateMajority
Laggards
* Geoffrey A. Moore: Crossing The Chasm, Harper Business Essentials 2002
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Technology Adoption Life Cycle
Early Majority
LateMajority
Laggards
Technologies Niche / Industry Solutions
Early Adopters
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Leveraging Enterprise Systems•Enriching ERP, Project Management, WMS, Asset Management & MRO systems •Leverage Enterprise Systems Resources& Budget vs. Adding a new “RFID Line Item”
Focusing onProcess Automation& Cost Efficiencies•Real-time enabling error-proneprocess areas •Alignment with Six Sigma/Lean Initiatives
Building in Room for Growth•If you’re successful, you’ll be askedto do more•Think ahead and deploy a solutionthat can scale and evolve easily•Select a platform with broad device support
Leveraging ExistingSoftware Platforms,Proven Use Cases•Don’t reinvent the wheel!•Much faster to test and deploy proven software than writing custom code
Tackling the HardProblems First•High-Impact Use Cases•Measurable Outcomes
What Successful DeploymentsHave in Common
123
45Aligning with
OrganizationalObjectives•Operate within your limitations•Be prepared to be successful
6
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Leveraging Enterprise Systems•Enriching ERP, Project Management, WMS, Asset Management & MRO systems •Leverage Enterprise Systems Resources& Budget vs. Adding a new “RFID Line Item”
Focusing onProcess Automation& Cost Efficiencies•Real-time enabling error-proneprocess areas •Alignment with Six Sigma/Lean Initiatives
Building in Room for Growth•If you’re successful, you’ll be askedto do more•Think ahead and deploy a solutionthat can scale and evolve easily•Select a platform with broad device support
Leveraging ExistingSoftware Platforms,Proven Use Cases•Don’t reinvent the wheel!•Much faster to test and deploy proven software than writing custom code
Tackling the HardProblems First•High-Impact Use Cases•Measurable Outcomes
What Successful DeploymentsHave in Common
123
45Aligning with
OrganizationalObjectives•Operate within your limitations•Be prepared to be successful
6
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Where Can RFID Have the Most Impact?
RFID Use Cases in Manufacturing
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High-Impact Use Cases
WIP Tracking/WIP Tracking/KanbanKanban
ManagementManagement
Tool & Tool & EquipmentEquipmentTrackingTracking
IndirectIndirectMaterialsMaterials
ManagementManagement
ComponentComponentTrackingTracking& Kitting& Kitting
WarrantyWarranty/Recall/Recall
TrackingTracking
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Sample Use Cases by Industry
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High-Impact Use Cases –Deployment Guide
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Leveraging Enterprise Systems•Enriching ERP, Project Management, WMS, Asset Management & MRO systems •Leverage Enterprise Systems Resources& Budget vs. Adding a new “RFID Line Item”
Focusing onProcess Automation& Cost Efficiencies•Real-time enabling error-proneprocess areas •Alignment with Six Sigma/Lean Initiatives
Building in Room for Growth•If you’re successful, you’ll be askedto do more•Think ahead and deploy a solutionthat can scale and evolve easily•Select a platform with broad device support
Leveraging ExistingSoftware Platforms,Proven Use Cases•Don’t reinvent the wheel!•Much faster to test and deploy proven software than writing custom code
Tackling the HardProblems First•High-Impact Use Cases•Measurable Outcomes
What Successful DeploymentsHave in Common
123
45Aligning with
OrganizationalObjectives•Operate within your limitations•Be prepared to be successful
6
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Organizational Impact of RFID“MOUnD” Organizational Change Model
MIDDLE
Innovation is generated in the middle of the organization
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Organizational Impact of RFID“MOUnD” Organizational Change Model
MIDDLE OUTER
Innovation spreads to adjacent departmentInnovation is generated in the middle of the organization
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Organizational Impact of RFID“MOUnD” Organizational Change Model
MIDDLE OUTER
UPPER
Innovation spreads to adjacent departmentInnovation is generated in the middle of the organization
Innovation gains attention of upper management
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Organizational Impact of RFID“MOUnD” Organizational Change Model
MIDDLE OUTER
Innovation spreads to adjacent departmentInnovation is generated in the middle of the organization
Innovation gains attention of upper management
UPPER DOWN
Innovation is rolled out globally
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Leveraging Enterprise Systems•Enriching ERP, Project Management, WMS, Asset Management & MRO systems •Leverage Enterprise Systems Resources& Budget vs. Adding a new “RFID Line Item”
Focusing onProcess Automation& Cost Efficiencies•Real-time enabling error-proneprocess areas •Alignment with Six Sigma/Lean Initiatives
Building in Room for Growth•If you’re successful, you’ll be askedto do more•Think ahead and deploy a solutionthat can scale and evolve easily•Select a platform with broad device support
Leveraging ExistingSoftware Platforms,Proven Use Cases•Don’t reinvent the wheel!•Much faster to test and deploy proven software than writing custom code
Tackling the HardProblems First•High-Impact Use Cases•Measurable Outcomes
What Successful DeploymentsHave in Common
123
45Aligning with
OrganizationalObjectives•Operate within your limitations•Be prepared to be successful
6
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Process Automation Example – Tool & Equipment Tracking
Auto-ID Devices & SensorsRTLS, Wi-Fi, Barcode, Active/Passive RFID, Stack Lights, Alarms…
ERP / Program Mgt System
RFID Software (OAT Tool Tracking)
Send ServiceDetails
Read ToolInformation
Validate Against Maintenance Schedule
Get Specialized Tool
Requirements& Location
Update Work Order Status
Get Work Order Details from ERP / MMS / MRO
System
Updatewith NewLocation Status
Check Out Tool at
Store #3
OperatorFeedback
Alert! Tool#
16554005 is due forscheduled calibration!
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Process Automation = Cost Efficiencies
Application:Application:
RFID/ RTLS RFID/ RTLS ProcessProcessAutomation:Automation: Enterprise Systems Integration Options:Enterprise Systems Integration Options:
RFID/ RTLSRFID/ RTLSValueValue--Add:Add:
Work-in-Process Tracking
• Tracking Work Orders , Component Parts & Subassemblies
• Update Inventory Levels as Component Parts are Assigned to New Work Orders.
• Alert Operator or Replenish Part Stores when Inventory Levels fall below threshold
• Reduce Safety Stock, Reusable Containers
• Help Prevent Missing Orders and Rework
• Audit Trail of Components, Batch Numbers for Warranty
Kanban Management
Cycle Counting
• Proactive Inventory Mgt, Automatic Replenishment
• Compare Expected Inventory with Actual Inventory
• Alert Operator or Replenish when Inventory Levels are Low
• Automate Stock Taking and Replenishment
• Reduce Safety Stock, Labor Costs
Tool Tracking • Tracking Tools and Specialized Equipment
• Verify and Update Tool Location and Maintenance Records when Tools are checked in and out
• Reduce Tool Spares• Improve Quality• Avoid Penalties for
Non-Compliance
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Leveraging Enterprise Systems•Enriching ERP, Project Management, WMS, Asset Management & MRO systems •Leverage Enterprise Systems Resources& Budget vs. Adding a new “RFID Line Item”
Focusing onProcess Automation& Cost Efficiencies•Real-time enabling error-proneprocess areas •Alignment with Six Sigma/Lean Initiatives
Building in Room for Growth•If you’re successful, you’ll be askedto do more•Think ahead and deploy a solutionthat can scale and evolve easily•Select a platform with broad device support
Leveraging ExistingSoftware Platforms,Proven Use Cases•Don’t reinvent the wheel!•Much faster to test and deploy proven software than writing custom code
Tackling the HardProblems First•High-Impact Use Cases•Measurable Outcomes
What Successful DeploymentsHave in Common
123
45Aligning with
OrganizationalObjectives•Operate within your limitations•Be prepared to be successful
6
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Auto-ID/RFID Data
Leverage Enterprise Systems
• High Volume• Time-Sensitive• Real-Time• Operational Info
Auto-ID/RFID Software Platform
• Multi-Modal Device Management• Data Management, Context• Customizable Scenarios• Rules Engine• Workflow & Triggers• Event Management• Visualization & Reporting• Enterprise Device
& Data Administration• API & Integration Tools• Decision Support
EnterpriseEnterpriseApplicationsApplications
WMS
ERP
MRO
MES
ProjectMgmt.
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Leverage Existing Use Cases
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Build in Room for Growth, Adjacent Use Cases
WIP Tracking/WIP Tracking/KanbanKanban
ManagementManagement
Tool & Tool & EquipmentEquipmentTrackingTracking
IndirectIndirectMaterialsMaterials
ManagementManagement
ComponentComponentTrackingTracking& Kitting& Kitting
WarrantyWarranty/Recall/Recall
TrackingTracking
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Getting Started
Identify Process Areas•Work-in-Process•Tooling•Logistics•Aftermarket Service
Identify Process Areas•Work-in-Process•Tooling•Logistics•Aftermarket Service
Quantify Value•Manual vs. Automated Process
•Map Use Cases to Business Scenario
•Cost Reduction•Process Improvement
•Quality/Safety
Quantify Value•Manual vs. Automated Process
•Map Use Cases to Business Scenario
•Cost Reduction•Process Improvement
•Quality/Safety
Define Solution•Tags•Software•Hardware•Integration•Data Management•Supporting processes
Define Solution•Tags•Software•Hardware•Integration•Data Management•Supporting processes
Deploy Solution•Define Project Timeline
•By Process•By Facility•By Enterprise Solution
Deploy Solution•Define Project Timeline
•By Process•By Facility•By Enterprise Solution
Measure Result•Gather Metrics•Evaluate Process Parameters
Measure Result•Gather Metrics•Evaluate Process Parameters
CONTINUOUS IMPROVEMENT
Jonathan Gregory Program Manager [email protected]
