Benefits of Error Proofing Through RFID

By Nate Rodnay

Manufacturers and suppliers have a clear and strong incentive to create error proofing systems that ensure products and components have been assembled and tested correctly before leaving the plant. To prevent delays in error detection, manufacturers need to comprehensively identify assemblies and components, verify activity throughout production and material handling processes. Manufacturers can leverage their ERP, quality control and manufacturing execution systems with real-time bar code and RFID input to close the loopholes in work-in-process tracking that cause production and sequencing errors.

Benefits of Error Proofing Through RFID:

The following are the RFID applications that improve all operations between suppliers and manufacturers that prevent errors that commonly occur and improve visibility.

• Outbound Logistics: When manufacturers and their suppliers are collaborated they can improve operations and error-proof processes with RFID. Consider engines that are assembled at a supplier facility and shipped to the automotive OEM. The supplier can automate and error proof the outbound logistics as engines move from production to the trains or trucks for shipment. Each engine should be uniquely identified and loaded sequentially to support just-in-time production. The serial number and model is typically on the engine’s bar code label, but these symbols are not always convenient to read, especially in unattended material handling operations.

• Inbound Logistics: Manufacturers have to track the incoming shipments in the correct sequence order. Tagged racks can be read with forklift-mounted or dock-door readers as soon as they arrive at the facility and matched to an order or shipment notification in a database via a wireless LAN connection. Again, RFID data collection and wireless LAN connectivity can accurately record all movements and putaway locations. Real-time RFID tracking also improves visibility of inventory, materials and work-in process.

• In-plant Logistics: Racks that are conveyed with material handling systems can be identified with fixed-position RFID readers installed at strategic points throughout the facility. Error-proofing applications can prevent improper installations by automatically issuing alerts if products are out of sequence. By recording the unique serial number accurately and automatically of each component, manufacturers can quickly identify and find products that need to be reworked or recalled because of component problems.

• Additional Applications: An RFID infrastructure created for error proofing can support many additional beneficial operations. These include automated replenishment and kanban signaling, TREAD Act compliance, yard management, cross docking, picking and putaway, inventory management, asset tracking, automatic vehicle locating (AVL), returnable container identification and more. This information gives you an idea about the error proofing with RFID applications and its benefits to improve various productivity operations. Manufacturers and suppliers have a clear and strong incentive to create error proofing systems that ensure products and components have been assembled and tested correctly before leaving the plant. To prevent delays in error detection, manufacturers need to comprehensively identify assemblies and components, verify activity throughout production and material handling processes. Manufacturers can leverage their ERP, quality control and manufacturing execution systems with real-time bar code and RFID input to close the loopholes in work-in-process tracking that cause production and sequencing errors.

Do YOU have questions about error proofing YOUR processes through RFID? Ask Dynamic Computer Corporation experts -- Schedule a FREE conference call at 248-473-2200 or email info@dcc-online.com.

The Federal Drug Administration (FDA) Appears to be Favoring RFID Over Barcodes

The Federal Drug Administration Amendment Act of 2007 (FDAAA) was developed when the Federal Drug Administration (FDA) was tasked with identifying specific standards. The portion of the FDAAA requires the FDA to create a standard and execution process to be able to uniquely identify pharmaceuticals at the unit-of-use level.

With only a little more than 2 years to accomplish this directive, the FDA began researching likely solutions and progressive technologies. A solution has not yet been selected and numerous technologies have not been discarded, it appears that the FDA is leaning toward Radio Frequency Identification (RFID) to achieve their goals, according preliminary Federal Register notices.

FDA Tracking Goals Prescription Drugs:

Identification

Validation

Tracing

Tracking

Authentication

For drug pedigree and trace and track functions, the FDA seemed to favor RFID over Barcodes. The two obstacles standing in the way of RFID as a solution – well it appear to be a little superficial.

1. Barcodes are widely used and accepted in the pharmaceutical industry – less education required to implement.
2. Barcode systems are perceived to be less expensive to implement.

I wouldn’t call that a win for barcodes just yet either. The ideal solution will be the one that can accomplish the complete set of goals through automated processes. Accuracy will be a huge factor in the decision as well. Many enterprises claim barcodes and RFID compliment one another and perhaps the solution is made up of more than one technology.

However, the attraction to RFID seems to be the EPC system. EPC codes have the capability to assign unique serial numbers at a does-level, package-level as well as several other levels.

Until the “verdict” is in and announced, we won’t know what solution the FDA will select to meet the FDAAA directive. We’ll keep you posted.

Could RFID automate your processes and eliminate human error? Dynamic Computer is a great source for RFID information and can help you determine if RFID is a viable option for your needs.

Visit the Dynamic Computer Corporation website or contact us 248-473-2200. We even have a Demo area to visually show you RFID in action.

Dynamic Computer Opens RFID Demonstration Room

---If Your Company is Considering RFID & in the Southeastern Michigan Area...READ THIS!---

Dynamic Computer Corporation is pleased to announce the opening of their RFID demonstration room on Tuesday, May 13 2008. The demonstration room will be available to the public on Tuesdays and Fridays from 1PM to 5PM EST to allow industry professionals the opportunity to view Radio Frequency IDentification (RFID) in action.

In the demonstration area, guests will be able to witness how RFID antennae, readers, tags and software operate together to achieve inventory control or asset management goals. Since RFID systems can accomplish many objectives for a number of industries, a variety of sample tags will be available for viewing and Dynamic Computer’s RFID Team will be on hand to answer questions and discuss use cases.

Dynamic Computer’s goal is to help RFID prospects get 100% read rates and a solid return on investment for their RFID implementation. By visiting the RFID demonstration area, guests will gain the advantage personal insight on how RFID works as well as how it applies to their company’s specific RFID strategy.

Anyone who is interested in RFID or would like to discuss their own upcoming RFID implementation is encouraged to call and reserve a seat for an open demo at 248-473-2200.
The RFID Demo Area is located at Dynamic Computer Corporation’s office at 23400 Industrial Park Court in Farmington Hills, Michigan. For directions, please call DCC at 248-473-2200 or email info@dcc-online.com.

RFID Equipped Shopping Carts; More Than Theft Prevention

What would you do if one of your $150-$200 ticket items added up to a loss of thousands of dollars every year?

An early solution was proposed by California Shopping Cart Retrieval Corporation (CSCRC), which takes on the responsibility of rounding up shopping carts for various retailers for a negotiated management fee. For example, many shoppers that live within walking distance from a store may take their cart all the way home with them. CSCRC will round up all those missing carts, or rather abducted carts, and return them to the store. They have 2,500 retail clients in California and Las Vegas and are responsible for returning approximately $8.5 million carts per year. Yes, that would be a potential loss of $170 million for the group or an average of $68,000 per client.

California Shopping Cart Retrieval Corporation is attempting to keep up with technology to better serve their clients and make their job more efficient. Their goal now is to prevent the shopping carts from going missing in the first place – introducing RFID to their niche service. CSRCR does not necessarily own this market, there are many RFID providers, such Dynamic Computer Corporation, that have the technology and expertise to implement a RFID tracking system for retail shipping carts.

As a basic program, the RFID tagged shopping cart can track the movement inside the store as well as in the parking lot. It can also trip a wheel-locking mechanism that stops the cart once it crosses a designated boundary. If the wheels won’t move beyond a certain point, the cart is rendered useless to those that used to take advantage of its functionality all the way home.

Where Can RFID Tagged Carts Go from Here?
If Microsoft has anything to say about it, RFID tagged grocery carts will have shoppers logging in via an on-cart scanner, utilize a virtual shopping list, receive printable coupon offers and much more. You might think it is all about enhancing the customer experience. While that is the primary goal, retailers will also be able to better track inventory, shopper behavior, loyalty trends and promotional efforts.

Think this all a bit too George Jetson-esk? MediaCarts are due to pilot in 2008.

If you think you may need more control over your assets and/or inventory, contact Dynamic Computer Corporation today to schedule an informational conference call!

www.dcc-online.com

248-473-2200

RFID Delivered a $12,000 Savings in First Month

Looking for a way to achieve a $12,000 saving in materials cost?

Consider a RFID Tracking System!

According to an article in RFID Update by John Burnell, a large commercial painting contractor implemented RFID tracking for inventory control and saved $12,000 in the first month. Vulcan Painters previously had issues keeping track of what materials were issued to job sites and what was returned.

In addition to inventory accuracy related to use, Vulcan’s new RFID system reduced misplaced and unaccounted for materials as well as reduced losses from expired paint.

HOW VULCAN IMPLEMENTED RFID:
Moderate to high-cost inventory items in the Vulcan facility were tagged with an RFID tag. Project managers use handheld computers integrated with RFID readers to select and load the items required for the job. The handheld application assigns the materials to the project manager and job site. When the workers leave the facility wit the materials, they pass through a RFID portal read which records all tagged objects as well as identifies any items that were not “checked out” by the manager.

When employees return to the facility, they scan the items they are returning with a handheld RFID reader and enter the storage location. The collected data allows Vulcan to keep real-time tabs on their inventory and also search by expiration, brand, color, etc.

EXPANDING RFID FOR VULCAN:
The article also indicated that Vulcan Painters could further their savings if they wanted to implement RFID tracking to the work sites themselves. Ford recently announced new RFID reader-equipped pickup trucks and work vans that could held further their tracking abilities. Currently they are only tracking materials as the leave and come back to the storage facility, but RFID is also a very viable solution for asset management (i.e ladders, scaffolding, etc.).

At time publish, Vulcan does not have plans to expand RFID beyond materials, but if they continue to save anything near $12,000 past month one…they just might want to further their savings as well as efficiency.

Have you considered RFID for inventory control or asset management?

Dynamic Computer is a great source of RFID information and can help you determine if RFID is an investment worth initiating. Visit the Dynamic Computer Corporation website or contact us 248-473-2200. We even have a Demo area to visually show you RFID in action.

Restaurant Industry Starting to Relish RFID

Some strong competitors in the restaurant industry are eating up the benefits that RFID technology is serving for three major reasons.

Reduce Loss

Better Control/Visibility of Stock

Enhance the Customer Experience

As professionals we are all faced with making our business profitable, which generally means seeking ways to increase profit while decreasing spending. Even though the restaurant industry rakes in more than $550 billion a year (2008 projection from http://www.restaurant.org/), each player in the pool takes significant losses throughout the year.

REDUCE LOSS:
The human factor is one of the primary reasons that restaurants experience financial losses. Don’t get me wrong, I don’t want to necessarily spark more self-serve restaurants nor do I want to be served by mechanical robots when I dine out. Of course, human error accounts for some stock depletion, especially considering 13.1 million employees are working in the industry. Over or under-cooked steaks get thrown out and often “comped” off the bill. Error is error and often accidental, but there is also something to be said about over-generosity too. For instance, bartenders are likely to “heavy pour” customers that tip well or are regulars. I am sure we have all received at least one free, unrecorded drink from a friendly bartender since hospitality industry experts estimate a near $7 billion loss due to “liquor shrinkage”. Well RFID tags are now helping restaurants keep their employees honest and within policy. With RFID tags placed in the liquor spout, liquor usage is monitored and tracked. This reduces or eliminates over-pours and keeps tabs on what is running low and needs to be restocked.

BETTER CONTROL/VISIBILITY:
I have known restaurants to have their liquor stored in fairly inaccessible places, like a basement. On a busy night, getting replacement stock can make a customer wait a bit too long for their drink. Using RFID tags on kegs and liquor spouts can alert bartenders, servers and/or managers of what is running low so they have plenty of time to restock without cutting into the customer’s experience.

ENHANCED CUSTOMER EXPERIENCE:
Customers have also enjoyed faster service and more accurate orders since some restaurants have installed a hand-held RFID order system. I have noticed this to be a trend for VIP sections offering “at-your-seat” service in many sports arenas. This RFID technology has also allowed consumers to utilize “contactless payment”, where they simply wave their pay card over reader. This technology also offers better identity protection. Identity theft is a huge concern and your credit information is most vulnerable when it is taken out of your site. Therefore, tableside payment via RFID systems brings an increased sense of security to your customers.

Faster, more accurate service as well as a safer and more convenient payment method – RFID technology is enhancing the customer experience across the hospitality industry.

RFID can enhance your profit margin as well as your customer’s experience too. Ask Dynamic Computer Corporation how or visit our website at www.dcc-online.com.

2008 Boston Marathon Enhanced by RFID Technology

On April 21, 2008, the legendary Boston Marathon launched more than 22, 000 runners on a 26 mile adventure…with a RFID device securely attached.

Given more than 25,000 runners actually registered for the event and the weather was predicted to hit 80 degrees, Marathon officials knew that a concise and effective method was required to ensure the integrity of the event remained in tact.

The RFID (radio frequency identification) device assigned to each entrant is approximately the size of a $.50 cent piece and is secured to their shoelaces, ankle strap or clipped to a wheelchair. The chip holds the contender’s registration information as well as tracks his/her progress through the event.

How Does RFID Benefit the Boston Marathon?

1. Accurate Statistical Data: gets collected and is available to necessary personnel in real-time (i.e. media, etc.)

2. Fraud Prevention: Ensures all participants finish the race by hitting each check point. No short-cuts allowed, especially when cash prizes are involved!

3. Crowd Participation: Not only can Marathon officials track a runner’s progress, but so can spectators by logging online or having alerts sent to a mobile device.

4. Participant Safety: Not only can medical information be stored on the RFID chip, but should a “lost” participant need to be found, the search area can be narrowed to specific check point zones.


How Does RFID Work for Marathons?

Because RFID tags only need to come in close proximity to the reader, most large marathons use “Antennae Mats”. These mats are laced with antennae equipment which reads the chip number and sends the corresponding runner information to the data device, including the time at which the data was sent. Many RFID systems use antennae devices on either side of an entry or exit; I suspect the mats are used in large marathons due to the extremely heavy congestion at a starting line. Runners that may be trapped in the middle of the crowd still get timed since their device sparks upon stepping on the mat.

RFID Technology has been a favorable enhancement to large events, including marathons. Could it be a welcomed revolution to your business?

Feel Free to contact Dynamic Computer Corporation with any RFID questions.