RFID Asset Tracking

RFID Asset Tracking
5 Keys to Success
Delivering Real-time
Visibility to the
Enterprise
© 2011 OATSystems
RFID Asset Tracking: Keys to Success
RFID and RTLS are being widely deployed in multiple industries for asset tracking applications, within
manufacturing facilities, distribution centers, trailer yards, maintenance depots and elsewhere across the
value chain.
Real-Time Asset Tracking projects vary based on the assets themselves, the environment in which they are
tracked and the business processes and corporate functions they impact. Over the past decade,
OATSystems has deployed hundreds of RFID and RTLS applications, tracking assets as diverse as
electronic components, aircraft fuselage, agricultural seeds, tissue samples, reusable transport items,
controlled pharmaceuticals, industrial machinery, lab equipment and storage trailers.
As a result of this extensive experience, we have learned that regardless of industry, company and business
function, successful RFID Asset Tracking implementations share five common characteristics. This guide
details these “Five Keys” with process-specific examples and case studies.
The 5 Keys…
Start with a High-Impact Business Process Streamlining a core business
process with RFID will yield a faster, more measurable return on investment than an
isolated pilot program. Start where it really matters.
Align with Organizational Objectives. Improving customer service, quality or
performance metrics (e.g. Lean Manufacturing, Six Sigma projects) will drive
internal support, and often funding, for your project.
Enable Enterprise Systems . Enhancing ERP, Program Management, MMS, MRO,
Asset Management systems and other critical enterprise systems with real-time data
and validation processes can yield greater advantages, in less time, than a standalone
RFID system.
Don’t Reinvent the Wheel. Using a proven RFID Auto-ID application platform,
making use of packaged solutions and working with a seasoned partner can shave
months off your project plan.
Prepare to Succeed. Success leads to more success, so don’t risk being stuck
with throw-away technology when you’re tasked with a broader charter later in the
game.
Note: Although RFID and RTLS are referred to specifically within this
document, UWB, Wi-Fi, along with other Auto-ID and sensor technologies
may be used interchangeably for real-time enabled applications.
©2011 OATSystems
Start with a High-Impact Business Process.
A high-impact business case is a clearly-defined operational process that is directly related to the bottom
line. Automating a high impact business process (especially one that is manual, costly and inefficient) with
RFID or RTLS increases not just asset visibility, but the visibility of the project itself – which can lead to more
corporate resources and support for your deployment. So while it may be appealing to “experiment” with
RFID technology in an isolated area of your operation, this may not be the best approach.
The following table lists some of the most common cross-industry business processes for RFID Asset
Tracking:
COMMON HIGH IMPACT BUSINESS CASES – CROSS INDUSTRY
Business
Process:
Functional
Area(s):
Assets
Tracked:
Why RFID / RTLS
Asset Tracking?:
High-Impact
Performance Metrics:
TOOL
TRACKING
 Manufacturing
 Aftermarket
 Specialized
 High value assets, high
 Significant reduction in
Service
 Field
Operations
Equipment
 Tooling





duplicate inventory & spares
 Less rework, fewer quality
issues due to out-of-spec
tools
 Reduction in regulatory fines
for missing right-to-use tools
 Reduced labor costs for
locating tools, FOD
prevention
CHAIN-OFCUSTODY
TRACKING
 Logistics
 Transportation
 Critical Shipments
 Hazardous Cargo
 Labor-intensive transport
 Faster revenue recognition,
& customs paperwork,
confirmation processes
 Multiple logistics
providers
 Risk of material breach,
mishandling
 Risk of regulatory fines
fewer disputes
 Streamlined customs
clearance,
 Lower documentation costs
 Improved customer
satisfaction
WORK-INPROCESS
TRACKING
 Manufacturing





 High level of working
 Reduction in non-performing
WORK
ORDER
TRACKING
©2011 OATSystems
cost of capital
Specialized assets are
difficult to source/replace
Out-of-Spec tools can
compromise quality and
safety
High cost/potential risk of
tracking right-to-use tools
Risk of FOD (Foreign
Object Debris)
High penalties for
inefficiency, noncompliance
Components
Subassemblies
Batch #s
Custom Orders
Reusable
Containers
 Reverse Logistics
capital allocated to “inprocess” manufacturing
 Quality initiatives require
higher visibility into each
manufacturing step
 High level of rework,
make-goods impacting
profitability
 Labor costs for locating
missing orders,
expediting shipments
inventory and assets
 Reduction in scrap material,
due to closer tracking of
batches/expiration dates
 Reduction in rework,
make-goods
 Reduction in labor costs
for exception handling,
transportation costs for
expedited shipments
(cont.)
Start with a High-Impact Business Process.
The following table lists some of the most common industryspecific business processes for RFID Asset Tracking.
INDUSTRY-SPECIFIC BUSINESS CASES
Industry:
Asset Tracking Applications:
AEROSPACE
 Tool/Tooling Tracking
 ATA 2000 Part Marking
 Audit and Attestation
AUTOMOTIVE
 Warranty/Recall Tracking
 Kanban Management
 Line-Side Replenishment
CHEMICALS
 Hazardous Material Tracking
 Container Pedigree
 Batch Tracking
CONSUMER PRODUCTS
 Warranty/Recall Tracking
 Batch Tracking
DEFENSE
 Tool/Tooling Tracking
 Kitting and Shipping
INDUSTRIAL MACHINERY
 WIP, Whole Goods Tracking
 Kitting and Shipping
 Tooling Tracking
MEDICAL DEVICES/
BIOTECH
 Clean Room Tracking
 Indirect Material Tracking
 Clean Manufacturing WIP
OIL & GAS
 Equipment Tracking
 Indirect Material Tracking
 Personnel Tracking
PHARMACEUTICALS
 Batch Tracking
 e-Pedigree
 Controlled Substance Tracking
Start with Business Processes That Are:
 Well-defined
 Labor-intensive
 Directly related to
performance metrics
©2011 OATSystems
CASE STUDY:
WORK-IN-PROCESS
TRACKING
A Heavy Equipment
Manufacturer had significant
inventory of “95% complete”
orders. Missing a single part
or requiring rework, these
orders were not contributing
to revenue, but tying up
inventory, warehouse space
and working capital along
with customer orders.
The company worked with
OAT to RFID-enable its SAP
ERP system, gaining up-tothe minute visibility into
Work-in-Process, materials
inventory and finished goods.
As a result, errors and rework
have virtually been
eliminated, while reducing
labor and inventory costs and
speeding delivery to
customers.
Align with Organizational Objectives.
The more measurable the scope, and the more tangible the
results, the more support your project will receive. An RFID
pilot in the back room could be considered a cost center, while
a project that improves customer service, quality or cost
efficiency can be a business driver that supports revenue
and/or profitability.
Many of these business drivers are close at hand.
Organizations measure core business metrics on a regular
basis, often through a Six Sigma or Lean Manufacturing
initiative. Aligning your RFID project with these metrics can
provide additional internal support while enabling you to show
the tangible results of real-time asset tracking in the context of
the overall business.
As an additional benefit, these initiatives may be well-funded because they directly support corporate
objectives, serving as an additional budgetary source for RFID projects.
COMMON OBJECTIVES BY BUSINESS FUNCTION
Function:
Business Objectives:
EXECUTIVE TEAM
 Predictable Earnings
 Higher Profitability through Cost Control
SIX SIGMA/
LEAN MANUFACTURING
SUPPLY CHAIN / SOURCING / LOGISTICS
MANUFACTURING
FIELD SERVICE / MAINTENANCE
ASSET MANAGEMENT















Zero Defects
Reduction in Excess Inventory
Lower Cost of Goods Sold
Reduced Sourcing Costs
Streamlined Documentation
Controlled Transportation Costs
Higher Throughput
On-Time Delivery
Reduced Dwell Times
More Efficient Inventory Utilization
Shorter Repair Times
Reduced Rework
Increased Parts Availability
Improved Asset Utilization
Lowered Operational Risk
Align Your RFID Project with:
 Business Objectives
 Six Sigma / LEAN
Initiatives
 Performance Metrics
©2011 OATSystems
Enable Enterprise Systems.
ERP, WMS, MRO, Field Service Management and
Asset Management systems are the lifeblood of many
manufacturing and logistics operations. RFID and
RTLS-enabling enterprise systems incorporates realtime production and delivery status into day-to-day
business metrics. This enables manufacturers,
logistics and service providers to uncover and
address process errors before they impact production
schedules, product quality or customer deliveries.
Enterprise systems can also provide a built-in process
framework for your RFID project, reducing
deployment time and decreasing time to value.
The following table includes common integration scenarios:
Integrating RFID with Enterprise Systems
ERP
Enterprise Resource Planning
MES
Manufacturing Execution
WMS
Warehouse Management
MRO
Maintenance & Repair Operations
MMS
Materials Management
Program Management
BAM
Business Activity Monitoring
EAM
Enterprise Asset Management
Field Service Management
©2011 OATSystems



















Verify physical components against bill of materials
Trigger inventory replenishment
Locate missing parts & equipment
Flag and expedite critical work orders
Track physical products at each stage of testing and assembly
Confirm custom orders match manifest
Locate missing parts & equipment
Verify manifest and destination for outgoing shipments
Prevent mis-shipments with visual/audible alarms
Track finished goods inventory and location
Verify parts & equipment against service order
Monitor installation and maintenance history
Locate recalled or expired service parts
Verify parts & equipment against service order
Monitor installation and maintenance history
Locate recalled or expired service parts
Verify parts & equipment against service order
Monitor installation and maintenance history
Locate recalled or expired service parts
Automatically update dashboards to reflect real-time:
 Physical inventory levels
 Orders shipped
 Operational efficiency
 Instantly locate physical assets across the value chain
 Monitor service maintenance history
 Manage compliance and audit requirements
 Confirm parts inventory requirements, truck manifests for service orders
 Monitor tool usage and maintenance history
 Locate recalled or expired service parts
(cont.)
Enable Enterprise Systems.
The example below illustrates a check-in/check-out process at a tool store. RFID is used to associate
specialized tool requirements, work order and operator information at the point-of-use, while validating that
information against WIP tracking and Maintenance schedule information in enterprise systems.
In this case, the RFID-enabled system provides an alert to the service technician that the tool being checked
out is due for calibration (therefore avoiding potential quality and safety issues from using an out-of-spec tool).
EXAMPLE: AN RFID-ENABLED TOOL TRACKING PROCESS
ERP / Program Management System
Get Work Order
Details from ERP /
MMS / MRO
System
Validate
Against
Maintenance
Schedule
Update
with New
Location
Status
Update Work
Order Status
OAT Tool Tracking
Get Specialized
Tool
Requirements
& Location
Check Out
Tool at
Store #3
Read Tool
Information
Send Service
Details
Operator
Feedback
!
Alert!
Tool#
16554005
is due for
scheduled
calibration
Auto-ID Devices & Sensors
RTLS, Wi-Fi, Barcode, Active/Passive RFID, Stack Lights, Alarms…
CASE STUDY:
KITTING & SHIPPING
A Specialized Aircraft Manufacturer
worked with OAT to track
subassemblies and whole goods
being shipped directly to customers,
integrated with their existing ERP
system. This resulted in reduced
costs for outbound shipping and
reduced labor costs for preparing
customs paperwork.
©2011 OATSystems
Enrich Enterprise Systems with:
 Richer Asset
Movement Data
 Real-Time Alerts
 Exception Handing
Don’t Reinvent the Wheel.
RFID middleware, applications, readers and tags have matured significantly over the past several years. In
all likelihood, the business challenge you are facing has been faced before and resolved. Ruggedized tags
and readers have simplified the implementation of RFID in harsh, industrial environments. Sensor data
management (tracking 1000s of asset movements per day) and enterprise systems integration have been
streamlined with sophisticated RFID middleware platforms. Experienced solution providers have
implemented dozens of RFID projects in similar environments to your own.
Using proven hardware, a proven RFID application platform and working with a seasoned partner can shave
months or more off your project plan.
The diagram below illustrates the benefits of using an RFID application platform to process real-time events
locally and to add business context to high volumes of sensor data.
HOW RFID MIDDLEWARE PLATFORMS MANAGE REAL-TIME SENSOR DATA
Packaged RFID and RTLS applications can simplify deployment even further. Choosing a configurable
application that is built with a proven RFID platform will enable your project to easily scale and adapt as
your business needs evolve.
The most common RFID/RTLS packaged applications for manufacturing, logistics and service
operations are listed below:





©2011 OATSystems
Tool Tracking
Container (RTI) Tracking
Kitting
Work Order Tracking
Line-Side Replenishment





Work-in-Process Tracking
Indirect Material Tracking
ATA 2000 Part Marking
Shipping & Receiving
Whole Goods Tracking





Yard Management
IT Asset Tracking
Equipment/Lab Tracking
Cycle Counting
Directed Put-away
(cont.)
Don’t Reinvent the Wheel.
With more companies adopting RFID technology, there’s no need to start from scratch with custom
deployment, or a protracted tag research project. Configurable RFID Application Platforms often come
with pre-packaged workflows which can be easily tailored to meet your needs.
EXAMPLE: RFID-ENABLED WORK ORDER TRACKING PROCESS
Receive Work
Order #, Bill of
Materials
Validate
Components in
ERP System
Receive
Order Data &
Create Work
Instructions for
the Line Items
Work Order Data Fields:
 Order #
 Line Items
 Quantity
 Customer #
 Operator
 Tooling Requirements
OK?
Send Work
Order Data to
Station 005
Allocate
Inventory
Start Assembly
at Station 005
Alert Operator
with Stack Light
Send New Order
Information to
Work-Instruction
Management,
Including Current
Locations of Items
Required by Order &
Available Quantities
Update Work
Order Status in
ERP System
CASE STUDY:
BATCH TRACKING
A Process Manufacturer was
experiencing errors on a new product
line: Product formulations with specific
batch # and lot # attributes were often
blended incorrectly, resulting in high
volumes of scrap material.
The company worked with OAT to track
raw materials and finished product
through manufacturing to distribution
and to customers, integrated with its
existing ERP system.
The resulting system provides
automated tracking of raw materials
and finished product, significantly
reducing scrap material and increasing
warehouse efficiency.
©2011 OATSystems
Jump-Start Your RFID Project with:
 Packaged Applications
 RFID Middleware
 Customizable
Workflows
Prepare to Succeed.
Success leads to more success, so make sure you’re not stuck with throw-away technology when you’re
tasked with a broader charter. Ensure that you’ve built in plenty of room for growth, with an application
platform that can scale to the enterprise, and with configurable software that can be easily adapted to
different use cases, business units and facilities.
The following diagram illustrates how RFID Asset Tracking can provide increasing value to the organization.
RFID projects are often justified based on the benefits of locating a critical asset (Step 1). Once the project
is implemented, however, additional benefits based on exception handling and error-proofing (Step 2),
associating data with key business metrics (Step 3) and continuous improvement (Step 4) are often realized
as well. Preparing at the outset for this level of visibility and value can help ensure a scalable solution that
fits the enterprise’s needs in the long run.
ASSET TRACKING: GROWING THE VALUE PROPOSITION
Example: Using a Tool Tracking Business Case
 How can we
do it better
next time?
 Continuous
improvement
metrics
Assembly status
Program status
Order status
Working capital allocation
4. What Could
the Asset Be
Doing?
3. What is the
Asset
Producing?
2. What is the
Asset Doing?
1. Where is the
Asset?




 Haz Mat requirements
 Calibration status
 VMI, Right-of-Use
 Critical customer order/
service due
 Imminent auditor visit
 Potential production delay
Future-Proof Your RFID Project with:
 Scalability
 Flexibility
 Reporting Metrics
©2011 OATSystems
About OATSystems.
OATSystems has helped over 100 companies take advantage of RFID and RTLS to streamline operations, enhance
customer satisfaction and increase bottom line results. OAT is the recognized Auto-ID solution leader with software
that empowers businesses to achieve a competitive advantage and ROI from RFID & RTLS. As a pioneer in the
development of Auto-ID technology, OAT has been setting the standard in RFID over the last decade and has
provided RFID & RTLS-enabled solutions to leading companies such as Airbus, Monsanto, Parker Hannifin, Chevron,
Kimberly-Clark, Cephalon, Shell and others. A division of Checkpoint Systems (NYSE:CKP), OATSystems is located
in Waltham, MA, and has a development office in Bangalore, India and various direct sales offices and resellers
around the globe.
Contact OATSystems today at www.oatsystems.com or 781-907-6100 and get ready to take control of your
operations.
For specific information on Asset Tracking applications , visit www.oatsystems.com/asset_tracking/index.php
Corporate Office:
OATSystems
309 Waverley Oaks Road,
Waltham, MA 02452
USA
781-907-6100
www.oatsystems.com
©2011 OATSystems