RFID (Radio Frequency Identification) is a
big buzz word in today’s U.S. manufacturing/distribution supply chain. RFID
is an accurate automated method used for product tracking and
identification. The information contained in a RFID chip (or tag) can be
used to identify or locate specific tangible products within its allowed
proximity.
How Does It Work?
RFID consists of a programmable chip that attaches to a product in some
form. The chip can be attached to a tangible product by way of label or tag,
or it can be capsulated. The chip stores data and uses radio waves to
transmit data information in a manner that is very similar to cell phone
towers.
Two types of tags exist: active and
passive. Active tags use an internal power source (battery) to continually
send radio waves that reach out for a connection. With Passive tags, the
energy is transferred from the reader to the RFID chip to activate the chip
without the use of a battery.
RFID tags are attached to an antenna on an
inlay, which in turn, is attached to the blank label on the adhesive side.
The chip is given a number assigned from each company’s software - a number
unique from any other. The printer then encodes the chip as the label comes
out of the printer. Currently, this process of programming the chip has
achieved an extremely high success rate.
RFID printers now have advanced to
print-and-apply automation systems on assembly lines, which are used for
high volume production or in instances where automation without human
intervention is desired. The ‘read rate’ for each product traveling down a
conveyor line or on a skid is 100 tags per second, moving at a rate of 10
mph.
Additionally, an RFID programmed label now
exists that can be imprinted with information to be read by humans. For
example, the printed label is put on a case, which then is placed on a skid;
the cases will then be put on a skid and one skid label will be applied to
the skid. Now every case on the skid is related to the one skid label and
thus, a relationship has been established.
Let’s break this relationship down to
something we all understand very well - our own social security number – a
number unique to each and every one of us. Recently, the population of the
United States was reported at three hundred million – that’s three hundred
million unique social security numbers. In our example, RFID works the same
way, with case labels being related to the skid label. RFID is a series of
relationships by unique numbers.
Essentially, this is how RFID, as we know
it, works today. While many people are under the concept that RFID is
programming the micro chip itself with a lot of information, it’s really
just a series of relationships associated with one unique number.
Why RFID?
In today’s fast paced environment, manufacturing and supply chains are
always looking for bigger, better, and faster ways to stay competitive. RFID
automated data capturing devices can help give companies an edge in
inventory control, shipping, receiving, and tracking. The print and RFID
coding methods are extremely fast for production lines, especially with RFID
automated print-and-apply systems.
RFID will not replace the printing of
barcodes on on-demand printing systems, but the learning curve for
implementing data collection technology is already in place. Manufacturers
have been bar coding for years now and understand the process quite well.
RFID is already used in a number of different applications today, as
mandated by Wal-Mart and the Department of Defense. The mandate is at a case
and skid level for most suppliers. These mandates are just the beginning.
Other organizations such as Lowes, Home Depot, Target, and automotive
manufacturers soon will follow.
As a result of the implementation of RFID,
the industry will begin to see several changes. For instance, retailers
continually lose a percentage of sales due to out of stock items on the
shelf; but with RFID, the day will come when the shelves automatically will
communicate to the back of the store for someone to restock the product. In
addition, purchase orders will be generated to the manufacturers directly
from the store, eliminating the need for distribution centers. This will
become the trend for retail and, most likely, will move into other forms of
manufacturing and distribution as well.
Suppliers will benefit, too. Supply chain
centers will not have to hand scan product, since readers will be placed in
the plants to pick up radio waves; inventory control will be at a simple key
stroke; and suppliers will have the ability to know where their product is
at all times.
Have you ever had a customer not pay you
for the product you shipped to them? Think about how much time and money is
wasted in tracking that shipped product. Now RFID can help!
RFID technology allows manufacturers and
distributors to track your product, lift truck, and even the operator of the
lift truck. Readers can be installed at the dock door, along with cameras to
validate that the products were shipped. Manufacturers now can prove the
shipping discrepancy in their favor – providing proof that John Doe put the
product on the truck at this time, this day, and… as further evidence… they
can provide a picture of this happening. An advanced ship notice also can be
sent as a shipment leaves the dock. This is just one way to make RFID work
in your favor for a return on investment (ROI).
If you remember, bar coding started in
this same way. Wal-Mart, the Department of Defense, and automotive
manufactures wanted all of their suppliers to bar code products to meet
their requirements so they could keep track of specific items. The suppliers
turned the bar coding around and made the system work for themselves.
RFID will work with the same approach,
only with much faster implementation due to the fact that manufacturers and
suppliers already bar code products.
RFID and Manufacturing
We’ve talked about retailers. Now it’s time to talk about why
manufacturing companies will be using RFID in the very near future. As
mentioned earlier, RFID will provide a better handle on the inventory of
finished goods, as well as on raw materials.
Imagine having an RFID-ready warehouse and
trying to track a product that is being moved! You could know the lift truck
driver, which lift truck he was driving, which way he was going, what time
he was moving the product, what product, and where that driver put the
product.
Have you ever had problems finding product
in a warehouse? Let’s say, for instance, the warehouse is not RFID-ready.
Currently, you probably send a driver into the warehouse and the driver
starts moving skids around to find the product. Sound familiar? But, let’s
imagine instead that you are tagging the skid with a RFID tag for your
warehouse. Today, you can track the RFID tag with advanced scanning devices
that will pick up radio waves. Now the people going into the warehouse will
have the ability to find a particular product in a timely fashion.
Implementing RFID with Plastics
Manufacturing
In the business of plastic manufacturing, you may need to mold chips into
your parts for traceability. Today’s plastics industry is already molding in
overlays and membrane switches very successfully.
Molding the chips into plastic is a
process that will have to be worked out in your environment and with your
particular application. So how does a molder buy a system to get started?
One question that comes up frequently is, “Can I use my existing equipment?”
The answer is, “No, you will have to purchase a RFID printer.” The important
difference between what you have today and what you’ll need is that the RFID
coder is in the printer. The buying process for this technology will require
research. My number one suggestion is that you do not try to short-cut the
buying process. I realize that everyone has to cut costs to contend in this
competitive marketplace. However, as you enter into RFID technology, you
need someone to be accountable, and that would be the person or company that
you choose to implement the project.
I have already seen this happen. The buyer
bought labels from one supplier, printers from another, and software from
yet another… and nothing worked. The company had nowhere to turn to start
fixing problems. My recommendation would be to get the system running as a
first step and figure out how to use it. After this process takes place,
move into finding a good RFID label/ribbon supplier that will be responsible
for its product.
Start small and work your way up. Evaluate
your problem areas and try to find an RFID solution… or determine if RFID
even is the solution. It will take time to implement RFID technology - it is
very powerful and you will not be able to ‘flip a switch’ and watch it all
come together. It will be a process for anyone getting into it. However, the
time is now, because this technology will revolutionize supply chain
management, today and well into the future.
Al Wilson is president and CEO at Quest Service Labs. Quest Service
Labs is a leading hardware, software, integrator, sales, and service
organization. The company is RFID Certified by the following: LEXMARK, CTM,
SATO, Zebra, Datamax, Symbol, and PSC. For more information, contact Al
Wilson at (330) 405-0316 or visit
www.questservicelabs.com. |