entigral whitepaper 10 Success Factors for RFID Asset Tracking Deployments

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1 entigral whitepaper 10 Success Factors for RFID Asset Tracking Deployments

2 10 Success Factors for RFID Deployments How to maximize ROI on RFID asset tracking deployments RFID technology enabled factory automation delivers great promise for creating a business advantage in a world where the need for smart manufacturing is increasingly required to compete. Understanding how to evaluate, leverage, and deploy an RFID solution is instrumental to the success of a project and its return on investment. The following 10 Key Success Factors provide an outline for managers that are considering the use of RFID to improve manufacturing processes. 1. Focus on the outcomes. Rely on experts to design the solution. Knowing how sensor-based technology like RFID is used by inventory and asset tracking software systems is not a core knowledge requirement for typical manufacturing engineers or senior management. However, there are experts in RFID technologies who understand the relationship of these components and can help design a solution to meet your goals. It is the efficiency improvement and cost savings goals that should remain the domain of the manufacturing engineer generating ROI for senior management. Focus on process improvement and re-engineering and rely on the asset tracking technology experts to bring greater control to your efforts. Don t be afraid to include these experts on re-engineering based on their capabilities but own the outcome. 2. Pilot RFID use in an easy to deploy high success environment. Enabling RFID technology will bring greater efficiency to your processes. The best path is to start small, generating a proof-of-concept that can be expanded to more complex workflows. The overwhelming task of re-engineering factory automation or implementing a Manufacturing Execution System can deter you from even starting a project. Start with one challenge in your manufacturing chain or start with tracking an asset class that may deliver the greatest ROI on your efforts. High value items that may get lost or misplaced or items which cause exception handling in manufacturing processes are ideal candidates for asset tracking with RFID. 3. Choose the right sensors and encoding format for data collection. In today s manufacturing environments there are a significant variety of RFID tagging solutions and a plethora of factory automation sensors to help generate data for input into Manufacturing Execution Systems. No matter if you are implementing a cloud based or on premise manufacturing or inventory software solution, using the right sensors to generate the right type of information at the right time is critical to success. Employing Electronic Product Code (EPC) RFID standards provides a universal identifier to each asset that could ultimately be part of the Internet of Things. Keep in mind that someone else is tagging assets also! Adhering to EPC standards will eliminate contamination from 2

3 rogue tags and provide the proper design criteria for future expansion. Your RFID experts will provide guidance on proper sensor selection based on use, environment, and asset physics. 4. Deliver the right data to the right person at the right time. One of the advantages of Manufacturing Execution Systems is the ability to deliver timely information to those that can act on the information. Too often RFID asset tracking systems are created where the data is aggregated to those that can t make rapid adjustments or who can t use the data to make better management decisions. The design of the user interface, the presentation of information, and accessibility of data and reports are all key design criteria for any successful data acquisition solution. 5. Integrate system to disseminate data to the entire enterprise. Leveraging RFID technology for asset tracking is more useful if the data can be disseminated to the entire enterprise. This means that the data must reach your Manufacturing Execution System and supply chain software, as well as the inventory and financial management software systems. Common data integration protocols can alleviate much of the difficulty but knowing what information should be integrated with which system is critical to eventual success. Mapping data needs is as important as mapping process flows when implementing an RFID asset tracking application. 6. Choose a software platform that is flexible and scalable. Inventory and asset tracking software in the management of Manufacturing Execution Systems requires flexibility and scalability to meet the demands of unique processes and unique asset types across the enterprise. One of the reasons RFID technology has penetrated the retail market so effectively is High value items that may get lost or misplaced or items which cause exception handling in manufacturing processes are ideal candidates for asset tracking with RFID. 3

4 the general uniformity of retail inventory processes. However, RFID inventory systems in manufacturing must be very flexible because manufacturing workflows and business processes are so different from one manufacturer to the next. Implementing a simple cloud based or premise based software system may look easy but not fit your workflow chain. RFID Smart Manufacturing systems must include the ability to add logic variations to RFID asset tracking and inventory management processes. Look for systems where you can borrow from the success of previous installations and personalize to your business process. This lowers your integration costs and improves your chances of success. 7. Use RFID technology for what it is good for. Looking for the low hanging fruit in ROI of RFID technology will lead you directly to managing high value critical assets where the visibility of knowing everything about the location, type, and quality of these assets will bring immediate cost savings. Improving the quality of your products in the manufacturing process can also be easy, but a bit more difficult to calculate the ROI. Value can be found in lower production costs, reduced re-work items, fewer overall manufacturing processes by not having to deal with a variety of exceptions, and greater customer satisfaction ratings. As with any successful project it is important to identify the ROI opportunity, assess the requirements, plan the system, implement the solution, and always communicate with everyone affected. 8. Don t surrender to minor obstacles stay the course. From manufacturing inventory software to RFID based asset tracking to a full blown Manufacturing Execution System nothing will predict success more than your willingness to know the ROI and stick with the implementation. Too many well intentioned starts in factory automation have been abandoned half Identify the ROI opportunity, assess the requirements, plan the system, implement the solution, and communicate with everyone affected. 4

5 way through implementation. Your processes are going to change. Your data requirements are going to change. Your factory automation systems will change. RFID technology will yield benefits beyond the costs of change and improve your company s competitive advantage with Smart Manufacturing. 9. Gain buy-in from user and executive sponsors. Successful RFID deployment is dependent on acceptance by multiple layers within your organization. Users of the system will need full understanding of the work flow improvements and the data available to make continuous process improvement. An easy to use RFID software system where personalized software enhances workflow, provides easy acceptance. Manufacturing personnel must be a part of the larger community of data constituents. Always remember that what occurs on the factory floor directly impacts all the systems in a company. Managers who oversee the business inventory software purchases will need to have a clear understanding of the RFID implementation and its objectives. Executive level sponsorship will help gain acceptance and provide a clear path for enterprise integration. Getting buy-in from the business managers in your organization will go a long way to helping you manage through the inevitable setbacks to any systems deployment. 10. Avoid common pitfalls by recognizing RFIDs limitations. Implementing RFID asset tracking software and strategic deployment of sensor-based technology to improve inventory management can deliver greater returns for many manufacturing companies. But you must first understand RFID s technology limitations. Involving experienced experts in RFID deployments can help realize the strengths of RFID in real world RFID applications, while avoiding the common pitfalls that come from misusing RFID as a barcode replacement. traxware connects things to processes 5

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