THE DEVELOPMENT OF WAREHOUSE MANAGEMENT SYSTEM BY RADIO FREQUENCY IDENTIFICATION (RFID) TECHNOLOGY: A CASE STUDY OF ELECTRIC APPLIANCE FACTORY

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1 THE DEVELOPMENT OF WAREHOUSE MANAGEMENT SYSTEM BY RADIO FREQUENCY IDENTIFICATION (RFID) TECHNOLOGY: A CASE STUDY OF ELECTRIC APPLIANCE FACTORY by Todsapon Shotikapatipat, Seksan Kuanune, and Prachuab Klomjit Department of Industrial Engineering and Management, Faculty of Engineering and Industrial Technology, Silpakorn University, Muang Nakornpathom, 73000, Thailand prachuab@su.ac.th ABSTRACT The objective of this study was to develop of warehouse management system by RFID (Radio Frequency Identification) technology in a case study of an electricity appliance factory. The study applied Microsoft Access Program to design the database and Microsoft Visual Basic Program to link between database and RFID Reader and to operate RFID Reader. The system evaluation used flow process chart to collect working process time, and the satisfaction of the people by using questionnaire. The result indicated that the total time decreased from seconds to seconds (44.82%), the operating procedures decreased from 21 steps into19 steps or 30.43% and accuracy of records increased from 88.08% to 96.03% for the program to correspond with demand of users. Moreover, to analyze time data from the statistical analysis (t-test), found statistically significant at the level of 95%. Furthermore, to analyze from the satisfaction assessment scale, showed that users were satisfied with the new system more than the old system. KEYWORDS Warehouse Management, RFID, Internal Logistics INTRODUCTION Warehouse management is a part of internal logistics in the supply chain management, and production planning and control system that is important activity for industrial organization management to improve their productivity for the high competition in the present world market. The computer systems were used for this operation, but there were many operations that manually input by the operator. This manual operation consumed a number operations, time, and has some human error that was found in this sample factory. (Daniel and Bulfin, 1998; Russell and Taylor 2009) The RFID (Radio Frequency Identification) were introduced and developed in the sample factory to reduce the number of operations, time and human error. The RFID technology was similar to the barcode system that used the tag to identify the type and number of product, but it s more easily to detect the product by the application of radio frequency. (Ahson and Ilyas, 2008; Garfinkel and Rosenberg, 2006) The propose of this study was to study and to develop the RFID for warehouse management system in the sample factory. The benefit of this study was to be a guide for the organization that will apply the RFID in the future. OBJECTIVE 1) To study the receiving-requisition process of sample factory warehouse and to design the warehouse management by RFID technology. 2) To compare the old system and the new system that developing by RFID technology. METHOD AND EQUIPMENT The methods of study were categorized step by step as a group as follows:

2 Data collection of the warehouse management system of the sample factory The finished goods inventory management system of sample factory was studied and analyzed to find the problem and to develop the new system that apply the RFID technology. Problem analysis of the sample warehouse system The study found the main problems as follows: 1) There is only one operator to perform this operation and counting the product manually. 2) There is some error of the receiving-requisition data. 3) There is some lost of the receiving-requisition document. Database management system preparation The database system has 8 steps for designing as shown in the figure 1. (K. Laudon and J. Loudon, 2002; Geoige and Maracas, 2003) FIGURE 1 THE PROCEDURE OF DATABASE DESIGN 1. Definition of the data base design purpose 6. Setting the priority of each task 7. Setting the table relation 2. Design Procedure definition 5. Define the data field 8. Setting the function of each task 3. Data collection 4. Data Normalization Microsoft Visual Basic 6.0 programming preparation The Microsoft Visual Basic 6.0 was provided for programming to communicate between RFID reader and database. (Smith and Amundsen, 1999) Microsoft Access Database management system design The structures of Microsoft Access were divided into 5 parts as follows: (Campbell, 1994) 1) Table was used to storage the data. 2) Query was used to link the data between tables by the main field of each table. 3) Form was used for communicating with the user to see or manage the data. 4) Report was used for present the output in the printing format. 5) Macro and code were used for controlling the command that link among table, query, form and report. Program testing by barcode system The testing of the developed database system began with the barcode system to find the program error and correcting because it was easy to operation like a keyboard. RFID data acquisition by Microsoft Visual Basic 6.0 After testing the developed database by barcode system, Microsoft Visual Basic 6.0 was used for developing program to link or interface between RFID reader and database. Implement the RFID set at the sample factory The RFID system was actual testing at the sample factory for correcting at first time and then implement for actual running as the figure 2.

3 FIGURE 2 RFID READER IN THE SAMPLE FACTORY Data collection at the sample factory The collection of actual data at the sample factory was focus at the finished goods warehouse. Evaluation The system was evaluated by compare with the old system (Microsoft Excel). The key performance index (KPI) of this study was number of operation, time of operation, number of error, and user satisfaction. The population and sample The population and samples this study is ballast products at the sample factory. Equipment and technique 1) RFID Set was included: (Ahson and Ilyas, 2008; Garfinkel and Rosenberg, 2006) 1.1) RFID Reader: Embedded Antenna Model, the operation frequency is MHz, the standard Tag is ISO Type B (U-Code, HSL), the operating range is 3 metre. FIGURE 3 EMBEDDED ANTENNA RFID 1.2) RFID Tag: HF (High Frequency), passive type, ISO standard, 1024 bit internal memory

4 FIGURE 4 HF RFID TAG, PASSIVE TYPE 2) The program was divided into 4 parts included: 2.1) Microsoft Access using for database management system 2.2) Microsoft Visual Basic 6.0, was used to link between RFID reader and database system. 3) The method of work study was used to collect the data. The tools were include: (Barnes, 1980; Niebel and Freivalds, 2002) 3.1) Flow Process Chart 3.2) Flow Diagram 3.3) Stop watch 3.4) Calculator 3.5) Digital camera 4) QC Tool: Pareto Diagram Data collection Data analysis The time study was collected data at the 95% of confidential interval with ±5% of error. The data was analyzed by statistical tools to evaluate the performance of the system at the 95% of confidential interval. The sample factory The sample electric appliance products company that made domestic and export product. The old procedures of sample warehouse system RESULTS The total number of operation procedure of the old warehouse system was 21 steps (11steps for receiving and 10 steps for requisition) and divided into 2 parts as follows: The procedure of product receiving (figure 5) 1) QC section sent the product that pass for quality check to the warehouse section. 2) The operator checked the number of product with the document before sent to the warehouse area. 3) The operator wrote the data to the form of warehouse section. 4) The operator moved the product to the warehouse storage area. 5) The operator input the data into the Microsoft Excel program. 6) The completed document was stored in the file. The procedure of product requisition 1) The warehouse section received the product requisition document from the sale section. 2) The operator checked the number of product in the warehouse. 3) The operator prepared the product for shipping. 4) The operator prepared the document for shipping. 5) The operator updated the data into the Microsoft Excel program. 6) The completed document was stored in the file.

5 FIGURE 5 THE FLW PROCESS CHART OF PRODUCT RECEIVING The RFID warehouse management system After the data of old system was analyzed, the RFID system was developed. The number of operation and time were reduced from the old system. The following figures are the sample of RFID system screens. FIGURE 6 STARTING SCREEN

6 FIGURE 7 RECEIVING-REQUISITION SCREEN FIGURE 8 DATABASE MAIN MENU ABC Company FIGURE 9 DATA FIELD UPDATE The number of operation and time of each step TABLE 1 THE NUMBER OF OPERATION AND TIME OF EACH STEP Topic Receive No. of Procedure Old New 11 7 Requisition Total Time (Sec) Old New The result in table 1 indicated that the total time decreased from seconds to seconds (44.82%), the operating procedures decreased from 21 steps into19 steps or 30.43%

7 The error the input data TABLE 2 THE ERROR OF THE OLD SYSTEM Type of Total No. of % of Error Error Operation Error Document Writing Computer Data Input Model Missing Total Total Error = 100% - %Error = 100% % = 88.08% TABLE 3 THE ERROR OF THE NEW SYSTEM Type of Error Total Operation No. of Error % of Error Document Writing Computer Data Input Model Missing Total Total Error = 100% - % Error = 100% % = 96.03% The result in table 2-3 indicated that the total accuracy of records increased from 88.08% to 96.03%. The statistical evaluation TABLE 4 TOTAL OPERATION TIME OF EACH SYSTEM No. Old System (Second) New System (Second) TOTAL 3, ,849.38

8 TABLE 5 THE RESULT OF STATISTICAL T-TEST Variable N Mean StDev SE Mean Old New Difference = mu (Old) - mu (New) Estimate for difference: % CI for difference: (147.00, ) T-Test of difference = 0 (vs not =): T-Value = P-Value = DF = 17 The result from table 5 indicated that the total time from the statistical analysis (t-test), found statistically significant difference at the level of 95%. The satisfaction assessment The satisfaction of system was evaluated by the 1-5 Score (Likert Scale) questionnaires (Rubin, 1994) in 5 topics by 5 users.. FIGURE 10 THE SATISFACTION COMPARISON BETWEEN OLD AND NEW SYSTEM The satisfaction comparison Appearance Format Data Input Display Processing Score. Old New The result from figure 10 showed that users were satisfied with the new system more than the old system. CONCLUSION The study applied Microsoft Access Program to design the database and Microsoft Visual Basic Program to link between database and RFID Reader and to operate RFID Reader. The system evaluation used flow process chart to collect working process time, and the satisfaction of the people by using questionnaire. The result indicated that the total time decreased from seconds to seconds (44.82%), the operating procedures decreased from 21 steps into19 steps or 30.43% and accuracy of records increased from 88.08% to 96.03% for the program to correspond with demand of users. Moreover, to analyze time data from the statistical analysis (t-test), found statistically significant at the level of 95%. Furthermore, to analyze from the satisfaction assessment scale, showed that users were satisfied with the new system more than the old system.

9 TABLE 6 SUMMARIZED DATA OF RESULT Topic Total Time (Sec) Total number of procedure % of Error Old system New System Difference % 96.03% 7.95% REFERENCES Ahson Syed, and Ilyas Mohammad, RFID handbook: applications, technology, security, and privacy, Boca Raton: CRC Press, Barnes Ralph M., Motion and time study design and measurement of work. New York, John Wiley & Sons, Campbell Mary, The Microsoft Access handbook, Publisher Berkeley, Calif.: Osborne McGraw-Hill, Daniel Sipper and Bulfin Robert L., JR. Production Planning, Control, and Integration. McGRAW-HILL International Editions Garfinkel Simson, and Rosenberg Beth, RFID: applications, security, and privacy, Upper Saddle River, N.J.: Addison- Wesley, Geoige G.E. and M. Maracas, Modern Data Warehouse Mining and Visualization, Pearson Education, Inc, Laudon Kenneth C., and Loudon Jane P., Management Information Systems, Prentice-Hall, Inc., Niebel B.W. and Freivalds A., Method Standard & Work Design, 11th Ed, McGraw-Hill, Smith Curtis, and Amundsen Michael C., Database Programming with VISUAL BASIC 6 in 21 days, Publisher New Delhi: Techmedia, Rubin, J., Handbook of Usability Testing: How to Plan, Design, and Conduct Effective Tests, John Wiley & Sons, INC., Toronto, Russell and Taylor, Operation Management along the Supply Chain, John Wiley and Sons, 2009.