Introduction
Business Problem for the Automotive Industry
The Automotive Industry has been on the receiving end on the major technological advancements that seek to improve efficiency and productivity. The use of the advanced technologies in the RFID industry forms the basis for automation in the entire work process within the industry. The use of RFID in automotive sector dates back to the key fob and placing chips on the chassis. At present, the relationship dwells on how to integrate RFID in the factory and use it for container management and yard management. The best news for the Industry is that the return on Investment on RFID is robust and quick in some applications. The use of RFID in the automotive industry has a well-established structure in major companies like Honda Italia that integrated RFID on its operations.
RFID integration in the automotive Industry helps to address several issues that hindered efficiency in the work. In the global economy, the levels of competition in the automotive industry are high. Thus, the use of lean manufacturing techniques is a necessary consideration to maintain competitiveness. Initially, companies used to wasteful buffer inventories and relied on in-time parts delivery systems. It put tremendous pressure on the managers who have to keep track of the parts moving in real time from the entry dock to the storage facilities and the manufacturing line. Also, the company had to track the assets of the tools, the set-up materials, and the employees. The inability of the company to keep track of the essential tools, parts, and the personnel results in inefficiency or eventual shut down of the entire production line (Gwon, Huang & Hong, 2011). The problems result in disruption in the production line and losses in terms of income per hour.
Business justification
As a solution to the problem and also the increased pressure on the competition, there is a trend towards consolidation among the main brands and the suppliers. Thus, it is necessary to have increased integration across the entire supply chain in the automotive industry. The solution to the issues raised is having RFID technology in the automotive technology to help in managing the inventory as well as the entire supply chain. The use of RFID in varied industries other than the automotive industry leads to significant increase in the efficiency of the work done (Gwon, Huang & Hong, 2011). The benefits justify its use in the automotive industry.
An overview of the RFID system
Basics of the RFID components
RFID is the radio frequency identification technology that uses wireless communication in the form of radio waves to identify and track objects within its range (Karjoth & Moskowitz, 2005). The form of technology is an improvement of the barcoding concept by digitizing it to fit the modern world requirements. The use of RFID allows unique identification of an individual item without having a direct line of sight and also identification of individual items beyond their product type. It can allow the identification of numerous items simultaneously within a vicinity of a few centimetres to several metres. The technology uses readers and tags that facilitate communication via radio. The tags are small in size and require little power to store information and exchange data between the readers. Thus, the application of the tags is easy and cheap to different products that the industry likes to identify or keep track (Chabrow, 2005).
Advances in RFID used in the automotive industry
An RFID device has several advances that place it above other technologies. The device does not need to be in a precise position about the scanner. Thus, the line of sight is not an issue any longer. For the automotive industry, RFID is not just a replacement of the barcode technology. It is a strategic and relevant technology for the supply chain management. The use of RFID technology in the automotive industry has been in existence for many years in the improvement of the local processes like production control and asset management.
The use of the RFID technology in the automotive technology resulted in increased efficiency and competitiveness thereby promoting supply chain integration. The technology allows source tagging in which the manufacturer can have the second or third-tier supplier tag components before shipping. Thus, it enhances automation in which the identification of the actual goods occurs and also a comparison of the data in the ERP system (Pérez, Seco, et. al, 2010).
The other advancement in the use of RFID is staging which is a core principle of lean manufacturing. It helps to correct mistakes when and where they occur. The entire staging floor is visible as well as the dock doors. Thus, the mistakes made by the employees in the staging line cannot proceed to the dock door. The technology also allows easy management of the re-working on the cars that come off the assembly line. Thus, no employees waste time to search for it. The work in process capability is also a major contribution to the RFID technology in the automotive industry. The work in process and just in time production helps to minimize inefficiency and wastage by optimizing production (The RFID transformation, 2005).
Automotive Industry Standards for RFID technology
In the global business environment, standards in the tools and technologies used are a major requirement. Interoperability in the information and the communication technologies is an important requirement that applies to the use of RFID. Thus, the RFID standards are a major issue for the Industry. They enhance flexibility in the use of the technology in different industries that promote automation and easy communication between the suppliers and the manufacturers. The RFID standards in use include the RF protocol, data-on-tag structures among others. However, there are different standards that coexist in parallel. Also different actors with diverse interests have an influence on the standardization process (Thiesse, Floerkemeier, Harrison, Michahelles & Roduner, 2009).
Two initiatives exist to address the issue of RFID standardization. ISO adopts across industry perspective with a generic approach while EPC Global focuses on the high-end users whose needs adopt a more application-specific approach. The electronic product code (EPC) is a numbering scheme for the designation of physical goods that ensure interoperability of the technology used in the supply chain. EPC also has specifications for several protocol standards for communicating between the transponders, scanner hardware and information systems (Thiesse, Floerkemeier, Harrison, Michahelles & Roduner, 2009).
ISO’s RFID standards are generic and focus on the air interface. They cover the areas of technology (ISO 18000 series), data content (ISO 15418), conformance and performance (ISO 18046), and the application standards (1SO 10374). Thus, ISO RFID standards are more application-independent in respect to processes and industry specific-context (Thiesse, Floerkemeier, Harrison, Michahelles & Roduner, 2009).
Benefits and disadvantages of the RFID system
The use of RFID technology in the automotive industry has several advantages. The technology results in improved control of materials in the production line and streamlining the inbound logistics. RFID devices also enable easy tracking and distribution of the finished vehicles from the industry. The use of RFID tags is widespread in identifying different assets that include the returnable transit items, prototype parts, the car bodies and the finished vehicles.
The technology reduces the shipping errors previously witnessed in the automotive industry. It also enhances the security and visibility of goods within the supply chain. Another benefit costs reduction through the possibility of minimised buffer inventories and enhanced inventory turnover. Thus, there are more accurate inventories. RFID technology avails the right parts and components for the just-in-time production. RFID tags result in improved utilization of assets and resources by minimizing the lag times and eliminating wastage or reworking on a vehicle. The use of RFID tags is a major contributor to accurate component-level traceability that improves the quality control capability (Domdouzis, Kumar, & Anumba, 2007).
RFID technology has the capability of enhancing and protecting the lives of the consumers and revolutionizes the way companies conduct business operations. The technology allows flexibility and auto-identification and can monitor the physical world automatically and accurately (Gwon, Huang & Hong, 2011). RFID tells what an object is, where it is, and its condition in the industry.
Despite the many benefits associated with the use of RFID technology, it faces a few disadvantages. It is an expensive technology for many applications in comparison to other tracking and identification methods like barcodes. The technology does not work for the liquid and metal products since their surfaces reflect the radio waves affecting readability. They are also subject to interference and most if the RFID signal frequencies across the globe have not standards. RFID technology is invasive, and consumers have a concern about privacy.
Security concerns with the RFID system
Many consumers using products tagged with the RFID technology raise concerns about the invasion of privacy. At the industry level, RFID tags are impossible to copy thereby enhancing the security of all the tagged items. However, to the users of the products privacy issues loom as the biggest threat to the success of RFID. The current RFID protocols offer the most optimal performance between the readers and tags but neglect the privacy concerns of the consumer. The most items affected are the common items that have the tracker even after purchase. The main problem in the issue is a lack of information on how to turn off the tags after purchasing an item (Suprina, 2005).
The RFID system assures the companies of security of all the products under its tracking. Thus, it prevents theft of any items stored in its database. The application of RFID technology in the automotive industry is a major boost to the security of all the items and tools used in the production line. However, it poses an issue to the privacy of the consumers (Suprina, 2005).
Impact of implementation
Description of administrative procedures including purchasing and Installing
The integration of the RFID technology into the existing practices requires a considerable investment from the organisations. Thus, the process of implementing the technology affects all facets of the organization and has high-cost implications. A large push for the RFID installation in the industry comes from the retailers who force manufacturers to absorb the additional associated with tagging items and processing the information they require. Thus, many manufacturers struggle to realise the short-term benefits from upgrading to the RFID technology.
Following the pressure from the consumers, the automotive industry has to comply by installing the RFID systems for use in supply chain management. The administrative procedures involved include conducting a feasibility study on the viability of the technology by engaging with all the major stakeholders. Next is establishing a task force to steer ahead the activities of planning, design, implementing, and maintenance of the system. Next is seeking for the necessary resources to acquire the technology and prepare the company for its installation. The manual processes change to automation in which the personnel have to undergo the required training on the use of the RFID technology.
Human and Process Changes
The implementation of the RFID systems in the automotive industry has a big impact on the personnel and other processes. The technology helps to automate several operations initially completed manually. As a result, most of the personnel working in the store rooms have to pave the way for the technology. The activities of locating tools and physically recording the entry and exit of certain products become unnecessary (Want, 2004).
The manual search and identification of the materials use in the industry is overcome by the use of tags and readers. The control of the inventory is automatic thereby reducing the work done by the company employees. There is reduced time in the completion of orders thereby enhancing the efficiency. It is due to the reduced inventory shrinkage, order start-up times, and fast material identification (Want, 2004).
Changes in the organisation policies and Maintenance of the system
The automotive industry undergoes several changes in the policies upon the implementation of the RFID technology. In some instances, the companies require establishing certain policies to aid in the implementation of the technology. The policies regard the security issues, mode of operation, maintenance, and safety. The policies regarding the security issues help to control the access and usability of the RFID technology in the industry. Thus, they enhance the security and safety of the users of the system and also the respective companies. The policies on the mode of operation explain the appropriate use of the RFID technology. Most of the activities involved in the implementation of the technology change and requires a change of the policies governing the method of operations in the industry (Domdouzis, Kumar & Anumba, 2007).
The successful implementation of the RFID technology in the automotive industry depends on the level of staff training. The human resource requires understanding how the system works and incorporating it in their day-to-day activities. It is also necessary to deploy support staff with skills and expertise in dealing with the system. The support helps in implementation and maintenance of the RFID technology.
Conclusion
The use of Radio Frequency Identification in the Industry is common for tagging and identifying the products used along the production line. RFID technology applies in the automotive industry in the management of the supply chain. The company can keep track of its tools, materials, personnel and the finished products throughout the production process. The technology has several advantages for the industry including increased efficiency though raises concerns on the privacy and security issues to the customers. However, its benefits in real time tracking and inventory management outweigh the concerns. The implementation of the system has the effect of changing the human resources and also the policies on the operations of the company. Staff training is an essential aspect of the implementation process of the RFID technology.
References
Chabrow, E. (2005). Wireless Revs UP Vehicle Production. InformationWeek, (1056), 100.
Gwon, S., Oh, S., Huang, N., & Hong, S. (2011). Advanced RFID application for a mixed- product assembly line: International Journal Of Advanced Manufacturing Technology, 56(1-4), 377-386. doi:10.1007/s00170-011-3155-3
K. Domdouzis, B. Kumar, C. Anumba, (2007) Radio-frequency identification (RFID) applications: a brief introduction”, Advanced Engineering Informatics, Vol.21, No.4; 350–355
Karjoth, G., & Moskowitz, P. A. (2005). Disabling RFID tags with visible confirmation: clipped tags are silenced: In Proceedings of the 2005 ACM Workshop on Privacy in the electronic society (pp. 27-30). ACM.
Pérez, J., Seco, F., Milanés, V., Jiménez, A., Díaz, J. C., & de Pedro, T. (2010) An RFID- Based Intelligent Vehicle Speed Controller Using Active Traffic Signals. Sensors (14248220), 10(6), 5872-5887. doi:10.3390/s100605872
Suprina D. (2005) Security Risks with RFID,
The RFID transformation (2005) Industrial Engineer: IE, 37(11), 12.
Thiesse, F., Floerkemeier, C., Harrison, M., Michahelles, F., & Roduner, C. (2009) Technology, standards, and real-world deployments of the EPC network: Institute of Electrical and Electronics Engineers
Want, R. (2004). RFID: A Key to Automating Everything. Scientific American, 290(1), 56- 65.
Business Problem for the Automotive Industry
The Automotive Industry has been on the receiving end on the major technological advancements that seek to improve efficiency and productivity. The use of the advanced technologies in the RFID industry forms the basis for automation in the entire work process within the industry. The use of RFID in automotive sector dates back to the key fob and placing chips on the chassis. At present, the relationship dwells on how to integrate RFID in the factory and use it for container management and yard management. The best news for the Industry is that the return on Investment on RFID is robust and quick in some applications. The use of RFID in the automotive industry has a well-established structure in major companies like Honda Italia that integrated RFID on its operations.
Business justification
As a solution to the problem and also the increased pressure on the competition, there is a trend towards consolidation among the main brands and the suppliers. Thus, it is necessary to have increased integration across the entire supply chain in the automotive industry. The solution to the issues raised is having RFID technology in the automotive technology to help in managing the inventory as well as the entire supply chain. The use of RFID in varied industries other than the automotive industry leads to significant increase in the efficiency of the work done (Gwon, Huang & Hong, 2011). The benefits justify its use in the automotive industry.
An overview of the RFID system
Basics of the RFID components
RFID is the radio frequency identification technology that uses wireless communication in the form of radio waves to identify and track objects within its range (Karjoth & Moskowitz, 2005). The form of technology is an improvement of the barcoding concept by digitizing it to fit the modern world requirements. The use of RFID allows unique identification of an individual item without having a direct line of sight and also identification of individual items beyond their product type. It can allow the identification of numerous items simultaneously within a vicinity of a few centimetres to several metres. The technology uses readers and tags that facilitate communication via radio. The tags are small in size and require little power to store information and exchange data between the readers. Thus, the application of the tags is easy and cheap to different products that the industry likes to identify or keep track (Chabrow, 2005).
Advances in RFID used in the automotive industry
An RFID device has several advances that place it above other technologies. The device does not need to be in a precise position about the scanner. Thus, the line of sight is not an issue any longer. For the automotive industry, RFID is not just a replacement of the barcode technology. It is a strategic and relevant technology for the supply chain management. The use of RFID technology in the automotive industry has been in existence for many years in the improvement of the local processes like production control and asset management.
The use of the RFID technology in the automotive technology resulted in increased efficiency and competitiveness thereby promoting supply chain integration. The technology allows source tagging in which the manufacturer can have the second or third-tier supplier tag components before shipping. Thus, it enhances automation in which the identification of the actual goods occurs and also a comparison of the data in the ERP system (Pérez, Seco, et. al, 2010).
The other advancement in the use of RFID is staging which is a core principle of lean manufacturing. It helps to correct mistakes when and where they occur. The entire staging floor is visible as well as the dock doors. Thus, the mistakes made by the employees in the staging line cannot proceed to the dock door. The technology also allows easy management of the re-working on the cars that come off the assembly line. Thus, no employees waste time to search for it. The work in process capability is also a major contribution to the RFID technology in the automotive industry. The work in process and just in time production helps to minimize inefficiency and wastage by optimizing production (The RFID transformation, 2005).
Automotive Industry Standards for RFID technology
In the global business environment, standards in the tools and technologies used are a major requirement. Interoperability in the information and the communication technologies is an important requirement that applies to the use of RFID. Thus, the RFID standards are a major issue for the Industry. They enhance flexibility in the use of the technology in different industries that promote automation and easy communication between the suppliers and the manufacturers. The RFID standards in use include the RF protocol, data-on-tag structures among others. However, there are different standards that coexist in parallel. Also different actors with diverse interests have an influence on the standardization process (Thiesse, Floerkemeier, Harrison, Michahelles & Roduner, 2009).
Two initiatives exist to address the issue of RFID standardization. ISO adopts across industry perspective with a generic approach while EPC Global focuses on the high-end users whose needs adopt a more application-specific approach. The electronic product code (EPC) is a numbering scheme for the designation of physical goods that ensure interoperability of the technology used in the supply chain. EPC also has specifications for several protocol standards for communicating between the transponders, scanner hardware and information systems (Thiesse, Floerkemeier, Harrison, Michahelles & Roduner, 2009).
ISO’s RFID standards are generic and focus on the air interface. They cover the areas of technology (ISO 18000 series), data content (ISO 15418), conformance and performance (ISO 18046), and the application standards (1SO 10374). Thus, ISO RFID standards are more application-independent in respect to processes and industry specific-context (Thiesse, Floerkemeier, Harrison, Michahelles & Roduner, 2009).
Benefits and disadvantages of the RFID system
The use of RFID technology in the automotive industry has several advantages. The technology results in improved control of materials in the production line and streamlining the inbound logistics. RFID devices also enable easy tracking and distribution of the finished vehicles from the industry. The use of RFID tags is widespread in identifying different assets that include the returnable transit items, prototype parts, the car bodies and the finished vehicles.
The technology reduces the shipping errors previously witnessed in the automotive industry. It also enhances the security and visibility of goods within the supply chain. Another benefit costs reduction through the possibility of minimised buffer inventories and enhanced inventory turnover. Thus, there are more accurate inventories. RFID technology avails the right parts and components for the just-in-time production. RFID tags result in improved utilization of assets and resources by minimizing the lag times and eliminating wastage or reworking on a vehicle. The use of RFID tags is a major contributor to accurate component-level traceability that improves the quality control capability (Domdouzis, Kumar, & Anumba, 2007).
RFID technology has the capability of enhancing and protecting the lives of the consumers and revolutionizes the way companies conduct business operations. The technology allows flexibility and auto-identification and can monitor the physical world automatically and accurately (Gwon, Huang & Hong, 2011). RFID tells what an object is, where it is, and its condition in the industry.
Despite the many benefits associated with the use of RFID technology, it faces a few disadvantages. It is an expensive technology for many applications in comparison to other tracking and identification methods like barcodes. The technology does not work for the liquid and metal products since their surfaces reflect the radio waves affecting readability. They are also subject to interference and most if the RFID signal frequencies across the globe have not standards. RFID technology is invasive, and consumers have a concern about privacy.
Security concerns with the RFID system
Many consumers using products tagged with the RFID technology raise concerns about the invasion of privacy. At the industry level, RFID tags are impossible to copy thereby enhancing the security of all the tagged items. However, to the users of the products privacy issues loom as the biggest threat to the success of RFID. The current RFID protocols offer the most optimal performance between the readers and tags but neglect the privacy concerns of the consumer. The most items affected are the common items that have the tracker even after purchase. The main problem in the issue is a lack of information on how to turn off the tags after purchasing an item (Suprina, 2005).
The RFID system assures the companies of security of all the products under its tracking. Thus, it prevents theft of any items stored in its database. The application of RFID technology in the automotive industry is a major boost to the security of all the items and tools used in the production line. However, it poses an issue to the privacy of the consumers (Suprina, 2005).
Impact of implementation
Description of administrative procedures including purchasing and Installing
The integration of the RFID technology into the existing practices requires a considerable investment from the organisations. Thus, the process of implementing the technology affects all facets of the organization and has high-cost implications. A large push for the RFID installation in the industry comes from the retailers who force manufacturers to absorb the additional associated with tagging items and processing the information they require. Thus, many manufacturers struggle to realise the short-term benefits from upgrading to the RFID technology.
Following the pressure from the consumers, the automotive industry has to comply by installing the RFID systems for use in supply chain management. The administrative procedures involved include conducting a feasibility study on the viability of the technology by engaging with all the major stakeholders. Next is establishing a task force to steer ahead the activities of planning, design, implementing, and maintenance of the system. Next is seeking for the necessary resources to acquire the technology and prepare the company for its installation. The manual processes change to automation in which the personnel have to undergo the required training on the use of the RFID technology.
Human and Process Changes
The implementation of the RFID systems in the automotive industry has a big impact on the personnel and other processes. The technology helps to automate several operations initially completed manually. As a result, most of the personnel working in the store rooms have to pave the way for the technology. The activities of locating tools and physically recording the entry and exit of certain products become unnecessary (Want, 2004).
The manual search and identification of the materials use in the industry is overcome by the use of tags and readers. The control of the inventory is automatic thereby reducing the work done by the company employees. There is reduced time in the completion of orders thereby enhancing the efficiency. It is due to the reduced inventory shrinkage, order start-up times, and fast material identification (Want, 2004).
Changes in the organisation policies and Maintenance of the system
The automotive industry undergoes several changes in the policies upon the implementation of the RFID technology. In some instances, the companies require establishing certain policies to aid in the implementation of the technology. The policies regard the security issues, mode of operation, maintenance, and safety. The policies regarding the security issues help to control the access and usability of the RFID technology in the industry. Thus, they enhance the security and safety of the users of the system and also the respective companies. The policies on the mode of operation explain the appropriate use of the RFID technology. Most of the activities involved in the implementation of the technology change and requires a change of the policies governing the method of operations in the industry (Domdouzis, Kumar & Anumba, 2007).
The successful implementation of the RFID technology in the automotive industry depends on the level of staff training. The human resource requires understanding how the system works and incorporating it in their day-to-day activities. It is also necessary to deploy support staff with skills and expertise in dealing with the system. The support helps in implementation and maintenance of the RFID technology.
Conclusion
The use of Radio Frequency Identification in the Industry is common for tagging and identifying the products used along the production line. RFID technology applies in the automotive industry in the management of the supply chain. The company can keep track of its tools, materials, personnel and the finished products throughout the production process. The technology has several advantages for the industry including increased efficiency though raises concerns on the privacy and security issues to the customers. However, its benefits in real time tracking and inventory management outweigh the concerns. The implementation of the system has the effect of changing the human resources and also the policies on the operations of the company. Staff training is an essential aspect of the implementation process of the RFID technology.
References
Chabrow, E. (2005). Wireless Revs UP Vehicle Production. InformationWeek, (1056), 100.
Gwon, S., Oh, S., Huang, N., & Hong, S. (2011). Advanced RFID application for a mixed- product assembly line: International Journal Of Advanced Manufacturing Technology, 56(1-4), 377-386. doi:10.1007/s00170-011-3155-3
K. Domdouzis, B. Kumar, C. Anumba, (2007) Radio-frequency identification (RFID) applications: a brief introduction”, Advanced Engineering Informatics, Vol.21, No.4; 350–355
Karjoth, G., & Moskowitz, P. A. (2005). Disabling RFID tags with visible confirmation: clipped tags are silenced: In Proceedings of the 2005 ACM Workshop on Privacy in the electronic society (pp. 27-30). ACM.
Pérez, J., Seco, F., Milanés, V., Jiménez, A., Díaz, J. C., & de Pedro, T. (2010) An RFID- Based Intelligent Vehicle Speed Controller Using Active Traffic Signals. Sensors (14248220), 10(6), 5872-5887. doi:10.3390/s100605872
Suprina D. (2005) Security Risks with RFID,
The RFID transformation (2005) Industrial Engineer: IE, 37(11), 12.
Thiesse, F., Floerkemeier, C., Harrison, M., Michahelles, F., & Roduner, C. (2009) Technology, standards, and real-world deployments of the EPC network: Institute of Electrical and Electronics Engineers
Want, R. (2004). RFID: A Key to Automating Everything. Scientific American, 290(1), 56- 65.
Sherry Roberts is the author of this paper. A senior editor at MeldaResearch.Com in College Essay Writing Service if you need a similar paper you can place your order from cheap essay help online.
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