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1. DR Frederico has an MSc from Senai Cimatec His research interests are Automating Manufacturing Systems and RFID Adress Av Orlando Gomes 1845 Piat Salvador Bahia Brazil 41650 050 Phone 71 3462 9500 Fax 71 3462 9599 E mail wergne Ofieb org br X L Travassos Federal University of Santa Catarina UFSC He finished his PhD at the L Ecole Centrale de Lyon France His research interests are Numerical Modeling and Industrial Engineering Adress Rua Presidente Prudente de Moraes 406 Santo Ant nio 89218 000 Joinville SC Brasil Phone 47 3461 5900 E mail lucas travassos Q ufsc br Paulo S Figueiredo Integrated Center of Manufacture and Technology National Service of Industrial Learning DR Paulo has a Doctoral Degree from Boston University and does research in Operations Management His research interests include System Dynamics modeling and Product Pipeline Management Adress Av Orlando Gomes 1845 Piat Salvador Bahia Brazil 41650 050 Phone 71 3462 9500 Fax 71 3462 9599 E mail paulo s figueiredo hotmail com Published by Publicado por TECSI FEA USP 2014 All rights reserved 66 Ara jo Filho F W C Travassos X L T Figueiredo P S of RFID is that a radio frequency reader can read as many as 200 tags in a second without the line of sight requirement Near real time tracking and tracing capabilities together with item level identification through EPC electronic product code stan
2. implementation of RFID systems REFERENCES Ara jo Filho F W Travassos X L Figueiredo P S 2013 Uma An lise De Viabilidade Econ mica De Um Sistema RFID Na Cadeia De Suprimentos De Fabrica o De Microcomputadores H Algum Lucro Gest o da Produ o Opera es e Sistemas Forthcoming Attaran M 2007 RFID An Enabler of Supply Chain Operations Supply Chain Management an International Journal 12 4 pp 249 257 Balocco R Miragliotta G Perego A and Tumino A 2011 RFID adoption in the FMCG supply chain an interpretative framework Supply Chain Management an International Journal 16 5 p 299 315 Bottani E R Montanari and A Volpi 2010 The Impact of RFID and Epc Network on the Bullwhip Effect in the Italian Fmcg Supply Chain International Journal of Production Economics 124 2 pp 426 432 Chow H K H K L Choy W B Lee and K C Lau 2006 Design of a RFID Case Based Resource Management System for Warehouse Operations Expert Systems with Applications 30 4 pp 561 576 Delen D B C Hardgrave and R Sharda 2007 RFID for Better Supply Chain Management through Enhanced Information Visibility Production and Operations Management 16 5 pp 613 624 Dutta A H L Lee and S J Whang 2007 RFID and Operations Management Technology Value and Incentives Production and Operations Management 16 5 pp 646 655 Deavours D D
3. Ramakrishnan K M Syed A 2005 RFID Performance Tag Analysis Technical Report ITTC FY2006 TR 40980 01 Available at lt http ittc ku edu publications documents deavours2006_ITTC FY2006 TR 40980 O1 pdf gt Fosso Wamba S and A T Chatfield 2009 A contingency model for creating value from RFID supply chain network projects in logistics and manufacturing environments European Journal of Information Systems vol 18 pp 615 636 JISTEM Brazil Vol 11 No 1 Jan Apr 2014 pp 65 84 www jistem fea usp br c Use of RFID technology to overcome inefficiencies in the production process An analysis of a 83 microcomputer company in Ilh us BA Brazil Gaukler G M R W Seifert and W H Hausman 2007 Item Level RFID in the Retail Supply Chain Production and Operations Management 16 1 pp 65 76 Gaukler G M O Ozer W Hausman 2004 RFID and product progress information Improved Dynamic ordering policies Working paper Stanford University Stanford CA Heinrich C 2005 RFID and Beyond Wiley Publishing Indianapolis Hunt V D Puglia A and Puglia M 2007 RFID A Guide to Radio Frequency Identification John Wiley amp Sons Hoboken N J Jones E C Riley M W Franca R Reigle S 2007 Case Study The Engineering Economics of RFID in Specialized Manufacturing The Engineering Economist 52 285 303 Kach A and Borzabad A F 2011 Use of RFID Technology
4. a portal and a manual reader e Manual control of the raw materials inventory This research has the objective of evaluating the specific conditions of adoption of an RFID system in a microcomputer assembly company situated in the P lo de Inform tica de Ilh us BA The system aims at an adequate return on investment to JISTEM Brazil Vol 11 No 1 Jan Apr 2014 pp 65 84 www jistem fea usp br COHEN Use of RFID technology to overcome inefficiencies in the production process An analysis of a 67 microcomputer company in Ilh us BA Brazil modernize the company with an up to date solution It is noteworthy that no other company in the region possesses this technology The actual Internal Rate of Return IRR of the project was calculated by Aratijo Filho et al 2013 and its value is 15 RFID technology presents some advantages when compared to the barcode technology previously used in the company The method used to read the RFID tags enables them to be read at great speed compared to the barcode The reading of an RFID tag does not depend on the line of sight requirement and it can be reutilized or operated in hazardous environments or environments contaminated by dirt The reutilization process is simple It is just necessary to remove the used tags from the items and reattach them to new items This paper outlines the activities that were undertaken by a Brazilian microcomputer assembly company while implementing RFID techno
5. board machine out speakers user of spec of PO Visual inspection Improper manual operation manual driver CDs Visual inspection ERP System Reading error nee a Delay in the parent serial Raw material release of number to set Damaged tag invoice with the amount of the machines machines on the invoice Reading error Eno Delay in the component for p component Damaged tag insertion in aes the ERP system IECS The recommended actions in the FMEA Process are listed below Visual inspection ERP System Generation Input in of Invoice packing with insufficient rN pas Improper manual Visual I O mouse machine out f boa Si spencer LO operation inspection speakers user manual driver CDs 1 Real Time Inventory There were faults due to unavailability of components in the inventory caused by imprecise control of raw materials It was found that 30 of the Production Orders were generated by substituting components for others with higher or lower value or grade It was also found that the inventory of parts and finished products was performed once a year and demanded 3 days to be executed This happened because some steps of the inventory checking were performed manually and the results were compared with the values found in the ERP system Therefore real time inventory is recommended for the company 2 Substitution of Barcodes for RFID During the stages of KIT preparatio
6. generating an invoice for a sales request initiates with the sales request by the ERP system The inventory team releases the serial number of the machines which are on the pallet to compose the amount of machines requested in the sales invoice After the machines are chosen the sales invoice is created and the inventory team makes pallets available for removal by manually checking the invoice numbers with the labels in the machines Once the new process is initiated the pallets will receive RFID tags and will be associated to the computers JISTEM Brazil Vol 11 No 1 Jan Apr 2014 pp 65 84 www jistem fea usp br o Use of RFID technology to overcome inefficiencies in the production process An analysis of a 73 microcomputer company in Ilh us BA Brazil 4 2 Applying FMEA to the manufacturing Process of the Company The FMEA form used for the analysis of the manufacturing process of the company was developed by a team of four experts Microelectronics Lab of the Manufacture and Technology Integrated Center CIMATEC The most important results of this work were the possibility of evidencing the potential fault modes their causes and the alternatives to prevent the occurrence of faults The FMEA form is an established methodology with proven results Santos and Cabral 2008 Stamatis 2003 The methodology is applied by filling the FMEA form and analyzing it In order to fill the FMEA form the team followed the steps explained
7. in section 3 The improvement actions were focused on the types of operations in which the Risk Priority Number RPN was above 125 On the FMEA form 50 types of operations were identified Seven of these operations 1 11 28 30 31 34 and 43 were the ones with the highest RPN according to Table 1 below Table 1 FMEA Form POTENTIAL POTENTIAL j POTENTIAL PRESENT PRESENT FUNCTION FAULT MODE EFFECTS OF CAUSE 6M PREVENTIVE DETECTION FAULTS MECHANISMS CONTROL CONTROL Replacement Production Unavailable By conmponen Order Component in Generation stock with Raw material Anual inventory equivalence control in stock Manual BC ERP ECS higher or lower than SO KIT Preparation motherboard processor cooler and RAM Memory Reading error Delay in the Visual in barcodes KIT release to Inspection BCs of the assembly Damaged tag Visual ERP components line System Wrong input of BC tag of the parent serial number on the Inconsistent data in the ERP system Finished product Improper manual Visual operation inspection package JISTEM Brazil Vol 11 No 1 Jan Apr 2014 pp 65 84 www jistem fea usp br c 74 Ara jo Filho F W C Travassos X L T Figueiredo P S Table 1 FMEA Form POTENTIAL POTENTIAL E j POTENTIAL 29 PRESENT PRESENT FUNCHON EFFECTS OF CAUSE 6M PREVENTIVE DETECTION a AULAS MECHANISMS CONTROL CONTROL Wrong selection of T O mouse Packed
8. the case connect the power cable to outlet and perform a pre test and setup of the machine motherboard processor memory DVD frontal USB In case the machine is approved it is made available on the rack for run in If it is reproved it is taken to be repaired Once the new process is implemented RFID tags will be attached individually to groups of similar components as described in section 4 3 3 The tags did perform well with parts made of metal After the approval in the assembly line the machines are made available to run In this stage the Operational System OS is installed and a fatigue test is performed The next step is the final test for the machine In this test both hardware and software are tested In the end of this step the machine is packaged together with a keyboard loudspeakers a mouse manuals CD of drivers and the label with its serial number is attached to the box The machine is then put on the pallet The pallets are stored in the inventory When an invoice is generated the inventory team ties via barcode BC reader the serial number of the machine to the invoice using the software system provided As mentioned previously once the new process begins RFID tags will be attached to groups of similar components during the initial inspection The results of the use of RFID tags are discussed in the final section 4 1 4 Description of the process of Generating an Invoice for a Sales Request The process of
9. the country The difficulties faced by these companies in managing their inventories of raw materials and finished products even using barcodes for quick identification during production were the motivational factor behind this study These difficulties motivated the development of the methodology of integration presented here The most relevant difficulties found in companies of the region are described below e Sales of products that did not have all the necessary components as ordered by the client In such cases the company frequently substituted the missing component s for a component of higher value This might create a discrepancy between the inventory control system database and the actual inventory RFID may help in this case by identifying and tracking all items contained in a product e Traceability of components during the phases of assembly when one component was damaged and was substituted for another one The control of this activity is performed in most companies by inspection ie by manually filling a spreadsheet at the end of the working hours and then inputting the information into the inventory control system database Such method was performed in the company being studied e Problems while reading the barcodes during the phases of data insertion into the ERP Enterprise Resource Planning system of the companies In case there were many metal pieces the RFID reading was performed with redundancy by means of
10. to Overcome Inefficiencies in the Supply Chain An Analysis of Renault s Operations in Iran International Journal of Management 28 365 378 Kharif O 2005 For Many Retailers RFID Lacks Roi Business Week Pinheiro J M S 2006 Identifica o por Radiofreq ncia Aplica es e Vulnerabilidades da Tecnologia RFID Caderno UniFOA Volta Redonda ano 1 n 2 Available at lt http www unifoa edu br cadernos edicao 02 18 pdf gt Rausand M Hoylan A 2004 System Reliability Theory Models Statistical Methods and Applications Wiley Series in probability and statistics second edition page 88 Santos F R S Cabral S 2008 FMEA and PMBOK Applied To Project Risk Management Journal of Information Systems and Technology Management vol 5 No 2 pp 347 364 Soares R S 2008 O impacto da tecnologia de etiqueta inteligente RFID na performance de cadeias de suprimentos Um estudo no Brasil Revista Jovens Pesquisadores Ano V No 9 Available at lt http www mackenzie br dhtm seer index php jovenspesquisadores article viewFile 8 20 344 gt Stamatis D H 2003 Failure Mode and Effect Analysis FMEA from Theory to Execution 2 Ed ASQ Quality Press Milwaukee 2003 Stambaugh C T and F W Carpenter 2009 Wireless innovation in inventory monitoring and accounting Strategic Finance Vol 91 6 pp 35 40 Sweeney II P J 2005 RFID for Dummies Ed Wiley Publish
11. Class 1 ne Class 1 EPC Class 1 Generation 1 Generation k Generation Generation Generation Protocol Generation 2 2 ISSO Generation 2 Generation 2 2 ISO E 18000 6C 2 E 18000 6C 2150 18000 6C Dern 8 12m 4 5m 5 9m 3 4m 4 6m 25m 6 7m 5 7m 4 6m from Reader r NXP G2XM 96 bit EPC E paar 96 bit EPC Up to 240 64 bit 96 bit EPC 96 bit EPC ie 2 M Jn J Impinj Monza bit EPC Impinj 2 ig Mona Impinj Impinj Monza s si Alien ee Bn Mn 5 c 240 bit EPC 512 bit Monaco 64 7 B n EPC Monza3 240 bit EPC pi ppc Higes 3 E 512 NXP extended 240 bit EPC 96 bit EPC 512 NXP 96 bit EPC o G2XM user 512 NXP Mos G2XM oo NXP G2XM Memory G2XM G2XM i i Mechanical Attachment Mechanical Adhesive Mechanical Mechanical Adhesive Adhesive m nM Mechanical Adhesive Adhesive Adhesive Adhesive Working 35 C 35 C 35 C 35 C 20 C 485 C 20 C 55 C 35 C 40 C Temperature 85 C 160 C 200 C 60 C 85 C 105 C 85 C 70 C Petrochemical Document i bl bl Typical o Tire Industrial Wood o o industry Metallic tracking usage ae manufacturing solutions Pallets automotive surfaces pallets and Logistics warehouses warehouses am and maritime boxes VIABLE Viable readings divided by the reading trials JISTEM Brazil Vol 11 No 1 Jan Apr 2014 pp 65 64 Performance tests were done in a sequence Deavours et al 2005 recommend a performance test of an RFID tag in order to evaluate the potential success of the RFID system under s
12. JISTEM Journal of Information Systems and Technology Management E ISSN 1807 1775 tecsi usp br Universidade de Sao Paulo Brasil Wergne de Castro Ara jo Filho Frederico Travassos X L Figueiredo Paulo S USE OF THE RFID TECHNOLOGY TO OVERCOME INEFFICIENCIES IN THE PRODUCTION PROCESS AN ANALYSIS OF A MICROCOMPUTER COMPANY IN ILH US BAHIA JISTEM Journal of Information Systems and Technology Management vol 11 num 1 enero abril 2014 pp 65 84 Universidade de Sao Paulo S o Paulo Brasil Available in http Avww redalyc org articulo oa id 203230667006 How to cite ayc A Complete issue Scientific Information System Network of Scientific Journals from Latin America the Caribbean Spain and Portugal Journal s homepage in redalyc org Non profit academic project developed under the open access initiative gt More information about this article JISTEM Journal of Information Systems and Technology Management Revista de Gest o da Tecnologia e Sistemas de Informa o Vol 11 No 1 Jan Apr 2014 pp 65 84 ISSN online 1807 1775 DOI 10 1590 81807 17752014000100005 USE OF THE RFID TECHNOLOGY TO OVERCOME INEFFICIENCIES IN THE PRODUCTION PROCESS AN ANALYSIS OF A MICROCOMPUTER COMPANY IN ILHEUS BAHIA Frederico Wergne de Castro Ara jo Filho X L Travassos Paulo S Figueiredo Integrated Center of Manufacture and Technology National Service of Industrial Learning DR Salvador Bahia B
13. assembly process from the receipt of raw materials to the checkout of finished products 4 1 1 Description of the Factory The computer factory was built in 2008 in the P lo industrial de Inform tica in Ilh us BA with the objective of producing desktop computers and laptops to fulfill the needs of the north and northeast regions of Brazil The company has a flexible assembly line which manufactures 5 desktop models and 1 laptop model The monthly production of the factory is approximately 12 thousand machines The factory has a total area of 1134 m with a production area of 895 m Around 200 000 machines will be traced and tracked For details on costs please refer to Araujo Filho et al 2013 We assumed that all the equipment would be tagged 4 1 2 Description of the Process of Receiving Supplies The process of receiving supplies is initiated with the arrival of the product in the inventory sector A worker checks the data on the invoice and the data in the request for parts After the checking of documents a physical checking of the products is performed as well as a checking of the packaging and possible damages caused by transportation When the new process is initiated the components will receive an RFID tag when they are first inspected All the checking data are registered in the stamp of inspection and acceptance In case there is no problem with the material either physical or documental it is taken into the invento
14. by choosing an economically feasible tag and by reutilizing the tags as much as possible Perform Site Describe the Manuf Process Survey Describe the Identify factory and its interrogation zones manuf process Perform static capture Develop the flowchart of the manuf process Eliminate noise Any eletromagnetic noise Identify clients needs Perform itinerant capture Apply Process FMEA Eliminate Noise Any eletromagnetic noise Perform test on the spot Detail the recomm actions Create selected infrastructure Select the RFID Equipment Perform Pilot Select antenna and Test reader as needed by the process No Does it work Select Potential tags Perform financial viability Make a performance study test on the tags Calculate NPV amp IRR Validate technically economically Yes Does it work Yes Is it viable Validate Figure 1 Flowchart of the Methodology Technically JISTEM Brazil Vol 11 No 1 Jan Apr 2014 pp 65 84 www jistem fea usp br o Use of RFID technology to overcome inefficiencies in the production process An analysis of a 71 microcomputer company in Ilh us BA Brazil 4 1 Description and evaluation of the process In this section a description of the factory of company XYZ will be presented together with a description of the microcomputer
15. company in Ilh us BA Brazil e Reduction of one worker in the inventory team due to the substitution of manual reading of barcodes for RFID technology RFID technology was so efficient in relation to the previous technology barcode that the time required to read a pallet in the process of generating an invoice was reduced from ninety seconds to seven seconds on average These time savings are equivalent to the work of one employee Araujo Filho Travassos and Figueiredo 2013 e Reduction in the practice of substituting a component for another of higher grade cost due to the real time inventory control This can be measured because the company knows the amount of parts that were substituted in the past There were however difficulties and challenges in the implementation of the new technology The different areas of production were arranged in a way that made difficult the installation of the RFID portal the training of workers demanded a lot of attention and care and the integration of the RFID system with the ERP system demanded a lot of time 6 CONCLUSIONS In this paper it was evidenced that the methodology for implementation of RFID technology on microcomputer assembly companies was viable Araujo Filho Travassos and Figueiredo 2013 determined an internal rate of return of 15 It was also observed that the utilization of the FMEA tool for identification and elimination of causes of failure modes in the production proces
16. d The human cost for the process of attaching the tags to the body of the components was not calculated For a more detailed analysis of the procedures check Araujo Filho Travassos and Figueiredo 2013 4 3 Measurements and tests In this section we will explain the steps of the technical viability analysis The first subsection presents the selection of the RFID equipment The second subsection presents the analysis performed in the environment to detect electromagnetic noise site survey at the points where the RFID equipment were to be installed 4 3 1 Selection of the Most Adequate RFID Equipment For the selection of the proper and most adequate RFID equipment a pre selection and analysis were performed taking into consideration firstly the technical information of different RFID tags Reading tests were then performed with the pre selected list of available tags antennas and tag readers We tested most of the components available in the Brazilian market but we do not show them here for brevity purposes The tags were put on components on the computer case and on the packaging box and the tests were performed The choice of readers and antennas was restricted to the available material in the CIMATEC lab This equipment had already been tested and proved to be cost efficient and reliable However a more detailed analysis was not performed The choice of tag however was performed considering technical and economical criteria A l
17. dard would allow a host of new improvements in inventory management Whang 2010 Among these improvements is increased efficiency by making products available at the right time and in the right place with a lower operational cost As a result numerous manufacturing plants are adopting RFID technology for product tracking purposes especially within sectors that move multiple parts through their facilities each day Chow et al 2006 Kach and Borzabad 2011 According to Stambaugh and Carpenter 2009 RFID systems are rapidly replacing Universal Product Codes barcodes in many applications According to Soares et al 2008 inventories are the sectors that can potentially benefit the most from RFID technology The benefits with its implementation go far beyond the mere change of the technology of automation of data capture Its main objective is to increase the integration of the entire logistics chain providing tools that enable tracking and control of the products that circulate in the chain Fosso Wamba and Chatfield 2009 This case study initiates in 2008 motivated by research done in many microcomputer assembly companies of the P lo de Inform tica de Ilh us BA This group of companies is comprised of 20 assemblers of microcomputers The raw materials are practically all imported from Asian suppliers China South Korea and Thailand among others and the companies supply the Brazilian market specially the north and northeast regions of
18. e status of components used from Debited to Reserved generating the debt of the component in the inventory system while a credit of finished product will be held in it 5 RESULTS After the in place test was performed the FMEA form was used once again to evaluate the efficiency of the RFID system The RPN results for the items that were changed are shown below Table 3 Table 3 FMEA Form RESPONSABILITY FOR THE R RECOMMENDED pecountenneD ACTON ACTIONS amp FOR N THE DEADLINES Perform real time CIMATEC XYX Validation inventory RFID Company tests tags in the Inventory jan 11 performed for RFID tags jan 11 tests CIMATEC XYX Validation Company jan 11 performed Identify the I O CIMATEC XYX Validation devices with RFID Company tags and group them jan 11 performed Identify the I O CIMATEC Validation devices with RFID Empresa tests tags and group them jan 11 performed Replace CBs tags CIMATEC Validation for RFID tags jan 11 tests Replace CBs tags CIMATEC Validation for RFID tags jan 11 tests Table 3 FMEA Form Replace CBs tags for RFID tags These measures enabled the company to attain the following results with the implementation of the methodology for integrating RFID technology in its production system JISTEM Brazil Vol 11 No 1 Jan Apr 2014 pp 65 84 www jistem fea usp br Ol Use of RFID technology to overcome inefficiencies in the production process An analysis of a 81 microcomputer
19. eader RAM memory power supply unit case and packaging box ae Se AE Ct tt cee oe ae As ae a en LE 90L exons i v d n v T 80r ese a a 70 T d 2 sol Shipping box p o Power supply CES 9 so q Computer case a Sie pe 8 o HD v 8 40 v Motherboard pneu 8 vs 4 30 RAM memory a v DVD reader o a oo a g b sy 1 20H R 4 a 2 o 8 10 i i A L ed ass i 1 il L Qo 28 26 24 22 20 18 16 Power dBm Figure 2 Performance test on the machine s components 4 3 2 Site Survey According to Sweeney II 2005 in order to perform a site survey it is necessary to follow these steps 1 Define the reading places or areas of inquiry where the RFID system will be installed These locations vary from store to store and require a power outlet and Ethernet connectivity for readers unless you have players with wireless connectivity Commonly the RFID interrogation zones are placed on doors assembly lines and racks of inventory 2 Carry out site survey in local reading respecting all the business process cycle 24h or 48h It is usually held on days of normal operation of the company respecting all hours of operation 3 Perform the static capture To perform the static capture you must configure the equipment as follows a Place the half wave antenna attached directly to the tripod so that the center of the antenna is in the center of the target area b Connect the an
20. fore the product was sent to customers Such benefits were enabled due to the real time control the capacity to read many tags at the same time and the suppression of the manual reading of barcodes Furthermore all the logistic chain to which the company belongs receives benefits as demonstrated by Fosso Wamba and Chatfield 2009 because with real time inventory control company suppliers will be able to monitor their inventory and fulfill their clients needs more precisely Therefore the fundamental question for this study is will implementing an RFID based system reduce inefficiencies in the production process of the company in question 2 RFID TECHNOLOGY RFID technology has its origins in the Second World War with the IFF Identification Friend or Foe identification system which allowed Allied units to distinguish between Allied and enemy aircraft Hunt et al 2007 RFID technology JISTEM Brazil Vol 11 No 1 Jan Apr 2014 pp 65 84 www jistem fea usp br c 68 Ara jo Filho F W C Travassos X L T Figueiredo P S works on the same basic principle A signal is sent to a tag which is activated and reflects back the signal passive system or transmits its own signal active system According to Pinheiro 2006 the considerable advances of RFID technology are undeniable however many challenges remain in order to enable its widespread use These challenges can be perceived by the analysis of applicatio
21. ime data RFID technology helps in systematically reducing information gaps across the supply chain It prevents items from being lost since they are tracked continuously as they move through the chain and enables inventory control since the company knows exactly what is contained in its inventory in real time Attaran 2007 Gaukler et al 2007 Kach and Borzabad 2011 Disadvantages of the use of RFID technology RFID technology does not guarantee improved processes across all functions of the supply chain Wu et al 2006 Just like any technology RFID has downsides and risks Kharif 2005 Taghaboni Dutta and Velthouse 2006 To begin with there are costs and capital requirements for implementing the physical technology and software needed for RFID Ustundag and Tanyas 2009 Justifying the startup costs may be a prohibitive barrier for implementing RFID technology Kach and Borzabad 2011 Second there are cases that suggest how RFID may not be so effective and other cases where the implementation of the system was not successful Kharif 2005 Additionally lack of timing and technology coordination between suppliers when implementing RFID practices can create problems across the supply streams Whang 2010 When to implement RFID technology is an important question facing many practitioners and researchers alike Kach and Borzabad 2011 In relation to the problem identified in the case study the main advantages and disadvantages hold the
22. ing Inc Indianapolis Indiana 409 p Taghaboni Dutta F and B Velthouse 2006 RFID Technology is Revolutionary Who Should Be Involved in This Game of Tag Academy of Management Perspectives 20 4 pp 65 78 Ustundag A and M Tanyas 2009 The Impacts of Radio Frequency Identification RFID Technology on Supply Chain Costs Transportation Research Part E Logistics and Transportation Review 45 1 pp 29 38 Whang S 2010 Timing of RFID Adoption in a Supply Chain Management Science vol 56 No 2 pp 343 355 JISTEM Brazil Vol 11 No 1 Jan Apr 2014 pp 65 84 www jistem fea usp br Ol 84 Ara jo Filho F W C Travassos X L T Figueiredo P S Wu N C M A Nystrom T R Lin and H C Yu 2006 Challenges to Global RFID Adoption Technovation 26 12 pp 1317 1323 JISTEM Brazil Vol 11 No 1 Jan Apr 2014 pp 65 84 www jistem fea usp br Ol
23. inning at 08 00 until 08 00 of the next day However the last record of each place corresponded to the period between 18 00 of the last day until 8 00 of the following day because the company did not have any activity after regular working hours This was performed inside the company We identified some areas of frequency spectra of interrogation but all spectra were outside the working range of the UHF Ultra High Frequency For the itinerant capture no spectrum in the range of 902 to 907 5 MHz and in the range of 915 to 928MHz was recorded by the spectrum analyzer JISTEM Brazil Vol 11 No 1 Jan Apr 2014 pp 65 84 www jistem fea usp br Ol Use of RFID technology to overcome inefficiencies in the production process An analysis of a 79 microcomputer company in Ilh us BA Brazil REPAIR ASSEMBLY LINE ee Is 153 25 CRITICAL INVENTORY 4S TI TEST PACKAGING T224m INVENTORY RAW MATERIAL 106 60m FINISHED PRODUCT INVENTORY 3569m fh T INVENTORY RAW MATERIAL 108 6007 FINISHED PRODUCT INVENTORY Tm Md Figure 3 Static capture zone Figure 6 Raw material issuing Zone 3 4 3 3 Tests in the Product After the site survey tests in place tests were performed The stages of these tests include e Input of Components Through data integration with ERP the system prompts the user to issue tags for the volumes that comprise a given set batch of components Through the informat
24. ion contained in the invoice launched in the ERP system data will be associated for later traceability At this point the components will be credited into the system releasing them for use if necessary e Inventory After proper labeling of RFID tags in the volumes of components these will be stored as usual e Handling With the aid of a RFID Data Collector integrated with the ERP system the operator will locate the Production Order that lists which components and which amounts must be separated and sent to the production line At this time the separate components are read by the RFID Collector and receive the status of Booked which means that these components can be used at any time JISTEM Brazil Vol 11 No 1 Jan Apr 2014 pp 65 84 www jistem fea usp br cc JE 80 Ara jo Filho F W C Travassos X L T Figueiredo P S e Production Through the integration with the ERP system and upon information contained in the Production Order RFID tags are printed with the necessary information and the Finished Product lot number in question RFID tags are linked to the Production Order whose number is also associated with the handling of components ensuring the association of Finished Goods and Components e Appointment of Production All finished products properly accommodated in a standardized way on a pallet will go through an RFID portal At this point the confirmation of the RFID reading of the finished product will change th
25. ist of nine tags covering the major types available on the market was analyzed and a series of specifications were considered to enable the choice of the most adequate one both in terms of performance and in terms of cost Among such criteria were cost dimensions distance for reading memory size mounting type among others With such criteria in hand it was possible to determine which tags were a viable alternative for components and for the packaging box A pre selection was made Table 2 presents the kinds of tags that were tested JISTEM Brazil Vol 11 No 1 Jan Apr 2014 pp 65 84 www jistem fea usp br c 76 Ara jo Filho F W C Travassos X L T Figueiredo P S Table 2 Choice of RFID Tags Model Survivor eem Contder one SteelWave SteelVave Ironside Confidex LN 9640 Cruiser Corona Pino Micro Halo Manufacturer CONFIDEX CONFIDEX CONFIDEX CONFIDEX CONFIDEX CONFIDEX CONFIDEX CONFIDEX ALIEN 101 P 224x24x8 16x 74x 0 3 100 x 20 32 75x 14x 0 4 45x35x6 13x38 x3 51 5 x 47 5 x 60x12x14 ups Dimensions 50 8 x 0 3 mm mm x 0 3 mm mm mm mm 10 mm mm umm 865 869 865 869 MHz MHz 5 869 Frequency 865 960 860 960 860 960 860 960 T 902 928 pot 902 928 840 960 Range MHz MHz MHz MHz MHz MHz MHz 902 928 MHz 952 955 902 928 MHz 952 955 MHz MHz EPC Class EPC Class 1 EPC Class 1 Transmission Pe Class 1 EPC Class 1 Generation EPC Class 1 EPC
26. logy We explore the steps taken by the firm and outline where the company met its expectations or not The microcomputer industry relies heavily on logistical techniques and inventory management moving many parts throughout their system received from multiple suppliers As such we believe our analysis can be useful for other firms hoping to use RFID technology to reduce their systematic inefficiencies The cost of the tag is a problem to be faced but it is not insurmountable Tag prices tend to reduce over time and tags can be reutilized The innovative side of this research is the creation of a methodology for the integration of the RFID technology into the productive system of a company to enable the adoption of such technology in companies that aim to increase and improve inventory control and product traceability It is important to point out that this methodology aims to reduce potential impacts on the structure of the company in order to facilitate integration To our knowledge this is the first methodology that integrates Failure Mode and Effect Analysis FMEA into the RFID adoption process FMEA is used to identify the process failures which might compromise the integration of the new system with the previous system Other benefits inherent to the utilization of this technology were observed reduction in lead time reduction of failures in the process and reduction of defects since it became possible to identify and trace problems be
27. n packaging generation of invoice and acquisition of raw materials a series of faults in the reading of barcodes was found It happened with both the components and the parent serial number of the machines It also occurred that a damaged label was attached to the JISTEM Brazil Vol 11 No 1 Jan Apr 2014 pp 65 84 www jistem fea usp br Ol Use of RFID technology to overcome inefficiencies in the production process An analysis of a 75 microcomputer company in Ilh us BA Brazil machine Because of that the recommended action is substituting the barcodes BCs for RFID tags because the RFID tag is more resistant to dirt impact and mechanical friction than the BC label It is impossible to guarantee that all the tags were adequately read by the equipment but the error rate of the RFID readers is extremely small according to specifications less than 1 3 Identification of Parts with RFID Tags Faults were detected in the selection of I O products mouse keyboard loudspeakers and also user manual and CDs of drivers and in the insertion of these parts in the packaging due to wrong manual operation Therefore the recommended action is to identify the I O products with RFID tags and to group them with a RFID tag with the parent serial number of the packaging of the product via ERP system Even though the RFID tag may be expensive in relation to the cost of the items they can be used many times recycled so their cost is reduce
28. ns for the RFID gadgets For some applications the technology is reasonably consolidated while for others there is still a need of new gadgets security protocols and reductions in the price of tags In this section a literature review is presented with a list of advantages and disadvantages of RFID technology Such factors were taken into consideration when the company decided to implement RFID technology Advantages of the use of RFID technology In a multitude of industrial contexts implementing RFID technology has shown to improve operations supply chain and logistical systems by reducing forecasting errors and increasing delivery times Dutta et al 2007 Kach and Borzabad 2011 The use of RFID technology seems particularly useful within fast moving consumer goods markets since it allows for real time visibility of the supply chain Bottani et al 2010 Higher material transparency within organizational systems allows for more accurate forecasting effectively reducing any inefficiencies that may exist within the supply chain Delen et al 2007 Kach and Borzabad 2011 RFID can also be beneficial in managing supply chains Relying on an increasingly large number of suppliers can make the information flow across all parties difficult RFID tags and the technology behind them allow for rapid automated item identification without the need of a physical operator increasing inventory allocation efficiencies Through the provision of real t
29. nted below This methodology has not been tested before This was the first attempt to systematize it The methodology can be applied to the other companies in the P lo de Inform tica de Ilh us since no other company possessed RFID technology at the time the study was done In the global market there are still many microcomputer companies that still have not made use of RFID technology These companies could benefit from its many advantages as listed in section 5 4 METHODOLOGY Figure 1 presents the flowchart of the methodology that was developed detailing each step of the technical viability analysis It reports the procedures that guided the case study in the company which will be named XYZ for confidentiality purposes This company was chosen because it had all the limitations and characteristics of other companies of the region as mentioned previously Even though the methodology contemplates a return on investment analysis this step will not be presented in this paper for brevity purposes It is suffice to say that the JISTEM Brazil Vol 11 No 1 Jan Apr 2014 pp 65 84 www jistem fea usp br COMMO 70 Ara jo Filho F W C Travassos X L T Figueiredo P S Internal Rate of Return IRR was 15 ensuring a large NPV Net Present Value for the firm Ara jo Filho et al 2013 For other papers focusing on economic feasibility check Balocco et al 2011 and Jones et al 2007 The problem of the tag price was minimized
30. premise that the technology can be implemented however it is necessary to identify the process failures which might compromise the integration with the previous system This was done by applying FMEA Therefore in order to enable the integration process it is necessary to identify the process failures listed below in item 3 so that they be evaluated eliminated or in the worst scenario minimized In order to do so a Failure Mode and Effect Analysis FMEA study was carried out and is JISTEM Brazil Vol 11 No 1 Jan Apr 2014 pp 65 84 www jistem fea usp br cc IE Use of RFID technology to overcome inefficiencies in the production process An analysis of a 69 microcomputer company in Ilh us BA Brazil presented and explained below FMEA was one of the first systematic techniques for failure analysis It was developed by reliability engineers in the 1950s to study problems that might arise from malfunctions of military systems An FMEA is often the first step of a system reliability study It involves reviewing as many components assemblies and subsystems as possible to identify failure modes and their causes and effects Santos and Cabral 2008 3 PROCESS FMEA Among the many tools used for fault analysis Ishikawa diagram Fault Tree Analysis Pareto Chart 5 Whys Quality Control story among others FMEA was the most adequate for the company because the use of this methodology shows the process systematically aggregate
31. razil ABSTRACT This paper presents a methodology for the integration of RFID technology into microcomputer assembly companies Such a technology enables inventory control tracking of parts products and customer satisfaction The methodology was developed to identify and evaluate the production process in an assembly company and to apply the process FMEA to evaluate potential faults and propose improvement actions for the use of RFID technology The methodology was validated in a company from the P lo de Inform tica de Ilh us BA In this study the viability of RFID technology for inventory control and traceability of the product was confirmed Among the benefits obtained were the reduction of one of the workers from the inventory team reduction in the costs of substituting a component and reduction in lead time Keywords RFID Process FMEA Site Survey Process Automation Inventory Management 1 INTRODUCTION According to Whang 2010 Radio Frequency Identification RFID has been hailed as a major innovation to enhance the efficiency of inventory management Gaukler et al 2004 and supply chain management Heinrich 2005 The basic premise Manuscript first received Recebido em 14 09 2012 Manuscript accepted Aprovado em 05 02 2014 Address for correspondence Endere o para correspond ncia Frederico Wergne de Castro Ara jo Filho Integrated Center of Manufacture and Technology National Service of Industrial Learning
32. ry If there is a problem a communication to the Board of Directors of the company is performed which in turn will decide if the goods will be given back to the supplier or if they will be accepted into the inventory After the goods are put into the inventory barcodes are generated and printed for the components Just after the printing of barcodes they are attached to the components and read by an optical reader so that the information enters the Integrated Enterprise Control System IECS Finally the components are stored in the inventory 4 1 3 Description of the Process of Computer Assembly The process of computer assembly is initiated with the generation of a sales order SO by the ERP system of the sales team located in the southeast of the country The inventory manager generates the Production Order PO in an ERP system different from the one used by the sales team Therefore the factory is obliged to feed the system manually because there is no integration between databases This was changed radically with the new process Once the RFID began to be used the factory fed the system automatically by using new software that was integrated with the existing system In case a few items are not in the inventory they are substituted for equivalent or superior items In this phase the barcodes for the power supply unit and for the lot of products serial number are generated The RFID tags will help in this phase because it will be po
33. s more information in the descriptions of the process and identifies causes of faults in the process of microcomputer assembly Santos and Cabral 2008 Failure Mode and Effects Analysis FMEA was one of the first systematic techniques for failure analysis It was developed by reliability engineers in the 1950s to study problems that might arise from malfunctions of military systems An FMEA is often the first step of a system reliability study It involves reviewing as many components assemblies and subsystems as possible to identify failure modes and their causes and effects For each component the failure modes and their resulting effects on the rest of the system are recorded in a specific FMEA worksheet There are numerous variations of such worksheets An FMEA is mainly a qualitative analysis According to Stamatis 2003 the factors severity occurrence and detection are calculated by experts according to the scale of values which in most cases is set from 1 to 10 based on criteria of evaluation defined in common agreement by the team The RPN Risk Priority Number is a measure of risk of a fault in a certain step of the process and should be used to classify faults and prioritize the actions Actions are recommended with priority given to those faults that achieved the highest RPN Using this concept a methodology was developed to integrate RFID technology into the supply chain of the microcomputer assembly company which will be prese
34. s was efficient Araujo Filho Travassos and Figueiredo 2013 The tool details the process systematically and adds more information to the process descriptions It also identifies the causes of failures in the production process The difference between the process before and after the FMEA tool being implemented is that the most important failure modes are taken care of with preventive measures being taken in order to avoid the failures Another important point were the technical evaluations performed for tag selection choice of RFID equipment analysis of the environment and for detecting electromagnetic noises present in the factory Such evaluations helped to ensure the technical efficacy of the chosen technology during in site tests A good RFID reading was obtained at all points where data was collected The technology was so efficient compared with the previous technology barcodes that the time required to read a pallet in the process of generating an invoice was reduced from ninety seconds to seven seconds on average It is important to point out that there are other significant gains inherent to the use of RFID technology which are however difficult to measure Araujo Filho Travassos and Figueiredo 2013 Such gains are shared by the entire commodity chain because with real time inventory control the suppliers of this company will be able to monitor the flow of parts and ensure that their customer the company will have its needs f
35. ssible to know exactly what is in stock After this phase the PO is printed and taken to the inventory team The team separates the cases and the power supply units according to the PO and the other parts Motherboard Hard Disc Processor and DVD in the inventory Once the RFID system is used all the parts will arrive already with their tags JISTEM Brazil Vol 11 No 1 Jan Apr 2014 pp 65 84 www jistem fea usp br Ol 72 Ara jo Filho F W C Travassos X L T Figueiredo P S The cases and power supply units are taken to the Case Preparation sector which also attaches the power supply unit Parallel to this activity the other parts are checked by the KIT preparation team In this stage the motherboard processor cooler and memory are attached The inspection process uses software to determine the condition of the parts After the case is prepared with the power source the stages of assembly are performed e 1 Post Attach HD DVD and serial number to the case and attach barcode BC of the power supply unit e 2 Post Attach front part of the case e 3 Post Connect frontal cables LEDs USB POWER and RESET on the motherboard e 4 Post Attach KIT to the case and connect power source cable to the motherboard HD and DVD e 5 Post Tie the power cables with clamps e 6 Post Attach SATA cable to HD and DVD e 7 Post Fasten sides of the case e 8 Post Insert Configuration Label on the side of
36. tenna to the input port of the spectrum analyzer via coaxial cable JISTEM Brazil Vol 11 No 1 Jan Apr 2014 pp 65 84 www jistem fea usp br Ol 78 Ara jo Filho F W C Travassos X L T Figueiredo P S c Connect the laptop to the spectrum analyzer using an RS 232 connector or Ethernet If you use a laptop to record data you must configure the virtual display to record the information every time and save it on your hard disk Or else you should shoot capture the monitor spectrum analyzer every two hours during the normal cycle of operation d Set the spectrum analyzer for the operating frequency to be used with the RFID system 4 Perform Itinerant Capture To perform the itinerant capture you must configure the equipment as follows a Set the spectrum analyzer exactly the same way as configured in static capturing except for the voltage source and the antenna that should be mobile b b If any source of interference is found its exact location must be identified 5 Map the areas of interrogation in the project locating sources of interference 4 3 2 1 Site Survey at XYZ The site survey was performed in the areas of interrogation according to Figure 3 on the places where the KIT preparation Figure 4 generation of invoice Figure 5 and entry of raw materials occur Figure 6 For the static capture images from the spectrum analyzer were recorded every 2 hours in each place with a cycle of 24 hours beg
37. tudy The test consists in adjusting the power of the reader to the maximum position and making 100 reading attempts with the tag from a fixed distance In order to simulate other distances the power of the reader should be attenuated by 0 5dBm for every 100 reading attempts The rate of response is the number of successful After the pre selection of tags such performance tests were done with the SteelWave Micro tag for the components motherboard HD DVD RAM memory power supply unit and case and with the ALN 9640 tag for the packaging box AII these tests were performed in the microelectronics lab We must admit that results may vary www jistem fea usp br Use of RFID technology to overcome inefficiencies in the production process An analysis of a 77 microcomputer company in Ilh us BA Brazil since the manufacturing environment is slightly different from the microelectronics lab we tried to mimic the conditions as much as possible We believe that our choice of tag was the best considering the availability in the market The tag can be affixed to all parts including the RAM memory The fixed distance used for the tests was approximately 70cm 2cm To ensure more reliability from results 4 experiments were run for each tag totaling 10 800 reading attempts Readings were successful with metal parts and with the closed computer case Figure 2 presents the tests performed on the machine s components motherboard HD DVD r
38. ulfilled This real time monitoring between supplier and company is replicated in the remaining links of the chain which ensures better service quality to the end consumer and reduction of logistical and operational costs In such a condition the component can be tracked from the first supplier to the end consumer Fosso Wamba and Chatfield 2009 There is a need to conduct further research on the RFID supply chain management applications in the microcomputer sector as this area holds a great potential JISTEM Brazil Vol 11 No 1 Jan Apr 2014 pp 65 84 www jistem fea usp br Ol 82 Ara jo Filho F W C Travassos X L T Figueiredo P S for performance improvements Additionally there is a need to conduct more in depth research into the isolated impact of RFID technology in comparison to the change in management and process redesign that it generates One key limitation of this research is the case study approach based on a single case This paper however provides direction for practitioners on how to assess RFID s potential impact in the microcomputer assembly process from the receiving of supplies to the delivery of final products This research contributes to our understanding of RFID s potential in intra organizational supply chain management processes Hopefully the experience and lessons learned from this case study can be shared with the readers and they will be beneficial to those organizations that are contemplating the
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