Harsh Reality for RFID & RTLS -- It's About the ROI

Just presented at RFID Journal's RFID in Harsh Environments event on the evolving business case and ROI metrics for RFID.   The definition of "Harsh Environments" is quite broad, but it generally applies to extreme temperatures/operating conditions, remote worksites and hazardous or highly-regulated materials.   Harsh Environments span multiple industries including Oil & Gas, Chemicals, Aerospace & Defense, Healthcare and Industrial Equipment -- as shown below:

RFID Application Areas in Harsh Environments

Once we get past the definition of a harsh environment, it's important to look at the value drivers for RFID and RTLS (we support all Auto-ID modalities, so we use the terms interchangeably).   The industries listed above, by nature, have complex asset management challenges that are well suited to RFID automation.   We see three primary drivers for RFID adoption in harsh environments:

1. Cost Pressure -- where 100s of millions of dollars/euros/pounds of capital equipment impacts working capital allocation -- a reduction in redundant equipment or write-off/repair of non-working assets can have an impact on operating profit.
2. New Programs -- with new exploration projects, aircraft programs, infrastructure projects comes revenue opportunity -- and customer scrutiny.  Customers are increasingly demanding transparency for programs in progress - not just at critical milestones.  RFID visibility can help provide this transparency, leading to stronger partnerships and minimizing the risk of contract breach.
3. Operational Risk -- the only way to address compliance, audit and safety issues is to build error proofing into the process automation. 

WIP Transparency: One Reason Aerospace and Defense Firms Are Adopting RFID

An article in this month's issue of Manufacturing Engineering, 5 Trends Driving RFID Adoption in Aerospace and Defense, outlines why the complexity of A&D operations makes it a good fit for RFID process automation.

Sept 2013 Manufacturing Engineering Article

WIP Transparency is one of the key trends driving adoption of RFID in A&D.

End customers are increasingly requesting visibility into Work-in-Process, well before a product is scheduled for final assembly and delivery.  

With a customer facing process, there’s nothing to hide – for an aircraft manufacturer who provides custom variations (like protective options for law enforcement, or specialized avionics, there’s no component substitution. 

RFID tracking helps keep work orders on schedule, locating and pre-staging raw materials, components, tooling and conveyances prior to each process step, and providing WIP visibility to the end-customer.   

Here's a typical WIP tracking process automated with RFID:

Automating Work-in-Process Tracking with RFID

Customer-facing processes get attention from the highest levels.  Many manufacturers are justifying RFID automation with improved on-time delivery percentages and cost savings from rework, expedite fees, discounting and contract fines.

 

How to Track Tools with RFID

OAT Systems Engineer Kapil Asher demonstrates how to track hand tools, tooling, specialized equipment and conveyances with RFID technology

From bearing pullers to digital calipers to composite tooling, jigs, right-to-use tools and FOD prevention, a flexible RFID tracking system has it covered.