How RFID Enhances Efficiency In Automotive Manufacturing

How RFID Enhances Efficiency In Automotive Manufacturing

The logistics of running an automotive factory can be complex, such as having employees complete various different and complicated activities at one time. Globalisation of the automotive industry has even made competition stiffer for car manufacturers; most of them are lowering their prices while still trying to maintain their profits and stay ahead of competitors.

Therefore, technology like RFID asset tracking system was introduced to improve efficiency and performance in operations. Similarly, it also bolsters security and enhances health and safety protocols.

Continue reading on to find out how technology is revolutionising the automotive industry.

Verification

Content verification is an important aspect of the automotive industry. There’s a need to ensure that all parts are in the respective places and to keep track of the inventory count; to know when replenishment of components is needed – a JIT (just in time) concept.

By adding RFID tags to a vehicle, for example, high-value speciality vehicles like ambulances, helps to identify whether the right part is added to the vehicle automatically. With this part of the business managed, staff can also focus on other operations to help speed up the delivery of inventory corresponding to the completion of products.

Streamline operations

Through the use of wide-area RFID technology, manufacturers of vehicle parts ensure that these materials needed for a specific stage in the manufacturing process are present where and when required. This ensures that the production line flows smoothly and uninterrupted as parts needed will be available at the right time.

Smoothing operations processes applies to every business, particularly for companies with global supply chains as RFID helps to boost efficiency, reduce inventory wastage, optimise and maximise production processes.

Staging

Human errors lead to rework, it consumes time that are non productive. Additionally, reworking inventory adds to the total costs which leads to budget overruns with added production overheads which the manufacturing company needs to control.

The same is applicable for retail businesses, human errors made during inventory count will result in incorrect supply of clothing or accessories that will affect sales when a customer is looking for a product. However, with RFID retail technology, item visibility makes replenishment more accurate and effective. Additionally, POS RFID systems used in retail businesses speed up the checkout processes leading to customer satisfaction and experience.

Similarly, for automotive manufacturing businesses, by making the staging door completely visible – wide-area RFID improves the efficiency of the manufacturing process. As such, it helps in tracing any missing items and any misplaced ones easily. In the staging process using RFID, corrections can be made in real-time, and monitored to reduce wastage. This also reduces the impact of errors caused by staff during the manufacturing process.

Shipment and receiving

RFID has changed the way automotive warehouses ship and receives cargo. The introduction of RFID technology has enabled automated receiving through source tagging individual items at the suppliers or manufacturing facilities. With added RFID tags to assets, shipments are automatically identified once they go past the entry gates.

RFID has also led to an improvement in the shipping and receivership accuracy by eliminating human error. This creates an ideal supply chain model, with the ability to identify items from end to end.

Assets will also be verified against the purchase order, and workers can receive instructions on the next action to take. All inventories are organised and damaged goods, backorders, and regular shipments will be sent to their appropriate locations within the warehouse.

From the emergence of RFID tool tracking systems to RFID tags, there are different types of technology which helps in elevating the productivity for automotive manufacturing businesses.