RFID

Automation is changing the way factories operate, and RFID enables automation of supply chain functions such as inventory, supplier management, and equipment monitoring.

10 May 2023 Imagine an industrial production environment where inventory, materials, suppliers, and equipment constantly communicate to optimize operational efficiency. This environment becomes reality thanks to the Industrial Internet of Things (IIoT), which integrates IT infrastructure with operational technology to create smart factories. Information derived from inventory levels, operational performance over time, and supplier coordination can significantly improve a factory’s operational efficiency.

There are several ways in which IIoT makes the smart factory possible, including through radio-frequency identification (RFID) and Near Field Communication (NFC) technologies. However, before exploring them, it is worth reviewing the characteristics that differentiate a smart factory from a traditional one.

IIoT is driving the adoption rate of connected devices in industrial production thanks to its numerous advantages. The first level represents the historical benefits that manufacturers gain by using artificial intelligence (AI) and machine learning (ML) as part of their process:

• Improved inventory control: insights can help companies manage the excess supply/inventory ratio, a significant key performance indicator (KPI) for operations leaders that reduces order management and material handling costs.
• Lower production costs thanks to higher overall equipment effectiveness (OEE): using collected data and artificial intelligence, the smart factory adjusts production flow to maximize uptime, identify patterns, and predict demand changes. This approach also optimizes resources to improve output and energy efficiency.
• Improved quality and reduced scrap: collecting significant amounts of data during production gives operators detailed information on equipment lifecycle. This view enables them to uncover trends in tool wear and predict the next likely failure point, reducing both repair costs and the downtime needed to perform it.

With these three improvements, IIoT can enable decentralization to increase supply resilience without the inefficiencies observed during recent supply shocks. In addition, this approach allows companies to collaborate with new supply partners who can quickly acquire expertise on technology or processes that are new to the manufacturer.

RFID and NFC make the smart factory. How?

RFID creates a unique, serialized identification of connected equipment for error‑proof data transfer. This “fingerprint” can improve inventory management by quickly assessing existing supply and automatically triggering a replenishment order. Inventory managers assign order thresholds and quantities that determine when and how much the ordering software should request.
The unique RFID identification label can also track assets anywhere, alerting procurement and supply chain team members to a problem in shipment. In addition, it can track transit stages and the time between them to help logistics optimize component routing, reducing lead times and potential inventory levels.
Smart factories combine digital information and physical assets to extend production capabilities. The data already exists, so the challenge to optimize benefits is to collect and transmit communication between entities in both directions. The bidirectional flow of information offers a substantial advantage over traditional barcodes or QR codes, creating a critical feedback loop.

NFC, a subset of RFID, does exactly this. It turns the component or subassembly into a communication tool, indicating to operators the current production stage through an active scan. This advantage can reduce the need for mid‑process checks that create inefficiency while helping identify an error through data history. Although they are not passive, NFC tags can provide data from inside a machine with a user “tap and go”. They can communicate data related to pressure, humidity, temperature, vibration, utilization, and condition history.
Another advantage of NFC is that it instantly links the failure location to a machine, thereby alerting the operator to the problem. Assuming the factory has redundant equipment, the software can route subsequent parts to another device to keep production running while the team repairs the broken mechanism.

Data collection enables artificial intelligence to deliver these benefits to the smart factory, and RFID ensures the system uses the data correctly. Proper knowledge and control of environmental conditions and asset health can increase uptime and asset lifespan.
While companies must always overcome challenges when implementing disruptive change in an industry, manufacturing is leaping toward Industry 4.0 thanks to the near‑universal adoption of IIoT. As a result, manufacturers can achieve optimized inventory, lower operating costs, and higher quality through accurate data on the location, condition, or history of a component. RFID and NFC technologies are bringing this information into production, improving supply chain functions and plant operational efficiency.
IIoT is driving the shift toward a standardized, decentralized, and connected supply chain. RFID and NFC enable this rapid progress to create an exciting turning point for industrial production.

Credits: RFID Journal – Adam Kimmel