When we talk about a connected factory, we envision a factory that is highly automated, has streamlined processes, and robust supply chain networks with item-level visibility and tracking. A connected factory essentially means that all the manufacturing processes are streamlined and various kinds of operational data are automatically captured with great accuracy. Now, when it comes to automatic data capture, a large factory can produce 70 TB of Big Data daily, and without sufficient infrastructure to capture and clean this data and get meaningful insights, the production line remains inefficient.
As per a survey, 31% of connected factories will be using RFID technology in the next 5 years, and 97% of factories are planning to use RFID for automatic data capture and operational efficiency by 2029.
Why RFID is the Preferred Technology for Connected Factories, Manufacturing Automation?
RFID technology is not new. It has been in use for automatic identification and data capture for decades now and businesses like retail, supply chain, healthcare, and (smart) manufacturing have been using it for accurate data capture and processing. In manufacturing and production hubs, RFID technology enhances data capture, streamlines processes, mitigates supply chain delays and ensures visibility throughout the production ecosystem.
In connected factories, RFID is the preferred technology for the following reasons:
1.It can seamlessly connect various assets.
2. RFID offers automated visibility.
3. It can streamline manufacturing processes.
4. With the declining cost of RFID, it is a feasible choice.
How RFID Works in a Connected Factory?
Modern manufacturing struggles with the visibility gap. Presently on average, only 16% of firms have real-time monitoring across their entire manufacturing process. With rapid RFID adoption by businesses in Asia, Europe, and North America, the share of connected factories using RFID is bound to increase as having complete visibility on supply chain and logistics, procurement processes, warehousing, production lines, and order fulfillment is crucial for a connected factory.
RFID employs electromagnetic fields (radio frequency signals) to automatically identify and track tags attached to objects. These tags contain microchips and antenna lines that can store and transmit information, and read from a distance using RFID readers. The technology operates in various frequency ranges (LF, HF, and UHF RFID), allowing it to be tailored to specific applications in manufacturing and supply chain management. As factories adopt RFID systems, they create interconnected environments where data flows seamlessly, enabling real-time monitoring and operational efficiency.
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Benefits of RFID in Manufacturing and Production Hubs
The prominent benefits RFID technology offers in connected factories are as follows:
1.Enhanced Data Capture with RFID
One of the most significant benefits of RFID technology is its ability to capture data in real-time. Traditional data collection methods, such as barcodes, often require line-of-sight scanning, which can lead to delays and inaccuracies. RFID tags, on the other hand, can be read from several feet away, allowing for faster and more efficient data collection. It enables manufacturers to gather critical information regarding inventory levels, equipment status, and product movement, which can be analyzed to optimize operations and resource allocation. With a high level of data capture accuracy, it is easier for manufacturing and production lines to make data-driven decisions and optimize the production and movement of finished goods.
2. Streamlined Processes
The integration of RFID technology into manufacturing processes leads to improved workflow and reduced operational bottlenecks. RFID minimizes manual handling and the associated errors by automating inventory tracking and monitoring. Automation not only speeds up production cycles but also allows workers to focus on higher-value tasks, ultimately enhancing overall productivity. Additionally, streamlined processes contribute to lean manufacturing practices, reducing waste and improving cost-effectiveness.
3. Prevention of Supply Chain Delays
Supply chain disruptions can be costly and detrimental to manufacturing operations. RFID technology plays a crucial role in preventing such delays by providing real-time visibility into inventory levels and production schedules. Manufacturers can monitor the movement of raw materials and finished goods throughout the supply chain, identifying potential bottlenecks before they escalate into significant issues. Such a proactive approach allows for timely adjustments to be made, ensuring that production timelines are met and customer demands are satisfied.
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4. Visibility throughout the Production Ecosystem
The interconnected nature of RFID technology fosters a high level of visibility across the entire production ecosystem. Stakeholders, including manufacturers, suppliers, and logistics providers, can access real-time data regarding product status, location, and availability. The increased transparency enhances collaboration among partners, enabling them to make informed decisions based on accurate, up-to-date information. Moreover, improved visibility facilitates compliance with industry regulations and standards, as manufacturers can easily track and document the movement of goods.
5. Improved Inventory Management
Effective inventory management is critical for the success of any manufacturing operation. RFID technology enables manufacturers to maintain accurate inventory records, reducing the risk of stockouts or overstock situations. Therefore, by providing real-time data on inventory levels, RFID allows for more strategic forecasting and planning, ensuring that production meets demand without tying up excessive capital in unsold goods.
To summarize, RFID technology is revolutionizing the manufacturing landscape by ensuring connected factories that benefit production hubs through enhanced data capture, streamlined processes, and improved visibility. Integration of RFID technology empowers manufacturers to operate with greater agility and precision by preventing supply chain delays and facilitating efficient inventory management. The future of manufacturing and connected factories is undeniably intertwined with the advancements of RFID technology, paving the way for more efficient, responsive, and sustainable production practices.
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