The relationship between the automotive sector and RFID goes back as far as the key fob and placing chips on the chassis. The relationship now is how RFID can be integrated in the factory, used for container management as well was yard management.
The best news for manufacturing companies is that the ROI on RFID is robust and in some applications, quite quick.
Honda Italia, Industriale, the Italian subsidiary of the Honda Motor Co. and leader in the 2 wheels worldwide market with more than 12.7 million PTW (powered two wheels) models sold in 2006, is an example of how a company successfully integrated RFID on one of its scooter lines while finding benefits beyond ROI. The company underwent an extensive pilot program before rolling out a full RFID program for their ASSi line of scooters produced at their plant in Atessa, Italy. They set up general guidelines for implementation of the program which included the following:
- VIN progression tracking along the supply chain
- Pull approach in the operative production management
- Change on management support (Communication, Organizational alignment, Operational training)
- Future extension to engine line assembly
The RFID tag is part of an overall integration with the entire manufacturing production. In the factory the VIN code is stored on the RFID tag/label and is read on specific RFID reading points on the assembly line. The RFID system checks all the Tag reads and sends Alerts or Notifications for errors during operations or for parts replenishment. The VIN code is stored on a RFID tag/label, tag of critical parts, attached to the first item of the critical parts cage at the location and is read using a RFID reading drawer/hole. The RFID System creates a request of critical parts to supply to the assembly line
"This system allows for a reduction in the work in process, as well as quality improvement. Furthermore we have reduced the need for adjustment after the scooters are sold," explains Nicola Marrone, RFID Project Executive, Honda Italia.
From a supply chain perspective, Honda has better tracing ability as well as improving critical parts availability which reduced assembly line stops due to parts shortages.
"We viewed RFID technology as a continuous improvement. We assembled the necessary team members and worked closely together throughout the pilot and implementation," said Marrone.
IBM, which developed a customized software solution to enable the project, was an active partner throughout. "The teamwork effort was so successful that we are now all working on expanding the system to Honda's suppliers," explains Armando Grosso, the Honda Italia client representative at IBM.
View article on one page