Successful implementation of RFID project in the largest manufacturing field in South China
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Project Background
China is a big manufacturing country, and Guangdong is China’s most important manufacturing base. The biggest advantage of China’s manufacturing industry lies in its cost advantage, but in 2008 Chinese manufacturing enterprises are facing severe challenges.
Resource prices, basic raw materials such as oil and metals have risen sharply, leading to a substantial increase in the cost of manufacturing raw materials
The energy and environmental protection situation is severe, and energy conservation and emission reduction have become one of the important evaluation indicators of the government to enterprises.
The RMB exchange rate has broken through the 1:7 mark, and the appreciation of the RMB directly affects the export costs of manufacturing companies.
The promulgation of the new “Labor Contract Law” has further increased the labor cost of enterprises
The overall economic growth in the periphery has slowed down, and there has even been a recession in some parts, which has led to a continuous decrease in overall demand
Manufacturing enterprises in Guangdong Province and even the whole of China must overcome the current difficulties, occupy new commanding heights in the fierce market competition, and continue to maintain their competitive advantages. It is imperative to save energy and tap potentials, control costs, improve production efficiency, and reduce labor costs. . The successful application of RFID technology in the supply chain management of manufacturing enterprises is an important means for the transformation of traditional manufacturing enterprises to modern enterprises, and will be an important part of Guangdong Province’s “double transfer”.
With the changes in the international and domestic economic environment, Guangdong’s traditional and original resource advantages are gradually lost, forcing Guangdong’s traditional manufacturing companies to find new countermeasures. RFID-based supply chain management applications, development and services for manufacturing enterprises will effectively reduce labor, save costs, reduce error rates, and improve labor efficiency for traditional manufacturing enterprises, which will be accepted by more and more manufacturing enterprises.
The selected case was implemented in Heshan Artus Printing Co., Ltd., and was awarded the Best RFID Implementation Project Award by Motorola in Bangkok, Thailand in 2008 by Motorola in Greater China.
Introduction of Heshan Artos Printing Co., Ltd.
Heshan Artos Printing Co., Ltd. is a Hong Kong-owned company founded in 1991. It is a member of Leo Paper Printing Group. After more than ten years of steady operation, it has developed into the world’s largest printing company that provides one-stop service solutions. One of the manufacturers. Artox now has more than 18,000 registered employees and more than 10,000 temporary employees. It covers an area of nearly 1,000 acres, with a construction area of more than 700,000 square meters, with a cumulative investment of 1.873 billion Hong Kong dollars and an export value of 1.78 billion yuan in 2007. In recent years, Artos has been awarded “China’s Outstanding Corporate Citizen”, “National Hundred Star Overseas Chinese Enterprises”, “National Integrity Printing Enterprise”, “China’s Top 500 Quality Companies”, “China’s 500 Largest Import and Export Enterprises”, “Guangdong Province’s Top 100 Foreign Exchange Earnings”, “Guangdong Province Civilized Units”, “First 100 Guangdong Province Advanced Enterprises with Harmonious Labor Relations”, “Top Ten Foreign Invested Enterprises in Jiangmen Region”, “Jiangmen Contract-abiding and Credit-keeping Enterprises”, “Heshan City Taxpayer” and other awards, and successfully established “National Packaging and Printing Standardization Research and Technology Promotion Base” and “Guangdong Province Printing New Materials and New Technology Engineering Technology Research and Development Center”.
For a long time, Artos upholds the management tenet of “people-oriented, policy-oriented, quality-oriented, fruit-oriented”, continuously improving the quality of employees, product and service quality, innovative technology and production capabilities, and providing customers with professional All-round problem solution. At the same time, Artos has also obtained ISO9001: 2000 international quality management system certification, ISO14001 environmental protection system certification, OHSAS 18001 occupational health and safety management system certification and ISO27001 information security management system certification to ensure that the company is in production, environmental protection, occupational safety and health, Information security and other aspects are in line with international standards. In terms of social responsibility, Artos is abiding by the law, operating with integrity, and is committed to creating a working and living environment for employees to grow and develop and live and work in peace. In addition, Artos is enthusiastic in supporting social welfare undertakings, especially in education, medical care, and local infrastructure construction. Since the establishment of the company, the accumulated donation has exceeded 35 million RMB.
Artos has advanced production technology and strong production capacity, and can print, process and produce various types of paper products in an all-round way to meet the needs of different customers. At present, the main products include hardcover books, children’s educational books, pop-up books, stationery, greeting cards, packaging supplies, gift boxes, paper bags, game sets, etc. At present, 100% of the company’s products are exported to Europe, the United States, Australia and Asia and other parts of the world.
Looking forward to the future, Artos will continue to increase domestic investment, and build Artos into a modern printing city with harmonious development, excellent management, good efficiency, huge scale, and strong cultural atmosphere, and become a world leader in the printing and communication industry. Ambitious goals.
Project implementation process and content
Participating cases implemented RFID manufacturing and logistics supply chain management for the entire process of Artos printing production line from raw materials to finished products delivery.
Since 2006, Artos has begun to prepare, design, develop and successfully implement RFID technology, especially the application of UHF RFID technology in the management of finished products, in order to achieve paperless, fewer people, automation and Visualized management goals. At present, there are more than 30 workshops in 9 workshops of the whole factory, all finished product warehouses, all finished product loading and unloading platforms, and other finished product related departments such as finished product quality sampling inspection department, etc., have been equipped with RFID testing equipment and successfully operated.
The completed RFID technical transformation mainly includes two parts:
1. Process and facility equipment transformation. The main tasks include:
• Design and transform the loading and unloading platform of the main factory area
• Design and build the loading and unloading platform of the new plant
• Design a comprehensive processing center for finished products in the new plant
• Design the pallet conveyor belt system for the 6th and 7th plants
• Design and build a first-in-first-out automated racking system
2. RFID system development and implementation
• Successfully implemented RFID finished product management
Artox plans to apply RFID technology to the production link of printing based on the existing RFID finished product management, RFID middleware, and self-developed ERP system, so as to truly exert the powerful effects of RFID.
The in-depth application of RFID technology in the field of manufacturing is bound to further bring a qualitative leap in Artox’s production and business. The application of a similar model will also be able to bring changes to other manufacturing enterprises, so the RFID application suggested in this case is feasible and worthy of further discussion.
Actual results of the selected cases
1. Save labor
The total number of factory workers decreased from 28,000 in 2007 to 22,000 in 2008;
2. Reduce direct costs
If the average salary is calculated at 1500, the labor cost will be saved in 3 years by 1500 X 6000 X 3 = 27 million;
3. Reduce the error rate
Reduce error loss by 5%;
4. Improve production efficiency
Production, warehousing and loading and unloading capacity have maintained steady growth; the average finished product processing efficiency has increased by more than 50% compared with the same period; the highest finished product processing efficiency has exceeded 100% compared with the same period;
The key problem solved by the case
1. Low accuracy and unreliability caused by manual data collection
Production companies in Guangdong and even southern China generally use manual or more traditional electronic systems to collect production and related data. A few large companies that use ERP systems actually rely on human hands to collect data. According to the findings of human factors engineering, people have considerable uncertainty, so the data collected manually will inevitably produce errors, omissions and other inaccuracy.
The application of RFID technology in the manufacturing process can reduce human participation as much as possible and realize automated data collection, thereby solving the problems of low accuracy and unreliable data caused by manual data collection.
2. The data update of the existing system is out of sync
It is difficult for the computer systems used by existing manufacturing enterprises to collect timely data. For example, the most advanced bar code system also requires corresponding trained employees to use bar code guns and other equipment to scan related goods, but the scanned data is often not updated in the system in real time. If the barcode system is not adopted, the relevant data will be manually recorded in the form, and will be entered into the computer system at a fixed time each day. Relevant practices have caused the data in the system to be out of sync with the actual production-related data. As a result, excellent production methods, such as JIT production mode, cannot be realized due to the asynchronous system data.
The advantage of RFID technology lies in the automation and long-distance data collection. The corresponding monitoring equipment can automatically detect the tag data within the coverage area, thus helping to solve the problem of unsynchronized system data update.
3. Data in each link of the supply chain is wasted time, manpower and cost due to repeated entry of data, and increases the possibility of data errors and omissions
Most of the manufacturing enterprises in Guangdong and even South China have not adopted the world’s advanced supply chain production management model, and most of their businesses are actually doing their own business. Raw material data is collected in the raw material supplier’s factory, product data is collected in the processing and assembly factory, and cargo data is collected in the logistics supplier’s warehouse. According to the principle of supply chain, most of the above data can be shared with each other and collected in advance. At that time, due to the inaccuracy and unreliability of data caused by traditional data collection methods, it was difficult to implement the principles of the supply chain.
On the premise of solving the accuracy of data collection, RFID technology can help to penetrate the problem of data duplication in all links of the supply chain. This saves a lot of manpower, material resources and time spent in data collection, and realizes the transformation of traditional manufacturing enterprises to modern manufacturing enterprises through the application of RFID technology.
Innovation points of the participating cases
1. Timely production and related data collection;
2. Through the information flow, capital flow and logistics in the entire supply chain process from the purchase of raw materials to the loading and unloading of finished products;
3. Improve the full-process tracking of materials, semi-finished products and finished products that are automated, paperless and less human;
4. Realize visual management.
The significance of project case promotion
Through the successful application of Artos Printing Co., Ltd., the results can be promoted and expanded to manufacturing enterprises in the Pearl River Delta, and the production efficiency and cost reduction of manufacturing enterprises in the Pearl River Delta will bring about direct economic benefits. It will also stimulate our province. The proportion of the output value of the tertiary industry will promote the sustainable economic development of Guangdong Province; the direct and indirect economic benefits in the logistics field will be in the billions of RMB. From the perspective of social and management benefits, the supply chain management application, development and service of manufacturing enterprises based on radio frequency identification (RFID) technology can achieve:
1. Improve the efficiency of supply chain operations and comprehensively improve the quality of supply chain services;
2. Promote the integration of logistics resources and improve the utilization efficiency of logistics facilities;
3. Reduce inventory, speed up capital turnover, and reduce logistics costs;
4. Improve the investment environment and enhance investment attractiveness;
5. Promote the integration of Guangdong’s manufacturing industry and informatization.
After the successful implementation of RFID technology in the manufacturing process and technology of Artoz, the project results will be modularized, functionalized and productized, and gradually start from similar manufacturers to promote related manufacturing enterprises in other industries. RFID technology application. Adopt a widely popularized and focused follow-up market promotion method to spread the successful implementation of Artos RFID technology to the manufacturing enterprises in Guangdong and South China, and help related manufacturing enterprises to adopt high-tech to successfully transform and make a transition. Through the current severe winter and predicament.
This case is the first project to apply RFID technology to a manufacturing enterprise in Guangdong Province and even South China. Thanks to the production scale and application determination of Artos, the breadth, precision and depth of the application of RFID technology in this case It will be unprecedented in history, with very important reference and reference value.
This case focuses on the application of advanced information technology to traditional manufacturing companies. Through the transformation and optimization of traditional manufacturing companies’ production processes and processes, the supply chain management capabilities of manufacturing companies are improved, and manufacturing companies can successfully reform and transform, and improve the accuracy of data collection. Increasing the breadth of information application, increasing the depth of technological innovation, and enhancing the competitiveness of enterprises are leading attempts in the province and the country to help manufacturing enterprises reform and transform RFID technology.
The successful application of RFID technology in Artox will help manufacturing companies in Guangdong and South China to break through the siege, survive the severe winter, successfully transform to high-end, and provide a feasible way out for technology and brand innovation. RFID technology has been in heated discussion in recent years but lacks practical application cases. Artos dared to try to use RFID technology for finished product management first, and achieved results that exceeded expectations. There is reason to believe that the deepening application of RFID technology in the field of manufacturing will facilitate the popularization and promotion of RFID technology in manufacturing enterprises in the Pearl River Delta, South China and even the whole country, and will enable RFID technology to achieve greater development in China.
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