Application plan of radio frequency technology in Changchun FAW International Logistics Center
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1. Basic situation
Changchun FAW International Logistics Center, established in July 1997, is a wholly-owned subsidiary of China FAW Import and Export Corporation. It has domestic first-class logistics automation facilities, and the largest parts dismantling center and basket distribution center in Northeast China. Provide container warehousing management and just-in-time logistics and distribution services for import and export goods of FAW Car (000800, shares), FAW-Volkswagen, Changchun Fawer-Johnson Controls Automotive Trim Company, FAW Jiefang, FAW Fengyue Company and other enterprises.
a) Background and basis
Changchun FAW International Logistics Center is now mainly responsible for the logistics and distribution business of FAW-Volkswagen CKD parts and localized parts. In order to cooperate with FAW-Volkswagen’s production capacity planning during the 12th Five-Year Plan period, combined with the advanced concepts of digital warehouse management and future development trends, RFID radio frequency technology must be introduced.
b) Main content
Apply RFID wireless technology to the WMS warehousing information management of Changchun FAW International Logistics Center and the fully automated digital three-dimensional racking warehouse system in the future.
Mainly research the following contents: RFID electronic tag management, appliance management, personnel management, vehicle management, asset management, forklift positioning, etc. Realize the management of personnel, equipment and forklifts, so as to avoid the loss of equipment, the undisciplined staff, the random parking of vehicles, illegal driving, parking lot management and other situations that affect production and safety.
c) The necessity of introducing Motorola’s radio frequency technology
Motorola’s strong technical strength and the background of an international company are an important reason that attracts our attention. In the field of information technology, an industry is often built around one or several standards. “Third-rate enterprises make products, second-rate enterprises make technology, and first-class enterprises make standards”, a professional technology will affect an industry. Motorola has grasped this point in order to penetrate its business into various industries. At present, in the field of pre-production logistics of auto parts, radio frequency technology is a brand-new technology both domestically and internationally. Therefore, we hope to cooperate with large international companies and seize this opportunity to introduce this technology. Whoever has mastered this technology will have the first opportunity.
In the past ten years, Motorola has developed rapidly in radio frequency identification technology, and has gradually been widely used in many fields such as industrial automation, commercial automation, and transportation control management. With technological progress, the types of products based on radio frequency identification technology will become more and more abundant, and the applications will become more and more extensive. It can be expected that in the next few years, radio frequency identification technology will continue to maintain a momentum of rapid development.
2. Implementation principles and ideas
a) The design of this system must not only adapt to current applications but also face the needs of future business development. When designing an integrated system configuration plan, the following design principles should be followed:
·Practicability and advancement
·Safety and reliability
·Standard versatility
·Flexibility and scalability
·Openness/Interconnection
·Economy/Investment Protection
· Manageability.
b) Using mature equipment and technology to meet the current development goals of the group company and take into account future business expansion needs, so as to realize the management and tracking of containers, the management of forklifts, and the management of employees, which are mainly manifested in the following aspects:
Personnel management function module: Motorola UHF RFID technology is adopted. For the staff in the warehouse, they need to wear UHF RFID badges, and in all access doors (whether it is personnel access door or vehicle access Door) Install RFID access control, all people who pass the access control system, because they wear RFID badge cards, will be recorded through the access control. Personnel positioning, tracking, and recording will be realized.
Forklift management function module: Install Motorola RFID tag on the vehicle and write relevant information of the vehicle in it
1) Manage the forklift driver. The forklift is equipped with an on-board RFID reader and its antenna. Before the driver gets on the truck, he needs to swipe his personal ID card to pass the on-board terminal for confirmation before he can drive the forklift.
2) Manage the driving range of the forklift, and use the RFID access control system of the access door. When the forklift passes the access control, the forklift number is recorded. If it passes abnormally, the alarm will sound. Through the RFID positioning installed on the forklift channel, the management of the forklift operation is realized.
Appliance management function module: The installation of radio frequency tags on appliances significantly improves the degree of refinement of management, improves the level of logistics, reduces management costs, improves product quality, and improves the level of inventory scheduling:
1) Receiving: The vehicle-mounted RFID reader + vehicle-mounted terminal confirms the receipt, and reads the appliance number through the vehicle-mounted reader to guide the forklift driver to enter the designated work area.
2) Receiving goods and putting them on the shelves: The vehicle-mounted RFID reader + the vehicle-mounted terminal connection system inquires and obtains the warehouse location selected by the system, and then puts it on the shelf. System guidance throughout the entire process to avoid placing the wrong location number.
3) Picking: Collect the equipment according to the picking instructions, scan and confirm the RFID of the equipment, and feed it back to the system to confirm the association with the picking truck and the stacking area.
4) Delivery: The fixed RFID reader will automatically read the number of each RFID device passing through this area, and connect to the system to automatically confirm that the device under the delivery order has been loaded into the truck. The fixed RFID reader reads the last appliance number, and the indicator light gives a sound prompt. The connection system automatically confirms the completion of the loading after judgment, and confirms the delivery.
5) Instrument tracking: By installing RFID positioning on the RFID forklift channel, when the forklift loads the container through the channel, the on-board RFID reader reads the RFID information, and associates this information with the appliance. That is, the pursuit of the appliance is achieved.
6) Through the implementation of this technology, the error rate in the material storage and distribution process is reduced and the work efficiency of logistics personnel is improved. At the same time, the work area positioning and driving route monitoring of the process vehicles are carried out to realize three-dimensional and digital management.
3. Technical and economic analysis
Factors such as intensified market competition and variability in demand have urged logistics companies to continue to speed up the pace of advancement, launch personalized and market-competitive products, ensure promises, and quickly respond to the ever-changing requirements of customers and the external competitive environment. Reasonable and efficient supply chain management can capture customer needs, share information in the entire supply chain, and ensure the synchronization of planning and execution from start to finish. This enables companies to reduce the scale of inventories, shorten the return period of investment, improve the quality of products and services, and accelerate the company’s response to the market. It is highly competitive in the same industry. After adopting RFID technology, the economic benefits are expected to be as follows:
increasing income:
Increase inventory availability by 5% to 10%
·Due to the increase in inventory availability, sales will increase by 3% to 7%
Improve customer satisfaction by 0.3% to 0.5%
The increase in recycling rate in appliance management will increase profits by 25% to 40%
·Improved management of appliance recycling will increase total revenue by 1% to 2%
Cost reduction:
· Losses due to theft are reduced by 40% to 50%
Increase delivery accuracy by 10%
·Reduction of labor costs:
· 30% reduction in site management
Reduce the labor cost of item storage up to 65%
Reduce inventory costs by up to 25%
Improve the throughput of warehouse products up to 20%
Reduce the damage rate and the write-off of expired goods up to 20%
Reduce complaints caused by lost packages up to 98%
A new technology and the application of a new solution have more or less technical risks, but for radio frequency technology, there are no insurmountable technical problems. But the application in manufacturing logistics management, especially pre-production and mid-production logistics is not very mature. There may be some new problems in technology, management, equipment manufacturing and installation. Therefore, we should visit some companies that are more mature in the application of RFID, and choose a strong RFID integrator for cooperation. Therefore, we regard Motorola as one of our potential partners and hope that Motorola will use the international high-tech company’s Technology makes corresponding, suitable and thorough solutions for enterprises, lists the problems to the greatest extent, and formulates solutions one by one, and finally achieves the expected goals.
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