rfid and lean manufacturing.pdf

7/27/2019 rfid and lean manufacturing.pdf

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Chapter 1 IntroductionThis dissertation research presents a descriptive study to determine the relationshipbetween Radio Frequency Identification (RFID) technology and lean manufacturing.Chapter1 focuses on the problem statement, background, justification, the significance of the

problem, purpose and objectives of this research, research questions, limitations anddelimitations, and assumptions of this study. Chapter 2 of this dissertation provides adetailedreview of literature related to the problem to be investigated in this study. Chapter 3presentsa review of the research design and specific methodology to be utilized for thisresearch.Chapter 4 of this dissertation presents data and findings from this study. Chapter 5provides asystematic analysis of the results of this study. Chapter 6 presents researchconclusions,

practical implications, theoretical implications, and recommendations for futureresearch.Statement of the ProblemIt is unclear how and where RFID technology can be implemented withinmanufacturing to help identify, reduce, and ultimately eliminate the seven types of wastedefined by Taiichi Ohno in the Toyota Production System.Nature and Signi ficance of the ProblemThe term lean refers to using less of everything during production less labor, lessmanufacturing space, less equipment, less inventory, and less engineering inputsduringdevelopment and processing all of which results in fewer defects and more variety(Russell, 2009, p. 721). Reducing costs and maximizing profits are two main reasonswhymanufacturing companies embrace lean manufacturing strategies. In implementing thisphilosophy, it is essential that lean benefits are measured in order to benchmarksavings.Normally time and method study approaches are used to measure day-to day outputs.Radio2Frequency Identification technology (RFID) may speed up this measurement processTheapplication of RFID technology is widened into the process improvement field throughitsinnovative implementation (Dunlop, 2007, p. 2). Lean manufacturing is a practice thatseeksto minimize the amount of resources (including time) used in the various activities of abusiness. Lean manufacturing practices seek to identify, reduce, and ultimatelyeliminatenon-value adding activities. These types of activities are frequently referred to aswaste in


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lean manufacturing (Brintrup, Roberts & Astle, 2008).RFID technology is defined as a technology that allows items to be tagged with adevice which can be read electronically (Lin, 2008, p. 489). It is believed that the widespread use of this technology started in 2003 when Wal-Mart required some of itssuppliers

to place RFID tags on pallets and cases. Most of supplier were not ready for theimplementation of RFID technology and thus they simply started to attach RFID tags toshipments sent to Wal-Mart (Aichlmayr, 2008). While RFID has traditionally been usedtotrack inventory throughout the extended supply chain, operations managers today areseeingnew value in the use of RFID within their four walls (p. 16).The implementation of lean through the innovative application of Radio FrequencyIdentification (RFID) technology is novel in its approach (Dunlop, 2007). RFIDtechnologyhas been used in many industries for many applications, mainly to track the distribution

ofphysical goods. Furthermore, lean manufacturing provides many benefits, butimplementingit with RFID technology may lead to more improvements.It has been found that one of the main obstacles to the implementation of RFIDtechnology is the lack of analysis tools to show where and how this technology canbringvalue (Brintrup, Roberts & Astle, 2008). Saygin and Sarangapani (2006) suggest theneed for3a complete understanding of business processes affected by RFID implementation toidentifypotential benefits this technology may bring to businesses.RFID is a great technology and can be used in such a vast number of ways that withtimes being slow for companies right now, there is extra time to research RFID and lookintowhat savings it can offer if implemented (Busch, 2009, p. 28). Confusion remains as towhere RFID technology best helps in manufacturing. Questions remain as to whataspectsshould be considered when selecting applications, which manufacturing wastage RFIDmayspecifically address and how these wastages can be identified and eliminated(Brintrup,Roberts & Astle, 2008, p. 5). After many years of hyping the RFID technology, itbecomesincreasingly evident that the actual adoption and diffusion of RFID lags behind theexpectations of its optimistic promoters (Schmitt, Thiesse, & Fleisch, 2007, p. 3).Studies ofwhere RFID technology can help in manufacturing tend to approach the issue in one ofthe


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following three ways:1) A small group of studies argue that RFID can provide benefits to firms and mayeliminate some of the production wastes (Brintrup, Roberts & Astle, 2008; Hill, 2004;Patti& Narsing, 2008).

2) A second considerably larger set of studies explore RFID within supply chainmanagement, particularly how RFID will revolutionize supply chains through item-leveltracking of goods, and increase levels of product and asset visibility (Aichlmayr, 2008;Leavitt, 2005; Lin, 2008; Zuckerman & Rowley, 2006).3) A third set of studies examine how RFID may be related to kanban,just-in-time,and Six Sigma applications (H. Chan & F. Chan, 2008; Li & Visich, 2006; Zhang, Jiang,&Huang, 2008).4These three approaches have been used to identify the benefits of RFID. The evidenceis almost uniformly consistent in indicating that organizations reap a wide array of

positivebenefits from the implementation of RFID applications in one way or another. Only arelativehandful of studies (Brintrup, Roberts & Astle, 2008, 2008; Hill, 2004; Patti & Narsing,2008)have specifically examined whether lean and RFID are connected. Such studiesfocused onwhich of the wastes RFID technology can help identify, but overlooked explicitlyexamininghow RFID technology may be used to eliminate them.This study contributes to the knowledge base of lean and RFID in several ways. First,it advances the understanding of RFID technology and its implementation inmanufacturingand manufacturing waste reduction by RFID. Second, the outcomes of this study cangreatlyassist the analysis of a lean process and help a wide range of organizations andindividuals torealize significant productivity gains and efficiencies through the use of RFID. Third, thisresearch is a valuable reference for the academic community where facts can beextractedand more research activities can be built on its outcomes.5Objective of the ResearchThe purpose of the study was to determine the relationship between RFID technologyand lean manufacturing based on the knowledge of the selected participants. The studyspecifically focused on how RFID can help identify, reduce, and eliminate the sevencommon types of waste identified by Taiichi Ohno in the Toyota Production System.Theseseven include overproduction, waiting time, inefficient transportation, inappropriate


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processing, unnecessary inventory, unnecessary motion, and rejects & defects (Adams,2006).Four manufacturing functions were selected for investigation. These are work-in-progressmanagement, inventory management, manufacturing asset tracking and maintenance,

andmanufacturing control. This study also identifies potential applications of RFIDtechnologyin manufacturing and areas that will be affected by RFID technology. Appendix Qrepresentsa detailed research model.Research QuestionsThis research study focused on answering the following three research questions:Q1: Where does RFID technology have the potential of identifying, reducing, andeliminating the seven types of waste in lean manufacturing?Q.2: What demographic variables significantly affect the perceived relationship between

RFID applications in a lean manufacturing environment?Q3: Are lean and RFID compatible with one another?Research HypothesesH0 (Null Hypothesis) There is no significant relationship between lean manufacturingwastereduction and the adoption of RFID technologies.H1: (Alternate Hypothesis) Manufacturing waste will be different in organizations6implementing RFID technology in work-in-progress management.H2: (Alternate Hypothesis) Manufacturing waste will be different in organizationsimplementing RFID technology in inventory management.H3: (Alternate Hypothesis) Manufacturing waste will be different in organizationsimplementing RFID technology in manufacturing asset tracking and maintenanceprocesses.H4: (Alternate Hypothesis) Manufacturing waste will be different in organizationsimplementing RFID technology in manufacturing control processes

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rfid and lean manufacturing.pdf