Business justification for the implementation of radio frequency identification (RFID) systems in support of logistics – case company: JAT-Asennus Oy
Mensah, Simon (2010)
Lataukset:
Mensah, Simon
Vaasan ammattikorkeakoulu
2010
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201004156485
https://urn.fi/URN:NBN:fi:amk-201004156485
Tiivistelmä
Radio Frequency Identification (RFID) has in recent times gained enormous popularity that businesses consider as a possible technology to improve existing business processes. RFID and its related sensor technologies have the potential of changing and controlling business processes in a fundamental manner such as tracking of objects throughout the production line and subsequent life cycle of the products.
In this thesis, the practical insight was based on the case study at the ABB Oy drives factory in Pitäjänmäki, Helsinki. The analysis involved the concrete benefits of RFID technology in the manufacturing and the supply chain management of the company. According to the survey, ABB Oy Drives factory is using an Enterprise Resource Planning system known as the SAP R/3 software that was integrated with the RFID middleware to achieve the considerable potentials of RFID such as automating the material and products handlings system, lower error rates, cutting down production waste and reducing labour cost.
Moreover, when looking at the business justification aspects, it was realized that the specific cost of adoption the RFID system and benefits did not always correlate. That is, the adoption can incur considerable costs that outweigh the local benefits and vice versa depending on whether it is local operational or inter- enterprise applications. However, it was concluded based on the ABB case that a tangible and competitive advantages can be achieved by the technology if cooperating partners will come together to use the technology rather than a stand alone or local operation. With the technology, each cooperate company gained product traceability and quality assurance across the supply chain.
In this thesis, the practical insight was based on the case study at the ABB Oy drives factory in Pitäjänmäki, Helsinki. The analysis involved the concrete benefits of RFID technology in the manufacturing and the supply chain management of the company. According to the survey, ABB Oy Drives factory is using an Enterprise Resource Planning system known as the SAP R/3 software that was integrated with the RFID middleware to achieve the considerable potentials of RFID such as automating the material and products handlings system, lower error rates, cutting down production waste and reducing labour cost.
Moreover, when looking at the business justification aspects, it was realized that the specific cost of adoption the RFID system and benefits did not always correlate. That is, the adoption can incur considerable costs that outweigh the local benefits and vice versa depending on whether it is local operational or inter- enterprise applications. However, it was concluded based on the ABB case that a tangible and competitive advantages can be achieved by the technology if cooperating partners will come together to use the technology rather than a stand alone or local operation. With the technology, each cooperate company gained product traceability and quality assurance across the supply chain.