Case Study 02
Fully Automated RFID-Based Inventory System with No Manual Data Entry
Overview
An automotive components manufacturer implemented a fully automated RFID-based inventory management system integrated with Vertical Lift Modules (VLM)/Vertical Carousel. The goal was to eliminate manual data entry, ensure real-time inventory tracking, enforce FIFO (First-In, First-Out) compliance, manage critical reorders, and improve space utilization using its own custom software and database—without depending on any external ERP systems.
Problem Statement
- Manual Data Entry: Operators manually recorded stock movements, causing delays and errors.
- Human Error Risk: Manual updates led to inaccurate stock counts and operational disruptions.
- Reorder Challenges: Without automated tracking, it was difficult to maintain optimal inventory levels.
- Inefficient Space Use: Though VLMs offered dense storage, manual workflows limited throughput and visibility.
Objectives
- Eliminate manual stock logging by operators.
- Automatically update inventory records in a centralized database via RFID.
- Enforce FIFO automatically without user intervention.
- Auto-generate critical reorder alerts based on real-time inventory levels.
- Optimize storage through VLM/Vertical Carousel integration.
- Reduce labor involvement in routine data tasks.
Solution: Automated RFID-Based System with Own Database
Key Features and Software Highlights
RFID-Driven Data Capture:
- Parts are tagged with RFID.
- RFID readers scan items during inbound and outbound movements.
- Software automatically logs data (part ID, quantity, location, timestamp) into the internal database.
- No manual data entry required from operators.
Vertical Lift Module / Carousel Integration:
- Software manages automated storage/retrieval through VLM.
- FIFO compliance enforced through software logic using timestamped RFID data.
- Operators simply place or pick parts—location tracking is fully automatic.
Custom Inventory Database:
- Handles real-time inventory updates.
- Maintains location, quantity, batch, and age of each part.
- Tracks critical stock levels and generates reorder alerts as needed.
- No third-party ERP dependencies.
Reorder Management:
- Software continuously checks stock against predefined reorder thresholds.
- When minimum stock level is reached, a critical reorder report is auto-generated.
- Procurement or store team is alerted instantly—no manual checking required.
Andon Display System:
- Live inventory status and system alerts are shown on large screens in common areas.
- Visual indicators for critical stock, system health, and VLM operations are provided in real-time.
Fully Autonomous Operation:
- Once RFID tags are applied, no human interaction is needed to update stock data.
- The system works without manual saving, operator logging, or barcode scanning.
Workflow Overview
Inbound Process
- Received items are RFID-tagged.
- RFID scanners auto-log each item into the system as it’s loaded into the VLM.
- System records quantity, part number, location, and time of receipt.
Inventory Management
- Internal movements are tracked in real time via RFID.
- FIFO logic ensures oldest stock is always issued first.
- Operators do not need to interact with the system for data updates.
Outbound Process
- When parts are requested (e.g., for production), the system identifies the oldest eligible stock.
- RFID tracks part retrieval; the database updates automatically.
- No paperwork or data entry is needed by staff.
Reorder Alerts
- As stock is consumed, RFID-driven updates reflect in real-time.
- When levels fall below critical thresholds, the system triggers a reorder alert/report.
- Procurement team receives notifications automatically.
Benefits
- Zero Manual Data Entry: Operators are free from logging or saving data.
- Real-Time Accuracy: RFID ensures stock data is always current and reliable.
- Full FIFO Control: Automated logic enforces proper stock rotation.
- Auto Reorder Reports: No need to manually monitor stock thresholds.
- Space Efficiency: VLM system fully utilized with smart tracking.
- Live Status Monitoring: Andon displays provide visual status of inventory and operations.
Lessons Learned
- System Reliability is Key: RFID readers and software uptime must be stable.
- Well-Defined Stock Rules: Proper reorder levels and FIFO logic are crucial.
- Minimal Training Required: Operators only need to understand basic system flow; no tech input needed.