RFID is increasingly used in logistics. Discuss its advantages and Essay - 1

RFID is increasingly used in logistics. Discuss its advantages and disadvantages from a global perspective - Essay Example 285-303) highlighted cost reduction in non-calibrated tools by implemented RFID solutions. Calibrated tools are vital for quality production and require constant tracking for most advantageous labor efficiency and productivity. The RFID solution will track the calibrated tools and reduce cost significantly. The study also concludes the calculation of a net present value analysis as compared to do-nothing scenario, , by deploying the RFID technology, the cost saving figures were approximately $ 60,000. By implementing RFID, other areas can also be integrated to save more cost and produce efficiency. Therefore, RFID integration in specialized manufacturing is beneficial in terms of cost, efficiency and tracking. Moreover, asset management systems that are integrated to Enterprise resource planning (ERP) will be useful when integrated to RFID technology. The objective of asset management systems is to locate accurate assets, specifically at the exact time, and present information about each, along with its status. In order to carry out processes in asset management systems, a tag is attached to each asset, which allows the transmission of information, by frequency identification to the reader. After receiving the data, the reader sends it to the inventory management system for tracking the location via the production facility (Jones et al. 285-303; Jones et al. 285-303). 2 Automated Manufacturing and Logistics Control The other dimension of RFID is passive RFID that is implemented in automated manufacturing and logistics control. The passive RFID technology is beneficial for any business process requiring fast flow of items. Moreover, passive RFID systems transmits energy entirely from the reader devices called transponders which are relatively inexpensive, making them the ideal choice and easy to apply for manufacturing and logistics control systems. Likewise, these transponders are easy to fix on the object for identification. Furthermore, RFID technology facili tates real time object visibility with high accuracy providing organizations to continuously identify and locate all items with real time data management (Keskilammi, Sydanheimo and Kivikoski 769-774). 3 Real World Examples In order to gain a better idea, some real world examples will illustrate the operations and processes that are facilitated by RFID in organizations. This section will describe some real world examples of implementing RFID for improving the efficiency of production in a department for packing integrated circuit. Liu and Chen conducted a study in 2009 for improving production efficiency in an integrated-circuit packaging house by implementing RFID technology. The integration with electronic framework, RFID technology, and ERP system was implemented along with Oracle AIM. The system reflected two modules named as electronic receiving modules and inventory transaction module respectively. The conclusion and results highlighted the implementation of electronic receivi ng module is utilized to enhance accept / check operation issues, operations associated with stock-in-record processing and document hauling operations. On the other hand, inventory transaction form is capable to handle demands for entry information related to accounting, transaction form request related to inventory, transaction records and processing replacement. By implementing RFID