Clothing Maker Says RFID Significantly Improves Production

The back-end system also tracks each worker's output by correlating the badge reads with the bundle tag reads at each workstation. This information is used to help track and reward high-output workers. At the quality-inspection stations, any sewing flaws in garments can be traced back to the workers responsible for them. Law says this information is not used to punish workers, but is taken into consideration as managers relegate tasks in the factories. "We look for each worker's strengths and encourage them," says Laws.

Large electronic displays are hung in all production areas, and employees can reference them to track the plant's cumulative progress toward meeting production goals. Lawgroup's IT department developed the RFID system in-house and has integrated it with its enterprise resource-planning system. The RFID back-end data system is customized to the company's needs. For example, the system can send alerts to plant managers when incoming orders and current production levels point to an imminent bottleneck.

Law says the RFID-enabled production-tracking system has led to important improvements. These include easier performance measurements and better production decision-making. It has also enabled the firm to shorten its production lead time by 27 percent at the RFID-enabled facilities, and to improve production-planning accuracy by 29 percent. These factors enabled Lawsgroup to start seeing a return on its investment within one year of deploying the system at two of its knit production sites in 2002. Since first developing the system, says Law, the company has spent a total of US$5 million on hardware, software, training, maintenance and related infrastructure costs for RFID deployments at 12 plants. Many of the benefits the company has gained from the system are hard to quantify, he says. These include improved quality-control measurement, production visibility and employee management.

"The key to our success is that we had the right mix of processes, systems and people behind the project," says Law, adding that he knows other contract clothing manufacturers that have tested similar RFID systems but were unable to see them through to fruition.

One challenge Lawsgroup initially faced in deployment was that some employees were reluctant to change. In addition, it could not reap immediate benefit through the output-tracking system. What helped was a "commitment from management" to see the project through, along with a strong belief in the technology and the use of in-house IT staff to develop the system, rather than relying on an outside vendor.

In the future, Law says, Lawsgroup would like to work with its clients to share the real-time information being collected through the RFID systems. The firm is also considering a pilot program to embed RFID tags into finished garments, for use in tracking the finished goods as they travel from Lawsgroup plants to its sample showrooms. The company says the tags could be embedded in detachable labels for garments sold to consumers through retail stores.