Automakers Seek Fast ROI From RFID
The global economic crisis is driving the automotive industry to adopt RFID to cut costs and improve efficiencies in the manufacture and distribution of cars—and to embrace standards to provide visibility in the global supply chain.
By Elizabeth Wasserman
Mar. 22, 2010—In June 2009, the world watched as General Motors (GM) filed for bankruptcy protection and took steps to become a leaner company—closing facilities and cutting jobs. Behind the scene, the Detroit-based auto giant also participated in a weeklong RFID pilot that tracked shipments of headliners—the foam-backed fabric adhered to the interior roof of automobiles—from the supplier to a GM assembly plant. An automotive industry standards group watched this test carefully, because it was designed to determine whether RFID technology could streamline manufacturing processes and reduce costs.
GM sequences its auto production so parts, such as headliners, arrive in the proper order at the assembly line. It usually tracks headliners with a combination of bar codes and paper-based sequence numbers taped to the headliners. Different vehicle models have different headliners, and an incorrect shipment throws off production and leads to costly delays.
During the pilot, though, the headliners were shipped in RFID-tagged containers from supplier Grupo Antolin in Lake Orion, Mich., to GM's nearby Lake Orion plant, where the Pontiac G6 and Chevy Malibu are assembled. The ultrahigh-frequency tags stored Electronic Product Codes (EPCs) and auto industry data identifiers, so the supplier, logistics company and automaker could track the containers and their contents. The trial found that RFID container tracking could help both GM and its supplier gain visibility into the supply chain to achieve just-in-time, just-in-sequence manufacturing.
Mar. 22, 2010—In June 2009, the world watched as General Motors (GM) filed for bankruptcy protection and took steps to become a leaner company—closing facilities and cutting jobs. Behind the scene, the Detroit-based auto giant also participated in a weeklong RFID pilot that tracked shipments of headliners—the foam-backed fabric adhered to the interior roof of automobiles—from the supplier to a GM assembly plant. An automotive industry standards group watched this test carefully, because it was designed to determine whether RFID technology could streamline manufacturing processes and reduce costs.
GM sequences its auto production so parts, such as headliners, arrive in the proper order at the assembly line. It usually tracks headliners with a combination of bar codes and paper-based sequence numbers taped to the headliners. Different vehicle models have different headliners, and an incorrect shipment throws off production and leads to costly delays.
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| Daimler is RFID-tracking custom-made returnable transport items to reduce costs and improve production processes. |
During the pilot, though, the headliners were shipped in RFID-tagged containers from supplier Grupo Antolin in Lake Orion, Mich., to GM's nearby Lake Orion plant, where the Pontiac G6 and Chevy Malibu are assembled. The ultrahigh-frequency tags stored Electronic Product Codes (EPCs) and auto industry data identifiers, so the supplier, logistics company and automaker could track the containers and their contents. The trial found that RFID container tracking could help both GM and its supplier gain visibility into the supply chain to achieve just-in-time, just-in-sequence manufacturing.
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