Development of an RFID‐based Traceability System: Experiences and Lessons Learned from an Aircraft Engineering Company

This paper presents a case study of the research and development of an RFID‐based traceability system in an aircraft engineering company in Hong Kong. We report the system design and implementation, and discuss our experiences and lessons learned. The aim of the RFID system is to effectively support the tracking and tracing of aeroplane repairable items in the company. The study reveals eight critical success factors for the successful implementation of RFID systems, namely, create strong internal and external motivation for improvement, stir up desire to keep abreast of the latest technology for global competitiveness, strive for cross organizational implementation, avoid major process changes/limit process changes, start with a small RFID project scope, facilitate equipment vendor's investment, use cost‐effectiveness reusable tags, and transfer RFID skills and knowledge from university to industry. We also summarize 13 lessons learned, including three lessons concerning RFID implementation at strategic level, six lessons at management level, and four lessons at operational level resulting from carrying out this project. Given the contextual details of the study, the lessons learned can help other firms to better anticipate the hurdles they will experience, and make them aware of the possible ways to cope with such difficulties before embarking on the journey of RFID implementation.     

REDUTEX: a hybrid push–pull production system approach for reliable delivery time in knitting SMEs

The textile sector is composed of small and medium enterprises (SMEs) worldwide. Nowadays there is a shortage of technological knowledge in SMEs. Lead time is a critical indicator in any productive company organisation. The aim of this research was to provide an approach, called REDUTEX, based on theoretical concepts of lean and synchronous manufacturing in order to help to understand the behaviour of SMEs and to improve the manufacturing process by reducing the customer lead times. The integration of these philosophies is the basis of REDUTEX; a hybrid push–pull production system approach to knitting SMEs. With this approach, it is possible to obtain a process reliability when the restrictive resource capacity (RRC) is identified, optimised and protected. By synchronising all activities to the rhythm of RRC, through a continuous flow, it is possible to obtain high-impact results through a dual automated system and product quality, through a visual control. REDUTEX uses a push system from the RRC to the location of the supermarket, where accumulated inventory may be distributed in the internal assembly department and external family workshops, making a pull system. Subsequent re-assembly processes use a push system until the end of the product. The stages of REDUTEX are explicitly described and applied to real data, so that the staff of SMEs can easily understand the behaviour of the process and implement it. One of the advantages of REDUTEX is that it does not need highly trained staff. The research methodology was conducted as a case of study in twelve SMEs and validated and implemented in three textile companies of the southern area of the state of Guanajuato in Mexico, obtaining reliable delivery times and very promising results.     

A queuing/management consideration on Japanese production systems

A single-stage lot/cell production under a Poisson arrival and exponential service in a batch is considered. The three economic queuing models of push and pull types are presented, an economic comparison of push versus pull types is considered, and a strategic management/design consideration to the lot production is given. First, the total expected operating cost is given for the three queuing models including the Omote-Kanban type similar to VMI. Second, the push versus pull system is discussed from a view of setup time, inventory or operating cost, and it is ascertained that the three types are alternative. Finally, a strategic management basis for economic traffic, leadtime setting is given, and discussed by the introduction of production matrix on 2-stage design.     

Push or Pull? Design of Content Delivery Systems

Advances in information technology, especially the expansion of cellular and WiFi networks, are dramatically changing how people consume digital content. These changes in user access behavior present a challenge of delivering content to a diversified consumer base. This article addresses this challenge by identifying the key factors for the design of content delivery systems (gross value of content, delivery delay, sensitivity to delivery delay, accessing cost, and processing cost) and explicitly modeling their interactions. We investigate two content delivery systems—push and pull systems, and solve for the content provider's optimal push frequency decision and consumers’ push versus pull decisions. We show that the content provider's selection of push frequency plays a critical role determining the segmentation of the consumer market into the push group and the pull group. Our findings suggest that firms should set a relatively high push frequency to cater to high‐type consumers, which leads to two consumer groups with low‐type consumers belonging to the pull group and high‐type consumers belonging to the push group.     

Directing technological development—The role of the board

Market pull will always be present in businesses based on technology. This article is concerned with the other force: technology push. However, the two are naturally inter-related and management of the technological development involved in satisfying market pull can be viewed as a part of that which is involved in a technology push. The author discusses how a successful market change can be brought about by technology push, through innovation, and by carefully planning the cultivation of the right environment.     

A Production–Inventory Model for a Push–Pull Manufacturing System with Capacity and Service Level Constraints

We study a hybrid push–pull production system with a two‐stage manufacturing process, which builds and stocks tested components for just‐in‐time configuration of the final product when a specific customer order is received. The first production stage (fabrication) is a push process where parts are replenished, tested, and assembled into components according to product‐level build plans. The component inventory is kept in stock ready for the final assembly of the end products. The second production stage (fulfillment) is a pull‐based assemble‐to‐order process where the final assembly process is initiated when a customer order is received and no finished goods inventory is kept for end products. One important planning issue is to find the right trade‐off between capacity utilization and inventory cost reduction that strives to meet the quarter‐end peak demand. We present a nonlinear optimization model to minimize the total inventory cost subject to the service level constraints and the production capacity constraints. This results in a convex program with linear constraints. An efficient algorithm using decomposition is developed for solving the nonlinear optimization problem. Numerical results are presented to show the performance improvements achieved by the optimized solutions along with managerial insights provided.     

基于临界价格的易变质产品生产企业 RFID技术投资决策

RFID技术可以优化易变质产品的流通速度,降低变质率对该类企业收益的影响。现代市场是开放型的系统,然而当前RFID技术投资成本过高,因此迫切需要研究开放系统下不同成本的易变质产品生产企业投资RFID技术的可行性。本文建立了不同成本易变质产品生产企业未投资RFID技术时的竞争博弈价格模型和合作博弈价格模型,分析了变质产品数量对产品定价的影响,得出竞合模式下保持企业较高收益且对新企业不产生吸引力的临界价格。在临界价格基础上,分析了投资RFID技术对易变质产品生产企业收益的影响,得出企业可承担的最大RFID标签成本,为该类企业RFID技术的投资提供了科学决策的依据。最后,通过数值模拟分析验证了所建立的模型。     

THE TIMING OF LABOR TRANSFERS IN DUAL RESOURCE-CONSTRAINED SYSTEMS: “PUSH” VS. “PULL” RULES*

Altough the dual resource-constrained (DRC) system has been studied, the decision rule used to determine when workers are eligible for transfer largely has been ignored. Some earlier studies examined the impact of this rule [5] [12] [15] but did not include labor-transfer times in their models. Gunther [6] incorporated labour-transfer times into his model, but the model involved only one worker and two machines. No previous study has examined decision rules that initiate labor transfers based on labor needs (“pull” rules). Labor transfers always have been initiated based on lack of need (“push” rules). This study examines three “pull” variations of the “When” labor-assignment decision rule. It compares their performances to the performances of two “push” rules and a comparable machine-limited system. A nonparametric statistical test, Jonckheere's S statistic, is used to test for significance of the rankings of the rules: a robust parametric multiple-comparison statistical test, Tukey's B statistic, is used to test the differences. One “pull” and one “push” decision rule provide similar performances and top the rankings consistently. Decision rules for determining when labor should be transferred from one work area to another are valuable aids for managers. This especially is true for the ever-increasing number of managers operating in organizations that recognize the benefits of a cross-trained work force. Recently there has been much interest in cross-training workers, perhaps because one of the mechanisms used in just-in-time systems to handle unbalanced work loads is to have cross-trained workers who can be shifted as demand dictates [8]. If management is to take full advantage of a cross-trained work force, it need to know when to transfer workers.     

DDP—Managerial opportunities and consequences

Applications of DDP are examined via two case studies to determine how the technology was used by management to aid decision-making; the level of management involvement in the MIS (Management Information Systems) design process and the nature of the relationship between managers and data processing departments were also considered. The study showed that because the technology was largely under end user control, better tailored information systems resulted and system output was more directly used by middle and top managers. This only occurred, however, if certain moderators, such as computing and modelling skills, were present in functional departments. DDP also offers opportunities for better relationships with data processing departments but the consequences include the need for better management training and functional support groups for systems implementation. A conceptual model is presented as a theoretical framework to guide organisations when using DDP.     

Six Sigma implementation: a qualitative case study using grounded theory

Many organisations have implemented Six Sigma, but successful Six Sigma implementation has not been fully investigated. The purpose of this study is to explore the process of implementing Six Sigma in a manufacturing plant using qualitative case study methodology. Data were collected through in-depth interviews and analysed using grounded theory to identify the main factors that emerged from the interview data and the relationships between them. Consistent with previous studies, the findings emphasise the role of executive commitment, Six Sigma Champions, and training in successful implementation of Six Sigma projects. Furthermore, the study underlines the role of effective project selection and the coexistence of other management initiatives (e.g. lean manufacturing and continuous improvement) on successful implementations of Six Sigma projects. Our findings also suggest that Six Sigma implementation leads to higher levels of customer focus. The study contributes to the existing body of knowledge in effective implementation of Six Sigma. The results include a coding paradigm for the implementation process and implications for managers and practitioners.     

The introduction of Kanban principles to material management in EWSD production

Kanban systems combine two distinct and important functions. They control the flow of material through the manufacturing plant and they act as identifiers for deficiencies in the logistics of the production chain. This paper describes a Kanban system recently introduced to a Siemens manufacturing plant for telecommunication switching equipment in Florida, USA. Almost all stages of the formerly push-based manufacturing process were linked to each other through various types of pull systems. Ultimately, the system was extended to include suppliers of material. Emphasis is given to the importance of the planning and implementation processes since they have proven to be crucial to the success of the system.     

Mean-risk analysis of radio frequency identification technology in supply chain with inventory misplacement: Risk-sharing and coordination

This paper investigates the application of radio frequency identification (RFID) technology to eliminate the misplacement problems in the supply chain, which consists of a risk-neutral manufacturer and a risk-averse retailer. By considering both fixed cost and tag cost of RFID implementation, we study the agents' incentives to adopt RFID in both uncoordinated and coordinated cases. We focus on analyzing the impact of risk attitudes on the agents’ incentives and on the supply chain coordination. The central semi-deviation is adopted to measure the retailer's risk attitude. In the uncoordinated case, we find that, in order to induce the retailer to adopt RFID, the manufacturer must assume more fixed cost if the retailer is more risk-averse. In the coordinated case, we first show that the standard revenue sharing contract does not always coordinate the channel. If the channel is coordinated, we observe that the agents’ incentives will be perfectly aligned and independent of the risk attitudes, if the revenue sharing ratio equals the fixed cost sharing ratio. Then we propose a risk-sharing contract that offers the risk protection to the retailer, to achieve the channel coordination. An interesting finding is that the manufacturer's incentive will not decrease with the tag cost, if she takes much risk from the retailer. The corresponding impacts of RFID adoption on the two contracts are also analyzed in this paper. Finally, a case study in a tobacco industry is presented to show the real RFID cost in practice.     

Decision support tool for lean product and process development

Lean and concurrent engineering (CE) are widely acknowledged business process improvement strategies. These strategies can improve processes, reduce costs, and cut waste enabling organisations to remain competitive. Lean manufacturing offers an enterprise-wide methodology that improves reliability and flexibility while reducing lead-times and inventory carrying costs. Companies in manufacturing and service sectors are focusing on integrating lean manufacturing methodology with other applications, so that, all their systems and processes are aligned. This article proposes a CE framework based on application of information technology and object-oriented methodology for lean manufacturing. This approach expected to give manufacturing companies an extra edge in today's competitive market. A case study is presented in this article to demonstrate the effectiveness of CE framework in a machine tool manufacturing company. CE practice was adopted for new products, to align the systems and processes of the company. Product development lead-time was found to decrease by more than 50% compared to similar development projects carried out by the company. The need for rework was found to be negligible and the development cost was reduced considerably.     

A multicriteria model for supporting setup reduction investment decisions

One critical manufacturing challenge of the 1990s is for firms to effectively apply new operations management techniques while embracing wider philosophies such as total quality management (TQM) and computer integrated manufacturing (CIM), etc. Setup cost and/or time reduction is one such technique capable of producing many benefits for manufacturing firms, including reduced inventory, better equipment utilization, and improved quality. It is thereby viewed as an important component of just-in-time (JIT) manufacturing practice. Existing problems with the setup reduction decision include the many factors that must be considered, as well of an absence of validated and usable models for estimating potential benefits from setup reduction investment made in different contexts. This paper discusses the attainment of gains from setup reduction mainly by improving existing equipment and work practices rather than purchasing new equipment or technology. The model proposed in this paper is based on the application of the analytic hierarchical process (AHP) on seven weighted factors to obtain a preliminary indication as to whether investment in setup reduction is desirable in a given manufacturing context, and the expected benefits of such investment. A flexible scaling system, thus obtained, allows the model to handle a wide range of managerial predispositions to setup reduction.     

Misplaced Inventory and Radio‐Frequency Identification (RFID) Technology: Information and Coordination

Misplaced inventory is a major operational problem in many supply chains. Radio‐frequency identification (RFID) technology has been publicized as a promising solution for the misplaced inventory. Adoption of this technology has a fixed cost and variable cost of implementation, which can cause incentive issues in the supply chain. In this paper, we consider a supply chain under misplacement of inventory subject to uncertain demand. We study both centralized and decentralized cases and identify the conditions to coordinate the supply chain under implementation of RFID. We show that the incentives of the parties for investing in the technology are not perfectly aligned in the existence of the fixed cost of investment. Based on the relative payments of the parties for the fixed cost of investment, the incentives to adopt RFID can be characterized into regions, where we observe only one party or two parties benefiting from the technology when the tag price falls in a region specified in the paper. We further establish the effects of changes in mean and variance of a uniform demand on the incentives for investing in RFID and find that the incentives of the firms may indeed decrease as demand becomes more variable.     

Experimental push/pull production planning and control system

We introduce an experimental push/ pull production planning and control software system which is designed as an alternative to a MRP-II system for mass manufacturing enterprises in China. It has the following distinguishing features: (1) putting the philosophy of JIT into the master production scheduling of MRP-II via the earliness/ tardiness production planning method; (2) controlling material input by push and processing/ assembly by pull; and (3) adjusting the parameters of the production line by the‘ suggestion for improvement of production line’ module. Simulation results have shown that the proposed system can achieve better planning and control performance than existing systems.     

RFID as an Enabler of Improved Manufacturing Performance*

The use of radio frequency identification (RFID) versus bar coding has been debated with little quantitative research about how to best use RFID's capabilities and when RFID is more advantageous. This article responds to that need by qualitatively and quantitatively analyzing how RFID facilitates increased traceability and control in manufacturing, which in turn enables the use of more lot splitting and smaller lot sizes. We develop insights about operating policies (RFID vs. bar‐code tracking mechanisms, extent of lot splitting, and dispatching rules) and an operating condition (setup to processing time ratio) that affect the mean flow time and proportion of jobs tardy in a job shop. A simulation model is used to control factors in the experimental design and the output is evaluated using analysis of variance. The results show the following: (i) performance worsens when bar coding is used with extensive lot splitting, (ii) process changes such as extensive lot splitting may be required to justify RFID use instead of bar coding, (iii) the earliest operation due date dispatching rule offers an attractive alternative to other rules studied in previous lot splitting research, and (iv) the performance improvements with RFID and increased lot splitting are larger when the setup to processing time ratio is smaller. In a broader context, we fill a research void by quantitatively showing how RFID can be used as an advanced manufacturing technology that enables more factory automation and better performance along several dimensions. The article concludes by summarizing the results and identifying ideas for future research.     

Innovation and Organizational Learning: the Case of Computer-Aided Production Management

Recent experience of unsuccessful implementation of integrated advanced manufacturing technology suggests that much of the problem is due to a lack of innovation in organizational in parallel with the technological dimension. Discussion of this issue argues the need for some kind of ‘organizational learning’ to obtain the full benefits of AMT. This paper reviews the topic of organizational learning in technology and explores its relevance to the problem of AMT implementation through the case example of computer-aided production management systems.     

A Field Study of RFID Deployment and Return Expectations

Radio Frequency Identification (RFID) technology promises to transform supply chain management. Building on previous research in information systems and supply chain management, this paper proposes a theoretical framework for RFID adoption and benefits, and tests the framework using data on u. s. firms. Our analysis suggests that there is a positive association between information technology (IT) application deployment and RFID adoption. We find that RFID implementation spending and partner mandate are associated with an expectation of early return on RFID investment, and a perceived lack of industry‐wide standards is associated with an expectation of delayed return on RFID investment. These results suggest that firms with broad IT application deployment and a critical mass of RFID implementation spending are more likely to report early returns from RFID deployments. This paper extends previous research to understand the relationship between organization characteristics and adoption and expected benefits of the emerging RFID technology.