Posts Tagged ‘Efficiency’

RFID Tags give identification to things. Once identified, the tag can be used for many different purposes.

Let’s look at an example.

  1. An RFID Tag is installed in a fire door for the purpose of identifying the fire door. The fire door is located on the toilet entry door in a commercial high rise building.
  2. The building has on site security guards who during the course of their day undertake patrols throughout the building.
  3. There are cleaners on sub contract at the building to ensure that the toilets are cleaned on a regular basis, the paper and soap is replaced and available and the toilets are cleaned.
  4. A building manager is also located at the building and regular performs audits of sub contractor performance such as fire service companies, security personnel and cleaners.

With the RFID Tag in the fire door we have not only an identification of a door but also the identification of a location.

The fire service technician can scan the RFID Tag and be displayed a maintenance routine for the fire door, a security guard can scan the same tag to confirm he has patrolled the specific location, the cleaner can scan the RFID Tag on entering the toilet area and then on exiting the toilet area showing how long they were cleaning the toilet area and the building manager could scan the same tag and obtain the details of the last inspection/patrol or attendance of sub contracted service providers. An alternative for the building manager is to see all this information which can be remotely fed back to a central data store so at any time they can assess the performance of the sub contracted service providers.

If we look at the situation at the moment, a fire service company may place a bar code or other identifier on the door, the security company may place a touch tag on the wall adjacent to the door, the cleaners have a piece of paper on the back of the door and the building manager needs to review all returned information such as event logs and service reports to know what has or has not been done or if the information is required sooner attempts to contact the sub contractor supervisor via phone or email to find out what is going on.

The other disadvantage as there is no common link between the different identifications such as the fire companies label, the security guards touch tag and the cleaners piece of paper. Reconciling all the information from various service providers can be nearly impossible.

If all services utilised the same common RFID Tag, the building manager would have a simple means to know precisely what occurred at a specific location or to a specific asset.

One of the benefits of this type of arrangement is minimising the unsightly marking of things and standardising the means of identification. If the building owner mandates the use of RFID Tags for identifying things within their building they can reuse the RFID Tag for other purposes such as those we have detailed in this example.

Another benefit is that a change in the service provider does not mean yet another numbering system and yet another unsightly label. Data from one service provider for an asset can be easily matched, via the RFID Tags unique ID, to the data provided by another service provider giving a more robust and clearer picture of the status quo.

This is by no means a comprehensive look at what can be achieved with RFID Technology and if you want to know more about the potential benefits of this technology contact me to discuss or leave your comments below.

RFID might not save in labor costs to your bottom line but it can increase the efficiency of your business in diverting time away from non income producing tasks.

If you currently spend 2 hours a day in an office preparing reports following service activities on site, the act of preparing these reports, while essential, detracts from the time you could spend on another site generating the income and data for yet another report.

Through the introduction of RFID we can automate the collection and reporting of data. The cost of this is an investment not in saving money on labor but in allowing labour to be diverted to tasks which generate income for the business, time on site actually doing the work.

Just because you don’t have to be in the office for 2 hours a day makes no difference to your bottom line so if I tell you you will be saving money in labor I would be lying. If, through technology such as RFID, you had an extra 2 hours a day that you did not have to spend in an office on reporting you would most likely spend this on site hence no savings in labor costs.

Where the return on your RFID investment comes is it allows for the redirection of labor costs from income draining activities (i.e. time to prepare reports) to income producing activities (i.e. time on site).

Let’s make the following assumptions;

  1. There are 5 days in a working week
  2. The average working day is 8 hours
  3. We spend, on average, 2 hours each working day on report generation in the office
  4. Average income generated from 1 hour on site is $50.00

Now let’s assume we have automated your reporting. This in effect has given you an additional 10 hours of site time (i.e. 2 hours per day for 5 days).

Your labour costs are the same but in having an additional 10 site hours for the week this would translate into additional income of $500.00 (10 hours per week x $50 per hour).

Over a 12 month period this would equate to a potential $26,000 of additional income without having to increase the labor input, just putting your labor to better use in income generating activities.

From this example you can see that there are no savings in labor costs but through smarter utilization of the labour we already pay for we can generate additional income by concentrating labor on activities that generate income as opposed to draining income.

Could you do with an extra $26,000 a year without working any harder than you are already?

Embracing technology is a difficult thing in that it is difficult if not impossible for someone to truly quantify the dollar benefit you will achieve through the technology but I hope this example shows you what could be possible with RFID technology.

Don’t just think in terms of labor cost savings because you probably won’t find them. Think in terms of where your existing labor costs could be better focused and how technology can assist in diverting labor costs from non income producing activities to income producing activities.

If you are interested to know more about how the automation of reporting may benefit your business click here and leave your details and I will get in contact with you to discuss your specific challenges and what I may be able to provide by way of a solution to automate your processes.

If you found this article useful or otherwise please provide comments or suggestions so I can improve on future posts.