Lean And RFID: Friends Or Foes?

Abstract

The Lean Manufacturing principles and methodology seek to eliminate waste from systems. Many of the lean techniques emphasize simplicity. For example, 5S (sort, set in order, shine, standardize, and sustain) and visual workplace management strive to organize and maintain the workplace so that it is easy to identify, find, and count items. Visual signals such as Kanbans are used to time the movement of inventory. The most basic utility of radio frequency identification (RFID) is to provide timing and location information. Most RFID systems provide data that indicates when an item has passed by a reader. As long as it is known where the reader was at the time of the read, location information is also available. Readers are placed strategically so that after the read, the item’s location is known to be within a defined area. Additionally, real time locator systems (RTLS’) use an array of readers to triangulate a more precise location for the item. Implementation of RFID systems is being driven primarily by large retailers and the Department of Defense (DOD). They are requiring their suppliers to attach RFID tags to the items they supply. However, it has been noted that suppliers who just “slap and ship” tags will find RFID to be an added expense. Suppliers who use RFID tags to improve their inventory and production management will find RFID to be an investment with a fairly short payback. This article will explore the relationship between RFID and Lean Manufacturing. Are RFID and Lean competitive or compatible? Does RFID improve Lean systems or do Lean systems improve RFID?