Automatic identification and data collection (AIDC) technologies and techniques that have proven their value in the supply chain are readily adaptable to help optimize asset levels. Bar code and smart label technology can make it simple and convenient to gather and manage asset information in a timely and efficient manner. These technologies can record asset movements automatically, and provide the data in real time to asset management software applications. Computerized systems provide up-to-date, accurate data that enables an organization to manage its assets with information instead of physical inventory. The result is a lower overall asset base, improved asset utilization, increased productivity and more efficient purchasing and maintenance, which all contribute to bottom line improvement. These outcomes provide a sustainable improvement in profitability without burdening employees with excessive controls or reporting responsibilities.
Effective asset management ensures employees always have equipment, tools and other resources whenever they need them. This can be accomplished either by tightly controlling assets through meticulous record keeping and control procedures, or by purchasing and maintaining spare materials to provide sufficient safety stocks. Of course, it is much more cost effective to ensure asset availability by managing information instead of physical goods, but this approach relies on consistent data collection and is vulnerable to human error or indifference. If information is inaccurate or out of date, assets will unexpectedly be out of service, leading to costly productivity and replacement losses.
With competition and the economy making it difficult to acquire new revenues, companies have renewed their focus on ROA and have aggressively sought to improve it through increased outsourcing, equipment leasing and supply chain management activity. A good asset management program improves return on assets and other metrics by helping to lower and control the enterprise cost structure.
Using Barcode & RFID for Asset Management
The first step to any asset management program is to identify and record (inventory) all assets. This initial step may be very time consuming, but must be done thoroughly to provide an accurate foundation that enables future improvements. Identifying and recording all assets provides a snapshot that gives the organization an accurate view of its assets for a brief period of time. For asset management to be effective, organizations need to create and use consistent processes to record changes in asset location, condition and availability. Bar code and RFID simplify the recording process and help ensure that information is entered accurately.
Fixed Assets
Asset management programs vary by the frequency that materials are identified and the amount of information that is recorded. For example, a conference room table might be checked every few years with a simple location audit. The same company might monitor the usage, maintenance and performance issues of important production equipment every shift. Regardless of the audit frequency or data content, automated data entry is beneficial because it collects information much more quickly and accurately than manual methods.
Beyond scanning fixed assets annually for inventory, audit or insurance purposes, organizations can expand their asset management programs to collect additional information. Monitoring assets regularly, which can be done efficiently with automatic identification, can improve asset utilization and the total cost of ownership by providing the information needed to optimize capacity planning and preventive maintenance.
Bar code and RFID can play an important role in these applications. For example, consider a cutting machine that requires oiling and other periodic maintenance based on hours of use or the nature of the jobs processed. Traditional asset management would probably require the machine's location and condition to be verified once a year, a requirement that could be met with a simple bar code scan. By creating procedures to require workers and maintenance personnel to record the amount of time they used the machine and any maintenance performed, the company could build a service record to support its asset record. Collecting the additional data could be accomplished by scanning the asset label and scanning or key entering a job code. Collecting data regularly provides information that is invaluable for risk management and defending against liability claims.
Supplies such as oil and blades could also be bar coded and scanned when they are loaded into the machine. Scanning would automatically associate specific materials and quantities with specific machines. Database and maintenance management software applications could use the information to monitor asset efficiency, schedule preventive maintenance, or send alert messages if the machine is using an inordinate amount of supplies that may indicate a performance problem. The documentation would also support service agreement and warranty claims.
For maintenance operations, an RFID tag could be used to identify the equipment, date of installation, and then updated whenever service or inspections were performed. Workers who service the machine could read the tag to learn the most recent work performed or service history, which is extremely advantageous for remote asset management where personnel may not have access to enterprise databases and service records.
Authentication
Materials authentication is another complementary asset management application. It provides a way to detect counterfeit products and can ensure that only authorized parts and supplies are used with equipment. Now companies can take advantage of their existing labeling systems to further protect their products against counterfeiting and enable easy authentication in the field. Product nameplates, UL and CSA marks, and many other types of asset and product labels, can be produced on secure media that appears normal to the naked eye but contains authentication materials that can only be detected with specialized readers. The materials may contain a simple pattern that is verified for authenticity, or may carry variable data such as a serial number or expiration date. Various types of overt and covert secure media have existed for a long time, but only very recently became available for use with demand label printers that are commonly used in business.
Moveable Assets
Asset movements can be automatically recorded with mobile data collection equipment or automated dispensing machines.
Automated dispensing machines function like vending machines for tools and supplies. Employees present their ID cards (usually sporting a bar code or RFID tag for automated processing) to the machine, which reads the badge automatically to identify employees and verify their authorization to receive the requested equipment. When the equipment is released, the machine records the item serial number (often by a bar code scan) and stores it in a record with the date and time of release and the employee it was dispensed to. Every item disbursement is tracked objectively with no human data entry required. Materials can be logged back into the system with a bar code scan that automatically applies a time and date stamp to the transaction to document their return.
Tool crib, depot, storehouse, library and other operations can be managed in a similar manner by having employees scan out their own items, or by using a material clerk in place of the dispensing machine. Creating supermarket-style equipment checkout operations enables organizations to manage more assets than dispensing machines, which can hold items of limited sizes and quantities. However, self-checkout and clerk-checkout operations are not as accurate because they rely on users to scan both their ID and each item every time.
Moveable assets, which include files and samples in addition to tools and equipment, are more commonly tracked with mobile data collection equipment. The asset database and other desired data or usage rules are loaded into a mobile computer, which may be a handheld, laptop, tablet, or vehicle-mounted model. A bar code or RFID reader can be added as a peripheral device or integrated into the computer to automatically identify items in the field.
A leading pharmaceutical company reduced data recording time from two to three minutes per test to five to 10 seconds by integrating mobile bar code label printers, RFID employee ID badges and bar coded sample slides to facilitate scan data entry. Between one and three hours of transcription time per shift was also eliminated, which has improved productivity and shortened the drug discovery and approval cycle. Scanning can also help preserve clean room environments by eliminating the need for paper.
Identification Options
Regardless of the environment, asset management begins with uniquely identifying each asset. This concept is easy to understand but is often challenging to execute. Finding the optimal way to identify assets is a three-step process. First you must determine how much information the asset identifier must contain. The identifier is usually a serial number, but it could also contain configuration or service data. The choice of data content will dictate the second decision, which is to choose a data carrier. Data carrier refers to the method the data will be expressed. It may be in text, a traditional bar code, two-dimensional (2-D) bar code, or an RFID tag. After the data carrier is determined you can choose which label material will perform best in your usage environment.
Determining Content
Asset tags do not need to carry actual data, but must at least clearly and uniquely identify each asset. The most common situation is to use the asset tag as a serial number that corresponds to a record in a database, where the actual asset information is stored. The license plate on your car is a good example. Vanity plates notwithstanding, no one, including law enforcement officers, can determine your identity simply by reading your license plate. Patrolmen use the plates to learn your identity and relevant driving history from a database they access by radioing to the station or using a wireless computer in the field. In industry, users may conduct database lookups through a wireless or wired LAN connection, or by accessing files stored on a mobile computer. Because databases can hold more information than license plates or other common identifiers, lookup architectures are favored for most asset management applications.
Because items must be uniquely identified, the U.P.C./EAN bar codes that are applied to most consumer products cannot be used as identifiers in asset management programs. U.P.C./EAN numbers identify the product and its manufacturer, but do not uniquely identify each individual item. For example, every can in a case of cola has the exact same U.P.C./EAN number; in fact, every can of that size and brand ever produced should have been marked with the same number. This is not a problem for inventory operations, where quantity is the chief concern, but is problematic for permanent asset management when service, maintenance and warranty history must be tracked for each item.
Data Carrier Selection
Most industrial, lab and office asset management programs have sufficient database access to use simple serial numbers for bar code identification. Database records can be accessed through a wired or wireless connection to a host computer, or stored in a mobile device. If database records are too large or access is unavailable, additional information must be included in the asset label. The primary options are to encode a 2-D bar code or an RFID smart label.
Data from smart labels is gathered wirelessly using RFID. In addition to being able to hold more data than linear bar codes, currently up to 2K, smart labels can be read if they are covered in dirt, grease or other contaminants and do not require a direct line of site between the label and reader. Read/write RFID tags are available, which could be updated with usage, inspection, service or other data in the field using a mobile read/write device.
Technology Selection
The desired data carrier and the conditions it will be exposed to (temperature extremes, sunlight, dirt, chemicals and moisture are among the factors that must be considered) will dictate the range of acceptable label materials. The label must identify the item from the time it is put into service until the time it is retired, so durable materials and permanent adhesives are required.
Thermal transfer printers can produce long-lasting bar codes and smart labels on paper, polyester, polypropylene and other synthetic materials that resist temperature extremes, condensation and moisture, blood, oils and chemicals and other contaminants. Zebra Technologies offers multiple media and ribbon combinations that have been certified to meet marking requirements. Thermal is the only technology that currently enables smart labels to be printed and encoded on demand.
Conclusion
Effective asset management requires timely, accurate information. Gathering the information must be convenient, otherwise operators will tend to skip the step and hence data integrity will be compromised. Even the temporary unavailability of low-value items can have a surprising impact on a company's productivity and profitability. Therefore once an asset management program is established, organizations should seek to include as many assets as possible in the program to maximize their return on investment.
On-demand thermal bar code printers and smart label printers/encoders make it convenient and cost effective to label all types of assets for automatic identification at the point of consumption or application. They produce durable labels that will help provide the accurate information foundation that successful asset management programs require. Zebra Technologies offers a wide range of thermal bar code and smart label printers plus many different durable and secure label materials for asset identification.
