RFID revs up parts delivery for Ford production line

TNT Logistics is hoping RFID technologies will slash costs by preventing delays and reducing inventory for Ford's newest truck plant.

The company runs the Materials Support Centre (MCS) for Ford's truck factory in Michigan. TNT's MSC co-ordinates the supply of 4,000 parts - from nuts and bolts to engine blocks - to the plant which produces around 1,100 trucks every day.

Suppliers can be fined if they are responsible for slowing down the production line so TNT was keen to make sure parts were arriving when needed, and turned to RFID to keep better track of its orders.

The MCS has a wireless 802.11 network in the entire facility. RFID tags are attached to parts racks, to the 'tuggers' that move these racks around the centre and to the trailers which then transport the racks to the nearby Ford factory.

The company is using low-frequency, low-wattage active RFID tags with a range of around 1,000 feet. The tags are about the size of a small box of matches. The project also uses software from Tibco Software.

The tags are checked when the racks are loaded onto the lorries to make sure the right racks of parts are going on.

Terry McIntyre, RFID project leader for TNT Logistics, told silicon.com: "I know when a trailer leaves my yard and when it arrives at the plant and when it is offloaded at the plant."

Workers at the MCS have an hour to send the correct parts to the plant once an order comes in. All the parts are delivered in sequence to be installed in particular vehicles, McIntyre said.

He said: "I would like to identify bottlenecks - RFID gives me that capability it can triangulate and collect data as that route is moving through the building," he said.

McIntyre added: "With the implementation of RFID we have identified pockets where there are cost savings."

TNT hopes RFID will result in estimated savings of hundreds of thousands of dollars by reducing the inventory needed, and cutting the cost of production line stoppages as well.

The Ford trial is part of a number of trials TNT is working on, including one with Volkswagen.