Manufacturing
Manufacturing Inventory Management
The very lifeblood in any manufacturing operation is inventory. At its most basic level, a manufacturing operation takes inventory in the form of raw materials or components and turns them into some form of finished good, which can then be sold to someone higher up the consumer chain. It might be the finished good is going straight to a store shelf for sale to a retail consumer. Or it might be that what the manufacturer sells is considered a “sub assembly” to be used as a component by a different manufacturer, that they will eventually turn into a finished good. Imagine a company that makes car seats, that in turn get sold to General Motors. Regardless of how many steps are in the process from beginning to end, the goal of any manufacturer is to take raw materials and/or components and convert them into something sellable. In that process, inventory changes shape and form, gets combined with other inventory, typically has a lot of labor expended on it, and ultimately ends up in some finished state.
But even before inventory is in the form of raw materials or components, it first sits in the form of cash…in the bank. That’s the way inventory should be considered and treated. Business owners convert cash into inventory, through the purchase of raw materials and components. At the end of the manufacturing process, they hope to take their end-product and convert it back into cash by selling it. Ideally, they hope to sell it for more than what they paid for the raw materials originally, with enough left over to cover their labor and overheads, and still squeeze out a little profit.
Raw Material Inventory Management
Inventory needs to be considered and treated like cash. It needs to be managed, monitored, and accounted for just like it was cash in the bank. But unlike distribution centers, where inventory comes in, sits in storage for a period of time, then ships out, inventory in a manufacturing operation is constantly moving throughout the facility, constantly changing form, with labor being applied to it. It is imperative that there are systems in place to ensure that inventory doesn’t get lost and that people with the need-to-know have constant visibility as to where it is and what state it’s in.
Of course, the complexity of the manufacturing operations will determine how involved and complex the management systems need to be. But even for the smallest of operations, a basic system that simply allows inventory to be received, periodically counted or audited, and then consumed into a sub-assembly or finished good is essential. Even simple accounting systems with the ability to create and manage “BOMs”, or Bills or Material, will have this functionality. A BOM, or Bill of Material is simply a list of the components or raw materials that go into making the finished good. Think of it as a recipe of sorts.
Manufacturing Execution Systems
More complex systems come into play when the inventory might go through a myriad of processes or when the cost of the labor expended to process the inventory is actually applied to the cost of the finished product, or the assembly being produced. In these cases, a software-driven system such as a Manufacturing Execution System, otherwise known as an “MES” might be more appropriate. These systems provide a tremendous amount of granularity of information concerning where inventory is, what state it’s in, what processes it’s been through, what labor has been applied, by whom, and at what work center.
Work-in-Process Inventory
The MES manages all aspects of “Work in Process”, or WIP inventory, which is inventory that has been released into the manufacturing process. While in the form of WIP, inventory is at its most vulnerable stage for being lost or damaged, so tight constraints on tracking WIP inventory is crucial. The MES keeps track of the inventory through every step of the manufacturing process, including the addition of WIP or outside or third-party contributions. The MES will be fully integrated with the accounting or ERP system so that information transfer is automated and seamless.
AML Products for Manufacturing
Striker
Enterprise Mobile Computer
The Striker, considered the lightweight version of the Scepter, is also perfectly suited for either cloud-based or on-premise inventory management systems.
Scepter
Enterprise Mobile Computer
The Scepter is the result of combining technology with contemporary innovation… an enterprise-grade Android computer that will excel in virtually any task.
Firebird VMU
Vehicle Mounted Computer
The Firebird VMU fills a void in the market for affordable, yet durable, forklift-mounted devices.
Inventory Tracking: Enter the Barcode
The common denominator between any entry level inventory system or a high-end Manufacturing Execution System, is the ability to track inventory, from start to finish. And today, the most cost effective, accurate way of tracking inventory is with barcodes.
The production of barcode labels is relatively inexpensive and while the acquisition and purchasing of barcode scanning equipment can seem daunting at first, the return on investment is rapid and easily identifiable. Scanning a barcode versus manually keying the data into a computer was proven to be more efficient decades ago. There is no valid argument for manual data entry systems over automated data collection with barcode scanning mobile computers. Even in smaller operations, there is equipment available that can get the job done on a tight budget.
In many cases, components or raw materials will have barcode labels applied at the original supplier so that when they arrive at the manufacturing facility they are already affixed and ready to scan. If not, then the labels can be applied during the receiving process. The primary barcode is used to identify the Item Number or Part Number that was assigned to the material or component. Some systems may use the abbreviation SKU, or Stock Keeping Unit, but ultimately the purpose is the same. Additional barcode labels may be required to add additional identifying information about the inventory. For example, some components have unique serial numbers that need to be maintained and archived, so a barcode containing the serial number could be applied to the product. Some raw materials may have date codes, batch codes or expiry dates that need to be identified and catalogued for traceability purposes. Again, a barcode with this information can be applied to the item.
There are 2D or two-dimensional barcodes that can be encrypted with large sums of data such that an item number, serial number and/or lot number could all be contained in a single 2D barcode. However, note that scanning 2D barcodes requires a scanning device capable of scanning them, which are readily available, albeit at a slight price premium. But even if the 2D barcode can be scanned, the host software that the data is being scanned into may not be able to parse out the individual parcels of data. It may be necessary to keep the barcode data segregated into separate labels with conventional 1D barcodes, or one label with multiple barcodes, and then scan them individually.
Utilizing Location Labels for Organization
Location labels are used to identify where the inventory is to be stored such as on a rack, a shelf, or in a bin. They can also be used to identify staging areas or work centers. Location labels are used in conjunction with the item labels to precisely identify where the inventory is located within the facility. Without them, the system will likely know the inventory is in the building, just no idea where it is. In most systems it’s a simple task to scan the item label followed by the location label, any time the inventory is moved from one location to another.
Choosing the Right Barcode Scanner
Devices to scan the barcodes can come in all shapes and sizes giving manufacturing companies the opportunity to select the equipment that will make their workers the most efficient. The simplest of these would be a handheld barcode scanner that is connected to a PC workstation either through a USB cable or a Bluetooth connection. While this would be the simplest and least expensive, it would also provide for the least amount of flexibility as the operator would be required to stay within close proximity to the PC. Even with a Bluetooth device, the user would need to see the prompts on the screen to make sure the data is being populated into the application properly.
Mobile Computers Designed for Manufacturing
Seamless Connectivity
Mobile devices provide the highest degree of flexibility and versatility but come at a higher price. In addition to the devices themselves, a robust Wi-Fi infrastructure must be in place to utilize these devices. Users of barcode scanning mobile computers can run a web browser or a dedicated mobile app for connecting to onsite web-based or to remote cloud-based systems. And most mobile devices can also run terminal emulation software for connecting into older legacy systems.
Android Operating System
Virtually all industrial mobile devices today run the Android Operating System and most software developers have embraced it as the “OS of choice” for developing industrial applications. There are no license fees associated with Android. In addition, it is “open source” and therefore highly customizable and has been quickly adopted by software developers worldwide.
Rugged & Reliable
The most important aspect of selecting a mobile device for manufacturing operations is selecting a device with a form factor that is appropriate for the daily tasks and the environment in which it will be used. Some devices have pistol grip handles for applications requiring high volume, even rapid scanning. Most devices have an array of options available for the barcode scanning technology employed but understand that requiring the ability to scan barcodes from further away will increase the cost of the device. Different devices will have different screen sizes and keypad layouts. Some devices will have no keypad at all, which is not recommended if the task requires any amount of keyed entry. Touchscreens are notorious for keying errors, the kind that autocorrect software can’t fix.
Long-lasting Battery
One very important consideration when selecting an industrial mobile computer is battery life. It’s important to select a device with a hot swappable battery, meaning that the battery can be removed while the device is on, and a fresh battery installed, without having to power down and reboot the device. If the battery can’t be removed and replaced, and the internal battery can’t run a full shift before it needs to go onto a charging cradle, it’s probably not going to be a very popular device with the users. Also, select devices with batteries with the highest possible “watt-hour” rating. The more watt-hours, the longer the battery will last. If the watt-hour rating isn’t published, ask the vendor to provide it.
Forklift Computers with Safety and Efficiency in Mind
It should also be noted that not all mobile devices are designed to be hand carried. Some are designed specifically to be mounted onto forklifts or powered pallet jacks. Generally, these devices are attached directly to the forklift, have bigger displays, but require the use of a tethered USB or Bluetooth barcode scanner. Be careful when selecting a forklift computer and don’t select a device so large that it impedes the view of the driver when the forklift is in operation. It is sometimes desirable to simply use a handheld mobile computer on the forklift. The advantage of the built-for-purpose forklift computer is the bigger display makes the information easier to read for the driver. It draws its power from the forklift so there are no batteries. And there’s less danger of the device getting damaged or lost since it’s attached to the forklift.
Important Considerations for Manufacturing Plants
Just Say No to Consumer Devices
Most manufacturing facilities can be demanding and even punishing on equipment. Mobile devices will be dropped. Repeatedly. Select devices with high drop and tumble ratings. No device is indestructible, but try to pick one that feels robust, but isn’t so heavy it causes discomfort, and not so expensive, it breaks the bank. And under no circumstances should you try to use consumer devices such as smartphones and tablets in an industrial environment. They won’t last. They weren’t designed to be used all day every day and were certainly never designed to survive the type of abuse they will likely be subjected to in most manufacturing plants. Their batteries can’t be hot-swapped and the devices themselves are difficult and expensive to service.
Don't Forget About Warranties
There is one final consideration you should make when purchasing mobile devices. Think and plan ahead. Buy the extended warranty or maintenance contract. These aren’t consumer devices for your home. They’re going to get hammered. The cost of a service contract is typically comparable to a one-time flat rate repair charge, but the service contract covers multiple incidents. And plan for he future by maybe buying a little more device than what you need today. Are you just scanning 1D barcodes today? Go ahead and get devices that can scan 2D barcodes. The cost increase is negligible and a lot less than the cost of buying new devices 2 years from now when things change…and you need to scan 2D barcodes.
Manufacturing environments can be challenging, but with the right systems, the right software, and the right barcode data collection tools, any operation can run smoothly and efficiently. But always remember that converting cash into inventory and selling finished goods for profitable revenue…is the goal.
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About AML
AML was founded in 1983 to respond to a need in the barcode data collection marketplace for high performance, easy-to-use, and cost-effective barcode and data collection products. Our goal is to provide sensible solutions for mission critical activities, to improve efficiency and productivity, and to make barcode data collection applications worry-free.
