1 Applying RFID for Cutting Tool Supply Chain Management

Radio frequency identification (RFID) technology offers the possibility of significantly enhancing tool management and tool procurement process. We present an exploratory project in which we study the role of RFID in spare parts supply chain management. We discuss integration of information captured using RFID at various levels in the supply chain including procurement, Enterprise Resource Planning (ERP), Quality Performance Management (QPM), Manufacturing Execution System (MES), and CNC Machines. An analysis of RFID information flow characterizes the impact of integrating this technology into existing IT infrastructure and enterprise software. Specifically, we examine the impact of RFID in tool management and associated quantify the benefits, information accuracy, and productivity improvements by automating the business processes. The evaluation result shows applying RFID saves more than 50% of data entry time process.