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Pinnacle Manufacturing Case Summary

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For the plant it has been decided to use the passive RFID technology, as it one of the cheapest solutions, moreover it requires antenas to be placed around the factory, which makes the control process simplier and more efficient.
This is due to the fact, that antennas could be installed anywhere in a facility, for our case they would be installed in the stock areas of the factory. After calculations, it has been found that it would require at least eight antenas to cover all the stocks at the factory (See Figure 6). The average price for the antena is $250, which requires a deaper research in this industry. Figure 6: Positioning of the antenas in the warehouse (GAO Group Inc. 2017).
This solution is considered as the chepest, as the only requirement is to track incoming and outbound ketchup pallets. Moreover, putt-away equipment such as electric forklift trucks could be equipped with wireless computers and RFID readers, this would optimise and decrease the time for dispatching even more.
However, it is important to mention about an active RFID technology in order to understand why it is not suitable for the case of the production in-house logistics. Active system provides constant visibility of inventory, they are placed in the zones wherever inventory needs to …show more content…

Based on the fact, that the average salleries for blue-collor staff at Russian factories is 30,000 Rubles it is easy to calculate that one blue-collor costs at least 360,000 Rubles per year for the factory, which is $6,025 as at 24th April 2017 (Trud. 2017). Even ignoring taxes, the medical insurance, transportation costs from and to the factory, bonuses and other social programms the system would pay back all investments within 6 months. The benefit to cost ratio is 2,74 in the first year, which is a good result, especially at times of the process optimisation and cost cutting

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