Medical Device Link.

Originally Published MEM Fall 2003

RF DATA ENTRY

A data-capture solution using radio-frequency data entry can increase throughput of a medical electronics distribution center.

Connie Green

The RF handheld captures information such as quantity, bin numbers, and serial numbers.

A radio-frequency (RF) data-capture solution can dramatically boost throughput in medical electronics distribution centers by increasing the speed and accuracy of information flow. At the warehouse floor level, RF terminals save time and avoid errors by allowing automatic scanning of products and bins. Inventory can be reduced while operating at higher levels of customer service because product information is updated on a real-time basis.

A comprehensive technical project plan, strong project management structure, and a broad mix of technical skills are all required to ensure the best possible return on investment while minimizing disruption and expenses. Several key areas must be considered, including: defining the system requirements, ensuring RF coverage throughout the plant, interfacing to the enterprise resource planning (ERP) system, and providing user training. This article outlines the activities necessary to establish a mobile data-capture solution for a medical electronics distribution center.

Although medical manufacturing companies were not among the first to implement RF in manufacturing and distribution facilities, recent market trends have significantly increased interest in this technology. Distribution centers face increasing challenges as customers move to reduce their own inventory by shifting to buying patterns that involve more-frequent and smaller orders. This trend places a greater strain on the distribution center by increasing the number of orders and amount of paperwork. This increased activity does not reflect an increase in sales volume.

This change in ordering patterns has also caused customers to demand delivery in less time than was required in the past. Of course, manufacturers could improve customer service by increasing their own inventories, but this would substantially raise carrying costs because of the high value and short product life cycles of medical electronics equipment. Other long-standing characteristics of the industry, such as the need to track serial numbers to retain the ability to recall items, also present a strong case for implementing RF data collection.

Current Paper-Based Process

Even though nearly all medical electronics manufacturers have implemented ERP systems to organize and plan their manufacturing and distribution operations, data collection is still mostly a paper-based process. When operators go out to pick a product or replenish a pick face, they normally write down the quantity, bin number, and often the serial numbers. At some point in the day, an operator typically delivers the paper documents to data-entry operators who manually enter them into the ERP system.

This process means that operators spend a considerable amount of time recording information, which reduces the speed at which they can move product through the distribution center. A data-entry staff person is required to enter the information after the fact, which adds cost and increases the risk of data-entry errors. The result of delayed data entry is that warehouse operators may have difficulty locating the right product, or customer service reps cannot accurately identify product availability for customers. Automated RF data collection can dramatically streamline this distribution process. A typical process flow using RF data collection moves as follows:

• When goods are received in the distribution center, receiving personnel sort the product and scan each item.
• The ERP system generates a move ticket that provides authorization to move the goods to storage racks.
• In a random put-away system, the operator selects the most convenient racks, scans the product, the storage rack location, and the move ticket.
• The product immediately appears as being available for sale in the ERP system.
• At predetermined intervals, the ERP system checks inventory in the forward pick areas and generates replenishment orders as needed.

When a material handler logs in or finishes a job, the RF handheld presents the user with enough replenishment picks to fill a forklift and sorts them into an efficient pick path. As forklift operators pick each item, they scan the product and pick bin, updating the inventory record in the ERP system. The RF interface then automatically organizes the put-away task, accounting for the position of the goods on the forklift. A user scans the put-away location, and the ERP system is updated in real time.

Because of the visibility of the inventory, customer orders that need to be picked can now be released at a faster rate. As the orders are packed into shipping boxes, a user scans the product, serial number, and batch number (if required). The RF terminal communicates with the ERP system to automatically update the customer order. The system then generates the shipping documentation.

Improving Throughput and Accuracy

The implementation of an RF system that interfaces with an ERP system can improve throughput and accuracy by dramatically reducing the amount of time required to track inventory. Operators simply scan a bin and product with a handheld terminal, instantly updating the ERP system.

Additional time is saved because operators can also query the ERP system. For example, if the bin they were originally sent to is full, they can query the ERP system through a handheld terminal to find another bin with the same product.

Data-entry accuracy is close to 100% because just about the only error that can be made is scanning the wrong bin. This error is easy to correct because the bin that is improperly scanned is nearly always next to the correct bin.

The ability to track exactly when operators start and finish jobs and to monitor exactly how much work is accomplished makes it possible to implement reward-based systems that can provide additional improvements in productivity.

RF solutions can also improve customer service by reducing order turnaround time. The inventory of the forward pick bin is updated each time an item is taken from it, rather than when a data-entry clerk receives a handwritten record. When a flurry of orders causes the level of a forward bin to drop below minimum levels, the ERP system can instantly generate a replenishment order.

This RF approach substantially reduces the chance of running out of product in a forward bin, eliminating delays that frequently lengthen delivery times with a paper-based system. The streamlining of operations using bar code data capture also reduces the time required to process orders.

Selecting an Integrator

An important part of the implementation process is selecting an integrator. Look for a company with a long track record of successfully implementing RF solutions in the medical electronics industry. An integrator should also have experience in interfacing with the company's specific ERP system. Also take a close look at the process that the integrator has developed to define the requirements of the application, achieve mutual agreement on project goals, and develop an integrated solution to achieve those goals with minimal risk. Finally, if the product is distributed on a global basis, select a company that provides support to help implement compatible systems at the company's facilities worldwide.

A comprehensive implementation process is critical to ensure that a project is executed successfully. Typically, the first step is for the integrator to review the entire business process, from receipt of product to shipment to customer. Issues that are normally addressed during the system definition phase include each transaction, data validation criteria, database schema, label requirements, communications requirements, security issues and requirements, network topology, RF hardware requirements, and reporting requirements. It's especially important to define all of the information that needs to be captured and delivered by the RF system.

Documenting Special Application Requirements

The automated system enables forklift operators to scan items as they are picked, automatically updating inventory records. (click to enlarge)

The next step is to document any special requirements of the application. As an example, the noise level of the environment should be considered because one that is too loud may rule out the use of voice-recognition equipment. Another consideration is the type of hardware that will be selected to use in conjunction with the equipment for transporting product. For example, the use of forklifts normally precludes the use of wrist scanners, which are convenient but have a range of only a few feet.

An integrator should perform a site survey to determine how many wireless access points are needed and to identify locations for them that provide coverage throughout the required area. An integrator typically provides a report that includes site survey results, suggested equipment and locations, drawings that show the coverage pattern of each access point, cabling information, and a preinstallation checklist. It's also important to identify existing RF sources and receivers in the plant to avoid interference.

An RF integrator then documents each ERP screen and associated business process to be accessed on the RF handheld. Normally, a certified interface to the ERP system is used that was developed either by the ERP company, the solutions provider, or a third party.

RF integrators that are experienced in the medical electronics industry can reduce implementation cost and time by using templates developed for this specific vertical market. This template typically covers 80–85% of the needs of the typical distribution center.

A provider should be able to modify the templates or create new ones that are designed to specifically meet the company's requirements. For instance, a typical transaction is a material location inquiry screen that lets an operator type in a material number to obtain lists of the locations where the material is stored and the quantity at each location.

Selecting Wireless Technology and Terminals

Another important part of the implementation process is identifying the technologies and equipment that are best suited for the application. The majority of new applications today use the IEEE 802.11b RF standard because it is an open technology that creates seamless interoperability of equipment from many different vendors.

The 802.11b specification allows for the wireless transmission of approximately 11 Mb/sec of raw data at indoor distances from several dozen to several hundred feet and outdoor distances of several to tens of miles as an unlicensed use of the 2.4 GHz band. Any network, wired or wireless, faces the possibility of information theft. In its simplest form, wired network security is straightforward: secure the facility and use access controls such as passwords for sensitive information. However, securing the facility becomes more challenging because the RF waves used by a wireless network can extend beyond the physical perimeter of the building or location where it is being used.

IEEE and other standards bodies are working aggressively on security issues. However, to date most of the specification work has embodied fairly straightforward encryption-based security schemes that are not suitable for all security needs.

Although these standards continue to be researched and ratified by the appropriate specifying authorities, many wireless hardware vendors have created unique vendor-specific offerings to address advanced security requirements. These proprietary security measures are effective; however, by their nature they tend to lock customers into a system that is composed of a single vendor's products. As a result, interoperability of system components, one of the benefits of using 802.11b un- licensed wireless technology, is hampered with the addition of advanced security.

IEEE is continuing work on the 802.11i Security Framework, which will create a security structure usable across multiple vendor platforms. Until then, it's important that an integrator can consult with the company in this area.

Another important consideration is selecting the right handheld terminal for use by warehouse personnel. Technological considerations are important, but it's important to understand the users' needs. It's best to select several possible alternatives and to solicit input from warehouse personnel before making a final decision.

Handheld scanners and forklift-mounted equipment used in distribution applications are generally much simpler to use than complex personal digital assistants (PDAs). The level of computer expertise of the users varies greatly.

Another factor to consider is that users often must wear gloves, which makes it difficult to perform complicated keyboard sequences on some of the smaller PDAs. The Symbol PDT 6800 or Intermec 700 series are examples of handheld terminals that are widely used in distribution applications. The units' drop, sealing, and temperature specifications give them the ability to withstand the wear and tear of use in a warehouse environment.

Reviewing the Results

An integrator should provide a walk-through of the systems requirements definition (SRD) prior to approval by the customer, which requires that the customer provide access rights to the ERP system test environment. If modifications were identified during the systems requirements phase, an integrator modifies the transaction templates and checks connectivity to the ERP test environment using a modem connection. Normally, an integrator then purchases the RF equipment on the customer's behalf and performs operational testing before release for installation.

Software support engineers install the software components on the server and perform a full system test with remote connection to the ERP test environment. Next, the RF equipment is installed, connected to the local area network (LAN), configured, and tested.

The product is tested against the SRD during and prior to the conclusion of the development process to ensure that it works as specified. The ERP interface is installed and tested on-site, working with the RF equipment. A formal acceptance test program is completed to ensure solutions meet the specifications set out in the SRD.

The solutions provider can perform end-user training but usually prefers to train the customer's trainer, therefore ensuring a transfer of knowledge. Technical training includes an overview of the system, routine maintenance, and backup and recovery procedures. The solutions provider should also deliver a user's manual that contains step-by-step procedures on how to use the handheld terminals. The manual should include screen captures of every prompt that can be viewed on the terminal.

Conclusion

When these steps are followed, the end result is a successful implementation that provides substantial business benefit by increasing warehouse throughput, reducing operating costs, and improving customer service.

Connie Green is ERP product director for Peak Technologies, Inc. (Columbia, MD). For more information, e-mail info@peaktech.com or call 888-275-7325.

Copyright ©2003 Medical Electronics Manufacturing