Researching software? Our FastStart Consultation will get you started quickly and save you weeks of research.RFID – A Construction Technology Dream Come True
What construction executive doesn’t daydream about tools and equipment that are safe and sound whether on a job site or in the warehouse, especially as construction projects decline and competition heats up? Dream no more, as radio frequency identification (RFID) technology combined with a comprehensive tool tracking system makes improved profits a reality.
According to a 2007 survey conducted by the National Equipment Registrar, contractors lose $300 million to $1 billion annually because of decreased productivity and business interruptions from lost or stolen construction resources. It’s a staggering number that takes into account time spent looking for misplaced tools or equipment.
For a quick visualization, here are two charts that show the annual cost of stolen or misplaced tools compared to the annual savings using ToolWatch.
ToolWatch, a technology company providing tool and equipment systems that track and manage resources throughout an entire construction organization, followed the trail of a misplaced $80 grinder. After incorporating time wasted looking for the tool, submitting a request for a new tool and tracking down an unused tool to send to the site, the cost came to a whopping $300 – almost four times the grinder’s actual value. Effective tool and equipment management with sophisticated technology like RFID helps firms keep track of valuable resources.
An RFID history lesson
Created in 1948 and used since World War II, RFID is used for a wide variety of applications in just about every industry. According to the RFID Journal, during World War II the British Royal Air Force placed transmitters on planes and receiving signals from radar stations on the ground to identify whether or not incoming planes were friendly. This technology evolved into radio frequency identification as it’s used today, where a signal is sent to a transponder to broadcast a signal.
In the decades since then, RFID tags have been embedded in police badges to prevent knockoffs, in U.S. passports to identify the traveler, and in cat collars to give felines free reign over the neighborhood. More unusual uses include casinos tracking gamblers’ betting habits with RFID tags inserted in poker chips and tracking schoolchildren with RFID bracelets.
In the construction industry, RFID has become a commonplace means for tracking and managing tool and equipment inventory.
How RFID tags track construction resources
RFID tags are affixed to tools and small equipment and scanned into and out of inventory. ToolWatch Enterprise, a software-as-a-system (Saas) application, combines an upcoming RFID feature whereby items needed from the tool crib are scanned, pulling a record of the item and assigning it to an employee or project in the database. The system does double-duty by not only tracking the movement of items, but managing when tools need to be maintained or replaced.
These features drive efficiency into the tool and equipment management process, allowing a company to reduce tool inventory expenses with fewer item replacements. Better yet, a systemized approach to managing resources lets managers know where and to whom tools are assigned, which reduces tool loss and hoarding. Jobs run more smoothly with less time spent searching for missing tools and equipment.
The main part of an RFID system is the RFID tag, which houses a chip and antenna. These chips, much like bar code labels, store unique identifying information, such as product or serial numbers and the item’s location and service history. A handheld scanner is used to access information stored within the chip. The scanners send radio energy to the tag, which is sent back to the scanner to locate data about the item in the database.
The benefits of tracking tools and equipment using RFID technology are many.
- RFID scanners can read RFID tags when they’re inside a carrying case or embedded in the tool, eliminating the need to remove items when checking them into and out of inventory.
- Internal RFID tags cannot be removed, making them a strong theft deterrent.
- Internal RFID tags are protected from external elements like water or electricity.
- A large amount of complex data can be stored in an RFID tag.
The bottom line
Combining the power of a SaaS tool tracking solution with technology like RFID provides the information needed to analyze how tools, equipment, materials and consumables are used and managed on construction projects. Real-time data gives an enterprise-level view of how to best utilize construction resources. This means construction executives have the power to make educated decisions rather than dreamy predictions about how to maximize profits, improve the bottom line and stay competitive in down times.
About the author
Don Kafka is the president of Denver, Colorado-based ToolWatch Corporation, a technology company providing tool and equipment systems that track and manage resources throughout an entire construction organization. ToolWatch’s Enterprise-wide and software-as-a-service (SaaS) packages offer real-time tracking and management information using the most current and reliable technology. Its applications incorporate technologies including Smart Client deployment, SQL Server Compact Edition and SQL Server 2005 Enterprise. ToolWatch’s customers include 30 percent of the top 400 general contractors on the ENR400 list and 28 percent of the top 50 specialty contractors on the ENR600 list. For more information, visit www.toolwatch.com or call 1-800-676-4034.