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RFID Manufacturing Case Study India — 35% WIP Loss Reduction |

Case Study — Manufacturing & Industry 4.0

How an Auto Components Manufacturer Reduced WIP Loss by 35% and Gained Full Production Visibility with RFID

35%
WIP Loss Reduction
12%
OEE Improvement
Real-time
WIP Location Visibility
16 months
Payback Period
Company
Confidential — Auto OEM Tier 1 Supplier
Location
Chakan, Pune
Industry
Automotive Components
Production Lines
4 lines, 3 shifts/day
Daily Output
12,000 components/day
Challenge Type
WIP tracking, tool management

The Challenge

This Tier 1 auto components supplier manufactures precision-engineered parts for three major OEMs in India. Operating 3 shifts across 4 production lines, the plant produces 12,000 components daily with extremely tight quality and traceability requirements from their OEM customers.

The core challenge was Work-In-Progress (WIP) visibility. With components moving through 8–12 machining stages, there was no reliable way to know the real-time location of work orders on the shop floor. Components would frequently get misplaced between stages, mixing up batches from different work orders — causing rework, scrap, and OEM shipment delays.

  • 3.2% WIP loss rate — components misplaced, mixed with wrong batches, or scrapped due to traceability gaps
  • No real-time visibility into which work order was at which machining stage
  • OEM customer audit trail requirements not being met (IATF 16949 compliance risk)
  • Cycle time analysis impossible — no timestamp data for individual components at each stage
  • Tool management manual — calibrated tools being used beyond their service life undetected

The Solution

Identium deployed an on-metal UHF RFID system using industrial-grade hard tags that could withstand the harsh machining environment — coolant spray, metal chips, and high temperatures at certain stations.

Hardware Deployed
  • Industrial on-metal UHF RFID tags (on work pallets)
  • 8x Fixed readers at machining stage entry/exit
  • 2x Handheld readers for exception handling
  • RFID-enabled tool tags (critical calibrated tools)
  • Fixed readers at dispatch dock
Integration
  • SAP PP module (production planning)
  • IATF 16949 traceability reports
  • OEE dashboard (per-line, per-shift)
  • Tool management calibration tracking
  • Automated OEM shipment ASN generation

Technical Considerations

Manufacturing environments present unique RFID challenges that require specific product selection:

  • Metal interference: Standard RFID tags detune on metal pallets. Solution: on-metal tags with ferrite layer that maintains read performance when mounted directly on steel.
  • Coolant & cutting fluid: IP67-rated tags selected to withstand continuous coolant exposure. Tags tested at 85°C coolant temperature.
  • RF interference from CNC machines: Site survey identified interference zones. Fixed readers positioned to avoid null zones; directional antennas used at two stations.
  • Read speed at line speed: Pallets move at 1.2 m/s on conveyors. Reader dwell time verified at >99.8% read rate during testing.

Results After 12 Months

35%
Reduction in WIP loss (3.2% to 2.1%)
12%
OEE improvement (78% to 87.4%)
100%
IATF 16949 traceability compliance
Zero
Calibration overruns on tracked tools
"The RFID system gave us something we never had before — real-time visibility into exactly where every work order is on the shop floor. Our OEM customer auditors were impressed by the traceability data. We've since expanded the system to our second plant."
— Plant Manager, Tier 1 Auto Components Supplier, Chakan

Products Used in This Deployment

ProductQuantityApplication
Industrial On-Metal UHF RFID Tag800 unitsMounted on work pallets, reusable
UHF Fixed Reader (4-port, industrial)8 unitsStage entry/exit and dispatch dock
UHF Handheld Reader (rugged)2 unitsException handling, manual scans
Micro UHF RFID Tool Tags150 unitsCalibrated tool identification and tracking

RFID for Your Factory Floor?

Get a manufacturing-specific RFID proposal. We handle harsh environments — metal, coolant, high temp, EMI. IATF 16949 and ISO compliance documentation available.

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