Question: read the case study & answer the case question(s). thank you! ignore the second photo, its blury! Bracket InternationalThe RFID Decision Case Study Jack Bracket,
read the case study & answer the case question(s). thank you!
ignore the second photo, its blury!
Bracket InternationalThe RFID Decision Case Study Jack Bracket, the CEO of Bracket International (BI), has grown his business to sales last year of $78 million, with a cost of goods sold of $61 million. Average inventory levels are about $14 million. As a small manufacturer of steel shelving and brackets, the firm operates three small factories in Ohio, Kentucky, and South Carolina. BI's number one competitive priority is "service first." while high product quality and low cost are the number CHAPTER 4 Technology and Operations Management 79 A heted with RFID de foron tudi - RFID etimated to be there For the set metal bow bureaded eng:2 pm.001 the year of total all the bestmated to reduce to perome 0.002) RFID teolog The 0-2 percent is due to damad RFID torrad frequency interference transmission problems Mads are a problem beim erst and not recorded in ce system. The vendor guessed that de micolo The code adela them woda per year with Melide og brother code wiem to and frequency Identification KID The KPID vendors kept talking buton de operational planning and control the RFID and software tes culpeed the efikows. One RFID oder por the formation Barcode s time for the sheet metal business Cm ) 10 seconds per item and include employee to find the bar code pick up their position the item codederit the bar code, pleally reposition the se moted this estimate condary qualitat According to the RFID vandens, other benefits of RFID esclude really located inventory fewer required inventory andits, and reduced place and theft. However, they did not have any informatie quantifying these benefits Beclettentional recently had problema mg quickly to change customer requirements. Bhal to de Woll Fumit job order request because it could not act quickly encoduto a change in job see ifications undersi. Eventuali lost the Furniture business which werd about me per your Another Bluser Home Depot beep talling about Bleeding to be more euble became Home Depots demand point-of-wale wystems que frequent comes to Borders Home Depot BE top stoso every elit seeks to be made Keep Home Depot Me Bracket doesn't think throwing the bu coding stem tut was a good idea The Bl players are familiar with sing bar coding trad bereas the RFID technology sem ludden from employees. He also doesn't think thereum The churcode we does not hade the other com the employees others. The 10 do weet home or defecte beroeplacing aged ladet 80 two.pt Services include pro hand women mengde prin care cutomer artemen chans and kes such as shipping distribution The Chinese fatores are some wys when the South Carolina factory pe by all the factories we bar coxung Label and to monitor and control the focus about 9,850 puedes at all the factories. Ant be an in part alleet te aber of Lo rivets, a quarto bet ready Tut whatera barcode TIKK All the Bl factories can be fitted with RFID related software) for $520,0XX, In klition supply chain operating system software that the advantage of the faster place of RFID informatica ployees are familiar with using bar coding technol technology (readers. item tap and landare is priced for all three factories at $450,000 and includes substantial tuning and debugging consulting senice RFID scan time is estimated to be 2/100ths of a second or basically instantaneous For the sheet metal business, bar coxle misreach average 2 percent (e. 0.02) over the year of total reals, and this is estimated to reduce to 0.2 percent tie. 0.002) for RFID technology. The 0.2 percent is due to damaged RFID tags or occasional radio frequency interference or transmission problems Misreads are a problem because items are lost de factory year con and not recorded in BIN tie B employee works computer system. The 2,000 hours per year with vendor guessed that a ang salary including single misread could cost benefits of 0.000 a manufacturer on average The most sales calls $4 but noted this estimate have Me Backet consider could vary quite a bit img switching from the old bar coding system to a radiofrequency identification According to the RFID vendors, other benefits of desse (RFID). The RFID vendors kept talking RFID systems include readily located inventory, aliouton-demand" operational planning and control lewer required inventory andits, and reduced and how the RFID and software systems could speed misplacements and theft. However, they did not up the pace of BS workflows. O RFID vendor pro huve any information quantifying these benefits. vided the following information Bracket International recently had problems adapt Barcode scan times for the sheet metal business ing quickly to changing customer requirements. BI had similar to Beverage 10 seconds per item and include employee time to find the bar code to deny a Woll Furniture job order request because it pick up the item and position the item or could not react quickly enough to a change in job spec handheld bar code reader so it can read the bar ifications and order sie. Eventually, BI lost the Wolf code, and in some cases physically reposition the Furniture business, which averaged about $2 million Item Item orientation is a problem with manual per year. Another Bl customer. Home Depot, keeps talking about Bl needing to be more flexible because The 10-second bar code antim does not include Home Depot's on-demand point-of-sale systems to ther employee walking to the bar coding area or quire frequent changes to BI orders. Home Depot is eppet. It is uned that the employee is in BI's top customer, so every effort needs to be made to Mr Bracket doesn't think throwing away the bar coding system that works is a good idea. The Blend bar coding keep Home Depot happy . po to scan the item. The 10 seconda does not Include the time to place a scratched or defecte record label Replacing a damaged or code including changes to the computer system, mowy ter op to 5 minutes 80 op whereas the RFID technology from employees. He also doesn't think the retum om seems hidden investment (ROI) on an RFID system is compelling. So why does he feel so guilty when the RFID vendors leave his office? Is he doing the right thing or not? He has an obligation to his trusted employees to do the right thing. Should he adopt RFID based purely on stra tegie and/or economic benefits? He writes down several questions he needs to investigate. Case Questions for Discussion 1. How does RFID compare to bar coding 2. What is the economic payback in years for this possible RFID adoption (Hint: There are two benefits that can be quantified-labor savings due to faster sean times and misread savings. Annual benefits divided by economie benefits equals payback) 3. What are the risks of adopting a new technology too early? Too late? 4. What do you recommend Mr. Bracket do in the short and long terms Explain your reasoning