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RFID: A Powerful Tool for Cutting Construction Costs

By Sam Liu



While cell phones provide a quick way to resolve questions and deliver information, these manual tools provide no value when calls are missed. Radio frequency identification (RFID) technology overcomes this limitation by delivering accurate information automatically without relying on workers’ manual intervention. As the RFID market expands, the construction industry’s interest is growing due to proven productivity gains and cost savings.

RFID systems store information in compact, durable tags that automatically communicate with wireless readers. Information is encoded in a wireless chip encased in a tag, which can be made to withstand construction and maintenance operations and outdoor environments. RFID provides a convenient and reliable way to replace paperwork on jobsites, and unlike barcodes, no direct line of site or manual scanning is required to read RFID tags.

In addition to being used in aviation to track cargo containers, baggage and critical maintenance parts, and in health care to obtain life-saving medical equipment, RFID is making its mark in construction, especially for yard management operations and tracking hot mix asphalt (HMA) or equipment.

Automating HMA Delivery
HMA firms have integrated RFID into their processes and reported positive returns on investment in less than a year. Here’s how a system works:
  1. Durable RFID tags are placed on asphalt delivery trucks for automatic identification.
  2. RFID readers are installed at key checkpoints, such as the asphalt plant and on pavers at the jobsites.
  3. When a delivery truck arrives at the plant, its presence automatically is detected and its ID and time of arrival is captured and stored in the central system.
  4. Once the truck is loaded and weighed, its departure is automatically detected—providing visibility of loading efficiencies at the plant as well as departure times to better coordinate with the jobsite.
  5. When the truck arrives at the jobsite, its presence is detected by the pavers, providing insights into the delivery time and efficiency of the truck operator.
  6. Once the load is laid down and the truck departs the jobsite, that information is sent to the central system for coordination of additional loads or to gain visibility of the paving operation.
  7. Because the system is based on a wireless communication network, information is available in real time via the web or mobile phone. In addition, the information can be made available to all parties for just-in-time coordination and efficiency.
The system has proven to be cost-effective because it reduces delays and errors during loading and paving. It also saves time writing and copying load details, helps ensure asphalt is poured within its time window and prevents erroneous information from being recorded. Because up-to-date information is available to parties in real time, businesses can adjust their schedules and operations to be more efficient.

Based on actual implementation, a company managing two asphalt plants and nine pavers can expect savings between 2.5 percent and 5 percent on trucking costs, and a return on investment in three to eight months. A company with four plants and six pavers can expect an estimated payback in five to 10 months.

Broader Uses
Two additional benefits of RFID’s automatic tracking capabilities are asset tracking and yard management. For asset tracking, readers can be set to track tagged items at tool cribs, depots, warehouses and jobsites. And, with the reader infrastructure in place, the system can use RFID employee ID badges to automatically associate items with the worker who’s using them. RFID tracking reduces time spent looking for tools and equipment, and decreases asset losses.

The payback for using RFID for yard management comes from gaining inventory visibility, and from saving time during manual equipment check-in/check-out procedures. One company calculated it could reduce vehicle check-in time from minutes to seconds. Another firm set up an RFID system to monitor its 3-acre yard with 30- to 40-foot entry and exit areas. The system automatically tracks outgoing and returning equipment in the yard, links the equipment to the job order, and provides data valuable for planning maintenance and capital expenditures.

The cell phone gave construction operations the benefit of real-time communication and has become one of the most valuable tools on the job. RFID extends that value by adding automatic identification and eliminating the need for manual processes. Today, construction companies build a competitive advantage by using RFID to reduce delays, prevent errors, cut losses and make better use of labor and equipment.


Sam Liu is director of marketing for Intelleflex Corporation. For more information, email sliu@intelleflex.com or visit www.intelleflex.com.

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