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278 Part Two Information Technology Infrastructure

it is being transported to a storage area, and also the location where it is
placed in storage.
When components are needed for manufacturing, a tugger driver uses the
DLOG mobile computer to identify the location of the carrier with those spe-
cific components, and then goes to that location. After the carrier has been
retrieved and taken to a workstation, its bar code is scanned by an employee
at that station using one of the handheld computers. This updates the system
to show that the required components have been received.
By enabling tugger drivers to quickly locate components, the new system
has increased productivity and ensures that materials are not overlooked
or misplaced. Fewer materials are thrown away because they expired and
were not used when they were needed. The system is able to send alerts of
materials that have been sitting too long in one spot.
When AeroScout and the new material inventory tracking system were
implemented in September 2011, Continental made sure all production
employees, including truckers, tire builders, and management, received
training in the new system functions. The company also provided workers
with instruction cards with detailed descriptions of system functions that
they could use for reference.
Thanks to the new system, the Sarreguemines tire factory has increased
production from 33,000 to 38,000 tires per day. Wastage of tire components
has been reduced by 20 percent.
Sources: Claire Swedberg, “Continental Tire Plant Increases Productivity, Reduces Waste,”
RFID Journal, April 25, 2012 and www.conti-online.com, accessed May 2, 2012.
ontinental Tires’s experience illustrates some of the powerful capabilities
Cand opportunities provided by contemporary networking technology.
The company uses wireless networking, radio frequency identification (RFID)
technology, mobile computers, and materials inventory management software
to automate tracking of components as they move through the production
process.
The chapter-opening diagram calls attention to important points raised by
this case and this chapter. Continental Tires’ production environment extends
over a very large area, and requires intensive oversight and coordination to
make sure that components are available when and where they are needed
in the production process. Tracking components manually was very slow and
cumbersome, increasing the possibility that components would be overlooked
or lost.
Management decided that wireless technology and RFID tagging provided
a solution and arranged for the deployment of a wireless RFID network
throughout the entire Sarreguemines production facility. The network
made it much easier to track components and to optimize tugger truck
movements. Continental Tires had to redesign its production and other
work processes and train employees in the new system to take advantage of
the new technology.
Here are some questions to think about: How did Continental’s real-time
location system transform operations? Why was training so important?

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