Implementation of Barcode system - 2012

Introduction: Bar coding is no longer a High Tech system, but a user-friendly tool that can help all users. The cost of scanners and the amount of required software have declined to a point where almost anyone can justify implementation of a bar code system. The data contained in a bar code is nothing more than product reference information, which the computer uses to look up records associated with the product. Product records such as on-hand balances, warehouse locations and production status can be readily obtained by scanning a bar code. Bar code systems consist of two main components: the hardware (scanners and decoders) to read the bar code labels, and the software to process the information and interface with your existing business management software. Advantages: 1. Reduction in errors. Bar code systems reduce the number of data entry errors. This has been proven in studies showing the typical error rate for manual data entry to be one error in 300 characters. Todays bar code scanners are almost error free, with some scanners documenting error rates of one per many million characters. This reduction in errors can have far reaching impact on service levels throughout a company (and ultimately to its customers). 2. Savings in Time. Besides being more accurate than manual data entry, the entry of data using bar codes is much faster. Whereas routine manual data entry for a particular Pick list may take a few minutes, transferring this information via bar code can take just a few seconds. In a company that processes hundreds or thousands of transactions, these time savings will mount up. The Real-time stock updating for new receipts and issues will make ERP system more robust and powerful. 3. Improved Operating Efficiency. Considering bar codes provide faster and more accurate data collection, less time is spent on the data entry process and follow-up error resolution. This frees up man hours to handle other tasks, while still responding to the needs of internal customers. 5. Meeting Warehouse principles. All materials under inventory system are operated through First in First out system through lot management control. 6. Overall Cost Savings. Each of the above benefits contributes to ultimate cost savings. Although there will be an initial outlay for the hardware and software required to establish a bar code system, this outlay will be recovered in short order through improvements in accuracy, savings in time and greater operating efficiency. Another benefit of bar coding is the ability to capture data that could not (or would not) previously collected. Information requested by users such as shipping manifest data, manufacturers part Nos., Dealers Article Nos. etc.; are easier to obtain with bar coding.

There are many others applications for bar coding, such as the following examples: 1. Asset inventory control. Numerous fixed assets can be barcoded and tracked so that costs can be properly allocated. In such cases, bar codes are placed on all items and linked to a bar code in the specific work area. 2. Payment processing. Printing a bar code on an invoice allows accounting personnel to bring up the data and complete the remittance processing of payments to supplier. All invoices received can be barcoded during invoice matching. 3. Warranty and service tracking. As units / equipments are received, the bar code affixed on them is scanned, bringing up the history for that unit. As the unit is repaired, scanning the parts required for repair will aid in failure analysis and spare parts planning. 4. Value-added services . Having bar code printing / scanning capability allows other companies to put their barcode labels on materials shipped, and it reduces our time and efforts for processing.

Steps to take to implement a Bar Code System

The popular English saying a battle well begun is half-won aptly emphasizes the management of inputs in the warehouses. As with any system implementation, advance planning is critical. The more time spent planning the implementation, the less time needed to make changes later. 1. Establish a team. As with any major system implementation, it is important that a team be formed and assigned the task. The team should be made up of representatives from each department working with the bar code system. It is the responsibility of all team members to bring critical issues to the table. Depending upon organizational and technical requirements the team can be divided into two groups. a) Core group: Representative from various departments who are directly affected by the system developments. This group will monitor the activities and provide guidelines to field and vendors regarding implementations. b) Field Group: Representative from various sections and sub-groups where developments are going to be significant. They are the influential people who are going to set the business process. 2. Determine what you want the system to do. You must decide the type of data that the system will capture and where it will be sent. Companies handle and process much data, not all of which is suitable for bar coding. Decide what you need to capture at the outset.

3. Review your present procedures for capturing data and develop a flow chart. Look at the present material and information flow and determine the key inputs and outputs of each process. During this step, you are analyzing the processes and developing ideas for improvement. Identify the most time-consuming processes, those with the highest number of mistakes, those that require the most manual effort and those that have traditionally been bottlenecks (areas where things just seem to grind to a halt). Also, look for redundancy. Considering that two of the benefits of bar coding are improved accuracy and reduced processing time, these represent ideal bar coding applications. 4. Determine how you would like the procedures to operate, and develop a flow chart for those procedures. The flow chart will be a best case scenario that will result from elimination of the problems found in the previous step. 5. Determine specifically what the bar code system will do and where it will interface with the existing computer system. A listing of bar code functions should be developed here. For example, the system may need to forward inventory transaction data to an existing inventory management program. 6. Develop a request for quotation (RFQ) using the required bar code functions identified. The RFQ should summarize the requirements of the system with sufficient detail to allow vendors to submit proposals. 7. Select a vendor. Be sure the supplier will not only be able to sell you the system, but also assist you with any problems that arise during implementation. Visiting present users of the bar code system is a good way to learn about the vendors product and support capabilities. 8. Begin the process of bar code labeling. This can actually be done before the system is brought online. Communicate with all your vendors, and request they begin to provide products with bar codes, so that once the system is up, all products are ready to be scanned. 9. Run a pilot of the bar code system. Run the system in plant for at least one week to uncover any overlooked problems. If possible, run some transactions before going live. 10. Train all employees who will be using the system. Begin with an overview and follow with hands-on training. 11. Go live and start to use the system. Expect problems to surface, but keep the implementation team intact to address them.