Mass and automated updating of kanban cards with RFID Technology

The project for AGCO Gold Harvesting

An RFID technology system is an excellent ally for automating the massive update of kanban cards’ status.
This is demonstrated by the system created for the Gold Harvesting production site in Breganze (Vicenza, Italy) of AGCO Spa.
In this page we will share the details of this interesting project that has allowed the company to obtain greater precision and more efficient material flow management, benefiting both operators and the company.

Overview of AGCO Spa

AGCO Corporation is a multinational company, global leader in designing, manufacturing, and distributing sustainable agricultural solutions.

Since 2011, when it acquired the Gold Harvesting production site in Breganze (Vicenza, Italy), the company has invested heavily in the facility, turning it into a strategic hub for producing harvesters destined for the markets of Europe, Africa, and the Middle East.

The AGCO Gold Harvesting plant has been producing harvesters for over 60 years and manufacturing agricultural machines and equipment since 1973. Today, it is one of the most modern and efficient plants for harvesting machinery in Europe.

The company’s focus on efficiency and innovation has once again been confirmed by the recent installation of RFID portals to automate the mass status updates of kanban cards.

The AGCO Gold Harvesting system for material replenishment using electronic kanban and 4.0 technologies

AGCO Gold Harvesting manages material replenishment at the production line using an electronic kanban system, i.e. enhanced by the e-kanban software KanbanBOX. Through a type of kanban called “move kanban,” KanbanBOX allows the company to optimally manage and organize the transportation and replenishment of materials needed at the production line workstations, avoiding unnecessary stockpiles or shortages.

Additionally, this system is integrated with some of the most advanced 4.0 warehouse technologies available today. Specifically, to manage small-sized, mostly metallic materials, the AGCO Gold Harvesting plant uses:

  • An automated vertical warehouse for storing and automatically retrieving materials.
  • Logistic trains (also called tugger trains, tow trains, or load trains) for transporting materials from the warehouse to the production line.
  • An advanced RFID system to automatically track material movements and perform mass status changes for all transported kanban cards without any intervention by operators.

The RFID system represents a recent integration implemented by AGCO in collaboration with KanbanBOX consultants.

What is an RFID system applied to electronic kanban?

An RFID system (“Radio Frequency Identification”) is an automatic identification system that uses radio waves to track the movements of associated devices. Specifically, in an electronic kanban system, the implemented RFID technologies include:

  • RFID tags applied to the kanban containers of materials. Equipped with microchips, they are used to identify and store the data of the associated kanban cards. Each RFID tag is linked to a single container with its kanban card.
  • RFID Readers (or Controllers), specialized readers for identifying and monitoring RFID tags as they are moved, transmitting the related information in real-time to the KanbanBOX electronic kanban software.
  • RFID Antennas, which generate the magnetic field that activates the microchips and initiates radio communication between RFID tags and Readers.
  • A carefully designed architecture of Readers and Antennas creates RFID Portals, checkpoints where the movement of RFID tags is recorded.

Thanks to the integration with KanbanBOX, when kanban containers (equipped with RFID tags) pass through one of the RFID portals, the system registers their movement and automatically updates the status of their kanban cards on a mass scale.

The implemented RFID portals

Two RFID portals have been implemented at the AGCO Gold Harvesting plant.

  • Portal number 1 – To indicate the availability of materials delivered to the production lines

The first RFID portal is located in the corridor where the logistic trains transporting materials from the warehouse to the production lines transit. Since the containers passing through the portal are equipped with RFID tags, the system registers their movement and changes the status of their kanban cards to “Available.” The status update occurs on a mass scale without requiring any human intervention.

 

  • Portal number 2 – To signal the need to replenish consumed materials

The second RFID portal is placed at the entrance of a designated area for storing consumed containers. Empty containers are transported from the production lines to this area by a dedicated logistic train. When the train with the empty containers passes through the portal, the system detects the RFID tags and changes the status of the associated kanban cards from “Available” to “Released.” In KanbanBOX’s technical language, “Released” means that the contents have been consumed and need to be replenished from the warehouse. This mass status update of the kanban cards initiates the replenishment process for the corresponding materials.

 

These are the first RFID portals implemented for AGCO, but the system is already expanding with new portals with similar uses.

Advantages of implementing the RFID system

Automating the mass status update of kanban cards allows line operators to focus exclusively on their specific tasks. Previously, the status updates of kanban cards were performed manually by line operators, who used barcode scanners or handheld devices to scan the kanban cards on material containers.

Scanning was required:

  • Upon the arrival of materials at the production line, to declare “available” the kanban cards (and their materials)
  • Once a container has been emptied, to signal that the material had been consumed and needed to be replenished from the warehouse.

Thus, automating the mass status update of the kanban cards is not only an effective solution to prevent missed or partial scans, which could cause stockouts and delays in material deliveries. It’s also an excellent example of how integrating KanbanBOX with advanced warehouse technologies like RFID systems can ensure greater precision and more efficient material flow management, benefiting both operators and the company.

Discover the RFID integration

Would you like an RFID integration to automate the mass status update of kanban cards? Contact us!