This research uses VSM to analyze the factors leading to insufficient
supply chain operations and applies both lean production
and RFID technology to improve supply chain efficiency and effectiveness.
The preliminary results in a case study (with 1 CDC, 10
LDC, and more than 400 repair shops) demonstrate that the total
operation time, from current stage to future stage with integration
of lean and RFID, can be saved by 81% (with 82% saving in waiting
and transportation time and 63% saving in value-added time). The
saving can be further enhanced to 89% (with 89% saving in waiting
and transportation time and 70% saving in value-added time) with
the adoption of cross-docking. Furthermore, each warehouse can
reduce at least one operator while maintaining current service
capacity and level in both CDC and LDC. ROI analysis with a value
of 2.6 justifies the effectiveness of lean production and RFID application.
The result of this study is a good reference for further
improvements in supply chain and logistics system through the
use of better management philosophy and modern technology.
This study can be extended in several directions. With the spirit
of lean production, the warehouses should conduct continuous
improvement to further increase operational efficiency. It is of
interest to apply RFID to transportation system to increase the
traceability of deliveries. Moreover, it is important to further improve
the reading rate of UHF RFID readers by adjusting the location
and position of tags and the distance between tags and
readers, as current 99.5% is still with space of improvement.