MASTER'S THESIS

Realization of Industry 4.0 through RFID

An Implementation in Internal Logistics at Bosch Rexroth Mellansel

Ronny Higberg
Goran Larsson
2016

Master of Science in Engineering Technology

Industrial Design Engineering

Luleå University of Technology

Department of Business Administration, Technology and Social Sciences
Realization of Industry 4.0 through RFID
An Implementation in Internal Logistics at Bosch Rexroth Mellansel

Ronny Higberg
Goran Larsson

2016

Examiner: Jan Johansson

Supervisor: Anna Öhrwall Rönnbäck

Master of Science in Industrial Design Engineering

Department of Business Administration, Technology and Social Sciences
Luleå University of Technology
Master of Science Thesis
Realization of Industry 4.0 through RFID
An Implementation in Internal Logistics at Bosch Rexroth Mellansel
Master of Science Thesis in Industrial Design Engineering- Production design and development

© Ronny Higberg & Goran Larsson

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Luleå, 2016
Acknowledgement
Although only our names appear on the cover on this thesis, a great many people have contributed to its
production. As a sign of acknowledgement, we would like to extend our gratitude to these individuals
that have helped create this thesis.
We would like to thank John Reimers at the Bosch Center of competence, for his guidance and feedback
through technical issues and hardware discussion. He has helped us a great deal in providing support
related to the implementation and has provided us with relevant contacts, and Bosch standards that
otherwise may have gone over our heads.
We are also very grateful to all the personnel at the shop floor who have contributed a great deal to our
understanding of the investigated processes. Their insightful comments and constructive criticism
throughout our research have helped us discover the details and focus our ideas. The interviews,
observations, workshops and discussions we have had with all these individuals have not only provided
us with important information but also great insights on how complex a production environment truly
is.
We would like to acknowledge the assembly group manager Carolina Sondell, who has provided us with
supervision on who to talk with and has set us up with the correct individuals whenever we have needed
it.
We would like to acknowledge Dr. Juergen Lieser for his role as our supervisor for the second part of
our thesis. He has shown his resourcefulness and efficiency at getting things done whenever we have
needed help.
We would also like to acknowledge Anders Palm for his trust in us and for providing us with a great
deal of autonomy to explore on our own during our stay in Mellansel.
We would lastly like to express gratitude to our fellow students and teachers at the Industrial Design
Engineering Programme. They have been a great part of our development for the last 5 years and have
shown us the importance of combining creativity with knowledge.

Luleå 28th of May, 2016

Ronny Higberg and Goran Larsson
Abstract
With increasing global competition between industries comes a growth in the demand for increased
productivity, output and service quality from transnational companies. This creates a need for
organizations that are versatile and have the correct tools for developing more efficient processes,
reducing costs and increasing productivity within the manufacturing industry. This new phase in the age
of manufacturing industries is on its way to meet this changing environment and it is commonly referred
to as Industry 4.0, the next big industrial revolution. This revolution refers to the introduction of Internet
in industries, leading to the establishment of smart factories. In the smart factory, functions such as
logistics, manufacturing and product development are integrated in Cyber-physical systems.
One way to gain the upper hand among the global competition is to gain control over the internal logistics
chain. Technologies like Radio Frequency Identification (RFID) can be used to create smart factories
where a product sends information on its whereabouts in real-time. This thesis studies how RFID as a
means to achieve Industry 4.0 can be reached with an implementation in internal logistics at Bosch
Rexroth in Mellansel. This thesis aims to contribute with a deeper understanding of how a RFID
implementation process is designed and what benefits it can provide a manufacturing organization. This
study also investigates how a smarter industry in terms of Internet of Things and Industry 4.0 can be
achieved by implementing RFID in internal logistics.
The master thesis is founded on a literature review and empirical results achieved through a case study.
The case study consists of a current state investigation, situation analysis, system design and
implementation, and ends with an evaluation. The thesis ends with several conclusions gained from the
insights of the empirical and theoretical studies.
This thesis presents a framework that outlines important steps to be performed in the implementation of
RFID. Key factors to achieve a successful implementation are also elaborated on. Moreover, a
compilation of the benefits that can be achieved by using RFID in internal logistics are presented. As a
final conclusion, a presentation is made of the benefits of Industry 4.0 that Bosch Rexroth in Mellansel
can achieve through an implementation of RFID.

KEYWORDS: Bosch Rexroth, Cyber-Physical system, CPS, i4.0, Implementation, Industry 4.0,
Internet of Things, IoT, Lead time, Logistics, Manufacturing, Production, Radio Frequency
Identification, RFID, Smart factory.
Sammanfattning
I en alltmer hårdnande global konkurrens mellan industrier tilltar kravet på ökad produktivitet,
avkastning och kvalitet från internationella företag. Detta skapar ett behov av flexibla organisationer
som har rätt verktyg för att utveckla mer effektiva processer, minska kostnader och öka produktiviteten
inom tillverkande industrier. En ny våg inom industrin, omnämnd som nästa stora industriella revolution,
Industry 4.0, är på väg för att möta dessa nya utmaningar. Denna revolution syftar på sammankopplingen
av Internet med industrimiljöer, vilket leder till skapandet av smarta fabriker. I den smarta fabriken
sammankopplas funktioner inom logistik, tillverkning och produktutveckling i Cyber-fysiska system.
Ett sätt att skaffa sig ett övertag i en hårdnande internationell konkurrens är att få kontroll över det interna
värdeflödet. Tekniker som Radiofrekvensidentifikation (RFID) kan användas för att skapa smarta
fabriker där en produkt kan sända information om sin position i realtid. Detta examensarbete studerar
hur RFID kan användas för att uppnå Industry 4.0 genom en implementering i intern logistik på Bosch
Rexroth i Mellansel. Detta examensarbete syftar till att bidra med en djupare förståelse för hur en
implementering av RFID bör utformas och vad det kan bidra med i en tillverkande industri. Detta
examensarbete undersöker också hur en smartare industri kan uppnås med avseende på Internet of
Things och Industry 4.0 genom en fallstudie på en implementering av RFID i intern logistik.
Detta examensarbete är baserat på en litteraturstudie och empiriska resultat från fallstudien. Insikterna
från denna forskningsansats har använts för att svara på forskningsfrågorna i avhandlingen. Fallstudien
består av en kartläggning av nuläget, analys, systemdesign och implementering, och slutar med en
utvärdering av resultatet. Denna avhandling presenterar ett ramverk som beskriver stegen en
implementering av RFID bör genomgå. Faktorer för att uppnå en lyckad implementering diskuteras
också vidare. En sammanställning presenteras sedan över de fördelar en organisation kan uppnå genom
en implementering av RFID i intern logistik. Slutligen presenteras de fördelar Bosch Rexroth i Mellansel
kan uppnå inom Industry 4.0 genom en implementering av RFID.

NYCKELORD: Bosch Rexroth, Cyber-fysiska system, CPS, i4.0, Implementering, Industri 4.0, Internet
of Things, IoT, Ledtid, Logistik, Produktion, RFID, Smart fabrik, Tillverkning.
Abbreviations and Explanations
Abbreviation Explanation Expression Explanation

AGV Automated Guided Vehicle Middleware between hardware and

software for the RFID system. Converts
Crosstalk
the RFID signal to a format suitable for
AX Microsoft Dynamics AX other systems.

BPS Bosch Production System Supplier of RFID equipment and

nofilis
software.
Robert Bosch’s
CoC
Center of Competence

CPS Cyber Physical System

FIFO First In First Out

Hägglunds Production System

HPS
(software)

i4.0 Industry 4.0

id Identification

IoT Internet of Things

JIT Just-in-time

Logistics department at Bosch Rexroth

LOG
Mellansel

MllP Bosch Rexroth Mellansel plant

Manufacturing Operations and
MOE Engineering department at Bosch
Rexroth Mellansel
RFID Radio Frequency Identification

VSD Value Stream Design

Content
1 INTRODUCTION 1 4.7.1 Installation 26
1.1 BACKGROUND 2 4.7.2 Testing 26
1.2 OBJECTIVES AND AIMS 2 4.8 RELIABILITY AND VALIDITY 26
1.3 THESIS SCOPE 2
5 CASE STUDY MIIP:
1.4 THESIS OUTLINE 2
CURRENT STATE 27
1.5 THE AUTHORS 3 5.1 OVERALL PLANT LAYOUT 28
1.5.1 Division of Work 3 5.2 VALUE STREAM MAPPING 28
2 CONTEXT 5 5.3 TRANSPONDER ATTACHMENT 29
2.1 INDUSTRY 4.0 6 5.4 PRODUCTION MANAGEMENT 30
2.2 THE COMPANY 6 5.5 SOFTWARE AT MLLP 30
2.2.1 Bosch Rexroth Mellansel 6 5.5.1 SAP 31
2.2.2 Strategy for i4.0 7 5.6 BOSCH GROUP GUIDELINES 31
2.3 HÄGGLUNDS DRIVE SYSTEMS 7 5.6.1 RFID Equipment 31
2.3.1 Functional Description 7 5.6.2 GS1 31
3 THEORETICAL FRAMEWORK 9 6 CASE STUDY MIIP:
3.1 USER INVOLVEMENT 10 SITUATIONAL ANALYSIS 33
3.1.1 Human-machine Interaction 10 6.1 PRODUCTION ENVIRONMENT 34
3.2 PERFORMANCE METRICS 10 6.1.1 Kitting Area 34
3.3 LEAN PRODUCTION 11 6.1.2 Kitting Operations 34
6.1.3 Washing Area 34
3.3.1 Kanban 11
6.1.4 Washing Operations 35
3.4 INDUSTRY 4.0 12 6.1.5 Assembly Area 35
3.5 RADIO FREQUENCY IDENTIFICATION 13 6.1.6 Assembly Operations 35
3.5.1 RFID Implementation 14 6.1.7 Motor Testing Area 36
3.5.2 Real-time Monitoring 15 6.1.8 Motor Testing Operations 36
6.1.9 Painting Area 37
4 METHOD 17 6.1.10 Painting Operations 37
4.1 SCOPE OF WORK 18 6.1.11 Packing Area 37
4.2 PROCESS OF WORK 18 6.1.12 Packing Operations 37
4.2.1 Project Planning 19 6.2 MOTOR ACCESSORIES 38
4.2.2 Project Organization 20 6.2.1 Motor Relabeling 38
4.2.3 Brainstorming 20 6.2.2 Accessories in AX 38
4.2.4 Risk Assessment 21
4.3 LITERATURE REVIEW 22
7 CASE STUDY MIIP:
4.4 DATA COLLECTION 22
RFID SYSTEM DESIGN 39
7.1 RFID SYSTEM DESIGN 40
4.4.1 Observations 22
7.1.1 Design Options and Constraints 40
4.4.2 Participatory Observations 23
7.1.2 Design Delimitations 40
4.4.3 Interviews 23
7.1.3 Hardware Selection 40
4.4.4 Workshops 24
7.2 HARDWARE TESTING 41
4.5 DATA ANALYSIS 24
7.3 SPECIFICATION OF REQUIREMENTS 42
4.5.1 Value Stream Mapping 24
4.5.2 Specification of Requirements 25 7.4 VALUE STREAM DESIGN 43
7.5 DESIGN AT LOCATIONS 43
4.6 CONCEPT DEVELOPMENT 25
7.5.1 Workshop Results 46
4.6.1 Conceptual Design 25
7.5.2 Suggested Design Improvements 46
4.7 IMPLEMENTATION 25
7.6 DASHBOARD DESIGN 48
7.7 RISK ASSESSMENT 49
8 CASE STUDY MIIP:
IMPLEMENTATION 51
10 CONCLUSIONS 65
8.1 PROJECT SCOPING 52
10.1 RESEARCH QUESTION 1 66
8.2 ANALYSIS OF THE EXISTING SYSTEM 52
10.2 RESEARCH QUESTION 2 67
8.3 SYSTEM DESIGN 52
10.3 RESEARCH QUESTION 3 68
8.4 INSTALLATION 52
10.4 PROJECT OBJECTIVES AND AIMS 69
8.5 SOFTWARE DESIGN 53
8.6 TESTING AND TUNING 54 11 DISCUSSION 71
8.7 INTRODUCTION AND TRAINING 54 11.1 RELIABILITY AND VALIDITY 72
8.8 CONTINUOUS WORK 55 11.2 THE IMPLEMENTATION RESULTS 72
8.9 EVALUATION 56 11.3 POSITIONING THE RESULT 73
11.4 REFLECTIONS 73
9 FINDINGS AND INSIGHTS 59 11.5 RECOMMENDATIONS 74
9.1 THEORETICAL INSIGHTS 60
9.1.1 User Involvement 60 REFERENCES 76
9.1.2 Benefits of i4.0 through RFID 60
9.1.3 Implementation 61 APPENDIX 1: GANTT DIAGRAM
9.2 EMPIRICAL INSIGHTS 61 APPENDIX 2: INTERVIEWS AND MEETINGS
9.2.1 Risk assessment and Outcome 63 APPENDIX 3: WORKSHOP SETUP
9.2.2 Real-time Monitoring 63 APPENDIX 4: LIST OF RFID EQUIPMENT
9.3 GENERAL INSIGHTS 64 APPENDIX 5: GS1 STANDARD
9.3.1 Lean and RFID 64 APPENDIX 6: WORK INSTRUCTIONS
9.3.2 RFID as the Chosen Technology 64 APPENDIX 7: CROSSTALK LOGIC
APPENDIX 8: WORKSHOP RESULTS
APPENDIX 9: OPEN POINTS
LIST OF FIGURES
Figure 1: Visualization of the industrial revolutions. Based on material from Kagerman et al. (2013).
Figure 2: Product family of Hägglunds drive systems (Source: Bosch intranet).
Figure 3: Part composition of CA engine (Source: Bosch Rexroth AG, 2011).
Figure 4: A hydraulic drive unit and motor (Source: Bosch Rexroth AG, 2011)
Figure 5: Ting et al., (2013), suggested steps for implementation of RFID (Picture compiled by the
authors of this thesis).
Figure 6: Principal description of RFID and monitor (Based on Abdullah, Ismail & Halim, 2015).
Figure 7: The work process used in each phase of the thesis (Source: Compiled by authors).
Figure 8: Excerpt from action log showing week, task, owner, assigned and due dates, and status
(Source: Compiled by authors).
Figure 9: Plant layout with offices removed (Source: Compiled by authors from existing plant layout).
Figure 10: VSM of thesis related process (Source: Compiled by authors from Bosch Rexroth
Mellansel internal VSM).
Figure 11: RFID transponder used at Bosch Rexroth in Mellansel (Source: authors’ picture).
Figure 12: Placement of RFID transponder on motor in yellow circle (Source: authors’ picture).
Figure 13: Kitting area with empty fixtures (Source: authors’ picture).
Figure 14: Pre-washing queue with automated rollers (Source: authors’ picture).
Figure 15: Assembly area (Source: authors’ picture).
Figure 16: Queue for assembled motors. Yellow rollers are on rail (Source: authors’ picture).
Figure 17: Area outside of testing chambers (Source: authors’ picture).
Figure 18: Pick up station for AGV (Source: authors’ picture).
Figure 19: Exit gate from painting area (Source: authors’ picture).
Figure 20: VSM for accessories (Source: Compiled by authors with input from the assembly group
manager at MllP).
Figure 21: Gate to accessory assembly. (Source: author’s picture).
Figure 22: VSD for the implementation of RFID. Red boxes symbolize RFID (Source: compiled by
authors).
Figure 23: VSM of the accessory flow (Source: Compiled by the authors).
Figure 24: RFID reader installed at the kitting location (Source: authors’ picture).
Figure 25: RFID reader installed in the pre-assembly station (Source: authors’ picture).
Figure 26: RFID reader installed on a fixture above an automatic transportation belt out from CA
motors assembly (Source: authors’ picture).
Figure 27: RFID antennas installed inside testing chamber 1 (Source: authors’ picture).
Figure 28: Installation of RFID readers in AGV pick-up station (Source: authors’ picture).
Figure 29: RFID antenna with built-in reader installed above the gate to accessories assembly (Source:
authors’ picture).
Figure 30: RFID antenna with built-in reader installed above gate between painting and packing area
(Source: authors’ picture).
Figure 31: Concept for real-time monitor design (Source: Compiled by authors).
Figure 32: Ishikawa diagram of assessed risks associated with implementation at MllP (Source:
Compiled by authors).
Figure 33: Necessary steps for an implementation of RFID according to the authors of this thesis
(Source: compiled by authors.)
LIST OF TABLES
Table 1: Division of work, according to report content.
Table 2: Initial risk assessment for master thesis with suggested actions to reduce risk.
Table 3: Results from the experiment.
1 INTRODUCTION

With increasing global competition between industries comes a growth in the

demand for increased productivity, output and service quality from
transnational companies. This creates a need for organizations that are
versatile and have the correct tools for developing more efficient processes,
reducing costs and increasing productivity within the manufacturing industry.
To get this edge against the competition, organizations need to think beyond
the scope of how manufacturing is perceived. A new phase in the age of
manufacturing industries is on its way to meet this changing environment and it
is commonly referred to as Industry 4.0.

1
INTRODUCTION
1.1 Background
Modern manufacturing industries need to utilize
the possibilities of Internet to create smarter
manufacturing plants. One way to gain the upper
hand among the global competition is to gain
control over the internal logistics chain.
Technologies like Radio Frequency
Identification, (RFID) can be used to create
smart factories where a product sends
information on its whereabouts in real-time. This
opportunity has been identified by Bosch
Rexroth in Mellansel (hereafter abbreviated as
MllP).
The challenge lies in understanding how to
implement RFID and what benefits a
manufacturing organization can gain from an
implementation. In a broader spectrum, this
relates to the role of this implementation in
relation to the next phase of manufacturing
industries, Industry 4.0 (hereafter abbreviated
i4.0). By consciously working towards the
evolution of industry this may be seen as a first
step towards creating the manufacturing
industries of tomorrow.
1.2 Objectives and Aims
The thesis aims to investigate how a smarter
industry in terms of IoT and i4.0 can be achieved
by implementing RFID in internal logistics. This
investigation aims to contribute with a deeper
understanding of how an RFID implementation
process is designed and how it can be seen as a
step to realize i4.0. As a result, the objective of
this master thesis is to investigate the following
research questions:
 What factors should a framework for the
implementation of RFID systems
include?
 What benefits can be achieved by using
RFID in internal logistics?
 How can Bosch Rexroth achieve
benefits of Industry 4.0 through RFID?
The investigation of these research questions is
done through a case study at MllP. To achieve a
critical viewpoint necessary for a valid
contribution to the research field, a literature
review is also carried out.
The aim at MllP is to further implement RFID in
the plant. The objective from the standpoint of
the company is to be able to follow an order
2
through the internal value chain and in a more
far-sighted approach, to ensure shorter lead times
by increasing transparency and traceability.
From a broader perspective, the Bosch Group
aims to become the lead provider and user of i4.0
related technology (Robert Bosch GmbH, 2015a).
The resulting project of this case study is one of
several other i4.0 related projects at the
Mellansel plant.
The case study investigates the manufactured
motor model CA of the Hägglunds Drive
Systems. The studied parts of the manufacturing
of this motor is from the kitting area to the
packaging area.
1.3 Thesis Scope
This thesis has been undertaken to generate a
better understanding of how an implementation
of an RFID solution should be designed. The
thesis will also clarify why an implementation of
RFID is considered an i4.0 achievement. By
comparing established methods from relevant
theories with a case study of a full
implementation at MllP, this work could also
contribute to future research with a wide set of
knowledge of an RFID implementation. The end
result is a set of conclusions that can also provide
guidance in other similar implementations both
in planning and execution.
1.4 Thesis Outline
The first chapter explains the background and the
objectives of the thesis. The scope of this thesis
is also presented briefly with a short introduction
of the authors. The second chapter describes the
background of the company that constitutes the
context of the thesis essentially in the case study.
Chapter three is a compilation of relevant
theories and analytical models related to the
thesis objectives and research questions. The
thesis continues in the fourth chapter with a
description of the chosen work methods used
throughout the process of work. Chapter five is a
mapping of the current state at the organization
where the case study was executed. This chapter
stands as the basis on which the analysis and
design is built upon. The sixth chapter is an
analysis of the situation at MllP. Chapter seven
presents the design work. It describes the
framework for the design and includes sections
on hardware testing and risk assessment. In
chapter eight, the implementation process is
described. This is the chapter that the empirical
 INTRODUCTION

insights are based on. The ninth chapter presents The division of work on the thesis report is
the final results of the thesis. It consists of both presented in Table 1. It does not specify which
theoretical, empirical and general insights gained section of this report that has been written by
during the thesis. Chapter ten presents the which person, instead it shows the division of
conclusions of the thesis. The conclusions are work in terms of responsibility of section. This
presented to answer the research questions means that the distributed person for each section
presented in the thesis objectives. The final of the report is responsible for the content of each
chapter presents a discussions on the results of section. The content is nevertheless written by
this thesis. Here the relevance, and the reliability both authors.
and validity of the results are discussed. The
Table 1: Division of work, according to report
chapter ends with suggestions on further research.
content.
1.5 The Authors Content Responsible
This thesis is written by two students, Ronny Introduction Larsson
Higberg and Goran Larsson, studying towards a
Master of Science degree in Industrial design Context Larsson
engineering. The Master Programme is a Theoretical framework Both authors
testament of an engineer that understands the
requirements of a product and how these affect Method Larsson
the demand on the manufacturing industry. An Current state Larsson
industrial design engineer also uses their
knowledge in production planning, work place Situational analysis Larsson
analysis and management to improve and RFID Design Higberg
optimize organizations. The workplace is seen as
a whole system containing many parts needing a Implementation Higberg
holistic approach for improving and maintaining Results Higberg
the edge in successful businesses. This holistic
way of approaching problems is the backbone of Conclusions Higberg
the Industrial Design Engineer Programme. Discussion Higberg

1.5.1 Division of Work

As the thesis work is done by two students a
division of work based on the skillset and
strengths of each author set the outline for the
division of work. Larsson has previous
experience of writing scientific papers and thus
fortified a scientific perspective to the thesis.
Higberg has experience of various project
management undertakings which consolidated a
successful implementation. However both
authors have challenged themselves in all diverse
fields and collaborated in all work to ensure an
excellent outcome of both the thesis and the
implementation at MllP.

3
INTRODUCTION

4
 Context

2 CONTEXT

To make sense of the case study one must also understand the context in
which the problem is formulated. The context to this thesis describes the
company Bosch Group, the Bosch Rexroth plant in Mellansel and the
manufactured product. The section is mostly derived from information obtained
via Bosch intranet such as product manuals, information wikis and other
related documents but also through interviews with the personnel working at
the plant.

5
CONTEXT
2.1 Industry 4.0
I4.0 can be described as the next big industrial
revolution. Lasi, Fettke, Kemper, Feld &
Hoffmann (2014) recount the other three
industrial revolutions as being; (1) the
mechanization of industry in the 18th century;
(2) introduction of electrically driven industries
and mass production; (3) digitalization of
industries. The fourth revolution refers to the
introduction of Internet in industries. This leads
to the introduction of the concept of Cyber
Physical Systems (CPS). This refers to the
connection of physical operations with
computing and communication infrastructures
(Volkan, Steffen, Givargis & Vahid, 2014). The
industrial revolutions are visualized in Figure 1.
Kagerman, Wahlster and Helbig (2013)
describe i4.0 as a realization of the concept
labeled Internet of Things and Services (IoT).
The vision for IoT is that all objects and services
used by humans will be connected to the
Internet. These entities will thus be able to
autonomously communicate and exchange
information with each other through technical
solutions like for example automatic
identification, as in barcodes and RFID
transponders. Internet-based services and
products are described as being a major driving
force in economic and social development
(Germany Trade and Invest GmbH, 2015; Heng,
2014; Johansson & Larsson, 2015).
2.2 The Company
Bosch Group is a leading global supplier of
various technological and service-based
solutions. The group encompasses around 340
subsidiaries and regional companies in about 60
Figure 1: Visualization of the industrial revolutions. Based on material from Kagerman et al.
(2013).
6
countries worldwide. The Bosch Group is
divided into four business sectors: mobility
solutions, industrial technology, consumer
goods and energy, and building technology
(Robert Bosch GmbH, n.d.a). Robert Bosch
GmbH, headquartered in Stuttgart, is the parent
company to the Bosch Group. The group has its
roots in the founding of Workshop for Precision
Mechanics and Electrical Engineering in
Stuttgart in 1886 by Robert Bosch. In 2014 the
Bosch Group had a collective EBIT (Earnings
before interest and taxation) of 3.03 billion Euro
and preliminary figures show an increase of that
number to 5 billion Euro for 2015. The strategic
objective of the Bosch Group is to deliver
innovations for a connected life (Bosch group
AB, 2016; Robert Bosch GmbH, n. d.b).
The business sector industrial technology is
divided into the two divisions “drive and control
technology” and “packaging technology”. The
Bosch Rexroth AG subsidiary specializes in the
drive and control technology sector and is one
of the world’s leading suppliers in this sector.
The division focuses on electrical, hydraulic and
mechatronic components and systems.
2.2.1 Bosch Rexroth Mellansel
MllP is a leading supplier of hydraulic drive
systems through the product line Hägglunds
drive systems. The products are used globally in
industry sectors such as mining, recycling,
marine and offshore operations and pulp and
paper processing. The plant has around 480
employees and a turnover of approximately 120
million Euro (Robert Bosch AG, 2015b).
Prior to the acquisition into the Bosch group, the
company name was Hägglunds drives. The
 CONTEXT

company was acquired by Bosch Rexroth in

2008 but became fully integrated into Bosch
Rexroth in 2011. The plant was originally
founded in 1966 as part of the Hägglunds group.
The first standalone hydraulic motor (Viking)
was introduced to the market in 1960 and the
first hydraulic drive system was introduced to
the product line in between 1983-1985 (Bosch
Rexroth Mellansel AB, 2015a).

2.2.2 Strategy for i4.0

The Bosch Group strives to gain a position as a
leading user and provider of i4.0 based
technology (Bosch Group AB, 2016a). To meet
this end the company has experience from over
100 pilot projects all over the world. The
company has identified seven features of i4.0
that are being focused on; Fast integration and
flexible configuration, open standards, virtual
real-time representation, digital life-cycle
management, secure value-creation network,
distributed intelligence and people as key
players. To meet this strategy, MllP has been
chosen as an i4.0 pilot plant within the Bosch
Group.
The case study is a continuation of a previous
pilot project on internal logistics and has the
goal of further implementing RFID in the
Mellansel plant (RFID project manager,
personal communication 2016-02-02). In this
project, an RDIF transponder was chosen to the
motor for use in an automated painting process.
2.3 Hägglunds Drive Systems
The product, Hägglunds drive systems, are built
as modularized solutions, meaning that a range
of combinations can be made of the units
available. The system consists of a hydraulic
motor, a power unit and a control and
monitoring system. The driving motor in the
system is a radial piston motor. The product
family can be seen in Figure 2. (Bosch Rexroth
AG, 2014b)
Figure 2: Product family of Hägglunds drive
systems (Source: Bosch intranet).
The motor is produced in different variants in
six series that are applicable for various
industrial solutions. The motor series consists of
CA, CB, CBM, CBP, MB and VI motors (Bosch
Rexroth AG, 2014b).
2.3.1 Functional Description
The hydraulic motors in the Hägglunds product
family are built on a hydraulic radial piston cam
curve design, which can be seen in Figure 3 with
the CA engine as reference.
The motor consists of an outer cam ring with an
undulated inner cam surface and a cylinder
block rotatable in relation to the cam ring. When
hydraulic pressure is acting on the pistons, the
cam rollers are pushed against the slope on the
cam ring. This creates a torque proportional to
the pressure in the system. The hydraulic force
is then converted to mechanical force through
the rotation that occurs. (Bosch Rexroth AG,
2011).

Figure 3: Part composition of CA engine (Source:

Bosch Rexroth AG, 2011).

7
CONTEXT

The motor can be connected to a driven shaft, to

a wheel, or to a cable drum for a winch to name
a few examples. In the Hägglunds drive system
the power is supplied to the hydraulic motor by
a separate drive unit. This unit can be positioned
freely in relation to the installation of the motor.
(Bosch Rexroth AG, 2011; Bosch Rexroth AG,
2014a)
The hydraulic drive unit, seen in Figure 4
consists of a hydraulic pump that is driven by an
electric motor running at a fixed speed. The
variable flow of oil from the pump determines
the speed and direction of the drive. The oil flow
can be controlled and reversed, which in turn
affects the direction of the drive. The drive unit
can operate continuously throughout its power
range up to its rated torque, from zero to full
speed. The drive can operate in all modes,
meaning driving and braking, and forward and Figure 4: A hydraulic drive unit and motor (Source:
Bosch Rexroth AG, 2011)
reverse. (Bosch Rexroth AG, 2014a)

8
 Theoretical framework

3 THEORETICAL
FRAMEWORK
The theoretical framework describes relevant theories and analytical models
related to the research questions stated. This chapter aims to link the thesis to
existing knowledge, but also sets the foundation for challenging and extending
this knowledge.

9
THEORETICAL FRAMEWORK
3.1 User Involvement
When changing a work place or an organization
it is hard not to affect the workers within it. Airo,
Rasila & Nenonen (2012) mean that change
processes increase defensive behavior, which is
reflected in the way the employees speak about
the workplace and the coming changes. The
authors further state that this fact makes it
important to understand the discussions that are
going on during a change process. Glover, Farris
& Van Aken (2014) mean that to build up and
maintain good performance, loyalty and
commitment in an organization,
demonstration and recognition of organizational
values and culture is necessary from the
leadership. By investing in learning and
development, a learning-focused workforce can
be attained. This will make employees more
open-minded to changes and generate a feeling
of ownership to changes made in their work
environment or routines (Glover et al., 2014).
Kimber, Barwick & Fearing (2012) state that if
workers do not understand the purpose of a
change it will be difficult to rely on these
individuals to participate in the change process
in a meaningful way.
Based on the Lean philosophy, described in
section 3.3, Jaca, Santos, Errasti, & Viles (2012)
suggest a change process to be made in three
steps; (1) prepare and plan change, (2) develop
change, and (3) embed change. During the first
phase, prepare and plan, it is the responsibility
of managers to convince employees that there is
a need for change, and thus specify the reasons
and opportunities. The authors also suggest that
change should motivate the employees to work
together to reach their goals. The resistance
should be reduced by identification and
understanding the source of resistance. The next
phase, to develop change, can also gain from
involving the employees, according to the
authors. They propose that the development is
done in two steps, where training of employees
is the first one and teamwork is the second step.
Teamwork is useful in the implementation of
change and it also keeps the organization
adaptable and helps encourage workers
participation when carrying out improvements.
Teamwork also creates a good basis to succeed
with further changes according to Jaca et al..
The last suggested phase in an implementation
is to root the change in the existing culture of the
company. Both managers and workers must
accept and understand the change to avoid a
setback.
3.1.1 Human-machine Interaction
Interaction between human and machine is an
area that becomes increasingly important with
the advancements in industrial technology seen
today. Choe, Tew & Tong (2015) argue that the
a increasing demand of high flexibility and high
productivity in industries, together with an
advancement in industrial technology for
achieving this, has had an impact on the work
situation for the operators. The authors argue
that in complex automated systems, operators
must conduct physical tasks while also
performing a series of cognitive tasks, like
supervision, decision making, and control,
based on available information. However,
automated systems tend to be designed with a
focus on automating the mechanical systems,
and not the cognitive functions for the operator.
In their studies a combined approach, focused
on both mechanical and cognitive automation, is
suggested as maximizing the effect of
automation.
Fasth, Stahre & Dencker (2008) state that
automation does not always work as intended
and may need human intervention for correcting
disturbances or system failure. Furthermore the
authors state that the interaction between human
and machine should be considered a changeable
factor instead of automation creating a situation
where either machines work without input from
operators or vice versa. Consequently the
human factor should be considered when
engineering systems involving both human and
machine.
3.2 Performance Metrics
Bellgran & Säfsten (2005) describe measuring
of performance in a production system as a way
of following up on defined targets. Time is a
commonly used measuring unit for following up
on productivity and efficiency. Related to this
10

thesis are two very commonly used time factors;
cycle time and lead time. Cycle time is
described by Bellgran & Säfsten as the time that
a product or component spends at each station,
or the time required to complete one cycle of an
operation. Lead time is the time it takes between
the start and stop of a process, which usually is
used to describe the time between placing an
order to delivery.
Productivity can also be measured as a
performance metric in itself. Bellgran & Säfsten
(2005) describe productivity as the relation
between what has been achieved in the
production (the output) and what was needed to
achieve it (input). An equation for productivity,
𝑃 , can also be presented as a factor or
percentage consisting of value adding time, 𝑡𝑣𝑎 ,
and the total time including stops, waiting time
etc., 𝑡𝑡𝑜𝑡 , formulated as
𝑡𝑣𝑎
𝑃=
𝑡𝑡𝑜𝑡
3.3 Lean Production
Lean Production is a management model where
the focus is to systematically remove waste from
all areas of the value stream. The value stream
can be described as the flow of all value-adding
activities within a process or system. Lean
production is used by Bosch Rexroth in a
localized variant called Bosch Production
System (BPS) (Robert Bosch GmbH, 2016). The
effects that an organization with Lean
Production strives for are increased efficiency,
decreasing costs by eliminating non-value steps
and inefficiencies in the processes, reduced
cycle times, and increased profit for the
organization (Näslund, 2008). In Lean
Production, seven wastes are listed. Hines and
Rich (1997) recapitulate the wastes
incorporated into Lean Production as: (1)
overproduction; (2) waiting; (3) transportation;
(4) inappropriate processing; (5) excess
inventory; (6) excess motion; (7) defects.
Just-in-time production (JIT) is a tool
commonly associated with Lean Production. JIT
means that the production is managed through
customer demand backwards to the ordering of
11
THEORETICAL FRAMEWORK
raw material. This demand can both be internal,
i.e. from other workstations, and external, as in
the customer. This is sometimes described as
pull production, meaning that production is
“pulled” based on this demand (Abdulmalek &
Rajgopal, 2007). Näslund (2008) describes JIT
as an approach for redesigning production
systems. He further states that JIT was initially
a stand-alone methodology. Furthermore,
Näslund argues that Lean in some ways can be
described as an updated version of JIT. There
are however more modern versions of JIT used
as separate strategy. Green, Inman, Birou, &
Whitten (2014) mention total JIT as a separate
strategy, where the idea of pull production is
also applied on areas such as purchasing, selling
and information.
Kaizen is a philosophy within Lean Production,
where the organization strives for continuous
improvement. Bosch practices kaizen in the
form of continuous improvement processes
(CIP) (Scwenker & Müller-Dofel, 2013). An
organization working with kaizen strives to
create a culture of continuous improvement
(Näslund, 2008). Moreover Czarnecki & Loyd
(2001) argue that visual tools are important to
use in a factory setting. The authors mean that
operators should have access to visual
information on the process as one tool to
identify areas for continuous improvements.
3.3.1 Kanban
Kanban is a philosophy that plays a significant
role in the JIT production system. The Japanese
word Kanban, translates to “signboard” and is
generally accepted as a tool for demand
scheduling. It was created to control inventory
levels by managing the supply of components in
the production. A Kanban system is used at the
MllP plant to create a pull effect in the
transportation of materials. (Gross & Kenneth,
2003; Kumar & Panneerselvam, 2007).
With Kanban, visual signals are used to
determine production to fill demand on the
principles of pull production and JIT. The
system is based on inventory level or material
scheduling. Kanban is usually represented by a
card containing information about a product’s
manufacturing information and details of its
THEORETICAL FRAMEWORK
path to completion (Kumar & Panneerselvam,
2007). For a system to be considered as true
Kanban, Gross & Kenneth (2003) state that the
production processes it controls must; (1) only
refill product(s) to replace consumed product(s)
by its customer(s); (2) only produce based on
refill signal sent by its customer(s). Junior &
Godinho Filho (2010) elaborate on this and state
that two Kanban communication signals (plastic
cards) are used in the original system; one to
production that authorizes a process to produce
a fixed amount of products and one to
transportation that authorizes transporting a
fixed amount of products downstream. The
Kanban system leads to a decentralized control
of the production flow. Nevertheless, Kanban
scheduling does not replace material planning
but rather uses that information to create a
Kanban card for visual control. It can be
considered as an executional tool rather than a
planning tool. Thus, the system creates a
situation where the work in progress, referring
to materials, is minimized between processes,
leading to reduced inventory costs (Gross &
Kenneth, 2003).
Kanban was created to fulfill specific needs at
Toyota, and be effective under specific
conditions. Since conditions vary between
organizations, the original Kanban system has
some restrictions. Studies show that it is not
adequate in situations with unstable demand,
processing time instability, non-standardized
operations, long setup time, great variety of
items, and/or raw material supply uncertainty.
Variations to the Kanban system were created to
adapt properly to the organizations conditions,
due to the difficulty in using the original system.
Most of the modifications proposed to the
original Kanban system are concerned with
signal use, and to establish means of
manipulating the number of signals or the
quantity. The most important topics of
theoretical studies about Kanban systems are
how to determine the right number of signals.
(Junior & Godinho Filho, 2010)
3.4 Industry 4.0
Lasi et al. (2014) describe I4.0 as the next big
industrial revolution. This revolution refers to
12
the introduction of Internet in industries. This
leads to the introduction of the concept of Cyber
Physical Systems (CPS). Functions as logistics,
manufacturing and product development are
described by Kagerman et al. (2013) as
integrated in the smart factory. Heng (2014) also
states the importance of imbedding not only
value adding processes but also working
organization, business models and services in
the strategy for i4.0. Johansson & Larsson
(2015) mean that this approach leads to flexible
production systems and organizations that can
quickly adapt to changing circumstances.
I4.0 is described by Lasi et al. (2014) as
introducing and evolving on functions as
autonomous machines, preventive maintenance,
remote control, energy supervision and
optimization, and advanced diagnostic
functions. Kagerman et al. (2013) evolve on this
and describe the revolution as being a
realization of IoT. The foundation of IoT is the
development of technology in areas such as
programmability, storage and data collection
capabilities (also known as Big Data), and
sensor-based functionality for machinery.
I4.0 will also evolve the employees’ work
routines. Kagerman et al. (2013) mention how
an increased focus on real-time oriented control
of processes will change both work duties and
work environment. Manufacturing work has
been, and will continue to shift from largely
manual labor to programming and control of
high performance machinery. This will increase
the complexity of work, demanding an
increased focus in maintaining and fostering the
skill level of employees. Routine tasks will be
handled by smart machinery, leaving room for
more creative and value adding work. (EPRS,
2015; Johansson & Larsson, 2015)
The potential benefits of I4.0 are described by
Kagerman et al. (2013), Lasi et al. (2014) and
Lee, Kao & Yang (2014) as; (1) increased
flexibility and shorter development processes;
(2) increased ability in meeting customer
demand; (3) organizational improvements
through a more transparent industry; (4)
optimized use of machinery; (5) reduced labor
costs and improved work environment for
employees.
 THEORETICAL FRAMEWORK

3.5 Radio Frequency Identification technology can lead to total traceability of all
products in the whole production system. The
One way to get control of inventory and
author also mentions that companies have been
logistics is by using automated id technology
actively using and developing RFID for many
together with checkpoints. The idea is to report
years and there are still organizations currently
the location of a product through its id-number
discovering new benefits of the technology.
whenever it passes a checkpoint (McFarlane,
Liukkonen further states that RFID can reduce
Sarma, Chirn, Wong, Ashton, 2003). This can
production costs in the future and therefore be
be achieved with i.e. RFID. RFID is a
an incentive for lower product prices. From this
communicational technology that can share
motive the improvement of RFID, especially
information via small transponders, and in that
when it comes to visualizing the information, is
way communicate with other technical devices.
going to be a major focus area in the evolution
Zheng, Fu & Yang (2012) regards RFID as one
of RFID technology.
of the key technologies for future automation.
According to Ting, Tsang & Tse (2013), gains
The principle of RFID as a tracking system, is
for organizations to use RFID systems are better
that the products or materials holding an RFID
inventory visibility, better supply chain
transponder also have unique id-numbers. The
visibility, increased productivity and labor
transponder can then communicate the object’s
efficiency, improved assets tracking, out-of-
unique id to a RFID reader connected to a local
stock reduction, increased security, inventory
database, where information about the product
reduction, cost reduction, better handling of
is stored. Information can also be stored in the
store and shelf inventory and an increase in the
product’s transponder to be read in another
ability to meet customer requirements.
workshop, at a retailer’s location or in other
McFarlane et al (2003) also mention greater
places outside the workshop. Castro Adaujo
product tracking accuracy, product diversions,
Filho, Travassos & Figueriedo (2011) states that
and faster checkout systems as possible gains
it is possible to read information on up to two
obtained through RFID. One big area for future
hundred transponders in a second with RFID
development is the large amount of collected
technology. When an RFID system is connected
data in RFID-reads of events. This can open up
to the Internet it can be seen as a component of
for new possibilities in i.e. statistical analysis of
smart factories and IoT. In that case the
processes or analysis of the relationships
transponder communicates through Internet
between events. RFID is thus a suitable
with a database located on a server. This means
candidate for the i4.0 coined term “Big data”.
access to an RFID system is possible to achieve
Today, algorithms for efficient ways of storing
from any location. (Zheng et al., 2012)
data through cleansing algorithms and similar
There are mainly three different types of RFID- already exist (Zhong, Huang, Lan, Dai, Xu,
transponders. Passive RFID transponders are Zhang, 2015).
transponders that do not need an internal power
Castro Adaujo Filho, Travassos & Figueriedo
source such as a battery. The passive RFID
(2011) experimented with RFID and found that
transponder uses power sent from the antenna to
transponders on metal surfaces increased the
relay information to an RFID-reader.
readability through reflection. To avoid
Consequently, a passive transponder is only
redundancy, the authors proposed and tested
active when it is inside the antenna field. The
solutions with either manual scanners or gates
two other types of RFID transponders, are active
where the RFID was read. Zhu, Mukhopadhyay,
and semi-passive RFID-transponders. These
Samar & Kurata (2012) tested different types of
transponders have their own power source
RFID transponders and also concluded that a
which makes them operable in a longer range.
transponder mounted on a metal surface makes
(Hervert-Escobar, Smith, Rodriguez-Cruz,
it more readable. Zhu and Cao (2014),
Cardenas-Barron, 2015)
investigated the usability of passive RFID
According to Liukkonen (2015), RFID transponders in different environments. Their

13
THEORETICAL FRAMEWORK

findings indicated that that metal surfaces can The third step, system design (3), should start
produce shielding effects which result in with an analysis of the requirements for the
unreadable transponders.
Ting, et al. (2013) also describe some reasons
organizations express for not implementing
RFID as; they perceive it as an immature
technology, there is a lack of return of interest,
there is not sufficient customer demand, there is
a lack of understanding the technology,
standards for RFID are perceived as inadequate
and implementation costs are high.
Sheng, Zeadally, Luo, Chung & Maamar (2010)
state that RFID is one of the most influent
technological innovations in the world and
recognized as one of the most powerful
innovations in terms of use. To be able to follow
this trend and respond to business needs, many
organizations have already adopted the RFID
technology and many more are on their way
(Mohammad et al, 2014).

3.5.1 RFID Implementation

Implementing RFID systems in industrial
environments is a growing trend according to
Ting et al., (2013). An implementation strategy
is therefore crucial. To reduce the risk of errors
and facilitate decisions along the way, these
authors have developed a framework for the
installation of RFID equipment that can be seen
in Figure 5.
According to Ting et al., (2013), the
implementation should be done in certain steps.
The first step should be to define the scope of
the implementation (1), which refers to defining
the possibilities and limitations of RFID, and
also to state the objective of the implementation.
The authors state that it is important that the
organizations gain knowledge on what is and
what is not possible with RFID equipment. If
this is not clear before implementation there is a
risk that unrealistic expectations and
misunderstandings causes disappointments
among employees, i.e. about the reasons to use
or gains of RFID. When the objective is defined
Ting et al., suggest that the following step is to
collect and analyze data about the existing
system through a situational analysis (2).
14
Figure 5: Ting et al., (2013), suggested steps for
implementation of RFID (Picture compiled by the
authors of this thesis).
RFID solution as a follow up on the situational
analysis. When the requirements have been
established, the selection of hardware and
software can be started. The authors also mean
that sometimes new equipment and new
processes have to be designed or figured out.
The new hardware and software installation
should lead to simplifications or work
reductions in processes.
Ting et al., (2013), suggests a prototype testing
phase (4) before the actual implementation to
make sure that it will develop in the right
direction. The prototype testing should be
designed to show both hardware and software
issues so bugs and collisions in different

systems can be identified. After possible
problems are detected and solved in the
prototype testing phase, the actual
implementation can be done (5). In most cases
the implementation includes changes in
management, work routines and system
deployment. Sometimes it is also possible to
develop the new (RFID) system parallel with the
old system until it runs satisfyingly.
Ting et al., (2013), labels the last step in the
implementation as continuous improvement (6).
The authors believe that in a new system there
will always be room for further improvement.
Because of this, they suggest that the
organization continuously evaluate and improve
the system. The improvement should also
include collecting feedback from users as one
basis for further development.
Ting et al., (2013), also defines some critical
success factors for an RFID implementation.
According to the authors there are three
dimensions for the critical factors; the technical,
the managerial and the social dimension. The
technical dimension includes selection of the
right hardware, effective testing, sufficient
technical support, understanding of the
processes and clear performance measures. The
managerial dimension is more focused on
project managerial skills, where risk
management, project management and a clear
vision of the project are important aspects. The
social dimension focuses on the importance of a
well-functioning teamwork and the use of
effective communication.
3.5.2 Real-time Monitoring
According to Chen, Chen & Cox (2012) RFID
can, besides the autonomic communicational
benefits, effectively be used to improve
visibility and traceability in a manufacturing
Figure 6: Principal description of RFID and monitor (Based on Abdullah, Ismail & Halim, 2015).
15
THEORETICAL FRAMEWORK
system. Mainly because of the advantages in
long-distance and non-line of sight reading that
is possible with RFID. Chen et al., claims that it
is particularly suitable for tracking
manufacturing sources in assembly and
production of complex products.
Chen et al. (2012), designed a real-time value
stream monitoring system in an experimental
environment. By using RFID technology the
system improved the traditional Value stream
map (VSM) by tracking production flow in real
time with data from real-time production. The
authors state that a value stream monitoring
system with real-time information can support
management in making decisions by visualizing
real-time data from the value stream.
In a case study of an industry production line,
presented by Abdullah, Ismail, Halim, (2015),
the output of an RFID system was evaluated.
The findings of the study showed that a display
linked to the RFID system was the most
efficient way to show status because of its
simplicity and cost-effectiveness. The display
can show figures like targets, differences and
efficiency. The authors further proposed that the
display should be located in a location close to
the users for easy visual access of the current
status of the production line. The simplified
functionality description of the display is shown
in Figure 6. The RFID reader together with the
database can be seen as the master of the system
and uses the status information collected from
the RFID transponders to display the present
status of the production. (Abdullah, Ismail,
Halim, 2015)
THEORETICAL FRAMEWORK

16
 Method

4 METHOD

The method chapter presents the tools and practices that has been used
during this thesis. This chapter aims to help the reader follow and understand
how the process of work was executed. It also helps the reader understand
how data was collected and used. This master thesis is founded on a literature
review and a case study done at MllP. Throughout the thesis a standardized
work method focusing on iteration has been used to approach each phase to
ensure a consistent progression of the work.

17
METHOD
4.1 Scope of Work
The master thesis is founded on a literature
review and empirical results achieved through a
case study done at MllP. The insights gained
from the different methods are used to answer
the research questions of this thesis. The thesis
is done by two full time students over a period
of 20 weeks, which gives the project a total
amount of 1600 working hours distributed
between the case study and the literature review.
The case study consists of a current state
investigation, situation analysis, system design
and implementation, and ends with a brief
evaluation. As mentioned before, the scope of
the case study is limited to certain areas of the
production which are further described in
subsequent chapters. One early request from the
sponsor of the project was to integrate the RFID
solution to the enterprise system at MllP. MllP
is currently undergoing a replacement of their
enterprise system from Microsoft Dynamics AX
(AX) to SAP. However, due to the current delay
of the implementation of SAP at MllP, the case
study will not involve integration to any
enterprise systems. Nevertheless, certain
guidelines connected to the SAP system and
reporting points of processes in the value stream
have been taken into consideration.
The project has the following delimitations:
 The existing transponder on the motors
will be used for the case study, which
means that no study on transponders
will be done.
 Cost calculations of the project are
excluded, however the importance of
the return of interest is discussed for
the implementation.
 RFID specific technical details, such as
radio frequencies and electrical power
data are left out and handled with
recommendations from hardware
suppliers and Bosch internal guidance.
 The implementation is done on the CA
motor line, nevertheless the same
method could be used for
implementation in other manufacturing
lines as well.
18
4.2 Process of Work
Throughout the thesis a standardized work
method has been used to approach each phase.
In total the project has consisted of 6 main
phases; the project plan phase (1) where the
objectives and aims were defined, the phase for
theoretical framework (2) where relevant
research in areas related to the thesis was
collected, the situational analysis phase (3)
where data was collected and analyzed in regard
to the implementation, the design phase (4)
where a concept was generated, the
implementation phase (5) where all software
and hardware were installed and finally the
results analysis phase (6), where conclusions
were made. The phases in the thesis have been
divided into smaller discrete units or tasks that
have been defined on a weekly basis. A more
detailed description of this weekly planning is
described in section 4.2.1.
The process of work was based on the PDSA
cycle, also known as the Deming cycle. The
cycle was developed by Deming and Shewhart
as a model to guide improvement projects. The
initial letter of the four steps the model consists
of, Plan-Do-Study-Act, spells out the name of
the model. Plan refers to planning the proposed
change or work, Do refers to carry out the
change, Study refers to analyzing the results, Act
refers to either adopting the change or
abandoning it. The steps are repeated over and
over as a part of a cycle of continuous
improvement (Montgomery, 2013).
The generalized work process that has been used
for this thesis is illustrated in Figure 7 and can
be seen as a modified PDSA cycle for each
phase. For each phase a set of objectives are
determined of what should be achieved in the
phase. Then the phases are given time
constraints, described more thoroughly in the
next section. These steps can be compared with
the Plan step of the PDSA cycle. The specific
tasks for achieving the objectives of the phase
are defined, delegated among the group
members and then worked on. This is
comparable with the Do step in the PDSA cycle.
When done, the results are evaluated. If more
work is needed to achieve the phase objectives,
the cycle of defining steps, delegating and

finishing tasks are repeated again. This can be
compared with the Study step in the PDSA cycle.
This means progress through the phases of the
thesis have not been made in a straight-through
process but rather in an iterative way. Working
through the tasks has been seen as a way of
generating more information on what is needed
as new information subsides. The described
cycle has been regarded by the authors as a
means of efficiently “forcing” the work forward.
The step Act in the PDSA cycle can be
compared with moving on to the next phase in
the process of work for this thesis.
Figure 7: The work process used in each phase of
the thesis (Source: Compiled by authors).
4.2.1 Project Planning
The overall work process has been focused on a
great deal of planning to maintain a steady work
flow and to fully consider all relevant factors of
the current state at the case study,
implementation of hardware, education of
personnel but also the theoretical part of the
thesis. The planning has been an ever evolving
process where steps have been added as the
work has progressed.
19
METHOD
The first crucial step in the project was to setup
a project plan to establish the research questions,
project scope, and objectives and aims.
Background to the project and important
stakeholders were also defined and included in
the plan. A rough structure for the project
outline was establish as a preliminary guideline
and overview of what would be accomplished.
This was also done to concretize the work and
objectives of the master thesis. Project
management, in terms of resources like
available time, was also approximated and
delegated among the work process phases
thought relevant for the project. Lastly the
project organization and the means of
communication between the authors and
supervisors was proposed. The aims in
developing the project plan was to create a
guideline for the entire project and to
communicate this among all parties. The results
from the project plan have been updated and
incorporated into this report as the process of
work has progressed.
A standard way of presenting a time schedule is
to use a Gantt chart. The Gantt chart presents
activities as bars on a timeline and constraints
presented as lines between the bars. A Gantt
chart makes visualization of complex
scheduling possible (Tory, Staub-French,
Huang, Chang, Swindells, Pottinger, 2013).
The Gantt chart has been used in this project as
a way of constraining each phase the project has
progressed through by setting a target for when
a phase should start and be finished. The chart
has been updated two times during the thesis.
The first update was made somewhere halfway
through the thesis. The changes here brought the
time table forward on the design phase and
implementation since work could be started
earlier than expected. During the final month a
second edit was made where the implementation
phase was extended because of a clarification of
delivery dates. The phase was also more clearly
defined with points added such as training of
personnel and software setup. The Gantt chart in
its entirety can be seen in Appendix 1.
The process of work on a weekly and daily level
has been handled through an action log. This log
consists of several tasks with item numbers,
METHOD
description of the task, owner of the task,
assigned date, due date and the status for the
task. Each week has started with a planning
session where the agenda for the week has been
set and where related tasks have been written
down. The action log has been used to maintain
a continuous work flow and to establish clear
agendas with each week and day. As an added
value, the action log has also provided a clear
view of tasks that have been done which has
helped in keeping track of the progress. An
excerpt from the action log can be seen in Figure
8.
4.2.2 Project Organization
The project organization consists of the
contractor MllP, the thesis group as the
operational team, Anders Palm as the supervisor
at MllP, and lastly the plant manager as the
project sponsor and second supervisor at MllP.
There are many individuals at MllP that can be
regarded as stakeholders to this project. The
entire Logistics department (LOG) can be seen
as important stakeholders because of the
increased ability of tracking lead times that the
RFID solution may provide. Manufacturing
Operations and Engineering (MOE) are
important stakeholders since the implemented
solution directly affects their working
environment and routines. Luleå University of
Technology can also be seen as a stakeholder
since this thesis will be approved for publication
by the university.
Figure 8: Excerpt from action log showing week, task, owner, assigned and due dates, and status (Source:
Compiled by authors).
20
4.2.3 Brainstorming
Baxter (1995) describes brainstorming as a
typical method for generating ideas. The classic
way involves a group of people seated around a
table generating ideas to solve an identified
problem. Brainstorming can be used to generate
ideas and strategies, identify objectives, and
solve problems. The method is particularly
useful in the early phases of a solving process
(Lee, Hong, Jang, Lee, Kang, Shim, 2015). The
findings of Furnham & Yazdanpanahi (1995)
suggest that brainstorming can be used as a one-
man tool as well.
Brainstorming has been used in several phases
of this thesis to generate ideas and with the
incentive to keep a constant work flow.
Brainstorming techniques, such as free writing,
free speaking or the drawing of rudimentary
mind maps on papers are examples of activities
that has been used during the work.
Brainstorming has also been used to generate
questions to analyze around the investigated
subjects, e.g. in the situational analysis. In the
process of work and weekly planning
brainstorming has been used to generate ideas of
relevant steps in need of completion to finish a
phase. In the conceptual phase, the technique
was used to initiate and generate the
implementation design.
 METHOD

4.2.4 Risk Assessment
Risk management can be considered a main
success factor in project management as stated
by Chan, Yeung, Yu, Wang, Ke, (2011) in a
study of risks in public-private projects in China.
In this master thesis a risk assessment was
initiated at the start. The assessment with an
action plan for each risk can be seen in Table 2,
where the severity and probability of the risk are
approximated on a four-grade scale. The risk
score is calculated as a factor of the severity and
probability. Two major risks were identified as
insufficient process mapping and insufficient
knowledge of software. The risks were revisited
halfway into the process of work and were then
considered as not affecting the chance of
succeeding with the master thesis. The risks
remaining were related to the implementation.
Regardless of the rate of implementation, the
collected empirical data were considered
sufficient for contribution to the answers of the
questions of the research questions.
An Ishikawa diagram has also been used for risk
assessment, The Ishikawa diagram, also
commonly referred to as the cause-and-effect-
diagram or fishbone diagram, is a visual tool
used to analyze a problem and its causes. The
diagram is constructed of a box with the defined
problem attached to a center line that is linked
to boxes of major potential cause categories.
Each category box has one or more underlying
causes linked to it. The method for creating the
diagram is identifying potential major problem
areas and causes through brainstorming. The
diagram is useful for identifying potential
causes to a problem for troubleshooting or risk
management (Montgomery, 2013).
In this thesis the Ishikawa diagram was used for
risk analysis in terms of potential risks for RFID
implementation. This helped identify areas that
needed consideration in the implementation
design. The method used for identifying
potential causes was brainstorming rooted in
data gathered from evaluation of the current
state. The diagram was updated several times
during the work progress, as new insights were
learned.

Severity Probability Risk

What can go wrong Action plan
(1-4) (1-4) score
Continuous contact with operators, MOE
Process mapping insufficient 4 3 12 and LOG and visits in the workshop
environment for validation.
Insufficient knowledge of
2 4 8 Contact with software supplier and CoC.
software
Technical errors (systems or
3 2 6 Contact with hardware supplier and CoC.
software not working)
Insufficient time for testing Check timetable. Force through other
2 2 4
and evaluation of system phases to initiate testing early.

Unspecific/Unclear objectives Define and confirm with supervisors and

4 1 4
and aims of master thesis sponsor early!

Not sufficient guidance from Book meetings continuously. Set up weekly

1 1 1
supervisors meetings.

Table 2: Initial risk assessment for master thesis with suggested actions to reduce risk.

21
METHOD
4.3 Literature Review
To lay a theoretical foundation to the work, a
literature review has been conducted on
scientific papers related to this thesis. The
articles used for literature review have mainly
been obtained through the databases Web of
Science 1 , Primo 2 and Scopus 3 at Luleå
University of Technology. Google scholar4 was
also used to find specific articles mentioned in
other sources. To maintain high quality in the
literature review, information has been
triangulated with several sources. Search terms
used in these databases were formulated as or
directly related to “material handling”, “auto
id”, “industry 4.0”, “RFID”, “monitoring”,
“implementation” and “value stream”.
Selections of relevant articles were based on the
abstracts and conclusions from the search
results to get an idea of the articles’ relevance to
this thesis. In some of the search results, new
relevant references and recurring authors led to
new search terms. Through this iterative
approach, further research could be done in
relevant areas.As a general rule, this report has
had the goal of using sources that are up to date,
meaning finding information at least not older
than five years. Some older sources have been
used, but only on the argument that they are
regularly referenced to by other authors.
4.4 Data Collection
Accurate data collection is essential to maintain
a high quality to the research made in this thesis.
The selection of the appropriate tools for data
collection is thus of great importance. To ensure
the reliability in the collected data several
different methods can be used, both qualitative
and quantitative. The case study at MllP has
been of an explorative nature which has laid a
lot of emphasis towards qualitative data.
1 https://webofknowledge.com/
2 http://primo.lib.ltu.se/primo_library/libweb/action/search.do
3 http://www.scopus.com
4 https://scholar.google.se/
22
The data collection phase for this thesis has
mainly consisted of visits and interviews in the
production environment and workshops. Some
information like internal documents has also
been collected digitally through the internal
network.
4.4.1 Observations
Observations are generally used to develop an
understanding of a situation and to collect
information about different events. With
observations it is possible to see how tasks are
managed and how humans handle a machine or
a product. An observation is done to gain deeper
knowledge of the observed situation and
possibly show things that the user himself would
not see. An observation may be done either in a
real work environment, such as at the work
stations at MllP, or in a fictitious environment.
With observations it is possible to get both
qualitative and quantitative data depending on
the set up for the observation. An observation
can be systematic, which means that a specific
task or event is observed. Observations can also
be unspecific where everything of interest is
observed. (Osvalder, Rose & Karlsson, 2010)
Observations of the physical working station
areas have been a crucial part of this thesis. The
entrance and leave of the motor have been
thoroughly observed at all stations to fully
understand working routines when designing
the implementation. Passive observations have
also been carried out to get a “true” picture of
the daily operations without disturbing or
influencing the operators. Basic processes like
leaving and collecting the motor with a forklift
is one example of processes were normal
observations in conjunction with interviews
have given sufficient information for the current
state analysis.

Visits to the production environment have been
carried out on an almost daily basis during the
authors’ stay in Mellansel. Although all of these
visits have not had the clear agenda of observing
operations, quick checks have frequently been
carried out to see if new undiscovered activities
have taken place. This has led to the discovery
of relevant information that may have been
difficult to perceive in advance when doing
interviews with personnel. Iteratively,
information has also been gathered as the work
has progressed and information gaps have
subsided. A more active observational approach
has also been chosen through participatory
observations described in the next section.
Disadvantages of observations as a tool for data
collection are that they usually do not show the
underlying reasons to the observed situation. It
is recommended to do complementary
interviews in conjunction with observations to
get information about cognitive factors and
better understand the situation. (Osvalder, Rose
& Karlsson, 2010)
4.4.2 Participatory Observations
Osvalder et al. (2010), describe participatory
observation as an observation where the
observing person(s) is involved in the work
process and undergoes the studied operations
himself to learn and build a deeper
understanding for the work task. The approach
in this thesis has been to use participatory
observations as a means of identifying factors
that may have been overlooked while making
regular observations.
Participatory observations were made on
several occasions to observe manual working
routines at investigated process steps and to gain
knowledge on optimal hardware setup, as to not
disturb daily operations. Processes like how a
transponder is attached to the motor and how
information is written to the RFID transponder
have been observed together with the personnel.
This was done to analyse crucial steps in the
current state and for writing new work routines
when implementing the new RFID system.
Observations have also been made on the testing
chambers to see how the operators walked
around the station and moved the motors in and
23
METHOD
out of the chambers. During testing,
participatory observations were chosen as an
approach to identify potential sources of errors
that could be difficult to identify at a first glance.
These observations have been carried out by
visiting the related workstations at the start,
during the test and at the end of the test.
4.4.3 Interviews
An important factor in acknowledging the
correct needs for the case study is a correct
understanding of the current situation at MllP.
One of the most important tools to achieve this
is by interviewing the people working in the
environment. Lantz (2013) describes that the
way in which an interview is performed may
give dissimilar data, describe different contexts
and give different results and conclusions. Lantz
categorizes interviews into two main groups;
open and structured interviews. In an open
interview each interviewee is given open
questions to freely elaborate on. Lantz considers
this a good method for explorative information
gathering and understanding the context of the
interviewee. In an open interview questions like
how something is perceived and what meaning
it has are asked. The role of the interviewer is
described as being empathic and flexible. This
interview method can be perceived as a
qualitative analysis tool because of its
subjective nature. Lantz also mentions a variant
of the open interview in the directed open
interview. Here the interviewer directs
questions towards topics he or she considers
important.
In a structured interview questions have been
formulated to catch the subject’s perception or
experience of a predetermined topic. Lantz
(2013) considers having predetermined answers
to choose from as the most structured interview
form. Structured interviews are focused on
quantitative comparisons between interviewees
that cannot be achieved through open interviews.
Lantz states that a semi-structured approach on
interviews can be achieved. Here the subject is
asked to describe his or her perception of a set
of predetermined questions. This approach can
be described as involving both open and closed
answers. The interviewer gets results that can be
METHOD

used for quantitative analysis but also a limited Both workshops were divided into two sections.
possibility of qualitative analysis. As described The first section was an introductory part,
by Lantz, qualitative analysis can give an handling information on the project, all areas
opportunity to understand new phenomena and affected in the production and examples of
modify established research on areas. everyday use of RFID technology to setup the
Quantitative analysis give knowledge on stage for the workshops. The second part was a
relations between phenomena to be able to draw two-way communicational dialogue used for
conclusions based on data. idea generation, problem identification and
discussion of possibilities. A theme consisting
As a means of doing an explorative analysis for
of three questions was used as the basis for the
this case study, a semi-structured approach on
discussion. The authors to this thesis played the
the interviews have been chosen as the main
role of leaders of the workshop, to initiate and
interview form. Interviews with people at LOG,
moderate the discussion when needed. Ideas and
MOE and other departments not directly on the
discussions were continuously written down
shop floor have been booked with a clear agenda
during the sessions. Each workshop session was
to the interviewee(s) from which the subject
45 minutes long. The workshop setup can be
have evolved. All planned interviews can be
seen in Appendix 3.
seen in Appendix 2.
The operators and manual workers at the shop 4.5 Data Analysis
floor have been interviewed at their respective
Analysis of data is the process following data
stations to map out their working and reporting
collection. It has been used to probe data for
routines. These interviews have been semi-
useful information to suggest conclusions and
structured or almost unstructured in nature as to
support decision-making in the phase for
not filter out information that could prove
conceptual design. Much of the analysis work
crucial to the implementation. This means
done in this thesis can be seen as a sort of data
undertaking unplanned interviews on the shop
cleaning or processing to obtain the correct
floor when the manual workers have been
information. The general approach has been to
available. This approach of explorative
always triangulate data with several sources as
interviews has been used to confirm information
a basis for understanding what is and what is not
about workstations and to become aware of the
relevant. Data analysis has in many ways also
possibilities from the manual workers point of
been a process of analyzing and presenting
view.
results to the stakeholders for confirmation.

4.4.4 Workshops
4.5.1 Value Stream Mapping
Workshops have been chosen as a method to
Value Stream Mapping (VSM) is a Lean
generate and convey ideas among the personnel.
Production tool for mapping the value stream of
The workshops for this thesis have been held as
a process or value chain. This is done to identify
single short focused events. One workshops
and eliminate sources of waste and highlight
split in two sessions have been held with the
opportunities for improvement (Dotoli et al.,
operators working directly with the motor. The
2015). Abdulmalek et al. (2006) regard VSM as
topic was defined as how the implementation of
one of the most important and universally
RFID could improve the working environment
applicable tools for industries. In this thesis,
for the operators. A total of 30 individuals
VSM is used to visualize and analyze the value
participated in both sessions, coming from all
chain for related processes but also to identify
stations related to the case study at MllP. Two
potential spots for RFID implementation. It has
sessions were used to involve all related
also been used to convey conceptual designs and
personnel working on different shifts. At the
confirm the situational analysis with
second session, the shop floor manager also
stakeholders during interviews and meetings.
participated.

24

Abdulmalek & Rajgopal (2007) consider VSM
a “pen and paper” tool. The authors present the
steps for VSM as: (1) choosing the process or
product for improvement; (2) mapping the
process in its current state and (3) lastly
mapping the future design state. In this thesis the
first step of choosing the process was set from
the start. The second step of mapping the
process in its current state was done through
observations, interviews and by comparing with
existing VSMs from the internal database at
MllP. The accessory part of the VSM, presented
in section 6.2, is an example of a newly added
feature that was not outspoken from the set.
Microsoft Visio5 has been used as the software
for creating the VSMs used in this report.
4.5.2 Specification of Requirements
As a conclusion of the situational analysis,
theoretical reference and input from different
stakeholders, a specification of requirements
was set up for the RFID design. The
specification of requirements was used as a
background to different ideas and to quickly
evaluate conceptual proposals. The
specification was frequently updated during the
project based on discoveries and feedback from
stakeholders.
The specification of requirements was also used
to evaluate thoughts during the design
development and make sure that the RFID
solution was developed in the desired direction.
4.6 Concept Development
The area of idea and concept development was
initially seen as two separate steps in the thesis.
Several requirements were set from the
beginning of the case study. A specified process
for implementation, Bosch standards on
equipment, software logic and the fact that
RFID was the investigated method of
implementation mean that the main focus for
this thesis has been largely on concept
development based on gathered data to achieve
5 https://products.office.com/en-us/visio/flowchart-software
25
METHOD
the project objectives.
Much of the work with concept development
has been tightly linked to the analysis of the
mapping of the processes. This has resulted in a
specification of requirements that has directed
the concept development process.
4.6.1 Conceptual Design
Conceptual design has been drawn up in the
form of a VSM, similar to Abdulmalek’s &
Rajgopal’s (2007) suggested last step of
mapping the future state. This has been done by
adding arrows showing the desired electronic
information flow and symbols for RFID at spots
where implementation is suggested at the VSM
of the current state. This design is referred to as
the Value stream design, VSD. The concept has
been presented to stakeholders for feedback at
multiple occasions as a way of receiving input
for concept development. As new information
and feedback has subsided, the concept has been
updated with small design changes making the
design of the future state an iterative process.
The changes made have mostly been how to
define what is the start and stop of an operation.
A conceptual design was also developed for a
real time event monitor. This concept was
created in the image editing software GIMP
based on screenshots from the visualization tool
Kibana. This concept was then presented to
different stakeholders to receive feedback and
the feedback collected resulted in small updates
in the final dashboard design.
4.7 Implementation
The implementation has consisted of
installation of hardware and software, and a
phase for testing of functionality.
The implementation can be seen as a research
experiment with its own objectives and results.
These results can be compared to existing
theories and studies in the field.
METHOD
4.7.1 Installation
Installation has not been handled solely by the
thesis group but collaborative with local
consultants and Bosch Center of Competence
(hereafter abbreviated CoC) for RFID in
Germany. CoC are cross-divisional
organizational units which bundle resources and
know-how (Robert Bosch GmbH, 2015c).
The installation phase can be described as
consisting of the installation of hardware at
locations in the plant and the setup of the
software.
4.7.2 Testing
Several tests were performed on equipment and
software setup to assure that every step of the
implementation was possible. An initial test was
made to assure that the attachment of the RFID
transponder could be made in the first step of the
VSD without any complications in subsequent
processes. After installation, functionality tests
were also performed to fine-tune equipment and
to optimize implementation setup. These were
done by testing a transponder with written
information and tweaking settings until
consistent reads could be achieved.
26
4.8 Reliability and Validity
The reliability and validity of this master thesis
can be considered as consisting of two factors:
the reliability of the methods selected as tools
for the thesis and the comparison between
theoretical and empirical insights. Methods
have been selected based on a clear
understanding of what the tool can achieve in
this thesis, which is described in the previous
sections. Selections of multiple methods have
also been chosen to strengthen the results, which
is supported as a reliable method for obtaining
validity according to Yin (2013). These methods
have also been of different types to get varying
data types to base the results on. The main
method of work has been focused on using both
theoretical and empirical findings to create
reliability to the thesis, described as the Logic
model by Yin. This model is described by Yin
as providing validity to the results by comparing
the results with existing studies.
The reliability and validity was also ensured by
working in a cyclic pattern described in 4.2
Process of work. Since each undertaken action
was confirmed as completed first after it was
evaluated, a greater quality to the work and a
more valid result could be reached. One main
method for validation has also been to discuss
working methods and results with different
stakeholders i.e. the sponsor, the university
supervisor, operators working in the factory and
other personnel at LOG and MOE.
 Case study miip: Current State

5 CASE STUDY MIIP:

CURRENT STATE
To investigate the research questions in relation to the case study, a correct
understanding of the current state in related processes at MllP is needed. This
section thus stands as a validated documentation of the current state that sets
the foundation for a situational analysis. The collected information is the result
of several interviews with personnel on the shop floor, foremen, and planners
at MOE and LOG. Continuous visits for making observations at the physical
locations also stand as an important method for defining the current state.

27
CASE STUDY MllP: CURRENT STATE
5.1 Overall Plant Layout
The plant consists of two basic material flows, a
group flow for manufacturing operations and a
group flow for assembly operations, both of
which can be seen in Figure 9. The flow for the
manufacturing group starts at incoming goods
and ends with storage at the kitting area. From
there the process flow for the assembly
operations starts and ends with the storage of the
motors on shelf for delivery.
This thesis focuses on the process flow for the
assembly group, which in terms of specific
processes means from kitting operations to
packing. Accessories are also added to some
motors at different stages of the process flow for
assembly. Where in the process flow the
accessories are added depends on the motor type
but the physical location for adding accessories
is always the same.
5.2 Value Stream Mapping
MllP is tracking an approximated lead time from
when the order is confirmed by the customer, to
the time when a finished motor has been packed
and is put on shelf for delivery. The value
streams for the CA motor can be described as a
Figure 9: Plant layout with offices removed (Source: Compiled by authors from existing plant layout).
28
stream consisting of motors without accessories,
seen in Figure 10, and a stream consisting of
motors with accessories described more
thoroughly under heading 6.2 Motor
accessories.
When an order is registered, the production
planners prepare the motor to be assembled, by
allocating the material and booking the
processes that are needed to fulfill the order.
This step is mandatory and usually takes about
one day. A bill of material from AX is printed at
the washing station and brought to the kitting
station.
The initial steps of the assembly differ between
the different engine models. For a CA motor the
process starts with all the parts for one motor
collected together, i.e. the motor is being kitted.
When the motor is kitted and put on a fixture,
the kit is moved to a pre-washing queue with
forklift.
The washer is an automated process where all
the parts are being washed before they can be
assembled. The pre-washing queue is controlled
by light beam sensors that send information to
the system that there are new motor parts to be
washed. Transportation to the automated

washing is done by automated rollers that start
running when the washing has an empty slot.
The automated washing process contains
washing and cooling. Empty fixtures are
automatically brought outside by rollers for
forklift collection. At the end of the workday, all
washed motors are manually reported having
gone through washing in AX.
When the kit has been washed and cooled it goes
into the assembly station for manual assembly.
Assembled motors are reported in AX and
brought through an automatic gate to the testing
area.
Every motor is being tested before it moves on
to the painting area. The motor testing area
consists of a total of five testing chambers,
suitable for the different motor models. Two
chambers exist for the CA motor. The testing is
done inside the testing chambers and consist
both functionality and strength tests. The test
results are linked to the motors ID and are stored,
for either further analysis or for evaluating
component errors. The results are uploaded to
AX.
The paint shop is fully automated. The system
uses RFID transponders attached on the motor
to communicate and get information regarding
Figure 10: VSM of thesis related process (Source: Compiled by authors from Bosch Rexroth Mellansel internal
VSM).
29
CASE STUDY MllP: CURRENT STATE
variations in the painting process for every
motor. All the transports in the painting area are
also automated. When a motor is put in the
painting area, the RFID transponder calls for
transportation from an automated guided
vehicle (AGV). The AGV takes the motor
through the whole painting process without any
human involvement in any of the process steps.
After the painting process the motors are
brought to the packaging area by the AGV.
Packing is done in boxes or special pallets
depending on CA motor model. When the
packing is done the motor is reported as ready
for shipping and placed in the inventory. CA
motors are both stored and reported as finished
in this area (CA50/CA70) or after the motors
have been put in a storage tent outside the
packing area. After the motor is reported as
finished, the distribution process can be planned
and the motor is ready to be delivered.
5.3 Transponder Attachment
Today, a double stitched RFID transponder,
shown in Figure 11, is attached to the motors in
the assembly. This transponder is used for the
fully automatic paint shop where the processes
and AGV communicate directly with the motor
CASE STUDY MllP: CURRENT STATE
on which painting procedure and color scheme
it is programmed for.
Figure 11: RFID transponder used at Bosch
Rexroth in Mellansel (Source: authors’ picture).
Since the motor is metallic, a previous pilot
project at MllP has shown that the most suitable
transponder is a transponder coated with an
insulator to avoid the metal’s interference with
radio frequency signals. The transponder has a
fixed position on all CA motors that can be seen
in Figure 12.
Figure 12: Placement of RFID transponder on
motor in yellow circle (Source: authors’ picture).
5.4 Production Management
Production management is handled through
both daily meetings and tools used in BPS.
Daily meetings are used in the assembly area as
a two-way communicational tool. Here
information on the actual order income for the
week and the outcome of production are the
topics. Separate daily meetings are also used at
other areas of the plant but are not applicable to
this case study.
30
The flow for the manufacturing group of
processes is managed through two Kanban
systems to achieve pull production or JIT. The
transport Kanban cards are used to order raw
material to the manufacturing processes. This
Kanban system consists of order cards with
RFID transponders and a Milk run with a set
route and time table. The Milk run picks up
ordering cards at the stops for material refill and
returns with the ordered material at the next
scheduled route. The stops are located at their
corresponding manufacturing stations. There is
also production Kanban to control the
production of parts.
In the kitting area is a system for FIFO, short for
First in First out. It is used to control the order
of the material flow. It is done through a
solution consisting of a vertically aligned tube
filled with hockey pucks that the material kitters
pick when starting work on a new motor. Each
hockey puck symbolizes a specific order. At the
bottom of the tube is an opening for picking
pucks. When a new hockey puck has been
picked, it is placed in a holder on a wall
indicating the need for replacement of new
material. When new material arrives in the
supermarket, a puck representing the new
material is placed at the top of the FIFO
designed tube, falling to the bottom if no other
pucks are in the tube. The pucks symbolizing
orders can only be picked in the order of FIFO
because of the design of the tube.
5.5 Software at MllP
AX is an enterprise resource planning software
used in the production environment at the plant.
MllP handles all work orders, material planning
and execution through AX. Reporting of end
times in AX today is done manually by
operators at most processes, described more
thoroughly in 6.1 Production Environment.
Hägglunds production system (HPS) is the
manufacturing execution system used for the
painting area. It controls the automatic
processes and provides information on which
motor type and where in the painting process it
is at screens located at the packaging area. It is
also used to write information on the RFID
transponders.

5.5.1 SAP
SAP is an enterprise system used to visualize
production, purchasing, maintenance and
disposition services. SAP is required within the
Bosch Group and is planned for implementation
at MllP in May 2016. It will replace the current
software Microsoft Dynamics AX (Bosch
Group, 2015).
5.6 BOSCH Group Guidelines
Bosch has several guidelines regarding choice
of equipment and software in their plants. A
guideline for object identification also exists
within the company. These guidelines are
described in the sections below.
5.6.1 RFID Equipment
Bosch Group has set up a catalogue of preferred
RFID equipment, to make sure that all
installations will be compatible with the internal
systems and to meet Bosch standards.
31
CASE STUDY MllP: CURRENT STATE
For this project there are four different options
when choosing RFID readers. Single point
readers are chosen when an id of an RFID
transponder can be read from the same point
every time. Gate readers are chosen when the
RFID transponder must be scanned when
moving between workstations and areas in the
plant. The third option is a reader with direction
detection; this will be selected when the
direction of a moving RFID transponder needs
to be known. The fourth reader is a mobile
reader for manual scanning. A list of different
RFID-antennas is showed in Appendix 4.
5.6.2 GS1
Bosch group follows the GS1 standard for
object identification. GS1 is an international,
neutral and not-for-profit organization that
develops and maintains standards for businesses
and organizations around the world (GS1, 2015).
The used standard can be seen in Appendix 5.
CASE STUDY MllP: CURRENT STATE

32
 Case study miip: Situational analysis

6 CASE STUDY MIIP:

SITUATIONAL
ANALYSIS
Understanding what effects the design of the RFID solution in the case study
has is the step that follows the mapping of the current state. Here, a more in-
depth analysis of the physical locations in relation to suitability for hardware
installation and overall implementation is presented. The working routines for
operators are described to gain an understanding of what the implementation
could effect in terms of daily operations at the step closest to the motor.
Alternative routes for the CA motor is described at the end of the section.

33
CASE STUDY MllP: SITUATIONAL ANALYSIS
6.1 Production Environment
The following paragraphs describe the physical
environment for the assembly group of
processes. These include the areas around
kitting, washing, assembly, motor testing,
painting and packing. The description is made
with an emphasis on analyzing the suitability for
RFID implementation. The work routines are
also described for the processes.
6.1.1 Kitting Area
The area, seen in Figure 13, is located inside the
supermarket, principally to be close to the parts
needed for the kitting of the motors.
Figure 13: Kitting area with empty fixtures
(Source: authors’ picture).
Empty fixtures for kitting are put wherever
space is available. Above the entire area is a
moveable overhead crane, attached to the
shelves running at the sides. The area can be
described as somewhat messy and irregular.
Installment of new hardware attached to the roof
can be problematic because of the moveable
overhead crane. Installation can also be
problematic at the sides because of the shelves.
6.1.2 Kitting Operations
The kitting is done by washing operators. The
operators receive their instructions through an
order card printed in an office adjacent to the
washing operation. The printing of the
instructions are done the night before and is
described by operators and the workshop
foreman as tedious and time consuming.
34
Instructions include a root card, a picking list
and a receipt card. These are put in a plastic
folder and follow the motor throughout the
entire assembly group of processes. The time
taken for the printing is stated to be somewhere
between 1 and 2 hours. There is a small
workstation at the kitting area where the
operators can put the order cards.
When the kitting is done, the kits are moved by
forklift to the washing area. If the queue to the
washing area is full the fixtures stay at kitting
until an empty spot is available. Kitting can also
be put to a stop if there is a material shortage.
Normally, two persons are assigned to kitting
and washing operations for the CA motor. The
operators state that they see kitting as a
preparation for the washing operation. This is
also true for the logic in AX where kitting does
not “exist”. The washing area is the area in
which the operators usually reside.
6.1.3 Washing Area
The pre-washing area is U-shaped with a pre-
washing queue with rollers on the left side, seen
in Figure 14, and rollers for collecting empty
fixtures on the right side seen from the truck
aisle. Between these rollers is an empty area.
The rollers are connected to a safety barrier that
is put up around the closed-in washing area.
Inside the barrier, rollers carry the fixtures to
either the washing process or bring empty
fixtures outside. The pre-washing area can be
described as roomy with many possibilities for
hardware placement. The pre-washing queue
can hold a maximum of three washing fixtures.
If there are more kitted motors they have to wait
in the kitting area, effectively making the
washing queue the bottleneck of the two
processes.
 CASE STUDY MllP: SITUATIONAL ANALYSIS

Figure 14: Pre-washing queue with automated

rollers (Source: authors’ picture). Figure 15: Assembly area (Source: authors’
picture).
6.1.4 Washing Operations After pre-assembly the motor is lifted to a
special working station for assembly and then
After the automated program is completed the rolled out on a small rail to a queue. Assembled
kits are dried by the workers at a drying location. motors are brought through an automatic gate
After this step, the motors are moved to a through this queue adjacent to the testing area
cooling station and then directly to the assembly (see Figure 16). The rollers used for
area through rollers on a rail. The plastic folder transportation have some free room at adjacent
containing instructions are put in a numbered sides and free room next to the wall inside the
rack attached to the wall when washing the assembly area.
motor.
Today, reporting is done collectively for all
washed motors at the end of the day. Because of
this, the actual end times of the washing
operation are not correct for each separate motor.
For calculating accurate lead times, a manager
at MOE, states that MllP wants to obtain the
correct information (Personal communication,
2016-02-17).

6.1.5 Assembly Area

The assembly area, seen in Figure 15, is a
closed-off area where workers manually
assemble motors. Motors are pre-assembled on
rollers adjacent to the entry from the washing
area. If there is no available space the motors
wait at rollers in an automated queue in front of
the washer.
Figure 16: Queue for assembled motors. Yellow
rollers are on rail (Source: authors’ picture).
6.1.6 Assembly Operations
Assembly is done manually by following
instructions in the plastic folder that follows the
motor. When assembling, assemblers also write
down measurements of specific parameters for
use in the motor testing operation that comes
after assembly. Assemblers report several

35
CASE STUDY MllP: SITUATIONAL ANALYSIS

motors at a time as finished when time is

available. This means that the end time of the
process in the system is not a true value. The
assemblers describe the reporting of assembled
motors as a time consuming task that interferes
with the regular tasks in the work shop.
The assembly operation also involves mounting
of the RFID transponder and registering the
motor with RFID. This is done on a computer
by the assembler. The motor information is
inserted into HPS which writes this to the
transponder through a RFID writer. The
computer is not adjacent to the working station
of the assembler.

6.1.7 Motor Testing Area

The two testing chambers for the CA motor,
which can be seen in Figure 17, are closed
rooms right next to the assembled motors queue.
The rooms are outfitted with safety glass and
have a lot of metallic components inside. In
between the chambers is a control room with
computers and testing software. During testing
the rooms are closed because of the high
pressure that is obtained. Because of issues
regarding safety, the manufacturer of the system,
Seifo, needs to be contacted if installation is to
be done inside the testing chambers.
Outside the chambers are small work stations
with fixed rollers for placing the motor, an
overhead crane for moving the motor inside the
chamber and a toolbox on an adjacent wall.
Entering and exiting from the test chambers is
done through the same gate. When moving the
motor, operators move freely around the fixed
rollers. The area outside the chambers can be
described as tight and problematic for installing
new hardware, since the workers move around a
great deal and the equipment on the overhead
cranes are hard to attach hardware on.
Figure 17: Area outside of testing chambers
(Source: authors’ picture).
6.1.8 Motor Testing Operations
To move the motors to and from the test
chambers the worker uses an overhead crane
(the blue crane in Figure 17). Inside the chamber
the operator fixates the motor on the test
platform.
In the control room between the testing
chambers the operators can oversee and run the
tests. In this room, information from the motor
checklist in assembly is inserted into the test
software. This room does not have access to
Internet. Operators insert information to the
testing software that is already available on the
transponder, which they regard as double work
or time consuming. Several operators thus state
an interest in attaining information on the RFID
transponder to the testing software for work
optimization and shorter setup times. The way
of manually inserting information is stated to be
particularly troublesome when production rates
are high, as the operators need to keep up a fast
pace of working.

36
 CASE STUDY MllP: SITUATIONAL ANALYSIS
6.1.9 Painting Area
The painting area starts where the motor carrier
is left for the AGV to pick up. At this area, three
RFID antennas are mounted on a pick-up station
seen in Figure 18.
Figure 18: Pick up station for AGV (Source:
authors’ picture).
When motors have been picked up, the AGV
drives through a large gate leading to the paint
shop. Within the painting area the AGV has a
large designated area where humans or objects
should not be located. The AGV follows a
programmed route for its operation and
communicates with HPS about e.g. processes
and space availabilities.
6.1.10 Painting Operations
A motor ready to be painted is put on a custom
cargo carrier and left in the pick-up spot by the
testing operator. Every motor is identified by the
RFID transponder attached to the motor through
the antennas at the pick-up station. This setup
sends information on the motor id to the
painting system to start the desired paint job. In
HPS the motor id is linked to the correct paint
job, including color, corrosion class and
different process steps depending on the motor.
The operator also has to consider the status in
the paint shop and the planning when the motor
is put in painting queue within the HPS. The
painting is done autonomously by the painting
system. When the painting is done the painted
motor is left in designated spots at the packing
area.
The paint shop software is handled through an
external consultant in Sweden called Midroc
37
and the RFID setup, including communication
with HPS, is handled through another external
consultant and supplier in Germany called
nofilis. Wolfram Keil at nofilis (Personal
communication on telephone, 2016-04-20)
states that it is possible to send signals to both
the Midroc system and another server
simultaneously. However, since two separate
consultants are involved this could prove to be
somewhat time consuming to design and
implement.
6.1.11 Packing Area
In the packaging area the motors are placed on
predetermined outlined places based on motor
type and available space. The motor enters the
packing area through the large red gate seen in
Figure 19. Motors that are not correctly painted
are sent back from the packing area through the
same gate.
Figure 19: Exit gate from painting area (Source:
authors’ picture).
6.1.12 Packing Operations
Packagers put the motors in boxes and place
these in a special adjacent area for forklift
collection and deliver to storage. The forklift
drivers then report the shelf place and the motor
as completed for delivery. Some CA motor
variants are placed on special pallets for storage
in the packing area. These motors are reported
as completed by the packagers. Normally 1-2
packagers are assigned to packing the CA motor.
Connected to the painting process and HPS is a
display that shows the packagers the motor type
and where in the painting process the motor is.
One of the packagers at the station mentions that
CASE STUDY MllP: SITUATIONAL ANALYSIS
this information gives him the ability to sub-
optimize and prepare the necessary equipment.
6.2 Motor Accessories
As described in 5 Current state, two general
value streams exist for the CA motor. The VSM
for CA motors with accessories follows the
structure of the previously mentioned VSM,
seen in Figure 10 with the addition of accessory
assembly at key points. The assembly of
accessories are added at the processes testing,
painting and packaging seen in Figure 20, and
will thus be described from that standpoint.
Figure 20: VSM for accessories (Source: Compiled
by authors with input from the assembly group
manager at MllP).
The flow for assembled accessories consists of
three variants that can be combined in different
ways depending on the CA motor type. The
motors are first tested without assembled
accessories. If choke valves are to be attached to
the motor (MDA valves in the figure), this is
done after the test. The motor is then sent back
for additional testing of the valves. Motors can
also be sent directly to accessory assembly from
testing, with or without assembled valves, and
then sent into the painting process. As a third
variant some accessories require assembly at the
packaging process. All additions of accessories
are added in the same area. Leading to that area
is a gate that can be seen in Figure 21.
38
Figure 21: Gate to accessory assembly. (Source:
author’s picture).
6.2.1 Motor Relabeling
There exists an exception to the identity
labelling of CA-motors. Some motors are
relabeled because of modifications made to
them after they are assembled. Adding certain
accessories changes the variant of motor in AX.
This means that a relabeling of the motor
identity is done, where the motor gets a new
production number. As an examples of this is
the assembly of two motors built together to one
tandem motor. Consequently, two motors going
into the accessories assembly come out as one
new variant. In a process visualization this may
look like two motors disappearing with a new
previously unknown motor appearing instead.
6.2.2 Accessories in AX
As described by the assembly group manager at
MOE (personal communication, 2016-02-17),
at the start of an order, the order planners are
aware and plan for the eventual assembly of
accessories to a motor. However, in AX logic
there exist two successive article numbers for
the same order. In the initial article number the
motor is seen as a motor without accessories,
regardless of the actual accessories that might be
linked to the order. This article number is in use
from kitting to testing. In testing the first article
number is switched out and the motor is given
another article number which points at the motor
with accessories. The reason for this is stated to
be based on the testing operation. It seems to be
cumbersome for the operators to find which type
of motor is being tested using the article
numbers for motors with accessories. This is
because the large amount of article numbers that
exist for this group.
 Case study miip: Rfid system design

7 CASE STUDY MIIP:

RFID SYSTEM
DESIGN
Since MllP is used as a case study for the research questions, a specific
framework for how the localized implementation is designed is needed. This
means specifying all relevant results from both the data collection phase in
Mellansel and the results from the theoretical framework and linking them to
the case study. The result is a conceptual design that acts as the basis for
implementation.

39
CASE STUDY MllP: RFID SYSTEM DESIGN
7.1 RFID System Design
As a foundation to the RFID system design at
MllP, a set of parameters was compiled
consisting of design options, constraints and a
specification of requirements. From these
parameters, a design based on the value stream
and later the physical location was developed.
Hardware selection was set by the limitations at
each physical location. A risk assessment was
also compiled in the form of an Ishikawa
diagram to recognize the risks before the
implementation was carried out.
7.1.1 Design Options and Constraints
During the design of the RFID solution,
consideration was taken to where the start and
end points for reporting processes were. This
was important to focus on to make future
migration of the RFID signals to an enterprise
or production system possible. When creating
the design on workstations where operators
could be affected from the implementation, the
aim was to avoid an increase in workload.
Because of this, collaboration with the operators
was a crucial part of the design process. Finding
an optimal solution meant that the operators’
opinion was taken into account as an important
factor for the final design.
Some design choices were made that somewhat
differed from the initial VSM. Kitting and
washing were initially seen as separate entities
to measure cycle and waiting times on but were
united into one process in the VSD. The
reasoning behind this is that kitting can be seen
as an initial step to the washing process.
Responsible operators work on both stations but
consider themselves washers and the logic from
AX has not previously separated these two
processes. This was also discussed with a
project manager for the reduction of lead time at
LOG (personal communication, 2016-04-04)
who agreed with the opinion of seeing the two
processes as one.
7.1.2 Design Delimitations
The testing operation of CA motors is managed
through two separate testing chambers as
40
described in chapter 6.1.7. Since the testing
chambers contain a lot of metal surfaces, it is
likely that RFID signals are reflected which
might affect the readability by either amplifying
or blocking the signal. To evaluate the signal
readability inside the testing chamber, the
implementation done through the case study
will only include one of the chambers. If the
implementation works sufficiently it is
suggested that MllP copy the solution and
implement it in the other chamber as well.
Another delimitation not considered in the
system design is that some motors change
during the assembly process. This means that
the tandem gets a new production number but
still consists of two motors. There are also
examples of rare changes during production, i.e.
when a motor is relabeled but this exception was
not taken into consideration in this
implementation.
7.1.3 Hardware Selection
The choice of suitable hardware for the
implementation was a collaborative effort made
together with the CoC for RFID. The choice of
hardware is limited by Bosch regulations. The
role of the authors in hardware selection is thus
in choosing between a predetermined set of
products whilst acquiring recommendations and
experience in this area from the CoC.
The Bosch standard of an RFID system setup
consist of antennas, readers connected to a
server with a middleware called Crosstalk,
which converts the RFID signal into a signal
suitable to other software systems. Four
different types of reader were selected based on
the functionality they provided. These were
designed to function as gate reader, meaning
they were designed for gates where motors pass
on forklifts or other vehicles, single point
readers, where a read can be obtained from a
specific point the object passes, wide range
antennas with an external reader, and mobile
scanners for manual reading of transponders. A
brief specification of the selected hardware is
presented in Appendix 4.
The hardware was selected based on the factors
such as physical environment and working
 CASE STUDY MllP: RFID SYSTEM DESIGN

routines on the different locations. The selection Table 3: Results from the experiment.
of placement and chosen equipment was an
Transponders Pass
iterative process since a decision of equipment %
tested test
effected the physical placement and vice versa.
Experiment 1 5 2 40%
7.2 Hardware Testing
Experiment 2 5 5 100%
One issue mentioned among MOE workers was
if the RFID transponder could pass through the
washing process without falling off. A test was The experiment showed that if the attachment of
thus set up with the aim to investigate how the RFID transponders is moved to a station before
RFID transponder should be attached to the the washing operation, it will need pre-washing.
motor to pass the washer without any incidents.
The involvement from the operators in the test
The test was done in two parts with five test runs was to remove the transponder after the motor
for both experiments. A sample size was chosen had gone through washing. The operators also
together with a foreman at MOE, to make sure orally commented the results on how firmly the
that the test did not disturb assembly operations. transponder was attached or if problems had
The first experiment involved attaching the subsided.
RFID transponders on a motor component
without any pre-washing of the surface. In the
second experiment the surface on which the
transponder was attached to was pre-washed
with technical petroleum. The thesis group
manually attached the first three transponders.
This was done to show and explain attachment
instructions to the operator. Visits were also
made to workstations continuously during
testing to make observations and talk to
operators about the results. The result from the
test is displayed in Table 3. In both experiments,
the motor component with the RFID
transponder attached was sent through the
washer on a standard washer pallet. After the
washing operation the transponders were
inspected and if they still were securely fixed to
the motor component they were counted as
eligible and as a passed test.

41
CASE STUDY MllP: RFID SYSTEM DESIGN

7.3 Specification of Requirements SAP Requirements

The specification stands as a culmination of the  Reading point for RFID in workshop
design options and restraints, delimitations and should match reporting points in SAP.
hardware selection restrictions and testing
 Information from RFID solution should
results. Here, the results from the situational
be in SAP compatible format.
analysis in relation to design are presented as
desired parameters to achieve. The section can Antenna Mounting Requirements
be seen as a summary of all design factors from  Transponders should be fully readable
the situational analysis and other aspects taken in the shop floor environment.
into consideration when forming the design of
the RFID implementation at MllP.  Placement should allow for process
start time and end time to be acquired.
Important Functionalities
 The installed hardware in the
 Track lead time production environment should have
 Speakable real-time monitor minimum effect on operator’s
workplace and working routines.
 Reporting signals matching what is
needed for SAP Communication
 Increase transparency of assembly flow  RFID signals must go through
Crosstalk.
Monitor User Requirements
 RFID signal must be able to connect to
 Track lead time for specific CA motor
subsystems in various cases.
in real-time.
Non-Functional Requirements
 Monitoring should be intuitive to use
and understand.  Hardware placement must be installed
without effects on safety or working
 Trustable and accurate data on motor
environment.
movement through value stream.
 Hardware should be chosen in
Manufacturing Operator Requirements
accordance with Bosch
 Solution should be easier to operate recommendations.
than today’s process of reporting.
 Scanning should be intuitive and non-
intrusive on the operators other tasks.
 Operators should be involved in the
development of the solution.
 Reduction of papers attached to the
goods.
 Reduction of delays and manual errors
in reporting.
 Operators should receive clear
instructions on RFID system and its
use.

42
 CASE STUDY MllP: RFID SYSTEM DESIGN

7.4 Value Stream Design

In the VSD for the implementation of RFID
seen in Figure 22, eight processes will be
measured with RFID. These include; (1) kitting
and (2) washing as one process, (3) assembly,
(4) testing, (5) paint pickup, (6) packing area
entrance, and finally (7) the motor being ready
for shipment. Assembly of accessories (8),
which can have varying value stream flows
depending on motor variants, will also be
measured. This design can be seen in Figure 23.
Packaging operations (7) consist of two separate
end stations and include manually reporting of
the object being ready for shipment. Electronic Figure 23: VSM of the accessory flow (Source:
information is sent to a database from all RFID Compiled by the authors).
locations as described in the VSD. This
information consists of the motor id, the 7.5 Design at Locations
location and a timestamp for when the event was
registered. The design is made for two flows for the RFID
transponder; one flow when the transponder is
The VSD has been designed to measure the in a plastic pocket containing the receipt card
variables cycle time and waiting time for and and picking list for the motor (kitting to
between processes. This is achieved by using a assembly), and another flow when the
total of ten RFID antennas stationed at positions transponder is attached to the motor (last step of
more thoroughly described in the next section. assembly). This design choice was made to
circumvent problems discovered through testing.
Successively, this means that the first flow is not
automatic and requires the active involvement
of operators holding up the plastic pocket

Figure 22: VSD for the implementation of RFID. Red boxes symbolize RFID (Source: compiled by authors).

43
CASE STUDY MllP: RFID SYSTEM DESIGN

containing the transponder towards a RFID transponder against the antenna. This also
reader. Work instructions to these processes signals the end of washing operations.
have been created and can be seen in Appendix
6. The second flow, however, is automatic and
does not require the active involvement of
operators to function. Logic for how Crosstalk
should interpret the signals is also a result from
the case study that is presented in its concept
form in Appendix 7.
The first workstation is equipped with a
computer and equipment for writing the
information for the motor to the transponder
through a RFID-writer.
The first antenna is located at a workstation in
the kitting area, seen in Figure 24. This means
that the transponder will have to follow the
motor in a plastic folder from this station.
Operators manually scan the transponder when
kitting is started by holding up the transponder
against an antenna.
Figure 25: RFID reader installed in the pre-
assembly station (Source: authors’ picture).
The third antenna is located inside the assembly
area over a conveyor belt leading to the testing
area seen in Figure 26. The antenna is attached
to a fixture one meter over the conveyor belt,
facing down on. The scan is automatic when the
motor passes under the antenna. This signals the
end of assembly operations.

Figure 24: RFID reader installed at the kitting

location (Source: authors’ picture).

The second antenna seen in Figure 25, is located

inside the assembly area directly adjacent to a
gate leading to the washing area. The antenna is
fixed to a wall close to where the receipt cards
for the motors are put when being worked. The Figure 26: RFID reader installed on a fixture above
assemblers manually scan the transponder to an automatic transportation belt out from CA
signal that assembly is started by holding up the motors assembly (Source: authors’ picture).

44
 CASE STUDY MllP: RFID SYSTEM DESIGN

The fourth and fifth antennas are located inside

the testing chamber seen in Figure 27. The
antennas are attached to opposite sides of the
chamber wall, pointing down on the motor at the
test bench. A signal is sent when the motor first
is registered by both antennas and when the
antennas no longer receive a signal from the
transponder. This signals the start and end of
testing.

Figure 29: RFID antenna with built-in reader

Figure 27: RFID antennas installed inside testing
chamber 1 (Source: authors’ picture).
The sixth and seventh antennas are located at the
pick-up station added to the existing antennas at
that location. The installation can be seen in
Figure 28 below.
installed above the gate to accessories assembly
(Source: authors’ picture).
The ninth installed antenna is located over the
gate between painting and packaging. The
situational analysis showed that motors
sometimes come back from packaging, thus
direction detection in the gate was also needed.
A similar solution to the accessories gate was
installed, and is shown in Figure 30.

Figure 28: Installation of RFID readers in AGV

pick-up station (Source: authors’ picture).
For the accessories assembly, a gate reader is
used. A reader to detect direction was selected
to show when a motor is entering or leaving the
accessories area. The antenna is hanging above
the entrance to the assembly station, seen in
Figure 29.
Figure 30: RFID antenna with built-in reader
installed above gate between painting and packing
area (Source: authors’ picture).
The final read-station is located at the packaging
area as an end of the value stream of the

45
CASE STUDY MllP: RFID SYSTEM DESIGN
assembly operations. The antenna reader is a
mobile reader for manual scanning. This
antenna was not implemented during the case
study but the hardware was purchased and the
personnel were informed of a future
implementation on that station.
7.5.1 Workshop Results
The workshop held with the operators
highlighted some potential problematic areas
and potential secondary functions the RFID
system could realize. The suggested wishes for
improvement can be described as;
 Visual signal when a transponder is
read for security
 Receiving a picking list when scanning
transponder
 Receivnig constructional drawing
when scanning transponder
 Seeing number of motors that has been
done in one day.
 Conveying information on transponder
to testing chambers
 Abnormalities not obstructing the
RFID system.
The full results from the workshop can be seen
in Appendix 8.
7.5.2 Suggested Design Improvements
The suggested improvements are design choices
that for different reasons were cut out from the
final design, but are considered the best solution.
The optimal implementation design would be to
achieve automatic registration through the
entire RFID system. This would mean that the
RFID transponder is attached at the first step of
the process flow for assembly and registered
without any effort from an operator. As a result
of the fact that the physical placement of the
transponder interferes with specific assembly
operations, further investigation of a new
placement or transponder type is suggested as an
area for future improvement. This also means
that the attachment of the transponder will have
to be moved from the assembly to the kitting
46
area or maybe even to the last step in the process
flow for manufacturing operations.
A visual signal of a transponder being read is
already built into some of the antennas installed
and the mobile reader. However, the antennas
installed at the testing chamber, over the gate to
the accessories station and between the painting
and packing area do not visually display a signal
when successfully reading a transponder. A
suggested improvement on the design would
thus be to add a system for signaling reads into
the design.
The suggested points for receiving a picking list
or a constructional drawing when scanning a
transponder should be more thoroughly
investigated before considering it a suitable part
of the design. It is believed by the thesis group
that these points would need some kind of
portable display suitable for industrial
environment e.g. a tablet.
The point on conveying information on the
transponder to the testing software system is
something that the thesis group has investigated.
The information gained from this investigation
showed that it was difficult to realize this
suggestion without the direct involvement of the
testing software supplier, Seifo.
Certain exceptions in how a motor passes
through the assembly line was mentioned in the
workshop. The impact on the RFID system
installed by the thesis group is that some motors
would get registered on multiple occasions at
specific antenna read points. The drawback to
this is that the monitoring system cannot
indicate the reason behind multiple reads. The
issue was discussed but omitted from the design
mainly because of time delimitations. This is,
however, not perceived as a big issue since the
last location of the motor will still be shown in
the monitoring system. Should MllP wish to
improve on the design, there is always the
possibility of adding another point for manual
registration of exceptions. This could be done
with a mobile reader. According to the operators,
these exceptions pass through roughly the same
area.
The pick-up area for the paint shop where RFID
antennas already existed and used for the paint
 CASE STUDY MllP: RFID SYSTEM DESIGN

shop were planned to be used in the initial

design. Because of the complex situation
involving two different external consultants and
nearly no internal know-how, the natural
solution of using existing readers was not
possible in the case study. However, this was
investigated and according to Wolfram Kiel at
nofilis, who handled the previous installation of
RFID at MllP, the signal could be used but
needed special configuration. One of the
problems was also that the Crosstalk version
used in the paint shop was different from the one
used in the case study implementation.

47
CASE STUDY MllP: RFID SYSTEM DESIGN

7.6 Dashboard Design communication, 2016-01-28) that if the signal

The real-time monitoring tool Kibana was
provided to the thesis group as the tool for
visualization of RFID events. Kibana is a web-
based data visualization platform that provides
the user with the ability to display data in
different graphical visualizations. The
visualization can be customized and combined
in a personalized dashboard to fit the specific
needs of the user(s) (Elastic 2016). Events are
defined by Bosch as any kind of activity or
action in the process that is suitable for
monitoring or controlling e.g. a pallet of
material passing through a gate. Events can also
be used as triggers for other activities (Bosch
Group, 2016c).
Kibana can be used to verify that signals from
the RFID system work. It is also stated by the
supervisor at MllP, Anders Palm (personal
works in Kibana, it will work in SAP as well.
A conceptual image of the real-time monitor
design can be seen in Figure 31. The concept
presents counted motors on different processes
in boxes in the top and then visualize the flow in
a time-line chart below. On the time-line chart
each tab displays an operation, and the colored
dots are counted objects, or in our case, motors
passing through a read point signaling that an
operation is completed. In this way it is possible
to follow a motor through each step and get an
overview of each process.

Figure 31: Concept for real-time monitor design (Source: Compiled by authors).

48
 CASE STUDY MllP: RFID SYSTEM DESIGN

7.7 Risk Assessment instructions and validate them with the users,
other countermeasures were seen as valid
A risk assessment for the implementation not
through a thorough mapping of the operators
working properly was compiled. This was used
processes. Countermeasures to (2) unregistered
to increase awareness of potential risks which
transponders, were considered as performing
were taken into consideration during the
tests on the tag in live environment and having
execution of the implementation. Identified
consistent contact with the software supplier
major risks for the implementation not working
and CoC, a transponder with sample
properly can be seen in Figure 32 and were
information from a motor was also sent to CoC
specified as; (1) Effects on external
for inspection. Countermeasures to (3) incorrect
environment from the RFID system, where the
measurements, were similar to (2) unregistered
system could potentially affect other work
transponders, with the addition of having
routines or intrude on equipment usage, (2)
validated measuring points with MOE at several
unregistered transponders, related to hardware
occasions. Countermeasures to (4) Software-
and software functionality or installation but
related issues, were seen as having consistent
also human interaction, (3) incorrect
contact with nofilis and CoC before and during
measurements, via the RFID design or unknown
implementation and by following the GS1
variations or errors in data, (4) Software-related
standards for setting up the system logic.
issues, such as conflicts between systems, and
Countermeasures to (5) personnel-related issues,
lastly (5) personnel-related issues, such as
were seen as taken into consideration through a
resistance to change, unclear instructions of use,
constant contact with the operators and
or unknown sub-optimization of work routines
communicating a clear statement of the
among personnel.
objectives and delimitations of the
Countermeasures to (1) Effects on external implementation, and also through the produced
environment from the RFID system, was work instructions.
considered to be constructing clear work

Figure 32: Ishikawa diagram of assessed risks associated with implementation at MllP (Source: Compiled by
authors).

49
CASE STUDY MllP: RFID SYSTEM DESIGN

50
 Case study miip: Implementation

8 CASE STUDY MIIP:

IMPLEMENTATION
The case study at MllP was done to gain empirical results to compare with the
theoretical framework. The importance of the implementation done at MllP,
seen from the standpoint of the research questions, was thus not to only get a
physical installation at the plant but also to gain knowledge and an
understanding of all the steps necessary for an implementation of RFID in
internal logistics. This section describes the different phases the case study
progressed through and the findings of each phase. The chapter ends with a
suggestion of continuous work and an evaluation of the implementation.

51
CASE STUDY MllP: IMPLEMENTATION

involvement was a factor that was considered

8.1 Project Scoping
important by the authors of this thesis. Involving
The scoping of the project from the perspective the personnel at the level closest to the system
of Bosch Rexroth, was in many ways defined by later played a role in achieving acceptance to the
MllP. The objectives and aims from the design.
perspective of MllP were to use RFID to
The system design was mainly focused on the
monitor movement of CA motors in real-time
creation of the design connected to the VSM.
through parts of the the value stream. The
This meant that the design of the system was
sponsor for the project knew about the
done to measure the cycle and waiting times of
possibilities and limits of RFID equipment, but
processes as accurate as possible. This meant a
there were definitely some stakeholders within
great focus was placed on defining where the
the organization with unrealistic expectations.
processes starts and end. A major part of this
One example is that the manufacturing
work was done together with the project
engineers expected the system to be directly
manager for the two week lead time. Her
connected to the existing enterprise system AX
involvement in this phase was natural because
and through that, switch all manual reporting
of the direct connection between using our
with automatic reporting from the whole value
RFID solution when tracking lead times and her
stream. These expectations spread on the shop
understanding of the measured processes.
floor and ended up in some disappointments
among the operators. The system design phase included the selection
of hardware for the RFID system, which was
In the beginning of the project, one part of the
shortened considerately through the
mapping of the processes was to communicate
collaboration with CoC. This saved the project
valid measuring points in the value stream for
valuable time. Nevertheless, the complexity of
the concept through visualizations to
selecting hardware was a major factor in the
stakeholders. This communication of ideas
project at MllP and cannot be neglected as a
through visual means was necessary to mediate
process in an RFID implementation. The CoC
the scope of the implementation and discuss
was strengthened by empirical knowledge of the
how the system could be used and designed.
equipment from other installations. A normal
hardware selection as the authors of this thesis
8.2 Analysis of the Existing System
experience it would be very demanding because
Collected data on the existing system was of the requirement of technical knowledge on
necessary to analyze to be able to come up with the hardware.
valid design parameters and a specification of
requirements. For example, the analysis of the 8.4 Installation
assembly group of processes showed certain
During the installation phase, the authors of this
limitations to the RFID system that were linked
thesis effectively took on the role as project
to a specific assembly operation of the CA
managers. This meant that all aspects of the
motor. Analysis also showed that one process
installation was managed through or by the
could be seen as a joint process which simplified
authors solely without any outer guidance. This
the system design to not include unnecessary
meant setting up the installation guide to the
operations. The analysis in its whole, set the
craftsman handling physical installation, setting
framework on which the system design was
up a time schedule and handling all technical
built on for the specific RFID system
details.
implemented at MllP.
In terms of designing the installation guide, the
8.3 System Design thesis group made instructions on physical
When designing the RFID system a great deal placement of hardware and a list of all the
of consideration was given towards the affected wiring needed at all locations. Actual
operators and their working environment. User installation of hardware, and communication
and electrical wiring was outsourced to a local

52

company named Toriro. To make sure
everything was succeeding according to plan,
the installation was followed up almost on a
daily basis through inspection rounds together
with the contracted craftsman. A slight
drawback on the installation was caused by a
late delivery of connection cables for a specific
group of RFID-readers. This mainly postponed
the testing phase, since everything but the
connection to the affected RFID-readers could
be installed while waiting for the delivery.
The physical installations of RFID antennas at
all locations were first made with temporary
fixtures where quick changes of angle or height
were applicable. Due to the authors’ lacking
practical knowledge on how an installation in an
industrial environment is carried out, the set up
was designed to leave room for adjustments.
After a testing and optimization phase the setup
was fixed and finalized. At the testing chamber,
an RFID-reader was installed adjacent to the
antenna needing the connection, with the design
of being available for further installation of an
additional set of antennas.
After the physical installation of RFID hardware
was completed, each setup was connected to the
local network system. The first step in this setup
was to order IP-addresses via the IT support
department at MllP and assign an IP-address to
each location with installed hardware. After this
connection to the network was established, the
thesis group could connect to the software of the
RFID readers for setup and tweaking via the
provided IP-addresses. The bundled software
for the RFID-readers was used to configure
power of the antennas to tune in the reading field
of each antenna. Since the physical environment
at each location was different, the settings of
each antenna differed somewhat to achieve
good success rate in reads. The configuration
was done explorative, which meant testing
settings out and modifying until satisfactory
read results were reached.
During this process, some questions on safety
aspects were brought up by personnel. The
safety aspects were related to levels of
electromagnetic radiation. Safety was deemed
satisfactory by MllP based on special data sheets
obtained through the suppliers by the thesis
53
CASE STUDY MllP: IMPLEMENTATION
group. The data sheets contained general
information and safety details on the hardware.
The hardware has also been pre-selected by
Bosch to meet the European standards and
regulations for human exposure to
electromagnetic fields. Despite this, the
recommendation of the thesis group is that MllP
is to carry out a more comprehensive
observation of radiation through a specialist
after everything is installed. To meet this end,
the thesis group initiated contact with the
responsible person and provided the person with
both documentation and contact information to
the hardware supplier.
The installation in the testing chambers was a
previously untested environment for RFID
implementation according to the CoC. The
testing chamber environment had several
potential reflection surfaces because of all the
metallic equipment. These reflections can both
disturb and amplify the RFID-antennas read
signal. As a result, the tuning in this area was
more demanding and was in need of more
testing than the other stations. As a result, the
installation was made in only one of the two
testing chambers to make sure that the solution
was working satisfactorily before implementing
it in both testing chambers. To be able to adjust
the antenna placement and direction, a specific
lockable multilinked fastening was attached to
the antennas inside the testing chamber. This
gave more room for tweaking and optimization
than in the other installations.
A handheld RFID reader was the selected
solution for the packing area. Since the irregular
work situation in the packing, mostly depending
of different motors being packed and sent for
stocking through different gates a manual effort
to finish the value was chosen. The solution was
formed together with the managers of the
packing workers to interfere as little as possible
with the established working procedures but
was not implemented since hardware had not yet
arrived at the end of the thesis. This was added
to the open point list seen in Appendix 9.
8.5 Software Design
The installation of the equipment also meant
setting up the software environment to send a
CASE STUDY MllP: IMPLEMENTATION
signal to the digital software systems. Since the
information was to be sent over Internet for
presentation in Kibana, the system needed a
database to store and retrieve data from,
accessible via Internet. To prepare the system
for future modifications, the system needed to
be set up according to the GS1 standards and
logic that Bosch follows. The logic handled
concepts such as relaying information on the
physical position of the hardware i.e. the
checkpoint station, the process type the read
object was undergoing and if the object was a
work in progress. This logic is presented in
Appendix 7.
The software design consisted of both
configuring Crosstalk, and designing the RFID
and Crosstalk logic described in the previous
chapter. Software design also includes the
design of the dashboard seen in Kibana.
Software setup, including setup of database,
software logic according to GS1 standards and
setting up the server for the software
environment, has mostly been handled in
collaboration with CoC. Steps handled by the
thesis group has included the order of correct
services via Bosch, external consultants and
setting up the logic for the process steps
including GS1 standards.
8.6 Testing and Tuning
The testing and tuning process was the phase in
the case study where a validation of the RFID
system was carried out. Results from the testing
phase naturally initiated some tuning to increase
the reading results or to alter some design.
Initial testing was carried out to test design
options. The result from this test is described
under 7.2 Hardware testing. After the
installation of hardware was completed, a
functionality test was carried out to verify that
that the equipment was performing correctly.
The test was carried out by the thesis group. In
the test an RFID transponder was created with
information burnt to the transponder for
simulation of RFID reads in the system. The
transponder was then carried to each location for
testing together with a laptop with access to the
internal network where the software embedded
in the RFID equipment could be accessed. At
54
each location, the thesis group accessed the
hardware-embedded software through Internet
and provided the antenna with the correct IP-
address. The functionality test was then carried
out by checking if the RFID transponder was
detected when carrying it inside the antenna
field. Tuning of the hardware was carried out
until the test could produce correct reads of the
transponder.
A performance test was carried out in the
Kibana environment to check the repeatability
of RFID reads. The test was carried out by
comparing the transponders that had passed
each RFID checkpoint with the reads in the
system.
8.7 Introduction and Training
An introduction of the project at MllP was
presented to related personnel while taking
which department each user belonged to into
consideration. Operators and manual workers
were conceived as belonging to the level closest
to the system. Here a focus was put on how the
system would affect their working environment
and routines. It was considered important to
point to the fact that the system would not be
measuring individual workers but instead the
motor itself. A great deal of effort was also put
on discussing how the system could increase the
working conditions for workers. Another
important topic that was brought up was the
expectations among the workers. Here, the
thesis group clarified what the system could
achieve after this implementation.
Foremen were introduced to a more finalized
version of the design. The thesis group
explained how the real-time monitoring system
could be used to gain more transparency of the
entire group of processes and a clarification of
expectations and what the outcome would be
was also the topic on these introductions. The
concept on how information would be shown in
Kibana was presented to collect feedback and
verify if the concept was perceived as
reasonable. Departments where the
implementation did not directly interfere with
their work received a general introduction of the
project to be kept up to date with the undergoing
changes in the plant. For supervisors and

managers, the introduction was focused on the
monitoring tool and suggestions on how to
proceed in different areas to recoup all possible
benefits of the implementation were discussed.
The evolution of the system was considered an
important part of the thesis and was discussed
on all introductions. The motive behind this was
partly to show potential improvements but also
to underline that the implementation done by the
authors of this thesis should be seen as a first
step in a greater implementation. With this
motive, the launch of the system was done with
all the personnel knowing the possible
improvement areas but also the state of the
system at the leave of the thesis group.
The personnel handling the operation of writing
the information to the RFID transponder
received training and written instructions. The
instructions were handed out to the personnel
and can be seen in Appendix 6. Instructions were
designed by the thesis group to simplify the
processes to the smallest possible operation.
They were designed with written descriptions of
each operation complemented with pictures
when applicable. The instructions also included
contact information to IT support and other
individuals who could assist the personnel in
case of errors or if help was needed.
8.8 Continuous Work
The belief throughout the thesis has been that
continuous improvement would play a major
part in creating a system were all possibilities
could be realized. During the work with the
design of the RFID system, many areas suitable
for various improvements were identified. Some
areas for improvement were also firstly
identified and understood when the installation
and implementation was in progress. Because of
the time and personnel delimitations of the
project, the thesis group could not realize all the
identified possibilities. However, the identified
potential improvement areas were still noted
and discussed with related personnel and are
described in this section as a summary of the
thesis group’s recommended actions for
continuous work.
The thesis group perceives the next major step
as the implementation of the RFID system for
55
CASE STUDY MllP: IMPLEMENTATION
reporting of operation start and end times to the
production system and enterprise system SAP.
Before this is done, the system should not be
considered fully implemented since it only
provides visual data. As a result of fully
implementing the system, manual reporting can
be switched to automatic reporting, improving
working routines for personnel and reducing
time taken for performing the reporting tasks.
As a very important added step the reports in
SAP will be values based on real-time data. This
will give the benefit of providing values closer
to the actual outcome of start and end times
which will help MllP in their strive for
shortening lead times. The ultimate outcome of
this is of course gaining an edge on the
competition by providing customers with a
possibly shorter and more transparent lead time.
A critical point for further work is the
investigation of why the insulated transponders
are not showing up in Kibana. This issue could
possibly be related to the fact that two numbers
are written to the transponder which possibly
creates a long string of text that Crosstalk cannot
send to Kibana. Crosstalk registers a read but
cannot send the information to Kibana for some
unknown reason. Since registrations of the
insulated transponders are still being made in
Crosstalk and in the software for the antennas,
this solution is most probably related to software
issues which nofilis are owners of. Consultants
at CoC could possibly help resolve this issue as
well.
Another recommendation for continuous work
would be to implement the RFID system for all
motor types. The assessment of the thesis group
is that full traceability and transparency of the
assembly group of processes cannot be
considered complete until all motor types are
monitored. There are instances where operators
have to leave work on a CA motor to help in
assembly the other motor types. Since the
implemented RFID system does not contain
information on the other motors, the monitoring
system will only show that a stop in production
has occurred and not the reason behind the
occurrence. It should be noted that assessment
of the thesis group is still that high levels of
traceability and transparency of the CA motor
CASE STUDY MllP: IMPLEMENTATION
will be attained through the RFID system.
One examples of a specific situation that could
arise in the RFID system is when problems arise
during manufacturing of the motor. The motor
then returns to the assembly area for restoration
or repair which would not give signals in the live
monitoring system until the motor leaves this
area again. However, the person observing the
monitoring system would not know why the
motor was returning to the assembly area. Thus,
one recommendation would be to add an extra
handheld scanner to the assembly area to scan
these special events as “problems or returned”
which could create a warning message in the
monitoring system to supervisors and managers.
Another identified point for further work was
the questions that arose around safety issues
among some MOE personnel. Although
information on radiation from the equipment
was sent to the person in charge, a
recommendation would be that MllP initiate
measurements of radiation levels to make sure
that all radiations are on recommended levels.
An identified point for development of the RFID
system is the addition of functionality in the
testing chambers. Here the recommendation is
that MllP investigates how the signal from the
RFID-readers inside the test chambers could
automatically provide the testing software with
data. This would improve the working condition
of the operator by removing the time taken to
manually insert data that is stored on the
transponder.
Another identified point for further
development is that MllP installs monitors in
certain stations to show data on incoming
motors, work in progress, planned work and the
outcome of the work during the day. A previous
project at MllP identified a need for a tact
monitor but did not realize the project because
of lacking resources. The visualization system
Kibana can be used to display this type of
information. It is possible to create different
dashboards that display different visualizations
if the information needed varies between
stations. Examples of identified stations for this
are the testing area and the packaging area,
where operators and personnel have expressed
56
an interest in knowing which motors are
inbound to be able to prepare equipment and
procedures. The cost for implementing this
would be low, since cheap monitors can be used,
and the benefit would be that operators could
sub-optimize processes to shorten cycle times.
This would also involve the personnel in the
development, increasing the feeling of
participation and involvement which may
decrease defensive behavior to future
improvement projects.
During the design of the system, a major
continuous improvement point identified was
the potential removal of existing paperwork.
This could be described as a major “selling point”
for the personnel at the shop floor since the
subject was brought up several times during
discussions and workshops. The system
implemented at the end of this thesis does not
remove any actual paperwork but sets the
framework for reducing it if other systems are
interconnected with the RFID system. Scanning
the transponder could provide personnel with
e.g. instructions for the picking list, receipt card
or assemble instructions digitally on a tablet or
monitor. A recommendation would thus be that
MllP analyses potential areas for reduction of
paper work. This improvement has the potential
to reduce cost and time taken for printing papers.
The most critical open points were compiled
into a document, seen in Appendix 9. Since the
system could not be taken into full use before
some of the issues were solved the project was
handed over to a new project manager. The
handover was done orally, but a document with
the status of the open points was used as a
confirmation of the information transference.
8.9 Evaluation
As an evaluation of the implementation, a
review of the previously compiled specification
of requirement was done.
In regard to (1) Important functionalities, the
bullet point Track lead time was considered
partially fulfilled since some small technical
issues were still in effect after leave of the thesis
group. Speakable real-time monitor were
considered functional. Reporting signals
matching what is needed for SAP is considered
 CASE STUDY MllP: IMPLEMENTATION

as needing more investigation since it could not related to the transponder. The transponder is
be evaluated before the rollout of SAP at MllP. technically readable in the environment but not
Increase transparency of assembly flow is sent correctly to Kibana. Placement should
considered fulfilled during testing and will work allow for process start time and end time to be
properly when the technical issues are resolved. acquired is considered fulfilled and validated
with MOE and LOG. The installed hardware in
In (2) Monitor user requirements, Track lead
the production environment should have
time for specific CA motor in real-time is
minimum effect on operator’s workplace and
considered fulfilled when the technical issues
working routines is considered fulfilled since a
are resolved. Monitoring should be intuitive to
change in design was made in collaboration with
use and understand is considered partially
users to achieve this.
fulfilled through the visualizations provided in
the Kibana dashboards but no in-house In (6) Communication, the bullet point RFID
knowledge exist on the software and some signals must go through Crosstalk and RFID
limitations in the software exist. Trustable and signal must be able to connect to subsystems in
accurate data on motor movement through various cases are considered fulfilled since
value stream is considered successful. Crosstalk, which can send information to
several systems simultaneously, is used as
In (3) Manufacturing operator requirements, the
middleware between reader-signal and Kibana.
bullet point Solution should be easier to operate
than today’s process of reporting is considered In (7) Non-functional requirements, The bullet
obtainable if the RFID system is implemented point Hardware placement must be installed
into SAP. Scanning should be intuitive and non- without effects on safety or working
intrusive on the operators other tasks is environment is considered fulfilled since safety
considered partly fulfilled, since some manual issues have been relayed to responsible parties
operations linked to the system exist while other and taken into account in the hardware
stations are automated. Operators should be selection. Hardware should be chosen in
involved in the development of the solution is accordance with Bosch recommendations has
considered fulfilled because through the been fulfilled through the hardware selection
working method of involving the user in the done in collaboration with CoC.
design process. Reduction of papers attached to
the goods is not fulfilled but recommendations
on further work to achieve this are presented in
this thesis. Reduction of delays and manual
errors in reporting is not considered fulfilled
since reporting to SAP is not yet implemented.
Operators should receive clear instructions on
RFID system and its use is considered fulfilled
since work instructions have been produced and
presented to personnel.
In (4) SAP requirements, the bullet point
Reading point for RFID in workshop should
match reporting points in SAP and Information
from RFID solution should be in SAP
compatible format is believed to be fulfilled but
needs validation with an SAP expert.
In (5) Antenna mounting requirements, the
bullet point Transponders should be fully
readable in the shop floor environment needs
further investigation on the technical issues

57
CASE STUDY MllP: IMPLEMENTATION

58
9 FINDINGS AND
INSIGHTS

To be able to make relevant conclusions from the studied literature in the

theoretical framework, and the completed case study, an explanation of the
essential insights was compiled. The results from the case study together with
the findings made in the literature are the keystones that the conclusions of
this thesis will stand on.

59
FINDINGS AND INSIGHTS

facilitate an implementation. This can also

9.1 Theoretical Insights
reduce the risk of workers not accepting the
The findings from the literature review act as the change (Jaca et al.).
link between current research and the results
Studies show that automations of working
found in the case study. The theoretical insights
processes generally focus on automating
gained can thus be seen as a comparison of
mechanical task and not the cognitive tasks of
relevant theoretical findings described from the
the operators (Choe et al., 2015). The theoretical
perspective of the case study and the research
findings suggest that the cognitive tasks of the
questions. This section also supports the thesis
operators should also be included to fully
by giving the study scientific validity and makes
automatize a process (Fasth et al., 2008).
it possible to compare the case study results with
existing theories and studies.
9.1.2 Benefits of i4.0 through RFID
9.1.1 User Involvement Since RFID can be seen as a tracking system for
material, the technology fits well with the ideas
Theoretical findings strongly suggest that
of IoT. An RFID transponder can be given a
consideration must be taken to the fact that a
unique id number which means it can be created
change in working environment affects the
as a digital version of a physical object (Heng,
personnel in an organization. If the workers are
2014; Johansson & Larsson, 2015; Kagerman et
not involved in the change process there is a
al., 2013). Although an RFID transponder in
possibility that they may act defensively (Airo,
itself is not connected to the Internet,
et al. 2012). Involving workers in the process
checkpoints reading the transponder can be.
gives them a better understanding of the need
Thus, the vision for connecting objects to the
and purpose of the change, which gives the
Internet is possible to achieve through RFID
effect that the workers are more likely to adept
(Germany Trade and Invest GmbH, 2015; Heng,
to and accept the changes (Glover et al., 2014;
2014). This could give the benefits of removing
Jaca et al., 2012). Another way of facilitating for
manual labour for reporting objects passing
change is to have a general understanding within
through checkpoints or provide operators with
the organization that changes are necessary and
information on the whereabouts of an object,
important (Kimber et al., 2012). The findings
possibly reducing labour costs and improving
thus indicate that the workers should be
work environment for employees (EPRS, 2015;
involved in all improvement work. This
Lasi et al., 2014; Lee et al., 2014; Kagerman et
approach has been shown to create the
al., 2013).
possibility to develop more open-minded
employees in the long term. (Glover et al.; Jaca Using RFID as a tracking system primarily links
et al.) the technology to the logistic function describes
as part of the smart factory (Kagerman et al.,
Theoretical findings suggest that much of the
2013). More explicitly, one could see the
responsibility of user involvement in a change
potential of the technology in both internal and
process lies on the managers (Glover et al.,
external logistics, e.g. tracking an object inside
2014; Jaca et al., 2012). One vital factor of how
a manufacturing plant or during delivery to
well a change will be accomplished, lies in
customer (Liukkonen, 2015; Kagerman et al.;
communicating the reasons of change to
McFarlane et al., 2003). A higher rate of
motivate the workers participation in the change
identifying sources of error or bottlenecks could
work (Kimber et al., 2012). Using teamwork for
be examples of possibilities that could be gained
change work can lead to a more adaptable
by understanding the logistic flow (Ting et al.,
workforce and facilitation of the
2013). This makes way for organizational
implementation. Furthermore, it has the added
improvements by setting up a more transparent
effect that it creates a foundation for further
industry (Lasi et al., 2014; Lee et al., 2014;
changes (Jaca et al.; Kimber et al.). Merging a
Liukkonen; Kagerman et al.; Ting). As another
change with the existing culture can also
benefit, this information could help in decision-

60

making, thus creating more flexible production
systems. This could for instance fit with the i4.0
goals of increasing flexibility and shortening
development processes (Heng, 2014; Lasi et al.;
Lee et al.; Kagerman et al.). Using RFID on
manufactured objects could arguably increase
the understanding of where to focus resources
and development. One benefit would also be
having more information for optimizing the lead
time. This in turn leads to an increased ability in
meeting customer demand for shorter lead times.
(Lasi et al.; Lee et al.; Kagerman et al.).
One should, however, argue that the technology
in itself does not give the proposed benefits.
RFID only provides information, which means
that some complementary system is needed for
either analysing, tracking, or decision-making
(Zhong et al., 2015). This could perhaps be
solved by the introduction of a CPS that is
mentioned as a big part of i4.0. SAP, which
Bosch Rexroth uses, is perhaps a candidate for
creating a CPS. It should also be noted that just
using RFID technology is not an argument for
automatically achieving benefits, as the research
questions of this thesis is a testament of. A
crucial part for acquiring benefits when
designing its use in organizations wishing to
realize i4.0, is to understand the possibilities and
limitations of the RFID technology (Ting et al.,
2013; Zhu & Cao, 2014; Zhu et al., 2012).
61
FINDINGS AND INSIGHTS
9.1.3 Implementation
An implementation of RFID can be divided into
several steps, such as the model that Ting et al.
(2013) present consisting of; (1) Defining the
scope, (2) Situational analysis, (3) System
design, (4) Prototype testing, (5)
Implementation, (6) Continuous improvement.
It is noticed that a clear objective of the
implantation and a good communication of it to
all stakeholders, is important for the success of
an implementation. The complexity of an RFID
implementation comes from the amount of
variables to consider e.g. existing system,
workers, interaction, correctly designing the
system, choosing correct equipment, and
training the personnel. In an RFID
implementation the success relies on topics
associated with technological, managerial and
social factors which also makes the
implementation even more challenging. (Ting et
al., 2013)
9.2 Empirical Insights
In the case study, the thesis group progressed
through the following steps; (1) Defining the
scope, (2) Analysis of the existing system, (4)
System design, (6) Installation, (7) Software
design, (8) Testing and tuning, (9) Introduction
and training, (10) Continuous work and
improvement. The case study also included (5)
Prototype testing of transponders, which was
done in a previous project, and (3) Mapping of
hardware and software done together with CoC.
FINDINGS AND INSIGHTS
The authors of this thesis consider these steps,
also seen in Figure 33, as necessary in an
implementation of RFID.
Figure 33: Necessary steps for an implementation
of RFID according to the authors of this thesis
(Source: compiled by authors.)
In the case study it became very clear that
several different areas of expertise were
required to achieve a good implementation. This
was also supported by the findings of Ting et al.
(2013). The project team for the case study
mainly consisted of the thesis group. The master
62
thesis project was assigned functions connected
to e.g. data and finance but the assigned people
did not get enough resources, i.e. time to assist
the project. This lead to a situation where the
thesis group had to solve problems attached to
these functions, to keep the project moving
forward. This could be considered as taking
resources from the thesis group and may have
delayed some work. A suggestion from this
experience is thus that RFID implementation
projects on this scale should consist of cross-
functional teams with personnel owning the
processes affected, personnel handling issues on
the related performance metrics, hardware and
software experts, owners of network
infrastructure at the plant, craftsmen handling
installation of hardware, and project
management to ensure the completion of the
implementation. The roles of all individuals
should also be clearly defined as to not create
any confusion or discussion of who does what.
By creating a more cross-functional team in the
future for these kinds of projects, a much more
efficient work flow and more thoroughly
reviewed results could be achieved. It is also
possible that a cross-functional team could
come up with a more effective solution.
A clear objective of why the implementation is
being made is crucial for a good implementation.
As described earlier in this thesis, the aim and
scope should be realistic and also clearly
communicated to all affected personnel to avoid
false expectations. This is also supported by
Ting et al. (2013).
An implementation takes a lot of time in
consideration. According to the amount of
resources available for this thesis some
simplifications had to be made to finish the
implementation in time. Thus, the amount of
time given to the project was not enough for a
complete implementation. In addition to this it
must be considered that CoC for RFID had a lot
of experience on equipment and previous
implementations which helped the project. An
implementation of RFID without this expertise
group would mean that additional time would
have to be added for mapping out relevant
hardware and software solutions. The exact
amount of time needed to implement RFID is

hard to specify for a recommendation since an
implementation at another plant faces different
challenges. The experience gained from this
case study shows that the timetable was not
enough to achieve full implementation in a team
consisting of two full time student working
1600 hours on both the case study and the thesis,
a CoC consultant working on the project parallel
with other projects, the installation craftsman
working approximately 40 hours with
installation, setup of network infrastructure
taking approximately 4 hours, and consultants at
nofilis handling software related issues working
approximately 12 hours. This shows the
importance of thoroughly planning, allocating
and approximating the time needed to complete
an implementation of RFID. Consideration
should be taken to the complexity of an RFID
implementation and all related functions in the
project team handling the implementation.
The empirical findings also showed that the
mapping of processes needs to be correct and
thorough. In this case study, wrong measuring
points would of course have shown incorrect
cycle and waiting times, ultimately leading to
incorrect performance metrics. A success factor
to the thesis group here was involving LOG in
this process to understand their viewpoint on
what needed to be measured. Nevertheless,
when mapping the processes, an open mind is
still important to identify possibilities of making
smart design choices. For instance, in this case
study two processes where initially considered
separate but further investigation showed that
they could be considered as a united process.
This is something LOG also agreed on.
Performing a thorough investigation of
processes should also be done to identify
potential areas where an implementation could
disturb working routines, as the case study at
MllP showed.
A lot of resistance to change was discovered
among operators in the workshop. When
holding workshops to and talking to operators
some negative feelings and anxiety towards the
changes were discovered. These were perceived
by the thesis group as being the result of earlier
implementations, where the operators were not
involved in the change process.
63
FINDINGS AND INSIGHTS
The case study showed that a lot of possible
features for the implementation outside the
scope of the initial design were discovered.
Especially possible ways of extending the use of
the equipment for the operators in different
functions.
9.2.1 Risk Assessment and Outcome
Some of assessed risks related to the
implementation were realized. For example the
risk (1) Effects on external environment from the
RFID system, became real as one of the tools
used in assembly could not be used when the
transponder was attached to the motor. This was
however circumvented with the system design.
The risk (4) Software-related issues, became
real. All transponders could be read by the
antennas and readers but for some unknown
reason, Crosstalk was not able to send this signal
to Kibana.
9.2.2 Real-time Monitoring
Through the RFID implementation,
performance metrics are measured in real-time.
This gives the benefits of acquiring data that is
up to date, which ultimately may aid
management in decision making as stated by
Chen et al. (2012). The project for reducing lead
time for the CA motor is an example where MllP
has shown a great interest in reducing lead time.
LOG has stated an interest in acquiring more up
to date time values for cycle times and waiting
times which a real-time monitoring system like
Kibana can help sustain. Liukkonen (2015) and
Abdullah et al. (2015) also support using
visualization tools to show figures like targets,
differences and efficiency. Performance metris,
such as productivity, becomes more speaking
when the numbers are closer to the actual
outcome instead of being an approximation
(Bellgran & Säfsten, 2005). Calculating more
accurate productivity factors are thus an aspect
that can be gained from the implementation
made in the case study. In the future, the data
acquired from the RFID system will have to be
implemented into an enterprise system like SAP
to gain the full benefits of analysis and follow-
up of lead times.
FINDINGS AND INSIGHTS
9.3 General Insights
The RFID solution makes it possible to access
information of a motor via Internet, which fits
well with the principles of IoT and i4.0 (Heng,
2014; Johansson & Larsson, 2015; Kagerman et
al., 2013; Zhong et al., 2015). Furthermore, the
ability to present information on the
whereabouts of a motor in real-time to a
customer or within the organization opens up for
new applications, both for internal and external
use. Other insights have also been made
regarding the choice of RFID as the chosen
technology for implementation.
9.3.1 Lean and RFID
The management model used at Bosch Rexroth,
BPS, is built on the principles of Lean. Lean
focuses on reducing wastes and inefficiencies in
organizations but to be able to do this the
organization must also be able to identify these
issues (Hines & Rich, 1997; Näslund, 2008).
Transparency can thus be regarded as an
important factor in achieving Lean or BPS
(Näslund; Ting et al., 2013). More specifically,
wastes such as unnecessary waiting times or
excess inventory could be approached with
information gained through the RFID solution
in internal logistics (Hines & Rich; Liukkonen,
2015). A better understanding on cycle times
and in the longer run more ways to increase
profits are improvements that could be achieved
(Liukkonen; Ting et al.).
JIT is already used through Kanban cards for
material ordering at MllP. RFID in conjunction
with a real-time monitoring system can help
visually conveying the status of Kanban cards
for operators (Abdullah et al., 2015; Kumar &
Panneerselvam, 2007). Through this, an
organization can follow a material or the
physical movement of a product in the factory
through a digital platform (Abdullah et al.; Chen
et al., 2012; Heng, 2014; Johansson & Larsson,
2015; Kagerman et al., 2013). It is also possible
to achieve a more modern version of JIT, coined
T-JIT, where the principles of pull production is
applied on other areas. Although this application
is not directly related to RFID, a design of a
complete system where RFID plays the role of
digital id for each object, could be linked to
64
systems handling ordering of e.g. materials in
purchasing systems, creating JIT in those areas
as well (Green et al., 2014; Zheng et al, 2012).
Kaizen is another part of Lean, coined
Continuous improvement events in the BPS.
Arguments for using visual tools to convey
information arguably helps create an
environment where CIP events can be achieved
on a larger scale. The transparency also helps all
personnel understand how the manufacturing
system functions, creating possibilities for
identifying new areas for improvement.
(Abdullah et al., 2015; Czarnecki & Loyd, 2001;
Liukkonen, 2015; Schwenker & Müller-Dofel,
2013; Ting et al., 2013)
9.3.2 RFID as the Chosen Technology
RFID was selected as the technology for
implementation before the start of the thesis.
RFID can be seen as one possible automated
identification technology among others that
could be used for tracking.
One of the major downsides with RFID, stated
by Ting et al. (2013), is the costs, so the benefit
of selecting RFID instead of cheaper options
like i.e. barcode needs to be addressed. In a
system using RFID, clear sight to the object
being tracked is not needed (Chen et al., 2012).
This aspect can be used in the industrial
environment in e.g. gates as to not disturb
working routines and maintain an optimal read
rate. RFID also makes it possible to detect a
large amount of products at the same time
(Castro Adaujo Filho, Travassos & Figueriedo,
2011). This aspect is not utilized to a large
extent in the RFID implementation at MllP.
However, the implementation utilizes this
functionality to a small degree through
simultaneous reads of two motors passing under
the gate antennas. Another important reason to
select RFID over other automated id solutions is
the greater accuracy of the technology
(McFarlane et al., 2003). A good way of using
the RFID in a production environment is to
visualize the reads for the operators (Abdullah
et al., 2015). It can preferably be used to
describe the status of a working station perhaps
together with a status and goal of the production.
10 CONCLUSIONS
The conclusions stand as the culmination of the master thesis and answers the
initially stated research questions. These are the results derived from a
combination of the theoretical and empirical insights gained throughout the
process of work. The conclusions are presented under the corresponding
research question in a table. The table also contains a reference to the section
in this report where the insights to each conclusion is presented.

65
CONCLUSIONS

10.1 Research Question 1

What factors should a framework for the implementation of RFID systems include?

CONCLUSION SUPPORTED BY
An implementation of RFID should include steps such as;
(1) Defining the scope
(2) Analyzing of the existing system
(3) Mapping of hardware and software
Theoretical insights
(4) System design 9.1.3
(5) Prototype testing
Empirical insights
(6) Installation 9.2
(7) Software design
(8) Testing and tuning
(9) Introduction and training
(10) Continuous work and improvement.

Theoretical insights
9.1.3
Clear objective of the implementation.
Empirical insights
9.2
Theoretical insights
Information of objectives to all stakeholders to avoid 9.1.3
misunderstandings and unrealistic expectations.
Empirical insights
9.2

A cross-functional team with personnel owning the processes

Theoretical insights
affected, personnel handling issues on the related
9.1.3
performance metrics, hardware and software experts,
owners of network infrastructure at the plant, craftsmen Empirical insights
handling installation of hardware, and project managers. 9.2

Adequate resources in terms of time should be allocated but

can be hard to approximate because of the complexity of an Empirical insights
implementation. 9.2

Theoretical insights
9.1.3
A correct and thorough mapping of the affected processes.
Empirical insights
9.2
User involvement to facilitate a complete implementation. A Theoretical insights
clear responsibility for involving users and communicating 9.1.1 and 9.1.3
objectives and aims of the implementation should also
Empirical insights
be established.
9.2

66
 CONCLUSIONS

10.2 Research Question 2

What benefits can be achieved by using RFID in internal logistics?
CONCLUSION SUPPORTED BY

Theoretical insights
9.1.2
Empirical insights
Increased transparency of the value chain.
9.2
General insights
9.3.1

Transparency helps involve personnel more in Kaizen events. General insights

9.3.1

Theoretical insights
Potential reduction of tedious work tasks like manual 9.1.2
reporting.
Empirical insights
9.2

Potential reduction of production costs. Theoretical insights

9.1.2

Theoretical insights
Potential increase in productivity.
9.1.2

Theoretical insights
9.1.2
Real-time information on performance metrics. Has the added
benefit of giving an organization more correct information Empirical insights
for decision-making. 9.2
General insights
9.3.1

Increased possibilities to identify potential wastes in internal General insights

logistics through transparency. 9.3.1

Can be used to visually convey status of JIT or Kanban. General insights

9.3.1

67
CONCLUSIONS

10.3 Research Question 3

How can Bosch Rexroth achieve benefits of I4.0 through RFID?

CONCLUSION SUPPORTED BY

Theoretical insights
Through a real-time monitoring system, like Kibana, 9.1.2
accessible through the Internet.
Empirical insights
9.2.1

Theoretical insights
By creating the possibility of remote access to the real-time 9.1.2
monitoring system from anywhere in the world.
Empirical insights
9.2.1

By creating a potential to improve working conditions for Theoretical insights

operators by replacing tedious work with automation. 9.1.1 and 9.1.2

Theoretical insights
By creating a digital version of a physical object used in the 9.1.2
industrial environment.
General insights
9.3

Theoretical insights
Through the creation of a cyber-version of the plant and the 9.1.2
processes.
Empirical insights
9.2.1

Through removal of boundaries between processes by creating Theoretical insights

a digitalized overview. 9.1.2

Through tools that increase transparency in the plant. Theoretical insights

9.1.2

With increased amounts of data for analysis and decision- Theoretical insights
making. 9.1.2

Better meeting customer demand by gaining more information Theoretical insights

on lead time. 9.1.2

Theoretical insights
Potential reduction of tedious work tasks like manual 9.1.2
reporting.
Empirical insights
9.2

68

10.4 Project Objectives and Aims
The aim of this thesis has been to investigate
how a smarter industry in terms of IoT and i4.0
can be achieved by implementing RFID in
internal logistics. To achieve this, the stated
research questions has been formulated and
answered by reviewing pertinent research
studies and course readings, and to evaluate the
results of the case study completed at MllP. The
presented conclusions are a result of this
conjoined analysis. The inclusion of empirical
knowledge has consolidated the validity and
reliability of the results presented in this thesis.
The thesis can thus contribute to the research
area with new insights of how an RFID
implementation process can be designed and
how it can be seen as a step to realize i4.0
69
CONCLUSIONS
The aim at MllP has been to further implement
RFID in the plant. The objective from the
standpoint of the company has been to be able
to follow an order through the internal value
chain and in a more far-sighted approach, to
ensure shorter lead times by increasing
transparency and traceability. From a broader
perspective, the Bosch Group aims to become
the lead provider and user of i4.0 related
technology. At the end of this thesis, the plant
has RFID antennas installed at all locations. A
system test has been performed with a
transponder showing satisfying results on the
installed system. Some areas for improvement
are further optimization and adding of
additional read points. A demonstration has
been shown of the visualization in the real-time
monitoring tool Kibana and an open point list of
the continuous work has been handed over to the
next owner of the project.
CONCLUSIONS

70
11 DISCUSSION
The results and insights gained from the master thesis are discussed in this
section. Here, a critical review of all the results is compared to the initially
stated objectives and aims. Covered subjects and possible flaws of the
implemented system are explained and considered in relation to the results
achieved.

71
DISCUSSION
11.1 Reliability and Validity
Throughout the process of work, the goal of the
study has been to triangulate data to present
conclusions built on a scientific foundation.
This means that the conclusions are built on
different types of data from different sources.
(Yin, 2013)
The overall principle has been to base
assumptions and conclusions on empirical data
and existing scientific knowledge when possible,
specified as one way to validate a case study by
Yin (2013). A full implementation has been
done during the case study to acquire data that
can be compared with existing knowledge. This
has given the benefit of not only basing
conclusions on theoretical knowledge but also
on the practical experience gained by the thesis
group. The belief from the thesis group is that
this significantly has helped increase the
reliability and validity of the presented
conclusions.
To validate the final RFID design solution, it
was also presented to different stakeholders and
adjusted based on the feedback. This step was
done several times in both meeting rooms and
directly on the shop floor, with different types
of visualizations such as pictures of equipment,
VSMs, VSDs, power point presentations and the
real-time monitoring tool Kibana. Collecting
feedback on the system directly in the
implementation environment helped identify
potential risks and points for further work. This
also greatly added to an increased reliability and
validity to the installation, since it could be
discussed on several occasions when working
with the system design. This active involvement
of both MOE and LOG also decreased the risk
of subjectivity from the thesis group.
During the implementation, both qualitative and
quantitative methods were considered to
increase the validity of the case study (Yin,
2013). Most of the input to the mapping of the
current state and situational analysis was
collected through interviews as qualitative data
and also verified with existing documentation
from Bosch to contribute with more quantitative
data. During the testing phase, the quantitative
data came from measurements of successful
72
reads and the qualitative data once again came
from interviews and observations.
11.2 The Implementation Results
The process of an RFID implementation
contained several more steps than was first
expected. One could expect that the
implementation steps would consists of a
system design, an installation and training of
personnel. What was mentioned both in the
theoretical framework and discovered during
the implementation at MllP was that need of a
clear objective. A clear objective of the
implementation will work as a solid ground to a
lot of decisions during the project. The objective
and aim of the implementation should be
communicated around in the organization to
avoid unrealistic expectations, but also to
neglect part of the fear that new installation may
cause among workers.
Another important step in the implementation is
working with continuous improvements. In the
case study at MllP this part could not be
thoroughly worked because of time limitations
and therefore the setup was not entirely
optimized. During the implementation a lot of
great ideas were also discovered, both from the
thesis group but also from the operators and
foremen at the plant. Because of the fact that the
project was limited by a definite end date, the
many open points for improvement had to be put
on a list for continuous work.
Another interesting point was the fact that the
operators initially was against the
implementation. During the process of work the
involvement of the operators in the project,
changed their criticism into an enthusiasm and
will to make the most out of the implementation.
This also supports the theory that user
involvement early in the design process makes
the result better and also the implementation
easier which was also stated by Glover et al.,
(2014) and Jaca et al. (2012).
Throughout the RFID implementation steps,
many complicated decisions are made, which
naturally requires a thorough investigation and
analysis of the current state. To get a good result,
every decision needs to be fully understood and

considered in terms of how it may affect the end
result. For an implementation this means that
most processes are more time consuming than
they may appear initially, especially if the
implementation has a strict timetable with no
room for setbacks. It is the belief of the thesis
authors that a minor setback in the early
processes could have caused problems enough
to jeopardize the entire implementation.
To succeed with an implementation similar to
the case study a deep understanding of the
affected processes, an expertise of the
technology used, and knowledge of
programming languages to get a system is
needed. Furthermore, the right resources have
to be assigned to the project to succeed. Right
resources include technical expertise of both
hardware and software needed in the project, but
also time as a resource dedicated to the different
functions of the project. Another identified
critical function is project management. In the
case study at MllP this was not clearly defined
in the start but the role was gradually established
as belonging to the thesis group. The project at
MllP was on several occasions suffering from
the lack of important functions such as clear
management and the lack of technical expertise.
Despite this, the thesis group managed to solve
tasks initially assigned to other parties involved
in the project. Examples are software-related
tasks, such as database structuring and software
logic but also following up on the expenses of
the project. These insights have shown that this
type of implementation requires a larger
operational team to succeed. A positive aspect
of the case study was the expertise and
knowledge of the CoC departments for RFID
and event monitoring. Their experience on
previous RFID implementations and event
monitoring has been a crucial factor to the
success of the implementation.
11.3 Positioning the Result
Implementation of RFID is in many aspects
similar to implementations in industrial
environments in general. The case study has
touched safety issues and standards on RFID
hardware and software logic. The theoretical
findings indicated that more standards were
73
DISCUSSION
needed for RFID, but this thesis shows that there
are existing standards being used for the
technology. The belief of the authors of this
thesis is that this can facilitate further
implementation of the RFID system into
enterprise systems or other manufacturing
execution systems.
The results of the case study can in many ways
be described as a confirmation on the theoretical
findings on RFID implementation presented in
this thesis. The case study further underlines the
importance of having resources in terms of
expertise and time to facilitate the
implementation. The case study has also shown
that an early user involvement aids in
identifying areas for improvement but also risk
factors to a successful implementation that
could not have been discovered only through
observations.
As an addition to presenting how an
implementation of RFID can be designed, the
case study presented in this master thesis clearly
shows that an implementation of RFID has
several aspects that can help an organization
realize i4.0.
11.4 Reflections
The theoretical findings suggest that the
expenses of RFID implementation are one of the
main causes of concern. According to the
manager of i4.0 projects at MllP (Personal
communication, 2016-02-01), the aim is to have
a return of interest within two years for projects
like this. The benefits of the implementation are
mostly calculated on estimated efficiency
progress in the production. In this case study the
calculations were not considered. Furthermore,
the thesis group cannot point out definite
savings in the production realized through this
implementation, but there are several points
recommended for continuous improvements
that might increase efficiency and generate
savings. This is also one of the main reasons
why the continuous work is seen as important.
If the return of interest is considered important
for this case, the thesis group suggests that it
should be clearly specified in the project
objectives and aims. A suggestion is that key
DISCUSSION

figures could be measured before and after 11.5 Recommendations

implementation. An added suggestion would
The case study has proven that it is important to
also be that clear targets are set up as a goal of
work with clear objectives and aims in
the implementation.
implementation projects. Recommendations
Another experience from the case study is the regarding RFID and other similar
importance of good documentation. At the start implementation projects are to involve
of the case study it was quickly discovered that personnel with the required expertise. It is the
the lack of documentation from previous belief of the thesis group that it is essential to
projects was an obstacle. The thesis group have an operational team with the right
quickly learned from this project that lack of competences and the dedicated time required for
documentation led to time consuming work in the project. It is also necessary to have a clear
figuring out what had been done. As another project management to achieve success.
experience much of the implementation done by
The use of an RFID system does not make it an
nofilis was well-documented. As a result, the
i4.0 advantage without other improvements
thesis group continuously documented all
connected to it. Thus the recommendation to
results and work to assist the next project group
MllP regarding the RFID implementation
taking ownership of the project. Apart from
project is to proceed with the suggested
documentation the thesis group aspired to also
improvement points both on the design and the
involve all related personnel in the changes to
actual implementation. The i4.0 advantages of a
increase the understanding of the project and its
more visible assembly line, accessible through
implications.
Internet, could be seen as an i4.0 achievement.
Several systems used in the case study were It is still the recommendation of the thesis group
governed by external suppliers and consultants. to extend the implementation to SAP to get full
Previous projects at the plants have also been benefit of the RFID implementation.
held by short-term employees. This outsourcing
As suggested, the final RFID system design
of services and work has led to a lack of in-
should include the RFID tag attached directly to
house knowledge. This was clearly noticed by
the motor part at the kitting process. This will
the thesis group when performing the mapping
open up for further automation and decrease the
of the current state as no person on site had a
risk of operators sub-optimizing the system
complete knowledge of the previous work.
incorrectly. The system should also give
Outsourcing of projects may provide the
feedback of a successful RFID registration to
organization with working solutions and get rid
the operators, to avoid uncertainty. Continuous
of the risk of wasting time and money learning
work on the implementation should focus on
about details, but on the drawback is that the
solving the issue with the unreadable insulated
knowledge is kept outside the company. This
transponders. When this is done the system
makes further improvements, maintenance or
could be seen as up and running despite the
changes to the system more difficult to obtain
improvement points. Further work to get real
and dependent on the initial project owner.
benefits in relation to automation, is to get the
One main success factor to the implementation RFID read points to trigger activates in SAP i.e.
in a large company with very strict regulations reporting of operations as completed.
and complex decision order, such as Bosch
When making changes to a work environment,
Rexroth, is that the thesis group has reported
consideration should be taken to the personnel
directly to the plant manager. The project group
within the organization. As proven by the
believes that the possibility to make quick
theoretical findings, an involvement of the
decisions have been a critical success factor to
workers also makes it easier to succeed with an
the implementation at MllP.
implementation. In the case study it was also
discovered that the involvement of personnel
was absolutely crucial to get a correct mapping
74
 DISCUSSION

of the processes. In other words, it is the belief

of the thesis group that the user involvement
affects the end result of a change in a work
environment.
When making changes to reduce manual work
with automation, the cognitive workload on an
operator should also be considered. A reduction
of manual work can affect the operator in ways
not possible to define only by observing the
working process. The workers’ “new role” is an
interesting topic in terms of i4.0 and it is the
recommendation of the thesis group that the
evaluation of this topic is an area where
continued research should be undertaken.
Related to this topic is also that a reduction of
manual work can carry the risk of losing
valuable knowledge held by workers. This also
opens up for important fields for continuous
studies.

75
 AnnAAAAWgaagtag

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79
 Appendix 1

Appendix 1: Gantt diagram

18 jan 01 feb 15 feb 29 feb 14 mar 28 mar 11 apr 25 apr 09 maj 23 maj 06 jun 20 jun

PROJECT PLAN
THEORETICAL FRAMEWORK
PROCESS MAPPING
SITUATIONAL ANALYSIS
DESIGN PHASE
Workstation design
Software design
IMPLEMENTATION
Physical Installation
Software setup
Testing phase
Training
Live test
EVALUATION
ANALYSIS
Opposition 1
Opposition 2
DOCUMENTATION
PRESENTATION PREPARATIONS
 Appendix 2

Appendix 2: Interviews and Meetings

Date Type Participant (attending) Topic Time

2016-01-27 Meeting Plant manager (1) Project aims 1h
2016-02-03 Meeting RFID implementation 7h
CoC (1), Juergen
Observation Physical implementation
Lieser, Anders Palm
Kibana
2016-02-08 Interview LOG (1), 2 w. l. 1,5 h
2 week lead time project
project
2016-02-17 Interview MOE (3) 1,5 h
VSM CA motor
(Carolina Sondell,
Assembled accessories
Linn Håkansson,
Requirements from MOE
Patricia Karlsson)
2016-02-19 Observation Manual assembly station 1,5 h
Patricia Karlsson
Accessory station
2016-02-25 Introduction MOE morning meeting Introduce us and RFID project 0,5 h
2016-03-02 (16) to MOE operators

2016-02-29 Phone meeting John Reimers, CoC (1) RFID hardware 1,5 h
2016-03-02 Meeting Cross talk equipment 1h
IT department (2)
Software environment
2016-03-02 Observation/ MOE(1) , LOG (1) 0,5 h
meeting Carolina Sondell Concept for RFID in VSM
Sara Edholm
2016-03-11 Phone meeting CoC (1) Implementation design 1,5 h
2016-04-18 Meeting IT department (2) Network setup 1h
2016-04-19 Presentation MOE (12), foremen Project information, feedback 1h
2016-04-21 Presentation MOE (8), managers Project information, feedback 1h
2016-05-04 Meeting MOE (2), paint shop Discussion on implementation 1h
managers in paint shop
2016-05-11 Handover Anders Palm Handover of results and CIP 2h
2016-05-12 Skype meeting Nofilis (1), CoC (1) Setup of system in Crosstalk 8h
2016-05-18 Demonstration Sponsor, MOE (1), Demonstration of project 0,5 h
LOG (1), Visitors (6) results and Kibana
 Appendix 3 (1/2)

Appendix 3: Workshop Setup

In swedish

Inledning:
Exjobb från jan-maj, från LTU
Vi gör en studie om hur man kan använda RFID, hur vi kan hjälpa operatörer, arbetsledning, säljare,
företransponderet i stort för att öka konkurrenskraft.
Hägglunds motor är bästa på marknaden
Kunderna efterfrågar snabba leveranser – 2w ledtider
För att kunna säkerställa leveranserna vill man kunna följa och säkerställa att man klarar leveranstiderna.
Det är en del i projektet, systemet kommer bara följa motorerna genom processerna inte mäta
processerna.
Så det vi nu vill veta av er är vad vi kan dra mer för nytta av detta.

Initiera diskussion
Något om vad man kan använda det till…
 Busskort, träningskort
 Identifiering av djur
 Lidingöloppet RFID-märke i skon så kompisar kan följa löpare i realtid.
 Har ni några erfarenheter av RFID eller liknande användning?

Vart vi kommer installera – Visa Layout

För att vi ska få upp idéer och tänkte vi att ni kan börja med att diskutera lite kring det.

Gruppdiskussion:
 Kan vi som är här inne få ut av det här?
 Vad kan ni få för nytta av det här?
 Vad skulle ni vilja veta av vad som händer i övriga fabriken?
 Hur skulle ni vilja arbeta med transpondergning och avrapportering

Vad vi behöver få ut av operatörerna

Hur vill dom göra taggning på kit
 Appendix 3 (2/2)

Hur vill ni att arbetsrutinen skall se ut när ni ”startar” kittningen?

Montörerna I vilka steg hanterar ni plastmappen idag - Hur vill dom att arbetsrutinen med att
skanna ”tvättade” motorer ska se ut. När?

Vad kan ni få ut av det här? Exempel: Monitor, Papperslöst.

Vad vi ser att man kommer kunna använda installationen till:

Kortsiktigt:
 Kunna följa motorn i realtid
 Testa och förbereda utrusningen för vidare användning
 Information mellan avdelningar (info-tavla)
Långsiktigt:
 Automatisk rapportering till SAP
 Kunna dela information mellan avdelningar (måleri & test får information om när motorer är
på väg)
 Testboxarna och paketeringen kan få information automatiskt om vilken motor som är ”på
plats” och så småningom ta med sig data från tidigare mätningar ex.
 Få bort alla papper, ett steg mot digitalisering, RFID taggen bär information och visas på
surfplatta eller datorskärm, exempelvis plocklista, checklista osv.

Att anteckna:
Hur många och vilka avdelningar var där:
Avdelning:____________ Antal:__________
Avdelning:____________ Antal:__________
Avdelning:____________ Antal:__________
Avdelning:____________ Antal:__________
Avdelning:____________ Antal:__________

Beslut var bränna transponder: _______________________________

 Appendix 4 (1/3)

Appendix 4: List of RFID Equipment

Sick RFU620
 Single point reader.
 Reading range: up to 1 meter*.
 Reader and antenna included.
 Reading and writing of RFID transponder.
 Dimension: 137 x 131 x 56 mm.

Figure 1: SICK RFU620 RFID reader (Source: Bosch Intranet)

Kathrein ARU-CSB
 Gate reader.
 Direction detection.
 Reading range: up to 6 meter*.
 Reader and antenna included.
 Reading of RFID transponder.
 Dimension: 741 x 386 x 122

Figure 2: Kathrein ARU-CSB RFID reader (Source: Bosch Intranet)

* Reading range is depending on tag properties, environment and requirements.

 Appendix 4 (2/3)

Nordic ID Morphic Cross Dipole UHF RFID Writer/reader

 Mobile RFID reader
 Integrated 1D Laser and 2D imager reader.
 Wi-Fi and USB connection
 Reading and writing of RFID transponder.
 Single-hand operation
 Dimension: 147 x 54 x 35

Figure 3: Nordic ID Morphic Cross Dipole / UHF RFID reader (Source: Bosch Intranet).
Kathrein UHF RFID Wide Range antennas 70°
 Gate reader.
 Wide Range RFID antenna for reading of RFID transponders.
 Read range: up to 12 meters*.
 Dimension (without brackets): 271 x 271 x 43 mm.
 Needs additional reader, i.e. RRU4.

Figure 4: Kathrein UHF RFID Wide Range antenna (Source: Bosch Intranet).

* Reading range depends on tag properties, environment and requirements.

 Appendix 4 (3/3)

Kathrein RRU4 ELC RFID reader

 No built-in antenna.
 Four ports for antennas
 Dimension: 234 x 270 x 68
 Four ports for antennas

Figure 5: Kathrein RRU4 ELC RFID reader (Source: Bosch Intranet).

 Appendix 5

Appendix 5: GS1 Standard

Compiled by the authors based on “Object Identification Global Document Type Identifier”, Bosch
Intranet
The Global Location Number (GLN) can be used to identify a physical location. The key comprises a
GS1 Company Prefix, Location Reference, and Check Digit. For the plant in Mellansel the Company
prefix has been set to 4048118. The GLN is encoded in either a bar code or EPC/RFID transponder to
automatically identify locations like storage places in a warehouse, the destination of a pallet, or the
origin of a product and follows the standard seen in the picture below. When used in this manner, the
code is referred to as (S)GLN. This number was ordered by the authors of this thesis through Bosch on
all specific RFID antenna positions.

A table of the correct format to mark each antenna/checkpoint position can be seen below. 1000 unique
numbers have been given to the Mellansel plant, indicated by XXX in the table (choosing an nr between
0-999). A string of numbers also point at the business sector Drive and control which Mellansel is a part
of.
Indicator
Company prefix (CP) Business sector Location nr
digit
4 0 4 8 1 1 8 8 1 0 0 0 0 3 0 0 0 0 0 0 0 0 0 X X X

Global Trade Item Number (GTIN) can be used by a company to uniquely identify all of its trade
items. (S)GTIN is a GTIN with a serial number added in the end of the key. The Hägglunds CA motors
are examples of items where a serial number exists.
 Appendix 6 (1/2)

Appendix 6: Work Instructions

Appendix 6 (2/2)
 Appendix 7 (1/7)

Appendix 7: Crosstalk Logic

Appendix 7 (2/7)
Appendix 7 (3/7)
Appendix 7 (4/7)
Appendix 7 (5/7)
Appendix 7 (6/7)
Appendix 7 (7/7)
 Appendix 8 (1/2)

Appendix 8: Workshop Results

Date: 20/4
Båda mötena inleds med en presentation av vilka vi är, vad vi vill åstadkomma och hur vi vill hjälpa
operatörerna. Information ges om pågående installation och hur det kommer se ut som färdig lösning.
Workshop #1 kl. 10:00
Läsning
”Man vill kunna lita på att taggen är läst. Vill se att den är scannad.” Något system för att säkerställa
detta. En person uttrycker att det känns skönare med handhållen läsare. ”Då vet man att det är läst.”
Diskussion visar att man vill känna att man har kontroll över processen.
Kittning
”Skulle man inte kunna se sin plocklista digitalt via RFID-taggen? Scanna taggen och se det på någon
skärm.” Vidare diskussion visar att man gemensamt har en önskan om att eliminera alla papper i
framtiden.
”Det vore bra att koppla RFID scanning till systemet för skyltmärkningen. Då ser man också att det är
rätt motor.” Operatörerna diskuterar möjlighet att kunna dubbelkolla system men också få information
direkt i programmet för skyltmärkning. Detta skulle underlätta deras arbete.
Testboxarna vill scanna motorn för att få information direkt i testprogramvara.
Montering
”Kan vi inte använda RFID för att se ritningar i monteringen? Vi kanske skannar motorn och får fram
ritningen för denna på en skärm.” Montörerna uttrycker att de kan använda skärmen som nyligen
installerats för detta ändamål.
”Varje morgon skriver vi in hur många motorer som ska köras den dagen. Skulle inte denna information
kunna ske automatisk?”
Avvikelser, ex
”Hur ska man kunna se om det blir avvikelser? Vad gör man då?”
Diskussion visar att när motorn ibland går tillbaka till montering efter provning sker detta via truck en
annan väg som inte passerar några läsare. Vidare diskussion leder till förslag:
”Vi skulle behöva någon sorts röd lampa som indikerar när det är fel.” En annan person fliker in: ”Kan
vi inte bara sätta upp antenner i gaten mellan provning och montering då? Då ser vi ju att det är en
avvikelse. Det är väl en enkel lösning?”
”Ja men hur gör vi med de motorer som tas till renlighetstest?” samma person fliker in: ”Det är väl bara
att sätta en antenn där också?”
 Appendix 8 (2/2)

Workshop #2 kl. 14:00

Läsning
Operatörer nämner att det vore bra att snabbt kunna se hur många motorer som gjorts en dag.
Montering
Montörerna uttrycker en önskan om att kunna skanna motorn för att få ritningar. ”Kan vara bra med
ritningar om någon ny montör kommer och jobbar.”
Testboxar
Testboxarna tas åter upp som ett exempel på där man vill scanna motorer och få infon till programvaran
som används. Operatörerna uttrycker en önskan att få denna funktionalitet.
Operatörerna skulle vilja ha en funktion där motorn blir rapporterad som färdig när man tryckt ut den
som godkänd på testet.
Avvikelser, ex
Återigen kommer ämnet upp om avvikelser i hur motorn kan gå i produktionen:
”Vissa motorer körs inte samma väg som övriga motorer, de går t.ex. till packen.” Operatörer föreslår
vidare att man kanske kan lägga in undantag.
Några operatörer påpekar vissa motorer går tillbaka till tillbehörsmontering och byter RFID-tagg. Efter
lite diskussion framgår det att det är ett nummer i AX som byts och inte taggen i sig. Motorn kan alltså
följas med antenner genom hela processen.
 Appendix 9

Appendix 9: Open Points

Open point Status “issue handled by”
Insulated The installed antennas are getting a signal of the tag, but the Nofilis (Wolfram
RFID- current CrossTalk solution cannot send a message to Keil) or John
transponder Kibana. The insulated transponder have two different Reimers.
not working strings of information, which probably causes the problem.
An insulated tag has been sent to John Reimers at CoC-
RFID, and nofilis is aware of the problem.
Tune-in SICK When the issue with insulated RFID-transponders are Moa/Anders P
readers. solved, the SICK-readers needs to be tuned in for optimal
reading of the insulated transponders.
Readers on The AGV pick-up station have no RFID readers connected Åke Sundin
AGV pick-up to the CA tact time monitor. The solution to use existing
Midroc
location readers (from HPS/Paint shop) needs involvement of
Midroc. Nofilis, John Reimers and Åke Sundin (CI-MllP) Nofilis
have tried to make this work but could not find a working John Reimers
solution. New SICK readers are installed but not connected,
because they might disturb the other readers, more
evaluation is needed before these can be used.
Testing The RFID antennas and reader are installed and roughly Wolfram Keil
chamber 1 tuned in. There is a CrossTalk issue that needs to be fixed (nofilis)
to get the both in and out signals from the reader. John
John Reimers CoC
Reimers and nofilis are aware of the problem and have tried
to solve it. No solution yet.
Testing Equipment is ordered. The solution from test chamber 1 can Toriro:
chamber 2 be copied to chamber 2. The installation was made by
Alexander
Alexander at Toriro and he knows all the details about the
(0709795762)
installation.
Hand scanner Hand scanner are delivered to MllP, and docking cradle is Installation: Henrik
for packing ordered. The packing operators manager are informed Westman
(Jimmie Jonsson) and waiting for the implementation.
Anders Palm
Contact: Jimmie
Jonsson
Tag-writing A computer with “Hägglund production system” is installed Åke Sundin
for tag-writing inside Pär Nordlunds office. A SICK-reader
John Reimers
is also installed for writing tags. Åke Sundin is involved
because of the HPS system, John Reimers and nofilis are Nofilis
involved for writing transponder with the SICK-reader.
Kibana Update Kibana when new stations are implemented. Moa