Machine Readable Material Transactions

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Machine Readable Material Transactions

Project Participants: Huntington Ingalls Industries, Inc.

Project Start: June 2014

Receiving material in the warehouse and tracking its movement throughout the yard is a paper laden, manually intensive effort. The ‘Machine Readable’ project is focused on mobility technology and process improvements to demonstrate cycle time reduction of material transactions using “machine readable” data entry with mobile scanning devices. This will enable traceability and accountability of material transactions from receipt inspection through ship installation, checkout, and delivery to the end user. The overall goal is to create a material tracking and control system that will reduce ship construction costs by reducing material processing time and material replacement.

The Material Tracking and Control System (MTCS) will provide a machine readable unique identification and scanning capability for tracking and identifying individual items, containers of material, and loose materials at various locations throughout the shipyard. This outcome of this project will provide Ingalls with the capability to track every piece of equipment from the time it is received into the warehouse until it is installed or otherwise disposed. The MTCS will allow monitoring of the transaction history of each identified “traceable” piece of equipment. The Ingalls team envisions the MTCS as a scalable and expandable tool, able to add other components or modules to the system. The overall objective is to reduce cycle time of material transactions by using mobile devices to enter data directly into the material management system. This will increase data accuracy by minimizing the manual entry of material transaction data; maintain identification of material through consumption and any return to stock activities, and build an historical audit trail of the material movement.

The Ingalls project has two phases, with Phase I developing the Receiving and Material Tracking modules and Phase II developing the sequentially linked Inventory, Maintenance, and Material Consumption modules. To support implementation, Ingalls will issue mobile devices to all warehousemen, storekeepers, foremen, etc., working the fabrication of all DDG hulls as well as current and future programs at the end of each phase to begin using the mobile devices as the standard method of material receiving, issuing and tracking. Processes and procedures will be updated to support utilization of handheld devices for material tracking. This technology, once implemented, could reduce material processing time by 25% and save an estimated $1.7M per DDG hull and reduce annual material losses by $280K.

Project Related Reports & Documents

CNST Awards Machine Readable Material Transactions