Dsi herzog cs_072010
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Herzog Contracting Corp. implemented an asset management system using Honeywell devices and Dynamic Systems software to track tools and equipment, which resulted in significant cost savings. Crews now scan barcodes on tools with Honeywell mobile computers and scanners loaded with tracking software. This allows Herzog to know the location of expensive tools and lowers replacement costs by an estimated $20,000 per month through reduced losses. The successful system was expanded to another major construction project.
Dsi herzog cs_072010
- 1. case study Honeywell and Dynamic Systems Inc. help Herzog Contracting Corporation implement an industry-leading asset management system, resulting in significant cost savings. Herzog Contracting Corp. is a $400 million construction company with various projects, crews and sites nationwide. As most crews report directly to the construction site each morning, and not a centralized location, there was traditionally little to no tracking of the different tools and small equipment used by each crew. Herzog recognized that the “honor system” was resulting in a major loss in profitability due to the costs associated with replacing tools and equipment that went missing. When Herzog won a new contract for the
- 2. construction of Denver’s West Corridor not an option. Further, not every site Honeywell’s Focus 1690 hand-held Light Rail Project in 2009, company has easily accessible Internet, so the area-imaging scanner decodes virtually leaders recognized the opportunity system had to be managed without all bar codes, including the 1D and to implement an asset management a wireless connection, but with the 2D bar codes designed specifically to solution and enlisted Dynamic Systems ability to upload information to a central adhere to Herzog’s requirements. The Inc., a software developer specializing database as needed. The solution also 1690 quickly scans the individual bar in bar code data collection applications, had to be very durable, including the codes applied to each new small tool to help. Herzog and Dynamic Systems ability to withstand prolonged exposure and/or piece of equipment owned by selected Honeywell’s Dolphin® 7850 to dust and dirt, which is commonly a Herzog. Using CheckMate Toolroom mobile computer and Focus 1690 ® problem on construction sites. The tools software, this information is loaded hand-held area-imaging scanner, paired and equipment used on-site vary in size into an electronic library so that with CheckMate Toolroom software and and shape, so the solution needed to each individual tool can be tracked. pre-printed 1D and 2D bar codes to incorporate bar codes that were small Additionally, this software allows tools label, track and monitor the tools and enough and durable enough to fit and to be classified according to value, with equipment used for the light rail project. stay put on all types of tools. Herzog more expensive tools being tracked Since implementation in May of 2009, was specifically interested in utilizing 2D more closely. Although updates are tool and equipment replacement has bar codes for these reasons. To read not made to the library in real-time due lessened to the point that the company is the bar codes, Herzog needed a mobile to the nature of the business, they are saving an estimated $20,000 per month. computer with scanning and imaging made two to three times daily, creating capabilities, and a hand-held scanner an easy, searchable database for quickly that could quickly and seamlessly log determining which crew last used a The Challenge: new tools into the system. specific tool or piece of equipment. A project such as the construction of Taking all requirements into consideration, As the solution continues to grow Denver’s West Corridor Light Rail Project the company selected a complete in popularity and use, the electronic involves a variety of trade work—from solution, including Honeywell’s Dolphin records will also serve as a component bridge building to carpentry to ditch 7850 mobile computer and Focus 1690 of a complete pricing/cost estimate digging. All of these elements require scanner in conjunction with Dynamic system for the company. different tools and equipment, from Systems’ CheckMate software for tool hammers and drills to shovels and GPS tracking, and pre-printed 1D and 2D receivers. Until recently, there was no The Benefit: bar codes. asset system in place to track equipment This solution provides increased needs. Each foreman was responsible profitability for Herzog as foremen feel a for his or her crews’ set of tools, and The Solution: heightened sense of ownership for their as such, it was a common occurrence Designed for rugged environments and crew’s tools, resulting in a significant for tools and equipment to be lost or built to withstand repeated drops to decrease in tool and equipment loss. misplaced, which the company knew concrete, Honeywell’s Dolphin 7850 Herzog estimates it is currently saving was causing a major impact on overall mobile computer was selected for the $20,000 per month on tool replacement. profitability. Without a proper tracking project because of its IP64 rating and The company is also seeing improved system, Herzog estimated that it easy-to-use, touch screen interface. productivity as the solution allows replaced at least 10 percent of all tools Signature capture functionality was management to know where expensive purchased over the course of a project. also a key reason the device was and unique tools are at any point in On one recent project in particular, the selected as it allows each crew foreman time and there is no longer time spent company purchased more than 1,000 to electronically sign out tools and searching for lost or stolen tools. replacement tape measures. equipment for his or her team, instilling “Herzog is among the first construction Herzog challenged Dynamic Systems a sense of responsibility and ownership companies in the business to manage Inc. to provide a comprehensive tool over the tools. This signature also our assets electronically and this management solution to meet their serves as a legal record from which the wouldn’t be possible without Honeywell’s highly specific criteria. Many construction company can hold a specific foreman rugged and reliable devices,” said sites do not have an office, so a responsible, should an expensive tool Deric Berry, Fleet Manager, Herzog traditional computerized system was turn up missing. Contracting Corp. “We look forward
- 3. to seeing improved productivity and profitability from our crews as we continue to implement this system at other sites.” The success of Denver’s West Corridor Light Rail Project resulted in the purchase of a duplicate system to be used in the construction of the North Texas Rail Project, slated for completion in mid 2011. For more information: www.honeywellaidc.com Honeywell Scanning & Mobility 9680 Old Bailes Road Fort Mill, SC 29707 800.582.4263 www.honeywell.com © 2010 Honeywell International Inc.