Automatic Data Collection and the Advantages of Bar Coding

What once seemed to be simply an odd little zebra stripe that began appearing on a few retail, food industry related goods in the early 1970’s has evolved into an effective and widely used productivity enhancement tool. Bar codes are a fast, easy and accurate data entry method used in the process known as automatic data collection. Bar coding enables products to be tracked efficiently and accurately at speeds not possible using manual data entry systems. The primary benefit of this process is that it is truly automatic, occurring instantaneously as a transaction or process takes place, commonly referred to as real-time data capture and exchange within the industry. Improved accuracy is yet another benefit. Studies show that the entry and read error rates when using automatic data collection and bar code technology is approximately 1 error in 1 million characters versus 1 error for every 300 characters in manual key entry. The IBM PC explosion in the early 1980’s, served as the catalyst to promote the widespread usage and application of bar coding for automatic data collection. Over the past 20 years, bar coding has become a virtual necessity for the collection and processing of information in a quick and timely manner enabling companies, in every conceivable industry, to maximize and dramatically increase their productivity and overall efficiency. Bar codes enable managers to track information and activity as it occurs allowing their decisions to be dictated by more concrete, current information. The traditional manual key and entry process of information compiled on sheets of paper, by comparison, does not provide real-time data entry capability as the data being entered usually reflects events that occurred in the past. Yet, despite the advantages of automatic data collection via bar coding, there is still an element of mystique and a stigma of high implementation cost associated with the technology that intimidates many people. With a better understanding of bar coding, the requirements for automatic data collection and its common application uses, we hope to demystify and eliminate any apprehensions you may have and shed light on the tremendous potential for the implementation of this technology in the world around you.

Bar Code Construction Bar coding is a type of Morse code used to encode or put information into a universally recognized code language in the form of a bar code symbology. Encoded data can consist of a part number, serial number, supplier number, quantity, transaction code, or other type of data. A number of bar code standards have been developed and refined over the years into accepted languages called symbologies. Numerous bar code trade associations, like (ANSI) American National Standards Institute, (HIBC) Health Industry Bar Code Council and (AIAG) Automotive Industry Action Group, have subsequently been established to regulate the use of bar code symbologies in accordance with accepted industry standards and specifications, as dictated by an industry. Bar code symbologies come in two basic varieties. They can be either linear or two dimensional in their configuration. A linear barcode symbology consists of a single row of dark lines and white spaces of varying but specified width and height, as indicated by the example below.

Similarly, a 2-Dimensional symbology can be configured into a stacked or matrix format. Two dimensional bar codes are special rectangular codes which ‘stack’ information in a manner allowing for more information storage in a smaller amount of space.

The amount of data that can be encoded in a linear barcode symbology is more limited than that of a 2-D symbology. A 2-D matrix symbology of 1 x 1inch diameter, for example, can encode and store the entire US Constitution! Hence, the power of barcode technology in maximizing information storage within limited space. In addition to symbology standards set by the various trade associations, there are several other related types of compliance standards used in manufacturing and distribution operations. These include:

Application Standards
An application standard is a set of policies and procedures that govern an application within an operation. Most operations have a defined set of rules to manage the material flow and manufacturing processes in their operation. These rules can be defined as an application standard.

Product Identification Standards
Product identification standards place a specific policy on how to mark products and what information must be made available to consumers purchasing those products.

Sample – Product Identification Standard Label Standards
Label standards (also referred to as compliance labeling within the industry) have been created for commercial applications so trading partners can easily communicate and conduct business transactions at a higher level of efficiency.

Sample – Compliance Label Standard

Depending on the specific bar code application, conformance to one or more of these standards may be required.

Bar Coding Requirements To establish a basic bar code system for automatic data collection, four primary components are required. They are – a bar code printer, a label for item tracking, scanning equipment for data collection and an external database for bar code data capture and relay.

Component 1 - The Bar Code Printer
The bar code printer provides the first vital component part in tracking information by generating the bar code label utilized in item tracking. A variety of technologies and methods exist to print a bar code label which will be discussed in greater detail in the next section, entitled "Available Bar Code Print Technologies".

Component 2 - The Bar Code Label
Automatic identification is the essential first step in a barcode system which is accomplished by attaching a barcode label to an item for tracking. An item label can contain any combination of text, graphic or bar code information, yet it is the bar code symbology that facilitates and promotes the item tracking process.

Component 3 - Scanning Equipment for Data Collection
The data collection phase occurs through the use of scanners that instantly and accurately read, capture and decipher the information contained in the barcode label. Scanners read information much faster and more reliably than humans can write or type. Thus, significantly reducing the rate or likelihood of error. Scanners also act as decoders deciphering the information contained in the barcode and converting it into a signal that can be understood by a computer system attached to a scanner. Note: Print quality is of utmost importance when printing bar codes so that the scanner has the ability to read them. Poor quality bar codes that do not scan can result in large fines or penalties that can deteriorate customer relations between a vendor and supplier.

Component 4 – Data Capture via an External Database
The fourth and final component to establishing a bar code system is the external database. Existing barcode applications commonly rely on the availability of external data computer systems to effectively identify a unique bar code with pertinent information about the article from a related database. The computer mainframe collects and interprets the data transmitted from the scanner and links the bar code reference point information to a detailed data file on that item. Such data files commonly contain various information on the item, including but not limited to, a detailed product description or price and inventory quantity, to enable transactions and activity to be effectively monitored in real-time. Without the advent of this external database, the bar code itself has no useful meaning or problem solving significance. Note: Zebra’s corporate strengths are based heavily on components one and two listed here.

Key Benefits of Bar Coding Implementing a bar code system in one’s facility offers tremendous advantages when coupled with the appropriate computer hardware and software of an external database. The most compelling advantages of barcoding and automatic data collection are:

Accuracy
Bar coding increases accuracy by reducing the likelihood of human errors from manual entry or miscommunication from misread or mislabeled items. Here again, bear in mind that print quality is of utmost importance to ensure that the scanner has the ability to read the bar code. Without this capability the accuracy and productivity gains of bar code technology are virtually non-existent.

Ease-of-Use
Bar codes are easy-to-use provided the appropriate hardware and software aspects are in place to maximize the process of automatic data collection.

Uniform Data Collection
Diverse compliance standards and standardized bar code symbologies ensure that bar code information is captured and relayed in a fashion that is universally understood and accepted.

Timely Feedback
Bar coding promotes timely feedback in that data is captured in real-time as it occurs enabling decisions to be made from current information.

Improved Productivity
Bar codes improve productivity in that many manual activities and tasks become automated enabling personnel resources to be utilized in other ways to increase the efficiencies of scale within an organization. Bar coding further enables manufacturing processes to be monitored and tracked more closely to improve the company’s overall quality standards.

Increased Profitability
The increased efficiencies (e.g. improved workflows, reduction in error rates and resultant happier customers) that bar coding promotes enables companies to save costs and substantially improve their bottom line. Note: The return on investment for an automated data collection system is typically one year, and often substantially less.

Common Bar Code Applications Where was the last time you saw a barcode or witnessed an automatic data collection transaction??? Your exposure to the world of bar coding and auto identification is likely to be more frequent than you might think. Bar coding and automatic data collection are processes that occur in and around us every day, without us consciously ever really thinking about it or taking direct notice of it. Consider the convenience it provides most readily in the retail or grocery industry to expedite one’s check-out procedure, or within the package delivery industry to track one’s package throughout its transport cycle. In retail applications, labels adhered or attached to a product or item of clothing contain barcodes which are read by a scanner during checkout and interpreted by a computer. The computer recognizes the barcode’s data bit reference and is able to link the item to its sales price and description contained in the store’s mainframe database. This product information is reflected, not only, on your sales receipt, but is automatically linked to the store’s inventory tracking system which knows to deduct the quantity of the item purchased from the stores current level of inventory. This entire process occurs in a matter of seconds with only minimal data entry required by the checkout person in the form of quantity purchased – e.g. one or more.

Similarly, in a package delivery scenario, e.g. common carriers such as UPS^® or FedEx^®, the barcode label enables the package to be tracked as it passes through diverse sorting hubs en route to its ultimate destination. Throughout the package’s journey, each sorting hub scans the package to register its receipt before passing it onward. Thus, if the package’s arrival is ever delayed or misplaced, it can usually be tracked by its bar code tracking number to the exact point in the process where it may have stalled. In addition to the retail and packaging industry, barcode data collection is used in a variety of industries, including but not limited to manufacturing, healthcare and automotive. Generally any industry or company can utilize bar coding to track and improve their current processes and operations. Some of the most common bar code applications referenced in the industry are:

Shipping & Receiving Compliance Labeling
Compliance labels utilize bar codes to facilitate and expedite shipping and receiving process functions between one’s suppliers and/or vendors. As a purchase order is received, the operator scans the bar code label and keys in the quantity that has been received into a hand-held portable data terminal which uploads this information to the computer mainframe. The mainframe can then point out product shortages that are double-checked on the spot rather than after an item has been moved or partially used. Similarly, as items are loaded in preparation for shipping, they are scanned enabling shortages or misloads to be detected immediately. As items are stored into inventory, the computer, thus, immediately registers the stock quantities as being available for picking to satisfy an upcoming order. NOTE: Compliance label specifications vary depending on the customer. Any shipment not in accordance with a client’s specified compliance labeling requirement may be rejected and can result in a monetary fine, depending on the frequency and extent of the occurrence.

Inventory Control
Bar codes are frequently used for inventory control to track an item’s location and turnaround. When an item is either removed or entered into inventory its Product Description, Lot #, and Location are scanned from the shelf label by a portable data entry terminal which communicates this information back to the company’s computer mainframe via radio frequency. The quantity of product removed from inventory is entered separately (by the user) into the portable data terminal for relay to the mainframe so that the current inventory level is also registered within the mainframe. Product re-order points within the computer mainframe are set-up to recognize when an item needs to be replenished via the release of a Purchase Order to a given supplier.