Use of RFID Technology for Automatic Job Costing

Use of RFID Technology for Automatic Job Costing

Jeremy C. Bellah (College of Business Administration, Sam Houston State University, Huntsville, TX, USA), Kunpeng Li (Department of Management, Utah State University, Logan, UT, USA), Pamela J. Zelbst (College of Business Administration, Sam Houston State University, Huntsville, TX, USA) and Qiannong Gu (Department of Information Systems and Operations Management, Ball State University, Muncie, IN, USA)
Copyright: © 2013 |Pages: 17
DOI: 10.4018/jissc.2013070105
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Abstract

Radio frequency identification (RFID) technology has been used to collect information for use in information systems that support knowledge-based business decisions. Most applications involve using the technology for automatic identification and tracking within facilities and supply chains. However, there are a number of other uses for the technology in the context of supporting knowledge-based decisions. By describing an innovative use of RFID technology, this study contributes to research and practice in the area of knowledge-based tools. Specifically, the process created in this study uses RFID technology to automatically and accurately calculate job costing information for fixed-position projects. By implementing the methods described in this process, business professionals can reap important benefits from the knowledge generated by the system.
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Accurate information is crucial in the context of managing large projects. It is essential that businesses that perform work on large, labor-intensive projects have accurate job costing information, particularly with the labor part of the job. The motivation for this project came from our interaction with a business that faced challenges with respect to the job costing of projects. This business had many large projects going at the same time, and their employees worked intermittently on all of the projects. At the end of the week, the project foreman estimated the amount of time that each employee worked on each project for job costing purposes. His estimates were not very accurate, so neither was the job costing information.

Our research objective was to develop an innovative use of RFID technology to address the challenge of collecting accurate job costing information. Our idea was to equip workers with RFID tags and collect information automatically at reading stations located at the individual project locations. After collecting the data, an information system would have to be developed to make use of the data for the purposes of job costing.

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