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
