Honeywell And Dynamic Systems Inc. Help Herzog Contracting Corporation Implement An Industry-Leading Asset Management System

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 construction of Denver’s West Corridor Light Rail Project in 2009, company leaders recognized the opportunity to implement an asset management solution and enlisted Dynamic Systems Inc., a software developer specializing in bar code data collection applications, to help. Herzog and Dynamic Systems selected Honeywell’s Dolphin® 7850 mobile computer and Focus® 1690 hand-held area-imaging scanner, paired with CheckMate Toolroom software and pre-printed 1D and 2D bar codes to label, track and monitor the tools and equipment used for the light rail project. Since implementation in May of 2009, tool and equipment replacement has lessened to the point that the company is saving an estimated $20,000 per month.

Project such as the construction of Denver’s West Corridor Light Rail Project involves a variety of trade work—from bridge building to carpentry to ditch digging. All of these elements require different tools and equipment, from hammers and drills to shovels and GPS receivers. Until recently, there was no asset system in place to track equipment needs. Each foreman was responsible for his or her crews’ set of tools, and as such, it was a common occurrence for tools and equipment to be lost or misplaced, which the company knew was causing a major impact on overall profitability. Without a proper tracking system, Herzog estimated that it replaced at least 10 percent of all tools purchased over the course of a project. On one recent project in particular, the company purchased more than 1,000 replacement tape measures.