5W2H Analysis for Operations Traceability

"We need better traceability."

But what does that actually mean? Tracking every item individually? Every batch? Just major movements? And what form should it take—RFID tags? Barcodes? Dashboards? Integration with your ERP?

The problem is that most organizations jump directly to technology selection without first clarifying what they're actually trying to track or why. They ask "Should we use RFID or QR codes?" before answering "What exactly are we tracking, and what do we need to do with that information?"

The result is often predictable: pilots that don't scale, systems operators avoid using, and technology that solves the wrong problem.

A better approach:

Start by systematically defining your requirements using 5W2H analysis.

What is 5W2H Analysis?

5W2H is a framework that forces you to think systematically about your requirements by answering seven questions:

Originated from Japanese quality management (Toyota Production System), 5W2H is used across industries to define scope, requirements, and success criteria before implementation.

For operations traceability, 5W2H reveals:

• Hidden stakeholders who need access to data
• Attributes you didn't realize mattered
• Volume thresholds that dictate technology choices
• Integration complexities that affect timeline and budget
• ROI drivers that justify investment

Let's walk through each question with real-world examples from companies we work with.

WHO: Identifying Stakeholders and Data Needs

This seems simple, but it's where most requirements documents fail. "Operations team" is too vague.

Real example from BigBasket sourcing centers:

Each stakeholder needs different views of the same data. The framework forces you to list them all before you start coding dashboards.

Who will capture/enter the data?

This determines whether automation is necessary:

• Manual entry → Operators fill forms, type into system (error-prone, delayed)
• Semi-automated → Operators scan barcodes/QR codes with mobile app (fast, accurate)
• Fully automated → Fixed RFID readers or sensors capture data automatically (no human intervention)

Vedanta: Automated RFID readers at gates capture copper cathode pallet movements yard-to-plant. Handheld readers for manual putaway and issue vouchers. The mix of automation and flexibility emerged from requirements analysis—not from a vendor pitch.

WHAT: Defining Your Unit of Traceability

"Inventory" is too broad. Be specific:

• Items - Individual products with serial numbers
• Batches - Group of items produced together
• Cartons - Shipping unit
• Pallets - Storage/transport unit
• Returnable containers - Crates, bins, pallets that circulate
• Assets - Equipment, tools, vehicles

Your "Unit of Traceability" drives everything else.

Example 1: BigBasket

What attributes must be captured?

For each unit of traceability, what data matters?

Food manufacturing (GoDesi): Raw material batch number (for recall traceability), expiry date (FIFO enforcement), weight (recipe accuracy, waste tracking), storage location (cold storage vs dry), quality grade (A/B/C classification).

Cold chain (Flipkart): Temperature (every 5 minutes), humidity (product quality), door open/close events (explains spikes), location (freezer/chiller/tropical zone), alert history (supervisor notifications).

WHERE: Mapping Physical and Digital Checkpoints

List every physical checkpoint where data must be captured:

Cement plant stores example:

1. Plant gate (truck weighment, RFID vehicle tag scan)
2. Receiving dock (physical verification vs PO)
3. QC lab (quality approval before GRN)
4. Stores entrance (GRN posting, material tagging)
5. Bin location (putaway with location verification)
6. Issue counter (operator scans material + work order)
7. Cycle counting (RFID bulk scan or bin-by-bin QR verification)

Each checkpoint needs hardware (scanner, reader, scale) and software (mobile app, fixed terminal). Map all checkpoints before you budget for hardware.

Where will data be visible/accessed?

Different stakeholders need different interfaces:

• Operators: Mobile app (scan, see item details, confirm action)
• Supervisors: Web dashboard (real-time operations view, alerts)
• Management: Reports and KPIs (inventory accuracy, cycle time, wastage)
• ERP/WMS: Automated data sync (GRN, issue vouchers, stock updates)
• Auditors: Historical records (compliance documentation, batch traceability)

Microtrol sterilization: QR-based workflow captures data at 8 checkpoints. Data visible in: (1) operator mobile app for scanning and readings, (2) customer portal for real-time job status, (3) internal dashboard for capacity planning, (4) compliance reports for dosimeter readings.

WHEN: Timing and Frequency Requirements

Timing drives technology choices:

• Real-time: IoT scales, RFID fixed readers, BLE sensors sync instantly to cloud
• Batch: Handheld scanners sync at end of shift (offline-capable mobile apps)
• Periodic: Manual forms entered into system weekly (error-prone, avoid)

When do you need alerts/notifications?

Flipkart cold chain:

• Temperature > -18°C for > 10 minutes → Instant SMS to supervisor
• Freezer door open > 5 minutes → Audible alarm + app notification
• BLE sensor offline > 30 minutes → IT team alerted (connectivity issue)

Cement plant:

• Material not binned within 4 hours of GRN → Alert stores manager (putaway delay)
• Cycle count variance > 5% → Freeze bin, require supervisor approval
• Critical spare part stock < minimum → Auto-trigger purchase requisition

When should data sync to ERP?

This affects process flow and real-time accuracy:

• Instant sync: GRN posted immediately after QC approval (real-time inventory accuracy)
• Delayed sync: Issue vouchers batched and synced hourly (reduces ERP load)
• Manual reconciliation: Daily verification of discrepancies (legacy approach, avoid)

WHY: Understanding Business Drivers and Goals

"Better traceability" is not a goal. Specific drivers include:

• Compliance: FSSAI batch traceability, ISO 9001 documentation, DGFT audit requirements
• Cost reduction: Reduce wastage by 20%, eliminate manual data entry (labor savings)
• Quality improvement: Faster root cause analysis for defects, enforce FIFO for expiry-sensitive items
• Theft prevention: Real-time asset location, unauthorized movement alerts
• Process optimization: Identify bottlenecks, reduce cycle time, improve throughput

Why is the current process insufficient?

Cement plant manual stores:

• Physical Inventory (PI)/Physical Verification (PV) takes 2 weeks, shuts down normal operations
• Inventory accuracy: 85% (phantom inventory, missing items)
• GRN processing: 4-6 hours (manual data entry, verification delays)
• FIFO violations: Refractories expire, causing production quality issues (cascading cost)

Why now?

What triggered this initiative? Regulatory requirement? Competitive pressure? Expansion plans? Defining the trigger helps prioritize and justifies budget.

HOW: Technology Selection Based on Requirements

Now—and only now—do we select technology.

The 5W2H analysis reveals the right choice:

See our detailed guide: RFID vs Barcode vs QR: Choosing the Right Technology

How will operators use the system?

User experience drives adoption:

• Smartphone apps: Intuitive, minimal training, leverage existing devices
• Handheld terminals: Rugged, barcode/RFID-capable, works offline
• Fixed readers: Zero operator interaction (best for autonomous tracking)
• Web dashboards: Supervisors monitor, approve exceptions, generate reports

HOW MUCH: Volume, Budget, and ROI

Volume dictates infrastructure:

Low volume (< 100 transactions/day): Simple mobile app + QR codes, cloud-hosted, minimal training.

Medium volume (100-1000 transactions/day): Mix of technologies, ERP integration, dedicated support team. IoT scales with QR or barcode scanner typically run $500-$2,000 per unit depending on features.

High volume (1000+ transactions/day, multiple locations): Automated workflows (fixed RFID readers, IoT scales with RFID scanners), on-premise or hybrid cloud, full-time support. Multi-location deployments benefit from IoT scales at each checkpoint for automated capture and validation.

Pilot budgeting considerations:

Small pilot (1 location, QR/barcode): Modest hardware investment (scanners, label printers), software platform setup, basic ERP integration, and operator training. Typically lower cost and faster to implement.

Medium pilot (1 location, mixed technologies): Moderate hardware for RFID or BLE, more complex ERP integration, real-time dashboards, dedicated support team. Higher upfront cost but more automation.

ROI drivers (not the specific numbers):

Typical benefits emerge from: reduced manual data entry labor, faster cycle counting and physical verification, better inventory accuracy that prevents production delays, reduced wastage through FIFO enforcement, and time freed up for higher-value work. The specific numbers depend entirely on your operation's size, margins, and current pain points.

Common Mistakes to Avoid

Mistake 1: Technology-First Thinking

"We need RFID" → Why? What are you tracking? How much volume?

Often, QR codes or barcodes are sufficient. RFID is powerful but carries higher hardware and implementation costs. Let requirements drive technology choice, not the other way around. Many pilots stall when they realize the chosen technology doesn't fit how operators actually work or what the business actually needs.

Mistake 2: Trying to Track Everything

"We want complete traceability of all materials."

Start with one high-impact use case that you can solve in 2-3 months:

• Highest-value inventory items or pallets
• The single biggest operational pain point
• A regulatory requirement (batch traceability, compliance documentation)

Prove the approach with measurable improvements. Then expand to other use cases. Scope expansion is a common cause of project delays.

Mistake 3: Ignoring Existing Workflows

Operators won't adopt systems that slow them down or add steps.

Best practice: Shadow operators for a day. Understand current process. Design system that fits their workflow, not the other way around.

Mistake 4: Vague Success Criteria

"Better visibility" is not measurable.

Define specific KPIs:

• Inventory accuracy: 85% → 99%
• Cycle time: 4 hours → 1 hour
• Wastage: $1M/year → $200K/year

From Analysis to Implementation

Once you complete your 5W2H analysis:

1. Prioritize requirements: Which are must-haves vs nice-to-haves?
2. Select pilot location: Choose one facility/process to prove concept
3. Choose technology: Map requirements to QR/RFID/BLE (use our technology comparison guide)
4. Define success metrics: Baseline current state, set improvement targets
5. Schedule vendor demos: Use 5W2H document as RFP for vendor discussions
6. Run pilot: 2-3 months to test workflows, train operators, measure results
7. Refine and scale: Fix issues, then roll out to remaining locations

Key point: Starting with a clear requirements framework prevents wasting time and money on technology that doesn't fit the actual operational needs.

Real-World Success Stories

Vedanta

5W2H analysis identified high-value copper cathode pallet tracking as priority, especially for autonomous movement tracking through the yard. Selected RFID for gate readers, QR codes for manual operations. The framework helped stakeholders agree on a hybrid approach that worked for both automated and manual workflows.

BigBasket

5W2H revealed returnable crate tracking as primary need (2.5M crates across 670+ locations). The framework helped establish that QR codes were sufficient—RFID would have been significantly more expensive per crate. Smartphone-based scanning leveraged existing infrastructure. The clear requirements prevented gold-plating the solution.

GoDesi Sweets Manufacturing

5W2H identified FSSAI compliance and FIFO enforcement as drivers. Barcode/QR for RM-to-FG traceability with ERPNext integration. IoT scales with barcode scanners at key checkpoints for automated weight validation. Complete factory operations platform in production.

How to Use the 5W2H Template

1. Schedule a workshop: Get stakeholders from operations, IT, finance, and quality in one room (2 hours)
2. Work through collaboratively: Fill out the main template, discuss conflicting assumptions
3. Assign priorities: Mark each requirement as High/Medium/Low
4. Review examples: See how cement plant, cold chain, and food manufacturing completed their analyses
5. Create action items: Convert analysis into implementation tasks with owners and deadlines
6. Map to technology: Use Technology Selector sheet to match your requirements to solutions
7. Share as RFP: Use the completed analysis to brief vendors and set expectations