The purpose of this research is to apply RFID technology to inventory flow management and analysis and performance evaluation for handtools company. In this research, the processing time of standard of procedure of warehouse and production department is evaluated and compare to the new one generated by introducing RFID technology to the procedures. The research results showed that there was a total 64-percent manpower off after the RFID technology was introduced in the case company; and that the RFTD system effectively reduced the error rate to zero from human's negligence, accurated the quantity of inventory and moved up the whole working performance.