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  • 1. RFID Handheld Readers Manufacturing Division (FA #3) Kim Osborn Han Yang Nav Gill
  • 2. What is RFID? <ul><li>RFID stands for Radio-Frequency IDentification . The acronym refers to small electronic devices that consist of a small chip and an antenna. </li></ul><ul><li>The chip typically is capable of carrying 2,000 bytes of data or less </li></ul><ul><li>The RFID device serves the same purpose as a bar code or a magnetic strip on the back of a credit card or ATM card; it provides a unique identifier for that object. And, just as a bar code or magnetic strip must be scanned to get the information, the RFID device must be scanned to retrieve the identifying information. </li></ul>
  • 3. Impact on Manufacturing <ul><li>RFID information can be used to ensure that the correct labor, machine, tooling, and components are available and ready to use at each processing step, thereby eliminating paperwork, and reducing downtime </li></ul><ul><li>By tagging raw materials with detailed specification information, alerts could be automatically triggered at mixing operations if an incorrect formulation is imminent. This can help reduce scrap rates and increase the degree of reliability and quality in processing </li></ul><ul><li>By combining RFID with existing manufacturing information systems such as ERP, a much more potent information supply can be created that can drive production efficiencies, asset utilization, quality and other production measures to much higher levels. </li></ul>
  • 4. Impact on petGRO <ul><li>Increases in productivity </li></ul><ul><li>Frees up labor and directs more focus towards value adding tasks </li></ul><ul><li>Increases in revenue </li></ul><ul><li>Reduce stockouts because of greater inventory visibility </li></ul><ul><li>Shorter cash to cash cycle </li></ul><ul><li>Theft prevention </li></ul>
  • 5. RFID Readers Motorola VS Intermec <ul><li>Motorola MC9090-G Handheld RFID Reader </li></ul><ul><li>FINANCIAL INFORMATION </li></ul><ul><li>Approximate Initial Cost: $35,000 </li></ul><ul><li>Implementation Time Span: 12 Months </li></ul><ul><li>Training Expenditures: $20,000 </li></ul><ul><li>*TCO: $131,500 </li></ul><ul><li>*Projected Savings: $330,000 </li></ul><ul><li>*R.O.I: 135.11% </li></ul><ul><li>* Based on 5 year span </li></ul>
  • 6. <ul><li>Intermec IP4 Portable RFID Reader </li></ul><ul><li>FINANCIAL INFORMATION: </li></ul><ul><li>Approximate Initial Cost: $25,000 </li></ul><ul><li>Implementation Time Span: 6 </li></ul><ul><li>Training Expenditures: $20,000 </li></ul><ul><li>*TCO: $145,000 </li></ul><ul><li>*Projected Savings: $425,000 </li></ul><ul><li>*R.O.I: 175.07% </li></ul><ul><li>Based on 5 year span </li></ul>
  • 7. Motorola Advantage <ul><li>Proven communication leader </li></ul><ul><li>Large display provides exceptional clarity and contrast for easy reading in a wide variety of lighting conditions </li></ul><ul><li>Bluetooth adds to productivity, enabling wireless synchronization, printing and more </li></ul><ul><li>Motorola technical support </li></ul><ul><li>Supports simple to complex multimedia applications </li></ul><ul><li>rugged construction delivers an extraordinarily low total cost of ownership through reduced repair and downtime costs </li></ul>
  • 8. Motorola Disadvantages <ul><li>Higher initial costs </li></ul><ul><li>Longer implementation period </li></ul><ul><li>Lower ROI </li></ul><ul><li>Lower long run savings </li></ul>
  • 9. - Advantages <ul><li>Over 40 years of experience in data collection automation </li></ul><ul><li>Over 10 years of experience in RFID solutions and services </li></ul><ul><li>Established relationship with SAP </li></ul><ul><li>Strategic Alliance with Metro Group </li></ul><ul><li>Nestle is a brand partner of Metro Group </li></ul><ul><li>Integrated circular polarized antenna reads tags in any orientation </li></ul><ul><li>Longer battery life than MC9090-G </li></ul><ul><li>Easy to use interface and functionality </li></ul><ul><li>Higher R.O.I </li></ul>
  • 10. - Disadvantages <ul><li>Less communications experience compared with Motorola </li></ul><ul><li>Less experienced in RFID technologies </li></ul><ul><li>Intermec has more experience within the European markets because of alliance with Metro Group opposed to North American experience </li></ul><ul><li>Training costs and Total Ownership Costs are higher compared to Motorola </li></ul>
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  • 17. Decision <ul><li>Considering all the data, we are confident Intermec is the most suitable provider for the RFID handheld reader </li></ul><ul><li>Decision Criteria: </li></ul><ul><li>Offers highest ROI figures </li></ul><ul><li>Projected savings are higher, allowing petGRO further investment opportunities </li></ul><ul><li>Established strategic alliance with Metro Group which is partners with Nestle. </li></ul><ul><li>Time is money and Intermec provides a shorter implementation period </li></ul>
  • 18. Final Thoughts <ul><li>Given the competitive environment petGRO is operating in, RFID provides us with an opportunity to remain competitive and further gain a competitive advantage by integrating our best practices with RFID technologies. </li></ul><ul><li>RFID is the future and petGRO should catch this rising trend as an early adopter. </li></ul><ul><li>RFID helps other FA’s including: </li></ul><ul><ul><li>Shipping and Receiving </li></ul></ul><ul><ul><li>Procurement </li></ul></ul><ul><ul><li>Logistics </li></ul></ul><ul><li>IP4 will be pay for itself after year 3 </li></ul>
  • 19. Thank You for your time Mr. Barquer

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