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Apics 2009

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Presentation for APICS Nashvile on RFID.

Presentation for APICS Nashvile on RFID.


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  • 1. October 20 th , 2009 Welcome Nashville APICS Group Presenter: Paul Reed, President, BRS 1585 Mallory Lane, suite 105, Brentwood, TN 37027 615-377-8849 x2903 [email_address]
  • 2.
    • What is RFID Technology?
    • How does it work?
    • Who currently uses RFID?
    • How is RFID being used today?
    • What are the limitations?
    • What are the advancements?
    • What does the future of RFID look like?
    • How do I implement RFID?
    RFID Outline Questions we’ll cover:
  • 3.
    • RFID = Radio Frequency Technology
    • RFID uses a Radio Frequency Field to identify a person, animal or object
    • It includes an antenna, transmitter and a reader and a tag
    • RFID offers:
    • Faster and Unique ID for track & trace
    • Security: Not easily replicated or counterfeited
    • Large memory and high read-write
    What is RFID?
  • 4.
    • RFID Tag acts as transmitter with memory (microchip) embedded within
    • Types of Tags:
      • Active: use a battery to transmit a signal (~500 + ft)
      • Passive: No battery but draws power from reader (~50ft)
    Components of RFID
    • Reader: An electronic device used to retrieve data from a tag
    • Antenna: Receives and transmits electromagnetic waves
  • 5. How Does RFID Work? Reader Antenna Reader broadcasts signal through antenna RFID Tag Tag receives signal Computer System Reader sends info/data to computer system for collecting, logging and processing Tag is charged with enough energy to send back an identifying response
  • 6.
    • Barcode technology must look to scan, one item at a time
    • RFID can scan the chip without visual contact
    • RFID can scan numerous items (10-100 tags) simultaneously
    • Barcode = Sight
    • RFID = Sound
    RFID vs. Barcode
  • 7.
    • Supply Chain Management
    • Passports or ID cards
    • EZ Pass on Toll Roads
    • Access Cards for Security
    • Airport Luggage
    • Library Check outs
    • Real time inventory control
    • Tracking surgical equipment
    • Homeland Security
    • Counterfeit Identification
    • Ensures Quality and freshness of produce
    How is RFID used Today?
  • 8.
    • Department of Defense
    • Healthcare Facilities
    • Airports
    • Warehouses
    • Ranchers (Livestock)
    • Wal-Mart
    • Many more
    Who uses RFID?
  • 9.
    • RFID cannot not easily function near or on
      • Liquid
      • Metal
    • Radio Frequency Interference
      • Too many RF devices can interrupt the signal
    • Environment
      • Outside (extreme cold or heat)
    • Readers don’t need line of sight to read tag but can only read in certain area
    Limitations
  • 10.
    • New Tags designed to function on metal
    • Tags and readers built to withstand extreme conditions
      • Humidity
      • Extreme cold and heat
    • New Equipment with Further Read ranges
      • 500+ feet
    • RFID in Healthcare
      • Medical/surgical devices, O.R.
    • RFID in Fashion
      • Counterfeit prevention
    • RFID in Trucking
      • Tire monitoring: pressure, mileage, rotation
    Advancements in RFID
  • 11.
    • Automated Grocery Store Check outs
      • A World Without Checkout Stations
    • RFID Patient locator in Hospitals in case of disaster
    • RFID teaches the deaf how to sign
    • Strides towards an RFID robotic seeing eye dog
    • RFID in Agriculture:
      • Use of RFID to monitor strawberry temperatures during shipments
    The Future of RFID
  • 12.
    • Case Study 1: Chicago Aquarium
      • RFID Interactive submarine
    • Case study 2: Pneumonia in Pakistan
      • Doctors track patients and symptoms
    • Case Study 3: Newmont's Leeville Gold Mine (NV)
      • Use RFID to track workers and equipment
    Case Studies
  • 13.
    • Problem: A medium size Belgian Logistics company
    • was debating the use of RFID but didn’t know the ROI
    • Goals:
      • To deploy the use of Passive Ultra High Frequency Tags (UHF) that meet the EPC standards
      • To use a permanent UHF tag for each container
    • Advantage: Deployment of RFID typically saves labor cost and reduces error
    • Disadvantage: If RFID does not save labor costs near 50% or reduce errors by 10%, the ROI may not be worth deployment
    Logistics Case Study Overview
  • 14.
    • Step 1:
      • The Logistics Company tested and recorded their current shipping and processing time (~ 30-40 shipments/wk)
    • Step 2:
      • The Company then deployed and tested their average time and shipments with RFID
    Logistics Case Study – RFID and ROI
  • 15.  
  • 16.
    • Total cost for RFID implementation for Logistics Company (i.e. tags, readers, handheld readers, software, training and maintenance) is ~ $172,200
    • The average Belgian employee’s salary = $26.05/hr
    • Cost of 1 employee’s labor for average shipment without RFID= $69.30 (2.66 hours at employee’s $26.05 pay rate)
    • Without RFID= 35 containers/wk which equals 1,680 containers/year
    • 1,680 containers x $69.30 = $116, 424 total annual labor cost per employee
    The Actual Cost without RFID
  • 17.
    • Total time for shipment with RFID recorded as 36min. 30 seconds VS. 2.66 hours without (as displayed on chart)
    • Total cost for shipment with 1 employee with RFID equals: $15.89 (.61 hours x $26.05)
    • Total Annual cost for 1,680 containers = $26,695 (15.89 x 1,680)
    • Total Annual Savings = $89,730 ( $116, 424 - $26,695 )
    The Actual Cost with RFID
  • 18. ROI with RFID Solution: Payback period would be around 24 months, meaning implementation of RFID would be a wise decision Implementation Year 1 Year 2 Year 3 Savings in Labor Cost $89,730 $89,730 $89,730 Implementation Cost $172,200 Maintenance Cost $10,000 $10,000 $10,000 Net Savings -$172,200 $79,730 $79,730 $79,730
  • 19.
    • Know RFID Standards
    • Technological updates found on EPC Global website: epcglobalinc.org
    • Evaluate your resources
    • Determine times for compliance and develop a budget for implementation
    • Estimate your ROI for the project
    • Determine if you want to incorporate a compliance package (i.e. Wal-Mart, DoD, Metro) with your existing auto tracking
    Implementation
  • 20. Thank You If you have any questions about RFID, Barcode Needs or Custom Software, Think BRS! www.ThinkBRS.com Paul Reed, President 1585 Mallory Lane, suite 105, Brentwood, TN 37027 615-377-8849 x2903 [email_address]