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Department of Defense Radio Frequency Identification (RFID)


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Department of Defense Radio Frequency Identification (RFID)

  1. 1. Department of Defense Radio Frequency Identification (RFID) Brad Cougher Office of the Under Secretary of Defense Supply Chain Integration June 3, 2008
  2. 2. Agenda <ul><li>What is RFID? </li></ul><ul><li>DoD RFID Vision and Commitment </li></ul><ul><li>RFID Policy, Contractual Requirements and Compliance </li></ul><ul><li>Process Efficiencies Gained </li></ul><ul><li>RFID at the Item Level </li></ul>
  3. 3. What Is RFID? Radio Frequency Identification An automatic identification technology that stores and retrieves data using transponders (tags). It is a means of identifying a unique object or person using radio frequency transmission. <ul><li>How does it operate? </li></ul><ul><li>Tags are affixed to objects . </li></ul><ul><li>Tags can be read remotely by a reader over a range of distances. </li></ul><ul><li>Readers then either send tag information over the enterprise network to back-end systems for processing or display the tag info to the end-user. </li></ul>
  4. 4. The DoD RFID Vision Provide first-class, knowledge-enabled logistics support to the warfighter by improving process efficiencies. RFID is a tool to obtain the benefits of Knowledge-Enabled Logistics Support Outcomes of Fully Automated Visibility & Management of Assets <ul><li>Increased efficiency & accuracy — virtually instantaneous </li></ul><ul><li>Expedite transaction processing — No line of sight required </li></ul><ul><li>Enable “triggered” processes or automation — Receipt, in-check, manufacturing operations, alarms, etc. </li></ul><ul><li>Improve product visibility — “See” products, perhaps in real-time </li></ul><ul><li>Identify discrete levels — Track & trace and authentication </li></ul>
  5. 5. DoD Committed to Two Types of RFID in the DoD Supply Chain <ul><li>Active RFID — Provides in-transit asset visibility of large consolidated shipments </li></ul><ul><ul><li>Applied to freight containers, air pallets, large engine containers </li></ul></ul><ul><ul><li>Suppliers rarely required to apply active RFID tags </li></ul></ul><ul><ul><li>No DFARS Clause requiring active tags </li></ul></ul><ul><li>Passive RFID — Enables business process efficiencies in receiving, shipping </li></ul><ul><ul><li>Applied to cases, pallets (warehouse) </li></ul></ul><ul><ul><li>Wide-scale commercial implementations </li></ul></ul><ul><ul><li>Supplier contractually obligated to apply passive tags to cases and pallets in accordance with DFARS </li></ul></ul>
  6. 6. RFID Implementations will Enable Supply Chain Shipping and Receiving Process Efficiencies Work with DoD Suppliers Work with DoD Services/Agencies Manufacturers/ Suppliers Transportation/Supply Depots Port of Embarkation /Debarkation Distribution Centers/Depots Customers DoD’s passive RFID initiative is a coordinated effort with two parts.
  7. 7. Components of the Passive RFID DFARS Clause <ul><li>Covers: </li></ul><ul><ul><li>Classes of Supply that require tagging </li></ul></ul><ul><ul><li>Exclusions </li></ul></ul><ul><ul><li>Specific Ship-to Locations for which tagging is required </li></ul></ul><ul><ul><li>Advance Shipment Notice </li></ul></ul><ul><li>The DFARS facilitates the DoD Supplier’s role in RFID-enabled business processes to transform the DoD Supply Chain. </li></ul><ul><li>The DFARS is evaluated and updated as often and as appropriate as necessary. </li></ul><ul><ul><li>Recent examples are: </li></ul></ul><ul><ul><ul><li>Pharmaceuticals </li></ul></ul></ul><ul><ul><ul><li>Additional Locations </li></ul></ul></ul>
  8. 8. <ul><li>Two Major Requirements for Suppliers </li></ul><ul><ul><li>Passive RFID Tagging at the case and pallet level in accordance with the Passive RFID DFARS Clause and the Supplier Implementation Plan </li></ul></ul><ul><ul><li>Advance Shipment Notice (ASN) via User Defined File/File Transfer Protocol (UDF/FTP), Electronic Data Interchange (EDI) 856, or Web Page Entry </li></ul></ul><ul><li>Specific Requirements : </li></ul><ul><ul><li>Data encoded on tag must be unique. </li></ul></ul><ul><ul><li>Supplier must ensure the passive tag affixed to package is readable. </li></ul></ul><ul><ul><li>Passive tag is affixed at the appropriate location on the specified level of packaging in accordance with MIL-STD-129P (Section 4.9.2) tag placement specifications. </li></ul></ul><ul><ul><li>Contractor required to use tag identity types in accordance with the details located at: http:// . </li></ul></ul><ul><ul><li>Contractor electronically submits an advance shipment notice in accordance with procedures at http:// . </li></ul></ul><ul><li>A Passive RFID Supplier Information Guide that contains information detailing requirements for compliance is located at . </li></ul>Passive RFID Contractual Requirements Remain Constant
  9. 9. <ul><li>In just 6 months time, DLA issued 170,501 awards to 5,174 suppliers with contracts that had the RFID DFARS clause. </li></ul><ul><li>The 5,174 suppliers represent 49% of DLA’s active supplier base. </li></ul><ul><li>DLA is communicating with suppliers on non-compliant shipments. </li></ul>Application of Passive RFID Clause Continues to Grow August 2007 through January 2008 Suppliers Tagged Materiel
  10. 10. <ul><li>Identifying Process Improvements Using RFID </li></ul>
  11. 11. Identifying Process Efficiencies using Passive RFID Continuous Process Improvement (CPI) Root cause analysis Issue Identification Accurate measurement RFID Middle-ware Actual Movement of Materiel System Transaction We need to understand this gap Identify issues with the process between these two points Logistics System Passive RFID provides a new data point — revealing actual materiel movement more discretely for the first time.
  12. 12. RFID Middle-ware RFID Middle-ware RFID Middle-ware Retail Logistics System Logistics System Logistics System New RFID Data Point Provides Additional Insight within Response Time Segments Arrival Receipt Transaction Departure Shipment Transaction Departure Shipment Transaction Storage Depot Time Transportation / Theater Time Distribution Depot Retail Facility Trans-shipment Point
  13. 13. RFID Reveals Potential Areas for Improvement at Container Consolidation Point RFID Middle-ware Logistics System Materiel loaded onto the truck trailer System transaction indicating truck departure Transportation Time The average time to build a container load at the CCP was over 3 days In-transit to the Customer Average = 3.33 days The average time to build a container was variable
  14. 14. RFID Reveals Potential Areas for Improvement at Retail Sites RFID Middle-ware Retail Logistics System Actual Arrival of Materiel (Visibility Transaction) System Receipt Transaction The new data makes this process visible for analysis. Transportation Time Site A had an average receipt posting of 0.3 days. Site B had an average receipt posting of 8.5 days. Opportunity : Reduce receipt take-up time Business Benefits : Materiel to the customer more quickly, Increased throughput
  15. 15. RFID Reveals Precise Materiel Movement, Enabling Lean Six Sigma Process Analysis * RFID LRT Mean = 32 days STDev = 17.5 days *System LRT Mean = 43.5 days STDev = 24 days 68% of requisitions actually arrived within the delivery target of 37 days compared to 56% of system receipts. TDD Target
  16. 16. Storage Depot Time Transportation / Theater Time Arrival Receipt Transaction Departure Shipment Transaction Departure Shipment Transaction Potential Improvements Will Have Cumulative Effect across the DoD Supply Chain 1-day improvement* 2-day improvement* 8-day improvement* 11-day improvement* *days improvement are examples only Trans-shipment Point Distribution Depot Retail Facility
  17. 17. Implementing RFID in the DoD Supply Chain <ul><li>Passive RFID provides a new data point. </li></ul><ul><ul><li>Captures precise measurement of materiel flow </li></ul></ul><ul><ul><li>Identifies potential opportunities for improvement </li></ul></ul><ul><ul><ul><li>Improve business processes (Lean Six Sigma approach) </li></ul></ul></ul><ul><ul><ul><li>Timely system updates </li></ul></ul></ul><ul><li>Even initial implementations at small sites yield opportunities for improvement. </li></ul><ul><li>Additional implementation analysis will continue. </li></ul>
  18. 18. <ul><li>Using RFID at the Item Level </li></ul>
  19. 19. 2D Data Matrix RFID Tag Item Identification using the 2D Data Matrix 2D Data Matrix part mark is still required Item Identification using RFID Aerospace Community Has Expressed Interest in Using RFID as an Additional Technology for Item Identification The UID policy is not changing to include RFID
  20. 20. <ul><li>For additional information, visit: </li></ul><ul><ul><li>DoD RFID Policy </li></ul></ul><ul><ul><li>DoD RFID Supplier Implementation Plan </li></ul></ul><ul><ul><li>DoD Suppliers’ Passive RFID Information Guide </li></ul></ul><ul><ul><li>MIL-STD-129P(3) (Updated with RFID changes) </li></ul></ul><ul><ul><li>Wide Area Workflow (WAWF) Information </li></ul></ul><ul><ul><li>Frequently Asked Questions (FAQs) </li></ul></ul><ul><ul><li>Lessons Learned </li></ul></ul><ul><li>You can ask the team any RFID-related question through the following email address: [email_address] </li></ul>For Your Information