Automotive Industry Action Group
    The Need for Traceability
         July 27, 2006
        Ohio University


          ...
Agenda

•   Background on AIAG
•   What drives traceability in automotive
•   Overview of AIAG’s automatic identification
...
THE AUTOMOTIVE INDUSTRY IS STANDARDS DRIVEN




                                              3
About AIAG

Organization
• Globally recognized trade association
• 1,500 member companies
    – OEMs
    – Suppliers
    –...
AIAG Steering Committees

•   Materials Management
•   Electronic Commerce
•   Quality
•   Collaborative Engineering
•   O...
Materials Management Committee

•   Materials Management Operations Guideline
•   RFID
•   Business Continuity Planning
• ...
What Drives Traceability in Automotive
•   Warranty
•   TREAD Act




                                         7
Growing Pain Around
              Warranty
•   Automotive sector spending 1% to 3% of product
    revenue on warranty cost...
Exact Information is Available Now

   2005
   •   Auto Warranty Costs = $13,964,561,455
          1.78% of worldwide sale...
TREAD Act:
   Early Warning    The Perfect
    Reporting
                      Storm
       November 1, 2000
     Transpor...
Worldwide Reach of
                      “Substantially Similar”
                            Products

                 Ma...
TREAD Act Reporting Highlights
•   Far more reaching than just tires…
•    Focus is on Early Warning Reporting (EWR)
    r...
RFID: The History
  Pre-50’s               1950’s                1960’s                 1970’s                 1980’s     ...
Current AIAG Publications
B-4 Parts Identification and Tracking Application
  Standard
B-10 Trading Partner Labels Imple...
B-4 Part Identification & Tracking
         Application Standard
Tells you what to mark
Addresses data fields, data iden...
B-10 Trading Partner labels
          Implementation Guideline
•   Specifications for container and pallet labels in
    t...
Revision to B-11 Tire Identification
                 Standard
•   Update of the AIAG B-11 Standard published in
    1994
...
AIAG B-11 Tire Tag                            Yesterday
 ANSI INCITS 256 (T6) and ISO/IEC 18000, Part 4 & Part 6 complian...
Demonstration Video

•   http://www.aiag.org/videos/index.cfm




                                           19
B-11 TIRE RFID STANDARD

               This is the first RFID item
              level tracking application
             ...
B-16 Global Transport Label Standard
     for the Automotive Industry
•   Global automotive labeling standard.
    –   Bas...
B-17 2D Direct Parts Marking Guideline

•   How to mark recommendations
•   Provides information for
    marking, verifica...
RFID…

     The Automotive Industry
is the Single Largest User of RFID
           Fact or Fiction?
“Automotive Industry Drives the RFID Market, Retail Still
Waiting For Shoppers”, According to ABI

                       ...
Radio Frequency
 Identification (RFID) -
Making the Right Choices
Application GM 1724 (B16) Global Common Shipping
Label + RFID = SMART LABEL

RFID inlay imbedded within label material



...
27
The AIAG Created the FIRST . . .

   Code 39 Standard (AIAG B-1 ‘84)
   Identifier Standard (AIAG B-6)
      (Created D...
Thank you & Contact Information

•   Email: mbrown@aiag.org
•   Phone: 248.358.9788
•   Web: www.aiag.org

•   AIAG RFID S...
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T4 - Brown.ppt

  1. 1. Automotive Industry Action Group The Need for Traceability July 27, 2006 Ohio University Morris Brown Program Manager Materials Management
  2. 2. Agenda • Background on AIAG • What drives traceability in automotive • Overview of AIAG’s automatic identification standards and guidelines • RFID • Q&A 2
  3. 3. THE AUTOMOTIVE INDUSTRY IS STANDARDS DRIVEN 3
  4. 4. About AIAG Organization • Globally recognized trade association • 1,500 member companies – OEMs – Suppliers – Service Providers • 50 full-time staff • Executives on loan from DaimlerChrysler, Ford and General Motors 4
  5. 5. AIAG Steering Committees • Materials Management • Electronic Commerce • Quality • Collaborative Engineering • Occupational Health & Safety • Truck & Heavy Equipment 5
  6. 6. Materials Management Committee • Materials Management Operations Guideline • RFID • Business Continuity Planning • Automatic Identification Data Collection • Returnable Containers • Customs • TREAD Act 6
  7. 7. What Drives Traceability in Automotive • Warranty • TREAD Act 7
  8. 8. Growing Pain Around Warranty • Automotive sector spending 1% to 3% of product revenue on warranty costs • TREAD Act requirements are increasing visibility in this area – NHTSA’s TREAD Act requires Vehicle Manufacturers to more comprehensively track and report product issues to the Federal Government. • And it’s not getting easier – Frequent Model Introductions – Increasing Product Complexity – Time Intensive Root Cause Diagnostics – Part and Platform Re-Use Grows 8
  9. 9. Exact Information is Available Now 2005 • Auto Warranty Costs = $13,964,561,455 1.78% of worldwide sales 2004 • Auto Warranty Costs = $12,729,138,182 1.65% of worldwide sales 2003 • Auto Warranty Costs = $11,933,347,464 1.77% of worldwide sales Source: Warranty Week-June 2006 9
  10. 10. TREAD Act: Early Warning The Perfect Reporting Storm November 1, 2000 Transportation Recall Enhancement, Accountability, and Documentation Act (TREAD Act) 10
  11. 11. Worldwide Reach of “Substantially Similar” Products Manufacturer’s HQ in Germany Sold in US The Venezuelan Assembled in Mexico Death Must be Reported to NHTSA • Sold in Venezuela •Death in Venezuela •Claim of Product Defect
  12. 12. TREAD Act Reporting Highlights • Far more reaching than just tires… • Focus is on Early Warning Reporting (EWR) requirements • Heart of TREAD Act is traceability • Reporting requirements are different if you are an OEM/tire manufacturer vs. a component supplier • First reports were due to NHTSA December 1, 2003 • Severe civil and/or criminal penalties for failing to report information in a timely manner 12
  13. 13. RFID: The History Pre-50’s 1950’s 1960’s 1970’s 1980’s 1990’s 2000’s • 1926: Baird’s • Over 350 direct - reference patents • 1973: Cardullo • MIT Auto-ID radio object • Harrington • 1952: Vernon patent Center formation detection “Active & patent “Application of • 1975 LASL • AIAG ARF1, • EPC™ the Microwave Loaded “Application introduced releases • 1935: Watson- Homodyne” Scatterers” research to • 1984: IDX/Allen Standard for RFID in the • National & Watt’s radar public sector Bradley install Automotive international patent GM System Industry” standards emerge • LASL spins-off October, 1991 • Smart shelves • WW II: Radar IDX & Amtech refined • 1966: Sensor- • 2003: RFID • Harris patent: matic & Check- • Fairchild, RCA • AIAG AIDC • 1991: AAR prominent in point EAS & Raytheon Workroup has Iraqi Freedom “Radio initiate pgms been involved standard •EPCglobal transmission with RFID since formed 2003 systems with • 1977: Electronic 1987 license plate for • 1994: All modulatable motor vehicles US railcars • 2002: AIAG B11 passive outfitted Tire & Wheel • 1948: Harry • Multiple early Standard Stockman - responder” adopter • 1997:US Army Communications • 1969: Mario installations rolls out TC- By Means of • 2005: Walmart Cardullo RFID AIMS II initial deadline Reflected Power concept • Vast number of companies • 1979: RFID enter RFID marketplace animal implants RFID TIMELINE • 1st Toll Collection System - Norway • Texas, Georgia / Oklahoma Tolls • Wide-scale US Roll-out Adapted from Interaction Design Institute RFID Project Presentation – 2002 Thanks to Dan Kimball, DoD Logistics AIT Office
  14. 14. Current AIAG Publications B-4 Parts Identification and Tracking Application Standard B-10 Trading Partner Labels Implementation Guideline B-11 Tire and Wheel Standard B-14 Guideline for the use of 2D symbols on Trading Partner Labels B-16 Global Transport Label Standard B-17 2D Direct Parts Marking Guideline 14
  15. 15. B-4 Part Identification & Tracking Application Standard Tells you what to mark Addresses data fields, data identifiers, numerous symbologies (linear & 2D), and provides definitions critical to this standard Specifications for both direct marking and labeling of individual parts, kits, & assemblies/subassemblies 15
  16. 16. B-10 Trading Partner labels Implementation Guideline • Specifications for container and pallet labels in the shipment, transport, and receipt of parts • Updated for 2004 to include Code 128 and 2D symbologies • Revision also includes quick receive bar code label to allow entire truck shipment to be received by scanning one or two simple bar codes. 16
  17. 17. Revision to B-11 Tire Identification Standard • Update of the AIAG B-11 Standard published in 1994 – New B-11 Mission Statement: To provide an electronic means of transferring data from the tire to anywhere it needs to go. – Standard to include the ability to use both labels and RFID tags
  18. 18. AIAG B-11 Tire Tag Yesterday  ANSI INCITS 256 (T6) and ISO/IEC 18000, Part 4 & Part 6 compliant  902 - 928 MHz for U.S. / 869 MHz for Europe  2450 MHz for Japan  Molded into tire, applied with adhesive, or label  1024 bits  ISO 15418/MH10.8.2 Data Identifiers  Successfully demonstrated in the U.S. & the E.U. Today  18000, Part 6c with User Memory  Molded into tire, applied with adhesive, or label  2048 bits  EPC as UII “MB=01”  ASC MH10 DIs for OEM data “MB=11”  User Memory ISO/IEC 15961/15962 compliant 18
  19. 19. Demonstration Video • http://www.aiag.org/videos/index.cfm 19
  20. 20. B-11 TIRE RFID STANDARD This is the first RFID item level tracking application standard in the world The work group has just updated this document to allow for retail information (EPCglobal syntax.) Document could be modified to track any asset (Returnable containers, racks, engines, transmissions, etc.) 20
  21. 21. B-16 Global Transport Label Standard for the Automotive Industry • Global automotive labeling standard. – Based on existing ISO, AIAG and Odette labels – Spirit of cooperation with Odette and JAMA/JAPIA – Mixed/Master label – Allows for RFID A1 A1 A2 A2 A3 A3 SHIP FROM SHIP FROM TO TO 2D2D SYMBOL BAR CODE B1 B2 B3 CUSTOMER REFERENCE CUSTOMER REFERENCE #1 CUSTOMER CUSTOMER ROUTING CUSTOMER REFERENCE LOGISTIC REFERENCE #1 ROUTING #2 C1 C1 CUSTOMER PART CUSTOMER PART NUMBER NUMBER D1 D1 D2D2 CUSTOMER CUSTOMER LICENSEPLATE LICENSE PLATE REFERENCE REFERENCE #2 #3 E1 E2 E2 E1 CUSTOMER CUSTOMER SUPPLIER SUPPLIER REFERENCE REFERENCE #3#4 21
  22. 22. B-17 2D Direct Parts Marking Guideline • How to mark recommendations • Provides information for marking, verification, and reading of Data Matrix and QR Code symbols marked directly on parts • Technologies addressed include laser, dot peen, and inkjet technologies 22
  23. 23. RFID… The Automotive Industry is the Single Largest User of RFID Fact or Fiction?
  24. 24. “Automotive Industry Drives the RFID Market, Retail Still Waiting For Shoppers”, According to ABI Despite all of the recent hype and excitement surrounding the introduction of radio frequency identification (RFID) technology in retail markets, the automotive industry will spend nearly thirty times more on the technology this year. Key applications of RFID 46% 28% technology in vehicles include immobilizers, automatic vehicle identification, and passive entry systems. http://www.abiresearch.com/abiprdisplay2.jsp?pressid=182 24
  25. 25. Radio Frequency Identification (RFID) - Making the Right Choices
  26. 26. Application GM 1724 (B16) Global Common Shipping Label + RFID = SMART LABEL RFID inlay imbedded within label material 26
  27. 27. 27
  28. 28. The AIAG Created the FIRST . . .  Code 39 Standard (AIAG B-1 ‘84)  Identifier Standard (AIAG B-6)  (Created Data Identifiers)  Shipping Label Standard (AIAG B-3 & B-5)  Part Identification And Traceability Standard (AIAG B-4 )  Global Transport Label Standard (AIAG B-16 - ‘02)  Tire & Wheel Identification Standard (Optical & RFID) - (AIAG B-11 – ‘02) 28
  29. 29. Thank you & Contact Information • Email: mbrown@aiag.org • Phone: 248.358.9788 • Web: www.aiag.org • AIAG RFID Summit November 2 at Rock Financial in Novi, Michigan. Contact Customer Service at 248-358-3003 to register 29

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