© 2006 Hewlett-Packard Development Company, L.P.


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© 2006 Hewlett-Packard Development Company, L.P.

  1. 2. RFID at HP, Salil Pradhan Chief Technologist, RFID
  2. 3. Putting our learnings to work for you today…… EXTERNAL INTERNAL DEPLOY DEPLOY Standards leader HP helps develop global standards Service provider HP provides consulting and integration services for customers implementing RFID Innovation leader RFID technology, sensor infrastructure, security and management Market provider HP provides customers with RFID-enabled goods User HP uses RFID in its own operations
  3. 4. HP Supply Chain today <ul><li>137,000 printers shipped daily </li></ul><ul><li>82,000 PCs shipped daily </li></ul><ul><li>2M Industry Standard Servers shipped annually </li></ul><ul><li>110,000 retail outlets </li></ul><ul><li>20M calls/year at Sales contact centers </li></ul><ul><li>370M customer orders annually </li></ul><ul><li>An eOrder placed every 9 seconds </li></ul><ul><li>77.7M unique visits/month to hp.com </li></ul>
  4. 5. HP Operations Value Direct Volume Direct Value Indirect Volume Indirect HP-led Partner-led Multiple routes-to-market Broadest customer base in the technology industry Broadest portfolio of IT products/services in the world HP portfolio Customers Enterprise SMB Consumer
  5. 6. HP’s supplier base Major locations of HP product materials, components and services suppliers
  6. 7. HP’s Journey with RFID
  7. 8. Brief Timeline of RFID at HP <ul><li>2002 </li></ul><ul><ul><li>August - Supply Chain / Logistics Councils authorize RFID pilot </li></ul></ul><ul><ul><li>September - first proof of concept kicked off at Memphis printer facility </li></ul></ul><ul><li>2003 </li></ul><ul><ul><li>January - Chester, VA ( inkjet pens ) chosen as the next RFID pilot site </li></ul></ul><ul><ul><li>April - Memphis POC shows positive ROI, RFID Core Team launched </li></ul></ul><ul><ul><li>June - Wal*Mart issues first retailer request for tagged goods </li></ul></ul><ul><ul><li>July - HP launches NA Retail RFID program worldwide </li></ul></ul><ul><li>2004 </li></ul><ul><ul><li>Feb – HP joins EPCGlobal </li></ul></ul><ul><ul><li>April - Memphis in production, HP shipping tagged goods to Wal*Mart </li></ul></ul><ul><ul><li>November - 21 RFID capable sites in Latin America, Mexico, USA and Asia </li></ul></ul>
  8. 9. The Wal–Mart requirement – Retaining your customer <ul><li>Began shipping tagged product to Wal-Mart April 2004 as part of initial pilot </li></ul><ul><li>Commenced on schedule in January 2005 shipping all Wal-Mart products tagged at case and pallet level </li></ul><ul><li>Today more than 60 tagged products are shipped to Wal-Mart from 28 sites globally </li></ul><ul><li>HP is piloting with many of the world’s largest retailers </li></ul>
  9. 10. Retail IPG RFID Plan AiO & Personal Printers AiO & Personal Printers Scanners & Cameras AIO Toner Toner/ Personal Laserjet Personal LJ InkJet Supplies Shenzhen Mentor Media Base Manufacturing In transit Malaysia Flextronics Shanghai Calcomp Bangkok Venture Hong Kong Canon Tokyo Canon Canon China Various FGI Direct FGI Direct FGI Direct IDS Air Memphis Flex Guadalajara Flex Guadalajara Jabill Virginia Sonoco Memphis Menlo Product Completion Center Regional Distribution Walmart Walmart, Sam’s Club and Neighborhood Market Stores Walmart DC1 Sanger, Texas Walmart DC2 Cleburn, Texas Walmart DC3 De-Soto, Texas Supply Site Tag Site Delivery Site
  10. 11. HP RFID Geographic Scope RFID impacts businesses, operations and Customers in all Regions. Therefore program scope is global and pan HP in nature Commercial sites Retail sites 28 sites now RFID capable More in progress
  11. 12. Memphis Factory Inkjet Hardware <ul><li>First to ship tagged cases and pallets to Wal-Mart April 2004 </li></ul><ul><li>Full site implemented in October 2004 </li></ul><ul><li>Will tag 6M printers in 06 </li></ul><ul><li>Tagging pallets & cases with EPC Class 1 915Mhz tags </li></ul><ul><li>May 06: Lines Gen2 ready </li></ul><ul><li>July 06: Fully converted </li></ul>
  12. 13. Sao Paulo Factory <ul><li>Sao Paulo performs the full range implementation: </li></ul><ul><li>Manufacturing + </li></ul><ul><li>Completion process + </li></ul><ul><li>Distribution center (inbound & outbound) + </li></ul><ul><li>Reverse distribution (DOA & warranty repair) </li></ul>1st pilot in 2004 Fully Operational today <ul><li>Tagging Printer Chassis prior to build </li></ul><ul><li>Gathering Key data during Build (Product DNA) </li></ul><ul><li>Next: Materials level controls using Tags </li></ul>
  13. 14. Using RFID to build visibility in the Supply Chain
  14. 15. Value proposition for RFID <ul><li>Could we use RFID to enhance the flow of goods in our Supply Chain? </li></ul><ul><ul><li>Automating identification of items through the process flow </li></ul></ul><ul><ul><li>Eliminating manual effort </li></ul></ul><ul><ul><li>Increasing granularity of item, location, and time data </li></ul></ul><ul><ul><li>Eliminating processes which only identified items </li></ul></ul><ul><ul><li>Eliminating dwell time between processes </li></ul></ul><ul><ul><li>Using RFID based data to radically change processes </li></ul></ul><ul><ul><li>Carry key data on an item for faster local processing </li></ul></ul>
  15. 16. Benefits & Learnings
  16. 17. Is It ¥ € £ $ Worthwhile ? <ul><li>Yes…. but it’s not always obvious as to why and how. The key advantages are : </li></ul><ul><ul><li>Labor Savings </li></ul></ul><ul><ul><li>Process Accuracy </li></ul></ul><ul><ul><li>Inventory Accuracy </li></ul></ul><ul><ul><li>Proof Of Delivery </li></ul></ul><ul><ul><li>Improved Operational Data </li></ul></ul><ul><ul><li>Improved Operational Performance </li></ul></ul><ul><ul><li>Advanced Ship Notice ( Dispatch Advice ) </li></ul></ul><ul><ul><li>Predictive Event Management </li></ul></ul><ul><ul><li>Common Shared Data </li></ul></ul>
  17. 18. Lessons learned… <ul><li>With “slap and ship” you just spend money – use the information </li></ul><ul><li>pallet logical build process reduced from minutes to seconds </li></ul><ul><li>Improvements in transfer of pallet/case-level inventory between manufacturing and distribution center sites </li></ul><ul><li>Operational benefits from improvements in outbound processes </li></ul><ul><li>Memphis site receives material from Chester – integration tested </li></ul><ul><li>Automated identification at key stages of the assembly production line to gain manufacturing efficiencies </li></ul><ul><li>Master data management influences the NPI process </li></ul><ul><li>Global deployment not easy </li></ul>
  18. 19. Lessons learned (2) <ul><li>Tags, readers, middleware vendors not consolidated yet </li></ul><ul><li>Scalability, collaboration not proven yet </li></ul><ul><li>Data synchronization is KEY </li></ul><ul><li>Don’t wait to know everything… or you’ll have the competitive advantage of a 100M sprinter in a marathon </li></ul><ul><li>You’ll get conflicting advice and information. In the end you need to go and just implement it to learn </li></ul><ul><li>Pilot, learn, adjust then roll out </li></ul><ul><li>Start with simple ideas like replacing barcode scans, then work up to the full EPC architecture </li></ul><ul><li>Crawl, walk, jog, run then sprint seems to work </li></ul>
  19. 20. For more information Contact: Salil.Pradhan.com@hp.com Or Frank.Lanza@hp.com