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Rfid roi-sme pilots presentation and results ueapme august 2012


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The main goal of RFID-ROI-SME is to boost the adoption of RFID technology by wide SME communities, while at the same time creating business opportunities for innovative RFID solution providers within the EU. The aim is to demonstrate tangible benefits of RFID technology across many different sectors and business cases. These benefits will then be disseminated to wider SME communities in the form of case studies, best practices and blueprints. To this end, the project has integrated, deployed, organized and coordinated eight RFID pilots in six European countries (including one international pilot) covering different sectors, starting in March 2010 until May 2012.
This is a presentation about the RFID-ROI-SME project pilots, their business evaluations, key performance indicators, major issues and lessons learnt.

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Rfid roi-sme pilots presentation and results ueapme august 2012

  1. 1. RFID  –  ROI  –  SME    1 Pilot RFID Deployments and ROI Studies for SME using Open Source Middleware and Tools ICT-PSP No. 250438 The Project’s Pilots, Achievements, Best Practices and Lessons Learnt August 2012    
  2. 2. The project2  •  RFID-ROI-SME is a project co-funded by the     European Union s ICT Policy Support Programme as part of the Competitiveness and Innovation Framework Programme – CIP ICT-PSP•  Coordinated by UEAPME•  Project lifespan: March 2010 – May 2012
  3. 3. The Consortium3  UEAPME (Coordinator) with:    -  6 ICT solution providers from 6 EU countries-  10 end-user SMEs from 6 EU countries-  4 EU national Associations representing SMEs from the ICT sector-  The Athens Institute of Technology (AIT)
  4. 4. Project Objectives 4  •  To boost the adoption of RFID technology by SMEs    •  To create business opportunities for innovative EU RFID solution providers•  To demonstrate tangible and measurable benefits of RFID technology across many different sectors and business cases: increase in the Return on Investment (ROI)•  To disseminate the project results to SME communities in the form of case studies, best practices and blueprints
  5. 5. The activities   5A practical approach with the implementation, coordination and  evaluation of 8 RFID pilot projects in 6 European countries:-  Bulgaria-  Denmark-  Greece-  Italy-  Spain-  United KingdomTargeting SMEs of different economic sectorsEach pilot has been deployed by an SME RFID systemsintegrator (solution provider) for an SME end-user, and ithas been operational for about 12 months.
  6. 6. The Pilots6•  Logistics and trade management – Bulgaria•  E-ticketing and tourist relationship management – Denmark and Bulgaria•  Automated document tracking and archiving – Italy•  Intelligent manufacturing and manufacturing quality control for the packaging industry – Greece•  Supply chain management for the apparel industry – Greece•  Security in the building and construction sector – Italy•  Product management for the plastic industry – Spain•  Security management system – United Kingdom
  7. 7. Pilot 1: the Partners7End user: Cablecommerce, the leading cable trading andcable producing company in Bulgaria.Solution Provider: Balkan Services is among the leader ITconsulting companies in Bulgaria.Purpose of the Pilot: Large drums of cable rolls and smallerinventory are not adequately accountable. Due to lack ofinformation about quantities, often large coils of cables are notused efficiently. Objectives of the pilot are to improve thestorage management system of Cablecommerce and toimprove the logistics of the company.
  8. 8. Pilot 1: The Layout8     !
  9. 9. Pilot 1: The Layout9    
  10. 10. Pilot 1: The Layout10    
  11. 11. Pilot 1: Business Evaluation11    
  12. 12. Pilot 1: Key Performance Indicators (KPIs)12   KPI Value   KPI Value Target Increase KPI Name   March October 2011   Expected   2011   2305 t.mts. The total length of Left (%) Utilization of Cables   2562 t.mts.   10%   Overs decreases with 11 %.   Faster Order Completion   20-45 min.   10-35 min.   50%   This could not be measured before the Be$er  Roll  Cu+ng   15 sec.   100%   system was implemented.   2-10 min. (the improvement is due to theFaster Location of the Right Drum   15-30 min   30%   implemented warehouse place function)  
  13. 13. Pilot 1: Major issues13  •  Radio connectivity and coverage  -  Large area to be covered – especially outside, heavy industrial environement-  Stabilising the radio environment, acceleration of comunication protocol•  Relative slowness of the system – New versions of the system were released-  Speeding up the processing for every line of transaction-  Accelerating the processing of a document – the document is transformed as object in the software server and it is send to the mobile computer for processing .
  14. 14. Pilot 1: Major issues14     •  Difficult readability of tags due to heavy outdoor conditions - Protective plastic cases were put on
  15. 15. Pilot 1: Lessons learnt15  •  Overcoming metal interference from cables and heavy outdoor industrial environment   It proved to be more difficult to resolve than expected. Tags have tobe read from a closer distance (HF technology used)•  Implement large scale projectIn terms of area radio coverage – make sure the area is covered andoperations in mobile computers are performed successfully•  RFID mobile computers are used mainly outside and in sun – screen is not visible in the sunSun proctection screens or screen shades to be used
  16. 16. Pilot 2: The partners16End user: DUF-Rejser is a travel agency specialised in youthtravel. The travels have three destinations: one in Spain andtwo destinations in Bulgaria.Solution Provider: RFID-Specialisten is a RFID solutionsprovider for industrial and tourist applications. It also operatesas consultant for the design of RFID installations.Purpose of the Pilot: The main objective for this pilot is to givethe guests a better service by managing the access to eventsand excursions with the RFID application.
  17. 17. Pilot 2: The Layout17    
  18. 18. Pilot 2: Business Evaluation18    
  19. 19. Pilot 2: Key Performance Indicators (KPIs)19     KPI Value KPI Value Target Increase KPI Name   March October 2011   Expected   2011   Average (%) of Sales Increase per Destination   none   15   10%   Reduction of Irregularities in Accounts and Reports   none   30   20%   Reduction in administrative cost per sold travel   none   30   20%   Increase in staff motivation   none   10   15%  
  20. 20. Pilot 2: Major issues20  •  Difficulties in the distribution of the RFID-ticket  •  Mobile settings vary in different countries•  NFC devices still are not technology mainstreams•  DUF’s decision to use 2 separate booking systems for the test
  21. 21. Pilot 2: Lessons learnt21    •  Social media must be better exploited, interaction is important•  The security for cloud and mobile app must be better addressed•  Be updated with trends in standards and markets•  Go for the technology and device mix you believe in•  The project brought an easy to use ROI calculator for new RFID projects and an easy to use system security tool
  22. 22. Pilot 3: The Partners22  End user: Koskinidis provides integrated packaging solutions,  which are tailored to their customer needs. Its products includeground stands, stands for different types of confectioneries, foodpackaging, Cylinder-shaped packages and more.Solution Provider: SENSAP’s main activities are: integrator ofAutoID/RFID solutions, customer base of SME manufacturers.Target domains/applications: manufacturing, logistics, supplychain management.Purpose of the Pilot: to apply RFID technologies for theautomated identification and traceability of the company’smanufacturing processes, comprising source materials, machines,as well as finished products.
  23. 23. Pilot 3: The Layout23    
  24. 24. Pilot 3: The Layout24    
  25. 25. Pilot 3: Business Evaluation25    
  26. 26. Pilot 3: Key Performance Indicators (KPIs)26     KPI Value KPI Value Target Increase KPI Name   March October 2011   Expected   2011   Accurate Forecasting of Required Materials   3%   4%   10%   Accurate Estimation of Parameters contributing to the Finished Products Cost   5%   6%   15%   Improved Inventory Accuracy / Reduction of Inventory Errors   60%   80%   100%   Improved Utilization of Manufacturing Assets (Materials, Machines)   5%   8%   10%  
  27. 27. Pilot 3: Major Issues 27  •  KOSKINIDIS employees were not satisfied with the deployment and use of mobile scanners  -  Need for automatic data acquisition-  SENSAP opted for the replacement of mobile terminals with multimodal stations equipped with RFID and other sensors-  The station enables the collection of data about tagged production resources•  Integration with ERP was deemed important:in order to convery utilization data thereby boosting costcalculation and quality control
  28. 28. Pilot 3: Lessons Learnt28  •  Tracking, tracing and documenting manufacturing   processes is a privileged domain for the application of RFID technology: -  No need to tag individual products (low tagging costs) -  Many benefits stemming from the fact that line-of-sight is not needed thus allowing automatic operation -  Manufacturers should be positively inclined towards the use of RFID for process documentation and tracking
  29. 29. Pilot 3: Lessons Learnt 29  •  User interfaces and the HMI (Human Machine Interface) are very important aspects of   an ICT solution for manufacturing:-  Plant personnel are not necessarily acquainted with the use of computers and ICT-  User friendly, pervasive and non-intrusive HMI needed-  The station based solution is much more natural and ergonomic comparing to mobile RFID readers-  There are RFID enabled systems rather than RFID systems: RFID enabled systems may be considered Industrial Automation
  30. 30. Pilot 3: Lessons Learnt 30  •  Integration with enterprise and manufacturing systems and   applications (such as ERP/MRP) systems is important:-  Need to exchange data with the ERP/MRP of the company: Single source of Master Data is required.-  RFID enabled systems equip ERP installations with data- collection automation that boost documentation performance.-  Collaboration with the ERP vendor can introduce significant overhead to the implementation of the solution.
  31. 31. Pilot 4: The Partners31  End user: STAFF SA is an apparel manufacturer (denim type  products) since 1992, which operates a state-of-the art distributioncenter in Larissa (Central Greece), with manufacturing plants inBulgaria, Romania, Italy, and China.Solution Provider: SENSAP’s main activities are: integrator ofAutoID/RFID solutions, customer base of SME manufacturers. Targetdomains/applications: manufacturing, logistics, supply chainmanagement.Purpose of the pilot: to involve the coordination of a supply chaincomprising manufacturing, logistics and retail processes, in a widearea of transnational environment. Therefore, the pilot will allow theSME to evaluate interoperability aspects in the scope of inter-enterprise scenarios.
  32. 32. Pilot 4: The Layout32   RFID/AutoID Printer (Smart POS)   STAFF E-Shop Internet IMPINJ Speedway (Smart POS) LAN IMPINJ ELO 1715L Touch Switch Speedway Screen (E-Sales Man) ELO 1715L Touch Screen S-Box Platform IMPINJ (Smart Mirror) (Sun Ultra 27) Speedway WiFi STAFF Shop ERP Management Console Intermec CK31 Mobile (legacy) (for S-Box) Terminal SUN Ray 2 Thin Client !
  33. 33. Pilot 4: The Layout33    
  34. 34. Pilot 4: The Layout34    
  35. 35. Pilot 4: The Layout35    
  36. 36. Pilot 4: Business Evaluation36    
  37. 37. Pilot 4: Key Performance Indicators (KPIs)37     KPI Value Target KPI Value KPI Name   March Increase October 2011   2011   Expected   Reduction of Stolen Items   105   48   50%   Higher Inventory Accuracy   85%   100%   50%   Time to Return Items   15   3   40%   Reduction in the Average Time required for Customer Check-out   8   2   100%   Stock Reduction in the Retail Shop N/A   +   50%   (difficult to estimate.Can only say a much better sell out in Items with Rfid)  
  38. 38. Pilot 4: Major Issues38  •  Reading Accuracy and Reliability at dock-doors between store and warehouse  •  Difficulty to test discount & marketing policies at a large scale due to lack of a critical mass of customers with RFID loyalty card•  Safegurading privacy – enforcing technical and non- technical measures for privacy management•  Item-level tagging cost
  39. 39. Pilot 4: Lessons Learnt39  •  The more processes that become RFID enabled the more   the high recurring cost of consumables is alleviated. RFID is considered an infrastructure•  Privacy Issues are important, but a number of technical and non-technical measure exist to alleviate them The EC framework for PIA assessment is a starting point•  Among the unique capabilities provided by RFID is the integration of e-shop functionalities within the operations of a conventional retail shop
  40. 40. Pilot 5: The Partners40  End User: CNA Servizi Modena offers services to about 9.000enterprises associated to CNA Modena, the association representing  artisans and SMEs in the province of Modena. CNA Servizi Modena’sservices cover legislation, technical standards, quality, new businessconsulting, business and management training, etc.Solution Provider: SATA is a company that studies, designs,prototypes and realises innovative and advanced ICT solutions fordifferent application domains, particularly for interoperability, logistics,enterprise networks and document management.Purpose of the pilot: to achieve a satisfactory RFID enabledelectronic document and dossier management, applicable to a varietyof document classifications and related handling processes. The pilot isbased on the application of the RFID technology to the taxassessment process.
  41. 41. Pilot 5: The Layout41   wi-fi   WS WA GUI
  42. 42. Pilot 5: The Layout42    
  43. 43. Pilot 5: The Layout43    
  44. 44. Pilot 5: Business Evaluation44    
  45. 45. Pilot 5: Key Performance Indicators (KPIs)45   KPI Value KPI Name     March KPI Value October 2011   Target Increase Expected   2011   Reduced Interactions with Customers   15 minutes   5 minutes   10%   Reduced time to prepare a folder tax computation   1 minute   < 1 minute   15%   Reduced time to search/find a folder   2 minutes   0,5 minute   30%   Faster Inventory   20 minutes   few seconds   100%   Accelerated Completion of the Tax Declaration Process   2 hours   1,2 hours   50%  
  46. 46. Pilot 5: Major Issues46  •  Full replacement of the client application   -  Different operating system, some middleware problems -  Not enough time to rebuild the Aspire interface•  GPRS connectivity -  Additional WiFi access point has to be installed -  To ensure acceptable response times•  Multiple readings -  Need to test different power settings -  Need to read the long-term archive (overcrowding of folders)•  Different tax models -  730 and IMU (new tax) instead of Unico (RETE) -  No specific problems met, the checklist is flexible enough
  47. 47. Pilot 5: Lessons Learnt 47  •  Real application vs testing application conditions   Performances in multiple tag readings different from vendor declarations•  Specific application design for mobile devices Limitation on computational capacity, connenctivity, small screen and keyboard size require application re-engineering•  Coverage of different doc management processes -  The management of a new tax (IMU) generated trust in the system -  Because of the very few adaptations needed•  Support to all doc management operations -  Calendar management and meeting tracking were appreciated by the users and facilitated the system uptake
  48. 48. Pilot 5: Lessons Learnt48  •  RFID useful only in certain doc management scenarios   -  Not applicable to single documents (at reasonable prices) -  Very good for inventory and archiving of document collections (folders) -  Very good in conjunction with a (web) application covering the whole user process -  As an opportunity to increase office automation
  49. 49. Pilot 6: The Partners49  End User: BRIDGE129 designs, develops and deploys systems  for smart control for the industry, the infrastructures and theservices. It is taking into account regulations and highest qualitystandards.Solution Provider: SATA is a company that studies, designs,prototypes and realises innovative and advanced ICT solutionsfor different application domains, particularly for interoperability,logistics, enterprise networks and document management.Purpose of the pilot: identification of intruders entering thebuilding yard through accesses 10-15 meters wide and withoutphysical borders
  50. 50. Pilot 6: The Layout50    
  51. 51. Pilot 6: The Layout51    
  52. 52. Pilot 6: The Layout52    
  53. 53. Pilot 6: Business Evaluation53    
  54. 54. Pilot 6: Key Performance Indicators (KPIs)54     KPI Value KPI Value Target Increase KPI Name   March October 2011   Expected   2011   Improved Speed/Timeliness towards recognizing authorized people   > 30 secs   1-3 secs   200%  Improved Speed/Timeliness towards recognizing authorized machines/trucks   > 20 secs   1-3 secs   200%   Reduction in notification times of the control room   > 30 secs   1-3 secs   200%  
  55. 55. Pilot 6: Major Issues55  •  Box insulation  New box and different assembly method•  IR/MW false positive rate-  Higher than expected-  Different lens and positioning•  Video recording vs RFID graph synchronizationTuning of the sw synchronization module to support high networkload
  56. 56. Pilot 6: Major Issues56  •  RSSI graph visualization  Increased resolution (up to 640x480) to show more than 3 tags atime
  57. 57. Pilot 6: Lessons Learnt57  •  The smart pole works well  After one year and a half the sensor response is very good•  Surveillance is easier with the RFID applicationOperators are satisfied after the fine tuning of the application•  Solution adaptable to other open air contexts-  Manufacturing industries open air warehouses-  Plant installation & maintenance operations in open spaces•  A project oriented approach is neededRFID active technology not yet mature and standardized
  58. 58. Pilot 6: Lessons Learnt58    •  A lot of possible scenarios for the   future-  The RFID Application Centre of the Milan Politecnico stated that: “it is a practical application of multiple signal processing to real life, actually a step towards Internet of Things-  Contacts with commercial customers confirm that in the medium-term this kind of application will be appreciated
  59. 59. Pilot 7: The Partners59  End user: PICDA is a company whose principal activity ismanufacturing plastic bags of polyethylene of high, medium and low  density. PICDA is currently working with innovative technologies toimprove the degradation of plastic material.Solution Provider: Alu Group is a company dedicated to softwareconsulting with strong interest in highly innovative issues, especially newtechnologies to be applied to industrial manufacturing process andproduction phases.Purpose of the pilot: to build an interpreter of RFID pulses capable ofextracting meaning of the signals received in the context of a warehouseof the plastic film industry. The interpreter must be integrated into thecorporation ERP in order to maintain the warehouse organized.
  60. 60. Pilot 7: The Layout60    
  61. 61. Pilot 7: The Layout61    
  62. 62. Pilot 7: The Layout62    
  63. 63. Pilot 7: Business Evaluation63    
  64. 64. Pilot 7: Key Performance Indicators (KPIs) 64     KPI Value KPI Value Target Increase KPI Name   March October 2011   Expected   2011   Reduction in the Number of Bags that must be destroyed 850.000 bags   200.000 bags   100%   (i.e. featuring wrong materials)  Reduction in the Number of Manipulation Mistakes (i.e. coils 150   60   75%   taken by mistake)   Reduction in the Number of lost coils (coils that cannot be 25   9   75%   found)   Reduction in the % of Orders out of Time   10%   9%   20%  
  65. 65. Pilot 7: Major Issues65  •  Low availability of Picda personal and resources  The sector is suffering a big transformation because ofhypermarkets’ new policy on plastic bags, coupled with the currenteconomic crisis.•  Lack of backup hardware devices.It cannot be tested when it is in use and can be exposed tofailures.•  Continuous changes in production processes and software.Changes in production software have been a rule till the beginningof the project. Picda was not only implementing an RFIDtechnology project, but a production redesign with new processesand software.
  66. 66. Pilot 7: Lessons Learnt66  •  RFID technology must be tested on the production  environment•  RFID applications needs to be very configurable.•  It’s difficult to package a product that could be sold as plug& play.RFID technology needs to be considered from a project approachwith its associated implementation time and risks.•  The apparently “same” product can have a completely different behaviour only because of a hardware or firmware update. The same applies to tags.
  67. 67. Pilot 7: Lessons Learnt67  •  An RFID project in a manufacturing SME is hard to  implement because of changes in company’s processes.•  RFID technology have a enormous potential in optimizingprocesses and reducing operational costs, but it is important toconsider the main benefits of the technology related to othersubstitutes technologies: no need of line of sight and the ability toread a lot of id’s in a “single shot”.•  Even though RFID technology can have a deep impact onoperational costs in warehouses, the actual crisis contextmake it difficult to sell and implement these kind of projects.
  68. 68. Pilot 8: The Partners68  End user: Sovereign Security is a security company specialisingin Manned Guarding and patrols.  Solution Provider: Sero Solutions is a wireless systemsintegrator based in the UK with a focus on Mobile technologies.Purpose of the pilot: electronically record the location of asecurity guard at a given time and location using a NFC tag andNFC handset, sending alerts from the system in a correct fashionand in the correct timescales.
  69. 69. Pilot 8: The Layout69    
  70. 70. Pilot 8: The Layout70    
  71. 71. Pilot 8: Business Evaluation71    
  72. 72. Pilot 8: Key Performance Indicators (KPIs)72     KPI Value KPI Value Target Increase KPI Name   March October 2011   Expected   2011   Improvement in the Timeliness of Alerts   10   30   20%   Time to generate Electronic Timesheets   10   80   80%   Overall Customer Satisfaction   40   60   50%   Better Visibility of Service Level Agreements (SLA)   20   70   50%  
  73. 73. Pilot 8: Major Issues73  •  Incorrect display of information on mobile device  - Messages that were supposed to be displyed once weredisplayed multiple times- User clocked in a task list was not the correct one for the actualsite.•  Mobile signal issues-  NFC handsets were not connecting to a GPRS/3G signal-  Information needed to be stored locally on device and sent later once a signal was established.
  74. 74. Pilot 8: Major Issues74  •  Incorrect information on reports  Some of the guards did not enter the required information fromtime to time which sewed some of the reports•  Physical issues with the tags:Some of the tags being used had to replace from wear and tearfrom outdoors use
  75. 75. Pilot 8: Lessons Learnt75  •  The majority of issues with the system were related to the  usage behaviour rather than technical issues: Good trainingand governance required•  Need for a number of checks against technical pre-requisites: e.g., network signal for mobile devices, power pointsfor mobile device charging, correct placement of tags•  Training material should be provided in paper format, as aquick reference guide•  Backup systems should be in place in the event of a mobilesignal failure.
  76. 76. Pilot 8: Lessons Learnt76  •  All information generated should be reviewed and  authorised before being submitted in final reports•  Reports should be generated automatically and emailed tosupervisors who can see a summary of the information