When it comes to improving process efficiency for E-Business Suite, customers are often faced with many options: mobile apps, barcoding on various mobile devices, RFID, and so on. This presentation shares CSX and BullsEye’s experience on using mobile technologies to achieve the desired process efficiency improvement, including some less glamorous yet powerful solutions. CSX will use the following case studies to share its corporate goals for investing in these projects, its process for solution evaluation, the implementation experience, the process efficiency achieved, and lessons learned. 1. Mobile barcode solution at 10 mechanical shops nationwide 2. RFID solution for automated asset tracking at the coal pier 3. Offline-enabled mobile barcode solution for remote work-order equipment trailers Using CSX and other customer case studies, we will also provide guiding principles and tips on how to select the most appropriate mobile and other hardware devices for optimal efficiency gains while minimizing total cost of ownership. 1. Handheld barcode/RFID scanners 2. Vehicle mounts 3. Ruggedized vs. consumer grade tablets 4. Other less glamorous but powerful options Last but not least, we will discuss factors beyond technology that contribute to successful process improvement initiatives such as corporate sponsorship, management support, and overcoming users’ initial fear and resistance to change.

1. Mobile Apps or Else
Achieving Process Efficiency
Elizabeth Hess
CEO
BullsEye Computing Solutions, Inc.
Kelli Prescott
Manager Information Technology
CSX Technology

2. AGENDA
 About BullsEye
 About CSX
 CSX Use Cases – Process Enhancements
 Considerations when Selecting a Mobile Solution
• Software
• Hardware
 Success Factors
 Questions

3. BullsEye Computing Solutions
• Company founded in 1998
• Specializes in process improvement via technology
- Barcode - RFID - Mobility
• Provides mobile solutions for Oracle® E-Business Suite
- Full set of supply chain transactions
- Receiving - Inventory Management - Manufacturing
- Asset Tracking - Shipping - Quality
- Custom Oracle applications for process efficiency
Technology for Enhancing Business Processes

5. CSX Vision Statement
• To be the safest, most progressive North American railroad, relentless in
the pursuit of customer and employee excellence
• Based in Jacksonville, Florida
• Our network encompasses approximately 21,000 route miles of track in
23 states, the District of Columbia and the Canadian provinces of Ontario
and Quebec

6. CSX Operating Facilities in NY & NJ

7. • Using Oracle Financial Applications since 1998
• Upgraded to R12 in August 2010
• Currently on Release 12.2.3
CSX Utilizing Oracle Applications

8. 1. Daily inventory material processing at warehouses
2. Occasional usage of inventory material from an unmanned location
(RFID)
3. Capturing inventory material usage from remote locations that do not
have network connectivity
CSX Use Cases

9. BACKGROUND:
• Locomotive warehouses are typically manned locations
• Utilize our inventory for maintenance and repair
• Work so that locomotives can be available to move the freight
Inventory Management Using Mobile Barcoding
Use Case 1

10. CHALLENGES:
• All interaction with the system occurred at a centrally located computer
• Manual entry of data increased chances of mistakes
• Inability to perform additional requests (communicated over the radio)
when out on the warehouse floor – without first returning to the centrally
located computer
Inventory Management Using Mobile Barcoding
Use Case 1

11. THE SOLUTION:
• Equip each user with a handheld scanner with barcode software and each
location with a barcode label printer
• Provide mobile functionality via the scanner
 Item Inquiry
• Item Number, Manufacturer Part Number, Description
• Can be expanded to see across the company including on hand quantities
 Material Issues and Returns
 Transfers
 Receipts
 Cycle Counts
 Barcode Label Print Requests
Inventory Management Using Mobile Barcoding
Use Case 1

12. THE IMPLEMENTATION:
• Ruggedized scanners were selected for the environment
• After an initial pilot, the solution was rolled out to 7 additional locations
across multiple states
• Currently in the process of adding our 11th location
• Each location still has the ability to use their centrally located computer
Inventory Management Using Mobile Barcoding
Use Case 1

13. BENEFITS ACHIEVED
• Data entry occurs once, real-time
• If material needed is not found locally, it only takes a couple of button presses to
show where the material is located across the network, including on hand
quantities
• Can multi-task on the warehouse floor
• Fast, easy, efficient way to Cycle Count material by scanning barcode labels
Inventory Management Using Mobile Barcoding
Use Case 1

14. BACKGROUND:
• The Coal Pier uses conveyor belts to move coal about the property and to
load coal onto ships
• If a conveyor belt were to have a mechanical failure, it is important to
have the specialized parts available to repair the equipment so that
business can continue
• The inventory is stored in an open (unmanned) warehouse
Asset Tracking Using RFID
Use Case 2

15. CHALLENGES:
• No electronic or paper records when parts were taken out of storage for
maintenance jobs
• Without visibility of parts being used, risk of inventory not replenished
timely
• Some parts have a significantly long lead time
• Money spent expediting orders for critical parts
Asset Tracking Using RFID
Use Case 2

16. THE SOLUTION:
• Tag all high-end parts with rugged RFID tags
• Equip each entrance of the storage building with RFID readers
• System detects when a part leaves the storage building
• System automatically adjusts the part’s on-hand quantity in Oracle ERP and issues the part
to the proper account
• Daily report generated on parts usage
• Requires no user interface at the coal pier
Asset Tracking Using RFID
Use Case 2

17. IMPLEMENTATION:
• Onsite testing to ensure that the RFID readers were positioned correctly
 To successfully read material leaving the facility
 To ensure that material was not placed too close to the antennae
• Enclosed the RFID readers to keep them dust free
Asset Tracking Using RFID
Use Case 2

18. BENEFITS ACHIEVED:
• Automation of material issue can help ensure inventory accuracy
• Report of material used feeds the manual effort of replenishment
• Avoid/reduce expedited orders for replacement parts
Asset Tracking Using RFID
Use Case 2

19. BACKGROUND:
• Teams travel across the railroad network replacing track and can be in a new
location every week
• There are a series of machines used to replace track
• A semi trailer (or work equipment trailer) moves with each team, carrying
material used to repair the machines
• Not having the right material can cause work delays and schedule overruns, and
impact rail curfews
Inventory Management for Remote Work Equipment Trailers
Use Case 3

20. CHALLENGES:
• 19 Work Equipment Trailers that are stocked from a centrally located warehouse
• Keeping inventory stocked in the trailer was accomplished by the team’s
mechanic faxing in hand-written notes and placing phone calls (double effort)
• Real-time connectivity to the Inventory system was not possible in many cases
due to the remote work locations
• Trailers do not always have a source of power
Inventory Management for Remote Work Equipment Trailers
Use Case 3

21. THE SOLUTION:
• Equip each mechanic with a handheld scanner – loaded with barcode software
that can work in an offline environment
• Equip each mechanic with a laptop with software for syncing the scanner when
internet connectivity is available
• Sync functions include:
• Update the scanner with current inventory information needed for offline functionality.
• Upload offline transactions to parent system
• Enable Material Issues, Cycle Counts & Item Inquiry
Inventory Management for Remote Work Equipment Trailers
Use Case 3

22. IMPLEMENTATION:
• Each trailer had to install barcode labels on the inventory bins
• A physical count of the inventory was done to correct any mismatch
between the system and the trailer
• Providing each mechanic with the hardware & software and providing the
training
Inventory Management for Remote Work Equipment Trailers
Use Case 3

23. BENEFITS ACHIEVED:
• Provided the ability to keep trailer inventory accurate
• Provided the means to utilize automatic order points
• Decreased phone calls spent to communicate material usage and out-of-
stock notifications
• Reduced the need to expedite shipments
Inventory Management for Remote Work Equipment Trailers
Use Case 3

25. Considerations for Mobile Solutions
People
Software
Hardware

26. Software
• Seamless integration with Oracle E-Business Suite
• Optimizability to maximize process efficiency
• Real-time data validation at the point of transaction
• Uninterrupted data collection in online/offline environments
• Complete data integrity and visibility
• Turnkey solution (complete with software, wireless data collection devices, and barcode
printing capabilities)
• Low total cost of ownership

27. Hardware
• Handheld Scanners
• Label Printers
• RFID Readers
• Smartphones
• Tablets
• Laptop
• Vehicle Mounts
• Desktop

28. Ruggedized vs. Consumer Grade Tablets
• Productivity
• Reliability
• Support
• Security
• Longevity
• Manageability
Low Acquisition Cost
Low Total Ownership Cost
Higher Total Ownership Cost

29. Rugged Devices Have Unique Functionality
• Barcode Scanner
• RFID Reader
• Magnetic Card Reader
• Weather Proofing
• Glove Touch Mode
• Sunlight Viewable Screen
• Enhanced Battery Life
• Vehicle Mounting

30. Rugged Devices Provide Extended Security
• Hardening of off-the-shelf Operating Systems
• Encryption of all on-board data
• Device lockdown to prevent user modification
• Theft/Loss prevention to “kill” or recover lost devices
• Communications to secure peripherals (e.g. printing)

31. Rugged Devices Empower Field Workforces
• Biometrics for user confirmation
• Integrated barcode, RFID readers
• Long-lasting battery
• Drop resistance
• Durability in harsh environments
• Corporate device management/control
• Extended product lifecycles and support

32. The Right Device – Max ROI, Min TCO
• TCO vs. acquisition cost
• Minimize support
• Maximize manageability
• Durability and repairability
Selection Criteria
• Device acquisition cost
• Network/Connectivity cost
• Application development cost
• User training/Support cost
• Warranty availability, repair cost
• Apps/OS acquisition and upgrade costs
• Device maintenance cost
• Productivity costs – operations, downtime, ease of use
• Opportunity costs – lost sales, unhappy customers, failed
security
Determine True TCO

33. Success Factors – Beyond Technology
• Clear understanding of AS-IS process and TO-BE vision
• Realistic expectations on ROI
• Corporate buy-in (operations, finance, IT)
• Management support
• Adequate user training
• Overcoming initial fear and resistance to change
• Positive user experience
• Long-term partnership with solution provider(s)

34. Thank You!
Mobile Apps or Else
Achieving Process Efficiency
Elizabeth Hess
CEO
BullsEye Computing Solutions, Inc.
Kelli Prescott
Manager Information Technology
CSX Technology