Doc.: IEEE 802.15-09-0200-00-004f Submission March 2009 Ian Robertson, GS1 EPCglobalSlide 1 Project:...
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Transcript of Doc.: IEEE 802.15-09-0200-00-004f Submission March 2009 Ian Robertson, GS1 EPCglobalSlide 1 Project:...
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobalSlide 1
Project: IEEE P802.15 Working Group for Wireless Personal Area Networks (WPANs)Project: IEEE P802.15 Working Group for Wireless Personal Area Networks (WPANs)
Submission Title: [EPCglobal Raison d’Être ]Date Submitted: [10 March 2009]
Source: [Ian Robertson] Company [GS1 EPCglobal Inc.] Address [] E-Mail:[[email protected]]Re : []Abstract:[EPCglobal RFID Supply Chain and Operations Improvement]Purpose:[A look at why GS1’s EPCglobal standards enable supply chain & operations improvements]
Notice :This document has been prepared to assist the IEEE P802.15. It is offered as a basis for discussion and is not binding on the contributing individual(s) or organization(s). The material in this document is subject to change in form and content after further study. The contributor(s) reserve(s) the right to add, amend or withdraw material contained herein.Release:The contributor acknowledges and accepts that this contribution becomes the property of IEEE and may be made publicly available by P802.15.
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobalSlide 2
EPCglobal Raison d’Être
A look at why GS1’s EPCglobal standards enable supply chain & operations improvements
V4 16th February 2009
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
A Different Perspective…..March 2009
Ian Robertson, GS1 EPCglobal3
Much attention has been given to explaining RFID technology and EPCglobal standards and how they enable the use of this technology in supply chains and retail operations.
But understanding the technology and the standards is not enough unless their use is put into the most important context of all – that of the business that is using them.
This presentation illustrates how they can help improve business from the perspective of an imaginary Vice President of Operations.
Although a fictional manufacturing operation is illustrated, the KPI’s and benefits are common to most operations
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal4
It’s The Only Reason For Doing It
There are many ways to do this and many parties may be impacted, but ultimately this is why a member will embark upon implementing our standards and keys.
To gain business benefit
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal5
It’s The Only Reason For Doing It
There are some basic and natural groupings for how those benefits are realised
They will be familiar to operations executives !
To gain business benefit
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal6
Efficient Use Of Capital
• Maximise use of Property, Plant & Equipment
• Minimise inventory levels
• Maximum speed of inventory through supply chain
• Minimise inventory obsolescence & write off
• Minimise Accounts Receivables
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal7
Operational Efficiency
• Minimise process duration
• Minimise process steps
• Minimise process delays & interruptions
• Minimise down time
• Make right first time
• Deliver right first time
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal8
Customer Focus
• Right product made & delivered on time
• Minimise Time To Market
• Provide key progress information
• Right price
• Right quality
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal9
Operations “Layers”
5th March 2009
Level 1 is the management of an individual item, service or information through the operation’s processes. It focuses on individual processes and
transformation of material into the saleable item.1
Level 2 is the management of the operation on an overall and periodic basis rather than on an individual process. It uses data collected during the processes
to establish trends, monitor performance, identify bottlenecks etc.2
Level 3 is the management of the assets, property, plant, equipment, buildings and capital used. It also focuses on long term and strategic
planning. Accurate data is essential for this task.3
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal10
Data “Layers”
5th March 2009
Level 1 data is information about the progress of an individual item, component or service through the company's operations.
Level 2 data is summary data that provides data ontrends, throughput, supplier and vendor performance etc. It is based upon aggregation of Level 1 data
Level 3 data is information about capacity utilisation, capital utilisation, ROE, customer & market requirements. It is based upon aggregation and
analysis of Level 2 data
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal11
Operations Additional Focus
2006 EPCglobal Inc
In addition to managing the layers, Operations mangers have to manage two other very important aspects of their operations
Customer – provide the customer with information on order acceptance, order execution, dispatch, tracking and delivery
Processes – execute the minimum work necessary to transform the materials into saleable goods or services consistent with stated quality goals
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal12
Managing An Item
• Where is this item in the process ?
• Is this item on schedule ?
• Has it gone through all planned processes ?
• Does someone need to intervene in the process ?
• Will this item meet customer schedule ?
• Does it have all planned components ?
• Has it passed all necessary tests ?
2006 EPCglobal Inc
Single Item
Associated Single Item
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal13
Managing An Operation
• How was production last month against plan ?
• Where were my process bottlenecks ?
• What vendors performed to agreed SLA ?
• How did operations compare to each other ?
• How do we compare to others in our industry ?
• Did we meet commitment to our markets ?
• What supply issues impacted production ?
• Did we ship things on time ?
2006 EPCglobal Inc
Printer Factory
Line Performance Analysis
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal14
Managing Fixed Assets
Can I delay facilities expansion and avoid non linear increase in fixed assets allocation ?
When will peak demand exceed available capacity ?
Are my facilities in the right place ?
Will supply chain flows continue to support our markets ?
Is my Landed Cost still competitive ?
Can I improve seasonal capacity planning ?
Do I need different types of facilities ?
2006 EPCglobal Inc
Property, Plant & Equipment
Inventory & Carrying Cost
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal15
Current Assets – Pipeline Inventory
For many industries, this is a significant cost in the whole chain
If I can better see what is where in the pipeline I can better trust supply chain information
If I can ‘trust’ this information I can reduce my ‘buffer’ inventory and reinvest the capital
Knowing what is coming at production enables better production planning
Less inventory requires less space and less handling !
2006 EPCglobal Inc
Printer Engine $100
Quad Core CPU $677
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal16
Managing Customer Service
Once they have ordered, customers want information
Is my product being made ?
Have you shipped it to me ?
Can you get it to me when I have requested it ?
Where is it now ?
When will it reach me ?
2006 EPCglobal Inc
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal17
Managing Processes
What work can I eliminate ?
Are there any duplications ?
Are we doing work because of poor visibility ?
Where are my choke points ?
What work could be done in parallel >
How much effort do we spend going after item information ?
2006 EPCglobal Inc
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
Managing Business BenefitsMarch 2009
Ian Robertson, GS1 EPCglobal18
Item Progress
Printer Factory
Process Performance
AnalysisProperty
Process Improvements
Improving operations can take many forms and involve many parts of the company as well as its suppliers and customers
Inventory & Carrying Cost
Plant & Equipment
Customer Information
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal19
Interdependent Benefits
These benefits are often interdependent and even overlapping. The same improvement can provide multiple benefits
We can illustrate this by means of the “Benefits Matrix
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal20
The Benefits Matrix
Better Use Of Capital Reduce Costs
Time To Market
Reduce Obsolesence
Operations Efficiency
Customer Focus
Managing An Item X X X
Managing Operation X X X X X
Managing Assets X X
Managing Pipeline Inventory X X X X
Managing Customer Service X
Managing Processes X X X X X X
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal21
Hidden Problems
But none of this matters at all if you can’t see what’s wrong in your operation. You can’t fix a problem that you don’t know you have!
The key to “seeing” your problems and opportunities for improvement is to “see” what has happened in your operation
And that requires “visibility” of what has happened.
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal22
A Shared Common Basis
2006 EPCglobal Inc
Visibility is not the goal of implementing GS1/EPCglobal standards and RFID technology. It is a means to an end, and that end is those business benefits.
But all of these improvement techniques are improved dramatically by accurate and timely visibility of what took place in the operations
VISIBILITY
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal23
Elements Of Visibility
What something is
Where it was
When it was there
And it really helps too if I can know
Why it was there
What condition it was in
2006 EPCglobal Inc
But VISIBILITY is knowing..
This simple approach to collecting “event” data is the key to correctly identifying problems in operations, which is the key to improving operations!
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal24
How To Get Visibility
1. Have a way to identify an item
2. Have a way to capture that information
3. Have a way to exchange that information
4. Have a way to enquire about that information
2006 EPCglobal Inc
And to know those things you have to
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal25
Did That Seem Familiar ?
2006 EPCglobal Inc
Shared Service Interactions
EPCglobal Core Servicesand other
Shared Services
EPCglobal Core Servicesand other
Shared Services
Co
mp
any
AC
om
pa
nyA
Exchange of Physical objects
with EPCs
Exchange of data about
EPCs
1010101010101
Co
mp
any
BC
om
pa
ny B
1. IDENTIFY
2. CAPTURE
3. EXCHANGE
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal26
But Why RFID ?
2006 EPCglobal Inc
This pallet has at least one “inner core”.
That means that there are cartons inside the pallet with no line of sight to their labels
Verifying all cartons present means you must
Drop the pallet
Break it down
Line up the label and scan the barcode on each carton
Rebuild and re-label the pallet
RFID can possibly read all labels as pallet passes the antennae without stopping at all
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal27
But Why RFID ?
2006 EPCglobal Inc
It is possible to do all of this using barcodes. We must remember that barcodes have served the world well for more than 30 years. But sometimes the time and effort required means that it is not viable to capture visibility data other than at critical points in the overall process.
The main advantage of RFID as a technology is that it enables the viable capture of identity and other data at many more points in the processes than was previously possible. And it can do that without interrupting the physical flow of items…
And barcodes can help by providing a secure backup to RFID. They even enable the implementation of RFID in stages across processes and trading partners.
VIABILITY
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal28
So Identify, Capture & Exchange…
2006 EPCglobal Inc
Identify Exchange
+
=
Capture
+
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal29
Gives Us Visibility Of …..
2006 EPCglobal Inc
What, When, Where, Why & How
Identify Exchange
+
=
Capture
+
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal30
Supporting Managing Benefits
2006 EPCglobal Inc
Process Improvements
Optimised Inventory
Pipeline Velocity
Customer Service
Asset Management
Trend Analysis
Vendor Performance
=What, When, Where, Why & How
Identify Exchange
+
=
Capture
+
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal31
Which Explains Raison d’Être !
2006 EPCglobal Inc
This is why the GS1/EPCglobal standards are an excellent support in achieving supply chain improvement and optimisation………
To gain business benefit
©2008 GS1 EPCglobal
doc.: IEEE 802.15-09-0200-00-004f
Submission
March 2009
Ian Robertson, GS1 EPCglobal32
Questions?
Ian Robertson
+1 832 283 1790