RFID A Foundation for

Change

Evolution of Environmental Management:The Quest for Information

Era Compliance

OR ELSE.

Pollution ReductionWHAT?

Pollution PreventionHOW?

Environmental Strategy WHY?

Environmental SecurityWHO & WHERE?

1970s……….Late 1980s……….1990s……….2001+

Checklists……Engineering……………Information

ImpactImpact

• $1 to $10$1 to $10 Spent on Spent on Environmental Management Environmental Management for $1 of Chemical Purchasedfor $1 of Chemical Purchased

• $460 Billion Spent Annually $460 Billion Spent Annually on Chemicalson Chemicals

ROI CategoriesROI Categories• FinancialFinancial

– ““..incurred savings of $1.6MM, $5.7MM, $8.4MM ..incurred savings of $1.6MM, $5.7MM, $8.4MM and $7.3 Million over four years..” and $7.3 Million over four years..”

• Risk ManagementRisk Management– ““..identified employee problems before chemicals ..identified employee problems before chemicals

purchased..first site in state with zero violations..”purchased..first site in state with zero violations..”• OperationalOperational

– ““..while increasing production 40% over four years, ..while increasing production 40% over four years, reduced waste by 63%..”reduced waste by 63%..”

• ManagerialManagerial– ““..foundation upon which we obtained ISO 14000..”..foundation upon which we obtained ISO 14000..”

• LogisticalLogistical– ““..reduced inventories 68%, hazmat acquisition ..reduced inventories 68%, hazmat acquisition

39%..”39%..”

Total Transaction Management

Handheld to Desktop

Web-BasedArchitecture

Oracle 10gDatabase Engine

Source Rules andEngine

Storage and Distribution

RFID History and ContextRFID History and Context

• Dates to WW II to Dates to WW II to Identify Ships & PlanesIdentify Ships & Planes

• Already in Use for Already in Use for 400,000 DoD Items400,000 DoD Items

• Price from $60 to $.25 Price from $60 to $.25 per Tag – Headed to $.05per Tag – Headed to $.05

• Typical Warehouse Typical Warehouse Implementation $400KImplementation $400K

• DoD Mandates All Pallets DoD Mandates All Pallets and Cases by 2005and Cases by 2005

The The RFIDRFID Imperative Imperative

The adoption of RFID The adoption of RFID technology is inevitable. Its technology is inevitable. Its transformational promise, transformational promise, huge. But the success of huge. But the success of RFID in your business RFID in your business depends on your depends on your infrastructure.infrastructure.

CIO Magazine - Dec 2003CIO Magazine - Dec 2003

DemandsDemands

• RFID at the pallet and case RFID at the pallet and case level will have to be linked to level will have to be linked to warehouse management warehouse management systems. RFID at the item level systems. RFID at the item level will touch virtually every will touch virtually every system in the organization.system in the organization.

Why RFID Important to Why RFID Important to DoDDoD• A rapidly moving force needs A rapidly moving force needs

dynamic battlefields. dynamic battlefields. Important to know:Important to know:– What we have.What we have.– Where it is.Where it is.– And what is being used.And what is being used.

RFID Technical ObstaclesRFID Technical Obstacles

• Radio Waves Absorbed Radio Waves Absorbed by Liquids and Distorted by Liquids and Distorted by Metalby Metal

• Require Large Bandwidth Require Large Bandwidth and Data Warehousing and Data Warehousing

• For ROI Must Have For ROI Must Have Strong Data PlanStrong Data Plan

• Transition from Barcode Transition from Barcode to 13 Digit EPCsto 13 Digit EPCs

• Create More Intelligence Create More Intelligence at the Edges of the at the Edges of the NetworkNetwork

The New ProblemThe New Problem

““Mountains of Data”Mountains of Data”““Oceans of Oceans of Information”Information”““Rivers of Rivers of Numbers”Numbers”

The RFID SystemThe RFID System

Trend: Real-Time Trend: Real-Time EnterpriseEnterprise

Data Processing Internet Real Time

• Weeks• Batch• Megabytes• Punch Cards• Few People

• Days• Request/Reply• Terabytes• Human• Many People

• Minutes• Automated• Exabytes• Event Driven• Beyond People

(Still Happening)

• Manage large volumes of Manage large volumes of data and eventsdata and events in the in the most scalable, reliable, proven database.most scalable, reliable, proven database.

• Provide the highest level of Provide the highest level of security security for your for your data, while making it available to appropriate data, while making it available to appropriate trading partners and customers.trading partners and customers.

• Integrate with your Integrate with your existingexisting information, information, business processes, applications and data business processes, applications and data capture technologies.capture technologies.

• Easily add Easily add newnew information, business processes, information, business processes, applications and data capture technologies.applications and data capture technologies.

• Maximize Maximize quality of servicequality of service with a common with a common management framework through proactive management framework through proactive monitoring and automated administration out monitoring and automated administration out to the edge.to the edge.

Information Quality Information Quality ChallengeChallenge

Real-Time Enterprise Real-Time Enterprise ChallengesChallenges

Analyze

Collect Respond

Manage Access

Applications

BusinessIntelligence

Business ProcessMonitoring

PortalAlerts

Database Application ServerScalable Data Archive,

Aggregration, DisseminationSecurity, Integration,Developtiont Tools

Oracle Sensor-Based Oracle Sensor-Based ServicesServices

Event Sources Edge ServerSensors, RFID,System Events

Data Collection,Cleansing, Dispatch

MANAGEGrid InfrastructureEvent Storage and Distribution

ANALYZEBusiness ProcessesE-Business SuiteEmbedded AnalyticsEvent-Based Architecture

ACCESSInformation Access/VisibilityUnified WorkspaceReal-Time CollaborationResponsive Enterprise

CAPTURE

RESPOND

Business Process Business Process OptimizationOptimization

Business Process IntegrationBusiness Process Integration

CustomersCustomers

BusinessBusinessProcessProcess

OptimizationOptimization

Business Process MonitoringBusiness Process Monitoring

Business Activity MonitoringBusiness Activity Monitoring

PackagedPackagedAppsApps

LegacyLegacySystemsSystems

TradingTradingPartnersPartners

Product Lifecycle Product Lifecycle AwarenessAwarenessBusinesses with Intelligent ItemsBusinesses with Intelligent Items

Manufacturing plant Manufacturing DC Retail DC Retail Warehouse – Retail Store

Consumer

Degree of Collaboration

Labor SavingsLabor Savings• Automated data

collection with RFID tags/readers.

• Increased product handling efficiency.

Supply VisibilitySupply Visibility• Accurate, real-time

inventory visibility.• Inventory location.• Inventory history.

Demand VisibilityDemand Visibility• Quantity and frequency

of product purchases.• Date, time and locations

of purchases.

Product IntelligenceProduct Intelligence• Analysis of aggregate

data over time.• Supply trends.• Demand trends.• Key performance

indicators.

Incr

easi

ng B

enef

its

Oracle Sensor-Based Oracle Sensor-Based ServicesServicesEnabling the Real-Time EnterpriseEnabling the Real-Time Enterprise

RFID: RFID: From Opportunity to From Opportunity to Reality Reality

the Planning Processthe Planning Process80/2080/20

Key IssuesKey Issues

• The Difference is in the PlanningThe Difference is in the Planning– RFID is RFID is onlyonly a data delivery a data delivery

technology.technology.• Consider RFID in the Context of Consider RFID in the Context of

Business ProcessesBusiness Processes– What Data can be on the Tag unique What Data can be on the Tag unique

to your needs, i.e., How are chemicals to your needs, i.e., How are chemicals different from spare parts?different from spare parts?

– What processes are unique?What processes are unique?

Key IssuesKey Issues

• If you are at 99% accuracy and RF gets If you are at 99% accuracy and RF gets you to 99.5% -- Worth it?you to 99.5% -- Worth it?

• Consider situation where process Consider situation where process discipline critical but difficult to achieve discipline critical but difficult to achieve with barcodewith barcode

• What unique physical condition exists What unique physical condition exists that makes RF beneficial?that makes RF beneficial?

• How much How much granularitygranularity does the process does the process need?need?

The Function of SCMThe Function of SCM

•To Control and To Control and AnticipateAnticipate– DeadlinesDeadlines– Materials with ProcessesMaterials with Processes– DistributionDistribution– ResponsibilityResponsibility

Function of EMSFunction of EMS

•To Measure and Integrate:To Measure and Integrate:– LogisticsLogistics– SecuritySecurity– EmissionsEmissions– SafetySafety– Compliance DataCompliance Data

The Requirements The Requirements ProcessProcess

Requirements Developer Specification Product

Planning Concept Planning Concept ApproachApproach

ActivityActivity Chem Chem placement in placement in lockerlocker

ConcernConcern CompatibilityCompatibilityData Need Data Need and and RelationshipsRelationships

Chem Chem compatibility compatibility listlist

Physical Physical SceneScene

Locker shelfLocker shelf

RF BenefitRF Benefit Auto alertAuto alert

Security Application

AssessAggregate

Account

NCBs

AccountAccount

• Chemical Chemical InventoryInventory

• Pharmacy ModelPharmacy Model• People and People and

PlacesPlaces

• Sensor Based Sensor Based MonitoringMonitoring

AggregateAggregate

• Web Web ConnectivityConnectivity

• Secure Data Secure Data TransferTransfer

• Rapid Bulk Data Rapid Bulk Data Collection Collection

AssessAssess• Monitor Key ActionsMonitor Key Actions• Small Events Add UpSmall Events Add Up• Create IndicatorsCreate Indicators• ““Traffic Light” ModelTraffic Light” Model

• Real Time DataReal Time Data

Ready, Set, Go. Ready, Set, Go.

• 46,000 Suppliers in the DoD. 46,000 Suppliers in the DoD. This Policy touches all of them.This Policy touches all of them.

• DoD has spent $100 Million DoD has spent $100 Million over the last ten years on RFIDover the last ten years on RFID

• Must define the right business Must define the right business logic on top of the base logic on top of the base capability RFID provides.capability RFID provides.

Meeting the ChallengeMeeting the Challenge

• Know MoreKnow More– Real-time supply chain visibilityReal-time supply chain visibility

• Do MoreDo More– Automated data collectionAutomated data collection– Business process transformationBusiness process transformation

• Spend LessSpend Less– Shrinking budgets, increased securityShrinking budgets, increased security– Immediate access to accurate global informationImmediate access to accurate global information– Low integration, implementation, maintenance Low integration, implementation, maintenance

costcost

Robert Waits, VP Business Dev

2875 S. Decker Lake Dr, Suite 100

Salt Lake City, Utah 84119

TEL 801.973.8884www.environmax.com