RFID A Foundation for Change

Evolution of Environmental Management:

The Quest for Information

Environmental Strategy

WHY?

Environmental Security

WHO & WHERE?

Pollution Prevention

HOW?

Pollution Reduction

WHAT?

Compliance

OR ELSE.

Era

1970s……….Late 1980s……….1990s……….2001+

Checklists……Engineering……………Information

ImpactImpact

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

• $460 Billion Spent Annually on $460 Billion Spent Annually on ChemicalsChemicals

ROI CategoriesROI Categories

• FinancialFinancial– ““..incurred savings of $1.6MM, $5.7MM, $8.4MM and ..incurred savings of $1.6MM, $5.7MM, $8.4MM and

$7.3 Million over four years..” $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 39%..”..reduced inventories 68%, hazmat acquisition 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 Identify Dates to WW II to Identify Ships & PlanesShips & Planes

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

• Price from $60 to $.25 per Price from $60 to $.25 per Tag – Headed to $.05Tag – 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 RFID huge. But the success of RFID in your business depends on in your business depends on your infrastructure.your infrastructure.

CIO Magazine - Dec 2003CIO Magazine - Dec 2003

DemandsDemands

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

Why RFID Important to DoDWhy RFID Important to DoD

• A rapidly moving force needs A rapidly moving force needs dynamic battlefields. Important to dynamic battlefields. Important to know: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 by Radio Waves Absorbed by Liquids and Distorted by Liquids and Distorted by MetalMetal

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

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

• Transition from Barcode to Transition from Barcode to 13 Digit EPCs13 Digit EPCs

• Create More Intelligence at Create More Intelligence at the Edges of the Networkthe Edges of the Network

The New ProblemThe New Problem

““Mountains of Data”Mountains of Data”

““Oceans of Information”Oceans of Information”

““Rivers of Numbers”Rivers of Numbers”

The RFID SystemThe RFID System

Trend: Real-Time EnterpriseTrend: Real-Time EnterpriseData 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 data, for your data, while making it available to appropriate trading while making it available to appropriate trading partners and customers.partners and customers.

• Integrate with your Integrate with your existingexisting information, business information, business processes, applications and data capture processes, applications and data capture technologies.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 to monitoring and automated administration out to the edge.the edge.

Information Quality ChallengeInformation Quality Challenge

Real-Time Enterprise Real-Time Enterprise ChallengesChallenges

Analyze

Collect Respond

Manage Access

Applications

BusinessIntelligence

Business ProcessMonitoring

PortalAlerts

Database Application Server

Scalable Data Archive, Aggregration, Dissemination

Security, Integration,Developtiont Tools

Oracle Sensor-Based ServicesOracle Sensor-Based Services

Event Sources Edge ServerSensors, RFID,System Events

Data Collection,Cleansing, Dispatch

MANAGE

Grid InfrastructureEvent Storage and Distribution

ANALYZE

Business ProcessesE-Business Suite

Embedded Analytics

Event-Based Architecture

ACCESS

Information Access/

VisibilityUnified Workspace

Real-Time Collaboration

Responsive Enterprise

CAPTURE

RESPOND

Business Process OptimizationBusiness Process Optimization

Business Process IntegrationBusiness Process Integration

CustomersCustomers

BusinessBusinessProcessProcess

OptimizationOptimization

Business Process MonitoringBusiness Process Monitoring

Business Activity MonitoringBusiness Activity Monitoring

PackagedPackagedAppsApps

LegacyLegacySystemsSystems

TradingTradingPartnersPartners

Product Lifecycle AwarenessProduct Lifecycle AwarenessBusinesses 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

Ben

efit

s

Oracle Sensor-Based ServicesOracle Sensor-Based ServicesEnabling the Real-Time EnterpriseEnabling the Real-Time Enterprise

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

the Planning Processthe Planning Process

80/2080/20

Key IssuesKey Issues

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

• Consider RFID in the Context of Consider RFID in the Context of Business ProcessesBusiness Processes– What Data can be on the Tag unique to What Data can be on the Tag unique to

your needs, i.e., How are chemicals 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 you to If you are at 99% accuracy and RF gets you to 99.5% -- Worth it?99.5% -- Worth it?

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

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

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

The Function of SCMThe Function of SCM

• To Control and AnticipateTo Control and Anticipate– 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 ProcessThe Requirements Process

Requirements Developer Specification Product

Planning Concept ApproachPlanning Concept Approach

Auto alertRF Benefit

Locker shelfPhysical Scene

Chem compatibility list

Data Need and Relationships

CompatibilityConcern

Chem placement in locker

Activity

Security Application

AssessAggregate

Account

NCBs

AccountAccount

• Chemical InventoryChemical Inventory• Pharmacy ModelPharmacy Model• People and PlacesPeople and Places

• Sensor Based Sensor Based MonitoringMonitoring

AggregateAggregate

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

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

• Must define the right business logic Must define the right business logic on top of the base capability RFID on top of the base capability RFID provides.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 costLow integration, implementation, maintenance cost

Robert Waits, VP Business Dev

2875 S. Decker Lake Dr, Suite 100

Salt Lake City, Utah 84119

TEL 801.973.8884www.environmax.com