Rfid roi-sme pilots presentation and results ueapme august 2012
Transcript of Rfid roi-sme pilots presentation and results ueapme august 2012
RFID – ROI – SME
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
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The project
• 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
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The Consortium
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)
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Project Objectives
• 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
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The activities
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A practical approach with the implementation, coordination and evaluation of 8 RFID pilot projects in 6 European countries: - Bulgaria - Denmark - Greece - Italy - Spain - United Kingdom Targeting SMEs of different economic sectors Each pilot has been deployed by an SME RFID systems integrator (solution provider) for an SME end-user, and it has been operational for about 12 months.
• 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
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The Pilots
End user: Cablecommerce, the leading cable trading and cable producing company in Bulgaria. Solution Provider: Balkan Services is among the leader IT consulting companies in Bulgaria. Purpose of the Pilot: Large drums of cable rolls and smaller inventory are not adequately accountable. Due to lack of information about quantities, often large coils of cables are not used efficiently. Objectives of the pilot are to improve the storage management system of Cablecommerce and to improve the logistics of the company.
Pilot 1: the Partners
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Pilot 1: Key Performance Indicators (KPIs)
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KPI Name KPI Value
March 2011
KPI Value October 2011
Target Increase Expected
(%) Utilization of Cables 2562 t.mts. 2305 t.mts. The total length of Left Overs decreases with 11 %. 10%
Faster Order Completion 20-45 min. 10-35 min. 50%
Be$er Roll Cu+ng This could not be measured before the system was implemented. 15 sec. 100%
Faster Location of the Right Drum 15-30 min 2-10 min. (the improvement is due to the implemented warehouse place function) 30%
Pilot 1: Major issues
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• 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 .
Pilot 1: Major issues
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• Difficult readability of tags due to heavy outdoor conditions - Protective plastic cases were put on
Pilot 1: Lessons learnt
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• Overcoming metal interference from cables and heavy outdoor industrial environment
It proved to be more difficult to resolve than expected. Tags have to be read from a closer distance (HF technology used) • Implement large scale project In terms of area radio coverage – make sure the area is covered and operations in mobile computers are performed successfully • RFID mobile computers are used mainly outside and in sun –
screen is not visible in the sun Sun proctection screens or screen shades to be used
End user: DUF-Rejser is a travel agency specialised in youth travel. The travels have three destinations: one in Spain and two destinations in Bulgaria. Solution Provider: RFID-Specialisten is a RFID solutions provider for industrial and tourist applications. It also operates as consultant for the design of RFID installations. Purpose of the Pilot: The main objective for this pilot is to give the guests a better service by managing the access to events and excursions with the RFID application.
Pilot 2: The partners
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Pilot 2: Key Performance Indicators (KPIs)
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KPI Name KPI Value
March 2011
KPI Value October 2011
Target Increase Expected
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%
Pilot 2: Major issues
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• 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
Pilot 2: Lessons learnt
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• 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
Pilot 3: The Partners
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End user: Koskinidis provides integrated packaging solutions, which are tailored to their customer needs. Its products include ground stands, stands for different types of confectioneries, food packaging, Cylinder-shaped packages and more. Solution Provider: SENSAP’s main activities are: integrator of AutoID/RFID solutions, customer base of SME manufacturers. Target domains/applications: manufacturing, logistics, supply chain management. Purpose of the Pilot: to apply RFID technologies for the automated identification and traceability of the company’s manufacturing processes, comprising source materials, machines, as well as finished products.
Pilot 3: Key Performance Indicators (KPIs)
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KPI Name KPI Value
March 2011
KPI Value October 2011
Target Increase Expected
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%
Pilot 3: Major Issues
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• 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 cost calculation and quality control
Pilot 3: Lessons Learnt
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• 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
Pilot 3: Lessons Learnt
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• 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”
Pilot 3: Lessons Learnt
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• 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.
Pilot 4: The Partners
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End user: STAFF SA is an apparel manufacturer (denim type products) since 1992, which operates a state-of-the art distribution center in Larissa (Central Greece), with manufacturing plants in Bulgaria, Romania, Italy, and China. Solution Provider: SENSAP’s main activities are: integrator of AutoID/RFID solutions, customer base of SME manufacturers. Target domains/applications: manufacturing, logistics, supply chain management. Purpose of the pilot: to involve the coordination of a supply chain comprising manufacturing, logistics and retail processes, in a wide area of transnational environment. Therefore, the pilot will allow the SME to evaluate interoperability aspects in the scope of inter-enterprise scenarios.
Pilot 4: The Layout
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LAN Switch
Management Console (for S-Box)
SUN Ray 2 Thin Client
S-Box Platform(Sun Ultra 27)
ELO 1715L Touch Screen
(E-Sales Man)
STAFF Shop ERP
(legacy)
IMPINJ Speedway (Smart POS)
RFID/AutoID Printer(Smart POS)
Internet
STAFF E-Shop
Intermec CK31 Mobile Terminal
WiFi
ELO 1715L Touch Screen(Smart Mirror)
IMPINJ Speedway
IMPINJ Speedway
!
Pilot 4: Key Performance Indicators (KPIs)
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KPI Name KPI Value
March 2011
KPI Value October 2011
Target Increase 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 (difficult to estimate.Can only say a much better sell out in Items with Rfid) N/A + 50%
Pilot 4: Major Issues
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• 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
Pilot 4: Lessons Learnt
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• 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
Pilot 5: The Partners
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End User: CNA Servizi Modena offers services to about 9.000 enterprises associated to CNA Modena, the association representing artisans and SMEs in the province of Modena. CNA Servizi Modena’s services cover legislation, technical standards, quality, new business consulting, business and management training, etc. Solution Provider: SATA is a company that studies, designs, prototypes and realises innovative and advanced ICT solutions for different application domains, particularly for interoperability, logistics, enterprise networks and document management. Purpose of the pilot: to achieve a satisfactory RFID enabled electronic document and dossier management, applicable to a variety of document classifications and related handling processes. The pilot is based on the application of the RFID technology to the tax assessment process.
Pilot 5: Key Performance Indicators (KPIs)
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KPI Name KPI Value
March 2011
KPI Value October 2011
Target Increase Expected
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%
Pilot 5: Major Issues
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• 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
Pilot 5: Lessons Learnt
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• 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
Pilot 5: Lessons Learnt
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• 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
Pilot 6: The Partners
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End User: BRIDGE129 designs, develops and deploys systems for smart control for the industry, the infrastructures and the services. It is taking into account regulations and highest quality standards. Solution Provider: SATA is a company that studies, designs, prototypes and realises innovative and advanced ICT solutions for different application domains, particularly for interoperability, logistics, enterprise networks and document management. Purpose of the pilot: identification of intruders entering the building yard through accesses 10-15 meters wide and without physical borders
Pilot 6: Key Performance Indicators (KPIs)
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KPI Name KPI Value
March 2011
KPI Value October 2011
Target Increase Expected
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%
Pilot 6: Major Issues
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• 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 synchronization Tuning of the sw synchronization module to support high network load
Pilot 6: Major Issues
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• RSSI graph visualization Increased resolution (up to 640x480) to show more than 3 tags a time
Pilot 6: Lessons Learnt
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• The smart pole works well After one year and a half the sensor response is very good • Surveillance is easier with the RFID application Operators 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 needed RFID active technology not yet mature and standardized
Pilot 6: Lessons Learnt
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• 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
Pilot 7: The Partners
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End user: PICDA is a company whose principal activity is manufacturing plastic bags of polyethylene of high, medium and low density. PICDA is currently working with innovative technologies to improve the degradation of plastic material. Solution Provider: Alu Group is a company dedicated to software consulting with strong interest in highly innovative issues, especially new technologies to be applied to industrial manufacturing process and production phases. Purpose of the pilot: to build an interpreter of RFID pulses capable of extracting meaning of the signals received in the context of a warehouse of the plastic film industry. The interpreter must be integrated into the corporation ERP in order to maintain the warehouse organized.
Pilot 7: Key Performance Indicators (KPIs)
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KPI Name KPI Value
March 2011
KPI Value October 2011
Target Increase Expected
Reduction in the Number of Bags that must be destroyed (i.e. featuring wrong materials) 850.000 bags 200.000 bags 100%
Reduction in the Number of Manipulation Mistakes (i.e. coils taken by mistake) 150 60 75%
Reduction in the Number of lost coils (coils that cannot be found) 25 9 75%
Reduction in the % of Orders out of Time 10% 9% 20%
Pilot 7: Major Issues
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• Low availability of Picda personal and resources The sector is suffering a big transformation because of hypermarkets’ new policy on plastic bags, coupled with the current economic crisis.
• Lack of backup hardware devices. It cannot be tested when it is in use and can be exposed to failures. • Continuous changes in production processes and software. Changes in production software have been a rule till the beginning of the project. Picda was not only implementing an RFID technology project, but a production redesign with new processes and software.
Pilot 7: Lessons Learnt
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• 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 approach with 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.
Pilot 7: Lessons Learnt
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• 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 optimizing processes and reducing operational costs, but it is important to consider the main benefits of the technology related to other substitutes technologies: no need of line of sight and the ability to read a lot of id’s in a “single shot”.
• Even though RFID technology can have a deep impact on operational costs in warehouses, the actual crisis context make it difficult to sell and implement these kind of projects.
Pilot 8: The Partners
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End user: Sovereign Security is a security company specialising in Manned Guarding and patrols. Solution Provider: Sero Solutions is a wireless systems integrator based in the UK with a focus on Mobile technologies. Purpose of the pilot: electronically record the location of a security guard at a given time and location using a NFC tag and NFC handset, sending alerts from the system in a correct fashion and in the correct timescales.
Pilot 8: Key Performance Indicators (KPIs)
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KPI Name KPI Value
March 2011
KPI Value October 2011
Target Increase Expected
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%
Pilot 8: Major Issues
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• Incorrect display of information on mobile device - Messages that were supposed to be displyed once were displayed multiple times - User clocked in a task list was not the correct one for the actual site. • 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.
Pilot 8: Major Issues
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• Incorrect information on reports Some of the guards did not enter the required information from time 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 tear from outdoors use
Pilot 8: Lessons Learnt
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• The majority of issues with the system were related to the usage behaviour rather than technical issues: Good training and governance required
• Need for a number of checks against technical pre-requisites: e.g., network signal for mobile devices, power points for mobile device charging, correct placement of tags • Training material should be provided in paper format, as a quick reference guide
• Backup systems should be in place in the event of a mobile signal failure.