RFID Case Studies in Manufacturing
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1 RFID Case Studies in Manufacturing How Industry Trends are Shaping 2013 Deployments Chris Forgione, Director of Asset Tracking, OATSystems SPONORED BY
2 Agenda Manufacturing in 2013 Trends Driving RFID Adoption Case Studies 1. Multi-Facility Manufacturing 2. Design to Delivery 3. Product Innovation 4. Customer-Facing Operations 5. Enterprise Asset Management High-Level Business Drivers for Justifying Deployments
3 About OATSystems Breadth & Depth of Resources: division of Checkpoint Systems (NYSE: CKP) $800M RF technology innovator and global services provider 40+ years RF experience employees, located across 6 continents Proven Solutions: 200+ implementations in aerospace & defense, heavy manufacturing, healthcare, retail, chemicals, consumer goods. Enterprise Scale: OAT Foundation Suite most widely-deployed RFID platform Powers the world s largest RFID-enabled Manufacturing deployment: Airbus A380 Value Chain
4 Manufacturing in 2013
5 Mfg Trends Driving RFID Adoption Sustainability Re engining 5. Enterprise Asset Management Working Capital Scrutiny Maintenance Mgt Working Capital Allocation 1. Multi Facility Assembly Specialization New Markets Inter facility WIP RFID Adoption in Manufacturing Supplier Integration Specialization Reshoring R&D Co location 2. Design to Delivery Integrated Supply Chain Reshoring Faster Cycle Times Fast Fashion Lifecycle Mgt Build to Order 4. Customer Facing Operations Made to Order WIP Transparency 3. Product Innovation Advanced Materials /Indirect Materials New Processes, Variations Advanced Composites Retooling
6 Mfg Trends Driving RFID Adoption 1. Multi Facility Assembly Specialization New Markets Inter facility WIP 5. Enterprise Asset Management Working Capital Scrutiny Maintenance Mgt RFID Adoption in Manufacturing 2. Design to Delivery Integrated Supply Chain Reshoring Faster Cycle Times 4. Customer Facing Operations Made to Order WIP Transparency 3. Product Innovation Advanced Materials /Indirect Materials New Processes, Variations
7 1. Multi-Facility Assembly 1. Multi Facility Assembly RFID Drivers Specialized Manufacturing New Markets Emphasis on Logistics WIP Tracking = Shipping & Receiving
8 1. Multi-Facility Assembly 1. Multi Facility Assembly RFID Drivers Specialized Manufacturing New Markets Emphasis on Logistics WIP Tracking = Shipping & Receiving RFID Deployment Examples Airbus A380 Program What s Tracked: Inter-facility shipments (WIP) Auto-ID Technology: RFID,Wi-Fi,Barcode Enterprise Systems: SAP, Baan ERP, internal systems Bell Helicopter North American Operations What s Tracked: Work-in-process moving betw facilities in the US and Canada Auto-ID Technology: RFID,Barcode Enterprise Systems: Internal Pick Ticket System, SAP/ERP
9 Multi-Facility WIP Tracking at Bell Helicopter 1. Multi Facility Assembly RFID portals COMPOSITES MFG PLANT RFID portals RFID portals MFG PLANT 1 MFG PLANT 2 RFID portals CENTRAL DISTRIBUTION CENTER OATxpress RFID portals FINAL ASSEMBLY MIRABEL, PQ RFID portals RFID portals Oracle DB Pick Ticket Mgmt System/ SAP ERP RFID portals MFG PLANT 5 FINAL ASSEMBLY AMARILLO, TX MFG PLANT 8 MFG PLANT 6 9
10 2. Design-to-Delivery 2. Design to Delivery RFID Drivers Faster Cycle Times Reshoring Integrated Supply Chain
11 2. Design-to-Delivery 2. Design to Delivery RFID Drivers Faster Cycle Times Reshoring Integrated Supply Chain RFID Deployment Examples Vertically-Integrated Apparel Manufacturer Rockwell Collins What s Tracked: Individual Garments, Shipments, Merchandise Assortments Auto-ID Technology: RFID, Barcode Enterprise Systems: Internal ERP/WMS Systems What s Tracked: Serialized Avionics Components for Airbus, Boeing and DoD Aircraft Auto-ID Technology: High Memory Tags, 2D Barcode Enterprise Systems: SAP ERP
12 Design-to-Delivery Vertically-Integrated Apparel Manufacturer Raw Materials Management M A N U F A C T U R I N G Source Tagging 2. Design to Delivery Kitting & Shipping D I S T R I B U T I O N R E T A I L S T O R E S Store-Specific Assortments
13 3. Product Innovation 3. Product Innovation RFID Drivers Advanced Materials Tooling/Indirect Materials Proliferation New Processes, Variations
14 3. Product Innovation 3. Product Innovation RFID Drivers Advanced Materials Tooling/Indirect Materials Proliferation New Processes, Variations RFID Deployment Examples Cessna Aircraft Tier 1 Aerostructures Manufacturer What s Tracked: 1000 specialized tools across a 50,000 sq ft metal bond facility Auto-ID Technology: RFID, Barcode What s Tracked: Composite material stored in freezers, layup kits, production tooling Auto-ID Technology: RFID, Barcode Enterprise Systems: MMS System
15 Tracking Advanced Materials - Aerostructures Manufacturer 3. Product Innovation 1. Material Arrives at Loading Dock & Encoded RFID Tags Are Attached to Each Roll 2. RFID Reader Logs Receipt of Prepreg Material, Starts Tracking Freezer Out Time! Alert if Material is Close to Maximum Freezer Out Time 3. Track Material Status as it is Put In/Taken Out of Freezer 5. Once Material is Cured, Out Time is No Longer Tracked MATERIAL RECEIPT STORAGE FREEZERS LAYUP AREA CUTTING & BAGGING AREA AUTOCLAVES CURING AREA 4. Out Time Elapses When Material is Out of Freezer Legend: RFID Read Point
16 4. Customer-Facing Operations 4. Customer Facing Operations RFID Drivers Custom Job Orders Multiple Variations WIP Transparency
17 4. Customer-Facing Operations RFID Drivers Custom Job Orders Multiple Variations WIP Transparency 4. Customer Facing Operations RFID Deployment Examples Multiple Manufacturers Transportation-Automotive-Aircraft What s Tracked: Customer Work Orders Auto-ID Technology: RFID, Barcode Enterprise Systems: Multiple ERP Systems
18 The Customer-Facing Schedule 4. Customer Facing Operations Sourcing/ Receipt Materials Management Work in Process Final Assembly/ Customization Transit to Customer WORK ORDER TRANSPARENCY 5 Mar 12 Mar 19 Mar 26 Mar 2 Apr 9 Apr 16 Apr 23 Apr 30 Apr 7 May 14 May 21 May 28 May 4 Jun 11 Jun 18 Jun 25 Jun 2 Jul 9 Jul 16 Jul 23 Jul 30 Jul 6 Aug 13 Aug 20 Aug 27 Aug 3 Sep 10 Sep 17 Sep 24 Sep 1 Oct No substitutions Discounting Contract Re-negotiation
19 5. Enterprise Asset Management RFID Drivers Working Capital Scrutiny Maintenance MRO Operations Enterprise Customer Facing Asset Management Operations
20 5. Enterprise Asset Management RFID Drivers Working Capital Scrutiny Maintenance MRO Operations Enterprise Customer Facing Asset Management Operations RFID Deployment Examples Industrial Equipment Manufacturer TAP Maintenance & Engineering What s Tracked: Whole Goods, Final Assembly Auto-ID Technology: RFID,Barcode Enterprise Systems: SAP ERP What s Tracked: Engine overhaul process and associated assets Auto-ID Technology: RFID, Barcode Enterprise Systems: Custom M&E application
21 Enterprise Asset Management WIP Status 5. Enterprise Asset Management
22 Enterprise Asset Management WIP Status 5. Enterprise Asset Management WIP Status 50.3% 20.5% 5.6% 16.3% 8.1% "95% Done" Work Orders Work Orders On-Hold/ Quarantine Finished Good Unsold after >180 days Work Order Ready for Customer Delivery On Schedule
23 RFID Impact on Working Capital Driving Working Capital Performance in Manufacturing: Deloitte 2012 Study 5. Enterprise Asset Management
24 RFID = Ops Efficiency = Working Capital Reduction Operations Efficiency has greatest impact on Working Capital Improvements Accenture study Enterprise Asset Management Advanced working capital management is really about optimizing processes by eliminating waste and improving cycle times for receivables, payables and inventory
25 What Will Drive RFID in Your Organization? High-Level Business Drivers Working Capital Reduction New Business Area/New Market/New Customer Customer-Facing Processes New Products/Materials Speed to Market Safety and Quality Initiatives
26 Resources RFID Journal Articles Multi-Facility Assembly Airbus Leads The Way Bell Helicopter's On-Time Delivery Rate Climbs Higher Materials Mgmt/Tool Tracking Cessna Looks to RFID for Unlimited Visibility Deployment Guide RFID Takes Wing at Composite Aircraft Components Plant Supply Chain Integration Airbus Expands RFID Part Marking Across All of Its Aircraft Families Rockwell Collins Explores Ways to Benefit From RFID Enterprise Asset Mgmt - MRO Portuguese Airline TAPs Into RFID
27 RFID Case Studies in Manufacturing How Industry Trends are Shaping 2013 Deployments Chris Forgione, Director of Asset Tracking, OATSystems Su Doyle
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