Achieving Manufacturing Excellence with RFID. Behind the Scenes at the Best Implementation of 2007

Transcription

1 Achieving Manufacturing Excellence with RFID Behind the Scenes at the Best Implementation of 2007

2 Manufacturing Excellence with RFID: Agenda RFID in Manufacturing: Market Observations & Trends Mark Roberti, Editor-in-Chief, RFID Journal RFID-enabling Manufacturing Systems: Critical Success Factors Paul Cataldo, Vice President of Marketing, OATSystems Inside Hewlett-Packard s Award-Winning RFID Implementation Marcelo Pandini, Operational Strategy & Development Manager, Hewlett-Packard Brazil Q & A

3 RFID in Manufacturing Observations & Trends for 2008 Mark Roberti, Editor-in-Chief, RFID Journal

4 RFID Market Evolution: Business Value Tags, Hardware, Middleware Focus on Pilots, Proof of Concept Retail Mandates

5 RFID Market Evolution: from the stick to the carrot Incremental Benefit Business Value Analytics Focus on Learning, the Long View Tags, Hardware, Middleware Focus on Pilots, Proof of Concept Production Applications Putting RFID to Work Process Optimization Real-Time Integration Leverage Existing Systems Competitive Advantage Retail Mandates

6 Why RFID? Why Now? Recent Developments Impact Packaged Solutions Faster Deployment without Custom Development Gen2 Less Testing, More Reliability & Accuracy EPC Standards Focus on solutions, instead of interoperability Industry Standards Leverage existing systems & processes Real-time Integration Fix errors at the source, before they propagate

7 Why Manufacturing? Why Now? Closed-Loop Processes High Value Assets Complex Manufacturing Processes Build to Order Increasing Need for Visibility Existing Systems & Processes: ERP, MES, MRO, WMS Moving to Lean

8 Best Implementation Award 2007 Criteria: Multiple Use Cases Measurable ROI Management Sponsorship A comprehensive approach to deploying the technology Forward thinking approach to the data

9 Best Implementation Award 2007 RFID at HP: 17% reduction in required inventory Near perfect order fulfillment Better asset visibility Improved customer service for warranty repairs Hewlett-Packard Best RFID Implementation of 2007

10 RFID-enabling Manufacturing Systems Critical Success Factors Paul Cataldo Vice President of Marketing 2007 OATSystems

11 RFID Deployments: 7 Critical Success Factors 1. Deploy Proven Use Cases 7. Continuously Improve 2. Adopt a Flexible Architecture 6. Look for Broad Device Support 3. Act on Real-Time Data 5. Use a Standardsbased Approach 4. Integrate with Production Systems 2007 OATSystems OATSystems

12 RFID Deployments: 7 Critical Success Factors 1. Deploy Proven Use Cases 7. Continuously Improve 2. Adopt a Flexible Architecture 6. Look for Broad Device Support 3. Act on Real-Time Data 5. Use a Standardsbased Approach 4. Integrate with Production Systems 2007 OATSystems OATSystems

13 Critical Success Factor 1: Deploy Proven Use Cases Less Time Packaged uses deliver immediate functionality Less Cost No need for custom program development Less RISK Already tested in production environments 2007 OATSystems OATSystems

14 Critical Success Factor 1: Deploy Proven Use Cases Deploy solutions in less time, with less risk and less cost Sample Execution Workflows Tag Activation & Deactivation Reusable Tote Tracking Fixed Asset Tracking Component Verification Shipping Receiving Pallet building Pallet verification Rework Benefits Increase manufacturing precision Error-proof processes Optimize assembly lines Eliminate Shipping and Receiving Errors 2007 OATSystems OATSystems

15 RFID Deployments: 7 Critical Success Factors 1. Deploy Proven Use Cases 7. Continuously Improve 2. Adopt a Flexible Architecture 6. Look for Broad Device Support 3. Act on Real-Time Data 5. Use a Standardsbased Approach 4. Integrate with Production Systems 2007 OATSystems OATSystems

16 Critical Success Factor 2: Adopt a Flexible Architecture Run device management and business logic directly: Controller Server Match deployment to business needs Gain scalability and reduce TCO 2007 OATSystems OATSystems

17 Flexible Deployment Scenarios Three business scenarios: Small building supplier with ten locations Large electronics manufacturer with a complex distribution operation hundreds of readers a need for real-time error proofing Manufacturing automation operation Complex manufacturing process with multiple stages of assembly Need for real-time process control 2007 OATSystems OATSystems

18 OAT Enables Flexible Deployment Small building supplier with ten locations Reduces deployment costs Enables Central Control Central Server =OAT Runtime 2007 OATSystems OATSystems

19 OAT Enables Flexible Deployment Large-scale Distribution Center with Real-time Error-proofing DC1 Central Server DC2 Standard COTS Controllers Local Controller Local Controller =OAT Runtime 2007 OATSystems OATSystems

20 OAT Enables Flexible Deployment Large-scale Distribution Center with Real-time Error-proofing DC1 Central Server DC2 Real-time Error-proofing Standard COTS Controllers Local Controller Local Controller =OAT Runtime 2007 OATSystems OATSystems

21 OAT Enables Flexible Deployment Manufacturing Operation Requiring Real-time Process Control Eliminates network latency Optimizes local response time Central Server Smart Smart Smart Smart Smart Smart Smart Smart Smart Smart =OAT Runtime 2007 OATSystems OATSystems

22 OAT Enables Flexible Deployment Manufacturing Operation Requiring Real-time Process Control Eliminates network latency Optimizes local response time Central Server Real-time Process Control Smart Smart Smart Smart Smart Smart Smart Smart Smart Smart =OAT Runtime 2007 OATSystems OATSystems

23 RFID Deployments: 7 Critical Success Factors 1. Deploy Proven Use Cases 7. Continuously Improve 2. Adopt a Flexible Architecture 6. Look for Broad Device Support 3. Act on Real-Time Data 5. Use a Standardsbased Approach 4. Integrate with Production Systems 2007 OATSystems OATSystems

24 Act on Real-Time RFID Data Alert!! Outgoing Order is Incomplete DISTRIBUTION CENTER 2007 OATSystems OATSystems

25 Act on Real-Time RFID Data Alert!! Outgoing Order is On the Wrong Truck DISTRIBUTION CENTER 2007 OATSystems OATSystems

26 RFID Deployments: 7 Critical Success Factors 1. Deploy Proven Use Cases 7. Continuously Improve 2. Adopt a Flexible Architecture 6. Look for Broad Device Support 3. Act on Real-Time Data 5. Use a Standardsbased Approach 4. Integrate with Production Systems 2007 OATSystems OATSystems

27 Critical Success Factor 4: Integrate with Production Systems Existing Applications & Business Processes MRO ERP WMS MES SOA, rfbpel TM or SDK (APIs) OATxpress = OAT Running On Edge Devices (Runtime) Scenarios Event Engine OATdesigner (rfbpel) OATdevice manager BAM Real-time integration OAT Foundation Suite No need for re-tooling existing applications Introduce RFID Intelligence into existing processes Reduce time, cost and risk to bring RFID into your organization 2007 OATSystems OATSystems

28 OAT Customers: Integration Examples Use Case Multinational Distribution Heavy Equipment Manufacturing Existing System Internally- Developed WMS SAP ERP RFID-enabled System Verify manifest and destination for outgoing shipments Prevent mis-shipments with visual/ audible alarms Verify components against bill of materials Track work-in-process, batch #s Electronics Manufacturing SAP, Baan ERP Internally- Developed MES Track batch #s, testing data, component data through each stage of assembly Verify customization options at final assembly 2007 OATSystems OATSystems

29 RFID Deployments: 7 Critical Success Factors 1. Deploy Proven Use Cases 7. Continuously Improve 2. Adopt a Flexible Architecture 6. Look for Broad Device Support 3. Act on Real-Time Data 5. Use a Standardsbased Approach 4. Integrate with Production Systems 2007 OATSystems OATSystems

30 HP Brazil e2e RFID Implementation Marcelo Pandini Mercosur Ops Strategy & Development Manager Mercosur Imaging & Printing Mfg. Operations 2007 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

31 HP Today Agenda HP Brazil Implementation: Integrating RFID with Systems & Processes Key Learnings/Continuous Improvement

32 HP Today: Broad Capabilities Fortune 14 company Operations in more than 170 countries 43 currencies, 15 languages 156,000 employees 70,000 service partners 145,000 sales partners Revenue of $94.1 billion for the four fiscal quarters ended Jan 31, 2007

33 HP Mercosur Operations in Numbers Operations 02 Manufacturing sites in Brazil 03 DCs ~2,500 people dedicated to the operations 5,000~7,000 indirect jobs co-related Mercosur & Neighboring Countries Demand ~3M units/year ~90% MKT coverage Mercosur HWD demand Supply Chain: 370 Suppliers Local content ($ terms) 65% for Inkjets & 20% for LaserJet Neighboring Countries: Chile Peru Colombia Mercosur: Brazil Argentina Uruguay Paraguay

34 HP Brazil RFID Implementation 2007 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

35 RFID Technology Why is HP targeting RFID? Internal user Innovation Service Provider Standards Market Provider

36 RFID Technology Why is HP targeting RFID? Internal user Innovation Service Provider Standards Market Provider

37 Industry s Largest Supply Chain #9 non-military Supply Chain in the world #1 in material spend #1 in contract manufacturing/odm spend #1 in electronics industry logistics procurement Over 1 Billion customers world-wide Every day HP delivers: 1.3 Million Inkjet cartridges 110,000 Printers 75,000 Personal systems 3,500 Servers

38 HP Brazil: a Pioneer RFID Implementation Full Scope Implementation thru end-to-end Supply Chain Unique Approach RFID tag placed at the product case Flying by Cockpit Information available anytime anywhere HP RFID Center of Excellence Building Product DNA Recording in tag user memory all critical product information

39 HP Brazil Implementation 15 manufacturing & 4 product completion lines Over 3 million products per year Over 100 SKUs 235 bits written at UDS (User Data Space) Distribution Center Inbound & Outbound Reverse Distribution DOA (dead on arrival) In-warranty repair Over 100 readers installed & 40,000 read per day

40 Manufacturing Implementation

41 Integration Component/Batch Info from Baan ERP Customization Data From WMS System Testing Data from HP MES Order Data from WMS System

42 Material / Information Flow InkJet Lines Manufacture Manufacture 8 PCC PCC WIP In In Bound Bound Bulk Pack Storage WIP 2 1 FGI Storage Out Out Bound Bound

43 Manufacturing Implementation Tagging & EPC Commissioning reader Written Test Results Pallet Association tag antenna under conveyor

44 Manufacturing Implementation Transaction: mfg to warehouse

45 Manufacturing Implementation Packing: pen expiration date Pallet association

46 Manufacturing Implementation Transactions: all with item level tag

47 Barcode x RFID Printer DNA UPC: Manufacture Company Product Code EPC: Manufacture Company Object Type Object Code Object Serial Number User Data Space (256 bits): HP Serial Number (BR AAAA) Test Result and Quantity of Tests (Pass / 1) Firmware Version (01) HP Product Option Code (AK4) Black Pen Install by date (11/may/08) Color Pen Install by date (05/jan/09)

48 RFID: Key Learnings

49 HP Brazil RFID Center of Excellence 3 rd HP Center of Excellence in World Accredited by EPCGlobal HP RFID Centers of Excellence provide companies the ability to: learn about RFID capabilities and characteristics conduct proof-of-concept trials understand RFID requirements of current infrastructure learn and explore latest innovations and research from HP labs build RFID roadmap that best fits their business

50 HP Brazil RFID CoE Portal Conveyor Noise Anechoic Chamber Welcome Meeting Room Presentation Room 3300 square feet ~ 300 square meters

51 The next generation supply chain Upstream Value Chain

52 Variability by Manufacturing Line Mfg Station #1 Final Station Printer A comprises most of the longer processing times on line 4 High Level Volume RFID supports identification of, and detailed investigation into, specific process steps driving variability

53 Manufacturing Control Chart in Minutes Printer A 42 Printers first read at CB1 Wednesday 2/14 between 11:00 AM 2:00 PM; Later processed at Bulk Pack Tuesday 2/27 between 3:00 PM - 5:00PM 53 Printers first read at CB1 Wednesday 2/21 between 12:00 PM 3:30 PM; Later processed at Bulk Pack Monday 2/26 between 10:00 AM - 3:00PM Detailed control chart shown on the next slide

54 Final Packing Station to Shipment Quantiles Count of Serial Numbers 100.0% maximum 99.5% 97.5% 90.0% 75.0% quartile 50.0% median 25.0% quartile 10.0% 2.5% 0.5% 0.0% minimum Moments Mean Std Dev Std Err Mean upper 95% Mean lower 95% Mean N Hours

55 FIFO Analysis (colored by product) EPC serialization enables the identification of variability due to failures in FIFO management The circled printers were bypassed by another set that arrived to the station days later, but left earlier 55 December T3Ci All rights reserved

56 Summary

57 Lessons Learned Traditional ROI cannot help Business Case needs to be prepared Interoperability is key: tag vs. product vs. process vs. systems Speeds up Data Collection Visibility, visibility Use of proof-of-concept environment & pilots Information Information Decision Decision Taking Taking Structure Technology RFiD Leadership Leadership Support Support People People Process Processes should be reviewed and defined to support technology Imperfections are hidden be prepared to get a clear picture about inefficiencies Be prepared to data storage Change Mgt

58 Obrigado / Thank you marcelo.pandini@hp.com

59 Achieving Manufacturing Excellence with RFID Question and Answer Session Mark Roberti, RFID Journal Paul Cataldo, OATSystems Marcelo Pandini, Hewlett-Packard

60 Achieving Manufacturing Excellence with RFID Thank You for Joining Us! Mark Roberti, RFID Journal Paul Cataldo, OATSystems Marcelo Pandini, Hewlett-Packard