Post on 18-Nov-2014
description
Truth in Technology 2005
The HP Experience
Guillaume OgetSolution ManagerHP RFID program
October 27th 2005
Industry’s Largest Supply Chain
• #1 in material spend – $40B– Memory – #1 – Microprocessors (Intel &
AMD) – #1 – Windows software
(Microsoft) – #1 – Hard disk drives – #1– Laser engines – #1 – Optical disk drives – #1 – Chipsets (Intel) – #1 – LCD panels and many
more – #1 • #1 in contract manufacturing/
ODM – spend ($5B)• #1 in electronics industry
logistics procurement – $1.7B• 1M service support parts per
month
Every day HP delivers:• 1.3 Million Inkjet cartridges
• 110,000 Printers • 75,000 Personal systems• 3,500 Servers
• 1B customers - 178 countries
• 21,000 patents• 675 new products in FY03
• 142,000 employees
A Brief History of RFID At HP
• 2002 June – Printing group investigates possible new business using
conductive inks August - Supply Chain / Logistics Councils authorize RFID pilot September - first proof of concept kicked off at Memphis printer facility October –Phase I of Container Security Initiative with US Homeland
Security
• 2003 January - Chester, VA ( inkjet pens ) chosen as the next RFID pilot site April - Memphis POC shows positive ROI, RFID Core Team launched June - Wal*Mart issues first retailer request for tagged goods July - HP launches NA Retail RFID program worldwide September – engaged with Best Buy, HP investigates joining Auto-ID
Center October - HP launches Warrior program for US DOD requirements
A Brief History of RFID At HP
• 2004 February - HP joins EPC Global, Dick Lampman elected to Board of
Governors April - Memphis in production, HP shipping tagged goods to Wal*Mart May - HP negotiating with China on RFID frequencies on EPC Global’s behalf Assisted Singapore in testing to determine RFID frequencies November - 21 RFID capable sites in Latin America, Mexico, USA and Asia December - TUSC program launched
• 2005 January - HP granted first temporary licenses to operate RFID UHF in China January - all 26 tier 1 sites supplying Wal*Mart now live March - first shipments to Target April - now shipping 60+ SKU’s to Wal*Mart April – working with Malaysia government to help determine frequencies
RFID Business Objectives
HP’s business objectives• create an agile data
infrastructure accessible at any time
• Get accurate distribution & sales information related to products
• Product life cycle information from manufacture to retail channels
• enable low touch processes & improvements on Supply Chain cost structures
• increase material & finished goods velocity thru Supply Chain
• quality tracking at key processes in manufacturing
• reliable information capability for Reverse Distribution processes
• faster shipping and receiving processes
HP’s RFID Program
INNOVATION
UserImplement RFID into HP’s own operations
Standards LeaderInfluence development & ratification of international standards
Service Provider
Consultancies & integration services to customers who wish to implement RFID
Market Provider
Provide HP’s customers with goods that are RFID enabled
To be a credible integrator we must be able to show that we have done it to ourselves
To be a successful user we must ensure standards are practical and beneficial
To be a successful market provider we must be part of driving standards into the market
To successfully influence standards we must be a visible and active part of the standards effort
RFID Strategies In Cohesion
HP’s RFID Program
RFID CouncilSets Overall Company Strategy
IPSG TSG CSG
RFID Core Team 28 members from across
HP
ProgramManagers
ProgramTeams
Umbrella Program Structure
RFID Program DirectorManages overall “Umbrella” ProgramProposes overall company strategy
Drives internal implementationsMain POC To External BodiesFacilitate and drive cross
pollination across every part of the company
We hate learning things twice !Finance, Systems, Logistics, HR, PR, Procurement
Program Management, Legal & Technical Support
I just know that RFID justification is in here somewhere…..
The Supply Chain Business Case• Retaining your Customer
– Tagging goods that your Customer asks you to tag
• Improving Supply Chain Efficiency– Do things at less cost by reducing labor involved– Increase Supply Chain velocity by taking less time to do the same
work– Do things better by increasing first pass accuracy– Lessen Supply Chain risk by increased in transit accountability
• Improved Data Collection– RFID reduces effort & cost to identify item– Which can make identification viable where it wasn’t before– And this can improve overall Supply Chain visibility– Which should reduce second guessing of events
HP Confidential / HP’s RFID Program
1 EPC tag per carton – 100% read on conveyor1 EPC tag per pallet – 100% read at Inbound dockConveyor speed of up to 600 feet per minute3 Texas Distribution CentersCommenced on schedule in January 2005Today more than 60 tagged products are shipped to Wal*Mart from 26 sites globally and HP is piloting with many of the world’s largest retailers
HP Confidential / HP’s RFID Program
Retail IPG RFID Plan
In transit
Regional
Distribution
Walmart
Walmart, Sam’s Club
and Neighborhood Market Stores
Product Completion
Center
Base Manufacturing
Malaysia Flextronics
Shanghai Calcomp
Shenzhen Mentor Media
BangkokVenture
Hong KongCanon
TokyoCanon
Canon China
AiO & Personal Printers
AiO & Personal Printers
Scanners&
Cameras
AIO
Toner
Toner/PersonalLaserjet
Personal LJ
Memphis Flex
Memphis Menlo
Virginia Sonoco
Walmart DC3 De-Soto,
Texas
Walmart DC1 Sanger,Texas
Walmart DC2Cleburn,
Texas
FGI Direct
FGI Direct
FGI Direct
IDS Air
Various
GuadalajaraJabill
InkJet Supplies
GuadalajaraFlex
Tag Site
Supply Site
Delivery Site
page 13Apr 8, 2023 HP Confidential / HP’s RFID Program
HP RFID Geographic Scope
RFID impacts businesses, operations and Customers in all Regions. Therefore program scope is global and pan HP in nature
Commercial sitesRetail sites
28 sites now RFID capable
10 more in progress
HP Confidential / HP’s RFID Program
First site to go live in volume in August 2004
We are also working with our large Retailers to synchronize pilot efforts
Tagging pallets & cases with EPC Class 1 915Mhz tags
Began shipping tagged cases and pallets with full system integration to WalMart April 2004
HP Confidential / HP’s RFID Program
Refining Existing Processes – Integrating with RFID
He is scanning every printer
engine to capture the
serial number
And he is applying a
barcode label by hand
HP Confidential / HP’s RFID Program
Refining Existing Processes – Integrating with RFID
RFID capable printer
Integrated RFID tag
Integrated RFID tag
HP Confidential / HP’s RFID Program
Refining Existing Processes – Prior to RFID
•Forklift selects full pallet for shipment, picks the pallet from storage, then takes it to a shipping dock
•Tells warehouse staff that pallet is ready
•Warehouse staff then scan pallet contents
•WMS system confirms pallet to order and prints shipping label
•Operator retrieves address labels and apply to pallets
•They then call forklift to load truck
•Creates “idle” time between processes
HP Confidential / HP’s RFID Program
Refining Existing Processes – With RFID
•Forklift selects full pallet for shipment, picks the pallet from storage
•Forklift approaches ship preparation tunnel, photoeye triggers process•Antenna reads pallet tag and case tags on the pallet•System identifies pallet and prints shipping label and tag•Label ready by the time that forklift reaches end of tunnel
•Pallet taken directly to outbound staging
•Idle time eliminated completely
HP Confidential / HP’s RFID Program
Refining Existing Processes – With RFID
•Before RFID:•Operator bar code scans part number and serial numbers on each individual box•WMS system verifies product and quantity•Pallet is then shrink wrapped•With RFID:•Pallet rotates on shrink wrap machine while antennas read case EPC’s from each box•WMS verifies product and quantity•Results:•Eliminates manual scan step•Reduces cycle time incorporating scanning with wrapping operation
HP Confidential / HP’s RFID Program
Receives inkjet cartridges in bulk & packages them for different markets
Starting at pallet and case level outbound, will then “walk” back up the process chain to Receiving
Includes systems changes to Shop Floor Control, PLC’s & WMS
HP Confidential / HP’s RFID Program
Receives components and raw material, manufactures printers then ships finished goods to Latin America Region
Starting at manufacturing, will then “walk” down the process chain to Shipping
Tags carry quality & control data thru the process with the unit as it is built as well as EPC Code
HP Confidential / HP’s RFID Program
Pilot Horizontal & Vertical Scope Shaping
SNcreation
assyline
functionaltest /audit
bulkpack
CIMATION (log test)
Pass/Fail Bulk Info
BaaN
completionpalletassy
audit
invoicegeneration
BaaN
raw materialflow tracking
stilettoproduct
born
pass/fail logpallet tracking pass/fail log
invoicing data
FGI backflush
product logpallet tracking
Pilot Operational Areas Affected
warehousing
pass/fail log
SAO PAULOBrazil
ChesterVa, USA
HP Confidential / HP’s RFID Program
RFID – PILOT SCOPE
Tag placing (bottom case)Read: • Material Q.A. • ERP Transfer WH to WIP
Log: •SN •Test pass/fail• Audit•Back flush on ERP system
Read: Mfg pass/failLog: •Product option •Localization Stations (5)•Back flush on ERP
Read: submit product information to Baan (Flex) for invoicing processes. HP SAP will depend on DS project implementation
HP Confidential / HP’s RFID Program
Further potential RFID efficiencies
HP Confidential / HP’s RFID Program
He is scanning every printer
engine to capture the
serial number
And he is applying a
barcode label by hand
If every incoming engine was tagged, then serial number could be captured automatically. Label could then be printed and applied automatically further down the conveyor
HP Confidential / HP’s RFID Program
Component Verification• Every item that goes into
the box is scanned by hand
• Usually under a scanner positioned over the work station
• If every item was tagged then the items would simply be put in the box
• With an automatic verification of all contents against SKU prior to pack out
• A classic example of speeding up the line
He is scanning one product barcode to
ensure the right product is picked
Correct pick will be verified on his on board screen
If items were tagged then no scan would be necessary. Product would be verified as forklift approaches pallet and failing a warning of incorrect product, driver spends all of his time and effort in moving the product on to the next process
Everything stops for this process
HP Confidential / HP’s RFID Program
Mixed Pallets
• Less than full pallet quantity
• One or more products
• Can only be barcode scanned by un-stacking pallet
• RFID wouldn’t require this
HP Confidential / HP’s RFID Program
Mixed pallet consolidation
areas could be built here
With readers attached to
building infrastructure
With minimum pallet movement
after content verification to wrap station
HP Confidential / HP’s RFID Program
Outbound Staging
Pallet staged for loading – pallet
label / tag visible
Barcode scanned to confirm
staging location
HP Confidential / HP’s RFID Program
Pallet staged for loading
Barcode scanned to confirm which dock door pallet
went out of
HP Confidential / HP’s RFID Program
Reader would be positioned at
dock door
Reader suspended above
temporary staging lane
HP Confidential / HP’s RFID Program
It Couldn’t Be Done Before RFID
•Proof Of Delivery is an essential part of trading between the shipper and the Customer
•Today that process lives or dies at just one point in the process – the Receiving Dock
•If this goes wrong, then an expensive and time consuming reconciliation process is launched
•Our research shows that it needn’t have about 80% of the time
•It also impacts supplier / Customer relationships
•RFID can help us avoid much of this pain
HP Confidential / HP’s RFID Program
Tracking Item MovementPreviously
restricted to Receiving Dock
Delivery can now be “proved” at many points in the process
HP Confidential / HP’s RFID Program
Sample Product Flow Analysis
The system brings up the items that were shipped against the PO and the PO history, including what is claimed to have been received. It appears the claim is against ScanJet 3970V for 4 units.
The system brings up the items that were shipped against the PO and the PO history, including what is claimed to have been received. It appears the claim is against ScanJet 3970V for 4 units.
Potential Technology DirectionReaders
• Drive at least 32 antenna• Power Over Ethernet ( POE )• Peer to peer communication• DSP at antenna then fiber or Ethernet to controller
Tags• < US$0.5• Peer to peer communication ( tags inside pallet talk to those on
outside )• Active pallet tag to manage item tags
Software• Migrate middleware/reader control functionality to reader
HP’s RFID Profile• We are a technology company with a long solid reputation
for innovation
• Our hardware and software offerings range from handhelds to the world’s most powerful clusters
• We ship products to all of the world’s major retailers• Deep experience in Consulting & Integration services• HP’s Supply Chain is one of the largest in the world• We are implementing RFID in our own manufacturing &
distribution operations• This combination of characteristics has enabled us
to make considerable progress on our path to RFID