Intelligently Controlling Logistics

IFFOCUSLogistics Connects

1/2005

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Dear Readers,

Logistics is playing a special role in thestate of Saxony-Anhalt’s future growthand value added. Important compa-nies from the logistics sector such asthe Otto Group are already here. Theinternational DHL hub for air freight isbeing built in Leipzig. With the pros-pect of the new parcel service RedParcel Post likewise starting in theregion, Central Germany is evolvinginto a center of logistics in Germanyand Europe. Apart from an advanta-geous geographic location, Saxony-Anhalt also provides attractive infra-structural and labor conditions.

The development of the logistics hubon an international scale will presentan opportunity to locate other serviceproviders here and to create a crystal-lization point for potentials for econo-mic development. The evolving com-plexity of products and the growingdiversity of variants are presentingnew opportunities and fields of activ-ity for logistics service providers:Customized finishing, assembling andorder picking are becoming more andmore important. In return, local SMEsare using international distributioncenters and access points to betterconnect to the global market. Bydeclaring logistics one of its targets ofsupport, the Ministry of Economicsand Labor has underscored the specialimportance of logistics for Saxony-Anhalt's economic development.

The excellent research scene inSaxony-Anhalt supplies highly quali-fied personnel and know-how. In thefield of logistics, the Fraunhofer IFFand the Institute for Materials Han-dling and Construction Machinery,Steelwork and Logistics IFSL deservespecial mention. From their develop-ment of intermodal transport logisticsconcepts to their applied research,these institutes not only benefit enter-prises and industry but also servicecompanies. As the complexity of logis-tics problems increases, the demandfor research and innovative solutionsis rising. Practical research work andthe successful implementation ofprojects at clients' facilities arestrengthening Saxony-Anhalt as acenter of logistics. Research is instru-mental for our region's further econo-mic development.

Prof. Peer Witten, Otto Group Board Member,

Chairman of the German Logistics Association

(BVL), Honorary Professor at Otto von Guericke

University Magdeburg.

News

6Groundbreaking for the VirtualDevelopment and Training Centre

ViVERA Excellence Network Kick-off

Innovation Forum on the ResourceWood

EC Bridge: China and EU JointlyResearching Logistics Solutions

Fraunhofer IFF Performing JointResearch with Asian Institutes

Cooperative Agreements withLeading Russian Logistics Institutes

Opening of the LogMotionLab

A Successful IFF Spin-off

Logistics Lectures from Industry Pros

12hundred: Magdeburg CelebratesIts Birthday

How are robots actually built?

Siemens and Fraunhofer IFF SignCooperation Agreement

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12Intelligently Controlling LogisticsProf. Michael Schenk andDr. Klaus Richter

17Integrated Logistics Chains forthe Forestry and Wood ProcessingIndustriesDr. Ina Ehrhardt

20All Models in One LaneControl System for PreviouslyIncompatible Automatic GuidedVehicle SystemsJustus Hortig

23eLOGMAR-MMobile Communications Solutions toSupport the Logistics Processes inMaritime Applications Dr. Eberhard Blümel andDr. Steffen Strassburger

26Logistics Management Game:»Distribution Center forPharmaceutical Products« Is Set Upand Successfully Tested at Otto vonGuericke University MagdeburgProf. Dietrich Ziems andArnhild Gerecke

29Opportunities and Risks throughEastward Expansion of the EU Prof. Burghard Scheel

31Management Game:Rational AG Employees Use theManagement Game ULF to Get inShape for the FutureTobias Reggelin and Kay Matzner

32The Ideal Entry into the FieldInterview with Dr. Wojanowski

In this issue ...

Products and Services

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Sharp Minds

36Third Place for Magdeburg at theMobile Award

Fraunhofer-Gesellschaft PR Prize forthe Fraunhofer IFF

New Management for the Divisionof Logistics

New Marketing andPublic Relations Manager

Double Doctorates

Innovative Teaching

Gallery

40Impressions of the Fraunhofer IFF

Outlook

468th IFF Science Days 2005

Wood Logistics

RFID and Telematics in Logistics

11th Magdeburg LogisticsSymposium

Fraunhofer Festival of Research

Guest Lecture Series Virtual Reality: Humans and Machines in Interactive Dialog

22nd German Logistics Congress ofthe German Logistics AssociationBVL

39Imprint

6 News

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»This groundbreaking is an importantmoment in the twelve year history ofour institute. The expansion is proofthat Saxony-Anhalt is opening oppor-tunities for economically profitablework.The decision to build the VDTC inMagdeburg is a clear commitment tothis center of research« said InstituteDirector Prof. Michael Schenk.

With the new VDTC building, theFraunhofer-Gesellschaft is setting anexample in Saxony-Anhalt that isreceiving international attention. TheEuropean Union, the Federal Govern-ment and the State of Saxony-Anhaltare funding this project.

Construction progress can be watchedby webcam at www.vdtc.de.

ViVERA Excellence Network Kick-off

The »Virtual Excellence Network forVirtual and Augmented RealityViVERA« started its work with a kick-off event on February 22, 2005. Thenetwork pools the research resourcesof ten institutes and universitiesnationwide. The German FederalMinistry of Education and Researchlocated the network management inMagdeburg. In the presence of BMBFParlamentiary State Secretary UlrichKasparick and numerous other promi-nent guests from government and theresearch community, the members ofthe excellence network presentedthemselves and their competencies,

which will be pooled in the newlycreated network, at the FraunhoferInstitute for Factory Operation and Automation IFF in Magdeburg. Prof.Michael Schenk, Director of theFraunhofer IFF and spokesman for theViVERA Network, underscored theimportance of virtual reality andaugmented reality technologies forenterprises’ competitiveness. Thepooling of existing competencies inthe ViVERA Network will trigger broadintegration of these technologies incompanies.

On the occasion of the ViVERA kick-off, BMBF Parlamentiary State Sec-retary Ulrich Kasparick asserted:»Innovation is vital for Germany inorder to secure our society’s standardof prosperity in the long term. Inparticular, small and medium-sizedenterprises will profit from the out-standing research competence in thefield of virtual and augmented realitywithin ViVERA.« The BMBF is provid-ing the excellence network ViVERAwith funding of 4.5 million euros until2007.

Magdeburg will soon have a high-techresearch and training center for virtualtechnologies. The new building forthe Fraunhofer IFF Virtual Develop-ment and Training Centre VDTC isunder construction in the ScientificPort. The groundbreaking ceremonycommencing construction took placeon November 15, 2004.

Dr. Horst Rehberger, Saxony-Anhalt Minister ofEconomics and Labor and InnovationCommissioner, Prof. Michael Schenk, Directorof the Fraunhofer IFF, Mayor Lutz Trümper, andDr. Joachim Welz, Head of Department ofScience, Universities and Research, Saxony-Anhalt Ministry of Education and Culture metfor the symbolic groundbreaking for the VDTC.

Groundbreaking for the Virtual Development and Training Centre

Construction site info board.

Ulrich Kasparick, BMBF ParliamentaryState Secretary.

News 7

The Fraunhofer Institute for FactoryOperation and Automation IFFMagdeburg took over the technicaldirection of the event.

www.ressource-holz.de

Accompanying exhibition in the foyer of theMaritim Hotel.

As part of the BMBF project of thesame name, a two day InnovationForum on the »Resource Wood« washeld on January 26 and 27, 2005 atthe Maritim Hotel in Magdeburg.More than 300 experts from politics,business, research and governmentmet in Magdeburg to identify paths toa sustainable wood processing indus-try. The wood processing industry inSaxonys-Anhalt has enormous poten-tial and is confronting great challeng-es. In his closing remarks, Stefan

Quitt, CEO of the FLG, said that thecreation of networks will be the pre-requisite for the success of the woodprocessing industry in Saxony-Anhalt.

The Forstdienstleistungs- undLandschaftspflege GmbH Sachsen-Anhalt was responsible for the projectwork.

Innovation Forum on the Resource Wood

EC Bridge: China and EU Jointly Researching Logistics Solutions

The notion of logistics is relativelynovel in China. Local providers arelargely unsure what is behind theterm. The demand side behaves muchthe same way. To this day, logistics inChina is focused on transportation.

As part of the EU project EC-Bridge,the Fraunhofer IFF was in charge ofcompiling a trend mapping study forChina focused on the topic of, eLogis-tics. It turned out that logistics’ com-paratively high cost shares of valueadded represent the core problem oflogistics in China. Logistics costs areapproximately 17 percent of the GDP.By comparison, this figure is 7 percentin Germany. Likewise, storage andtransport costs are comparatively highand make up 30 to 40 percent of thetotal cost for capital goods, up to 60percent for food and 70 to 80 percent

for some chemicals. Reasons for thesecomparatively poor performance val-ues are the large inventories, which inturn are the result of inadequate ma-terial flow control and inappropriateinformation systems. Other deficits arethe storage infrastructure, informationprocessing and the integration andreliability of logistic processes.

The complete trend mapping studycan be read at http://www.ec-bridge.com.

Kay Matzner presented the results of a trendmapping study at the Chinese-EuropeanNetworking Symposium in Peking on March 17 and 18, 2005.

Press conference with Prof. Klaus Hoppe, Association of German Engineers VDI; Hans-Peter Hiepe,Head of Department of Regional Innovation Initiatives, New States in the BMBF; Stefan Quitt, CEOof Forstdienstleistungs- und Landschaftspflege GmbH Sachsen-Anhalt; Prof. Michael Schenk,Director of the Fraunhofer IFF; Dr. Horst Rehberger, Saxony-Anhalt Minister of Economics andLabor and Innovation Commissioner; Petra Wernicke, Saxony-Anhalt Minister of Agriculture andthe Environment; and Wolfram Ridder, CEO of Zellstoffwerk Arneburg-Stendal.

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The State Automobileand Road TechnicalUniversity MADI is theleading Russian univer-sity in the field of logis-tics and transportation.The State ResearchInstitute of AviationSystems GosNIIAS is theRussian Federation’smost important researchorganization in the fieldof the aircraft industryand aviation research.

The Fraunhofer IFF concluded agree-ments on research and cooperationin the field of logistics with leadingresearch organizations in the RussianFederation. The Rector of the StateAutomobile and Road Technical Uni-versity MADI and the Acting GeneralDirector of the Russian Federation’sState Research Institute of AviationSystems GosNIIAS signed the agree-ment during a visit to Magdeburg inSeptember 2004. The object of coop-eration is the basic and advancedtraining of students, the training ofspecialists in business and joint re-search and development projects inthe field of logistics.

Cooperative Agreements with Leading Russian Logistics Institutes

Fraunhofer IFF Performing Joint Research with Asian Institutes

In December 2004, the Fraunhofer IFFconcluded concrete agreements oncooperation with renowned researchand training institutions. ActingDirector of the Fraunhofer IFF Dr.Gerhard Müller and Head of theInternational Competence CenterLogistics Ralf Opierzynski travelled toThailand and Taiwan for the signing.

The Fraunhofer IFF will be workingtogether with the IndustrialTechnology Research Institute (ITRI),Hsinchu, Taiwan even more closely inthe future. Interest is concentrated onthe energetic utilization of renewableraw materials on the basis of fluidizedbed gasification with downstreamtreatment and conversion processes.With a staff of more than 6000, theITRI is the largest research organizationin Taiwan. It is a partner in the»Biomass Asia« network in whichother research organizations fromChina, Japan, Korea, Thailand,Vietnam and Singapore collaborate.

Ceremonial signing of the Agreement on Technical Cooperation between the Industrial TechnologyResearch Institute ITRI Hsinchu, Taiwan and the Fraunhofer Institute for Factory Operation andAutomation IFF Magdeburg. L. to r.: Dr. Hsin-Sen Chu, Executive Vice President ITRI, andDr. Gerhard Müller, Acting Director of the Fraunhofer IFF.

In addition, the Fraunhofer IFF signeda Memorandum of Understanding(MoU) with the Thai-German Institute(TGI) in Chonburi, Thailand, which isthe largest industrial training and

educational center in Thailand.Already completed joint projects willbe used in the future as the basis tointensify the transfer of technologyand know-how in the field of logistics.

Prof. Michael Schenk, Director of the Fraunhofer IFF, and Prof. Vjacheslav M. Prichod'ko, MADI Rector and Member of theRussian Academy of Sciences, signing the agreement oncooperation.

News 9

Future collaboration was sealed whenthe Thai-German Institute TGI and theFraunhofer IFF presented theirMemorandum of Understanding.

L. to .r.: Narong Varogkriengkrai, Director

TGI/Thai; Walter Kretschmar, Director

TGI/German; Dr. Gerhard Müller, Acting

Director Fraunhofer IFF; Ralf Opierzynski,

Fraunhofer IFF.

Opening of the LogMotionLab

The »LogMotionLab« was opened onJune 23, 2004 as part of the 7th IFFScience Days. Fraunhofer IFF researchassociates presented their logisticscompetence based on the widestvariety of RFID technologies. The»LogMotionLab« provides extensiveoptions for testing and piloting.

A Successful IFF Spin-off

In April 2003, Udo Ramin, thenDivision Director of the Division ofInformation Logistics, left the Fraun-hofer IFF and, together with otherFraunhofer IFF associates, establishedthe Magdeburg branch of the AstonIT Consulting GmbH.

services« focused on plant engineer-ing, service management and multi-project and resource management.

Tectura is a successful partner in the.NET Competence Center for thedevelopment of Web services andindustry solutions for SMEs andgovernment. Other partners in thisEuropean competence center forbusiness processes are MicrosoftGermany, T-Systems, the FraunhoferIFF and the State of Saxony-Anhalt.The Fraunhofer IFF has assumed theresearch role in the competencecenter and ensures the transfer ofknowledge to the business commu-nity.

The graphic shows theexact course of a drivenlap. Colors reproducethe speeds.

Tectura’s branch office in Magdeburg.

Aston Consulting GmbH providesservices in the field of ERP systemconsulting and implementation, pre-dominantly on the basis of MicrosoftAxapta. Since the December 2004merger of Aston Business Solutionswith the Tectura AG, Ramin has beensuccessfully heading the former Astonbranch office as a Tectura branchoffice. The branch office is located atListemannstrasse 10 in Magdeburgand now has around 20 employees.

Tectura is Microsoft Business Solution’slargest partner in the world and isrepresented in over 20 countries.Tectura develops and implements integrated business solutions in thesectors of plant and mechanical engineering and process manufactu-ring such as life science, pharmaceuti-cals and chemicals. The Magdeburgbranch concentrates on »industrial

A model scenario of a go-cart racewas used to demonstrate a small partof the capability of localization andcommunications technologies in theinterplay of digital and real tech-nology.

10 News

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In the 8th Logistics Guest LectureSeries, industry pros presented intelli-gent logistics solutions at theFraunhofer IFF. Outstanding speakersfrom the field highlighted how com-panies are using logistics to tackle thecurrent market challenges and takeadvantage of logistics as a competitiveedge. Examples of topics were shorterdelivery times, increasing productcomplexity or the increasing diversityof variants.

A highlight of this year’s lecture serieswas certainly the presentation by KayMiddendorf, Managing Director of

Tchibo Logistik GmbH at the close ofthe series on June 14, 2005. Mr.Middendorf spoke on »SuccessFactors of Consumer-orientedLogistics«. Tchibo was awarded the2004 German Logistics Prize for itsconcept »A new experience everyweek«. Tchibo’s concept is based onan unparalleled continuous linkage ofretail, service and industry in theconsumer goods sector.

The series’ patron, Minister Karl-HeinzDaehre, delivered opening remarks atthe final guest lecture on June 14,2005.

April 12, 2005 Dr. Stefan Wolff, Chairman of theBoard, flow AG

April 19, 2005Wolfgang Momberg, VW. AG,Manager, Business Unit Aggregate-Aufbereitung

April 26, 2005Uwe Ortgies, Main CorporatePurchasing Division, Deutsche TelekomAG,

May 3, 2005Dr. Carl Marcus Wallenburg, WHU,CEO, Kühne-Zentrum fürLogistikmanagement

May 10, 2005Dr. Ferdinand Blömer, Head of StartupManagement S-Klasse,DaimlerChrysler AG

May 24, 2005Dr. Christoph Beumer, CEO, BeumerMaschinenfabrik

May 31, 2005Oswald Werle, CEO, inet-logistics GmbH

June 7, 2005Dr. Thomas Wozniewski, Head ofPharmaceutical Production, Schering AG

June 14, 2005Kay Middendorf, Managing Director,Tchibo Logistik GmbH

1200 years of Magdeburg is a goodreason to celebrate! The Kaiser OttoPrize was awarded for the first time inthe Magdeburg cathedral. Its recipientwas former Federal President of theFederal Republic of Germany, Dr.Richard von Weizsäcker.

Afterward, the prominent guests metat the official reception given by themayor in the former national bank

next to the cathedral: Among others,Richard von Weizsäcker, GermanFinance Minister Hans Eichel, GesineSchwan and Dr. Peter Eigen, MinisterPresident Wolfgang Böhmer andNashville, Tennessee Mayor Bill Purcell.

Congratulators included theFraunhofer IFF represented by ActingDirector Dr. Müller. The Fraunhofer IFFpresented its visual-interactive modelof Magdeburg and invited prominentfigures on a virtual tour of the city.

Dr. Gerhard Müller, Fraunhofer IFF and FederalMinister of Finance Hans Eichel at the mayor’sreception.

Logistics Lectures from Industry Pros

12hundred: Magdeburg Celebrates Its Birthday

Dr. Christoph Beumer, CEO of Beumer Maschinenfabrik GmbH & Co. KG.

News 11

The first Jugend-Akademie led child-ren on an exciting voyage of discoveryin the world of robotics.Just as at a real university, the futureengineers learned all about humans’intelligent helpers in lectures, seminarsand project afternoons.

The young engineers built their firstown service robot together withFraunhofer associates, Otto vonGuericke University and the »OneStone« network for child and youtheducation.

The Stadtsparkasse’s foundation foryouth work is supporting the projectwith 5000 euros.

How are robots actually built?

Siemens and Fraunhofer IFF Sign Cooperation Agreement

Transponders will change logistics for along time to come. Most notably, thecombination of RFID with other locali-zation and communication tech-nologies has great potential to config-ure logistic flows more securely andmore reliably. In this context, SiemensBusiness Services GmbH & Co. OHGand the Fraunhofer Institute forFactory Operation and Automation IFFhave agreed to cooperate closely.Siemens Business Services and the

Fraunhofer IFF will jointly developscenarios and operational solutions fordifferent sectors.

About the cooperation with theFraunhofer IFF, Ulrich Assmann fromthe management of Siemens BusinessServices said: »In RFID projects,Siemens is a one source provider for allIT and process consulting includingsoftware and hardware. The Fraun-hofer IFF associates’ research and

development know-how enables us to test RFID solutions in theLogMotionLab and optimally custom-ize them for our clients.«

The test lab technically outfitted bySiemens Business Services is equippedwith the majority of RFID technologiescurrently on the market and in devel-opment. Individual systems can betested for their practicability. Theresearch associates are able to analyzeand simulate clients’ logistics flows intheir lab. They test which technologiesbest match a particular client’s require-ments and develop prototypical solu-tions. If a client is convinced by a solu-tion’s advantages, Siemens BusinessServices is ready as an experiencedimplementation and IT partner to inte-grate the RFID solution in the client’ssystems.

Dr. Ulrich Schmucker explains to child students how the walking robot Katharina functions.

Prof. Michael Schenk, Director of the Fraunhofer IFF, and Ulrich Assmann, Siemens BusinessServices Management, met at the Fraunhofer IFF to sign the cooperation agreement.

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Information is evolving into one of themost important factors in logistics.New information and communicationstechnologies are allowing better andbetter solutions to support logisticsprocesses.

In this context, particular importanceis attached to the integration of RFIDsystems. These are integrated inproducts and carry a multitude ofinformation. Intelligent logistics isfundamentally shaped by intelligentlogistic assets, which move autono-mously and self-controlling in logisticsnetworks. The »Internet of Things«

is emerging in which, for example,containers, assemblies and singlecomponents use embedded I&C tech-nologies to find their own waythrough internal and externalnetworks

Regional and global flows of materi-als, goods and products must meetseveral requirements in order tosupport intelligent logistics: All part-ners involved must apply uniformstandards. They must be networkedwith one another. The accompanyinginformation must be parallel to or inpart even ahead of the flow.Standardized processes and measur-ands are needed to ensure the qualityof logistics and to be able to plan andcontrol the logistics service.

Intelligently Controlling LogisticsProf. Michael Schenk and Dr. Klaus Richter

The international exchange of goods and products is steadily growing.Yet the information technologies now in use are unable to sufficientlyorganize the flows of goods both more securely and reliably: The lossesfrom misdirected containers, palettes or luggage each run in double ortriple digit millions. Modern solutions not only have to provide the capa-bility to reliably identify mobile assets of different types and in changingenvironmental conditions but beyond that also to localize them, commu-nicate with them, navigate them and control them.

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Standardization also includes a rasterwhich defines when, where and dur-ing what event data is acquired. Allactors involved log their asset, forexample, upon receipt and shipment.Logistics processes can thus be evalu-ated and compared. The stipulation ofstandards makes it possible to inte-grate DP between sender, logisticsservice provider and receiver. As aresult, inter-company planning andcontrol of the flows of goods basedon time, quantity and location arepossible.

The increase in speed and highestdemands on process reliability andlevel of service on the one hand andthe complexity of the processes on theother hand are necessitating newcontrol concepts: Active action andnavigation must be possible in everylink of the logistics chain. Intelligentlogistics systems of the future allowevent-oriented navigation, planningand control as a function of the statusof the logistic asset and the processchain.

Knowledge Is Power…On the way to intelligent logistics,strategic importance is attached tocontrolling information and communi-cation flows. This is only possible byusing the newest information technol-ogies and integrating them in existingsystem landscapes. New control con-cepts demand high quality integrationof information and communication.This is characterized by informationflowing concomitantly and ahead.RFID technology (Radio FrequencyIdentification) is crucially important fornew I&C concepts for logistics. RFIDbased identification, localization andcommunication combined with Inter-net applications form the foundationfor intelligent logistics networks.

RFID technologies make it possible toprovide diverse information decentral-ly on logistic assets. The data carrierscan be communicated with on thebasis of alternating electromagneticfields without either physical or visualcontact. A significant advantage of

RFID technology over conventionalauto-ID systems is the rewritability ofthe memory chips by read/writeantennas with standardized dataprotocols. The assets themselves canthen be communicated with whenthey are in motion. Special active RFIDcomponents equipped with radiotechnology such as mobile radio orGPS can also be localized. They repre-sent another important building blockfor intelligent logistics: The asset itselfprovides information about its locationat any moment.

Linking RFID and sensor systems cre-ates the prerequisite for automatedrecording of events and statuses.Different sensors are available formeasurands such as temperature,pressure, humidity and acceleration. Ifgoods are overheated or overcooledor if sensors detect unacceptablevibrations, this information can pre-cede the goods. Thus spare parts canbe delivered early and nasty surprisesare prevented when the goods are re-ceived and functionally tested. In com-bination with VR scenarios, human-machine interfaces can be designed tobe user friendly. Visual-interactivescenarios on mobile terminals can beused to evaluate the acquired dataand present it user friendly. Moreover,VR based training systems can beused to optimize human machineinteraction.

The interaction of the differentcomponents generates a completesystem based on high-tech I&C tech-nologies. As a result, logistic assetscan be navigated along the entirevalue added chain. Their integrationalong the entire value added chainrepresents a fundamental prerequisitefor the design of intelligent logisticssystems from which great opportuni-ties for new innovative services can bederived for the future. Predictions of aboom for RFID systems are not onlybased on the steadily rising use ofRFID chips but also in particular on theembedding of RFID technology indiverse superordinate I&C systemssuch as ERP for example.

Customization as an Opportunityand a ChallengeThe trend toward customization isopening new fields of activity forlogistics service providers. The increasein customized product variants isleading to new value added chains,which enable customized finishingdecentrally and partially outside theproduction facility. This is leading tonew divisions of labor and requiresnew forms of customer contact. Asthe division of labor takes on newforms, logistics service providers haveto increase their know-how. This isimpossible without additional knowl-edge about the product. Only anincrease in know-how and integrationin the digital information chain fororder processing will enable logisticsservice providers to offer product-based services.

The capability to pass along the»increase« of knowledge to the logis-tics service providers must first beensured however. RFID technology isparticularly suited for doing this. Datanecessary for the logistics serviceprovider can be stored directly on theproduct in order to perform the stipu-lated services. If the quantity of datathat has to be available is larger,access to a database would be suita-ble: In this case, only identificationdata would be delivered with theproduct. All other data is available in acommonly used database system.Thus any quantity of data desired isavailable at any time. The technicalconnection is over mobile radio andthe Internet.

By using RFID technology, logisticsservice providers can more easilyimplement value adding services forcustomers. A model warehouse man-agement application illustrates this:When an RFID system is introduced,the logistics service provider canreduce his expenses if he takes overthe stockkeeping for the customer.Storage and disbursement are auto-

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matedly registered by the RFID system.Introducing inventory managementand taking inventories »at the push ofa button« additionally suggest them-selves. The data acquired from this isprocessed and transmitted with thecurrent warehouse data to the cus-tomer. It would also be possible, forexample, to automatically fill thewarehouse if its inventory falls belowa minimum.

Quo Vadis Logistics?Logistics is no longer conceivabletoday without modern I&C technolo-gies. The worldwide traffic in goodsand increasing legal requirementsnecessitate traceability and concomi-tant information flows. The increasingcomplexity of logistics chains isaccompanied by demand for informa-tion transparency. RFID technologiesmake it possible to optimize the capa-cities used and to control them basedon status and events. The use of elec-tronic labels (transponders) has manyadvantages here. The components areindividually writable and can be identi-fied and localized –depending on thetechnology used – over distances ofseveral hundred meters without visual

contact between asset and reader. Notonly are new technologies in themanufacture of transponders expand-ing the range of uses but furtherdevelopment of polymer technology inparticular will also cut manufacturingcosts.

Linking the information flow with thematerial flow is one of the primaryobjectives in logistics. Goods shouldbe identifiable the whole way alongthe value added chain, i.e. from theirproduction to the end consumer. Ifthis is assured, then this is called asecure supply chain. This is the casehowever only when all participants inthis chain use the RFID technologyamong their companies. Otherwise

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this is merely a secured transit ofgoods between individual members ofthe value added chain.

Increasing security precautions ininternational freight traffic can only besatisfied with the aid of high-tech I&Ctechnologies. With their »24 HourRule«, for example, US authoritiesdemand that shipping companies andother carriers send exhaustive deliverydata over a defined electronic inter-face. This must be done twenty-fourhours before the loading of any shipsetting course for an American port ofdestination. The close interconnec-tedness of international supply chainscauses them to react to even thesmallest changes and disruptions. Ifsuch changes are not immediately

communicated, they have a negativeimpact on any smooth continuity ofthe supply chain.

The general trend toward customizedsolutions in the sector of capital andconsumer goods is confronting logis-tics with new challenges: The lot sizesof individual shipments of goods arebecoming smaller. In internationaltransportation, that means customsclearance costs are also increasing.RFID technology can be used here inthe future to simplify and thus alsoexpedite customs formalities at theborders to trade zones. The potentialto expedite one’s own transportationhas frequently been exhausted orneeds larger investment in infrastruc-ture.

Other trends in retail such as productliability or rising profits in Internetcommerce are compelling logisticsservice providers to expand their port-folios to include return management.Thus another component is beingadded to the logistics control loop tobe controlled, in which a logisticsservice provider can assume a primeposition.

The challenges in logistics describedmakes new forms of customer reten-tion possible. Newly acquired productknow-how among logistics serviceproviders offers additional opportuni-ties in the service sector. This productknow-how can only be acquired by

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integrating the concepts of the digitalfactory into logistics. This conse-quently leads to a digital logisticssystem. A digital logistics system canbe used to organize all necessarystages of work in order to be able toconfront the new challenges of logis-tics that is quality assured andcontrollable all the time.

LogMotionLabThe Fraunhofer IFF »LogMotionLab«(Lab for Moving Logistic Assets) pro-vides support to face these new chal-lenges in logistics successfully. In the»LogMotionLab« RFID technologiesare tested and neutrally assessed fortheir practicability for specific businessprocesses. The lab considers itself aservice center for companies, workingtogether with clients to develop, testand utilize different potential applica-tions of RFID technology in logisticsprocesses.

In a testing facility of around 1800 m2

located at the Fraunhofer IFF, visitorsto the »LogMotionLab« will find alarge part of the RFID technologiescurrently on the market or in develop-ment:

– Numerous data carriers for use inthe industrial environment

– Mobile and stationary read/writesystems for automatic identifica-tion and data processing

– Demonstrators for demonstratingtypical RFID scenarios

– Sensor systems for recording andcounting flows of goods andpedestrians (e.g. for e-ticketingapplications)

– Technologies for localizing assetsindoors and outdoors (RFID, wire-less LAN, GPS, GSM, Loran-C)

– Infrastructure for piloting andcustomized solutions

– Numerous Web services for theintegration of external conditiondata

– Devices for communication (cellphone, notebook, organizer)

– Hardware and software for dataand order management

»LogMotionLab« users have a varietyof advantages:

– They can assess the technicalpotentials of RFID technology andcalculate their cost effectivenessunder field conditions.

– They can conduct customized tests– both in the lab and at their ownfacilities connected to their logis-tics processes – and develop andproduce training scenarios

– They can develop and producetraining scenarios.

The equipment of the LogMotionLab,the consulting know-how of theFraunhofer IFF and its partners andthe basic knowledge of the UniversityMagdeburg are ready for clients andinterested parties to take advantageof them. No investments need to bemade in RFID systems at this stage. Iftest operation is convincing and theRFID technology should be integratedin real operations, an experiencedconsulting and implementation part-ner such as Siemens provides support.

Contact:Dr. Klaus RichterMaterial Handling Engineering andSystemsTel. +49 (0) 391/40 90-420Fax +49 (0) 391/40 90-432klaus.richter@iff.fraunhofer.de

Value adding services that logistics ser-vice providers can offer their cust-omers are warehouse management,shipping preparation with issue of de-livery invoice, packaging and plasticwrapping, labeling, order picking, finalpackaging and assembly. Logistics ser-vice providers can also take over quali-ty control.

The intensified utilization of the Inter-net as a potential for client purchasesis not just causing the individual provi-ders’ transportation services toincrease. In addition, return manage-ment must also be established. Thereis potential for logistics service provid-ers to become active here too.Ultimately, by taking over the moni-toring and organization of the entiretransportatioin route along the valueadding chain, a logistics serviceprovider is able to optimize both

the customer’s external and internaltransports. Among other things, thisincludes the fields of transportplanning, supplier and carrier training,operative transport monitoring, inter-ventions in transports underway, shortnotice authorization of special trans-ports and comprehensive reporting.

Fields of Activity for Logistics Service Providers

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Timber production and processing is acomplex process with many partiesinvolved and completely differenttasks. New technologies and organiza-tional forms are needed to improvethe information flow and the collabor-ation among all the parties involvedand to make Germany internationallycompetitive in the forestry and woodprocessing industries. The FraunhoferInstitute for Factory Operation andAutomation IFF has presented a solu-tion, which demonstrates howrequirements and prerequisites of theindividual actors from the forestry andwood processing industry can be satis-fied in an integrated logistics chainfrom the forest to the factory.

In a run-up project, the state ofSaxony-Anhalt studied the basicorganizational and technical condi-tions in the regional forestry andwood processing industries. The studyclearly revealed that, for the forestryand wood processing industries inSaxony-Anhalt, demand exists for thedevelopment of a pilot system. Newtechnologies should optimize the logi-stics chain from the forest to thefactory for all actors. Apart from thewood processing industry's demandfor cost effectiveness and optimiza-tion, special significance is also at-tached to environmental protection toensure management protects resourc-es on a long-term basis.

Requirements of an Integrated WoodLogistics ChainThe »Wood Logistics Demonstrator« isaimed at developing and producing atechnical pilot solution for Saxony-Anhalt's regional forestry and woodprocessing industries. The demonstra-tor contains an Internet platform forthe planning, control, monitoring andcontrolling of wood logistics chains.Access to a shared database makes itpossible to better coordinate process-es among those involved in the logis-tics chain »from the forest to thefactory«. Further, new technical possi-bilities of on site data acquisition andprocessing are being tested.

The development of the demonstratorpresupposes the incorporation ofmany factors: Technological, economicand ecological interrelations have tobe balanced with the basic regionalconditions of forestry operations and

Integrated Logistics Chains for theForestry and Wood ProcessingIndustriesDr. Ina Ehrhardt

The German forestry and wood processing industries are subject toenormous economic pressures. High labor costs and intense competitionensuing from foreign wood deliveries are significantly affecting the woodmarket in Germany. The Fraunhofer IFF has presented a technicalsolution for the forestry and wood processing industries. It is basedon Internet technologies and employs mobile applications.

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Development of cost cuttingpotentials– By minimizing inventories (stacks)– By optimizing transport– By minimizing fuel consumption,

among other ways, by minimizingsearch processes

– By servicing and maintaining tech-nical infrastructures

– By protecting the environment andconserving nature

– By providing for conservation,sustainability and reclamation

Greater efficiency of the value addingand logistics processes– By inviting bids for services– By establishing cooperations and

extending offers to cooperate – By coordinating, controlling and

monitoring resource use– By improving planability

(information exchange whencoordinating and synchronizingsubprocesses)

Increased transparency – Of activities, events, conditions and

developments

Improved information and communi-cation without media breaks – To improve up-to-dateness and

security– To facilitate documentation and

statistical work

Prevention– Through logistics process planning

and control incorporating aspectsof environmental protection andnature conservation

– Through prompt information onand communication of aspects ofenvironmental protection andnature conservation

service and wood processing compa-nies. The participating companies’size, structure, personnel and equip-ment have to be allowed for as muchas the topography of forest areasincluding protected areas and condi-tions of forest ownership.

The Functions of the » Wood Logistics Demonstrator«Increasing cost efficiency and overallefficiency and ensuring environmentalprotection and nature conservationwere uppermost during the develop-ment of the »Wood Logistics Demonstrator«.

On the one hand, the demonstratorprovides a technical platform. On theother hand, its also provides advancedequipment such as mobile terminalsfor testing. Forest owners, forestmanagement and processing service

providers, carrier companies and thewood processing industry have thefollowing functions at their disposal:

– Planning, monitoring and controlof logging and of transport con-tracts and processes;

– Integration of road condition andweather information for active andenvironmentally compatible naviga-tion of humans and machines;

– Localization and event-based navi-gation of mobile assets in theforest;

– Fast, integrated (paperless) andcorrect data transmission;

– Coordination and condition-basedcontrol and monitoring of woodflows;

– Reduction of forest pollution byproviding environmentally relevantinformation in wood logisticsprocesses.

These functions are made availablewith the demonstrator's various com-ponents in the Internet or on mobileterminals and can be supplementedby basic functions such as user, rightsand master data management.Consequently, every party involved hasthe capability to select individuallyrequired functions and to customizethe demonstrator's range of functionsfor individual use.

The demonstrator's core and basis is adata model, which links the individualcomponents and their data with eachother. Setting up a communicationsplatform on the basis of the demon-strator is planned for the future. Theregional actors' existing enterpriseresource planning systems and data-sets will be connected to the plat-form.

Phases in the wood logistics chain

Main foci During Implementation of the »Wood Logistics Demonstrators«

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The Components of the »Wood Logistics Demonstrator«The »Wood Logistics Demonstrator«consists of the folowing components:

1. Contract management allowstendering and bundling services.In addition, orders are planned,controlled and monitored here.The users’ master data is alsomanaged

2. A tool for monitoring status is alsoavailable. The status of orders orsites or quantities of stacks can besystematically monitored. Unusualevents, losses or temporary restric-tions of lands or roads can bemonitored as can the status ofresources.

3. A navigation and routing systemallows optimizing transportationon the basis of economic or eco-logical parameters and makes itpossible to calculate transportationcosts.

4. Auxiliary services facilitate resourcemanagement, make weather andstorm information available andprovide functions such as driverlogs.

5. Environmental information is anintrinsic part of the platform ser-vices and supports preventiveinformation, data collection andsystematic aggregation and combi-nation with logistics data. It supports sustainable forestmanagement by providing infor-mation to those involved andincorporating environmentalaspects such as designated pro-tected areas when planning andexecuting work in a forest (e.g.routing allowing for protectedareas, monitoring of forest man-agement and its consequencessuch as damage, etc.)

These coordinated components andthe common data model provideinteracting functions.

The »Wood Logistics Demonstrator«not only demonstrates technologicalsolutions for support but also organ-izational requirements for the im-provement of the information flows.

The desired effect of cutting the costsof the wood logsitics chain and opti-mizing it crucially depends on thewillingness of the parties involved notonly to provide information but alsoto incorporate the information provi-ded in their own planning.

OutlookIn the run up to the piloting phase ofthe demonstrator, various parties inSaxony-Anhalt have been recruited inthe two selected test regions ofBurgstall and Blankenburg. Theyintend to test the application andsuitability of the various technologiesin on site use.

The test phase will result in the re-gional actors of the forestry and woodprocessing industries being moreextensively coordinated. Sustainablyorganized workflows including collec-tively accepted user and rights con-cepts will be initiated. Componentsand services to be shared as well ascoordinated cost and operator modelswill be prioritized for an integrativecomplete system and the aforemen-tioned services, technologies andfunctions.

The Fraunhofer IFF has already beguninitiating this discussion process andwill be doing far more than just acting as a moderator overseeing theinterface to the »Wood LogisticsDemonstrator«.

Contact:Dr. Ina EhrhardtInformation LogisticsTel. +49 (0) 391/40 90-811Fax +49 (0) 391/40 90-555ina.ehrhardt@iff.fraunhofer.de

Map of forest roads and streets with current data.

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Automatic guided vehicles for auto-mated internal transportation havebeen around since the mid 1960s. Sofar, approximately 20 000 vehicleshave been built throughout the world.The majority of manufacturers andusers of such driverless vehicles are inGermany. When the vehicles are usedtogether with peripheral equipmentand a master control, this is called anautomatic guided vehicle system.If the use of automatic guidedvehicles is to move forward, upgrade-able and open master controls have tobe developed. Existing systems fromvarious manufacturers are incompat-ible with each other. As a result, usersare tied to a system and its respectivecomponents from the same manufac-turer once they have been purchased.

If the manufacturer discontinues aproduct line it is impossible to useanother manufacturer's vehicles andcomponents in its place. That is whysmall and medium-sized enterprises inthis sector especially have difficultiesestablishing themselves on the market

Communication for All ComponentsIn the project FAHRLOS (Fahrzeugleit-steuerung - Open Source), a modularframework called openTCS (OpenTransportation Control System) wasdeveloped, which is the foundationfor complete vehicle master controls.Several firms and a consultant fromthe VDI working group »AutomaticGuided Vehicle Systems« were repre-sented in the project consortium andcontributed their knowledge andrequirements of a master control.

All Models in One LaneControl System for Previously Incompatible Automatic Guided Vehicle Systems

Justus Hortig

Trucks are loaded, start up and drive to their destination where rhey areunloaded, provided with a new assignment and sent to their next des-tination. All this takes place without anyone having to intervene in theiroperation. Various automatic guided vehicle systems doing just this arealready in use. The only problem up to now: Different manufacturers'systems are incompatible with each other. The Fraunhofer IFF was involved in developing a master control that allows integrating differentmanufacturers' components in one system.

In addition, the companies providedassurances that the software devel-oped would be used in futuresystems. On the basis of openTCSthey can provide their own mastercontrols to upgrade their own driverunits and components. To do this,plug-in mechanisms and standardformats have been used to design theinterfaces for the easiest integrationpossible.

The manufacturers' obligation todeliver the control software with opensource code leaves the option openfor users to integrate other manufac-turers' modifications and upgrades inthe future.

Disclosure of the source code bringsusers and manufacturers a greatadvantage: A standardized mastercontrol will increase the acceptance ofautomatic guided vehicle systems. Inview of their systems' greater flexibil-ity, vendors and manufacturers ofcomponents will profit from greatersales. Therefore the objective of theproject is also to bring the frameworkdeveloped to the largest possible circleof users.

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Automatic Guided VehicleControl Center The master control's most importanttask is processing the transport orders,i.e. the transportation of goods fromone handing station to the next. To dothis, automatic guided vehicles areused, which move autonomouslyalong induction rails or are laser-navigated from signal point to signalpoint. In the field, the transport ordersare broken down into individual trans-port orders from signal point to signalpoint and processed successively: Thevehicle is transferred from one signalpoint to the next. This makes optimaltraffic routing possible and makesallowances for the shortest route andblocked roads. The signal points alsomanage road occupancy. In order toprevent collisions, only one vehiclemay be traveling in one occupiedstretch of road. Vehicle dispatchingassigns an optimal vehicle at thebeginning of a transport order andmanages deadheads and batterycharging cycles.

The interface between master controland vehicle forms the vehicle driverunit. This can be easily integrated bythe manufacturer in the openTCSmaster control. Through the driverunit, the vehicle reports its currentposition to the master control andconverts commands into actions.Apart from »pure« vehicles orders,there are other commands dependingon the type of vehicle, which can bedefined during transport planning.These range from »honk in thefollowing section of road« to »reducespeed« up through unload or load ata transfer station.

Go get the car…Transport orders can be issued bydifferent entities, e.g. manual userinput, system signals, superordinatematerial flow control or internalmechanisms. All necessary compo-nents are interconnected in onenetwork.

This includes the master computer aswell as programmable controllers, userterminals and material flow compu-ters. The user terminals permit theinput of orders and the monitoring ofall components of the system. Internalmechanisms react to signals fromsensors or to programmed operationsin the control core.

Configurable actions: Users can customize the master control for their specifications and requirements.

Modeling: All information important for the vehicle system is entered into the layout.

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Thus it can be stipulated that thetransportation system activates actionsor orders when there are particularambient conditions. A system scannercan, for example, activate a transportorder or open and close an automatedguided vehicle’s rolling door.

Complete System DesignTo generate the system layout, thedevelopers have a modeling tool attheir disposal to develop all compo-nents. Signal points are linked withroutes and transfer stations, potentialparking for vehicles is specified,vehicle types and vehicles are defined,maximum speeds are set, etc.

A simulation can be used to check theoptimal utilization of the generatedlayout with internal mechanisms,vehicles and routes. Vehicle-like loop-back drivers are used to simulate theprocessing of transport orders. As aresult, driving assignments are proc-essed exactly as in the real system.

Various resources, primarily developedat the Fraunhofer IFF, are available togenerate realistic loads.

In a load generator, as many loadsources as desired can be configured,which issue transport orders periodi-cally or stochastically. The frequency ofdispatching can be specified in hourlyresolution as a load distribution curve.

A special tool is the load recorder,which can log all transport ordersboth in real and simulated operation.

As a result, on the one hand, realsystem operation can be reenactedwith varying layouts. On the otherhand, even load cycles recorded oncecan be used again and again forbetter comparability of simulationresults.

FAHRLOS on the MoveAs a symbol of the success of de-velopment, a demonstration systemwith two different types of vehicleswas erected at the FraunhoferInstitute IML in Dortmund at the closeof the project and presented onMarch 18, 2005. In addition, severalconsortium partners have alreadyannounced they will be using themaster control software for automaticguided vehicle systems yet this year.

Contact:Justus HortigRobotic SystemsTel. +49 (0) 391/40 90-240Fax +49 (0) 391/40 90-250justus.hortig@iff.fraunhofer.dewww.opentcs.org

VDI Guideline 4451 Blatt 7. It describes the

requirements an automatic guided vehicle

sytsem has to meet and what functions and

interfaces are prerequisites.

The FAHRLOS Project

The project FAHRLOS (Fahrzeugleit-steuerung – Open Source) developeda modular framework called openTCS,which is the foundation for creatingcomplete vehicle system mastercontrols. It conforms with the VDIGuideline 4451 Blatt 7 (see diagram)and makes all the functions describedavailable in software.The following partners were involvedin the project:

– Bleichert Förderanlagen GmbH,Osterburken

– Daum+Partner MaschinenbauGmbH Engineering, Aichstetten

– Fox GmbH – Fahrzeugautomatisierung, Lehrte– Fraunhofer Institut for Factory

Operation and Automation IFF,Magdeburg

– Fraunhofer Institut for MaterialFlow and Logistics IML, Dortmund

– Götting KG, Lehrte

– iMAR GmbH, St. Ingbert– ifak Institut für Automation und

Kommunikation e.V., Magdeburg– Siemens AG

ProduktionsautomatisierungAutomobilindustrie; NL Stuttgart

– VDI-Arbeitskreis »FahrerloseTransportsysteme«

– Weissenburg Industrie-TechnikMaschinenbau GmbH & Co. KG,Wedel

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The project eLOGMAR-M builds uponthe results of already successfullycompleted EU-projects. These preced-ing projects researched the potentialsfor optimization through computersimulations in Baltic ports. On thebasis of the results, prototypical ITsolutions were developed to supportthe logistics processes. Typically, thesesolutions were for stationary use atone or more locations.

The eLOGMAR-M project is executingthe next logical step and is dealingwith mobile solutions for logisticproblems. The focus here is on Web-based and mobile solutions for distrib-uted work when there are problemswith logistics.

The applications being aimed for aregeared toward the management andcontrol of logistics processes along aselected maritime trade route: »BalticSea feeder ports – Western Europeanhub port (Hamburg) – Mediterraneanports – Chinese ports«. This maritimetrade route serves as a practical sce-nario for the tests and the demon-strators to be developed.

The project includes partners from allthe nations involved in this traderoute. The list of partners covers 18institutions from 9 countries. A coregroup of partners comes from theBaltic states of Latvia, Estonia andLithuania, since, as new members ofthe European Union, they need specialefforts to adapt their infrastructure tothe transportation network of theother European partners.

eLOGMAR-MMobile Communications Solutions to Support the Logistics Processes in Maritime Applications

Dr. Eberhard Blümel and Dr. Steffen Strassburger

The control of maritime logistics chains is a complex task with manydifferent actors. Merchants require information about their goods.Carriers rely on exact information about delivery times and places.Containers are sent on global journeys. In the Port of Hamburg, forexample, around 370 million containers were handled in 2004. Thatmeans one million per day. Information on the containers must beavailable not only to the port operator but also other partners such ascustoms officials and insurance agencies. The particular challenge ofthe eLOGMAR-M project is to create a platform that can be used by allpartners in distributed environments.

Maritime trade routes selected for the study of mobile IT solutions.

Other partners come from Germany(e.g. Hamburg, Frankfurt and Magde-burg) and have established logisticscompetencies. Along the trade route,the partners are rounded out in theMediterranean region with partnerorganizations from Greece (Salonika).The consortium is completed by twoChinese partners that work in thefield of logistics.

Apart from the research organizationsin the consortium headed by theFraunhofer IFF, logistics service provid-ers are represented as end users fromthe port sector, e.g. operators in theports of Klaipeda in Lithuania, Riga inLatvia, Kokkola in Finland andSalonika in Greece. The HamburgMarketing GmbH is involved in theproject as the German partner,contributing important impulses andinnovations.

One of the project's primary objectivesis dealing with the problems of organ-izing a pool of cooperating partners,who collaborate in a distributed workenvironment along the selected traderoute. This requires the integration oftheir electronic information resourcessuch as databases, information sys-tems and Web servers and portals.

Support for and research of new workmethods for actors in the logistics andmaritime sectors are connected withthe demand for mobile access tothese resources. In the future, technologies such as

WAP, GPRS, UMTS, and hot spots forwireless LAN will make work andcommunication with mobile terminalspart of the logistician's everyday life.To this end, eLOGMAR-M is research-ing suitable forms of use and will bedemonstrating the potential in severaldemonstrators to be created.

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The knowledge acquired is beingtransferred in different ways. On theone hand, the solutions generated arebeing integrated in the Baltic Sub-Regional Competence Center in Rigaand being made available to thepublic. Potential users can informthemselves about the IT services andmobile solutions developed. The Webserver installed there makes part ofthe solutions available over the Inter-net. They can be accessed by a normalPC as well as by mobile terminals.

On the other hand, a series of work-shops and conferences specificallygeared toward users in the maritimesector is being organized as part ofeLOGMAR-M. Cities in the Balticregion such as Riga (Latvia), Klaipeda(Lithuania), Tallinn (Estonia) and inChina such as Peking and Shanghaihave been planned as conferencevenues.

The eLOGMAR-M project is pursuingthe following objectives:

1) Study and analysis of logistic andmaritime transportation processes,mobile services and e-work as wellas basic legal conditions and regu-lations;

2) Training of specialists in maritimelogistics and quality managementsystems;

3) Implementation of an Internet-based, interactive website as thegateway to a potential network;

4) Demonstrator of an Internet-based, collaborative work environ-ment with mobile access;

5) Transfer of results in workshops,formation of expert groups andpublication of a project manualdescribing the experiences fromeLOGMAR-M.

Current information on eLOGMAR-Mcan be viewed and contact can bemade on the eLOGMAR-M websitehttp://www.elogmar-m.org.

Contact:Dr. Eberhard BlümelVirtual Development and TrainingTel. +49 (0) 391/40 90-110Fax +49 (0) 391/40 90-115eberhard.bluemel@iff.fraunhofer.de

Automated container terminals as an example of ultramodern technology in the Port of Hamburg.

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Corporate management games areparticularly well suited for trainingstudents and trainees about businessissues and how to deal with decisionmaking situations replete withconflict. On the basis of a scenario, allthe players assume their assignedroles and endeavor to complete theirspecific tasks as part of the completeprocess. What is more, the ability tothink complexly in complete relation-ships is further developed. This issupported by the players being able totake on various roles (job rotation). Bytrying out the different roles, they aretrained in taking action and makingdecisions without any real damagebeing done to a company.

The management game »DistributionsCenter for Pharmaceutical Products« isfor training in the academic major ofindustrial engineering specializing inlogistics at Otto von GuerickeUniversity Magdeburg. It is intended

to train, broaden and deepen skillsand knowledge in the organizationand management of flows of goods,information flows and businessprocesses.

The search for a sophisticated man-agement game scenario for logisticsentails finding realism and clarity onthe one hand and diverse creativefreedom and representativeness of theproblems on the other hand. Theprocesses in a distribution center wereselected because logistics is the maincompany-wide process here (seegraphic), which is built up from clearlystructured process stages, operationsand jobs, encompasses flows ofvarious types of objects and manytypical decision making situations anddemands a considerable range ofcommunication and informationflows. Two fundamental organi-zational concepts can be comparedand tested in this scenario: First, classical (and very clear but complex)document-supported organization and

then paperless, computerized proces-ses using barcode labels, transpondersand scanners.

When conceiving the design of thesecond organizational form, playersare supposed to develop the changemeasures necessary in the operationsand work out the differences and thepotentials for cost cutting. Apart frommaterial planning for customer orders,stockkeeping and warehouse manage-ment, core processes in a distributioncenter are order picking and shippingbased on delivery routes. Orderpicking can be processed in a singlestage, i.e. order-based, or in twostages, i.e. item-based. Both methodsrequire different preparation of thepicking lists and the processing opera-tions, which are likewise tested aspotential forms in the managementgame scenarios.

Logistics Management Game:»Distribution Center for Pharmaceutical Products« Is Set Up andSuccessfully Tested at Otto von Guericke University Magdeburg

Prof. Dietrich Ziems and Arnhild Gerecke

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Activities and Decisions in theManagement GameThe Distribution Center for Pharma-ceutical Products (based in Magde-burg at Universitätsplatz) caters topharmacies in the Magdeburg area.The »enterprise’s« goal is to deliver toits customers on the day ordered.

Before the management game starts,players are familiarized with the indi-vidual jobs and roles and given thetask of defining and specifying rawdata, e.g. quantity ordered, mininuminventory and reordering quantity onthe basis of past customer purchasedata.

Order Processing:After the customer order has beenreceived by order processing (bytaking an order from a pile of custom-er cards), an internal order is generat-ed by filling out a set of order formswith customer data and ordered itemdata, deliverability is checked, anorder and invoice number is assignedand the corresponding delivery zoneand time are assigned. The deliverablegoods are logically reserved in aninventory list. This is currently moni-tored for shortfalls below the mini-mum and safety stocks in order toactivate timely reordering withwarehouse management.

The completed set of production orderforms is distributed to the manager oforder picking and shipping.

Production Order Manager:Once the production order has beenreceived, the production order man-ager uses a volume calculation to setthe number of order picking contain-ers needed. This number simulta-neously corresponds to the number ofpicking lists to be issued for eachorder, which have to be put out forthe picker for the afternoon or eve-ning route according to the principleof FIFO. A copy of the productionorder is supplemented with theassigned picking list numbers andforwarded to the packer in shipping.After receiving the copy, the pickersets up a spot for customer storagewhere the picker can set the orderpicking containers belonging to theorder.

Picker:In the order picking warehouse, thepicker takes a picking list and takesthe required number of goods fromthe warehouse bays. If a storagecontainer has been emptied in theprocess, its KANBAN card is taken anddelivered to warehouse management.After working off the picking list, thepicker deletes the quantity removedfrom the physical inventory list of theorder picking warehouse and calcu-lates the quantity of new stock. Thepicker places the order picking con-tainer in the storage spot set up inshipping.

Packer:If all the order picking containersbelonging to the order have arrived atshipping, the packer conducts a cross-check. If deviations from the ordercannot be established, the items arepacked in transport boxes (packages)and released to the shipping manager.

External integration of the distribution center for pharmaceutical products.

Jobs (roles) and material and information flows in the distribution center for pharmaceuticalproducts.

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Shipping Manager:The shipping manager prepares theshipping documents (invoice, deliveryslip and receipt) and the delivery orderfor the carrier. Afterward the ship-ment is made ready in the shippingdepartment based on delivery zoneand route.

Carrier:The carrier reports to the shippingmanager at the stipulated time andtakes over the delivery order afterchecking the quantity of packages.The carrier delivers the shipment withthe accompanying documents to thecustomer and accepts acknowledge-ment of receipt, which is then handedover to the shipping manager on thenext trip to the distribution center.

Wahrehouse Manager:The warehouse manager's primary jobis to fill the storage spot signalized asempty in the order picking warehouseby using supplies from the supplywarehouse by taking a KANBAN card.The quantity stored is transferred as adebit from the supply warehouse'sinventory list and an entry in the orderpicking warehouse's physical inventorylist. If, when the customer order wasreceived and the corresponding itemswere reserved, the limit set on thereordering quantity was fallen below,supplies are ordered from the manu-facturer. Analogous to the customerorder, order forms must be completedand sent to the manufacturer.

Manufacturer:The manufacturer puts together theassortment of articles desired by thedistribution center including shippingdocuments and then gives the carrierthe delivery contract.

Incoming Goods:After receiving the goods, the workerin receiving collects the goods, storesthem in the supply warehouse andenters the quantities in the supplywarehouse inventory list. In addition,the delivered quantity of the respec-tive article is reported to order proc-essing, whereupon this updates theinventory in the logical inventory list.

Management Game AssessmentCharacteristics of logistics processperformance and quality are analyzedin the assessment. The number oforders dispatched is compared withthe number of orders delivered.Whether it was possible to keep thedelivery promise to deliver to thecustomer on the day ordered is alsochecked. The expediency of ware-house management's limit set onthe reordering quantity is criticallyreviewed. Noticeable bottlenecks inflows of goods or information arediscussed, the causes analyzed andappropriate measures taken to elimi-nate them. In the process, even thearrangement of workplaces in a roomcan be changed. As a rule, the man-agement game is repeated usingthese changed basic conditions andsettings to test and determine theeffects of the measures.

Status and OutlookSo far, the management game in itsconventional, document-based organ-izational form with one-stage orderpicking process has been playednumerous times by German andSerbian college students in groups ofeight to sixteen and also by schoolstudents. The participants' assess-ments of the motivation, the clarity,the possibilities for creative freedomand the acquisition of knowledge arevery encouraging even when at leastfour hours apiece are needed formanagement game preparation andfollow-up. To shorten the orientationin the roles and sequences of activities

in the jobs, job instructions have beendeveloped for the players to follow.Specified forms and documentssimplify the work. Errors in conven-tional data acquisition and transmis-sion and manual picking necessitateplausibility checks and the setup ofquality control loops. The initial alloca-tion of job responsibilities of differentscope to individual roles and jobsleads to bottleneck situations anddelays in the order cycle time and towaiting in downstream jobs. As a rule,the first improvement measures havebeen proposed in discussion, it beingessential to eliminate not thesymptoms but the causes.The second stage of expanding themanagement game, i.e. the extensive-ly paperless organizational form, willemploy a warehouse managementsystem and coded ID information fordocuments, containers, goods, ship-ments, etc. The installations requiredare being developed and implementedby the Fraunhofer Institute for FactoryOperation and Automation IFF at thistime

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The automotive industry is being givena key role in developing and expand-ing the structures in Eastern Europe.The automotive industry has alreadybeen investing enormous sums inEastern Europe for years. As Chairmanof the Board of the Rautenbach AG,Prof. Scheel reported on this based onhis experiences. He highlighted whatthis development means for the auto-motive suppliers in the Wernigeroderegion. First however, an overview ofthe role of the accession states astrading partners and the market situa-tion in the automotive industry.

Automotive Industry and EastwardExpansion of the EUThe German economy's foreign tradevolume more or less doubled in theperiod from 1993 to 2003. Thedynamics of the economic relation-ships between Germany and theaccession states is substantially strong-er: German foreign trade with theaccession states quadrupled in thesame period. Around eight percent ofGerman exports already went toCentral and Eastern Europe in 2003.With a foreign trade volume ofaround 115 billion euros, the EUaccession states were Germany'ssecond most important trading part-ner after France in 2003. Public

discussion addressing topics such as»job outsourcing« or »low-wagecountries« frequently overlooks theenormous importance of these coun-tries for the German economy.

Immediately after opening politically,the candidate countries gave the»automotive manufacturing« sectorhighest priority. Among other things,a rationale for this economic policystrategy came from diverse well-known institutes' forecast of consider-able volume growth in the automotivemarket. An 85 percent increase of thenumber of motor vehicles is expectedfor Eastern Europe by 2015.

In view of the market’s development,some aspects of growth deserve closerexamination.At the moment, the carmakers’ manu-facturing depth is at around 20 per-cent. This percentage will sink further.It is forecast that growing shares ofmanufacturers’ value added will beshifted to suppliers.

Opportunities and Risks through Eastward Expansion of the EU

Prof. Burghard Scheel

In his inaugural lecture, Prof. Burghard Scheel took a close look at theopportunities and risks the eastward expansion of the EU presents auto-motive suppliers. In his opinion, the opportunities for the automotive suppliers in the Harz outweigh the considerable risks.

(l. to r.):

Dean Bernhard Zimmermann,

Prof. Burghard Scheel and

Rector Armin Willingmann

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This shift of the value added is beingoffset by a concentration process:Fewer and fewer automotive suppliersare responsible for a growing share ofthe value added. The necessity of aglobal presence – accompanied byrising demand for capital and humanresources – is forcing the making ofstrategic decisions and the setting ofcourses for the future. On the basis oftradition (e.g. SKODA, Czech Repub-lic) and systematic use of locationalfactors such as low labor costs, taxexempt investments and low incometax, Eastern Europe has succeeded inbuilding up a considerable valueadded volume – and the trend iscontinuing.

Car production in the accession stateswill increase from 1.5 million units ayear today to around 4 million units in2007. All the investments for this arein the implementation phase. Thus the»EU of Eastern Europe« will movecloser to the world's »big five«manufacturing countries.

While the production volume and thevalue added in the candidate coun-tries is growing dynamically, assess-ments of the development of salesfigures are rather cautious and re-served. At this time, the developmentof the GDP or buying power suggestthey will not catch up to Germanyquickly.

On Site Competition: Opportunities for SuppliersRising production capacities at lowerbuying power in the accession coun-tries will lead to a considerable shareof the vehicles produced there beingexported: This will primarily hit thesaturated West European market. The»harbingers« of all manufacturers'cost cutting measures indicate howseriously improvement of competiti-veness is needed. Particular impor-

tance is attached to labor and produc-tion costs. The accession countries'labor cost advantage will not beadjusted to the Western Europeanlevel in the short term. That alsomeans that production costs will alsoinfluence locational decisions in thelong term and jobs will be relocatedas a consequence.

Given the initial situation, the risksactually seem to outweigh the oppor-tunities. However the decisive point isthat we are dealing not only withquantitative but also with qualitativegrowth. This is where the opportuni-ties are for German automotive sup-pliers. Strong growth for automotivesuppliers can be expected in thesector of autobody structure and elec-trical engineering/electronics in parti-cular. However, suppliers are facing achallenge of organizing global valueadded networks in which only highlyqualified research and development,administration and production aresettled in Europe, while manufactu-ring and assembly are frequently relo-cated. Setting up such a global valueadding network constitutes a greatchallenge particularly for SMEs. Newforms of cooperation make a threepercent increase of profitability – i.e.the EBIT margin – possible forsuppliers as well as for carmakers.Developing this potential will respondto the cost pressure burdening theautomotive suppliers in Germany.

For supplier business in the regionaround Wernigerode, investmentsagainst the background of a quantita-tively and qualitatively growing auto-motive market absolutely make sense.Since there is a direct relationshipbetween company size and foreignactivity, company size represents aweak point for SMEs in the region.They are too small to position them-selves globally and distribute theirvalue adding chains over the conti-nents. Cooperations and strategicpartnerships become all the moreimportant here.

According to an IKB study, SMEs donot display any marked readiness foradvanced collaboration however.

SMEs in particular should take greateradvantage of the opportunities pro-vided by closer collaboration. Theeastward expansion of the EU – rightin our front yard so to speak – is especially suited for this. The networksalready existing on corporate andacademic levels are an excellent foun-dation and should be expanded andconsolidated in the direction ofEastern Europe.

With a reference to the high invest-ment capacity in the automotive,chemical and mechanical engineeringsectors, Prof. Scheel underscored hisassessment that the opportunitiesfrom eastward expansion of the EUare clearly greater than the risks andwill bring the Wernigerode regionadditional benefits. Prof. Scheel identi-fied the most important prerequisitefor this with a quote from BASF bossHambrecht: »…if we want it then.«

About the PersonProf. Burghard Scheel was chairmanof the board at Rautenbach AG untilDesember 31, 2004, is chairman ofthe Fraunhofer IFF Board of Trusteesand has been honorary professor atthe Harz University of AppliedSciences since summer semester 2004.After graduating with a degree inindustrial engineering, he worked forthe BASF Group in various positions,worked as a management consultantand managed the privatization de-partment in the Treuhand Agency inMagdeburg.

31

At the beginning of this century, manyshareholders complained about fallingstock prices or experienced a nastyshock in the new market. Rational AGstockholders did not. The price ofRational stock rose by around 80percent in the last five years.

There is a simple sounding reason forthis yet its concrete implementation inthe entire company is anything buttrivial: Consistent orientation towardprocesses and customer orders.Production and delivery play majorroles.

Just like many other companies too,the Rational AG had evolved by themid 1990s into a extremely function-ally oriented company with nearly 100percent production to stock. Thatinevitably led to large inventories and

long delivery times. The companymanaged to radically reengineer itsproduction system to be orientedtoward processes and based on cus-tomer orders with only a few inter-faces left. Three important elementsthat deserve mention are integratedKanban control, RATIONAL one-piece-flow and segmenting. Outcomes ofthese radical modifications have beensmaller stocks, adherence to custom-ers’ desired schedules, constantlyrising double digit productivity, signifi-cantly improved quality and dramati-cally shorter lead times. As a »by-product« Rational AG was awarded alarge number of prizes, among others,the 2003 GEO Award (GlobalExcellence in Operations) in the»Factory of the Year« competition.

During this reengineering process, theFraunhofer IFF and the Rational AGcollaborated to create the manage-ment game ULF (logistics-basedcompany management). ULF devel-oper, Dr. Rico Wojanowski, workedclosely together with Mr. Wassmus, incharge of processes at Rational AG, inorder to develop a management gameas close to practice as possible. In thestarting situation, the managementgame ULF reproduces in simplifiedform the extremely functionally orient-ed structure at Rational AG with all itsdisadvantages in the mid 1990s. Inthe management game, players canthen try in several rounds of play toreengineer the modeled company intoa successful order-oriented company.The management game was and isbeing used to prepare Rationalemployees for restructuring processesand to increase acceptance ofcompany-wide reengineering. Thecomplete restructuring process can bereproduced in the management game.

Management GamesRational AG Employees Use the ManagementGame ULF to Get into Shape for the Future

Tobias Reggelin and Kay Matzner

32

At a two-day seminar conducted byFraunhofer IFF research associatesKay Matzner and Tobias Reggelin inFebruary 2005, members of theRational AG management teamwere able to experience for them-selves in the management gameULF what it means to work in anextremely functionally orientedcompany. The players were requiredto come up with solutions to leadthe company depicted in the man-agement game back to the path tosuccess. At the end of the seminar,the employees had succeeded inengineering a company structurecompletely oriented toward proces-ses and orders. The experiencescommunicated are an importantfoundation for the employees' fur-ther positive development and thusultimately the positive developmentof Rational AG's in the future.

The Fraunhofer IFF and Rational AGintend to collaborate on othermanagement games for training atthe Rational AG.

Contact:Tobias ReggelinChair of Logistic SystemsTel. +49 (0) 391/40 90-259Fax +49 (0) 391/40 90-473tobias.reggelin@iff.fraunhofer.de

When you look back at your educa-tion from the field, where do yousee a need for improvement inacademia?

In part, there are some quite simplethings that are immensely importantin the company, which are notadequately taught at the universityhowever. I'm thinking for exampleabout management using perfor-mance indicators. Whoever is able toread these correctly understands acompany and sees all the significantstrengths and weak points. Somethinglike that absolutely can be taught at auniversity. To do that, universal andclear case studies are needed in whichstudents can immerse themselves bitby bit and which help them under-stand corporate reality later.

Dr. Wojanowski, you earned yourdoctorate from the Chair of LogisticSystems in Magdeburg. As winnerof the German Logistics Prize whathave you learned that’s new?

Gildemeister is a high speed company.In order to be able to survive on thestrongly contested machine tool mar-ket, the company has developed apronounced professionalism, reactingquickly to market requirements andacting consistently. The resource and time managementthroughout all management levelsnecessary to do this is something thatyou can only learn in the respectivemilieu of a world market leader. Theproject experience I acquired at theFraunhofer IFF prepared me well forthis and made my entry substantiallyeasier

An Ideal Entry into the FieldDr. Rico Wojanowski works at Gildemeister where he is responsible for cen-tralized process optimization in the management of production and logis-tics. The industrial engineer with a degree in mechanical engineering anda Diplom degree in business studies earned his doctorate in engineering in2002. From 1999 to 2004, Wojanowski was a project manager at the Fraun-hofer IFF. In 2002 to 2003 he completed a postdoctoral degree at McGillUniversity in Montreal.

33

And where did your education prepare you particularly well foryour present job?

For me as an industrial engineer, veryclearly for its diversity. Precisely at anequipment manufacturer like Gilde-meister, a certain understanding oftechnical aspects is extremely helpful.Yet the business issues alreadybrought up naturally predominate indaily work. Here you don't alwayshave to immediately know everythingin detail but a broad repertory of prin-ciples, methods and tools is extremelyhelpful. I'm able to fall back on abroad base here. Very important inparticular are my experiences from myfirst years working at the FraunhoferIFF. Independently structuring andworking on projects, being integratedin a project team and working orient-ed toward the goal and time are skillsyou virtually have to learn as youwork from the bottom up. And herethe Fraunhofer IFF was the ideal entryand its positive corporate culture wasextremely formative.

How is Gildemeister involved intraining future employees?

Above all by building confidence andmaking demands. It's rather amazinghow quickly future employees at Gilde-meister are allowed to and are sup-posed to assume responsibility. I myselfam working on a young team that isconstantly being given new projectsand thus is continuously being challen-ged and cultivated.Our production facilities are alsoconstantly looking for students who getto know the company and its divisionsthrough a Diplom thesis related to prac-tical work or an internship. In this way,future employees can distinguish them-selves and gather their first experiences.

In 2002 Gildemeister won theGerman Logistics Prize and theEuropean Award for LogisticsExcellence. Is that a reason to relax?

No, because customers aren't goingto buy our machinery just because wewon a logistics prize. Successful logis-tics principles are naturally the onesthe competition quickly copies. A lookat our development clearly showsthat, in the meantime, we are the lastGerman machine tool manufactureramong the top 5. Most notably theChinese are catching up with breath-taking speed. In Germany, we canonly make up for that with commit-ment and fitness, every day to beprecise.Nevertheless we naturally remain anopen company that proudly showsoff its plants. The advanced manage-ment principles you can see there arealready standard for us and thussecure our edge. We are constantlyworking on continuously improvingour processes, even without any prize.

Where do you personally see thegreatest challenges a company likeGildemeister has to master in thefield of logistics?

Market challenges induced us tochange from production machinery totechnology machinery. In short, thatmeans increasingly fewer products offthe shelf and increasingly more com-plex and more customized solutionsinstead. Lot size 1 is standard. Never-theless we have an assembly line onwhich four machines can be assem-bled in a mix of models. At the sametime, Gildemeister is also the leader ininnovation. Every year, 15 to 20 newmachines in part with revolutionarynew technology are started up in theconcern. The start up curve is verysteep. That demands good standardstart up management. It is essentialnot only to master technical challeng-es but also to coordinate the variousdivisions' numerous interfaces. Despiteall our experience, every start upcauses turbulences that have to bequickly brought under control.

How does Gildemeister prepare itself for these future challenges?

Through integration and coordination.Gildemeister strategically orients itselftoward the market requirements. Inthe process, every plant naturally hasits strengths and weaknesses too. It isessential to foster or eliminate these.To this end, a capacity network hasbeen created, which does exactly thisjob.

At the same time, processes are beingstandardized and worked on through-out the group to prevent waste. Everylogistician is familiar with the effec-tiveness of methods such as Kaizenand lean production. These were»modern« in the 1990s. Yet, preciselytoday, they have to be continuedconsistently and not be allowed to falloff or be pursued as an end in itself.

What still personally ties you to theFraunhofer IFF?

Apart from plenty of experience I useand apply every day, many goodmemories and personal friendshipstoo. Since I already had insight intomany projects during my time at theFraunhofer IFF, I know the rightcontacts whenever relevant problemscrop up at Gildemeister. Thus at thistime we are jointly considering how avirtual lathe or milling machine can be used to canvass customers. Atpresent, there are still too manyexpensive machines in our show-rooms, which could perhaps soon bereplaced by a virtual twin.

34

Secured Chains of Goods

Mobile Logistic Asset Identification,Localization, Monitoring andControl

GPS, GSM or Loran-C are used tolocalize vehicles, transport units orcontainers. RFID technology identifiestheir contents and sensor systems canmeasure current data such as temper-ature, pressure or vibration. Radiomodules transmit the newly collectedinformation to a control station.The combination of technologiesmakes time and location-dependentcontrolling of logistics processes possi-ble inside and outside buildings andthus makes it possible to quickly actand react in all stages of a logisticschain.

Value Adding Services forApplications Critical for Security – Ongoing tracking and tracing of

valuable goods and transport units

Ongoing Inventory – Running inventory of defined

warehouse zones

Secured Transport of Goods – Online monitoring of transship-

ment processes

»IFF Smart Box«

Pedestrian Flow Control

Pedestrian Flow and VIP Identifica-tion, Localization and Information

The combination of wireless LAN,active transponder systems and videosensors makes it possible to localizepersons inside and outside buildings,at trade fairs or on the premises.

Thus it is possible to record the move-ments of individual persons andpedestrian flow properties such asdensity, dynamic and distribution.

Security Management– Monitoring of public areas such as

airports, train stations, stadiumsand recreational centers

Event Management– Monitoring and control of pedes-

trian flows at large-scale eventssuch as sporting events, trade fairsand conventions

Pedestrian Flow

Material Flow Control

Asset Identification and Control inMaterial Handling Systems

RFID is employed to identify and local-ize logistic assets within material flowsystems. If necessary, VR technologiescan be used to visualize assets on a 2-D/3-D logistic control panel.

Mapping the material flow systemwith all relevant processes and status-es allows analysis of the system inreal-time and thus makes it possible tocontrol material flows based on theirstatus.

Smart Material Logistics– Material handling systems for

automotive and aircraft industries,plant engineering, logistics centersand all manufacturing entrprises

Container Management– Complete monitoring and control

of complex material handlingsystems

Material Handling System

35

Life Cycle Management

Dynamic Condition Documentationon Technical Systems

Components, assemblies or enginesare identified and authenticated bymeans of an electronic nameplatebased on RFID. Additional, currentinformation is stored directly on theasset on its RFID chip.

Maintenance and service work can becontinuously recorded directly on theasset for documentation and trace-ability. The integration of local sensorsystems and the use of mobile scan-ners makes rapid access to conditioninformation possible directly on siteon the asset.

Dynamic History File– Up to date documentation of

equipment information fromservicing, maintenance, reconfig-uration or upgrading of equipmenton the asset itself

Equipment Management– Overview of condition, features

and location of complex and spa-tially ramified asset structures

Maintenance Management– Active management, monitoring

and control of maintenance jobsby automated communicationbetween asset and control station

Memory Motor

Mobile Lab

Mobile Measuring Station forOn Site Use

Along with its demonstrators, theLogMotionLab has a mobile test envi-ronment available, which can be usedat clients’ facilities in a real environ-ment. The objective is to analyzelogistics processes and identify, local-ize and control logistic assets en routeor on site.

Mobile Control Station– Monitoring and control of

RFID aided logistics processeswithout on site connection

Mobile Measuring Station– Recording and analysis of logistic

processes in the field

Mobile Test Environment– Testing of prototypical solutions in

real operational environments

Car PC System

RFID Certification

Test Environment for Preparing forthe Certification of RFID AidedLogistics Processes

LogMotionLab has a test environmentto test the reliability of RFID solutionsunder different physical and organiza-tional conditions. Standardized andreproducible test conditions allowqualified statements.

The tests serve as the basis for futurecertification in collaboration withaccredited »Core GremiumCertification« bodies of the LICONconsortium.

Test Platform for Courier ExpressShipping Services– Reliability tests for RFID solutions

as a function of a package’spackaging, content, position andtransport environment

Test Platform for Industrial Logistics– Reliability tests for RFID solutions

for internal and external companylogistics as a function of basicphysical and organizational condi-tions and asset condition

RFID Test Rig

S H A R P M I N D S

36 Sharp Minds

Fraunhofer-Gesellschaft President Prof.Hans-Jörg Bullinger presented winner Anna-Kristina Wassilew her prize at themeeting of institute directors on March 17, 2005.

After living in France for several years, theMagdeburg native returned to Germany in1996. She studied Communications andMedia Sciences (specializing in PublicRelations), German Studies and French atthe University of Leipzig. At the same timeshe worked at media firms, advertisingagencies and press offices. After gradua-tion, she took over the management ofmedia and public relations at a musicalcompany in Magdeburg in 2002.

Since February 2004 Ms. Wassilew hasbeen shaping media and public relations atthe Fraunhofer IFF – with great success asanyone can see.

In May 2004, Tobias Reggelin, SandyBoeker and René Bärecke took thirdplace at the largest German Internetmanagement game. In December2003, around 600 teams had com-peted against one another in theInternet to make the fictitioussporting equipment manufacturerLeopoldt & Schätzle market leader.The team of Tobias Reggelin, in themeantime faculty member of Prof.Michael Schenk’s chain of LogisticSystems, and former fellow studentsSandy Boeker and René Bäreckepresented a convincing concept andreached the finals. The Magdeburgteam ultimately took third placeamong the last eight finalists.

The hitherto largest German Internetmanagement game was initiated byDetecon International in cooperationwith the German Federal Ministry ofEconomics and Labor.

Third Place for Magdeburg at the Mobile Award

Anna-Kristina Wassilew was awarded the Fraunhofer-Gesellschaft’s PR prize for her »Fantasy Machine Competition« campaign.

Mobile Award third place winners: Tobias Reggelin, Sandy Boeker and René Bärecke (l. to r.).

Fraunhofer-Gesellschaft PR Prize for the Fraunhofer IFF

Sharp Minds 37

Herbert Siegert has been Marketingand Public Relations Manager at theFraunhofer IFF since November 2004.Siegert studied Physical Education,Sociology and Psychology and workedas a journalist for various newspapers.After additionally studying media andpublic relations, he organized diversePR projects. Before moving to theFraunhofer IFF in Magdeburg, heworked for the Messe Schweiz inBasel for two years where he oversawPR work for an international tradeshow.

New Marketing and Public Relations Manager

Holger Seidel has headed the Divisionof Logistics Systems and Networks atthe Fraunhofer IFF since January 2005.In his studies, Seidel specialized infactory planning and logistics. As anengineer for production organization,he acquired his first professionalexperience at a manufacturer of heavymachinery in Magdeburg. As assistantlecturer in the Department of FactoryPlanning and Logistics he helped pavethe way for the founding of theFraunhofer IFF in 1991. Since 1992 hehas managed research and industryprojects at the Fraunhofer IFF, pre-dominantly in the field of factoryplanning, logistics, SCM and reorg-anization.In 1997 he became Head of theDepartment of Factory Planning andLogistics and has been Deputy DivisionDirector since 2001.

Dr. Klaus Richter moved to the posi-tion of Deputy Division Director inJanuary 2005. Dr. Richter studiedmechanical engineering, specializingin materials handling technology and

earned his doctorate in 1985 from theSchool of Material Handling Systemsat the Technische Hochschule Magde-burg. Afterward, he worked as anengineer for computer aided planningand design of material flow systems ina company for loading and transportequipment in Leipzig. From 1991 to1999 Richter researched and taught at

New Management for the Division of Logistics

the University in Magdeburg in thefields of CAD industry software andmaterial handling engineering andsystems. Richter has headed theDepartment of Material HandlingEngineering and Systems at theFraunhofer IFF since 2000.

Holger Seidel and Dr. Klaus Richter are the management team behind the Division of Logistcs.

Herbert Siegert, Marketing and PublicRelations Manager at the Fraunhofer IFF.

S H A R P M I N D S

38 Sharp Minds

Dr. Elke Glistau has been a memberof the faculty of the Institute forMaterials Handling and ConstructionMachinery, Steelwork and Logistics atOtto von Guericke University Magde-burg since 2000. Her areas of special-ization encompass production logis-tics, logistics process analysis, logisticssystem planning and informationlogistics. She studied industrial engi-neering and worked afterward as anassociate lecturer at the TechnischeHochschule »Otto von Guericke«in Magdeburg and in the companyorganization of the MagdeburgArmaturenwerk. In 1988 she simulta-neously earned her doctorate inengineering and her title as universitylecturer (facultas docenti). From 1988to 2000 she was assistant professorat the School of Ergonomics, FactoryAutomation and Factory Operation atOtto von Guericke University Magde-burg. From 1995 to 2000 she wasalso Director of the Division ofCompany Organization at theFraunhofer IFF in Magdeburg.

She is intensively involved in devel-oping the majors of Logistics IndustrialEngineering specizlizing (WLO) andCultural Sciences, Knowledge Ma-nagement and Logistics (KWL – Cul-

tural Engineering) and developingpractical concepts. At her initiative, forexample, new contents were introdu-ced to the curriculum in the disciplineof »Logistics Networks«.

Innovative Teaching

Prof. Siegfried Augustin, Dr. Dietmar Bufka, Dr. Peter Hochrainer and Prof. Michael Schenk (l. to r.)celebrating double doctoral degrees at the Otto von Guericke memorial in Magdeburg.

Double Doctorates

On September 30, 2004 the School ofMechanical Engineering awarded twodoctoral candidates their degrees. Dr.Dietmar Bufka and Dr. PeterHochrainer only have praise for theschool and the Fraunhofer IFF’s out-standing advising and their excellent,efficient and pragmatic collaboration.The Fraunhofer IFF, to which both stillmaintain regular contact, providedthem good prospects for the future.

Dr. Dietmar Bufka studied mechanicalengineering at the University ofStuttgart. During and after his studies,he acquired his first professional exper-ience in the automotive industry. Since1998 he has been a manager at A.T.Kearney GmbH in Stuttgart, respons-ible for managing complex and inter-national consulting projects in theautomotive industry. Parallel to this

Dr. Elke Glistau teaching a course.

The sensitivity analysis from Vester isbeing employed to control complexsystems, which has already provenitself in the education of culturalengineers, and the newly acguiredsoftware 4flow vista is being used tomodel supply chains.

In cooperation with the universities inMiskolc (Hungary) and Santa Clara(Cuba) a multilingual textbook isbeing compiled on the use of qualitymanagement methods in logistics. Itshould appear in 2005. One concernis adapting and practically applyingthe methods of quality managementin logistics. This innovative field isan integral part of logistics processanalysis for basic and advancededucation.

work and his doctoral studies at Ottovon Guericke University Magdeburg,he worked for three years as an asso-ciate lecturer at the FachhochschuleKonstanz. In 2004 Bufka earned hisdoctorate under Prof. Michael Schenkfrom the Chair of Logistic Systems. Hisdissertation was on »Typologization ofOrder to Delivery Processes in theAutomotive Industry«. Bufka summar-izes: »I would especially like to pointout the always very open collaborationwith all associates of the Franhofer IFF.On the one hand, they were alwaysavailable to discuss thematic issueswith me at any time. On the otherhand, the staff in the institute’s mainoffice always provided support whenthere were organizational questions soI was able to give my dissertation mycomplete concentration.« His time atthe Fraunhofer IFF gave Bufka insightinto current and future issues in the

field of logistics and allowed him toestablish new contacts to industrialenterprises.

Dr. Peter Hochrainer studied materialssciences at Montan University Leobenin Austria. He acquired his first profes-sional experience at Audi AG andSiemens AG. Since 2001 he has beena project manager for Siemens in-house consulting in Munich respon-sible for complex and internationalconsulting projects in different fieldsof business of the Siemens AG. Whileworking, he earned his doctorateunder Prof. Michael Schenk from theChair of Logistic Systems. His disserta-tion was on »Project Controlling to Im-prove the Implementation Quality ofIndustry Projects«. In 2004 he conclud-ed his doctoral studies and defendedhis disseration on the same day asBufka. The result was a joint doctoral

degree ceremony. Hochrainer’s conclu-sion: »I would especially like to pointout Professor Schenk and Augustin’sexcellent advising of my dissertation bycritically discussing the content of mywork, making constructive suggestionson elaborating thematic foci and providing new food for thought«. Inaddition, he stressed the outstandingorganizational and scheduling supportfrom the institute’s main office. Hewas excellently integrated in thedoings at the Fraunhofer IFF and thuswas able to establish and deepencontacts to industry and the universityin Magdeburg.

IFFOCUS 1/2005

This brochure appears biannually and is

available to clients, partners, employees,

media and friends at no cost.

ISBN 3-8167-6850-4

PublisherFraunhofer Institute for Factory Operation

and Automation IFF

Prof. Dr.-Ing. habil. Michael Schenk

Director

Sandtorstr. 22

39106 Magdeburg

Germany

Tel.: +49 391/40 90-0

Fax: +49 391/40 90-596

info@iff.fraunhofer.de

www.iff.fraunhofer.de

EditorHerbert Siegert, Public Relations and

Marketing, Fraunhofer IFF

Translator Krister Johnson, Fraunhofer IFF

LayoutBettina Rohrschneider, Fraunhofer IFF

Picture CreditsFraunhofer-Gesellschaft, Viktoria Kühne,

Fraunhofer IFF, with friendly permission of

project partners

Cover: MEV-Verlag

PrintingDruckerei Schlüter GmbH & Co. KG

We thank the research associates of the

Fraunhofer IFF and our project partners for

their release of their publications.

© Fraunhofer IFF, June 2005

I M P R I N T

40 Gallery

G A L L E R Y

A high bay warehouse in the printing industry.

RFID technology is perfect for warehouse

organization.

Gallery 41

42 Gallery

G A L L E R Y

Gallery 43

RFID labels not only look good, they also make logistics

processes more efficient and more transparent.

44 Gallery

G A L L E R Y

Gallery 45

The IFF Smart Box is chock

full of intelligent technology:

It knows what it holds, it

communicates with a control

station, it can be located by

GPS and it only opens for the

right access authorization.

46 Outlook

O U T L O O K

June 22 - 24, 2005 8th IFF Science Days 2005The center of attention at the 8th IFFScience Days was an internationalconference entitled »Virtual Realityand Augmented Reality in Product LifeCycle Management and the DigitalFactory«. The 8th IFF Science Daysincluded additional events aroundother fields of Fraunhofer IFF research.

June 22, 2005Wood LogisticsThis workshop addressed actorsand service providers’ demands onthe utilization of spatial data in theforestry and wood processing indus-tries and presented results fromcurrent research on and developmentof the optimization of the logisticchain in the forestry and woodprocessing industries.

June 23, 2005 RFID and Telematics in LogisticsThis workshop addressed the opti-mization of the security, usability,aceptance and comfort of a logistic-ian’s working environment. Expertsdiscussed methods for measuring alogistician’s motion-oriented opera-tions and possibilities for being able toutilize data acquired with the supportof RFID and telematics.

For current information and theprogram visit: www.iff.fraunhofer.de.

November 24 - 25, 2005 11th Magdeburg LogisticsSymposium:Intelligent Logistics Processes:Concepts, Solutions, ExperiencesThe 11th Magdeburg LogisticsSymposium is geared toward logisti-cians in research and the field whodeal with the problems of integratingintelligent information and communi-cations technologies in logistics proc-esses from a technical and economicperspective and are interested inexchanging ideas about developmenttrends, concepts, solutions and experi-ences during their implementation.

The following keynote lectures areplanned for the opening of thesymposium:

– Intelligent Joint Production and ItsChallenges for Logistics: TheExample of the Airbus A 380

– Identification: Toll and Road Pricing– Localization in the Centimeter

Range: The Galileo System

For current information on the symposium visit the website:www.magdeburger-logistiktagung.de

Other Events

September 14 - 21, 2005EMO - International Machine ToolTrade Fair, Hannover

October 10 - 11, 2005Intertech 2005 - The InternationalSME Business and Technology Partnering Event, Magdeburg

October 11 - 13, 20057th Magdeburg Mechanical Engineering Days, Magdeburg

October 11 - 15, 2005CeMAT 2005 - The World’s PremiereShowplace for Intralogistics, Hannover

October 13 - 14, 20055th MAHREG Innovation Forum,Magdeburg

October 18 - 20, 2005Fraunhofer Festival of Research, Magdeburg

October 19 - 21, 200522th German Logistics Congress ofthe German Logistics AssociationBVL,Berlin

October 26 - November 30, 2005Guest Lecture Series Virtual Reality: Humans and Machines in Interactive Dialog,Fraunhofer IFF Magdeburg

November 8 - 9, 20056th Professional Conference onFactory Planning,Ludwigsburg

November 8 - 9, 200510th IIR Production Congress – SYMPRO,Hamburg

The Fraunhofer IFF and »One Stone« thank

the Stadtsparkasse Magdeburg’s youth foundation

for their friendly support of the Jugend-Akademie.

Cargo hold of an Airbus Beluga.

The Fraunhofer IFF outfitted the loading

equipment with transponders.