RFID current applications and potential economic · PDF fileRFID current applications and...

OECD ICCP Foresight Forum on RFID Applications and Public Policy Considerations

ibm.com/industries/wireless/

RFID current applications and potential economic benefits

Naji NajjarDirector, Wireless Broadband & Sensing SolutionsIBM South West Europe

Wireless Broadband & Sensing Solutions

2 ibm.com/industries/wireless/Wireless Broadband & Sensing Solutions

OECD Forum on RFID Applications and Public Policy Considerations

IBM is involved in many aspects of RFID

Many patents and years of research in RFID technology

RFID used at Fishkill semiconductor & Dublin manufacturing

plant, piloted in Montpellier plant and others..

Member of EPCglobalTM and facilitator of “knowledge transfer”

process

New WebSphere RFID middleware platform to support device

and server solutions based on open & reliable architecture

Sensor and Actuator Solutions emerging business unit in place

- leading RFID initiatives for IBM

Consulting partner for leading industry players



Sensors are devices that measure real world conditions – like temperature, flow or position.

Actuators are devices that take actions in the real world – like valves, thermostats, or robots.

Sensors like RFID link the “field” – or physical world -- with the enterprise/organization and its applications

Securely connecting the physical environment to the IT technology infrastructure to help organizations aggregate, analyze and act upon data and dynamically adjust operations

in response to changes in their business



RFID enables on demand business/organization:A convergence point between new business /operating models & technologies

RFID creates the ability to identify, aggregate and track information about

objects through the value chain, from the

manufacturer to the consumer

RFID makes the supply chain visible, efficient, and

collaborative.

…this provides businesses the ability to develop integrated end-to-end processes across their company and with key partners, suppliers & customers…positioning them to respond with speed to customer demand, market opportunity or external threats



RFID can be applied to five market spaces

Apply RFID technologies to the in process manufacturing processes to enable effective inventory tracking and management, product line efficiencies, and JIT manufacturing advantages.

Includes: Automation of assembly, Component production, Production of vehicles.

Work In Process

Manufacturing(WIP)

Companies have physical assets (plants, truck fleets, PCs etc) that are needed to make, and to deliver products and services to customers - knowing where an item/ vehicle is on route, and also tracking of depreciating good – tools, HW, equipment, leased items. Includes: Equipment tracking, Fleet management, Vehicle maintenance management, Track & Trace, Military and defense tracking.

Asset Management

Monitoring peoples movements, personal security, convenience and Point of sale applications. Includes: Personal identification and authentication, personal security and safety, Patient ID and tracking, Maintaining shelf stock, Innovative payments, Return management, Purchase maintenance..

Consumer Applications

Monitor the movement and use of valuable equipment and personal resources.

Includes: Access control and tracking, Animal tracking, Automobile ignition security, Baggage handling systems, Inventory control, Parking lot security and access, Shoplifting prevention, electronic article surveillance, Vehicle security, Sensor/ sensing applications.

Leverage RFID technologies to transform supply chains by providing end-to-end visibility of goods and enabling improved inventory management.

Includes: Supply Chain Mgmt using RFID for Warehousing, pallet/goods tracking, Inventory Tracking, Track & Trace, Sensor/ sensing applications. Also covers RFID impact of counterfeiting and fraud.

Security & Access Control

Supply ChainManagement



Sernam selects IBM as its RFID partner to develop, test, demonstrate &deploy an industrial RFID solution to support Sernam needs in the trace & track of its parcels along the full supply chain. Solution implemented successfully and currently used for Sernam night delivery operations

Challenge

Solution

Benefits

Innovation seen as critical to the success of Sernam. Need a solution allowing contact-less tracking of parcels & pallets at different points of the logistics chain

Optimization in the transportation activities & assetsReduction in costs: loss of parcels, conflicts, labourEnhanced customer services

Parcels Transportation in France: Sernam



Moraitis Fresh, a family owned company with the objective of providing customers with the very best in quality service, is now Australia's leading fresh produce company with a presence in all major growing districts & retail markets throughout Australia

Fresh Produce Tracking in Australia: Moraitis Fresh

Benefits• Improved ability to track volumes and types of

produce, enabling better supply forecasting to retailers

• Increased throughput, resulting in improved volumes or decreased packing times

Business Challenge

To stay ahead of its competition, Moraitis needed to introduce operational efficiencies, reduce operational overhead and scale its business in a sustainable manner.

IBM designed and implemented an application using RFID technology to track produce throughout the entire production process and enabling up to nine personnel to pack produce simultaneously.



RFID tagged containers

Silicium wafers moved automatically from one tool to the other are carried in RFID-tagged containers.

RFID tag is read at each step of manufacturing process to track and validate work-in-progress. Full integration with back-office

Manufacturing Work-In Process in USA: IBM Fishkill Plant

IBM has been using RFID technology in production sinceJune 2002 as a part of the $2.5B fully automated 300 mm chip fabrication system in Fishkill.



Manufacturing Logistics : Philips Semiconductors

Philips Semiconductors, headquartered in , The Netherlands, is one of the world's top semiconductor suppliers with the goal to be the leading provider of semiconductor-based solutions for connected consumer and communications applications.

Business Challenge

Philips with IBM, as its solutions partner, wanted to demonstrate how RFID can be swiftly integrated with legacy systems and operational practices to enhance productivity and efficiency.

The Philips Asian RFID project covers the tagging and tracing of wafer cases and carton packages for flows of goods between its manufacturing facility in Kaoshiung, Taiwan and its Asia Pacific distribution center in Hong Kong.

Benefits• increased inventory turns,• improved stacked lead time• enhanced warehouse efficiency &

delivery reliability• improved customer service



Medical Waste Tracking in Japan: Kureha Kankyo

Benefits• Improved tracking of medical waste• Prevention of illegal waste disposal• Greater public safety and security

Kureha Environmental Engineering Co, a leading waste management company in Japan, will begin verification tests on traceability of medical waste using RFID tags.

Business ChallengeKureha wants to prevent illegal waste disposal by creating a traceability system for medical waste with a number of different hospitals and transportation companies in Japan.

Containers will be equipped with RFID tags, and signal-reading antennas will be installed at IBM’s RFID Solution Centre to investigate signal sensitivity and read-out precision parameters, enabling the evaluation of issues, such as optimum RFID tag mounting methods and an analysis of the influence of obstacles.



Challenge

Solution

Benefits

Security & Access Control : Finnair

The Solution is based on an RFID tag which holds the employees personal identification number. The RFID reader is attached to an Intel based kiosk with a touch screen. The employees operate the system by touching the buttons on the screen which eliminates the need for typing in any information to check in/out. The RFID kiosk is communicating with an RFID server using WebServices. The RFID server is running at the top of WebSphere Application server providing the scalability and availability required by the solution. The RFID server is integrated with the existing RTC system where actual work optimization is performed.

Fixed location based (RFID) check in/out operationBecause the identification number is stored on the RFID tag employees can check in/out from the

duty by just waving the tag near to the RFID reader without remembering and typing in the identification number.Fast and easy to use.Using the Kiosk the first Assignment can be delivered at the time the employee checks inThe solution should also provide efficient information channel to employees checking in to the

duty. This allows employees to get the latest information of the situation on the airport right away when they sign in.

Finnair was actively seeking a solution to help employees meet the challenge of increased passenger volumes on their day to day operations.Finnair is currently using phone based check in/out solution where employees need to call a certain number to check in/out from the duty. With this solution employees need to type in the personal identification number each time they arrive or leave from the work place. The existing solution has had some technical challenges which has frustrated employees.



Business

• Business Model / Business Case• Aligned Processes• Standards• Certificate Authority

Logical

• Data Aggregation• Systems Communication• Data Management

Physical

• Container Security• Container Identification• Data Capture

Security & supply chain optimization: Joint IBM/Maersk initiative to develop a solution to provide real time visibility on containers and goods transported

Law/rule compliance challenges(= Security & Liability)

Supply Chain Performance Challenges(= Efficiency)

DistributionCentre

Port Authority “A”Custom

Port Authority “B”CustomOcean CarrierManufacturer

Distributor FreightForwarder

Implications to the stakeholders

Actual solutions on the market are addressing some of these implications but none of them are covering the entire supply chain



Patient Flow Management in Emergency Unit ½Joint Prototype IBM- Nice CHU

Patient path Optimization

TraceabilityPresented during the 34th Congress of the International Hospital FederationNice 20-22 September 2005.



RFID TechnologyLinking 2 worlds:

physical objects IT world

Location & IdentificationPatients

IT equipment

GoalsOptimize patient path

Traceability

chipantenna

RFID Technology

RFID for Patient Flow Management in Emergency Unit 2/2



RFID: Economic benefits & ROI opportunityReal reduction in errors via automation – reduction in mis-shipments, lost inventory, and errors in redundant data reads

Real gains in productivity by better managing the use of skilled resources through automation

Industry recognized qualitative impacts which returns improved customer service, lessened warrantee handling,

Visibility on supply chain vs estimates

Driving regulatory impacts through compliance activities to meet governmental regulations: safety, security, environment,..

Fraud detectionAutomation drives operational efficiencies that return economic benefits



Pilot, Implementation,& Management

TechnicalSolutionDesign

Integration Platform

Business Strategy

Communication& Connectivity

RFID Enablement

Business Process &

Applications

Successful RFID initiatives require focus in three key areas:

Business Case

Process Transformation

Technology andInfrastructure



Key Messages

IBM believes RFID is here to stay. It should be viewed as part of a broader strategy…momentum is building around the globe

RFID can enhance productivity, safety and enterprise/economy competitive positions...governments & public organizations have a role to play & stimulate

To maximize benefits, RFID technology alone is not enough. ……processes would require changes

Open Standards, open & reliable solutions are key… how can we imagine, otherwise, linking the diversity of the physical world with enterprises/organizations & their IT systems?

Antenna

Tag

IntermecUAP-2100Reader



Thank You

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