Use of RFID in Shipments between Shore Base Terminals and Oil

Platforms in the Gulf of Mexico

Yasemin AksoyTulane Consortium for Supply Chain Management

YAksoy@tulane.edu

July 2004 Global Manufacturing Research Group in Istanbul

Agenda

Objectives and scope RFID Basics Process Flow Pilot Performance Evaluation

PROJECT TEAM

ChevronTexaco– Evaluating technology

usage

Phase IV Engineering– Providing RFID

hardware– Programming for

ChevronTexaco specific process

Fiatech– Project Coordination– Vendor contacts for

technology Tulane University

– Pilot performance measurement

– Reporting

PROJECT OBJECTIVE

Understand the economic factors and feasibilities of using RFID technology in tracking the movement of materials from the Venice shore base to the Main Pass 41 field.

Current Problems

Items unaccounted for at the base Items not delivered to the platform Items not loaded on the boat Items misplaced in yard/warehouse Items disappeared on route Items delivered to the platform but misplaced Items unaccounted for (no confirmation of receipt

offshore) Items delivered to the wrong platform

Scope

Tracking of material shipments to and from the Venice shore base terminal to the Main Pass 41DLM facility using RFID technology.

Hardware: 60 RFID tags, 2 handheld readers 1 month study; parallel to existing process Observations at each location

RFID BASICS

Radio Frequency IDentification (RFID)– a tag containing a computer chip that includes

a miniature antenna and data storage Data transmitted from or written to the tag

Data captured by a hand-held reader

RFID TAG

RFID TAG READER

Reader

RF Module(Active)

Antenna

Example: Toll Tag• Tag is in your car• Broadcast the programmed information• Drive through Toll• Toll has Reader• Reader connected to Computer System

How Does RFID Work?

Source: FORRESTER RESEARCH

Radio Frequency

Benefits Limitations Common commercial uses today

Low frequency (125 to 134 Kilohertz)

Frequency accepted worldwide

Works well near metal In wide use today

Limited read-range potential (impractical for some warehouse operations such as pick and pack); less than 1.5 meters

Animal identification Beer keg tracking Automobile key-and-

lock, anti-theft systems

High frequency (13.56 Megahertz)

Frequency accepted worldwide

Works well in most environments

In wide use today

Does not work well near metal

Limited read-range potential; less than 1.5 meters

Library book tracking Pallet/container

tracking Access control

(buildings) Airline baggage

tracking Apparel item tracking

UHF (868 to 928 Megahertz)

Longer read-range potential; more than 1.5 meters

Commercial use is growing rapidly

Frequency not issued for commercial use in Japan

Detuning when tags are in close physical proximity

Does not work well in most environments

Pallet and container tracking

Truck and trailer tracking (in shipping yard)

Microwave (2.45 Gigahertz)

Longer read-range potential; more than 1.5 meters

Frequency not issued for commercial use in parts of Europe

Complex systems development

Not in wide use today

Access control (vehicles)

RFID Bar Code

Can be read or updated without line of sight Requires line of sight to be read

Can be read in multiples simultaneously Can only be read one at a time

Can be read at high speeds Need slowing down for aiming purposes

Can cope with harsh and dirty environments Cannot be read when dirty or damaged

Can be automatically tracked Needs manual handling

Can identify a specific item Can only identify the type of an item

Electronic information can be over-written repeatedly Information cannot be updatedCan be read even when concealed within an item (steel, concrete, water, human) Must be visible to be logged

Can accommodate longer read range Requires limited read range

Costs are higher Costs are lower

Materials arrive at the shore base terminal.

Truck driver presents printed manifest to receiving supervisor

Receiving supervisor enters information into the manifest application and downloads the manifest file to the handheld reader.

Shipping supervisor attaches a tag to each item to be tracked.

Process Flow

Shipping supervisor selects each item from check list and reads barcode on tag. Handheld reader automatically writes item from check list into tag memory. Item is added to Shipping Manifest.

Process Flow continued

Shipping supervisor takes electronic inventory of all tagged items.

Shipping supervisor plans logistics of shipping to the appropriate off-shore destinations.

Inventory Screen shows

Green – Item listed on manifest was found

Red – Item listed on Manifest not found

Blue – Item found not listed on Manifest

Process Flow continued

Shipping supervisor takes electronic inventory of tagged items on board ship by walking around. Inventory screen shows the same as above.

Ship captain signs off on inventory. Handheld reader captures digital signature.

Process Flow continued

Receiving platform downloads the manifest from the server to their handheld reader.

Inventory file (manifest) is uploaded from handheld reader to PC and put on server by shipping supervisor.

Process Flow continued

Tags are removed for reuse

Received manifest is uploaded from offshore handheld to PC and transmitted to server.

Received items are scanned and reconciled against downloaded manifest.

Missing or extra items are identified.

Process Flow continued

Performance Metrics

Accuracy in accounting Performance of RFID tags with respect to (a) correct

information transfer, (b) ruggedness to physical handling, practicality of use in this application

Number of missing items Number of complaints received on missing items Feedback from the frontline users and customers

Location based results (number of respondents shown in parentheses)

Overall Results

(8 respondents)

Venice Shorebase (3)

Offshore Platform (5)

Questions

(Answers are scores of 1 to 10 where the meaning of the scores are shown below in parentheses) Average Range Average Range Average Range

How easy was it to do the roll calls? (1 means very difficult; and 10 very easy)

7.63 6-10 6.67 6-8 8.2 6-10

How easy was it to do the associations? (1 means confusing, incoherent; and 10 very easy to understand and act upon)

6.29 1-10 6.67 1-10 6 4-8

What was the overall quality of the RFID technology (hardware and software) you received? ( 1 means very amateurish; and 10 highly polished, very professional)

6.5 1-10 6.33 1-10 6.6 1-9

How useful did you find the RFID technology? (1 means it was useless, I got nothing from it; and 10 a real eye opener, I got unexpected and valuable insights)

5.86 2-10 7.33 6-10 4.75 2-7

What is your overall satisfaction with the RFID pilot? (1 means it was useless, I got nothing from it; and 10 a real eye opener, I got unexpected and valuable insights)

6 3-9 7 6-9 5.4 3-8

How useful did you find the RFID tags? (1 means very unsatisfied, it wasted my time; and 10 very satisfied)

5.63 2-8 6.33 6-7 5.2 2-8

User Evaluation of RFID

Future Issues

Tagged shipments from vendors Paperless Manifest Integration into wireless LAN Tracking of rental/high price/hazardous

materials Use of sensors within RFID tags