RFID Tags and Inventory Tracking

1. RFID Tags and Inventory Tracking Rachael Wilcox, Lindsey Marlow, and Josiah Rolland

2. Why We Chose This Topic Poor inventory tracking at Sam’s Club Uses a barcode system Know when there are items in stock but not where they are in the store How can we change this in a manufacturing setting?

3. Overview General IPP DFDs Chosen Technology – RFIDs Changed DFDs Summary Questions

4. Objectives Know and understand the steps of the Integrated Production Process Have a better understanding of RFID tags and how the benefit inventory tracking process Realize the value of RFID tags and how they may benefit your future as a listener Gain knowledge of this new technology and the impact it will have on the industry

5. Integrated Production Process Steps Step 1- Design product and production processes Step 2- Generate master production schedule Step 3- Determine needs for materials Step 4- Develop detailed production instructions Step 5- Record manufacturing events Step 1 - Main purpose is computer-aided design, engineering, and process planning Step 2 - Main process is generating a schedule, determining detailed material needs, developing detailed production instructions, and tracking data during production - The master production schedule is generated from many sources that I will explain in the Level 0 DFD Step 3 - Materials requirement planning is used to develop a time-phased requirements schedule for materials - In an enterprise system, this process is performed automatically using a variety of data from the enterprise database Step 4 - Uses capacity requirements planning is used to develop detailed machine & labor-use schedules that consider available capacity - This process may lead to the modifications to the master production schedule Step 5 - Uses Shop Floor Control to monitor and record the status manufacturing orders and work centers during the manufacturing process Step 1 - Main purpose is computer-aided design, engineering, and process planning Step 2 - Main process is generating a schedule, determining detailed material needs, developing detailed production instructions, and tracking data during production - The master production schedule is generated from many sources that I will explain in the Level 0 DFD Step 3 - Materials requirement planning is used to develop a time-phased requirements schedule for materials - In an enterprise system, this process is performed automatically using a variety of data from the enterprise database Step 4 - Uses capacity requirements planning is used to develop detailed machine & labor-use schedules that consider available capacity - This process may lead to the modifications to the master production schedule Step 5 - Uses Shop Floor Control to monitor and record the status manufacturing orders and work centers during the manufacturing process

6. Context DFD The Integrated Production Process has 5 main sources that go through the process The 5 sources are: Purchasing process – with open purchase order data going to the IPP and purchase requisitions going to the purchasing process Order Entry/Sales Process – with sales orders and/or demand forecast information going to the IPP Engineers – with product design going into the IPP Manufacturing – with labor time, material use, and work progress data going into the IPP Inventory Mgmt Process – with FG inventory status going from the IPP and into the IPP along with reorder points and lead times The Integrated Production Process has 5 main sources that go through the process The 5 sources are: Purchasing process – with open purchase order data going to the IPP and purchase requisitions going to the purchasing process Order Entry/Sales Process – with sales orders and/or demand forecast information going to the IPP Engineers – with product design going into the IPP Manufacturing – with labor time, material use, and work progress data going into the IPP Inventory Mgmt Process – with FG inventory status going from the IPP and into the IPP along with reorder points and lead times

7. Level 0 DFD On the Level 0 DFD there are 5 processes that are involved in the IPP. As we look at the processes, we will focus on process 5 – Record manufacturing events On the Level 0 DFD there are 5 processes that are involved in the IPP. As we look at the processes, we will focus on process 5 – Record manufacturing events

8. Process 5 Uses shop floor control (SFC) Collect real-time data Through the use of bar-codes SFC – is devoted to monitoring and recording the status of manufacturing orders as they proceed through the factory Also, maintains work center status information showing the degree ahead or behind schedule and use levels Through automation, the SFC process is able to collect real-time data that can be used for immediate feedback and control. Automated data collection might involve obtaining info by scanning a barcode attached to the product Next, is our Level 1 of Process 5 break-downSFC – is devoted to monitoring and recording the status of manufacturing orders as they proceed through the factory Also, maintains work center status information showing the degree ahead or behind schedule and use levels Through automation, the SFC process is able to collect real-time data that can be used for immediate feedback and control. Automated data collection might involve obtaining info by scanning a barcode attached to the product Next, is our Level 1 of Process 5 break-down

9. Level 1 of Process 5 We had to develop the level 1 of the process based on what the book described. We determined that there should be four main processes for Recording manufacturing orders.We had to develop the level 1 of the process based on what the book described. We determined that there should be four main processes for Recording manufacturing orders.

10. RFID Technology What are RFID tags How they work Factors you should know about if you plan to use RFID technology: Vendors Costs Implementation Maintenance Life span

11. What are RFID Tags? Radio Frequency Identification tags Tracks inventory movement throughout a process. Two types of RFID tags: Passive Active

12. How Do They Work Radio Frequency Identification System: A scanning antenna Gathers information A transceiver with a decoder Interpret the data A transponder- The RFID tag Programmed with information http://www.youtube.com/watch?v=aj7pbBg4LpI

13. Vendors/Products Intermec Brooks Automation RFID Solutions Online iDTronic Ask Gemplus Diagraph TrackerPoint Siemens PFFC Tagsys Accenture Technology Solutions

14. Initial Costs Tags and Scanners Thermal transfer labels usually costs around 40 cents. Larger tags may cost several dollars (RFID journal). Scanners cost around $500 to $7,000. Updating enterprise systems Difficult to determine Factors to consider: The number of different types of items the reader will need to be able to recognize. The number of items in total that the RFID system is capable of storing. The number of locations which a tag can be recognized at. How many users will be able to access the RFID applications.

15. Initial Costs Continued Middleware Takes the raw data that the RFID scanners relays to it, and then transfers the data to the enterprise system in a language it can understand. Costs are also hard to determine $25,000 for smaller operations to several hundred thousand dollars for larger operations (InformationWeek)

16. Implementation The Hard Part: Setting up the scanners and the software The Easier Part: Sticking on RFID tags Could become problematic Drilling on RFID tags

17. Maintenance Scanner battery replacement Battery Replacement 40 hours to several years Wear and Tear Rubbing or scraping Human interaction resulting in damage

18. Life Span Self powered tags Do not require batteries. How long will one RFID tag last? Virtually an unlimited life span (technovelgy). Damage to the tags will shorten their life span.

19. Disadvantages of RFID Technology Initial costs Bar codes for a cheaper replacement Tags not meant to leave the company’s location of operations Re-using RFID tags Frequency Jams By using just the right frequency, current RFID systems can be put to a halt Dishonest suppliers RFID tags say 20 items were delivers, but only 18 items were actually in the shipping box.

20. Advantages of RFID Technology Up-to-date records Prevents stock-outs Monitors slow moving inventory Shows location of goods

21. Updated DFD Describe how RFID technology would result in short time frames for data transfer? refer to “Advantages of RFID Technology” slide Describe how RFID technology would result in short time frames for data transfer? refer to “Advantages of RFID Technology” slide

22. The future of RFID Technology RFID technology in retail stores: http://www.youtube.com/watch?v=eob532iEpqk Self Service- No check out lines or cashiers

23. Summary Integrated Production Process Radio Frequency Identification Tags RFID tags save time and effort in the inventory management process

24. Questions?

25. Sources Gelinas, Ulric J., and Richard B. Dull. Accounting Information Systems. Mason, Ohio.: Thomson South-Western, 2008. Print. "New Process Speeds up RFID Tag Production Avery Says." Pharmaceutical Industry and Manufacturer - Pharmaceutical News, Packaging and Technology. In-Pharma Technologist, 01 June 2005. Web. 10 May 2010. <http://www.in-pharmatechnologist.com>. Parmann, Rychee. "RFID-Tag Manufacturing Process Incorporates Printed Antennas." The Complete Source for the Latest Industrial News Solutions. ThomasNet News, 09 June 2004. Web. 09 May 2010. <http://news.thomasnet.com/fullstory/RFID-Tag-Manufacturing-Process-incorporates-printed-antennas-452420>. Collins, Jonathan By. "Golf Car Maker Scores with RFID." RFID Journal - RFID (Radio Frequency Identification) Technology News & Features. 22 Mar. 2004. Web. 12 May 2010. <http://www.rfidjournal.com/article/purchase/839>. "How RFID Works." Technovelgy.com- Where Science Meets Fiction. Technovelgy. Web. 08 May 2010. <http://www.technovelgy.com/ct/Technology-Article.asp?ArtNum=2>. "RFID." Intermec.com. Intermec Technologies Corporation. Web. 07 May 2010. <http://www.intermec.com/products/rfidit32a/index.aspx>. "RFID System for Warehouse Management." YouTube - Broadcast Yourself. Hong Kong RFID, 20 Aug. 2009. Web. 12 May 2010. <http://www.youtube.com/watch?v=aj7pbBg4LpI>. "IBM RFID Commercial - The Future Market." YouTube - Broadcast Yourself. IBM, 02 June 2006. Web. 07 May 2010. <http://www.youtube.com/watch?v=eob532iEpqk>. "Rfid Scanner - Compare Prices, Reviews and Buy at NexTag - Price - Review." NexTag - Compare Prices Before You Buy. Web. 11 May 2010. <http://www.nextag.com/rfid-scanner/stores-html>.