Southern California eBusiness Forum RFID

1. Southern California eBusiness Forum RFID

2. Agenda • Making Sense of It All • Alternatives • Where to Start • Applications

3. Intermec Technologies Corp. • $850M revenue • 37 years experience in supply chains and ADC • Focus on industry verticals, investment protection • Over 20 years experience with RFID • 37 years in global standards organizations • RFID through ISO, ANSI, EAN and UCC since 1998 • EPCglobal Hardware and Business Action Groups • End-to-end supply chain solutions Home Sales & Field Service Warehouse & Logistics Retail Manufacturing

4. Making Sense of It All

5. How RFID Works • Asset Contains an RF Tag/Label Instead of (or in conjunction with) a Bar Code Label • Interrogator “Scans” the Tag for Information Using RFID. • The Differences: • a) Interrogator May Read any field or memory location • b) May select a group of tags based on field values • c) Write New or Additional Information to Tag (depending on privileges or process requirements)

6. Antenna Reader / Interrogator Existing Data Collection System Tag Theory of Operation

7. Not All Tags Are The Same • Three Basic Types: • Active • Battery powered memory, radio & circuitry • High Read Range (300 feet) • $$$ • Semi-Passive • Reader activates tag, but battery powers memory and circuitry • Medium Read Range (10 - 50 feet) • $$ • Passive Backscatter • Reader powered • Shorter Read Range (4 inches - 18 feet) • $

8. Passive Backscatter – Our Focus • Low Cost • Good Read Range • Good Read Rate • Standards

9. Frequencies RFID: Item Management & Toll Roads RFID: Access Control Animal ID RFID: Item Management RFID: Smart Cards Microwave EAS Data Terminal Cell Phone Low Freq. EAS Mid. Freq. EAS TV Data Modem Radio Toys Garage Door FM AM CB 10 MHz 10 kHz 100 kHz 1 MHz 100 MHz 1000 MHz 2.45 GHz 300 GHz Best bet… Concentrate on your business requirements Let requirements dictate frequency

10. Standards • ISO • 18000-6B • Global • 18000-6C • Global • Matches Gen2 • EPCglobal • Gen1 • Class 0 • US Only • Class 1 • Limited outside US • Gen2 • Global • Matches ISO 18000-6C

11. Alternatives

12. Tags • Rigid Tags • Reusable • Long Life • Flexible Tags (Labels) • Shorter Life • Inexpensive

13. Application Hardware Required Interrogator Options • RFID Interrogator and Antennae • Presence Detectors • PLC or Process Controller • Alarm / Lights Conveyor Scanning IF4 IF8 A • RFID Interrogator and Antennae • Presence Detectors • Lights, Alarms, Message Board • Process Controller Dock Door Scanning IF8 IF5 B • RFID Interrogator and Antennae • Lights, Alarms, Message Board • Process Controller Stretch Wrap Scanning IF8 C • RFID Interrogator and Antennae • Presence Detectors • Lights, Alarms, Message Board • Process Controller Overhead Scanning IF5 IF8 D • RFID Write and Read • Barcode Imager (Linear / 2D) • WLAN, WAN • Bluetooth Hand Held Mobile IP3 E • RFID Interrogator and Antennae • Rugged Vehicle Mount Computer • Wireless LAN Card and Antenna • Special Tag for Pallet Forklift Reader IV7 IV8 F • RFID Printer with Software • Labels for various materials and sizes • Application Controller RFID Printer and Labels PM4i G IF5

14. Inventory Management Receiving Quality Assurance Product Labeling & Tracking WIP Replenishment Labor Tracking Asset Tracking Tool Crib Secure Access Work-in-Process Time & Attendance Shipping Your Manufacturing Floor

15. Receiving Forward Pick Replenishment Cross-Docking Picking Document Management Putaway Order Consolidation Inventory Management Shipping Your Warehouse/Distribution

16. Where to Start

17. Qualifying Issues Performance Process Change Cost Time

18. Implementation • Preliminary Site Visit • Spectrum Analysis • Mounting Requirements • Power and Network Connections • Tag Attachment • Interface Requirements

19. Non-RFID Considerations • Application Needs • Cost / Benefit Ratio • Data Redundancy • Rely on 3rd party database? • Rely on network integrity and persistence? • Infrastructure Costs (Network Capacity) • Data Security • Encryption • Overall Benefit • Increase scope of analysis • Response times • Item-specific, time-dependent data

20. Logistics / Transportation • Raxel • Biohazardous waste tracking / disposal • Governmental compliance • JM Family Toyota • Automotive inventory control • Barcode and RFID • Paramount Farms • Nut harvesting • Truck / trailer tracking • Cargill • Sugar cane harvesting • Truck / trailer tracking

21. Consumer Products • Excel Beef • Beef tracking • Governmental compliance • Georgia-Pacific • Pilot • Reusable plastic containers

22. Retail and Retail Supply Chain • Metro AG • Case and pallet level tracking • ISO 18000 at first • GTIN plus serial number • Future store initiative • Vendor mandate • Multiple DCs

23. Industrial Products • Major Automotive OEM • WIP tracking and process control • Engines, transmissions, chassis • Two Major Heavy Duty Truck Makers • WIP “traveler” and process control • Avoid assembly line shutdowns • Major Personal Watercraft Maker • Final assembly • WIP “traveler” and process control • Major Automotive OEM • In-plant metal rack tracking • Forklift readers • Handhelds

24. Homeland Security • US Army FORSCOM (Ft. McPherson) • Access control during low level security threats • Real-time descriptions of authorized vehicles and personnel • Windshield decals • INS • Border crossing security • Plastic ID cards with RFID

25. Miscellaneous • Sharp – major appliances • Sheetz – computer asset tracking • Boise Cascade – QA location inspection • Trane – air conditioners • Johnson Space Center – gas cylinder • Delphi – plastic part containers • MTD – engines for mowers & snow blowers • Woodbridge – metal racks

26. RFID Pilots • Tire Tagging • Medical Instruments • Tobacco Pallets • Cases of Meat – retail stores • Carpet & flooring material tracking • FEMA – asset tracking • American Woodmark – pallets of cabinets • Lockheed Martin – Navy ship components

27. Product Genealogy Mechanics Benefits • RFID tag affixed to part, assembly or box • Tag can contain part number, location produced, production line, worker, date and other types of information • Product genealogy can travel with the part through out its useful life or requirement of the process • Portals, VMU or hand-held units can interrogate and update the RFID tag any where, any time to get a complete history of the item • Eliminates wasted time • Improves regulatory compliance • Minimize warranty risk • Optimize efficiency and customer satisfaction • Increases recall efficiency

28. Putaway & Picking Mechanics Benefits • Place RFID tag at each location • Recommended for A and B level items • RFID pallet tag or over-pack label on each load • VMU interrogator automatically reads and writes tags • Any scanning required by a WMS for location and pallet ID • Hand-held unit can be used • Swifter identification and location • Alerts incorrect action • Item and location matching eliminates wasted time and costs • Validated without error

29. Putaway/Picking 2 3 4 1 C B A RFID Tags on pallets and at locations RFID Reader on Forklift S2 S3 S1

30. Incorrect Go To A2 Putaway Go to A4 Pick Go to S3 Go To A2 Verify Putaway/Picking 2 3 4 1 C B A Tags at Locations & Pallets S2 S3 S1 RFID Reader on Forklift

31. Return to Receiving Pick Go to S3 Putaway/Picking 2 3 4 1 C B A Tags at Locations & Pallets S2 S3 S1 RFID Reader on Forklift

32. Kanban Signaling - Replenishment Mechanics Benefits • RFID tag can contain exact part number and production line destination • When parts are gone, container can be placed or pushed into range of RFID reader. Or tag can be exposed by missing part. • Forklift driver is directed to pick the part and deliver it to the proper work location • Location tag at the work cell can be read by the VMU interrogator or hand-held unit to verify proper match • ERP and WMS are updated • Ensures accurate replenishment • Decreases or eliminates down time • Reduces error correction expenses • Kanban directly communicated • Improves workcell efficiency • Increases on-time delivery

33. Replenish WC27 P/N B6579C Kanban Signaling - Replenishment

34. Kanban Signaling - Replenishment Mechanics Benefits • RFID tag can contain exact part number and production line destination • When parts are gone, container can be placed or pushed into range of RFID reader • Forklift driver is directed to pick the part and deliver it to the proper work location • Location tag at the work cell can be read by the VMU interrogator or hand-held unit to verify proper match • ERP and WMS are updated • Ensures accurate replenishment • Decreases or eliminates down time • Reduces error correction expenses • Kanban directly communicated • Improves workcell efficiency • Increases on-time delivery Allows tracking between suppliers and customers

35. Labor Tracking & Security Mechanics Benefits • Worker badges contain RFID tag • Tag contains worker ID and other authorizing data • Security - Workers can use their RFID badge to open portals, secure doors, cages, etc. • WIP – labor value added by specific individuals can be captured • Asset Utilization - Attempts to utilize assets, such as forklifts, can be verified against training • Increases facility security • Decreases risk • Efficiently captures labor costs • Optimizes warranty

36. Plant Maintenance & Field Service Mechanics Benefits • Plant or field equipment carries an RFID tag • Tag can contain information such as last maintenance date, technician ID, parts upgraded, actions taken and next maintenance date • Technicians read tag to verify equipment and location, perform maintenance or repair, and update RFID tag with newest data • Ensures proper location and equipment • Allows quick reference • Immediate updates • Eliminates wasted time and procedure errors

37. Yard Management Mechanics Benefits • Incoming trucks logged-in • Bill-of-Lading/Manifest matched to P.O. • Temporary RFID tag attached to the trailer • Scanning tag with handheld unit or as truck goes through a portal, writes manifest number to RFID tag • If location tags are use, location is matched when trailer is dropped by driver • If random location is used, RFID tag allows swift trailer location & content identification • Reduces lost shipments • Increases productivity • Eliminates costs • Reduces excess inventory • Increases customer satisfaction

38. No Not Truck #5 7 8 5 6 Yes This is Truck #5 3 4 1 2 Yard Management 15 16 13 14 Lot A 11 12 9 10 Park in Slot 3 Park in slot 13 Lot B

39. Thank You! Questions? Mike Nichols mike.nichols@intermec.com