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NEECOM Conference I’ll Buy the Beer

NEECOM Conference I’ll Buy the Beer. October, 2007. EC Workshops, LLC. I’ll Buy the Beer. If I can’t make your business, whatever it is , better with bar codes…. Paula Giovannetti. Sr. Consultant, Supply Chain Technologies, EDI Specialists www.edispecialists.com

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NEECOM Conference I’ll Buy the Beer

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  1. NEECOM ConferenceI’ll Buy the Beer October, 2007 EC Workshops, LLC

  2. I’ll Buy the Beer If I can’t make your business, whatever it is, better with bar codes…..

  3. Paula Giovannetti • Sr. Consultant, Supply Chain Technologies, EDI Specialists • www.edispecialists.com • Director, eBusiness, Industrial Supply Association • www.isapartners.org • Owner, EC Workshops • www.ecworkshops.com • Teach at Ohio University’s AIDC Technical Institute, Gateway Technical College, etc.

  4. Current Global Standards Involvement • GS1 Bar Code & Automatic Identification Business Requirements Group • Bar code symbologies, GTIN, GLN, RFID • Maintain GS1 General Specifications • EPC Technical Development Team • EPC TDT Process & Message Sub Team (EDI/RFID) • XRG – X12 EDI for North America – Retail, Grocery, Industrial / Commercial • Trading Partner Performance Work Group**

  5. Agenda • Applications and Case Studies • Relevant Standards bodies • AIDC basics • New Bar Code Symbologies and Scanners

  6. Legend Foundational information It’s important to understand this. Pertains mostly to Retail / Grocery Fairly technical – You probably have “people” for this. Don’t worry if you don’t exactly get it. We’re going to skip through this; you can go back and read it if you need to know more.

  7. Applications and Case Studies • Bar Codes are NOT just for retail • Tiles on the shuttle • Work in Process • Receiving • Manage Scrap

  8. Case Study 1: Manufacturing Work in Process • Job shop shut down 2 days a month for Work in Process Inventory • Customers call to ask about their orders • Bottlenecks • Track employee time – punching time clocks • Evaluate employees and track productivity • Validate pricing, which was primarily labor

  9. Solution • Use bar codes to track • Which Job • Each job was assigned a number, in a bar code which traveled with the work. • Which Step • Each employee had a laminated sheet with the steps in the manufacturing process. • Which Employee • The bar code reader tracked who and date/time stamped the scan.

  10. Scan the Job / Step and We Know: • Date & time • Where it is in the process • How long it took • With enough history, how long it should take

  11. Crunch the Numbers • Established standard times for each step • When will it be done compared to promise date • Employees productivity evaluated and POSTED • Bottle necks identified • Employees moved to other work stations • Dollar value assigned for each step • Value of WIP is known at all times

  12. Advantages • Never shut down for WIP • Gained 24 work days (one month) a year!!! • Evaluate employees’ efficiency • Efficiency improved because it was tracked • Replaced Time Clock • Improved customer service • Help prevent late jobs • Answer Customer’s questions • Improved through put • System still works 18 years later

  13. Case Study 2: Warehouse Receiving • Shipments were set aside until all cartons were received • If the contents received did not match the pack list, they started over • Often the pack list was wrong • No individual was really responsible for receiving accuracy

  14. Receiving… • Fork lift drivers never knew when they could start to put-away cartons • If they put them away before the ‘second’ count they had to bring them back • No uniform product ID bar code on the carton • Multiple labels on each carton – old and new • IF YOU DON’T RECEIVE IT RIGHT, NOTHING CAN GO RIGHT AFTER THAT!

  15. Solution – Put Away Labels • Narrow the scope of receiving • Determine from pack list and carton marking: • Supplier • PO Number • Item/s • Quantities

  16. Accuracy & Accountability • Would only identify carton contents once • Emphasis on doing it right • Associates worked in pairs • One received • One double checked

  17. Print Put-Away Label • Print a label with an orange border • Receive date, PO#, product ID in text & bar code, Qty • If applicable “Mixed SKUs” in large letters • Initials of the two receivers • If the label is wrong the receivers were held accountable • Carton placed in a “post-receiving” area • Carton with an orange labels are eligible for put-away • After 6 months they ordered labels with a blue border • When picking – pick the orange ones first

  18. Advantages • Less time • Less space • Better accuracy

  19. Case Study 3: Scrap • Manufacturer using brass hinges and locks • Scrap rate was high

  20. Solution • Placed boxes with bar codes on each workbench to collect and track scrap rates • Each evening the boxes were emptied • Scrap went down 37%

  21. What problems do you want to solve??

  22. Data Standards and Structures

  23. Why Standards? • American National Standards Institute (ANSI) & International Standards Organization (ISO) • We can buy a lamp from Bloomingdale’s and a light bulb from Piggly Wiggly and they work together!! • Hardware and software is interoperable • Share cost of doing business with your competitors • Efficiency for the trading partners within an industry • Differentiate your company with value, customer service, quality - not your PO file format

  24. Standards Organizations • GS1 - US • Previously the Uniform Code Council (UCC) • Now one of many Member Organizations of GS1 • Assign Company Prefixes and manage X12 EDI for grocery and retail • GS1 • Combination of EAN – International and UCC • Member Organizations for each country • Assign Company Prefixes • Manage EANCOM EDIFACT (EDI), XML Business Messages and bar code standards • EPCglobal and Global Data Synchronization Network • Joint ventures between GS1 and GS1-US • Create standards for RFID and Global Data Synch, respectively

  25. Your Standards • There are lots of other standards organizations • ISO, AIM, HIBBC, DoD, W3C, ANSI, etc. • Department of Defense has UID, DODAC and CAGE codes to describe items and companies • Healthcare has National Drug Codes • And so on…… • For the most part these organizations work together to make sure they are not in conflict.

  26. GS1 System The Language of Business • Electronic business transactions • EDI – North America • EDIFACT EDI – International • XML – application specific use • Automatic data capture • Bar codes • RFID • GS1 keys • Identify items, companies, locations and assets

  27. What’s in a Name? • Mass confusion!!! • Proposed: • EAN.UCC = GS1 • UCC = GS1 US • UCC-12 = GTIN-12 • EAN-13 = GTIN-13 • EAN-8 = GTIN-8 • EAN.UCC-14 = GTIN-14 • UCC/EAN-128 = GS1 Code 128 • U.P.C. stays U.P.C. (Not Plumbers)

  28. Advantage of GS1 System • Global uniqueness for items, locations, paperwork, and assets • Democratic Change Request Process • Working with retail, grocery, industrial / commercial, healthcare • A little known thing called an Application Identifier which is about to become more important to you.

  29. Application Identifiers: • Easy to explain to EDI folks • It’s a qualifier for bar code data • “GM” = Serial Shipping Container Code in the MAN segment of an ASN • (00) = Batch or Lot Number in a bar code • Identify the type of data in the bar code • Human readable is in parenthesis • Not used with every symbology • Not UPC, EAN, ITF • Always used with • GS1-128, GS1 DataBar

  30. Examples of AI’s • (00) – shipping container serial number • (01) – GTIN • (420) – Zip Code • (402) – BOL • Expiry Date, price, serial number, lot number, PO number……

  31. Open Supply Chain • We need globally unique identification when an item or carton hits the open supply chain • 3rd Party Warehouses, Transportation Carriers, Customs & Border Patrol, etc. • To insure uniqueness, we use specific data structures

  32. For Example: • Lady in a drug store: • Charged for photo finishing • Her library card number matched the internal number for photos in the store • The Wall St. Journal thought it made a cute story……

  33. Building a Globally Unique ID Number: • GS1 Keys consist of • An Application Identifier • Company Prefix • Identification Number • Check digit

  34. Components of a Key (01) 10614141543219 Application Identifier (AI) Which key is this; used with certain symbologies Indicator Digit Used to further define the key; not used in every key Company Prefix Assigned by GS1, Company prefixes are VARIABLE LENGTH Item Reference Number Assigned by the creator of the key to make it unique Check Digit Assure the number has been read correctly

  35. GS1 Keys • SSCC – Serial Shipping Container Code • GLN – Global Location Number • BOL – VICS Standard Bill of Lading • GRAI / GIAI – returnable & individual assets • GSRN - Service Relationship (customer) • GDTI - Document Types • GTIN – Global Trade Item Number • EAN– 8 (GTIN-8) • UCC – 12 (UPC, GTIN-12) • EAN – 13 (GTIN-13) • EAN/UCC – 14 (GTIN-14)

  36. That’s the Data and the Structure • Now we’ll talk about AIDC carriers

  37. Automatic Identification and Data Capture • $10 word for bar codes • AIDC Technologies: • Linear and 2 dimensional bar codes • Radio frequency identification tags • Magnetic stripe • Smart Cards • Voice data entry • Biometrics

  38. Bar Codes are Beautiful in Their Simplicity Data entry device - scan it into the computer Data entry = 1 error in 300 characters 1 in 26 UPC’s would be wrong AIDC = 1 error in 3 million characters 250,000 UPC’s captured without error

  39. AIDC Components • Data • In a certain data structure • Using a specific symbology orcarrier Data / Structure / Carrier

  40. UniversalProduct Code - UPC • Data = 12 digit unique number • Structure • GS1-US issued company prefix • Item reference number • Mod 10 check digit • Carrier = UPC symbology

  41. Data / Structure / Carrier Carrier Data Structure = GS1 US Company Prefix + Item Reference + Check Digit

  42. Bar Code Symbologies • Symbology • Set of rules to encode and decode data • A type of data carrier • Like a language or font • Types: • Linear Bar Codes • High Density • Composite

  43. Linear Bar Codes • Uses bars and spaces • Don’t build intelligence into the number • All numbers starting with 1 are made in Timbuktu…… • A unique key - look it up in a data base

  44. Linear Bar Code Symbols • Code 39 • UPC / EAN • Created by GS1 • Interleaved 2 of 5 • GS1 sub-set is ITF-14 • Code -128 • GS1 sub-set is GS1 Code-128 • GS1-DataBar (Reduced Space Symbology) • Comes in seven flavors…

  45. UPC/EAN Symbology • Used at Point of Sale around the world • Omni-directional • Managed by GS1

  46. GTIN-12 data structure (UCC-12) GTIN-13 data structure (EAN-13) UPC EAN

  47. UPC-A UPC-E UPC Has Two Versions Both carry a UCC-12 UPC-E is zero suppressed and can only be created when your GTIN-12 (UCC-12) contains the right amount of zeros in the right places.

  48. Interleaved Two of Five • Aka ITF, I2F, I2 of 5 • Sprayed on corrugated boxes with ink jet • Identify an item during manufacturing • Can still read if it “feathers” • Numeric only • Has heavy “bearer” bars • Even number of digits - 152 becomes 0152 • Carrier requires that the data fit into the correct data structure • Public Domain

  49. ITF-14 is a GS1 Sub-Set • GS1 supports ITF to carry the GTIN • ITF-14 means the data is 14 digits • To create an even number of numbers with EAN-8, EAN-13 and UCC-12 they went to 14 • Pad to the LEFT with zeros to 14 create digits • DON’T need to store the data with extra zeros • If you do it won’t match the data scanned in an EAN/UPC • Rules managed by GS1

  50. 00 + UCC-12 in ITF-14In other words, a “UPC” number in ITF-14 Symbology

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