rfid for warehouse and inventory management...insert your logo here 1-define the rfid strategy...

RFID for Warehouse and Inventory Management

Ygal Bendavid, Ph.D.,

UQAM /Academia RFID

INSERT YOUR LOGO HERE 2

Ygal Bendavid• Professor, Ph.D., UQAM's

School of Management• http://www.mantech.uqam.ca/• Co-founder, Academia RFID• http://www.rfidacademia.com/• Training & certification• Seminars @ RFID Journal Live

since 2006• Email: [email protected]

INSERT YOUR LOGO HERE

Objective of the presentation

• Understand how RFID can be used to gain visibility over your inventory?

– Define the RFID strategy & select the right project

– Use a methodological approach to solve problems & identify opportunities

– Target the appropriate RFID technology for your specific case

Define the RFID strategy & select the right project


1-Define the RFID strategy Vision & orientation

Is RFID right for my (warehouse) inventory management?

– What are the Strategic-Tactical-Operational goals of my warehouse/inventory project?

– How effective and efficient are the existing operations & business processes?

– How can RFID help me reach these goals?


Select the right RFID project Project Portfolio Management

Complexity risk & effortImpa

cts

(e.g

. per

form

ance

im

prov

emen

t )

Net Present Value% (T

echn

ical

Suc

cess

)


Select the right RFID project

• Strategies (resource allocation based on priorities)• Financials Methods (Popular but….)• Bubble diagrams or portfolio maps

(Classification XY) • Scoring Models (selected criteria's and relative

weight)• Check-lists (Yes-No; Go-Kill points-Stage gate

model)






– Target the appropriate RFID technology for your specific case

Use a methodological approach to solve problems & identify opportunities


2-Identify opportunities & Solve problems

• Use a Methodological approach to identify opportunities & Solve problems– Set of practices, procedures & rules used in the

inquiry/investigation of RFID potential– With the goal to understand different situations &

acquiring new knowledge– Based on gathering observable, empirical &

measurable evidence in your warehouse!


2 Methodology Different Methods & tools at different phases of the project

1.Problem definition2.Data gathering3.Data analysis and Solution

Development4.Cost Impacts and pay off

Analysis5. Implementation

See : Bendavid Y. and Cassivi L (2010), Bridging the gap between RFID/EPC concepts, technological requirements and supply chain e-business processes, Journal of Theoretical and Applied Electronic Commerce Research, VOL 5 (3) pp. 1-16

Academia RFID

Academia RFID


2.1Methodology & Tools Defining the problem

1.Problem definition2.Data gathering3.Data analysis and

Solution Development4.Cost Impacts and pay off


Academia RFID

Academia RFID

•Employee surveys•Issues Trees•Root cause analysis•Cause & Effect Diagrams (Ishikawa)•(ABC)Pareto analysis•Impact analysis•Gap Analysis•Organization analysis•Industry analysis•Process mapping•…


2.1 Methodology & ToolsDefining the problem: an example using an issue tree

Higher Revenues

LowerCosts

HigherMarket Share

Quality of Products & Services

Reconciliation/ Deduction

BusinessGoals

Drivers

Theft duringDistribution

Price Issues Quality issues Process FailureCauses

RFIDImpact

Real Time alert: mismatch loaded vs. unloaded items

Real Time alert: mismatch order vs. loaded items

RFIDenabler

AutomaticScanning

Real time Access to back end sys.

Unique (EPC) IDOn tags

Wrong Qty Shipped

Wrong Prod. Shipped

Split Vs. Block Shipment… …

Door (light)Sensor

Source: Adapted from EPC Global US, 2005 - EPC Value Model for Consumer products

•Build a root cause analysis•Identify where RFID can have an impact


2.1Methodology & Tools Defining the problem…more tools (Keep it simple)

Camion de livraisonarrivé au CDM

Décharger lestransfos Magasinier

BOL vérifié etnon conforme

Réception ne peutpas être procédée

(BOL)

Rapport de nonconformité

BOL vérifié etconforme

Effectuer lesopérations de

contrôle

Magasinier

Magasinier

Vérifier transfosvs BOLBOL

Réceptionpeut être

procédée (BOL)

Transfos entreposéstemporairement

Entreposer les transfos(temporairement)

Magasinier

Transfosdéchargés


2.2 Methodology Document the current situation (AS IS)


solution development4.Cost impacts and pay

off analysis5. Implementation

Academia RFID

Academia RFID

Wireless Network

Technical•Site Survey•IT Infrastructure/system maps•IT portfolio•Wireless Network

Business•Plant tour/audits•Flow charts/Business Processes •Pareto charts•Org. Charts•Work sampling•Value chain Design


2.2 Methodology & ToolsDocument the current situation (AS IS) : a process perspective


2.2 Methodology & ToolsDocument the current situation (AS IS) : a process perspective

Sub Activities Layer 1

Initial Event

Function

Final Event

Business Processes Layer 2

Business Activities Layer 0

Entitytyp

OrgUnit

Subprocess Layer 3-n ...

Position

Screen

Doc

E-Doc

•Use Process modeling methods & standards (ANSI, EPDC)•Concentrate on core processes (receive, put away, pick, pack, etc.)•Use KPIs to assess/ measure your processes


2.3 Methodology Data analysis & Sol. Development


solution dev.4.Cost Impacts and ROI

analysis5. Implementation

Academia RFID

Academia RFID

•Value chain analysis•Business process analysis (BPA) - value analysis •Use case & requirements definition•Computer simulation•Problem analysis (SPC Tools)•Labor productivity •Laboratory experiments•Pilot project


2.3 Methodology & ToolsProcess maps & value analysis (and waste)

Camion de livraisonarrivé au CDM

Décharger lestransfos Magasinier

BOL vérifié etnon conforme

Réception ne peutpas être procédée

(BOL)

Rapport de nonconformité

BOL vérifié etconforme

Effectuer lesopérations de

contrôle

Magasinier

Magasinier

Vérifier transfosvs BOLBOL

Réceptionpeut être

procédée (BOL)

Transfos entreposéstemporairement

Entreposer les transfos(temporairement)

Magasinier

Transfosdéchargés

Reduce the amount of late orders delivery

Added value Non added value(but

necessary)

Non added value

A1 A2 An A1 A2 An A1 A2 AnMonday 17 Jan. (10h-12h)

Tuesdayi25 jan. (10h-12h)

Mardi 25 jan. (14h-17h)

…

Waiting time

Unnecessary material movement

…

Over stock See: James P. Womack & Daniel T. Jones Lean Thinking: Banish Waste And Create Wealth In Your

Corporation


7‐Receiving ..

2‐ Case packing

1‐ Dispensing

Shipping/packaging level

Pallet

Case

Item

6‐Transport

3‐Put‐away

4A‐Pallet picking

5‐Shipping

4B‐ Case picking(for mix pallet)

←Rail Car ‐ ‐ ‐ Truck →

Manufacturer

Portal ‐ Fixed readers(external antennas)

Mobile UHF hand held reader

RFID/label printer

RFID tag2D barcode

RFID tag

RFID tag

2.3 Methodology & ToolsData analysis & Sol. Development: an example

BOL

Truck Arrived

Go to officeFor BOL validation

TruckDriver

BOL OKBOL Not OK

Assign one Ware. Employee

Approve BOL & Assign oneDock Door

Dock DoorAssigned

Employee Assigned

OfficeAssociate

Move Truck to Ass. Dock Door

TruckDriver

WMS

SynchronizeInfo. (SAP vs

RFIDTerminal)

WMS

BOL Info.Synchronized

RFID Readers


2.4 Methodology Sol. Development & ROI analysis


solution development4.Cost Impacts and

ROI Analysis5. Implementation

Academia RFID

Academia RFID

•Decision Tree•Business Process Performance/Analysis (BPA)•Balance scorecards (BSCD) •SCM frameworks (Supply chain council - SCOR)•Infrastructure cost analysis•Lab. scenario design and testing (trade off)•RFID system decision matrix


2.5 Methodology Sol. Development & implementation


solution development4.Cost Impacts and ROI


•IT Project management guidelines & metho. (e.g. PMBOK)•New Product development (e.g. stage gate model)•ERP/IOS implementation methodologies (BPR)•Laboratory experiments•Pilot project






– Target the appropriate RFID technology for your specific caseTarget the appropriate RFID technology for your specific case


3 Select the appropriate RFID technologySome basic questions

• Which application / business process(es)?– Which products? What level of tagging? – What functionalities are required for the tags/readers?– What is the level of process automation? Automated?

Semi-automated?– Where will items need to be identified?– How many products (tags) at a time?– What is the speed (reading, commissioning tags, etc.)?– What is the reading/writing distance? Where? – What is the required level of Security ?– With who to share the info? Why?– Etc.


3 Select the appropriate RFID techno.

• Source of energy & frequency…

Passive Active Semi Passive


Wired and wireless LAN (Wi Fi, 802.1x

access points)

Active, semi passive, & hybrid RFID TagsPassive RFID Tags

Fixed RFID readers

Mobile RFIDreaders

(5) Com. Networks e.g. Warehouse Management enginee.g. Logistic management engine

(6) RFID Middleware

(6) Enterprise Info. Sys.

(7) Inter Org. Info. Sys.

Mounted RFIDreaders

(4) Ancillary Devices

(2) AIT including RFID Tags

ERP/ WMS TMSMobile Apps

e.g. Bar Codes (stacked, linear, 2D)

(3) RFID Readers & antennas

Dat

a ca

ptur

e an

d id

entif

icat

ion

Dat

a S

harin

g

Dat

a m

anag

emen

t

(1) The physical world - tagged Objects

Source, Bendavid Y. (2012). Inter. J. Automated Id. techno. 4 (1)., pp. 11-24

3 S

elec

t the

app

ropr

iate

RFI

D te

chno

logy


3 Select the appropriate RFID techno. for your specific case? • The technology will support your

case – Requirement management– Passive RFID (LF, HF, UHF)– Active RFID (proprietary 433Mhz,

UWB, RFID/IR, RFID/WIFI)– Active RFID with sensors– Semi Passive RFID (BAP)– Hybrid solutions


Thank you!

UQAM, School of business315 Ste-Catherine est Local R-3570Montréal (Québec) Canada H2X 3X2Tel: 514-987 3000 (x 2429)Web site: www.mantech.uqam.ca

Academia RFID9916 Côte de liesse,Montréal QC CanadaH8T 1A1Tel: 514 631 8282 – Fax: 631 9696Web site: http://www.rfidacademia.com

Ygal Bendavid

rfid for warehouse and inventory management...insert your logo here 1-define the rfid strategy...

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