Harsh Reality for RFID & RTLS -- It's About the ROI

Just presented at RFID Journal's RFID in Harsh Environments event on the evolving business case and ROI metrics for RFID.   The definition of "Harsh Environments" is quite broad, but it generally applies to extreme temperatures/operating conditions, remote worksites and hazardous or highly-regulated materials.   Harsh Environments span multiple industries including Oil & Gas, Chemicals, Aerospace & Defense, Healthcare and Industrial Equipment -- as shown below:

RFID Application Areas in Harsh Environments

Once we get past the definition of a harsh environment, it's important to look at the value drivers for RFID and RTLS (we support all Auto-ID modalities, so we use the terms interchangeably).   The industries listed above, by nature, have complex asset management challenges that are well suited to RFID automation.   We see three primary drivers for RFID adoption in harsh environments:

1. Cost Pressure -- where 100s of millions of dollars/euros/pounds of capital equipment impacts working capital allocation -- a reduction in redundant equipment or write-off/repair of non-working assets can have an impact on operating profit.
2. New Programs -- with new exploration projects, aircraft programs, infrastructure projects comes revenue opportunity -- and customer scrutiny.  Customers are increasingly demanding transparency for programs in progress - not just at critical milestones.  RFID visibility can help provide this transparency, leading to stronger partnerships and minimizing the risk of contract breach.
3. Operational Risk -- the only way to address compliance, audit and safety issues is to build error proofing into the process automation. 

WIP Transparency: One Reason Aerospace and Defense Firms Are Adopting RFID

An article in this month's issue of Manufacturing Engineering, 5 Trends Driving RFID Adoption in Aerospace and Defense, outlines why the complexity of A&D operations makes it a good fit for RFID process automation.

Sept 2013 Manufacturing Engineering Article

WIP Transparency is one of the key trends driving adoption of RFID in A&D.

End customers are increasingly requesting visibility into Work-in-Process, well before a product is scheduled for final assembly and delivery.  

With a customer facing process, there’s nothing to hide – for an aircraft manufacturer who provides custom variations (like protective options for law enforcement, or specialized avionics, there’s no component substitution. 

RFID tracking helps keep work orders on schedule, locating and pre-staging raw materials, components, tooling and conveyances prior to each process step, and providing WIP visibility to the end-customer.   

Here's a typical WIP tracking process automated with RFID:

Automating Work-in-Process Tracking with RFID

Customer-facing processes get attention from the highest levels.  Many manufacturers are justifying RFID automation with improved on-time delivery percentages and cost savings from rework, expedite fees, discounting and contract fines.

 

Getting Started with RFID Tool Tracking

Managing Tools & Equipment Across a Manufacturing Facility

There's been quite a bit of confusion in the the market on what RFID tool tracking really does, what sorts of tools can be tracked, and how automating tool tracking processes with RFID really works (especially when it involves ERP, MMS or Service & Maintenance systems).

Tracking Indirect Materials in the Field

Last month, we ran two instructional sessions on how to get started with RFID Tool Tracking.  Topics covered included:

• Planning tips (based on tool/equipment type, operating environment, maintenance schedule, contractual requirements and usable life)
• Best practices (based on customer deployments in Industrial Manufacturing, Aerospace & Defense, Oil & Gas and Life Sciences) 
• Process automation examples and scenarios with adjacent processes, incl. Work-in-Process Tracking

We covered a lot of ground in 30 minutes!  Online registration for the video recording is at: 

http://www.oatsystems.com/RFID-Tool-Tracking-Webinar/

RFID Tool Tracking Webinars Aug 15 & Aug 20

Whether it's indirect materials, production tooling or specialized equipment, our #1 request from customers is how to automate tool tracking with RFID.  

Our product management team is holding Tool Tracking webinars this month to discuss:

1. What RFID Tool Tracking does 
2. How companies use it in daily operations
3. How to map RFID automation to existing business processes

Information-packed, 30 minute webinars are being held at:

Thursday August 15 at 11:00 AM EST

Tuesday August 20 at 1:00 AM EST

Online registration is at : 

http://www.oatsystems.com/RFID-Tool-Tracking-Webinar/

Integrating RFID with SAP

RFID and sensor data is real-time, high volume and operational in nature. RFID technology is designed to inform and enrich systems and processes, not be an end in itself. To that end, most OAT deployments include enterprise systems integration of some kind.

Many of our customers are SAP customers as well, particularly in Manufacturing, Logistics, Aerospace and Defense.   Since an ERP system such as SAP serves as the system of record, informing these systems with RFID and RTLS can provide up-to-the minute updates for manufacturing, logistics and service operations.  

To simplify deployments, we've co-produced Manufacturing, A&D and Supply Chain webinars and deployment guides with SAP to illustrate OAT-SAP integration by specific functional area, use case and business process.  

RFID-enabled SAP in Manufacturing

RFID-enabled SAP in Aerospace & Defense

RFID-enabled SAP in the Supply Chain

Integrating RFID & RTLS Data with SAP Applications

Introducing the Airbus A350 - First RFID-enabled Aircraft

The Airbus A350 made its formal debut at the Paris Air Show this week.
It is the first aircraft to be RFID-enabled from the ground up, with approximately 3000 RFID-tagged component parts on each A350.
The RFID tags are designed to remain with the parts throughout their entire lifecycle in order to digitally store the full maintenance history - improving process automation and traceability for suppliers, airlines and MRO providers.

RFID Journal details the part marking announcement here. OATSystems has worked closely with Airbus since 2008 -- first to RFID-enable the A380 supply chain and then to roll out part marking programs for the Airbus A350.
More info on the Airbus A350 Part Marking Program, and supplier packages here.

How to Track Tools with RFID

OAT Systems Engineer Kapil Asher demonstrates how to track hand tools, tooling, specialized equipment and conveyances with RFID technology

From bearing pullers to digital calipers to composite tooling, jigs, right-to-use tools and FOD prevention, a flexible RFID tracking system has it covered.