RFID in O&G - Multiple Use Cases for Multi-Faceted Operations

When asked by an Oil and Gas firm "Why Should We Use RFID?" our conversation ultimately leads to process challenges within the business.  Oil and Gas firms are complex entities, that may span operations as diverse as Exploration and Production to Petroleum Refining to Retail.   

So sometimes an Oil and Gas firm can be like a Chemical company, a Consumer Goods Manufacturer, a Retailer, a Mining company.  

We summarized some of the facets of an O&G firm (and some of the most common use cases specific to RFID) in the table below.

We'll keep refining (no pun intended) the list of use cases as we go along.

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. 

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/

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.

Redefining Tool Tracking for Equipment and Indirect Materials

Tools = Tooling = Indirect Materials = Conveyances = Equipment

Every industry and every business function needs to track capital equipment, whether it's used for service, manufacturing or  distribution operations.

For service providers in Healthcare, Aviation, Utilities and Transportation, the cost of tracking equipment is not just related to the value of the asset, but how often it is needed. A missing wheelchair or infusion pump can compromise patient care. A missing towbar or test kit can result in flight delays. 
For manufacturers - particularly for those with complex processes , production equipment and tooling is highly-specialized, single-sourced and difficult to replace. Misplaced or out-of-spec equipment can derail a production schedule.
For logistics providers - conveyances and reusable transport items (RTIs) must be carefully managed - missing conveyances make for missed shipments.

On the OATSystems website we have separate sections for equipment tracking and tool tracking based on how indirect materials are defined in different industries.  

When building our "asset wall"  and asset tracking for RFID Journal Live this year, we used sample assets from healthcare, manufacturing, aviation and transportation.   In this case, we didn't need to define "tool tracking" in a thousand words - we had the pictures, (of surgical trays, medical supplies, infusion pumps, autoclaves, ventilators, conveyances, bearing pullers, digital calipers, roll cages, composite tooling...) instead.

Tips for RFID Tool Tracking Deployments

A few deployment tips we've learned from RFID Tool Tracking deployments:

Before you get started: 

1. Determine What Types of Tools Need to Be Tracked (hand tools, indirect materials, conveyances, right to use tooling)
2. Figure Out Exactly What You Need to Know About the Tool (beyond its location)
3. Know which Adjacent Processes are Impacted by Tool Tracking  (you may be able to gain additional efficiencies and/or secure additional budget for your project)
4. Understand Whether Tracking Data Needs to be Shared With Your Enterprise Systems (ERP, MRO, Program Mgt, MMS, etc).  You may be able to use some of your enterprise systems budget as part of your project.

More details, and a tool tracking planning guide