Achieve ROI with Targeted RFID Applications - Plant Services · Achieve ROI with Targeted RFID Applications ... identifying the tagged item as a Black and Decker Cordless Drill with

Achieve ROI with Targeted RFID ApplicationsClosed Loop Systems Provide Substantial Returns

..............................................................................executive white paper

WinWare Incorporated1955 West Oak CircleMarietta, GA 30062..........................................Phone: 888.419.1399Fax: 770.419.1968..........................................www.cribmaster.com..........................................July 2009

Contents

..................CribMaster Inventory Management System | WinWare, Inc.

1 ..... RFID is Not All the Same

2 ..... Target Your Processes for Substantial Savings

3 ..... Cost Reduction Capabilities

4 ..... Taking Away the Guess Work - Making RFID Repeatable

5 ..... Growing Beyond a Single Solution

6 ..... Accu-Port Information Slick

7 ..... Accu-Drawer

8 ..... Mobile Tool Facility

It’s Not All the SameRFID


Wal-Mart and the DOD have done amazing things for the movement of RFID technology.Their mandates forced the compliance of a single use of RFID and has brought a great dealof attention to the 900mhz passive technology. It also seems that, because of these man-dates, the development of this technology has moved quite rapidly and the Gen2 releasesare proving the speed of maturity is at a good pace. RFID has come a long way in the lasttwo years and with so many suppliers being forced to tag pallets and containers, RFIDremains in the spotlight. So that’s it...we tag our pallets and boxes, but what else?

OK...in a fairly short period of time, RFID technology has developed the necessary stan-dards to function as a way to improve the logistics operations of suppliers and manufactur-ers. Hats off to EPC Global, Spec 2000 and some of the other organizations that put theirbest foot forward to make sure these standards were established. Thanks to those compa-nies who have focused on the movement of this technology to improve the logistics / supplychain operations, a new breed of asset management and indirect material management sys-tems have surfaced.

The New Breed of RFID (Closed Loop Systems)Closed loop, indirect material, asset management...these are terms commonlyused by companies to describe the means in which they have utilized thistechnology to prove real results in everyday operations. Almost every opera-tion has challenges associated with managing assets or indirect material ofsome type. It may be a large office who can’t keep control of office supplies, atechnology company who can’t keep up with their laptops or hand-held com-puters or a manufacturer who can’t keep up with spare parts or tool inventory.

A closed loop RFID system is described as a system that basically completesan entire task and is not required to have standardized information to shareamongst systems of other organizations. The system may share informationwith other internal software, but the tag will not have information embeddedinto it that will make sense to any other software system. The RFID tag of aclosed loop solution will often times have a unique identifier that will marry tomore extensive information about the item contained in a database. When thistag is viewed by RFID readers attached to the closed loop system it will makethe match and know that the ID number of 12874537 embedded on the tag isidentifying the tagged item as a Black and Decker Cordless Drill with a serial number ofBD567-9823-DR. To any other RFID system it is simply 12874537 and we know nothingelse about it.

AMR Research has stated that it finds, “companies that take a more simplified and focusedapproach to the use of RFID technology incur much less risk in implementation, receive tan-gible value, and build capabilities that give them significant differentiation from their competi-tors. - "Finding the ROI in RFID", by Jon Fontanella and Matt Bilodeau, AMR Research,October 31, 2003

1

Away with the Standards...a Simpler, More Focused Approach

Substantial Savings


Every day your employees are asked to perform certain tasks. All of these tasks have onegoal in mind, to help the company perform better. Although sometimes that goal can be lostduring everyday operations, ultimately that is the goal of every task that is asked of anemployee. If the company performs better, more profits are made and it is easier to create theworking environment that make companies successful.

Often times as a company matures, the processes that were put in place and highly focusedon in the company’s infancy, remain unchanged. So even though technology is updated, theprocesses may have never been re-evaluated to determine the potential adjustments thatmay be needed. When attempting to find areas where technology like RFID can have themost impact and provide a rapid ROI, look for the following things:

1. Identify areas in your organization that are process heavy (shipping, receiving, ordering,inventory management, etc.)

2. Start with the processes that have gone unchanged the longest.

3. Evaluate room for improvement by asking “What steps can be taken out of this project”.

4. Look for steps within the process that can be automated.

5. Specifically look for areas where Auto Identification of people and inventory will have animpact.

Identifying Areas Where ROI Will Be SubstantialEach one of the processes from above has a cost associated with it. The costs are usuallypretty easy to identify. For example if you are evaluating the process in which your employ-ees now receive their PPE or MRO items, you would look at all of the steps of the process.

Once all the steps are mapped out you can identify the cost that will impact each one. Forinstance we look at a manufacturing environment where operators are responsible for gettingtheir own PPE or MRO items when they are needed. The process is as follows.

1. Process: The operator shuts down the machine they are working on.Cost: Down Production Time

2. Process: The operator travels to a tool crib or store roomCost: Travel Time (Down Production Time and Labor)

3. Process: Get items from an unmanned storeroomCost: (poor inventory management, increased cycle counting labor time, red-ticket replenishment, etc.)

2

Identify the Need

Target your Processes for

Cost Reduction Capabilities


Cost reductions vary based on the process you are looking to enhance with an RFID solu-tion. You may be looking at managing expendable tool inventory through an automatedRFID tool crib or tracking specialized test equipment that requires a high-level of calibrationand certifications that are logged with digital signatures confirming that they have been per-formed. No matter if it is a durable asset or a piece of expendable inventory that requirescontinual replenishment, it is all inventory. As a matter of fact, if the item does not becomepart of the product you are manufacturing, it can be considered indirect material and thereare many ways to determine ROI based on different cost saving categories.

When looking at improved inventory operations, these can be broken down into 4 areas ofcost reduction.

On-HHand Inventory ReductionsOverstock Inventory ReductionsCarrying Cost (Overstock and Obsolete)

Inventory Spend ReductionsInventory Reduction Based on Usage AccountabilityInventory Reduction Based on OptimizationLost Inventory ReductionsReductions in Carrying Cost

Operational / Labor ReductionsReduced Red Ticket ShipmentsReduced Searching TimeReduced Purchasing Task TimeReduced Planning Task TimeReduced Wait TimeReduced Walk Time (Inventory Relocation in RFID Cabinets)Reduced Issue Time (Organization and Kitting)

Obsolete Inventory LiquidationRevenue Received from Inventory Liquidation

Once you have taken the management solution to an enterprise level, you begin to seethese results at each plant but additional savings become apparent by a much higher levelof management. These savings are seen enterprise-wide, in both “Hard” and “Soft” costreductions. Hard costs at this level are those costs that are directly associated with the costof inventory and “Soft” costs are generally associated with time spent by corporate man-agement analyzing spend or usage information or the travel time discussed on the previouspage of this white paper.

With the proper system and enterprise view at the corporate level you can identify weakspots across your organization. As well, you will be able to identify areas of surplus andenable transfers of indirect materials. This is a “Hard” cost savings that can sometimes bedramatic.

3

How Do I Determine if I Can Make My ROI?

how do we save money with rfid

Making RFID Repeatable


With an emerging technology there are going to be early adopters who struggle through“science projects” to achieve results. Typically there are technology companies who take onthese science projects and learn a little more every step of the way. There are also thosewho find a successful means of utilizing this technology and those companies are the onesyou should look for when deciding to venture into an RFID project. Like any processchange, it is important that your company take complete ownership of the project and man-age the change internally. In these early days of RFID asset tracking, it is important thatyou look to partner with a company who can:

- Be the single partner for the project - Provide a complete solution for the task at hand- Provide a solution that is easily expandable plant-wide and enterprise wide- Provide expertise in a niche use for RFID- Prove a successful implementation history- Prove ROI from other installations- Uses RFID to enhance a technology shortcoming or human process

Literally Plug-n-PlayThose are words I bet you never heard being applied to RFID, yet it is possi-ble. I know it seems like an RFID solution that was literally “plug-n-play”should be in a Ripley’s museum somewhere but instead they are being usedby companies like ATI Wah Chang, Crown Equipment, the USAF, Motorola,Bassett Industrial and others to rapidly improve processes. They do this with-out needed trial periods and an average installation time of two days. How canit be? They have implemented a COTS (commercial off the shelf system) thatserves a specific purpose. These solutions are built into products that aremanufactured to perform a specific task. Portals to manage indirect materialand tooling, cabinets to also manage these indirect materials, tools or mainte-nance spare parts at point-of-use or RFID enabled modular drawer systems used to man-age FOD processes.

These solutions are driven by a robust software package and were designed to providerapid go-live and expansion to manage indirect materials and assets within manufacturingand other productive environments. Typical inventory items being managed in the “Plug-n-Play” RFID devices are MRO items, power tools, safety products, expendable cutting tools,cleaning supplies, toner cartridges, abrasives, gages or calibrated instruments, costly testequipment like oscilloscopes, IT inventory, batteries and spare parts. Using RFID for thistype of inventory has proven a very rapid payback and is a very good use of the technolo-gy.

4

Look for Successes in an Emerging Market

taking away the guess work

Growing Beyond a Single Solution


Why Implement a Corporate-WWide SolutionBack to the basics. The ultimate leverage you have when negotiating contracts with suppliersis order quantity. You certainly stand a greater chance of getting a better deal on 70,000 pairsof safety glasses rather than 10,000 pairs of safety glasses. Do you have a system in placewhere you can confidently attempt to establish corporate contracts based on actual usage fig-ures (not order figures) of each of your facilities? Do you have a single system that hastracked usage, replenishment, maintenance tasks and optimized inventory levels for each ofthose facilities? Does this system enhance processes and accurately monitor these indirectmaterials or assets with the use of RFID?

Wouldn’t it be nice to be able to run a usage report on every common mro item, tool, comput-er, or lubricant of all of your facilities? If you can clearly see actual usage of like items acrossyour entire enterprise, you can negotiate contracts with confidence that you are not over pur-chasing your indirect material or needed assets. All of this inventory should be linked by acommon item number and be pushed to a data warehouse so that you have enterprise widereporting at your finger tips. Optimum order quantities, optimum inventory levels and enter-prise-wide transferring and reporting...an incredible impact on your bottom line.

5

continuous improvement

Single Location Contract10,000 Pairs of Safety Glasses Yearly = $6.00 per pair25,000 Carbide Inserts = $43.50 per 1025,000 Drills = $2.00 each5000 Vice Grips = $14.00 each

Corporate Contract 70,000 Pairs of Safety Glasses Yearly = $3.50 per pair175,000 Carbide Inserts = $33.50 per 10175,000 Drills = $.95 each35000 Vice Grips = $9.00 each

Contract Savings$420,000 vs $245,000 = $175,000 difference$761,250 vs $586,250 = $175,000 difference$350,000 vs $166,250 = $183,750 difference$490,000 vs $315,000 = $175,000 difference

TOTAL COST SAVINGS = $708,750 with 4 products

VS.

=

CribMaster Accu-PortImagine your employees walk up to a caged area containingtools, MRO items, safety products, maintenance parts or anyindirect material used to keep your facility going. As they enterthe doorway, their name badge is read from wherever they mayhave it on their person. Their name sounds off audibly, the dooris unlocked (given they have permission to enter the crib) andthey enter to retrieve their items. The employee gathers all theneeded items and they press the exit button to unlock the doorand walk back through the Accu-Port which records the trans-action for each item as they walk away.

Your employees don’t have to scan, vend or even concernthemselves with any aspect of retrieving items other than carry-ing them through the port. Everything is done automatically, inreal time and will continue to contain all of the features thatCribMaster applies to any inventory item. Serialized items,durable items, expendable items, kits and assemblies, mainte-nace parts, or inventory assigned to a work order...it’s justanother way to issue items to employees and costcenters...except this one is hands free!

The CribMaster Accu-Port brings many functions,features and benefits to your shop floor:

Touch screen control allows for non-auto ID log in

Electro-magnetically controlled door with a lock that withstands600lbs of pressure

Digital photo capture available for improved management

Multiple cage sizes and label packages

Easily expandable cage sections to increase storage capability

Automatic RFID identification of employee and items

Ability to carry an entire bin or cart of items through the Accu-Port and accurately track every item

Durable 100% made in the USA 16 gauge steel contruction

170+ standard CribMaster reports

Custom report configurable with Crystal Reports

Reduce mis-use of inventory

Eliminate pilferage

Improve inventory accuracy

A c c u - P o r t R F I DR F I D A u t o m a t e d T o o l C r i b

H e a d q u a r t e r s : 1 9 5 5 W e s t O a k C i r c l e - M a r i e t t a , G A 3 0 0 6 2p h o n e 8 8 8 . 4 1 9 . 1 3 9 9 f a x 7 7 0 . 4 1 9 . 1 9 6 8 - w w w . c r i b m a s t e r . c o m - s a l e s @ w w g a . c o m

“The most advanced meansof managing indirect materi-als available today! Totallyhands free operation!”

Call today to benefit from the

CribMaster Accu-PortTM

888.419.1399

CribMaster Accu-PortThe system uses CribMaster Software and may be used in front of a caged/fenced area or in front of a tool room / storeroom door. The Accu-Port reads passive RFID labels or tags, which are applied to the inventory with the 3 RFID readers,which are mounted in the walls of the Accu-Port. Any item that has the label attached will be read and the transactionrecorded with CribMaster software as it passes through the “portal”. The type of item is not important, only the tag affixedto the item is used to determine what item was removed, returned, or restocked inside the crib. Many types of inventorycan be managed effectively with the CribMaster software including; expendable, durable, serialized, gages, reworkable,hazmat, etc. CribMaster has auto replenishment features and can communicate with most purchasing systems via a flatfile export.

• ATR - Automated Tool Room - Touch Screen included - includes one Admin module• 500 RFID Tags included - these are reusable and may be assigned to other items• RFID tags may be affixed to individual tools directly or smaller items may beplaced in RFID containers/packages

(reusable)• Each employee would have an RFID badge - as they come through the portal into the crib, they will automatically be wel-

comed by name and the item with the RFID tag taken from the crib will be tracked automatically by CribMaster• Technical Support for one year is included • CribMaster Cameras also available -- images may be viewed real-time or viewed later as stored images directly from

your PC, as an added security measure. CribMaster Cameras may be configured for images to be taken as often as every 30 seconds

• Dimensions 67 1/4"(w) x 27"(d) x 90"(h).

A c c u - P o r t R F I DR F I D A u t o m a t e d T o o l C r i b


CribMaster Accu-DrawerImagine your employees walk up to a cabinet that stores tooling,maintenance parts, kits or even haz-mat materials. Like all of ourCribMaster point-of-use devices, the employee is required to identifyhimself or herself. The drawer unlocks using an electro magneticlock and inside are the items they need to complete their task. Eachitem is identified with a passive Gen2 RFID tag or the location ismonitored with a patent pending RFID switch. When the item isremoved, inventory is automatically adjusted and monitored throughCribMaster.

The Accu-Drawer is a great solution for managing kits at point-of-use, tracking the usage of durable items, or tracking maintenanceitems to work orders and tasks and monitoring of inventory in FODcritical areas. There is no inventory to scan or transactions to log.Transactions are automatically recorded when inventory is removedfrom the cabinet and when items are missing from the cabinet thetouch screen displays “items out” on the ATR screen, making FODchecks easy, fast and accurate.

The CribMaster Accu-Drawer brings many functions,features and benefits to your operation:

- Simple “plug and play” self contained RFID device (COTS)

- Touch screen control allows for User ID log in

- Configurable drawer sizes allow for multiple product sizes

- Total kit tracking and replenishment process tracking

- Lot number and expiration date tracking and notification

- Durable 100% made in the USA 16 gauge steel construction

- Direct e-mail or EDI communication with suppliers

- 170+ standard CribMaster reports with scheduling

- Custom report configurable with Crystal Reports

- Complete work order system and ability to track inventory towork orders

- Item reservation and predictive ordering

- Reduced mis-use of inventory

- Improved inventory accuracy and FOD processes

A c c u - D r a w e rR F I D P o i n t - o f - U s e D i s p e n s i n g


A c c u - D r a w e rR F I D P o i n t - o f - U s e D i s p e n s i n g


Available Sizes

The Original Accu-Drawer8 Drawers72.5” Tall x 46.25” Wide x 28.5” Deep

The Accu-Drawer Mini6 Drawers64” Tall x 46.25” Wide x 28.5” Deep

The Accu-Drawer Mobile8 Drawers72.5” Tall x 30.25” Wide x 28.5” Deep

The Accu-Drawer Mini Mobile6 Drawers64.25” Tall x 30.5” Wide x 28.5” Deep

Included Accessories

8 Drawer Units (Original & Mobile)

RFID Tags on Switches 200Foam Screws 500Blue Foam Strips .5 x .75 x 48 30Blue Foam Strips .75 x .75 x 48 12

6 Drawer Units (Mini & Mobile Mini)

RFID Tags on Switches 150Foam Screws 400Blue Foam Strips .5 x .75 x 48 25Blue Foam Strips .75 x .75 x 48 10

CribMaster Automated MTFAre you a distributor who needs to supply tools and other sup-plies during a turn-around or during a construction project? Doyou need a better way to control tool usage and establishaccountability during these events? Need more supplies andtools and you are out of floor space? Need more floor space tomanufacture and you can’t because the tool crib or supply roomis in the way?

We now have the automated solution that will provide you withmobility and thanks to CribMaster and RFID will provide youwith all the control and accountability you require as an end-user or supplier. The CribMaster Automated MTF uses theCribMaster Accu-Port RFID technology combined with the bestwireless connectivity available to enable a fully functional,unmanned, mobile tool facility that provides a high level ofaccountability and accuracy. If you have problem controllingtools and supplies on a job site, the CribMaster Automated MTFis for you.

The standard CribMaster Automated MTF allows youto:

Control tools and supplies during turnovers or shut downs

Provide a high level of accountability for users

Provide accurate usage reports

Automate tool issue and return without personnel

Easily locate missing items

Eliminate pilferage

Reduce stockouts with automated purchasing

Provide accountability for contractor activity

Provide 170+ standard reports

Monitor and control calibrated equipment

Monitor costs by user defined cost centers

Control access based on permissions

Automatically notify vendors of low inventory with critical alerts

Monitor expendable, durable, and serialized inventory

Manage kits and their replenishment

Assign tools to jobs or tasks and report on mis-used inventory

and much more...

A u t o m a t e d M T Fm o b i l e t o o l f a c i l i t y


call today 888.419.1399



Winware Mobile Tool Facility Specs

Pre-Owned 53ft TrailerReconditioned refrigerated unitsSide interior walls-new fiberglass reinforced polyRear interior doors-new white aluminum sheetingWhite aluminum portal wall3/4” cushioned, non-skid rubber flooring

Safety FeaturesIlluminated emergency lightingFire/Smoke detectorBattery back-up exit signsFire extinguisherMSDS safety box

Shelving Units (8 Units with Base)Dimensions- 84¨ (H) x 36¨ (W) x 24¨ (D)3¨ high bin fronts500lb weight capacity per shelfWelded sidesBolt-top and bottom shelvesClipped middle shelves

Side DoorDimensions - 7’ x 3’Spring loaded coilAccess point for adjoining trailer

StepsDiamond plate aluminum stepsNon-skid treadSafety railing

HVAC SystemPackage unitGalvanize steel ductworkCooling-1.5 tonHeating-5kwDigital thermostat

Electrical SystemPowered by 200 amp service(2) 20 amp duplex GFCI receptacles(13) 4ft. safety shielded, surface mounted lightsElectrical wiring in sealed pvc conduit

Computer Processing Units (2 Units)Primary and Secondary Units Rugged steel chassisLocking front doorSide cooling fans w filter

Ruggedized KeyboardEnvironmentally sealed against splashing liquids, dust and dirtABS Polycarbonate frame with 8-32 mounting studsIntegrated touchpad pointing deviceExhaust Fan located in computer cabinet Thermostat controlled

Network ConnectivityWireless network and internet connectivityNetwork data cable access portJSR Trailer RF Shielding System

UPS Battery Back-up SystemProtects CPU and electronic components against blackouts, voltage fluctuations and transient surges2200 VA/1600 watt output capacityE-mail notification of power problems

Video Surveillance SystemIP Dome Camera-captures still images of employees entering and exiting portalBox Camera-located in nose of trailerHigh resolution color camerasRemote, pan/tilt/zoom digital controlReal-time streaming videoE-mail alert and notification systemNetwork remote connectivityMotion sensor detectionAudio component

Audible Door Alarm SystemAudible alarm is activated when portal door isdisengaged or propped openE-mail notification alert sent to assigned personnel

Mobile Tool Facility-Options

Additional Shelving UnitsDimensions- 84¨ (H) x 36¨ (W) x 24¨ (D)3¨ high bin fronts500lb weight capacity per shelfWelded sidesBolt-top and bottom shelvesClipped middle shelves

Metal Peg Board20 gauge steelBaked-on rust and scratch resistant finishSlot and peg hole panels

Plastic Bins (variety of sizes available)

Vidmar CabinetsReconditioned (variety of sizes available)

Heavy Duty Work TableHoist and Rigging Rack System

Customer Signage (Decals)Company name/logo

MTF Floor Layout



Driver’s Side Wall

Passenger’s Side Wall

Standard MTF Photos

Inside the trailer looking towards the portal.Notice the RF Shielding fences on the right andleft

Inside the trailer looking down the shelving ofthe passenger’s side wall

View of interior lighting View of surveillance camera mounted on theinside of the portal

View of back of trailer with portal

View down driver’s side wall

Documents

Achieve ROI with Targeted RFID Applications - Plant Services · Achieve ROI with Targeted RFID Applications ... identifying the tagged item as a Black and Decker Cordless Drill with