Rfid roi-sme pilots presentation and results ueapme august 2012

RFID
–
ROI
–
SME

1

Pilot RFID Deployments and ROI Studies for
SME using Open Source Middleware and
Tools

ICT-PSP No. 250438
The Project’s Pilots, Achievements, Best
Practices and Lessons Learnt
August 2012

The project
2

•  RFID-ROI-SME is a project co-funded by the

European Union s ICT Policy Support Programme as
part of the Competitiveness and Innovation
Framework Programme – CIP ICT-PSP

•  Coordinated by UEAPME

•  Project lifespan: March 2010 – May 2012

The Consortium
3

UEAPME (Coordinator) with:

-  6 ICT solution providers from 6 EU countries

-  10 end-user SMEs from 6 EU countries

-  4 EU national Associations representing SMEs from
the ICT sector

-  The Athens Institute of Technology (AIT)

Project Objectives
4

•  To boost the adoption of RFID technology by SMEs

•  To create business opportunities for innovative EU RFID
solution providers

•  To demonstrate tangible and measurable benefits of RFID
technology across many different sectors and business
cases: increase in the Return on Investment (ROI)

•  To disseminate the project results to SME communities in the
form of case studies, best practices and blueprints

The activities

5

A practical approach with the implementation, coordination and

evaluation of 8 RFID pilot projects in 6 European countries:
-  Bulgaria
-  Denmark
-  Greece
-  Italy
-  Spain
-  United Kingdom

Targeting SMEs of different economic sectors
Each pilot has been deployed by an SME RFID systems
integrator (solution provider) for an SME end-user, and it
has been operational for about 12 months.

The Pilots
6

•  Logistics and trade management – Bulgaria
•  E-ticketing and tourist relationship management – Denmark
and Bulgaria
•  Automated document tracking and archiving – Italy
•  Intelligent manufacturing and manufacturing quality control for
the packaging industry – Greece
•  Supply chain management for the apparel industry – Greece
•  Security in the building and construction sector – Italy
•  Product management for the plastic industry – Spain
•  Security management system – United Kingdom

Pilot 1: the Partners
7

End user: Cablecommerce, the leading cable trading and
cable producing company in Bulgaria.
Solution Provider: Balkan Services is among the leader IT
consulting companies in Bulgaria.
Purpose of the Pilot: Large drums of cable rolls and smaller
inventory are not adequately accountable. Due to lack of
information about quantities, often large coils of cables are not
used efficiently. Objectives of the pilot are to improve the
storage management system of Cablecommerce and to
improve the logistics of the company.

Pilot 1: The Layout
8

!

Pilot 1: Business Evaluation
11

Pilot 1: Key Performance
Indicators (KPIs)
12

KPI Value

KPI Value Target Increase
KPI Name
March
October 2011
Expected

2011

2305 t.mts. The total length of Left
(%) Utilization of Cables
2562 t.mts.
10%

Overs decreases with 11 %.

Faster Order Completion
20-45 min.
10-35 min.
50%

This could not be measured before the
Be$er
Roll
Cu+ng
15 sec.
100%

system was implemented.

2-10 min. (the improvement is due to the
Faster Location of the Right Drum
15-30 min
30%

implemented warehouse place function)

Pilot 1: Major issues
13

•  Radio connectivity and coverage

-  Large area to be covered – especially outside, heavy industrial
environement
-  Stabilising the radio environment, acceleration of comunication
protocol
•  Relative slowness of the system – New versions of the system
were released
-  Speeding up the processing for every line of transaction
-  Accelerating the processing of a document – the document is
transformed as object in the software server and it is send to the
mobile computer for processing .

14

•  Difficult readability of tags due to heavy outdoor conditions
- Protective plastic cases were put on

Pilot 1: Lessons learnt
15

•  Overcoming metal interference from cables and heavy outdoor
industrial environment

It proved to be more difficult to resolve than expected. Tags have to
be read from a closer distance (HF technology used)

•  Implement large scale project
In terms of area radio coverage – make sure the area is covered and
operations in mobile computers are performed successfully

•  RFID mobile computers are used mainly outside and in sun –
screen is not visible in the sun
Sun proctection screens or screen shades to be used

Pilot 2: The partners
16

End user: DUF-Rejser is a travel agency specialised in youth
travel. The travels have three destinations: one in Spain and
two destinations in Bulgaria.
Solution Provider: RFID-Specialisten is a RFID solutions
provider for industrial and tourist applications. It also operates
as consultant for the design of RFID installations.
Purpose of the Pilot: The main objective for this pilot is to give
the guests a better service by managing the access to events
and excursions with the RFID application.

18

Indicators (KPIs)
19

KPI Value
KPI Name
March
October 2011
Expected

2011

Average (%) of Sales Increase per Destination
none
15
10%

Reduction of Irregularities in Accounts and Reports
none
30
20%

Reduction in administrative cost per sold travel
none
30
20%

Increase in staff motivation
none
10
15%

20

•  Difficulties in the distribution of the RFID-ticket

•  Mobile settings vary in different countries

•  NFC devices still are not technology mainstreams

•  DUF’s decision to use 2 separate booking systems for the
test

Pilot 2: Lessons learnt
21

•  Social media must be better exploited, interaction is
important

•  The security for cloud and mobile app must be better
addressed

•  Be updated with trends in standards and markets

•  Go for the technology and device mix you believe in

•  The project brought an easy to use ROI calculator for new
RFID projects and an easy to use system security tool

Pilot 3: The Partners
22

End user: Koskinidis provides integrated packaging solutions,

which are tailored to their customer needs. Its products include
ground stands, stands for different types of confectioneries, food
packaging, Cylinder-shaped packages and more.

Solution Provider: SENSAP’s main activities are: integrator of
AutoID/RFID solutions, customer base of SME manufacturers.
Target domains/applications: manufacturing, logistics, supply
chain management.

Purpose of the Pilot: to apply RFID technologies for the
automated identification and traceability of the company’s
manufacturing processes, comprising source materials, machines,
as well as finished products.

25

Indicators (KPIs)
26

KPI Value
KPI Name
March
October 2011
Expected

2011

Accurate Forecasting of Required Materials
3%
4%
10%

Accurate Estimation of Parameters contributing to the Finished Products Cost
5%
6%
15%

Improved Inventory Accuracy / Reduction of Inventory Errors
60%
80%
100%

Improved Utilization of Manufacturing Assets (Materials, Machines)
5%
8%
10%

Pilot 3: Major Issues
27

•  KOSKINIDIS employees were not satisfied with the
deployment and use of mobile scanners

-  Need for automatic data acquisition
-  SENSAP opted for the replacement of mobile terminals with
multimodal stations equipped with RFID and other sensors
-  The station enables the collection of data about tagged
production resources

•  Integration with ERP was deemed important:
in order to convery utilization data thereby boosting cost
calculation and quality control

Pilot 3: Lessons Learnt
28

•  Tracking, tracing and documenting manufacturing

processes is a privileged domain for the application of
RFID technology:
-  No need to tag individual products (low tagging costs)
-  Many benefits stemming from the fact that line-of-sight is
not needed thus allowing automatic operation
-  Manufacturers should be positively inclined towards the use
of RFID for process documentation and tracking

29

•  User interfaces and the HMI (Human Machine Interface) are
very important aspects of
an ICT solution for
manufacturing:
-  Plant personnel are not necessarily acquainted with the use of
computers and ICT
-  User friendly, pervasive and non-intrusive HMI needed
-  The station based solution is much more natural and ergonomic
comparing to mobile RFID readers
-  There are RFID enabled systems rather than RFID
systems: RFID enabled systems may be considered
Industrial Automation

30

•  Integration with enterprise and manufacturing systems and

applications (such as ERP/MRP) systems is important:
-  Need to exchange data with the ERP/MRP of the company:
Single source of Master Data is required.
-  RFID enabled systems equip ERP installations with data-
collection automation that boost documentation performance.
-  Collaboration with the ERP vendor can introduce significant
overhead to the implementation of the solution.

31

End user: STAFF SA is an apparel manufacturer (denim type

products) since 1992, which operates a state-of-the art distribution
center in Larissa (Central Greece), with manufacturing plants in
Bulgaria, Romania, Italy, and China.

Solution Provider: SENSAP’s main activities are: integrator of
AutoID/RFID solutions, customer base of SME manufacturers. Target
domains/applications: manufacturing, logistics, supply chain
management.

Purpose of the pilot: to involve the coordination of a supply chain
comprising manufacturing, logistics and retail processes, in a wide
area of transnational environment. Therefore, the pilot will allow the
SME to evaluate interoperability aspects in the scope of inter-
enterprise scenarios.

Pilot 4: The Layout
32

RFID/AutoID Printer
(Smart POS)

STAFF E-Shop

Internet IMPINJ Speedway
(Smart POS)
LAN IMPINJ ELO 1715L Touch
Switch Speedway Screen
(E-Sales Man)

ELO 1715L Touch Screen
S-Box Platform IMPINJ (Smart Mirror)
(Sun Ultra 27) Speedway

WiFi
STAFF Shop
ERP Management Console
Intermec CK31 Mobile
(legacy) (for S-Box)
Terminal
SUN Ray 2 Thin Client
!

36

Indicators (KPIs)
37

KPI Value Target
KPI Value
KPI Name
March Increase
October 2011

2011
Expected

Reduction of Stolen Items
105
48
50%

Higher Inventory Accuracy
85%
100%
50%

Time to Return Items
15
3
40%

Reduction in the Average Time required for Customer Check-out
8
2
100%

Stock Reduction in the Retail Shop
N/A
+
50%

(difficult to estimate.Can only say a much better sell out in Items with Rfid)

38

•  Reading Accuracy and Reliability at dock-doors between
store and warehouse

•  Difficulty to test discount & marketing policies at a large
scale due to lack of a critical mass of customers with RFID
loyalty card

•  Safegurading privacy – enforcing technical and non-
technical measures for privacy management

•  Item-level tagging cost

39

•  The more processes that become RFID enabled the more

the high recurring cost of consumables is alleviated.
RFID is considered an infrastructure

•  Privacy Issues are important, but a number of technical
and non-technical measure exist to alleviate them
The EC framework for PIA assessment is a starting point

•  Among the unique capabilities provided by RFID is the
integration of e-shop functionalities within the operations
of a conventional retail shop

40

End User: CNA Servizi Modena offers services to about 9.000
enterprises associated to CNA Modena, the association representing

artisans and SMEs in the province of Modena. CNA Servizi Modena’s
services cover legislation, technical standards, quality, new business
consulting, business and management training, etc.

Solution Provider: SATA is a company that studies, designs,
prototypes and realises innovative and advanced ICT solutions for
different application domains, particularly for interoperability, logistics,
enterprise networks and document management.

Purpose of the pilot: to achieve a satisfactory RFID enabled
electronic document and dossier management, applicable to a variety
of document classifications and related handling processes. The pilot is
based on the application of the RFID technology to the tax
assessment process.

Pilot 5: The Layout
41

wi-fi

WS

WA
GUI

44

Indicators (KPIs)
45

KPI Value
KPI Name

March
KPI Value
October 2011

Target Increase
Expected

2011

Reduced Interactions with Customers
15 minutes
5 minutes
10%

Reduced time to prepare a folder tax computation
1 minute
< 1 minute
15%

Reduced time to search/find a folder
2 minutes
0,5 minute
30%

Faster Inventory
20 minutes
few seconds
100%

Accelerated Completion of the Tax Declaration Process
2 hours
1,2 hours
50%

46

•  Full replacement of the client application

-  Different operating system, some middleware problems
-  Not enough time to rebuild the Aspire interface
•  GPRS connectivity
-  Additional WiFi access point has to be installed
-  To ensure acceptable response times
•  Multiple readings
-  Need to test different power settings
-  Need to read the long-term archive (overcrowding of folders)
•  Different tax models
-  730 and IMU (new tax) instead of Unico (RETE)
-  No specific problems met, the checklist is flexible enough

47

•  Real application vs testing application conditions

Performances in multiple tag readings different from vendor
declarations
•  Specific application design for mobile devices
Limitation on computational capacity, connenctivity, small
screen and keyboard size require application re-engineering
•  Coverage of different doc management processes
-  The management of a new tax (IMU) generated trust in the
system
-  Because of the very few adaptations needed
•  Support to all doc management operations
-  Calendar management and meeting tracking were
appreciated by the users and facilitated the system uptake

48

•  RFID useful only in certain doc management scenarios

-  Not applicable to single documents (at reasonable prices)
-  Very good for inventory and archiving of document
collections (folders)
-  Very good in conjunction with a (web) application covering
the whole user process
-  As an opportunity to increase office automation

49

End User: BRIDGE129 designs, develops and deploys systems

for smart control for the industry, the infrastructures and the
services. It is taking into account regulations and highest quality
standards.

Solution Provider: SATA is a company that studies, designs,
prototypes and realises innovative and advanced ICT solutions
for different application domains, particularly for interoperability,
logistics, enterprise networks and document management.

Purpose of the pilot: identification of intruders entering the
building yard through accesses 10-15 meters wide and without
physical borders

53

Indicators (KPIs)
54

KPI Value
KPI Name
March
October 2011
Expected

2011

Improved Speed/Timeliness towards recognizing authorized people
> 30 secs
1-3 secs
200%

Improved Speed/Timeliness towards recognizing authorized machines/trucks
> 20 secs
1-3 secs
200%

Reduction in notification times of the control room
> 30 secs
1-3 secs
200%

55

•  Box insulation

New box and different assembly method

•  IR/MW false positive rate
-  Higher than expected
-  Different lens and positioning

•  Video recording vs RFID graph synchronization
Tuning of the sw synchronization module to support high network
load

56

•  RSSI graph visualization

Increased resolution (up to 640x480) to show more than 3 tags a
time

57

•  The smart pole works well

After one year and a half the sensor response is very good

•  Surveillance is easier with the RFID application
Operators are satisfied after the fine tuning of the application

•  Solution adaptable to other open air contexts
-  Manufacturing industries open air warehouses
-  Plant installation & maintenance operations in open spaces

•  A project oriented approach is needed
RFID active technology not yet mature and standardized

58

•  A lot of possible scenarios for the
future
-  The RFID Application Centre of the Milan Politecnico stated
that: “it is a practical application of multiple signal processing to
real life, actually a step towards Internet of Things
-  Contacts with commercial customers confirm that in the
medium-term this kind of application will be appreciated

59

End user: PICDA is a company whose principal activity is
manufacturing plastic bags of polyethylene of high, medium and low

density. PICDA is currently working with innovative technologies to
improve the degradation of plastic material.

Solution Provider: Alu Group is a company dedicated to software
consulting with strong interest in highly innovative issues, especially new
technologies to be applied to industrial manufacturing process and
production phases.

Purpose of the pilot: to build an interpreter of RFID pulses capable of
extracting meaning of the signals received in the context of a warehouse
of the plastic film industry. The interpreter must be integrated into the
corporation ERP in order to maintain the warehouse organized.

63

Indicators (KPIs)
64

KPI Value
KPI Name
March
October 2011
Expected

2011

Reduction in the Number of Bags that must be destroyed
850.000 bags
200.000 bags
100%

(i.e. featuring wrong materials)

Reduction in the Number of Manipulation Mistakes (i.e. coils
150
60
75%

taken by mistake)

Reduction in the Number of lost coils (coils that cannot be
25
9
75%

found)

Reduction in the % of Orders out of Time
10%
9%
20%

65

•  Low availability of Picda personal and resources

The sector is suffering a big transformation because of
hypermarkets’ new policy on plastic bags, coupled with the current
economic crisis.

•  Lack of backup hardware devices.
It cannot be tested when it is in use and can be exposed to
failures.

•  Continuous changes in production processes and software.
Changes in production software have been a rule till the beginning
of the project. Picda was not only implementing an RFID
technology project, but a production redesign with new processes
and software.

66

•  RFID technology must be tested on the production

environment

•  RFID applications needs to be very configurable.

•  It’s difficult to package a product that could be sold as plug
& play.
RFID technology needs to be considered from a project approach
with its associated implementation time and risks.

•  The apparently “same” product can have a completely
different behaviour only because of a hardware or firmware
update. The same applies to tags.

67

•  An RFID project in a manufacturing SME is hard to

implement because of changes in company’s processes.

•  RFID technology have a enormous potential in optimizing
processes and reducing operational costs, but it is important to
consider the main benefits of the technology related to other
substitutes technologies: no need of line of sight and the ability to
read a lot of id’s in a “single shot”.

•  Even though RFID technology can have a deep impact on
operational costs in warehouses, the actual crisis context
make it difficult to sell and implement these kind of projects.

68

End user: Sovereign Security is a security company specialising
in Manned Guarding and patrols.

Solution Provider: Sero Solutions is a wireless systems
integrator based in the UK with a focus on Mobile technologies.

Purpose of the pilot: electronically record the location of a
security guard at a given time and location using a NFC tag and
NFC handset, sending alerts from the system in a correct fashion
and in the correct timescales.

71

Indicators (KPIs)
72

KPI Value
KPI Name
March
October 2011
Expected

2011

Improvement in the Timeliness of Alerts
10
30
20%

Time to generate Electronic Timesheets
10
80
80%

Overall Customer Satisfaction
40
60
50%

Better Visibility of Service Level Agreements (SLA)
20
70
50%

73

•  Incorrect display of information on mobile device

- Messages that were supposed to be displyed once were
displayed multiple times
- User clocked in a task list was not the correct one for the actual
site.

•  Mobile signal issues
-  NFC handsets were not connecting to a GPRS/3G signal
-  Information needed to be stored locally on device and sent later
once a signal was established.

74

•  Incorrect information on reports

Some of the guards did not enter the required information from
time to time which sewed some of the reports

•  Physical issues with the tags:
Some of the tags being used had to replace from wear and tear
from outdoors use

75

•  The majority of issues with the system were related to the

usage behaviour rather than technical issues: Good training
and governance required

•  Need for a number of checks against technical pre-
requisites: e.g., network signal for mobile devices, power points
for mobile device charging, correct placement of tags

•  Training material should be provided in paper format, as a
quick reference guide

•  Backup systems should be in place in the event of a mobile
signal failure.

76

•  All information generated should be reviewed and

authorised before being submitted in final reports

•  Reports should be generated automatically and emailed to
supervisors who can see a summary of the information

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