3. In July 2009, Booz Allen Hamilton partnered with large federal agency to evaluate the feasibility of implementing RFID technologies to improve inventory management The agency has a number of key challenges that significantly impacted the performance of inventory management across the agency Physical inventory process requires a 9 month effort and another 3 month of reconciliation Nearly quarter million accountable assets are on two dozen campus within 400 buildings that contain 12 million square feet of space Receiving processes provide loopholes to not record assets appropriately Inventories submitted contain assets previously assigned to other organizations Inventories submitted reveal ‘lost’ assets that are not being reported To address these challenges, we engaged a cross-functional team with expertise in supply chain management, RFID technologies and economic business analysis The project team employed a three (3) phase approach to conduct the study Phase 1: Baseline Assessment Phase 2: “To-Be” Environment Phase 3: Economic Benefits Analysis
11. Requires action to determine if asset should be accounted in inventory management system or tagged as Not Accountable9 9 9 9 * Number denotes inventory year The annual inventory is an enterprise function while assets are managed by sub-agencies The annual inventory is used to validate asset information and resolve data discrepancies The color and number system offers a visual reference as to the status and year inventoried There are exception handling processes for “Double Decal” and “Detached Decal”
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13. Reduce the time and resources required to conduct the inventory of accountable property
21. Assign a unique property tag to each piece of accountable property and store detailed information in inventory management system
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23. For each option, we defined the key attributes that would guide the selection process for the “To-Be” environment inventory process 1 2 3 4
24. Based on business requirements for the “To-Be” environment, DLS selected the Location Sensing Inventory solution Low Labor High Infrastructure High Labor Low Infrastructure Low Labor Low Infrastructure Low Labor Mid Infrastructure High Labor Mid Infrastructure Relative Cost Security Security Property Management Benefits (out of scope) Property Benefits Illustrative New Services for Property Mgmt. Security Precise Location Real-Time Inventory Benefits Full Automation Inventory Benefits (in scope) Significantly Faster Process Faster Process Visual Inspection Implementing central receiving and RFID technologies significantly reduces requirements for visual inspection, physical reconciliation,and capturing of shortages/overages. Existing Benefits Reconciliation Shortages/Overages 1 2 3 4 RFID Assisted Inventory Location Sensing Inventory Entrance/Exit Inventory Random Sweep Inventory Physical Inventory Inventory Solutions Increasing change to current inventory process
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26. Using a fixed reader at known positions, property location is detected as it moves about a building
37. Shortcomings: Many carefully placed reference tags may be neededConclusion: Additional cost without significant added value Asset Tag Antenna Reference Tag
42. Cost allocation to organizational entitiesFacilitates development and prioritization of a detailed quantitative benefits (performance measurement) analysis Value Structure Allows for a high-level view and Rough Order of Magnitude (ROM) estimate of the lifecycle costs to develop and deploy solution Cost Element Structure Identifies known factors that may impede the ability of an initiative to achieve its goals, degrading projected levels of performance and escalating estimated cost Risk Structure
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44. Tracked assets data is organized by site, building, room, organization, etc.
76. Approximately 97%* of accountable assets can be tracked at the end of year five (5) by deploying RFID infrastructure to 20% of agency buildings* Note: 97% of assets are being tracked automatically via building readers and other 3% will be tracked by handhelds readers. 100% of the assets will be tagged with RFID tags. Cost estimates are midpoint estimates within a range that varies approximately +/- 10%.
77. Some Key Take Always It is best to think of your project as “process transformation” and not just leveraging RFID technology or providing visibility to an existing process Get a complete understanding of the strengths and weakness of the existing process Establish a clear set of objectives for the new process You need to educated your stakeholders on the range of possibilities that a RFID solution can reasonably provide Walkthrough the process impact a RFID solution will impose You need to describe and compare RFID solution alternatives in easy to understand steps For the economic analysis, your in search of not only minimal cost but an “optimal” approach Be prepared to examine multiple alternatives and sensitivity analysis’ Systematically eliminate alternatives early so they can be removed for further detail analysis
Hinweis der Redaktion
The key findings of the baseline assessment centered on the current annual inventory, property management, operational support resources, and IT infrastructureAnnual InventoryThe annual inventory is an enterprise function while assets are procured and managed by sub-agenciesThe annual inventory utilizes a four color and numbering system to identify the current status and year inventoriedThe annual inventory is used to validate asset information and resolve data discrepanciesThe current annual inventory process is very labor intensive, includes access restrictions (height, line of sight), and requires significant coordination between organizations and staffProperty ManagementThere is a broad range of property (computers to firearms) and locations (bio-safety labs to office cubicles) that have unique business requirementsPrimarily driven by the need for data encryption, IT assets are the only property that are consistently centrally received by sub-aganciesProperty that moves between locations is not always updated in the inventory management system or other offline systemsResources and IT InfrastructureMost staff are not dedicated to the position full timeStaff spend a significant amount of time researching overages and shortagesSome sub-agencies have employed offline solutions (e.g., spreadsheets) outside of the inventory management system to track assetsThere is a lot of enthusiasm for RFID technology and desire to improve asset visibility and tracking
We were looking for the knee of the curve to settle in on as a recommendation. In the absence of a specific goal (e.g. must track %98 of assets or cover all buildings with more than 200 assets), we feel the knee represents a transition point where the value gain becomes too expensive. This is a judgment call and the point we picked is our approximation to the knee location. This is only one of the many variables the agencies should consider when developing a final rollout plan. Our analysis assumes a rolling out by big sub-agencies first. The “optimal” roll out (i.e. and we do not have a clear definition of optimal) is likely to be a combination of sub-agencies size and building asset density. Also, we need to keep all this in perspective. We are talking about %94 vs. %96 and a cost variation estimate of about $500K (2% of the total cost). Therefore, regardless of these observation, we have a good ROM level analysis.