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RFID for Materials Management and Productivity · PDF fileRFID for Materials Management and Productivity Improvement Todd Sutton Business Unit Manager Zachry Construction Corporation

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RFID for Materials Management

and Productivity Improvement

Todd Sutton

Business Unit Manager

Zachry Construction Corporation

FIATECH – Co-Champion

Element 4: Intelligent & Automated Construction Job Site

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RFID for Materials Management

and Productivity Improvement

• Most material available for implementing RFID

technology currently centers on the manufacturing

and retail industries.

• The benefits and true potential of implementing

this technology are virtually untapped by the

construction sector because the industry, as a whole,

has not yet realized the value it can provide.

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RFID for Materials Management

and Productivity Improvement

• The FIATECH Series of Innovation Guides for the

Capital Projects Industry

• “RFID for Materials Management and Productivity

Improvement “ is the first volume of a series for

implementing Technology on construction projects.

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Table of Contents

• Preface

• Acknowledgements

• Chapter 1 – Introduction

• Chapter 2 – Building the Business Case

• Chapter 3 – RFID Components

• Chapter 4 – Operating Standards

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Table of Contents

• Chapter 5 – Implementation

• Chapter 6 – Training

• Chapter 7 – Summary

• Appendix

• Glossary

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Chapter 1 –

Introduction

• Why RFID Technology

• What RFID Is and Does

• RFID Technology Versus Barcoding

• RFID Case Studies

• Overview of subsequent chapters

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Chapter 1 –

Introduction

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Chapter 2 –

Building the Business Case

• Materials Management Operations

• Supply Chain Operations

• Construction Site Operations

• Materials Management Methods and

Technologies

• Materials Management Project Control Systems

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Chapter 2 –

Building the Business Case

• Situation Awareness and Process

Streamlining

• Productivity Improvement Planning

• Analytical Approach to Current

Operating Flows

• Cost Benefit Analysis

• CPIP Checklist

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Chapter 2 –

Building the Business Case

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Chapter 3 –

RFID Components• Getting Started

• Bench Testing an RFID Configuration

• Tags

• Tag Implementation Construction Industry Example

• Interrogators

• Interrogator Implementation Construction Industry Example

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Chapter 3 –

RFID Components

• Interrogator Antennas and Cables

• Interrogator Antenna Construction

Industry Example

• RFID Software and Middleware

• Portals

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Chapter 3 –

RFID ComponentsFIATECH Smart Chips Project –

Field Trials of RFID Technology for Tracking Fabricated Pipe

ERP

SYSTEMMIDDLEWARE

RFID

READER

RFID

READER

RFID

READER

PRINTER/

ENCODER

OTHER

PERIPHERALS

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Chapter 4 –

Operating Standards

Regulations

Similar to Europe

EN 302-208

FCC 15.247

Still

Pending

Still

Pending

Regulations

Similar to USA

Region 1Region 2 Region 3

• Regulations and Standards

• Performance Impact

• Tag Size

• Tag Sensitivity

• Interrogator Interference

• Dense Reader Mode

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Chapter 4 –

Operating Standards

• Tag Interference

• Electrical Noise

• International Trade

• Standards

• References

-60.00

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-30.00

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0.00

10.00

20.00

30.00

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866.3 866.35 866.4 866.45 866.5 866.55 866.6 866.65 866.7

Frequency

dB

m/1

00

kh

z

EN 302-208 Spectral Mask Limits

CW InterfererCarrier

Backscatter

Data IM Products

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Chapter 5 –

Implementation

• Implementation

• The Site Survey

• System Design

• Partner Engagement

• Installation

Fabrication Finishing

&

Cosmetics

Installation & Inspection

Various Storage and Laydown Areas

Receiving

&Shipping

A

B F

CY Z

Interrogation Zone

Programming Zones

Inspection

Storage

X

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Chapter 5 –

Implementation

• Technical Support and Services

• On-Site Training

• Expansion to other business areas

• Implementation Checklist

• Summary

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Chapter 5 –

Implementation Checklist

• The RFID Implementation Checklist was

developed to provide guidance when

implementing an RFID system.

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Chapter 5 –

Implementation Checklist

• This checklist should provide an outline

for implementation and can be easily

adapted to future requirements.

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Chapter 5 –

Implementation Checklist

Obtain Senior Management Support

Systems Integrator selection based on

primary implementation business

requirements.

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Chapter 5 –

Implementation Checklist Site Survey should consist of the following:

Onsite visit with systems integrator, site employees and IT Department network support representative walk through of current business process.

Perform electromagnetic spectral scan for potential sources of interference.

Perform the testing during peak operating times and over a 24-hour period.

Review legacy wireless installations and cellular networks.

Address electromagnetic generators on the construction site such as power tools and industrial fans.

Identify environmental conditions or constraints.

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Chapter 5 –

Implementation Checklist Document existing business process and review with system

integrator to determine what is to be tracked.

Determine the site infrastructure based on the site assessment by addressing the following:

Map out interrogation zone locations to assess the interrogation station and enrollment station requirements.

Tag type selection and assignment scheme

Tag placement

Mobile and hand-held readers selection

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Chapter 5 –

Implementation Checklist

Create Bill of Material for selected system

based on the site infrastructure

requirements.

Purchase System and start planning for

installation preparations.

Software systems integration with existing

systems.

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Chapter 5 –

Implementation ChecklistSetup equipment to improve process and

test infrastructure

Verify the ability to capture information and to transfer data to and from other systems.

Train employees on the technology and use of RFID to ensure proper tag placement on material.

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Chapter 5 –

Implementation Checklist

Partner with suppliers to verify system

compatibility.

Subject the system to load testing and use

during peak operation times.

Measure the results from the entire

process.

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Chapter 5 –

Implementation Checklist

Integrate the data between applications and

systems.

Have a contingency plan in place. Have work-

around and system redundancy prepared to

overcome technology issues.

Provide additional On-Site Training for

administrators and end-users.

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Chapter 5 –

Implementation Checklist

Go Live once all testing is completed and

monitor the RFID solution closely for the

first few weeks making any additional

adjustments as needed.

Review system and expand based on the

value added results of the initial

implementation.

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Chapter 5 –

Implementation

• This chapter focused on the implementation of RFID on a construction

jobsite to improve the tracking of the pre-fabricated pipe spools and

metal-marked steel parts. This chapter addresses the site survey,

system design, partner engagement, implementation, on-site training,

technical support / services and expansion to other areas or projects in

the corporation.

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Chapter 6 –

RFID Training

• The Evolving Pace of RFID Technology

• Why RFID Training Is Essential

• System Evaluation and Design

• System Optimization

• Industry Specific Training

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Chapter 6 –

RFID Training

• Who Needs RFID Training

• Types of RFID Training

• Expectations of Training

• RFID Training Checklist

• Summary

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Chapter 7 –

Summary and Outlook

• Defines the reason for the Book

• Summarizes the content of the Book

• Provides a future outlook of RFID

• Provides example of future application

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Capital Project Opportunities

• Construction Materials Produced Annually:

~30M* (Many items will Require Multiple Tags)

• Annual Labor Operating Inefficiency:

$61B to $122B**

© 2010 Reg Hunter, All Rights Reserved.

** Source: Advancing the Competitiveness and Efficiency of the U.S. Construction

Industry, Board on Infrastructure and the Construction Environment Division on

Engineering and Physical Science & 40% Labor Content Est. From EPC

* Source: Logistics Services Providers

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Productivity

Improvement Project

Awareness

What WAS Going On

• Fragile, Labor Intensive & Inefficient

• Delayed & Inaccurate Monitoring

• Reactive Decision Making “Fire Fighting”

• Work Harder Solutions

What IS Going On

Situation

Awareness

• Agile, Robust, Lean & Efficient

• Real-Time Monitoring

• Automated Real-Time Actionable

Information

• Rapid Excursion Detection & Recovery

• Proactive Decision Making

• Work Smarter Solutions

(End-to-End Visibility, Predictability & Control)

© 2010 Reg Hunter, All Rights Reserved.

Perspectives are Changing

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Systemic Inefficiency Example

Source: 2004 FIATECH-KBR Pipe Spool Locating

Study

• Meantime to Locate Using Grids: 6.7 Minutes

• Meantime to Locate Using GPS: 0.92 Minutes

• Efficiency Gain Per Locate With GPS: 5.78 Minutes

Assumptions:

• 0.92 Minutes Represents Travel Time

• On Average Materials are Located 3.5 Times

• Aggregate Labor Cost $300/hr

Operations Requiring Locating Materials

in Lay-Down Yards Using Grids vs GPS

Systemic Inefficiency Cost Implications:

Small Project: 15,000 => $ 1.5M

Large Project: 120,000 => $ 12M

© 2010 Reg Hunter, All Rights Reserved.

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Estimating Small Project Locating Inefficiency Costs

Total Number of Locate Transactions Performed in Thousands (000)100

05010 20 30 40 60 70 80 90

To

tal C

ost o

f In

effic

iency ($

)

125K

250K

375K

500K

625K

750K

875K

1M

1.250M

1.375M

1.5M

1.625M

1.750M

1.875M

2.00M

1.125M

52.5 (15,000 X 3.5 )

$1.517M

© 2010 Reg Hunter, All Rights Reserved.

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Bi-Monthly Costs Cumulative Project Costs

Systemic Inefficiency Costs

© 2010 Reg Hunter, All Rights Reserved.

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Locate Systemic Inefficiency Costs

© 2010 Reg Hunter, All Rights Reserved.

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Questions

RFID for Materials Management

and Productivity Improvement

Todd Sutton

[email protected]