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Use of RFID in Shipments between Shore Base Terminals and Oil
Platforms in the Gulf of Mexico
Yasemin AksoyTulane Consortium for Supply Chain Management
July 2004 Global Manufacturing Research Group in Istanbul
PROJECT TEAM
ChevronTexaco– Evaluating technology
usage
Phase IV Engineering– Providing RFID
hardware– Programming for
ChevronTexaco specific process
Fiatech– Project Coordination– Vendor contacts for
technology Tulane University
– Pilot performance measurement
– Reporting
PROJECT OBJECTIVE
Understand the economic factors and feasibilities of using RFID technology in tracking the movement of materials from the Venice shore base to the Main Pass 41 field.
Current Problems
Items unaccounted for at the base Items not delivered to the platform Items not loaded on the boat Items misplaced in yard/warehouse Items disappeared on route Items delivered to the platform but misplaced Items unaccounted for (no confirmation of receipt
offshore) Items delivered to the wrong platform
Scope
Tracking of material shipments to and from the Venice shore base terminal to the Main Pass 41DLM facility using RFID technology.
Hardware: 60 RFID tags, 2 handheld readers 1 month study; parallel to existing process Observations at each location
RFID BASICS
Radio Frequency IDentification (RFID)– a tag containing a computer chip that includes
a miniature antenna and data storage Data transmitted from or written to the tag
Data captured by a hand-held reader
Reader
RF Module(Active)
Antenna
Example: Toll Tag• Tag is in your car• Broadcast the programmed information• Drive through Toll• Toll has Reader• Reader connected to Computer System
How Does RFID Work?
Source: FORRESTER RESEARCH
Radio Frequency
Benefits Limitations Common commercial uses today
Low frequency (125 to 134 Kilohertz)
Frequency accepted worldwide
Works well near metal In wide use today
Limited read-range potential (impractical for some warehouse operations such as pick and pack); less than 1.5 meters
Animal identification Beer keg tracking Automobile key-and-
lock, anti-theft systems
High frequency (13.56 Megahertz)
Frequency accepted worldwide
Works well in most environments
In wide use today
Does not work well near metal
Limited read-range potential; less than 1.5 meters
Library book tracking Pallet/container
tracking Access control
(buildings) Airline baggage
tracking Apparel item tracking
UHF (868 to 928 Megahertz)
Longer read-range potential; more than 1.5 meters
Commercial use is growing rapidly
Frequency not issued for commercial use in Japan
Detuning when tags are in close physical proximity
Does not work well in most environments
Pallet and container tracking
Truck and trailer tracking (in shipping yard)
Microwave (2.45 Gigahertz)
Longer read-range potential; more than 1.5 meters
Frequency not issued for commercial use in parts of Europe
Complex systems development
Not in wide use today
Access control (vehicles)
RFID Bar Code
Can be read or updated without line of sight Requires line of sight to be read
Can be read in multiples simultaneously Can only be read one at a time
Can be read at high speeds Need slowing down for aiming purposes
Can cope with harsh and dirty environments Cannot be read when dirty or damaged
Can be automatically tracked Needs manual handling
Can identify a specific item Can only identify the type of an item
Electronic information can be over-written repeatedly Information cannot be updatedCan be read even when concealed within an item (steel, concrete, water, human) Must be visible to be logged
Can accommodate longer read range Requires limited read range
Costs are higher Costs are lower
Materials arrive at the shore base terminal.
Truck driver presents printed manifest to receiving supervisor
Receiving supervisor enters information into the manifest application and downloads the manifest file to the handheld reader.
Shipping supervisor attaches a tag to each item to be tracked.
Process Flow
Shipping supervisor selects each item from check list and reads barcode on tag. Handheld reader automatically writes item from check list into tag memory. Item is added to Shipping Manifest.
Process Flow continued
Shipping supervisor takes electronic inventory of all tagged items.
Shipping supervisor plans logistics of shipping to the appropriate off-shore destinations.
Inventory Screen shows
Green – Item listed on manifest was found
Red – Item listed on Manifest not found
Blue – Item found not listed on Manifest
Process Flow continued
Shipping supervisor takes electronic inventory of tagged items on board ship by walking around. Inventory screen shows the same as above.
Ship captain signs off on inventory. Handheld reader captures digital signature.
Process Flow continued
Receiving platform downloads the manifest from the server to their handheld reader.
Inventory file (manifest) is uploaded from handheld reader to PC and put on server by shipping supervisor.
Process Flow continued
Tags are removed for reuse
Received manifest is uploaded from offshore handheld to PC and transmitted to server.
Received items are scanned and reconciled against downloaded manifest.
Missing or extra items are identified.
Process Flow continued
Performance Metrics
Accuracy in accounting Performance of RFID tags with respect to (a) correct
information transfer, (b) ruggedness to physical handling, practicality of use in this application
Number of missing items Number of complaints received on missing items Feedback from the frontline users and customers
Location based results (number of respondents shown in parentheses)
Overall Results
(8 respondents)
Venice Shorebase (3)
Offshore Platform (5)
Questions
(Answers are scores of 1 to 10 where the meaning of the scores are shown below in parentheses) Average Range Average Range Average Range
How easy was it to do the roll calls? (1 means very difficult; and 10 very easy)
7.63 6-10 6.67 6-8 8.2 6-10
How easy was it to do the associations? (1 means confusing, incoherent; and 10 very easy to understand and act upon)
6.29 1-10 6.67 1-10 6 4-8
What was the overall quality of the RFID technology (hardware and software) you received? ( 1 means very amateurish; and 10 highly polished, very professional)
6.5 1-10 6.33 1-10 6.6 1-9
How useful did you find the RFID technology? (1 means it was useless, I got nothing from it; and 10 a real eye opener, I got unexpected and valuable insights)
5.86 2-10 7.33 6-10 4.75 2-7
What is your overall satisfaction with the RFID pilot? (1 means it was useless, I got nothing from it; and 10 a real eye opener, I got unexpected and valuable insights)
6 3-9 7 6-9 5.4 3-8
How useful did you find the RFID tags? (1 means very unsatisfied, it wasted my time; and 10 very satisfied)
5.63 2-8 6.33 6-7 5.2 2-8
User Evaluation of RFID