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Increasing Profitability and Productivity Through e-Business and Automation

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Title: Increasing Profitability and Productivity Through e-Business and Automation


1
Increasing Profitability and Productivity Through
e-Business and Automation
2
e-Business and Automation is More Than Just A
Website. It Includes -
3
  • Sales and Marketing
  • Team Collaboration Design Review
  • Employee/Vendor/Customer Communications
  • Telephony (VoIP), Web Conferencing and Instant
    Messaging
  • Customer Relationship Management (CRM)
  • Ordering, Fulfillment and Delivery Control
  • Financial Accounting and Management
  • Employee Training and Employee Relations
  • Research and Development
  • Supply Chain Management and Procurement
  • Contracting and Legal Services
  • Document Control, Security and Access
  • Mobile Workforce Enablement
  • Human Resources Policies, Procedures
    and Documentation

4
Why e-Business Makes Sense
  • 3 million people were online in 1994
  • 1 billion people online today
  • 15 million websites in 2002
  • 100 million websites in 2005
  • 39 Billion generated online in 1998
  • 20 Trillion generated online in 2004 28.6
    Billion in the construction industry

5
Top Nations in Internet Usage
  • Internet Users Share
  • U.S. 185,550,000 19.86
  • China 99,800,000 10.68
  • Japan 78,050,000 8.35
  • Germany 41,880,000 4.48
  • India 36,970,000 3.96
  • 6. UK 33,110,000 3.54
  • South Korea 31,670,000 3.39
  • 8. Italy 25,530,000 2.73
  • 9. France 25,470,000 2.73
  • 10. Brazil 22,320,000 2.39
  • 11. Russia 21,230,000 2.27
  • 12. Canada 20,450,000 2.19
  • 13. Mexico 13,880,000 1.49
  • 14. Spain 13,440,000 1.44
  • 15. Australia 13,010,000 1.39
  • Top 15 Countries 662,360,000 70.88

6
The Internet An Integrated Environment
Purchasing
Vehicles
Accounting Credit Control
Central Office
Customer Service Order Entry
Sales Force Management
Mobile Workforce
Strategic Partners
The Web
Customers
Supplier
Plants
Direct Connection
Virtual Private Network (VPN)
Internet Connection (TCP/IP)
7
Empower Your Employees With Wireless Technologies!
Palm OS
Windows PocketPC
Windows CE/ Symbian
8
We Begin By Studying The Information Flow In Your
Facility
Then Using RFID Technology, We Design Your System
9
Automating The Flow Of Information
Sales
Web Customer
Order Entry and Customer Relationship Management
Transportation
Accounting
Plant Operations
Order Fulfillment
Inventory Control
Quarry/Vendors
10
Operating In A Windows Environment
Customers
Transportation
Human Resources
Accounting
Sales
Legal
Plant Ops
BizTalk Server
Customer Relationship Management
System Management Server 2003
Internet
Live Communications Server (VoIP)
SharePoint Portal Services
Internet Information Services
Exchange Server 2003
Vendors
Mobile Workforce
SQL Server 2005
Windows Server 2003
11
What Would It Mean To YouIf Each Truck Would
MakeAt Least One More Load Every Day?
12
Identification Systems
  • Bar Code
  • Radio Frequency Identification (RFID)

13
RFID vs Bar CodeHow Theyre Similar
  • They both provide automated processes to
    improve operations by
  • Reducing labor and human error
  • Yields a vast amount of information

14
RFID vs Bar CodeHow Theyre Different
  • Different in that for RFID
  • Tags can be embedded
  • No line of sight needed
  • Read through wood, plastic, cardboard
  • Tags can be reprogrammed on the fly
  • Applicable in harsh environments
  • Hold significantly more information

15
Bar Code vs RFIDComplement or Replace
  • RFID will complement (or replace) barcode where
  • Physical environment favors RFID
  • Higher convenience is important
  • Higher level of automation is important
  • Higher accuracy is needed
  • Information often changes dynamically
  • Security is required

16
What is RFID
  • Automatic Identification System
  • Similar to Bar Code
  • Non-Contact, using Radio Waves
  • Non Line of Sight
  • Suitable for Harsh Environments

17
History of RFID
  • Technology developed in 1940s
  • Commercialized in early 1980s
  • Acceptance in mid 1980s
  • Large scale tests in 1998

18
RFID System Components
Transponder or tag enters read zone, its data is
captured by the reader and transferred to the
host computer.Once the link is established the
automation process begins.
19
RFID TAGS/ IN LAYS
  • Read Only or Read Write
  • Active or Passive
  • Many Form Factors
  • Various Read Ranges

20
Read Only Tag
  • Similar to bar Code
  • Programmed by manufacturer or customer
  • Limited amount of data/information
  • Requires centralized database
  • Easily Integrated

21
Read/Write Tags
  • Data can be read or written
  • Can store large amounts of data
  • Addressable
  • User can easily change information
  • Traveling Data base
  • Decentralized manufacturing

22
RFID Antennas
  • Various Shapes and Sizes
  • Wide Range of Frequencies
  • Multiple Tag Reads/Writes ( anti-collision)
  • Transmit Through Non-Metallic Objects

23
Frequency and Applications
Frequency Band Characteristics Typical Application
Low 100-500KHZ Short to medium read range Inexpensive Low reading speed Access Control Animal Identification Inventory Control Car Immobilizer
Intermediate 10-15 MHZ Short to medium read range Potentially Inexpensive Medium read speed Access Control Smart Cards
High 850-950 MHZ 2.4-5.8 GHZ Long Read Range High Read Speed Line of Site Required Expensive Rail Car Monitoring Toll Collection Systems
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27
RFID Meets Many Standards
  • ISO 15693
  • ISO 18000
  • GTAG
  • ISO 14443

28
Your Inventorycan talk to you!
29
Inventory Space
  • Space constrained?
  • Do you have difficulty in tracking items within
    the space available?
  • Spending more on space than you should?
  • Do you have storage and retrieval problems?
  • AIDC may help carry less stock and allow
  • for better organization of your space

30
Management of Information
  • Is information readily available?
  • Are there problems or inefficiencies in delivery?
  • Problems with tracking goods internally?
  • Are you being required to use AIDC technology/?
  • Are there problems with organizing customer
    orders?
  • AIDC can allow you to handle more
  • volume and enhance efficiency

31
Other Applications
  • Do you have a need for -
  • Personal ID of employees
  • Proof of delivery
  • Solving loading and unloading problems
  • Solving problems with sorting issues
  • Better asset management

32
Justifications
  • ROI Return on Investment
  • Begin the end in mind
  • Improved quality
  • Elimination of clerical errors
  • Improved processes
  • Reduction of labor and paperwork

33
ROI Considerations
  • Identify the pain
  • How much is the solution worth?
  • Justification (labor quality)
  • Is there a better solution than RFID?
  • RFID Tag Cost
  • Less expensive tags with limited features

34
RFID can erase hidden costs
  • RF tags for asset tracking
  • Shrinkage
  • raw material, WIP, finished goods, office
    supplies, equipment
  • Under-utilized assets -
  • equipment hidden by employees
  • Temporary loss of key components -
  • use long range radio beacons on critical assets

35
Five Simple Steps
  • Define the RFID maximum potential
  • Define your business processes
  • Define your application
  • Define and implement a pilot system
  • Benchmark the system performance

36
Type of Tag
  • Does one size fit all?
  • Its impossible and unreasonable to make a
    blanket statement that one type of tag is best
    for every type of tracking application.

37
Performance
  • Range Limitations
  • Power Limitations
  • All Variables that are involved

38
Metals and Liquids
  • Reduces effective Range
  • Blocking Effect
  • De-tuning effect
  • Energy Absorption
  • Conductive inks in future

39
Noise
  • Radiated Noise
  • Conducted Noise
  • Communications Ports
  • Antennas

40
Tag to Tag Interference
  • Anti-collision factors
  • Unique identifier
  • Tag inventory

41
Packaging
  • Size
  • vs
  • Performance
  • vs
  • Memory Options
  • Disks, glass tubes
  • Cards
  • Mount on metal
  • Low frequency/high frequency

42
Compliance Issues
  • An RFID system consists of an RF transmission
    device and is subject to national and
    international regulations
  • FCC Federal Communications Commission
  • CE Commission of European Community

43
RFID Considerations
  • Cost
  • Performance
  • Proximity of metals and liquids
  • Electrical/magnetic noise
  • System hardware availability
  • Tag to tag interference
  • Packaging
  • Frequency considerations
  • Compliance issues
  • Making the right choices

44
Matching Technology with Objectives
  • Map out as is process whats happening now?
  • Identify information flow requirements
  • Identify changes regardless of technology
  • Lay out future state process to reach
    objectives
  • Obtain consensus from all departments
  • Identify technology
  • Develop concept design to include infrastructure
    and legacy interfaces
  • Implement the design
  • Set up feedback loop for future improvements

45
The Company
  • An aggregate products company with bulk loads of
    product which have to be prepared, packaged,
    warehoused, and delivered.

46
The Problems
  • No real-time inventory
  • No communication
  • No labeling system
  • Manual receiving and shipping records

47
The Solution
  • Install an AIDC system using wireless
    communications.
  • Label products and boxes
  • Transmit information automatically
  • Control the inventory and shipping

48
Automated Check-in, Loading, Check-out and
Ticketing - How It Works
49
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50
Radio Frequency Reader The Heart of the Systems
51
Radio Frequency Tag
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54
Entry Gate
Scale House
RF ID
1
Camera
Pre Entry
Entry Gate
Stone, Sand Gravel Plant Traffic Flow
55
Check In
Express RF ID
Scale House
Regular RF ID
3
2
Pre Entry
Entry Gate
Stone, Sand Gravel Plant Traffic Flow
56
RFID system recognizes vehicle and weighs it at
the time of Check In
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Load Out by Bins or Front End Loader Receiving
RF signal with truck information
4
5
Plant Manager
Scale House
Check In
Stone, Sand Gravel Plant Traffic Flow
63
Front End Loaders and Bins equipped with digital
displays receive real-time information.
64
SAMPLE LCD READ-OUT Front End Loaders Bins
Truck 1234 3201 4603 Product
57s Conc Sand Crusher Run Quantity 21
Tons 19 Tons 22 Tons
65
SAMPLE LCD READ-OUT Plant Managers Truck
Loader 1 Loader 2 Bin
1 Truck 1234 3201 4603 Product
57s Conc Sand Crusher Run Quantity 21
Tons 19 Tons 22 Tons Sales 2,000 Tons
57s 1,500 Tons Conc Sand 1,000 Tons Crusher
Run
66
Weigh Out
S C A L E
Unmanned Operation
RF ID
6
Red Light
Scale House
Traffic Light
Stone, Sand Gravel Plant Traffic Flow
67
After Loading, Trucks Weigh Out on the Automated
Scale
68
Video Control
S C A L E
Unmanned Operation
Red Light
Camera
Scale House
7
EXIT - - - - - GATE- - - - ENTRY
Stone, Sand Gravel Plant Traffic Flow
69
Cameras Spot Lights are used for documenting
vehicle traffic and drivers.
70
Snead Management Systems Data Storage System
MHS
Scale Ticket
71
Remote Ticketing
S C A L E
Unmanned Operation
Red Light
8
Remote Ticket Printer
EXIT - - - - - GATE- - - - ENTRY
Stone, Sand Gravel Plant Traffic Flow
72
A Ticket Printing Station is used to supply
drivers with their tickets.
73
Sample Tickets
74
Office Communications
S C A L E
Scale House
9
Office
Remote Ticketing
EXIT - - GATE- - ENTRY
WEB
Customers
Stone, Sand Gravel Plant Traffic Flow
75
MHS
At the end of the day, MHS provides you with the
management reports you need to completely analyze
your facility.
76
Customer Access
S C A L E
Scale House
Office
Remote Ticketing
WEB
10
EXIT - - - - - GATE- - - - ENTRY
Customers
Stone, Sand Gravel Plant Traffic Flow
77
Bringing It All Together
Load Out by Bins or Front End Loader Receiving
RF signal with truck information
Plant Manager
5
S C A L E
4
6
Unmanned Weighing
Weigh-out RF ID
Express RF ID
Regular RF ID
Red Light
Camera
Scale House
2
Check In
3
7
9
Office
Remote Ticketing
10
re Entry ID
8
1
WEB
EXIT - - GATE- - ENTRY
Customers
Stone, Sand Gravel Plant Traffic Flow
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The Company
  • A manufacturer of aggregate products being
    delivered various distances.

80
The Problems
  • 500 truck-loads per day and increasing
  • Requires 2 employees manually
  • Volumes of paperwork required
  • Information not available to all the staff
  • Variety of jobs and locations
  • No access/egress control

81
The Solution
  • Design and implement an AIDC system that
  • Identifies the vehicle automatically
  • Checks the order communicates
  • Weighs the vehicle prints delivery info
  • Completes the e-business process

82
Plant Traffic Management
  • Quotes Order Entry
  • Check-in
  • Identification
  • Load out
  • Weigh out
  • Ticketing

83
Railcar Weighing for the Stone, Sand
Gravel,Asphalt, and Cement Industry
84
Radio Frequency Identification With Rail Cars
RF Tag
Radio Frequency Tag on both sides of
railcar Unmanned weighing using video
control Automatic Weigh bills Transmission to
office Information forwarded to destination
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Internet Usage by the Mining Industry in 2002
  • Several times a day 29
  • Several times a week 19
  • Once a week 12
  • Once a day 9
  • Once a month 7
  • Several times a month 7
  • Never 18 (can you believe this?)

89
Mining Companys Reasons for Accessing the
Internet
  • Keep current with industry news 71
  • Locate equipment manufacturers 67
  • Obtain legislation/regulatory info 65
  • Obtain info on customers 41
  • Find magazine articles 29
  • Buy office supplies 22
  • Submit government reports 18
  • Submit bids on projects 10

90
Mining Companys Website Features
  • Company background 88
  • Info on specific operations 80
  • News releases 58
  • Career opportunities 55
  • Product photos 52
  • Product specs 47
  • Sales contacts 32
  • Online ordering 7 (should be 1)

91
What Else Should Be On The Website?
  • Quoting and ordering capability
  • Benefits from use of products
  • Industry applications
  • Geographical area served
  • Customer inquiries jobs/tons to date
  • Mobile communications info

92
What Should You Do?
  • Assume change - 10 years today equals 50 years a
    few years ago.
  • Learn flexibility
  • Be customer-centric -Learn the golden rule,
    customers are fighting back
  • Study automation trends
  • 13 trillion machine generated transactions
    Interfacing to soft drink machine

93
Steps to Success
  • Create structure and business model
  • Train and retain personnel
  • Deploy an automation strategy
  • Manage change

94
Learn From Successful ModelsApply the process to
the mining industry
  • Verticalization - specialized organization,
    targeted markets, focused audience
  • Auctions Online - immediate supply
  • Exchanges Online - see energy market
  • Demand Aggregations Online - buy in bulk
  • Power of mass purchasing (mercata.com)

95
Focusing on ideas
  • Speed wins (24/7/365)
  • Relationships are the key
  • All E-Business is global
  • Invest in innovation (Walmart E-Business achieved
    ROI in 6 months)
  • Operate faster, offer more products

96
Business _at_ The Speed of Thought
  • I have a simple but strong belief. The most
    meaningful way to differentiate your company from
    your competitors, the best way to put distance
    between you and the crowd, is to do an
    outstanding job with information!
  • Bill Gates

97
E-Business affects your PEOPLE and your
CUSTOMERS
and your TIME and MONEY
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