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Ross Products Div. Abbott Laboratories


A Global Company Abbott Nutrition International (11 plants) ... Paris Hilton: 28,200,000. RFID: 41,700,000. iPod: 197,000,000. Why is RFID one of the most widely ... – PowerPoint PPT presentation

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Title: Ross Products Div. Abbott Laboratories

Ross Products Div. Abbott Laboratories
Ohio University AIDTCIRFID Review July 25, 2006
Bill Hook Brian Armstrong
Commercial Application of RFID Technology
  • Agenda
  • Ross Products Div. Of Abbott Labs
  • RFID Applications
  • From the lab to pilot to the manufacturing floor
    to the DC to
  • Strategy and Process workflow
  • Key learnings
  • Next steps
  • Questions?

Ross Products Div. Abbott Labs
  • General Information
  • Located in Columbus, Ohio
  • A Global Company Abbott Nutrition International
    (11 plants)
  • Makers of Similac, Ensure, EAS, Glucerna, etc.
  • Part of Abbott Labs (22.3 B Health Care Company)
  • Working with RFID since 1999 (RD)
  • Lab efforts began in 2003
  • First mfg. Pilot in 2004
  • WalMart RFID compliance in 2005 6 DCs 600
  • Target 1 DC, 10 stores, Albertsons 134
    stores by 2007)
  • Dept. of Defense RFID compliance in 2006/07

Popularity Score by Google
  • David Beckham 1,660,000
  • U2 20,300,000
  • Paris Hilton 28,200,000
  • RFID 41,700,000
  • iPod 197,000,000

Why is RFID one of the most widely discussed
topics worldwide today?
RFID Applications
  • Medical Devices
  • Tracking and Tracing of Assembly kits
  • Assembly
  • Aircraft Assembly
  • Repair

Abbott Strategy and Workflow
  • Early strategy
  • Involve suppliers (corrugate, tags, labels,
    hardware, software) in everything
  • Test in lab or limited pilot applications
  • Dont disturb manufacturing processes
  • Educate key stakeholders on technology and
  • Dont displace existing systems, augment them
  • Learn as much as possible from others (EPC
    Global, alliances with others involved in
    mandates or pilots)
  • Dont believe the hype, test and re-test to
    generate your results
  • Label converters and corrugate suppliers can help
    with RFID tag integrity
  • Move slowly and carefully, dont over commit
  • Stay close to customers and begin to mine data

Key Learnings
  • As physics predicted.metals and liquids create
    challenges for RFID
  • Tag label placement and hardware optimization
  • Prepare to handle lots of data and identify
    business applications
  • Data analytics can be managed with third party
  • Look for an ROI early in the process
  • Build performance criteria early and have vendors
  • What you cant see CAN hurt your performance
  • Technology has come a long waybut there is still
    much more to come
  • Technology users are key in the hardware/software
    development process

Department of Defense Mandate Abbott Labs
  • DoD issued an interim rule amending the Defense
    Federal Acquisition Regulation Supplement (DFARS)
    to include additional commodities shipped to 21
    DoD locations (May 19, 2006)
  • Contractors supplying materials must affix RFID
    tags at case and palletized unit load levels
    (Some cost increases may be included in contract)
  • Class of goods expanded to include medical
    materials and personal demand goods (Many Abbott
    divisions are affected)
  • Defense Distribution Depots from Florida to
  • Public comment period ended 7/18
  • Existing Supply contracts will not allow for
  • Punitive measureslate payments or no contract!
  • ASN will be required via several acceptable
    formats (WAWF)
  • DoD is using many consultants to support this
    initiative no direct route

Encoding Process
  • Open air encoding on manufacturing lines (Retail
  • Corrugate vendor applies RFID tag/label in high
    speed process
  • Utilize case packing process where 1-3 seconds of
    stationary encoding time is available
  • Encode and verify in a single step
  • Case to pallet association at palletizer via a
    PLC interface
  • Multi-mode Operation (Off line DoD Initiative)
  • Open air encode, encode apply, print, encode,
    apply, re-associate cases to pallets, utilize bar
    codes or other data matrix codes
  • Advanced Shipping Notice is required by DoD
  • Also used for promotions, new item introductions,

Integrated Packing Line (Dept. of Defense)
SAP Auto-ID Infrastructure sends Production
Shipping Orders to Middleware
SAP Aii Assigns EPC Codes
Middleware Sends SAP Auto-ID Infrastructure the
Item-Case-Pallet Information
Production Performance Statistics
  • Gen 1 vs Gen 2 Performance
  • Hype is real
  • Hardware performance
  • Middleware
  • Tag Statistics
  • - Price 0.15 - 0.22 (converted labels)
  • - Performance 99
  • Data analytics
  • WalMart expectations

Product Tagging Mandates
Case Pallet WalMart, Target, Albertsons
Case, Pallet, Item Dept.of Defense
  • Item may be anything
  • worth 5000

RFID Just the Tip of the Iceberg
  • Visible Challenges
  • Hardware Tag Selection
  • Slap and Ship
  • Mfg. Line installation
  • Hidden Challenges
  • Business Process Integration
  • Business System Integration
  • Support
  • RFID Data Management
  • Data Synchronization
  • Expanded Customer
    Requirements (ASN)

Basic Functions - Solutions using RFID ERP
  • SAP Auto ID Infrastructure Business Context to
    Raw RFID Data
  • EPC Number Range Distribution and Mgmt
  • Validation
  • Enterprise Transaction\EPC MovementAssociation
  • Item\Case\Pallet hierarchy management
  • Direct and Indirect connection to Devices
  • Bar Code enablement (or other code type)
  • Business Information Analytics
  • Read and Write Rate Quality Reports
  • Stock Situation at Different Locations
  • Movements across Locations
  • Movements at Location by Action Type
  • Cycle Time across Locations
  • Event Management
  • Tracking and Tracing
  • ePedigree for compliance to State Drug Pedigree
  • Exchange Infrastructure
  • Routing and Mapping of RFID information into
    appropriate business systems

Scalable Speed Platform for extended processes
such as ePODPromotion ExecutionProduct Launch
Next Steps
  • Continue with retail compliance expand to higher
    value skus
  • Develop an item level tagging strategy (2008-09)
  • Move data analytics inside firewall to ensure
    adequate exposure, learnings, and business
    application development
  • Continue to learn from peer groups
  • Expand pilot applications to track--trace of
    instruments, etc.
  • Keep current to hardware technology
  • Develop 13.56 Mhz technology for item level
  • Comply with international standards
  • Continue educational efforts with plants and
  • Find ROI and exploit all possible savings

Thank You!
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