This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Start Date: 01/03/2010 Duration: 24 months Total Budget: 4.400.000€ Total EC Contribution: 2.200.000€ Coordinator: UEAPME◦ The employers’ organisation representing the interests of
European crafts, trades and SMEs at EU level◦ Recognised European Social Partner. ◦ Non-profit seeking and non-partisan organisation.
SME Centric Consortium 20 Partners◦ 6 SME solution providers◦ 8 SME end-users◦ 5 SME Associations◦ 1 Research Partner
Business Objective:◦ Achieve a satisfactory RFID enabled electronic document and dossier
management, applicable to a variety of document classifications and related handling processes.
Uses AspireRFID Open Source Middleware and Tools Benefits & KPIs:◦ Number of tracked RFID folders vs customer number◦ % of time spent in calling customers for missing documents ◦ Time spent by a folder to pass from status “opened” to status “ready for tax
computation”◦ % of automated checking by e-mail ◦ Number of overtime related to tax declaration◦ Faster search for a single folder ◦ Faster inventory of folders in a container◦ Immediate identification of bottleneck in folder management◦ Immediate update of the folder status◦ Decrease of mis-placed documents◦ Fast issue of requests/notifications to customers
Business Objectives:◦ Tourist Relationship Management◦ Optimize sales and service on the destinations using RFID instead of
conventional papers Benefits & KPIs:◦ Increase mobile sales to customers at the destinations, Minimize irregularities
in accounts and ports on destinations, Reduction in administrative costs per sold travel
◦ Easier to hire new guides, More valid data sets for settling with partners◦ Technological trendsetters for the travels agents, new standard for business◦ Improved safety in transport and at destination
Hardware Considerations:◦ Variety of options, models, capabilities, costs◦ Testing and Site Survey are important steps
Middleware Considerations:◦ Middleware Suite vs. Software Development (from scratch)◦ Open Source vs. Commercial◦ Integration Capabilities of the Middleware◦ Available Tools
Architecture Considerations:◦ RFID-ROI-SME has identified building blocks◦ Real-time Read Cycles (NFC, mobile readers) vs. Batch Read Cycles
(Logistics Dock-Doors)◦ Wireless/Mobile vs. Fixed Readers◦ Integration with legacy enterprise systems and applications (ERP, WMS,
MRP)
Details on the above experiences to be published in RFID-ROI-SME Best Practices and Blueprint Documents
Scope: Evaluate the impact and usability of the system (from the user’s perspectives)Evaluators: SME End-Users (and their employees)Objectives: 1) Improve Employee Ease and Productivity2) Realize Business Benefits for he companies
Business & Financial Evaluation
Scope: Evaluate the business and financial benefits of the systemEvaluators: SME End-Users, SME-AssociationsObjectives: 1) Quantify and Measure Business Benefits2) Justify the RFID Investment3) Prove and Boost Sustainability
Technical Evaluation
Scope: Evaluate the technical capabilities of the RFID systemsEvaluators: SME-Solution ProvidersObjectives: 1) Assess and Ensure the Quality of the Ultimate Implementations2) Indentify opportunities for improvement and expansion
Evaluation of Wider Impact
Scope: Evaluate the wider potential of RFID technology in EU and beyondEvaluators: SME-Associations, SME-Solution ProvidersObjectives: 1) Assess the RFID benefits for SMEs in selected sectors2) Provide input to policy development
Manufacturing)◦ RFIDJournal Calculator (Apparel)◦ Custom Calculators (by the RFID-ROI-SME project)
Note however the limitations of the ROI methodology: ◦ Inherent uncertainty in the estimation of the benefits◦ Intangible (longer term) benefits cannot be quantified
STAFF: RFID in its central warehouse (as part of the ASPIRE project)◦ http://www.youtube.com/watch?v=DmmC2QJmqNo◦ STAFF extends the benefits to its Retail Shop (in the scope
of RFID-ROI-SME) Item-Level Tagging: The lion’s share is the cost of
consumables
5%1% 5% 1%
14%
60%
5%5%
1% 3% Hardware expense (Including readers)
Software expense
Consulting and systems Integration
Other infrastructure change expense (for readability of tags etc)
Internal project teams
Total annual cost of tags used for production tracking
Benefit due to leadtime (Time from customer order until customer receives the product) reducAverage order leadtime (time from order placement to receiving) without RFID 45Fraction of total order leadtime for locating inventory & picking right products 20,00%Reduction of above fraction due to RFID systems 60,00%Reduction in order leadtime due to RFID 5,40% reduction from total leadtime 12,00%Average order leadtime after RFID 39,60% reduction in safety stock due to reduction in leadtime 6,19%Savings due to safety stock reduction (annual holding cost) 135,47 €
Other benefitsAnnual savings due to improved production layout due to RFID enabled automation 1.000 €Annual savings due to process re-engineering with RFID at the factory / warehouse 1.000 €Increased throughput due to shorter lead-time (% of current revenues) 0,05%Annual increased revenues due to increased throughput 12.155 €
Total benefitAdditional revenues 12.155,06 €Reduced Costs 242.135,47 €
Benefit due to automationAverage time (in seconds) required for each bar-code scan 15 Average number scans per day 10.000Fully loaded direct labor cost rate for personnel involved in scanning 30 €Number of working (business) days per year 240% reduction in cost due to automated scanning 80,00%Total time spend for scanning (seconds per day) 150.000Current cost of manual scanning / recording operations 300.000 €Savings due to automation with RFID 240.000 €
Overall Positive ROI - Five year discounted NPV almost 150000€
For RFID-enabling only a few processes:◦ Receiving Goods, Shipments, Inventory
Anticipated Benefits from deployment at Retail Stores
But: The cost of tags/consumables is still high◦ Even if it is decreasing
The more RFID enable operations deployed the better ROI◦ Quick Wins can be achieved with few operations◦ Benefits are Maximized when more operations are RFID-