RFID Handheld Readers Manufacturing Division FA

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RFID Handheld ReadersManufacturing Division (FA
3)

• Kim Osborn
• Han Yang
• Nav Gill

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What is RFID?

• RFID stands for Radio-Frequency IDentification.
  The acronym refers to small electronic devices
  that consist of a small chip and an antenna.
• The chip typically is capable of carrying 2,000
  bytes of data or less
• The RFID device serves the same purpose as a bar
  code or a magnetic strip on the back of a credit
  card or ATM card it provides a unique identifier
  for that object. And, just as a bar code or
  magnetic strip must be scanned to get the
  information, the RFID device must be scanned to
  retrieve the identifying information.

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Impact on Manufacturing

• RFID information can be used to ensure that the
  correct labor, machine, tooling, and components
  are available and ready to use at each processing
  step, thereby eliminating paperwork, and reducing
  downtime
• By tagging raw materials with detailed
  specification information, alerts could be
  automatically triggered at mixing operations if
  an incorrect formulation is imminent. This can
  help reduce scrap rates and increase the degree
  of reliability and quality in processing
• By combining RFID with existing manufacturing
  information systems such as ERP, a much more
  potent information supply can be created that can
  drive production efficiencies, asset utilization,
  quality and other production measures to much
  higher levels.

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Impact on petGRO

• Increases in productivity
• Frees up labor and directs more focus towards
  value adding tasks
• Increases in revenue
• Reduce stockouts because of greater inventory
  visibility
• Shorter cash to cash cycle
• Theft prevention

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RFID ReadersMotorola VS Intermec

• Motorola MC9090-G Handheld RFID Reader
• FINANCIAL INFORMATION
• Approximate Initial Cost 35,000
• Implementation Time Span 12 Months
• Training Expenditures 20,000
• TCO 131,500
• Projected Savings 330,000
• R.O.I 135.11
• Based on 5 year span

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• Intermec IP4 Portable RFID Reader
• FINANCIAL INFORMATION
• Approximate Initial Cost 25,000
• Implementation Time Span 6
• Training Expenditures 20,000
• TCO 145,000
• Projected Savings 425,000
• R.O.I 175.07
• Based on 5 year span

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Motorola Advantage

• Proven communication leader
• Large display provides exceptional clarity and
  contrast for easy reading in a wide variety of
  lighting conditions
• Bluetooth adds to productivity, enabling wireless
  synchronization, printing and more
• Motorola technical support
• Supports simple to complex multimedia
  applications
• rugged construction delivers an extraordinarily
  low total cost of ownership through reduced
  repair and downtime costs

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Motorola Disadvantages

• Higher initial costs
• Longer implementation period
• Lower ROI
• Lower long run savings

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- Advantages

• Over 40 years of experience in data collection
  automation
• Over 10 years of experience in RFID solutions
  and services
• Established relationship with SAP
• Strategic Alliance with Metro Group
• Nestle is a brand partner of Metro Group
• Integrated circular polarized antenna reads
  tags in any orientation
• Longer battery life than MC9090-G
• Easy to use interface and functionality
• Higher R.O.I

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- Disadvantages

• Less communications experience compared with
  Motorola
• Less experienced in RFID technologies
• Intermec has more experience within the European
  markets because of alliance with Metro Group
  opposed to North American experience
• Training costs and Total Ownership Costs are
  higher compared to Motorola

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Decision

• Considering all the data, we are confident
  Intermec is the most suitable provider for the
  RFID handheld reader
• Decision Criteria
• Offers highest ROI figures
• Projected savings are higher, allowing petGRO
  further investment opportunities
• Established strategic alliance with Metro Group
  which is partners with Nestle.
• Time is money and Intermec provides a shorter
  implementation period

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Final Thoughts

• Given the competitive environment petGRO is
  operating in, RFID provides us with an
  opportunity to remain competitive and further
  gain a competitive advantage by integrating our
  best practices with RFID technologies.
• RFID is the future and petGRO should catch this
  rising trend as an early adopter.
• RFID helps other FAs including
• Shipping and Receiving
• Procurement
• Logistics
• IP4 will be pay for itself after year 3

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Thank You for your time Mr. Barquer