Use of RFID in Shipments between Shore Base Terminals and Oil Platforms in the Gulf of Mexico Yasemin Aksoy Tulane Consortium for Supply Chain Management July 2004 Global Manufacturing Research Group in Istanbul

Agenda u Objectives and scope u RFID Basics u Process Flow u Pilot Performance Evaluation

PROJECT TEAM u ChevronTexaco –Evaluating technology usage u Phase IV Engineering –Providing RFID hardware –Programming for ChevronTexaco specific process u Fiatech –Project Coordination –Vendor contacts for technology u 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 u Items unaccounted for at the base u Items not delivered to the platform u Items not loaded on the boat u Items misplaced in yard/warehouse u Items disappeared on route u Items delivered to the platform but misplaced u Items unaccounted for (no confirmation of receipt offshore) u Items delivered to the wrong platform

Scope u Tracking of material shipments to and from the Venice shore base terminal to the Main Pass 41DLM facility using RFID technology. u Hardware: 60 RFID tags, 2 handheld readers u 1 month study; parallel to existing process u Observations at each location

RFID BASICS u Radio Frequency IDentification (RFID) –a tag containing a computer chip that includes a miniature antenna and data storage u Data transmitted from or written to the tag u Data captured by a hand-held reader

RFID TAG

RFID TAG READER

Reader RF Module (Active) 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?

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 u Accuracy in accounting u Performance of RFID tags with respect to (a) correct information transfer, (b) ruggedness to physical handling, practicality of use in this application u Number of missing items u Number of complaints received on missing items u Feedback from the frontline users and customers

User Evaluation of RFID

Future Issues u Tagged shipments from vendors u Paperless Manifest u Integration into wireless LAN u Tracking of rental/high price/hazardous materials u Use of sensors within RFID tags