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Implementing RFID in slab and coil logistics results in several benefits in the following key
areas:
Asset use: Radio-frequency identification speeds up the identification of tagged items,
increasing throughput and optimizing the use of expensive handling equipment such as
forklifts and cranes. Time gained can be so significant that it is possible to eliminate machines
and reduce attendant capital investments and personnel costs
Operational efficiency: Radio-frequency identification improves operational efficiency in
many ways including improved collaboration with trading partners, faster product
localization and reduced manual effort.
Safety and security: Automating product identification and tracking removes people from
physically dangerous situations and averts the potential for product confusion. This in turn
reduces risk exposure.
Customer service
Standardization will be key to success and to the realization of the many benefits. It is
paramount for the following reasons:
Customer acceptance: Most steel companies sell their products (largely coils) and
intermediary products (slabs and coils) to a uniform customer base in the automotive and
industrial segments. If steel producers adopt diverging RFID solutions to identify slabs and
coils, this places the onus on customers to work with multiple systems. Conversely, as has
already occurred in the retail, military and pharmaceutical sectors, if the steel industry
proposes anything other than a standardized approach, customers may simply mandate
solutions, leading to unnecessary complexity, redundancy and cost for steel companies.
Flexibility: By implementing a standard for solutions, the integration of new customer
systems will be far easier than if a customized solution for every unique customer scenario
were necessary. Standards also allow customers to choose among different suppliers and
reduce their dependency on a single one. In other words, the necessarily tight integration of
customer and supplier systems will not become an artificial trade barrier.
Availability and cost: Using RFID for slab and coil logistics requires specialized solutions,
which either do not yet exist in a production-ready form or which are at least more expensive
than products used by other industries. While designing RFID products appropriate for
handling steel is technically feasible, many vendors will only do so given sufficient sales
volumes. As a result, the steel industry should focus on adopting a limited number of
standardized solutions.
No duplication of effort: There is no point in duplicating efforts and individually repeating
technical mistakes. Far greater benefits would be realized by standardizing systems across the
entire supply chain, from producers to end-use manufacturers.
The steel industry must proactively develop standards for RFID-enabled slab and coil identification. A
wait-and see attitude is strongly discouraged because implementation times would increaseas would
the costs and risks associated with responding to diverging customer requirements.
A companys RFID implementation will divide into two types of investment:
1. A radio-frequency identification platform, including middleware licenses, servers, and
operations
support considered a common service- cost to the companycomparable to general IT
infrastructure and support.
2.Multiple applications, including custom software development, process integration,
dedicated consulting, RFID tags for developing specific RFID solutions, that will be charged
to the business / the respective project on a case-by-case basis. In other words, if a company
implements a common
RFID platform that could be used by many different RFID applications across operations,
that platform becomes more valuable as more applications leverage it.
B) Operational efficiency
Radio-frequency identification technology can improve the operational efficiency of a steel
company in many ways. Among the more obvious are faster product localization and
reduced labour costs.
Value Levers are as follows
1. Improved stock management
2. Supply chain visibility and insight
3. Detention / demurrage cost reductions: % cost Reduction, % reduction in lead time
4. Increased productivity /simplified labour: Reduction in no. of FTE/labour cost reduction
Value Lever Improvement Metric
Improved stock Ratio: Savings due to
management Improved Operational
Supply chain visibility and efficiency
insight /cost of RFID
Detention / demurrage cost % cost Reduction, % implementation
reductions reduction in lead time
Increased productivity Reduction in no. of
/simplified labour FTE/labour cost reduction
Success
By implementing the RFID-based logistics system, POSCO has automated the inspection,
packaging and shipping of its metal coil products, eliminating errors that occurred previously
with manual processes. Meanwhile, customers can instantly access real-time data they need
to plan their own production operations because the RFID system integrates seamlessly with
their own planning solutions via the internet. By providing easy access to better data, as well
as more accurate shipments, POSCO has boosted customer satisfaction.
Case2
Seamless Position Detection for Cranes & Transport Vehicles and Reliable Anti-Collision
Systems
Challenge
Metal products such as slabs, coils, heavy plates and metal sheets are usually stored in large
indoor facilities and on outdoor grounds. Complex sites and profuse steam and smoke, in
addition to vibrations and extreme temperatures, place high demands on sensor technology
installed in these harsh steel environments.
Solution: Solution Provider: Symeo
To meet these challenging requirements, Symeo developed a range of sensor systems
designed for distance measurement, position detection and anti-collision applications, as well
as for WiFi-independent, wireless data capture and transmission solutions. Symeo products,
which are suitable for any type of transport vehicle including cranes and slab carriers, can be
used in indoor and outdoor environments. The solutions are robust, maintenance-free, easy
to install and feature extended operating ranges.
Symeo's precise position detection systems are deployed around the world by the metal and
steel industry in a variety of applications:
Anti-collision
Automated crane management
Logistics and transport management systems
Success story
Collision warning system at Voestalpine Stahl
The challenge
Vehicles and cranes move at a fast pace in the hot slab storage area at voestalpine Stahl GmbH.
A large number of cranes and heavy-duty vehicles move around in a relatively confined space.
From an occupational safety perspective, there was a need to provide drivers and crane
operators with technical support in order to avoid collisions that may have serious
consequences.
The solution
The solution is a collision warning system based on Symeos LPR. The permanently-installed
LPR transponders and LPR modules on every crane and slab transporter transmit the
participants position to the warning system and radio it to the other participants. This
information is used to calculate movement directions and speed locally, creating a dynamic
safety zone around each vehicle that controls the warning signals.
The projects success
An easy-to-understand visualization of the vehicle position and surrounding obstacles on six-
inch displays provides excellent orientation for drivers and crane operators. A tiered system
with visual and acoustic warnings alerts participants to any collision dangers. In cooperation
with the customer, the system was set up in a practice-oriented manner so as not to
unnecessarily disturb production and slab transporting with superfluous warnings. The
decentralised collision warning system at voestalpine is proving to be highly robust, failsafe
and maintenance-low, and it is a valuable addition to driver cabs across the steel works
Be it slabs, heavy plate, billets, coils or other products - PSImetals Logistics optimizes product
stocks, supports the improved utilization of existing warehouse capacities, optimizes all
internal transports at both ends of production facilities, and makes decisions for the optimum
use of the means of transport available in each case.
PSImetals Logistics covers the following areas:
Stock management
Management of transport and driving orders
Transport optimisation for the material supply and removal to/from the lines
Shipping
Optimisation of external transports to customers and service center
Case4
Technical Warehouse Management systems
Challenges in metal industry warehouses:
Unlike other storage systems such as high-bay warehouses, for instance, warehouse
management in the metal industry is very complex. There are no uniform rack heights, ABC
zones, or standardized transfer points for transportation means and material handling
vehicles. A suitable storage location must be identified for each storage item individually. This
requires taking the current warehouse situation and a number of different restrictions into
consideration.
Solution provider: 3tn-TWMS/Metals
Salient Features:
3tn has designed the TWMS/metals specifically for the metal industry. This system is
prepared for any customary product, transportation means, and warehouse
configuration.
The TWMS/metals controls manual and automated transportation processes as well
as fully automated warehouses. In doing so, it optimizes interconnecting or even
plant-wide warehouse utilization and efficiently uses transportation means such as
cranes or transfer cars. On one side, it communicates with ERP and MES systems and
on the other side with basic automation and sensors.
The TWMS/metals visualizes the current warehouse situation from any perspective
in real time. It displays not only the current warehouse situation but also a wealth of
additional information. The operator can detect at a glance, if a coil is on hold, if a slab
may be stored at a certain location, or if a restriction is violated
The system centrally manages warehouse processes and automatically tracks
inventory. This ensures consistent accuracy of the database reflecting the actual
inventory, thereby reducing the time spent searching almost to zero
Benefits:
Optimum use of warehouse space for each product
Short shipping times
Efficient deployment of personnel and means of transportation
No damage from improper storage
Improved work safety
How it works:
1. When an object such as a slab or a coil is to be transported, the TWMS/metals receives
information from production control, the MES, or ERP. The system identifies the
optimal storage location, the most suitable combination of transportation means, and
the optimal route to the storage location. In doing so, it considers the current
warehouse situation, the availability of resources, as well as optimizing and restricting
transportation and warehouse rules. Then, the TWMS/metals issues the order to the
vehicle operators or the automated transportation controls such as automatic cranes
or coil ferries. As soon as the order has been carried out, the TWMS/metals reports the
order as finished to the higher-level systems. The TWMS/metals is a user-friendly
system. Clearly arranged operator guidance with context-sensitive menus make
operation easy, even for inexperienced users. The interfaces come with many different
language settings; additional languages may be integrated within a central table.
2. Instant Information: The warehouse visualised in a virtual representation
The TWMS/metals visualizes the current warehouse situation and means of
transportation in a realistic real-time 3D view from any location and from any
arbitrary viewpoint. This, for example, facilitates a virtual tour through the
warehouse.
Furthermore, a wealth of additional information, e.g. ID-numbers, material
data, or on hold flags can be accessed by a click of the mouse. By design, the
TWMS/metals is a mobile system that also works on cranes, in vehicles, and
with handheld terminals. This enables the crane operator to obtain a real-time,
three-dimensional view of what is directly below his crane on a monitor, and
facilitates precise positioning of objects being stored.
The TWMS/metals is a system that can anticipate and prevent restriction
violations and damage to storage goods. For instance, if the crane operator
approaches an unsuitable storage location, an alert will immediately be issued.
As a result, damage and additional costs are avoided.
Furthermore, visualization contributes to work safety. In many cases, the
presence of a shop floor operator in the warehouse is no longer necessary, as
crane and vehicle operators work on their own
Case5
Tailored packing solutions for both coils and slabs can be employed
Rationalization of packing requirement and philosophy for coils
Rationalization of sheets packing philosophy.