Appendix. Field Trial Projects on RFID Applications sponsored by METI. ( 4 projects in FY2003 / 7 projects in FY2004 / 8 projects in FY2005 )

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1 Appendix Field Trial Projects on RFID Applications sponsored by METI ( 4 projects in FY2003 / 7 projects in FY2004 / 8 projects in FY2005 ) Field Trial Projects in the Industries in FY2004 RFID Projects in the industries in FY2005 The Achievements of the Field Trial Projects in FY FY2004 Project 1 - FY2004 Project 2 - FY2004 Project 3 - FY2004 Project 4 - FY2004 Project 5 - FY2004 Project 6 - FY2004 Project 7 1

2 Field Trial Projects in the industries in FY industry areas - UHF RFID was tested in all projects Project area Electric Home Appliances and Electronic Equipments/Devices Construction Machineries, Industrial Vehicles and Agricultural Machineries Publishing, Book stores and Libraries Medical and Pharmaceutical Products Department Stores And Apparel International Marine and Land Container Transportation CD/DVD Media and Retail/Rental Stores Factories / Distribution Centers / Retail Shops Parts Factories / Assembly Factories / Dealers Factories / Distribution Centers / Book Shops / Libraries Factories / Distributors / Hospitals Factories / Distribution Centers / Department Stores / Retail Shops Ports (Marine Container) Test Location Factories / Distribution Centers / Retail Shops / Rental Shops 2

3 RFID Projects in the industries in FY2005 METI decided to fund the 8 projects on RFID System, in FY2005. Category Industrial restructuring Development of new industry Inter-industry coalition International cooperation Industry 1. Electric Appliances and Electronic Products 2. Pharmaceutical Products 3. Supply Chain of Japan Self Defense Forces 4. Self-control Robots 5. Books, CD/DVD 6. Retail (supermarket, department store, convenience store) 7. Automotive Parts 8. Office Equipment Points Using RFID on electronic parts in terms of recycling. Putting RFID on animal origin products. Verifying traceability of the products in the supply-chain. Testing impact of RF to medical equipments, etc. Using RFID for efficient logistics in Self Defense Forces. Aiming collaboration with US DOD system in the future. Self-control robots using RFID for spatial awareness and recognition of human and things Targeting item level tagging (direct attachment), CRM in the book store, and theft detection in supply-chain Targeting CRM in retail store. Using smart shopping-cart, kiosk, cell-phone, etc. (Japanese Future Store) Attaching RFID on parts and returnable containers for efficient SCM of the automotive parts industry in ASEAN countries Aiming efficient SCM in the office equipment Industry in Japan, China and South Korea. Attaching RFID on parts and pallet. 3

4 The Achievements of the Field Trial Projects in FY2004 Economy is defined as a mechanism where flows of information, goods g and services create added-value in the society. In this sense, RFID Tags technology can facilitate those flows and can be utilized for the total optimization of the economy. Hence, we assessed that RFID Tags would have the potentials to maximize the outcomes of economic and industrial activities. Industry Construction-machinery/ Industrial-truck/ Farm-machinery Industries Outcome of the Pilot Tests (in comparison with bar-code) Saved 2.7 billion (in terms of personnel cost) through efficient delivery reception-process. Book-related industry Appliance-industry/ Electronic & Electric industry Reduced inspection time by 90%. Pharmaceutical industry Department stores /Apparel-industries Logistics industry Record industry, DVD/CD industry Reduced 10 billion by shortening inventory and shipping/receiving time. Boosted sales by 10%, since the real-time inventory information reduced significant opportunity cost. Some department stores have started the full-scale implementation of the RFID Tags system in April Saved 20.5 billion (in terms of personnel cost) through efficient inspection process. Reduced inventory process time to a quarter of its average. 4

5 FY2004 Project1 (International Marine and Land Container Transportation) Ensuring distribution status of containers and visibility of contents Aiming efficiency of inspection, and prevention of incorrect shipments Tracing temperature, humidity, light and impact history (quality control) Project Owner : Japan Federation of Freight Industries System Integrator : Mitsubishi Research Institute, IIJ, Nihon Unisys, Toppan Printing, Mitsui & Co., Ltd., etc Trial Period : Dec Mar Domestic Ports Tokyo Tokyo Yokohama Nagoya Kobe Partner Ports Cargo Import / Export Hong Kong toys Import Dailan wood Import Hong Kong copier parts Export Los Angeles plasma TVs Export Antwerp water-absorbing polymers Export An Electronic Seal for containers (Active-type 433 MHz) Corporate Participants Bandai Sankyo Distributors Fuji Xerox Sony Nippon Shokubai Product RFID tag attachment Case Container 5

6 FY2004 Project 2 ( Medical and Pharmaceutical Products) Ensure traceability of biologic origin medical product Prevent medication error, Ensure the safety of patients Improve the efficiency of checking of incoming merchandise Project owner : The Federation of Pharmaceutical Manufacturers Associations of JAPAN System Integrator : Toppan Printing, Sap Japan, Trial Period : Jan Mar ampul of biologic origin medical product Traceability in the process from manufacturers to hospitals Use unit Sales unit Package unit Pallets/Cargo unit Maker Maker Maker/wholesaler wholesaler Hospital Hospital wholesaler Developed very small RFID for 1ml ampul 6

7 FY2004 Project3 ( Pumps and Boots shop in Department Stores) Verified Real-time inventory management of pumps and boots shop SCM in retailing Project Owner : Japan Department Stores Association, Japan Apparel Industry Council System Integrator : NTT Communications, NTT Comware, Nihon Unisys, Dai-Nippon Printing, etc. Trial Period : Oct Feb Manufacturer wholesaler retailer Tagging shipping Tagging PDA searching POS Stock control Inventory check Self searching terminal inventory check per rack Barcode15min. RFID 4min. 7

8 FY2004 Project 4 ( SCM in Construction Machineries Industry) Optimize SCM through the visualization of manufacturing process Improve the efficiency of distribution systems of components Main Implementation : Japan Construction Equipment Manufacturers Association, etc. (Komatsu etc.) System Development : Mitsui & Co., Ltd., Nihon Unisys, Toppan Printing, etc. Trial Period : Jan Mar present situation Components Maker Assembly Maker SCM Components Maker~Assembly Maker After the adoption of RFID Components Maker Assembly Maker Developed On-Metal RFID difficult coordination Production delay or Overproduction abrupt change of plans Stock-Out or Overhang of stocks Communication Communication by by telephone telephone or or fax fax Production delay STOP RFID RFID Visualization Optimum Production Optimum Production Optimum stock Inefficient logistics Efficient logistics 8

9 FY2004 Project 5 ( Publishing, Book stores and Libraries) Develop the binding processes of the RFID in the book Develop the new services using the mobile phone devices with built-in RFID reader Coordinate with the library RFID systems Prevent the distribution of shop-lifted books Project Owner : Japan Publishing Infrastructure Organization System Integration: NTT Communications, Matsushita electric industries, densowave, etc. Trial Period : Jan Mar Publisher Subscription agent Book store Library Reader Secondhand bookstore efficient efficient stock control efficient accepting order advancement of marketing information efficient efficient sorting efficient stock control efficient order processing efficient efficient stock control efficient sale management advancement of marketing information efficient order processing prevention of shoplifting CRM service Information of the book prevention of buying shoplifte d books 9

10 FY2004 Project 6 ( CD/DVD Media and Retail/Rental Stores ) Improve the efficiency of checking of incoming merchandise Automatize the inventory management Develop the new services using the mobile phone devices with built-in RFID reader Project Owner : Recording Industry Association of Japan System Integrator : Mitsubishi Research Institute, RF Japan, Matsushita electric industries, etc. Trial Period : Jan Feb SCM Manufacture ~ Retailer ~ second-hand shop Home Second-hand shop Download a special ringing melody (song) to purchaser s mobile. Maker Stock control efficient Logistics Center JDS NRC Whole seller Retail shop Inventory check POS Audition system Rental Shinseido (CD shop) Home Secondhand shop TSUTAYA (DVD rental shop) Develop the new services using the mobile phone devices with built-in RFID reader 10

11 FY2004 Project 7 ( Electric Appliances and Electronic Equipments/Devices) Ensure traceability of electronic components to control of substances hazardous to Health Verify efficiency of SCM in manufacturing process, logistics, sales Promote a recycling-oriented society Project Owner : Association for Electric Home Appliances, Japan Electronics and Information Technology Industries Association System Integrator : Hitachi, Mizuho Research Institute, etc. Trial Period : Feb Mar Components Maker Set Maker Assembly Maker Logistics mass merchandise outlet shop consumer Recycle Response to restricting the use of Hazardous Substances Management of product information Efficient production process Skip Skip Skip Efficient stock control Efficient POS Greater customer satisfaction Greater customer satisfaction Searching repair record Efficient recycle process 11