Item-Level RFID Technology Manufacturer s Information Guide

Item-Level RFID Technology Manufacturer s Information Guide Draft JUNE 2011

CONTENTS INTRODUCTION... 1 PURPOSE... 1 GOALS AND OBJECTIVES... 1 RFID ITEM-LEVEL TECHNOLOGY PROCESS... 3 Step 1 Download Contract Data... 4 Step 2 Encode/Print/Attach RFID Item Tags... 4 Step 3 Encode/Print/Attach RFID Case Labels... 6 Step 4 Pack Items, Associate and Validate RFID Item Tags to RFID Case Labels... 7 Step 5 Encode/Print/Attach RFID Pallet Labels... 10 Step 6 Palletize Cases and Associate RFID Case Labels to RFID Pallet Label... 11 Step 7 Transmit Pack/Shipment Data to VIM-ASAP... 12 Step 8 Validate Uploaded Shipment/Pack Data and Generate DD250... 12 Step 9 User Review of DD250... 13 Step 10 User Review of Military Shipping Label... 14 Step 11 VIM-ASAP DD250 Upload to WAWF... 15 PROJECT IMPLEMENTATION... 16 Project Team Management... 16 Project Implementation Planning... 17 Requirements Assessment... 18 Request for Proposal Development... 20 Proposal Evaluation and Source Selection... 21 Technology Implementation and Operations... 22 Appendix A. VIM-ASAP Appendix B. Fields Required by VIM-ASAP for File Upload Appendix C. RFP Outline for an Item-Level Technology Implementation Appendix D. RFP Evaluation Scorecard DRAFT ii

Figures Figure 1. RFID Item-Level Technology Process... 3 Figure 2. Front and Back Side of an RFID Item-Level Tag... 5 Figure 3. Example RFID Case Label... 7 Figure 4. Item-to-Case Pack Station/Table... 8 Figure 5. Conveyor with Fixed RFID Readers... 8 Figure 6. Handheld RFID Terminal... 8 Figure 7. RFID Pallet Label... 10 Figure 8. Palletizer... 11 Figure 9. First Page after Login Menu... 13 Figure 10. Drop Down Menu of Manufacturing Folder Tab... 13 Figure 11. View/Edit Existing DD250s Web Page... 14 Figure 12. Prepare Shipment Labels Web Page... 14 Tables Table 1. The DoD 96-Bit Tag Construct... 5 Table 2. DoD-96 8-Bit Header Field Value... 6 Table 3. 4-Bit Filter Field Values... 6 DRAFT iii

Item-Level RFID Technology Manufacturer s Information Guide INTRODUCTION PURPOSE The Defense Logistics Agency (DLA) Troop Support Clothing and Textile (C&T) Directorate is incorporating item-level radio frequency identification (RFID) technology requirements into new and existing C&T contracts. DLA is starting to require C&T suppliers to affix passive RFID tags at the item level and provide item-level information about their end items. DLA Troop Support continues to evaluate the appropriate timing for extending the item-level RFID technology requirement to additional C&T items. The cost of implementing and operating itemlevel RFID technology is considered a normal cost of conducting business. C&T vendors should work directly with their contracting officers concerning any questions regarding this requirement. This user guide describes an implementation protocol that can be used by C&T manufacturers and RFID solution providers firms that sell RFID systems and implementation services to quickly and cost effectively deploy item-level RFID technology to meet DLA Troop Support requirements. It is not directive in nature nor does it provide the only viable options for acquiring item-level RFID technology. The guide is based on experience gained during DLA Customer Driven Uniform Manufacturing Program Research and Development activities and DLA s Industrial Base Innovation Fund (IBIF) Item-Level RFID Technology Project pilots at select C&T manufacturers. This document serves as a summary of DLA Troop Support requirements and guidelines. DLA Troop Support will continue to update the guide as technologies and supporting business processes evolve. GOALS AND OBJECTIVES The goal is to optimize the C&T supply chain with this technology that facilitates automated visibility, improves asset management, and increases inventory accuracy. DLA Troop Support is using this technology to fulfill its mission to provide knowledge-enabled logistics support to the warfighter. DRAFT 1

DLA Troop Support s objectives for this initiative are to: Achieve item-level visibility throughout the entire supply chain in order to improve asset management and inventory accuracy and Improve and streamline processes at all supply chain activities, when possible. Each C&T supplier has different manufacturing and business processes. They should establish their own internal objectives for RFID item-level technology. Each manufacturer s objectives should complement DLA Troop Support s goals and include: Integrate RFID item-level technology requirements with current item hang tag requirements. Link RFID item tags to RFID case labels and RFID case labels to RFID pallet labels. Link RFID item tags to select item information to include finished goods lot number as provided on DD250. Provide enhanced accountability by improving packing and shipment verification processes using RFID item-level technology. Encode each RFID item-level tag with a globally unique RFID tag identifier. Ensure each item-level RFID tag is readable. DRAFT 2

RFID ITEM-LEVEL TECHNOLOGY PROCESS A generic RFID item-level technology process is shown in Figure 1. This process serves only as a reference for further discussion, as each firm s manufacturing processes and RFID solution are somewhat unique. However, most successful C&T RFID item-level technology implementations will follow this basic approach with minor modification. Figure 1. RFID Item-Level Technology Process Manufacturer/RFID Solution Provider Developed Process 2. Encode/ print/attach RFID item tags 3.Encode/print/ attach RFID case labels 4. Pack items, associate and validate and Item tag to case labels 5. Encode/ print/attach RFID pallet labels 6. Build pallet/associate case labels to pallet labels Local Database 1. Download contract data 7. Upload pack/rfid data to VIM-ASAP 8. Validate pack data and generate partial DD250 & MSL(s) 9. User review and complete DD250 10. User review and complete MSL 11. Upload to WAWF ARN WAWF VIM-ASAP Process The item-level RFID technology process consists of two sub-processes, a manufacturer/rfid solution provider process (bounded by red in Figure 1) and a Virtual Item Manager/ARN Supply-chain Automated Processing (VIM-ASAP) process (bounded by purple in Figure 1). The manufacturer/rfid solution provider process is developed by the manufacturer and/or the RFID solution provider based upon the manufacturer s production process, business needs, and manufacturing infrastructure. Because each manufacturer s production processes will vary, the manufacturer/ RFID solution provider may slightly modify, separate, combine, or move the specific steps to better fit its needs. The download and upload information exchange (steps 1 and 7) located between the two diagrams connects the two processes. DRAFT 3

Step 1 Download Contract Data In order for the manufacturer/rfid solution provider to successfully accomplish the item-level technology process, the local (manufacturer/rfid solution provider) database must be populated with current manufacturer contract data. Downloading current contract data is automated through an interface established with VIM-ASAP. Because of the existing RFID-labeling requirement for case and pallet shipments, most C&T suppliers already have some experience interfacing with the VIM-ASAP system. A more detailed discussion of VIM-ASAP that contains a description of how to upload/download data can be found in Appendix A. Step 2 Encode/Print/Attach RFID Item Tags The manufacturer/rfid solution provider will use the contract data downloaded from VIM-ASAP and populated into the firm s database to encode and print RFID item-level tags. The preferred option is to integrate the item-level RFID technology tag requirements with the hang tag required by the manufacturer for the current contract. An integrated tag contains three elements: (1) the information currently required on the manufacturer s non-rfid hang tag (in both human readable and bar code formats), (2) an RFID inlay (chip and antenna), and (3) the unique RFID tag identification (ID) number a unique hexadecimal serial number in both human readable and bar code formats on the tag and encoded in the RFID chip. If integrating the item-level RFID technology with the manufacturer s hang tag is not an option, an RFID item tag (with the RFID inlay and unique RFID tag ID number encoded/printed) must be attached in addition to the manufacturer s hang tag. There are at least 3 options for the manufacturer to acquire the encoded and printed item level RFID tags. These options include: 1. Purchase/outsource pre-encoded/pre-printed tags. 2. Purchase equipment and software for on-site batch printing and encoding of tags. 3. Purchase equipment and software for on-site on-demand printing and encoding of tags. The option chosen by the manufacturers is mainly driven by their item tag labeling requirements, manufacturer s production process, product mix, manufacturing volume, and cost. Item-level tag size usually follows the current (non-rfid) item-hang tag requirements. Typical sizing of the tag ranges from 3 by 1.75 to 4 by 2.125. An example of the front side and back side of an RFID item-level tag is depicted in Figure 2. DRAFT 4

Figure 2. Front and Back Side of an RFID Item-Level Tag The passive RFID inlay is embedded into the tag. On the back of an RFID tag, the inlay is visible in the top half of the tag. The RFID chip is in the middle of the inlay, and the antenna spans close to the full length of the tag. It is important to note that the only data element encoded in the RFID chip is the unique hexadecimal RFID Tag ID number; none of the information printed on the front of the RFID tag is encoded in the chip other than the RFID tag ID number. Since 1 March 2007, DoD has exclusively accepted Ultra High Frequency (UHF) Generation 2 Electronic Product Code standard tags. The frequency range for these tags is 860 to 960 MHz, with a minimum read range of 3 meters. It is the responsibility of the supplier to ensure that every RFID tag shipped to the government is encoded with a globally unique identifier (unique tag ID). The unique tag ID should never be used more than once. The one tag one ID rule is the characteristic that makes the ID unique. There are two item-level tag constructs that are acceptable, the EPCglobal and the DoD-96. Only suppliers that are EPCglobal subscribers and that possess a GS1 company prefix can use the EPCglobal tag construct. For more information, please refer to the tag data standards document at http://www.epcglobalinc.org/standards. Suppliers who are not EPCglobal subscribers should use the DoD-96 bit construct with their assigned Commercial and Government Entity (CAGE) code. Table 1 illustrates the DoD-96 bit construct; the human-readable portion of the DoD 96-bit tag is printed in hexadecimal, and its corresponding tag inlay is encoded in binary. Table 1. The DoD 96-Bit Tag Construct Header Filter Government managed identifier Serial number 8 bits 4 bits 48 bits 36 bits Table 2 below contains the only values accepted by DoD in the 8-bit header portion of the DoD 96-bit tag construct. DRAFT 5

Table 2. DoD-96 8-Bit Header Field Value Hexadecimal header 8-bit binary header value Identifier 2F 00101111 DoD-96 Table 3 shows the three legitimate entries for the filter field (see Table 1) in the DoD-96 construct. They are the hexadecimal values 0, 1, and 2, representing pallet, case, and unit pack or item, respectively. Table 3. 4-Bit Filter Field Values Hexadecimal filter value 4-bit binary filter value Identifier 0 0000 Pallet 1 0001 Case 2 0010 Pack/item The 48-bit government managed identifier portion of the DoD 96-bit tag construct is the supplier s CAGE code. The 36-bit serial number contains a unique number assigned by the supplier to represent a specific RFID tag ID. Under the DoD-96 construct, every RFID tag ID comprises the header, filter, government managed identifier, and serial number; it is the tag s serial number combined with the government managed identifier that makes the RFID tag ID unique. Step 3 Encode/Print/Attach RFID Case Labels Most C&T vendors already have the requirement to place RFID case and pallet labels on their shipments to DLA. Requirements and guidance related to passive RFID implementation at the case and pallet level for the DoD supplier community can be found in the United States Department of Defense Suppliers Passive RFID Information Guide and MIL-STD-129P Change 4. Like item-level RFID tag constructs, the manufacturer has the option of using the EPCglobal or DoD-96 bit construct for unique identification of each case RFID label, unless otherwise stipulated in an active contract. An example of a RFID case label is provided in Figure 3. DRAFT 6

Figure 3. Example RFID Case Label Options to perform RFID case label encoding/printing/attachment need to be identified and evaluated when planning the implementation of RFID item-level technology. Step 4 Pack Items, Associate and Validate RFID Item Tags to RFID Case Labels After the RFID item tags have been attached to the finished item, cases should be packed with the correct type and quantity of items. The case could be packed prior to attaching the case labels described in step 3. The sequence of steps is dependent on the manufacturer s production process; typically, the case is packed and the case label is available prior to validation and association of RFID item tags to RFID case labels. ITEM-TO-CASE ASSOCIATION PROCESS The item-to-case association process links the item-level RFID tag ID encoded in the RFID item tag to the RFID case label. This process can employ different equipment configurations to include: (1) item-to-case pack station/table, (2) conveyor with fixed RFID readers, and (3) handheld readers. In addition, depending on the RFID solution employed, a firm may also need to invest in an RFID label printer, RFID reader, database software, and computer to accomplish item-to-case association. DRAFT 7

Figure 4 through Figure 6 illustrate these equipment configurations for item-tocase association. Figure 4. Item-to-Case Pack Station/Table Figure 5. Conveyor with Fixed RFID Readers Figure 6. Handheld RFID Terminal DRAFT 8

VALIDATION PROCESS The validation process uses RFID item-level technology to ensure the correct items and quantities are packed in the case based on the standard case quantities stated in the contract. During item-to-case validation, the RFID solution should test the contents of each case against the requirements of the manufacturer s contract. In past implementations, the RFID solutions and supporting software have tested for the following case conditions (but there may be others based on specific contract requirements): The number of items in the case matches the correct case pack quantity; The items in the case are all of the same type and size/national stock number (NSN); The items in the case are all from the same CAGE; and The items in the case are all from the same contract/contract line item number, or CLIN. After each case is tested, the following actions are taken based on the condition observed: Case Condition: The case quantity equals the standard case quantity and the packed items have the same NSN, Action: Accept the case and perform the item tag to case label association. Case Condition: The case quantity is less than the standard case quantity and the packed items have the same NSN, Action: Upon a user override, accept the case and perform the item tag to case label association, this option is only available for contracts where less than full cases can be shipped; Action: Reject item tag to case label association, the user adds enough items to equal the standard case quantity and performs the item tag to case label association. Case Condition: The case quantity is greater than the standard case quantity and the packed items have the same NSN, Action: Upon a user override, accept the case and perform the item tag to case label association, this option is only available where more than full cases can be shipped; DRAFT 9

Action: Reject item tag to case label association, the user removes enough items to equal the standard case quantity and performs the item tag to case label association. Case Condition: The items packed have multiple NSNs, CAGEs, contract numbers, or CLINs, Action: Reject item tag to case label association, the user has to correct the case s contents so that it contains the appropriate number of items having the same NSNs from the same CAGE, contract number, and CLIN and performs the item tag to case label association. Step 5 Encode/Print/Attach RFID Pallet Labels Most C&T vendors are currently required to affix RFID pallet labels on their shipments to DLA. Requirements and guidance related to passive RFID implementation at the case and pallet level for the DoD supplier community can be found in the United States Department of Defense Suppliers Passive RFID Information Guide and MIL-STD-129P Change 4. Pallet labels include the pallet RFID tag ID and other information required by the manufacturer s contract in both human readable and bar code formats. Figure 7 illustrates a RFID pallet label. Figure 7. RFID Pallet Label Options to perform RFID pallet label encoding/printing/attachment need to be identified and evaluated when planning the implementation of RFID item-level technology. DRAFT 10

Step 6 Palletize Cases and Associate RFID Case Labels to RFID Pallet Label After the case has been packed and sealed and the RFID item tag to RFID case label association has been completed, the cases are put on pallets in preparation for movement or shipment. Prior to shipment, each case RFID label on a pallet needs to be linked the pallet s RFID label. The case-to-pallet association process must also electronically link each RFID pallet label to the contract, delivery order, and shipment number. Options for when and where to perform these operations may vary due to factors such as manufacturer s palletizing, warehousing and shipment processes, shipment requirements, facility constraints, shipment volumes, costs, etc. For the case-to-pallet association process, there are several common solutions one using a palletizer and the other a handheld RFID reader/bar code scanner. Figure 8 shows a loaded palletizer. Figure 8. Palletizer Firms that currently use palletizers (devices used to stack and organize factory products) may modify them with RFID devices that will accomplish the case-topallet association while simultaneously wrapping their pallets for shipments. Alternatively, a firm can use a handheld RFID reader/bar code scanner to accomplish case-to-pallet association. Depending on the RFID solution employed, a firm may need to invest in an RFID label printer, RFID reader(s), database software, and computer to accomplish case-to-pallet association. DRAFT 11

Step 7 Transmit Pack/Shipment Data to VIM-ASAP The RFID solution must be capable of uploading all data to VIM-ASAP. Information included in the data upload is: DD250 data Military shipment label data RFID pallet label data for each shipment RFID case label data and label association to correct RFID pallet label RFID item tag data and tag data association to correct RFID case label. To upload the data, the user must log into the VIM-ASAP login page https://vim.dla.mil to access the website and enter the company s user identification and password. The format for item-case-pallet pack/shipment RFID data upload to VIM-ASAP can be found at https://wawf.eb.mil/. Additional information on VIM-ASAP upload/ download can be found in Appendixes A and B. For further assistance, contact the VIM-ASAP Help Desk at 1-888-940-7348. The help desk is open from 7:00 a.m. to 4:00 p.m. (Pacific Time), Mondays through Fridays, except holidays. You may leave a voicemail message at any time and help desk personnel will return your call as soon as possible. The full interface description of the item-case-pallet marking format is described in the file COMBO_UDF.doc available from the VIM-ASAP Help Desk. For user ease, a file description, including only those fields used by VIM-ASAP, is extracted and provided in Appendix B. Step 8 Validate Uploaded Shipment/Pack Data and Generate DD250 VIM-ASAP uses the ARN database to validate the shipment/pack data received from the manufacturer and generates a partial or draft DD250 from that uploaded data. The ARN database validates the information by comparing uploaded information to historical files and identifies any errors associated with: Incorrect number of item-level RFID tags; Unassociated item, case, and pallet RFID tags; Duplicate RFID tag numbers; and Incorrectly coded tags. DRAFT 12

If an error is detected by the ARN database, an error messages is provided to the user for review (Step 9) and a draft DD250 is not generated. Step 9 User Review of DD250 After the ARN database validates the shipment/pack data and generates the draft DD250, the manufacturer re-enters back into the VIM-ASAP database to review and complete the draft DD250. To access the draft DD250 in VIM-ASAP the user selects Manufacturing folder tab located on the left side of the screen, above the Exit link, as shown in Figure 9. Figure 9. First Page after Login Menu This will expand the Manufacturing folder tab to display the following menu as shown in Figure 10. Figure 10. Drop Down Menu of Manufacturing Folder Tab The user will select View/Edit Existing DD250s. to access the screen shown in Figure 11. DRAFT 13

Unfinished DD250s can be edited, deleted, or simply recalled and finished. Completed DD250s can be viewed but not edited or deleted. Existing DD250s can be viewed by selecting the desired contract and delivery order and then clicking the appropriate button for the desired DD250. Once the appropriate DD250 is displayed, the user must include the invoice and shipment numbers to complete the DD250. Figure 11. View/Edit Existing DD250s Web Page Step 10 User Review of Military Shipping Label Every new DD250 is entered into one of the queues of shipments that are organized by ship-from location and destination. The shipping labels (DD Form 1387 Military Shipment Label ) are accessed for one or more shipments by selecting the desired ship-from location and destination. To access and edit the shipment data, return to the drop down menu off the Virtual Item Manager screen (Figure 9). Click on Prepare Shipment Labels, and Figure 12 will appear. Figure 12. Prepare Shipment Labels Web Page DRAFT 14

The shipping label will have a red VOID stamp on it indicating that it is incomplete. Once the appropriate shipment is selected, the user enters the following data to complete the MSL: Weight: Enter the weight of all containers for an individual shipment label. Volume: Enter the length, width, and height of all containers that are associated with an individual shipment label. Tracking Number: The tracking number, as identified by the selected shipper, is entered here. Clicking on the Finish button will remove the VOID as well as indicate the Date Printed on the subsequent View Existing Shipment/Container Labels page. (Note: The label will no longer be editable once it has been finished.) Step 11 VIM-ASAP DD250 Upload to WAWF Once the user has entered the completed data into the VIM-ASAP system, the DD250 and MSL are available for printing so that they can be included in the shipment. The DD250 is automatically sent to WAWF for payment authorization. DRAFT 15

PROJECT IMPLEMENTATION The following sections provide guidance on project implementation. Project Team Management Project management begins with the commitment to implement item-level RFID technology and includes the decision to conduct the implementation using existing internal resources. These resources are required to support the requirements assessment, evaluate technology alternatives, perform cost analysis and participate in the selection of an RFID solution provider if required. If knowledgeable personnel are not on staff, the manufacturer may consider hiring consulting services experienced in item-level RFID technology to support the implementation project team. SELECT PROJECT GO-LIVE DATE The manufacturer s management team must select a target Go-Live date which is when the first operational RFID item tag is attached to an item. The Go-Live date should be selected based upon the project implementation schedule and should take into consideration such things as production schedule, funding availability for capital expenditures, scope of the implementation, conflicts and impacts on other internal IT projects, personnel availability, and other business related concerns. Each major project implementation task below has a No Later Than (NLT) time associated with it to provide an estimate of when that task should be performed relative to the anticipated Go-Live date. NLT Go-Live Minus times refer to the number of days the task should be completed before the Go-Live date and NLT Go-Live Plus times refer to the number of days the task should be completed after the Go-Live date. For example, a NLT time of Go-Live minus 30 would mean the task should be completed no later than 30 days before the scheduled Go- Live date, and a NLT time of Go-Live plus 30 would mean the task should be completed no later than 30 days after the scheduled Go-Live date. The need to generate contract modification requests may arise at any point during or after the project implementation period. They should be submitted expeditiously to the Government Contracting Officer because they may take time to process. IDENTIFY PROJECT TEAM INCLUDING PROJECT MANAGER NLT GO-LIVE MINUS 85 DAYS The project manager must be pro-active and knowledgeable, participate in every aspect of the project, and be the primary decision maker. The project management team should begin planning and thinking about implementation from its inception. Some considerations during this phase are below. DRAFT 16

Assembly of Project Team Ideally, the project manager should be from the manufacturer s management organization. The project team should include personnel from Information Technology, Manufacturing, Quality, and Shipping operations. The project team may also include the RFID solution provider and consultants. Need for Outside Expertise Many manufacturers do not have the RFID expertise on their staff to handle the technical issues associated with an item-level RFID technology implementation. After reading the guidelines and requirements presented in this guide, the project management team may consider hiring a consultant experienced in RFID item-level technology. Previous implementations have highlighted the need for customized RFID item-level consulting services, but the use of such services has also been costly. Project Implementation Planning PROJECT IMPLEMENTATION PLANNING BEGINS NLT GO-LIVE MINUS 85 DAYS Implementation planning could take more or less than 30 days depending upon the complexity of the implementation and the intensity level of the planning activities. The project team should: Review this guide, contract requirements, final reports from completed implementations, and other item-level RFID technology resources available. Consider current RFID technology in use at the manufacturer (i.e., case and pallet level) and manufacturer information system capabilities. Also consider any planned future corporate updates/changes to information systems, facilities, or manufacturing process that may affect implementation. Assess the current manufacturer s capabilities to accommodate item-level RFID technology. Account for organizational activities, current RFID provider experience, complexity of planned system design, manufacturer s supporting infrastructure, training requirements, and any other issues that may impact the item-level RFID technology implementation. Locate VIM-ASAP credentials (logon ID and password) if the manufacturer is already a VIM-ASAP user, or obtain VIM/ASAP credentials if new to the VIM-ASAP system. Obtaining credentials early allows for time to train on the system and prevents delays in implementation due to waiting for credentials. If the manufacturer s systems already interface with VIM/ASAP, ensure the credentials are known by the project team. Develop a projected rough order of magnitude baseline of item-level RFID technology implementation and operational costs for planning purposes. DRAFT 17

Identify internal technical capabilities and resources that can be used by the project team when needed. The outcome of this planning process should result in an initial implementation schedule that takes into account the factors discovered from the review above. Requirements Assessment CONDUCT ITEM-LEVEL RFID TECHNOLOGY REQUIREMENTS ASSESSMENT NLT GO-LIVE MINUS 55 DAYS The initial planning and research phases should provide all members of the project team a basic understanding of the manufacturing environment, information system capabilities, business processes, and current RFID capabilities. Once this has been achieved, an item-level RFID technology requirements assessment should be conducted. The requirements assessment serves as a basis from which to design the item-level RFID solution and highlights potential issues and challenges that should be addressed early in the project. It will also assist in determining whether the project implementation can be accomplished with internal resources, the existing RFID solution provider, or requires an outside RFID solution provider engaged through a Request for Quote (RFQ)/Request for Proposal (RFP) process. Regardless of who the manufacturer selects to implement the itemlevel RFID technology solution, the manufacturer must ensure that the requirement are fully identified and completely understood. The results and findings of the requirements assessment should be fully documented in a report format to facilitate the communication of requirements within the project team and serve as a resource to develop the RFQ/RFP. The following provides guidance on what and how information may be collected and documented during the requirements assessment phase. Manufacturing Process: In addition to providing a baseline from which to analyze different item-level RFID technology solution concepts, understanding the manufacturing process will be useful for assessing potential issues and challenges of integrating item-level RFID technology into the business process. In addition, it also provides an opportunity to assess the impact of improvements offered by item-level RFID technology. Document the manufacturing process and highlight those operations that may be impacted by the introduction of item-level RFID technology Visual representation of the manufacturing process in flow chart format facilitates communication of the manufacturing flow and supporting requirements. The flow chart should be supported with brief descriptive narratives that explain the requirements and constraints of each process step. DRAFT 18

Documentation of the manufacturing process in flow chart format should include both material flow and interfaces with supporting information systems. Key manufacturing process metrics and measures of performance should also be identified and quantified, when possible. Plant Layout and Infrastructure: Understanding the plant layout and supporting infrastructure is important for assessing constraints on potential technology integration options. Constraints may be driven space limitations and power/internet availability and reliability. Document the footprint(square footage) currently in use, and available, to perform operations associated with: printing of current hang tags and case/pallet labels, applying current item tags, packing, applying case and pallet labels, palletizing, storage, and shipment. Also document the footprint of other operations that may be impacted by the implementation of the technology. Document the location and availability of electrical outlets and internet access points to include wireless access points. This will identify any facility modifications required and ensure that power and internet capabilities are available as needed for implementation. Review existing power, network and internet service provider reliability. If reliability of power supply and/or internet availability are less than robust, this needs to be understood. For those locations where power/internet availability are less than robust, the project team will need to evaluate any proposed solution for associated backup/work around plans for impacts on performance due to the loss of power or internet capabilities. In addition, uninterrupted power supplies should be available for each work station. Current Item/Case/Pallet Tagging/Labeling Processes: Current item tagging and case/pallet labeling should be well documented. This ensures the current requirements, both specified in the contract and in support of the production process, are well understood so that any changes proposed to these processes can be fully assessed. Document the current contractual requirements for item, case and pallet tagging/labeling. Information should include: the information required to be printed on the tag/label in human readable and bar code formats. tag/label size and placement and requirements. Placement of RFID tags/labels may need to be modified to achieve acceptable tag/label read rates. DRAFT 19

tag attachment method. Attachment method of the current hang tag may need to be modified to ensure that the item-level RFID tag is attached using a method to ensure the tag stays on the item until issue. Document the current production volumes of items that are tagged and cases/pallets that are labeled. Also document the surge requirements that are specified in the contract. The item-level technology solution selected should be able to support surge production requirements specified in the contract. Identify and document any exception handling procedures/requirements due to quality audits, QAR inspections, etc. that will require the manufacturer to remove an item from a case, or a case from a pallet, after the item to case to pallet association has already occurred. Information Systems: Current information systems and information flows that support any processes potentially impacted by the implementation of item-level RFID technology should be documented. Document information systems that support production, inventory management, quality, shipping, etc. The following information should be captured. The function of each system and its interface with other systems and processes. The software platform on which the system resides (SQL, Microsoft Excel, COTS software package, etc.) It should also be understood if software modifications to any systems due to the implementation of item-level RFID technology can be performed with internal resources, or the software is a purchased product/service and any changes requires coordination with the software provider. Data elements and formats used for file transfers between systems and report files are performed. These only need to be understood for those systems that are interfacing with functions that may be impacted by item-level RFID technology (i.e., those software systems that provide information to current VIM-ASAP upload). Request for Proposal Development CREATE AND DISTRIBUTE AN RFP TO RFID SOLUTION PROVIDERS NLT GO- LIVE MINUS 50 DAYS The manufacturer may decide to conduct the item-level RFID design and implementation with in-house resources. This can certainly be the case where production volumes are low, item-level RFID integration is simple, and/or the manufacturer has RFID expertise available to design and acquire a system that meets the requirements identified during the Requirements Assessment phase. DRAFT 20

This approach may also be taken in higher production, more complex scenarios with larger manufacturers where robust manufacturing, IT and RFID technical capabilities are readily available. However, most C&T manufacturers will have to acquire the item-level RFID design and implementation services from an RFID provider. To acquire these services, the manufacturer should follow a RFP process to solicit and analyze proposed solutions offered from different RFID solution providers. The RFP should include both specific solution design requirements identified during the Requirements Assessment phase and instructions to respond with complete descriptions of how each requirement is address by their solution design. The intent of the RFP outline provided in Appendix C of this guide is to ensure that RFID solution providers propose detailed descriptions in lieu of yes or no responses. Finally, the RFP should require responses by Go-Live minus 45 days. Appendix C contains a suggested outline for a RFP to acquire item-level RFID technology and may serve as a useful guide to ensure that the necessary and pertinent information is provided to potential RFID solution providers. Using the outline will ensure that all prospective RFID solution providers receive the same information. For firms that plan to solicit contractor support to implement RFID item-level technology, the VIM-ASAP website maintains a list of contractors that have experience with the VIM-ASAP requirements. For firms that would like broader advertisement of their RFP to solicit more responses can use the services provided by the RFID Journal at www.rfidjournal.com and the Association for Automatic Identification and Mobility (AIM) at www.aimglobal.org. Each have mechanisms that will assist organizations in posting requirements and targeting RFID solution providers. Once the RFP is released, the manufacturer may want to conduct a workshop with interested RFID solution providers to clarify requirements. This workshop enables the RFID solution providers to observe the manufacturer s operations first hand and gives the opportunities to gain additional information not in the RFP. Proposal Evaluation and Source Selection CONDUCT A SOURCE SELECTION MEETING BY GO-LIVE MINUS 42 DAYS The manufacturer should receive all RFID solution provider proposals by Go- Live minus 45. The manufacturer management and project teams should review/evaluate the proposals and conduct a source selection meeting. The project team will convene to evaluate all proposals received by the due date. The scorecard in Appendix D may serve as a useful tool to evaluate RFPs. The RFID solution provider that has best satisfied the requirements in the RFP and has demonstrated the capability to successfully implement the propose solution within cost and schedule. Once a selection is made, the selected RFID solution provider should be DRAFT 21

notified that day, and the other offerors should be notified that they were not selected. The scorecard categories and criteria in Appendix D are provided as guidance. Manufacturers are encouraged to tailor the scorecard s categories, criteria, and scoring methodology to suit their needs. For example, a scoring methodology can be as simple as giving a 3 to the strongest responses, 2 to acceptable responses, and 1 the weak responses. The scoring can also be more elaborate with a 1 to 10 scale and include weighting the different categories and criteria as a relative measure of importance. Another key component to the selection criteria are implementation and operations costs. Implementation and operational costs will differ from site to site depending upon a number of variables, including the size of the implementation, complexity of the implementation, available infrastructure, solution provider, personnel costs, production volume, number of pack station, etc. As a result, it is not feasible to provide estimated implementation/operations costs in this guide; however, it is possible to provide the cost categories for calculating the implementation cost. Following approved accounting procedures, costs are divided into fixed (start-up) costs and variable (recurring) costs. Start up costs Hardware cost Software cost Labor, travel, other direct costs Recurring costs Cost of RFID item tags per month (Projected number of tags per month Cost of each item-tag) Hardware support Software support Subscription fees Other support costs, such as printer ribbons. Technology Implementation and Operations The technology solution implementation consists of the RFID solution provider ordering and receiving the equipment, installing hardware and software, and testing and training. It also involves making any changes to internal information systems and establishing any system interfaces with the selected solution. Solution configurations will vary depending on a manufacturer s operations, product and facilities. Basic configurations include some or all of the following: RFID readers, RFID antennas, mounting hardware, RFID hand held terminal(s), workstations, server, DRAFT 22

RFID tag and label printer(s), software suite (turn-key with minor business logic configuration) with DoD contract data download and shipment upload capability. IMPLEMENTATION ACTIVITIES OPERATIONS The project team will work directly with the RFID solution provider once selected to successfully implement the technology solution. It is likely that the design solution may need to be adjusted during implementation due to unforeseen issues/challenges that may arise. The following are common activities during this phase: Finalize and sign Contract Agreement NLT Go-Live minus 40 days Finalize required equipment NLT Go-Live minus 38 days Order equipment NLT Go-Live minus 37 days (Note: some equipment may have a longer lead time to acquire) Receive equipment NLT Go-Live minus 7 days Install and test equipment and software NLT Go-Live minus 5 days Initial user training NLT Go-Live minus 3 days Operations begin at Go-Live, when the first operational RFID tag is attached to an item of clothing and includes data gathering and problem resolution. Begin item tagging Go-Live Begin data gathering collect tag performance data as well as cost and lead-time data from the new implementations to measure progress and to identify areas for improvement Go-Live Begin resolution of issues as they arise and provide additional training, as necessary Go-Live Follow-up NLT Go-Live plus 20 days Continue to resolve issues and provide additional training, as necessary NLT Go-Live plus 20 days DRAFT 23

Appendix A VIM-ASAP VIM-ASAP is a collection of web applications used by apparel manufacturers to track production status, prepare invoices, ship items, and create all required documents and electronic transactions from a single source of data, the ARN Asset Visibility System (AAVS) DataMart. AAVS DataMart integrates the data from multiple legacy systems and VIM-ASAP provides the web applications that fill voids in the supply chain data. Generally, manufacturers interact with VIM-ASAP through the web portal at https://vim.dla.mil. If you do not have access to the.mil domain, you need to contact the VIM-ASAP Help Desk at 1-888-940-7348. The help desk is open from 7:00 a.m. to 4:00 p.m. (Pacific Time), Mondays through Fridays, except holidays. There are three crucial computer/hardware requirements that must be satisfied in order to exchange data with VIM-ASAP: Establish an Internet connection through an Internet service provider. Ensure that your computer has Microsoft s Internet Explorer version 6.0 browser, or later, installed. VIM-ASAP may not operate successfully with other browsers, such as Mozilla Firefox. Acquire an ink-jet or laser printer for printing the forms and bar codes produced by VIM-ASAP. Users need to identify an administrator as the primary point of contact (POC) with VIM-ASAP. The manufacturer s administrator will receive a user ID and password. No one can update or access a manufacturer s VIM-ASAP web pages without being authorized by the manufacturer s administrator. If you misplace your password or have any other problems, call the VIM-ASAP Help Desk at 1-888-940-7348. The VIM_ASAP Secure Shell (SSH)/Secure File Transfer Protocol (SFTP) site transitioned from the.com domain to the.mil domain. This move changed the way RFID files are uploaded to, and contract data downloaded from, VIM-ASAP. Current VIM-ASAP site information is summarized in Table A-1. DRAFT A-1

Table A-1. Summary of VIM-ASAP Interface Information VIM-ASAP Interface 1. URL vim-ftp.dla.mil 2. Authentication method User ID and Public Key Information 3. Temporary extension Upload to temporary extension, rename when upload is complete 4. File name standardization PrimeCAGE_SiteCAGE_yyyymmddx.ftp Or PrimeCAGE_SiteCAGE_yyyymmddx_wawf.ftp 5. Contract data upload/download From SSH/SFTP in XML format The information in Table A-1 is further described: 1. URL: the VIM-ASAP website address. 2. Authentication method: the server requires public and private keys for account authentication purposes. Each user has to have public/private key pairs. To accomplish account authentication, the private key needs to be installed on the manufacturer machine(s), and the public key needs to be communicated to the SSH server administrator. It is a good idea to have a plan, in case the client machine goes down; if the private key is not backed up, a new key pair will need to be generated, and the new public key will have to be associated to the SSH account. Since all actions on the SSH accounts require action by the SSH administrator, expect any change to take time to implement. 3. Temporary extension: with the new server, users need to upload the file(s) with a temporary extension (e.g.,.tmp, or.part), then rename them on the destination, so that the process that picks up the files does not try to pick up files that are still being uploaded. 4. File name standardization: users need to include the CAGE code of the prime contractor (C&T contractor), an underscore character, the CAGE code of the ship from site, an underscore character, the fourdigit year, two-digit month, and two-digit day, followed by a one character sequence indicator, then, if the file is based on the wide area workflow (WAWF) COMBO_UDF format, the string _wawf, and in all cases, end with.ftp. 5. Contract data upload/download: Files are uploaded to, and downloaded from the SSH/SFTP site - vim-ftp.dla.mil. Any software that supports that protocol may be used and there are several free SSH/SFTP clients that will interface with the SSH/SFTP site: http://www.bitvise.com/downloads/tunnelier-inst.exe http://winscp.net/eng/download.php http://www.openssh.org DRAFT A-2

http://the.earth.li/~sgtatham/putty/latest/x86/pscp.exe http://the.earth.li/~sgtatham/putty/latest/x86/psftp.exe The user is responsible for any conversion required to import the data into the manufacturer s in-house system. The system downloads a file containing the current contract data (from ActiveContracts_UPC report) in your system s home directory every evening. It is important to use extensible markup language (XML) parsing methods to process this file as the content (order and number of fields) of this file may change without notice. DRAFT A-3

Appendix B Fields Required by VIM-ASAP for File Upload The Table B-1 items typed in red are required for lines 1-17, 28, and 29. Lines 11 and 28B are used as needed. Table B-1. Fields Required for VIM-ASAP File Upload Sample line Description 1*SPM1C107D0009^0194^ Contract and delivery order 9*0B419^ Prime contractor CAGE 11*1TKK5^ Ship From CAGE; optional if same as Prime 13*SD0131^ Ship To DoDAAC 15*0005^ CLIN 16*8415015364227^ NSN 17*540^ Qty shipped on CLIN from line 15 above 28*RFID^2F02031544B4B3500007A47D^ Packing Data; Pallet level RFID 28A*RFID^2F12031544B4B35000076591^ Packing Data; Case level RFID 28B*RFID^2F22031544B4B35000076232^ Packing Data; Item level RFID 29*0005^1^ CLIN and Quantity 28B*RFID^2F22031544B4B35000076233^ Packing Data; Item level RFID 29*0005^1^ CLIN and Quantity More lines 28, 28A, 28B, and 29 as required =END= In the example above, material is packed in cases that are placed on pallets. Further, material is marked to the item level; therefore, all lines numbered 29 specify a quantity value of 1. If, as an example, material is packed as described above, but marked to the case level only, there would be no lines numbered 28B, and the lines numbered 29 specify the quantity of items packed in the case. DRAFT B-1

Appendix C RFP Outline for an Item-Level Technology Implementation The following outline (Table C-1) serves as a useful guide to ensure that the necessary and pertinent information and requirements are provided in the RFP/RFQ. Using the outline will ensure that all prospective solution providers receive the same information. Table C-1. RFP Outline Description Download Data from VIM/ASAP RFID Item Tag Printing Requirements and Capabilities Sought Download current open DLA Troop Support contracts, including item information Daily downloads via file transfer protocol Ability to pull contract data for sub CAGE codes, if necessary Highly desirable for solution provider to have previously demonstrated this capability System has automated synchronization with VIM/ASAP Average and surge numbers of RFID item tags required per month Prefer to convert current hang tag required by contract to RFID Item tag; converted tag to have same information as current hang tag plus RFID inlay with unique RFID tag ID number unique hexadecimal serial number (human readable and bar code) Item-level RFID Tag ID will follow the EPC or DOD-96 bit tag ID construct If unable to convert current hang tag, the RFID item tag must be attached in addition to current hang tag RFID item tag recommended to be L x W and will contain the unique RFID tag ID number in human readable and bar code formats The system should have a robust system for preventing duplicate tags from being produced The system should have controls on archived tags so they cannot be created/used again Automatic updates to solution software are required to ensure continuation of successful printing operations The system should provide controls on the print file naming convention to maintain integrity of print files Verify actual tag printing at various stages to ensure duplicate tags do not enter the supply chain Ensure that encoded/bar code/human readable information are generated from the same source DRAFT C-1

Table C-1. RFP Outline Description RFID Case and Pallet Label Printing Item Packaging Validate RFID Item Tags and Link to RFID Case Label Exception Handling RFID Case Label to Pallet Label Linkages Requirements and Capabilities Sought Average and surge numbers of case and pallet labels required per month RFID case label required to be L X W RFID Pallet label required to be between L X W Case and Pallet Label RFID tag ID will follow the EPC or DOD-96 bit tag construct The pallet tag will include the words pallet tag in human readable form and must be accompanied by a VIM-ASAP produced MSL Require the ability to print the case and pallet RFID labels in batches or on demand and to print these labels on the production floor, if desired Case level RFID label formats are defined in MIL-STD-129P, change 4 @ http://www.acq.osd.mil/log/rfid/mil-std-129pch4.pdf ( Pallet labels and MSLs will be attached in accordance with MIL-STD-129P,change 4 found on the website above A universal product code, or UPC, bar code will be printed on each case label State requirement for solution to integrate with current packing process State item hang tag placement requirements and attachment method Require solution to fit in current physical limitations o Production area o Item tag area o Pack area o Shipping/receiving area Provide production and staffing limitations for item tagging and case and pallet labeling RFID item tags to be associated with case labels either during the packing process or after case has been sealed RFID case label placed on case before packing or after packing Specify standard case quantities for each NSN as part of data downloaded in Item 1 Specify Validation logic, such as: o If quantity in case equals case quantity based on manufacturer s/third party logistics provider s RFID case label accept o If quantity in case does not equal case quantity based on manufacturer s/third party logistics provider s RFID case label reject for correction o If there are multiple NSNs inside the case, regardless of the quantity reject for correction Specify time requirements to read item tags within a case (Usually between 4 and 6 seconds) The solution design should identify an isolation zone( no tag zone ) required to eliminate undesirable reads System should identify if any unknown tags are read Specify procedures for physically replacing items within a case after the RFID item tag has been linked to the RFID case label Specify procedures for regenerating a tag that has been damaged, destroyed, or lost Electronically link RFID case labels to RFID pallet labels Electronically link RFID pallet labels to contract/delivery order and shipment number Specify option to configure the system to make the link on the shipping floor DRAFT C-2

Table C-1. RFP Outline Description Upload Data to VIM/ASAP Requirements and Capabilities Sought Data uploaded to VIM-ASAP includes: o DD Form 250 shipment data o RFID pallet label data for each shipment o RFID case label data linked to correct pallet label o RFID item-level data linked to correct case label System will Identify and replace any duplicate tags and prior to the upload to VIM/ASAP Deployment Order, install, and test equipment Install and test software Provide end-user training and documentation Provide post implementation support Perform data gathering to determine RFID item tag performance DRAFT C-3

Appendix D RFP Evaluation Scorecard This scorecard (Table D-1) may serve as a useful tool to evaluate RFPs. Table D-1. Scorecard for RFP Evaluation Criteria Category Solution provider #1 Solution provider #2 Solution provider #3 Description of functionality How clearly are the details explained? Proposal addresses RFP EVALUATION A. Item-level visibility B. Item-level accountability C. Customizable/scalable solution D. Quality Proposal addresses RFP CAPABILITIES A. Download open contract data from VIM-ASAP B. Commission and print itemlevel tags in accordance with user requirement C. Commission and print case and pallet tags D. Integration into manual packing process within space specified E. Item to case link F. Exception handling G. Case to pallet link H. Upload to VIM-ASAP Proposal addresses timeline Does the proposal meet the RFP implementation timeline? Cost Startup Ongoing Price quote: does proposal address 1-11 in RFP? Payment options Solution architecture Hosted vs. local Totals DRAFT D-1