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e-Business in the chemical, rubber and plastics industryExhibit 5.5-3: Saving costs by reusing RFID tagsThe attachment of the transponder is accomplishedthrough a flexible tag carrier in the tyre, which can beeasily pushed aside when the tyre undergoes repairs.The tag carrier is necessary to enable reutilisation of thetags.The labels with the tags must fulfil several requirements: They have to operate accordingto ISO 15693 with a frequency of 13,56 MHz. The chip must have a minimum storagecapacity of 128 bytes. Furthermore, the labels must be flexible, so that they can adjust tothe shape of the tyre. The transponder must be self-adhesive, in order to simplify theattachment to carriers. Since the size of the antenna has a direct influence on itscapturing range, a minimum size of 45 mm x 70 mm was necessary.Further components of the RFID solution included:A Long Range Reader to read or write a tag from a distance of up to 500 mm.The antenna: The first antennae were installed above and below the bands, sothat the labels that are positioned parallel to the antenna could be read. The size ofthe antenna had to be of at least 800 x 600 mm (this also determines the range).Furthermore, it had to be designed for a capacity of at least 4 W. Three additionalreading stations were installed to enable a better product control within the bandcontrol.The hand-held-scanner: The RFID-hand reader is used at all manual workstations.It is possible to either convey the reading results over a keyboard loopdirectly to the attached terminal, like with the barcode reader, or to connect to acommunication module of the programmable logic controller. In a broad expansionstep, it would be conceivable for example to exchange the hand reader against astationary device, which would have advantages of further automation.Implementation time line and costsThe project has been planned and conducted in three phases, two of which have beenaccomplished:the planning phase, with a duration of approximately 1.5 years (completed)the implementation phase (approximately 1.5 years, completed)the optimisation and development phase (ongoing, to be completed by the end of2008)The costs for the replacement of stationary devices as well as the substitution of themanual measuring devices amounted to about € 60,000.Impact and lessons learnedWith the introduction of the RFID-System, Michelin Reifenwerke in Homburg was able tooptimise the work flows in tyre retreading. A major advantage of the RFID system overthe former barcode system is that RFID tags are re-writable, i.e. additional data can beentered (or data changed) during the production process, and not only in advance. This163
e-Business in the chemical, rubber and plastics industryincreases significantly the flexibility of the system. For this reason, no read-only tags areused in this project.The company has eliminated the use of barcode labels in most areas of tyre retreading.RFID-reading devices were installed at all stations in this business area. Intervisibility forreading is no longer a requirement, and additional information can be stored. Thecompany feels that this has had a very positive influence on the management and controlof the production process. During the implementation phase of the project, specialantennae have been developed for the Long Range Reader, which further improved thereadability of the transponder and is expected to reduce costs.5.5.2 Case part 2: Use of Digital Personnel Records at the personneldepartment in KarlsruheBackground and objectivesPersonnel departments are often confronted with a challenge that is typical of office work:mountains of paper files have to be processed and archived, with inherent difficultiessuch as missing pages or misplaced files. At large companies, where personnel recordsof thousands of employees have to be managed, good document management becomescritical. The central personnel office of Michelin Reifenwerke in Karlsruhe hasexperienced significant challenges in this regard. Files were not available because theywere lent out to other departments or sent as a copy, or it was not possible to accessdocuments from different locations by several employees at the same time."We had the problem that people, documents and other information sources were locatedat different places. Over time, this situation became increasingly difficult to manage“, saysMs Renate Haessler, the human resources platform director. "Then we were confrontedwith a situation where many employees went into retirement within a short period of time.All of a sudden, we had to process mountains of retirement files, and we just did not knowhow to cope with this flood of documents. Moreover, a lack of space worsened theproblem. Finally, this was the motivation to start exploring whether a digital documentmanagement solution could improve the situation.“The replacement of traditional personnel records through a "mixed mode", i.e. usingdigital information from existing IT systems while keeping extensive paper files in parallel,is a common practice in many companies. However, this is often not a satisfactorysolution. Laborious searches for information or documents are common symptoms thatslow down personnel processes. As a result, notably decentralised organisations have ademand for systems that enable a faster and more transparent access to thosedocuments that contain information about "the most important resource of a company –the employees". In this situation, companies often start to search for modular, ITsupportedpersonnel management system with a central instrument.The personnel department started to prepare its ICT project in 2004. The project wasthen implemented in 2005 within a period of about six months.The ICT solution: Digital Personnel RecordsAfter scanning the software market in Germany, Michelin Reifenwerke soon identified ane-business solution that promised to help the company solve its problems: the "digitalpersonnel record“, based on the SAPERION ECM SUITE by Henrichsen AG, offers the164
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