Value models and informed legislation lookto grow technology adoption rate
By Staff -- Manufacturing Business Technology, 9/1/2006 12:00:00 AM MDT
EPGglobal releases more ROI models
EPCglobal released three more of its vertical-industry RFID Value Models for assessing potential ROI from solutions deployments. In addition to pre-existing models for health care and consumer packaged goods, those for the chemical, aerospace, and retail pharmacy industries offer spreadsheet-based, preprogrammed calculators to input real-world data on costs and net-present value, among other variables. The models were developed in conjunction with Stanford University and the Netherlands' University of Eindhoven.
"The EPC value models are industry-specific financial-planning tools for use during business-case development for electronic product code and RFID," says Bob Celeste, EPCglobal U.S. director of adoption tools. "They help identify where businesses will see the most benefit form EPC/RFID implementations."
Boeing suppliers cut costs
Boston-based AMR Research says Boeing is encouraging component suppliers of its new 787 Dreamliner to adopt RFID to reduce costs and eventually speed the process of replacing parts for jets in service and parked in terminals.
With more than 80 percent of the component parts for the advanced aircraft coming from partners—up nearly 30 percent from previous models—"Boeing and its supply base decided to use RFID to track parts from manufacture to installation, and beyond to maintenance and repair," reports Kevin Reale, AMR research director for discrete manufacturing.
"At this point it is voluntary among suppliers," adds Reale. "They're piloting it initially for replacement parts, but will eventually expand it to other programs. It's aimed at reducing the total cost of operations, and the overall cycle times associated with replacement activity—as much as 20 percent—by enabling workers to walk onto aircraft and quickly find the part that needs to be replaced."
FDA updates anticounterfeiting mandates
A much anticipated report from the Food and Drug Administration (FDA) Counterfeit Drug Task Force released in June updates the agency's drug anticounterfeiting initiative, effectively lifting the hold on compliance for providing chain-of-custody or pedigree requirements of the Prescription Drug Marketing Act of 1987.
Slower-than-expected adoption of RFID was responsible for suspension of the timetable for compliance. Though the act does not specify use of RFID, the FDA anticipates that new technology represents a viable means of delivering pedigree documentation. The June report views RFID as an important element of defense against counterfeiting, and recommends continued efforts to apply it.
Gathering legislative interest in RFID
Misinformation about security and privacy issues prompted 13 states—most notably California and Wisconsin—to enact restrictive legislation concerning RFID technology. Several federal legislative initiatives are in the works, yet they too pose potential obstacles to RFID adoption.
To develop a more informed legislative agenda, the U.S. Senate RFID Caucus was launched in Washington in mid-July to attract senators, solutions vendors, and other industry participants.
"We want government to focus on bad behavior, not the technology," says Tim Heffernan, director of government relations and public policy for auto-ID solutions supplier Symbol Technologies. "There's a lot of misconception around privacy. The industry has come up with ways to augment the technology as these concerns arise. You shouldn't ban the technology before it has an opportunity to mature," he says. "[We should] focus on the problems and [work toward] a solution."
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