FOR IMMEDIATE RELEASE

CONTACT:

Danette Ward
512.494.5254
ward@fiatech.org

New FIATECH Report Documents Materials and Asset Tracking Using RFID

AUSTIN, TX, October 8, 2004 — FIATECH has just published "Materials and Asset Tracking Using RFID: A Preparatory Field Pilot Study", which documents a field test of RFID technology in logistics operations conducted in response to the ChevronTexaco Marine and Transportation group's interest in improving the tracking of critical materials and supplies between shorebased warehouse operations and offshore field locations.

"Working with FIATECH allowed us to get first hand experience with a new technology at a fraction of the cost of doing it ourselves," explains Ignatius Chan of ChevronTexaco. "We were able to move much faster on the learning curve than we would have otherwise."

The principal objectives of this pilot study were twofold: to assess the ability of RFID technology to significantly improve the efficiency, accuracy, and accountability associated with the movement of critical materials and supplies; and gain knowledge about the practical use of RFID technology and its implementation in a real life industrial application.

Conducted in collaboration with the ChevronTexaco Energy Technology Company, the FIATECH Smart Chips Project, Phase IV Engineering, and the Tulane Consortium for Supply Chain Management, the pilot study analyzed thirteen shipments with a total of 154 specific items, tracked during transport between the shorebased terminal and the offshore platform. Specifically, the report finds that the RFID technology was relatively easy to implement and functioned well, even in harsh marine weather conditions. When used in accordance with the relatively straightforward pilot project procedures, the RFID system accurately identified 100% of tagged items in each shipment in which the system was used. Marine weather conditions did not affect performance of the system. In some instances, the highly metallic environment on the offshore platform caused problems reading all RFID signals; this was resolved by changing the position of the reader with respect to the RFID tags. Other less significant technical issues encountered in the pilot could be easily resolved by minor adaptation of the RFID systems or procedures.

“The principal lesson from this study is that technology invites and enables new thinking about how we execute work processes," states Ric Jackson, Director of FIATECH. "Adherents to Lean Construction principles will not be surprised by this. What’s especially exciting about this field test is that it shows how we can use existing off-the-shelf technology to provide valuable money-saving and time-saving information, and also as a driver for improving work processes.”

This study illustrates how RFID technology can enable more stringent, robust and error resistant work processes in tracking and documenting offshore shipments. Additionally, the study identifies specific work process improvements that could be made with or without the technology. However, RFID technology would allow faster, easier, and more certain accountability while reducing the number of causes for misplaced, misdirected, lost, and stolen items. Moreover, benefits would be even greater if the technology was implemented by suppliers upstream of the shorebase terminal.

The FIATECH Smart Chips project offers its sponsor companies the opportunity to conduct low-cost or no-cost pilot trials of cutting edge technologies, as well as monthly informational workshops to stay informed about technology developments affecting the construction and operation of plant sites.

FIATECH members can obtain copies of the report in the Member's Only section on the FIATECH web site. Non-members can purchase a copy for $375.00 by contacting Janie Bushn in the FIATECH office at 512-232-9669 or bushn@fiatech.org.