Benefits of RFID for slab and Coil Logistics:

Implementing RFID in slab and coil logistics results in several benefits in the following key
areas:
Asset use: Radio-frequency identification speeds up the identification of tagged items,
increasing throughput and optimizing the use of expensive handling equipment such as
forklifts and cranes. Time gained can be so significant that it is possible to eliminate machines
and reduce attendant capital investments and personnel costs
Operational efficiency: Radio-frequency identification improves operational efficiency in
many ways including improved collaboration with trading partners, faster product
localization and reduced manual effort.
Safety and security: Automating product identification and tracking removes people from
physically dangerous situations and averts the potential for product confusion. This in turn
reduces risk exposure.
Customer service

Standardization will be key to success and to the realization of the many benefits. It is
paramount for the following reasons:
Customer acceptance: Most steel companies sell their products (largely coils) and
intermediary products (slabs and coils) to a uniform customer base in the automotive and
industrial segments. If steel producers adopt diverging RFID solutions to identify slabs and
coils, this places the onus on customers to work with multiple systems. Conversely, as has
already occurred in the retail, military and pharmaceutical sectors, if the steel industry
proposes anything other than a standardized approach, customers may simply mandate
solutions, leading to unnecessary complexity, redundancy and cost for steel companies.
Flexibility: By implementing a standard for solutions, the integration of new customer
systems will be far easier than if a customized solution for every unique customer scenario
were necessary. Standards also allow customers to choose among different suppliers and
reduce their dependency on a single one. In other words, the necessarily tight integration of
customer and supplier systems will not become an artificial trade barrier.
Availability and cost: Using RFID for slab and coil logistics requires specialized solutions,
which either do not yet exist in a production-ready form or which are at least more expensive
than products used by other industries. While designing RFID products appropriate for
handling steel is technically feasible, many vendors will only do so given sufficient sales
volumes. As a result, the steel industry should focus on adopting a limited number of
standardized solutions.
No duplication of effort: There is no point in duplicating efforts and individually repeating
technical mistakes. Far greater benefits would be realized by standardizing systems across the
entire supply chain, from producers to end-use manufacturers.

The steel industry must proactively develop standards for RFID-enabled slab and coil identification. A
wait-and see attitude is strongly discouraged because implementation times would increaseas would
the costs and risks associated with responding to diverging customer requirements.
A companys RFID implementation will divide into two types of investment:
1. A radio-frequency identification platform, including middleware licenses, servers, and
operations
support considered a common service- cost to the companycomparable to general IT
infrastructure and support.
2.Multiple applications, including custom software development, process integration,
dedicated consulting, RFID tags for developing specific RFID solutions, that will be charged
to the business / the respective project on a case-by-case basis. In other words, if a company
implements a common
RFID platform that could be used by many different RFID applications across operations,
that platform becomes more valuable as more applications leverage it.

Performance Improvement Metrics

A) Asset Use
This scenario describes the reduction of necessary working capital and fixed assets using
RFID across the internal supply chain
Value Lever Improvement Metric
Safety stock %Working capital reduction
Maintenance of Fixed Assets % Fixed Capital Reduction
 Utilisation of Fixed % Fixed Capital Reduction Ratio: Savings due to
Assets(Forklifts and trailers) Improved Asset use/cost of
RFID implementation

B) Operational efficiency
Radio-frequency identification technology can improve the operational efficiency of a steel
company in many ways. Among the more obvious are faster product localization and
reduced labour costs.
Value Levers are as follows
1. Improved stock management
2. Supply chain visibility and insight
3. Detention / demurrage cost reductions: % cost Reduction, % reduction in lead time
4. Increased productivity /simplified labour: Reduction in no. of FTE/labour cost reduction
Value Lever Improvement Metric
Improved stock Ratio: Savings due to
management Improved Operational
Supply chain visibility and efficiency
insight /cost of RFID
Detention / demurrage cost % cost Reduction, % implementation
reductions reduction in lead time
Increased productivity Reduction in no. of
/simplified labour FTE/labour cost reduction

C) Safety and security

Value Lever Improvement Metric

Improved Worker safety Ratio: Savings due to safety
Elimination of product mix- % reduction of lost sales, and security/ cost of RFID
ups % reduction of product implementation
buybacks
Overall ROI of RFID project can be calculated as follows and be reported
Total cumulative savings: A) + B) + C)
Total cumulative costs
ROI of RFID project
Prerequisites for Implementation of RFID
Slab and coil products proceed differently through their lifecycle and this impacts the use of RFID. For
slabs, RFID is typically limited to streamlining the internal supply chain, while using RFID for coils
extends the benefits to end customers In either case, for RFID to deliver on its promise, it is essential
that all affected internal and external systems can gain access to tracking information as well as relevant
product information. With this type of data available, steel companies can gain greater insight into their
supply chains as well as automate identification processes that traditionally have been performed
manually.
From a high-level perspective several technical standards are required to make this happen:
1. Global identification system: A commonly agreed RFID numbering scheme. This scheme must
enable globally unique identifiers and at the same time allow a companys internal numbering
schemes to limit the complexity and effort with respect to adapting existing IT-systems to
accommodate the change.
2. Shared data: A look-up service allowing the location of relevant information sources with respect to
a particular slab or coil.
3. Common access method: A common query method and standard interface for accessing product-
related tracking information once a source is determined.
4. Security: A means of securing product information so that only authorized parties or IT-systems
can access the appropriate information for which they have security clearance.
Attempting to build a global IT infrastructure for the steel industry that implements the necessary
technical standard from scratch would be a huge undertaking. Fortunately, an existing solution,
generic enough to be adapted to a steel context, already exists. It is called the EPCglobal Network.
Five key components make up the EPCglobal Network

Use of technology in Warehouses in steel sector: Best Practices

Case1
Challenge
POSCO, one of the worlds leading steelmakers, has deployed an RFID-based logistics system
to streamline critical operational processes, provide its customers with real-time product
information and improve packaging and shipping accuracy. After all, when you manufacture
multi-ton metal parts, customer returns are no easy or inexpensive matter. However, the
company faced a special challenge in its quest to harness RFID technology for efficiency gains:
It would be deploying its logistics solution in a pervasive metal environment that interferes
with RF signal readability.

Solution: Solution provider: SMARTRAC

POSCO teamed with SMARTRAC to design a proprietary RFID-based logistics system that
leverages modified DogBone UHF RFID tags, hand-held industrial PDAs, fixed RFID
readers attached to cranes and placed at factory gates, enterprise resource planning and
manufacturing execution systems and a server. Manufactured metal coils are tagged with
custom DogBone tags that have two antennas and are placed inside heavy metal coils,
perpendicularly to the items curved surfaces. Applying the RFID solution as a flag tag, or
standing upright tag, ensures their readability, while the DogBones paper-based delivery
format keeps RFID tags affordable for large-scale inventory deployments. Items are tagged
during packaging and read when moved to the warehouse, during storage and again as they
are packaged for shipment.

Success
By implementing the RFID-based logistics system, POSCO has automated the inspection,
packaging and shipping of its metal coil products, eliminating errors that occurred previously
with manual processes. Meanwhile, customers can instantly access real-time data they need
to plan their own production operations because the RFID system integrates seamlessly with
their own planning solutions via the internet. By providing easy access to better data, as well
as more accurate shipments, POSCO has boosted customer satisfaction.

Case2
Seamless Position Detection for Cranes & Transport Vehicles and Reliable Anti-Collision
Systems
Challenge
Metal products such as slabs, coils, heavy plates and metal sheets are usually stored in large
indoor facilities and on outdoor grounds. Complex sites and profuse steam and smoke, in
addition to vibrations and extreme temperatures, place high demands on sensor technology
installed in these harsh steel environments.
Solution: Solution Provider: Symeo
To meet these challenging requirements, Symeo developed a range of sensor systems
designed for distance measurement, position detection and anti-collision applications, as well
as for WiFi-independent, wireless data capture and transmission solutions. Symeo products,
which are suitable for any type of transport vehicle including cranes and slab carriers, can be
used in indoor and outdoor environments. The solutions are robust, maintenance-free, easy
to install and feature extended operating ranges.
Symeo's precise position detection systems are deployed around the world by the metal and
steel industry in a variety of applications:
Anti-collision
Automated crane management
Logistics and transport management systems

Success story
Collision warning system at Voestalpine Stahl
The challenge
Vehicles and cranes move at a fast pace in the hot slab storage area at voestalpine Stahl GmbH.
A large number of cranes and heavy-duty vehicles move around in a relatively confined space.
From an occupational safety perspective, there was a need to provide drivers and crane
operators with technical support in order to avoid collisions that may have serious
consequences.
The solution
The solution is a collision warning system based on Symeos LPR. The permanently-installed
LPR transponders and LPR modules on every crane and slab transporter transmit the
participants position to the warning system and radio it to the other participants. This
information is used to calculate movement directions and speed locally, creating a dynamic
safety zone around each vehicle that controls the warning signals.
The projects success
An easy-to-understand visualization of the vehicle position and surrounding obstacles on six-
inch displays provides excellent orientation for drivers and crane operators. A tiered system
with visual and acoustic warnings alerts participants to any collision dangers. In cooperation
with the customer, the system was set up in a practice-oriented manner so as not to
unnecessarily disturb production and slab transporting with superfluous warnings. The
decentralised collision warning system at voestalpine is proving to be highly robust, failsafe
and maintenance-low, and it is a valuable addition to driver cabs across the steel works

Other companies employing similar technology:

AG of Dillinger Httenwerke
Arcelor Mittal
China Steel Corporation (CSC)
Gerdau S.A.
Hoesch Hohenlimburg GmbH
Salzgitter AG
Severstal International
Tenova
ThyssenKrupp Steel AG
Case3
Solution Provider: PSI Metals

Be it slabs, heavy plate, billets, coils or other products - PSImetals Logistics optimizes product
stocks, supports the improved utilization of existing warehouse capacities, optimizes all
internal transports at both ends of production facilities, and makes decisions for the optimum
use of the means of transport available in each case.
PSImetals Logistics covers the following areas:

Stock management
Management of transport and driving orders
Transport optimisation for the material supply and removal to/from the lines
Shipping
Optimisation of external transports to customers and service center

Warehouse Pictorial description

The user guidance in PSImetals is consistently aligned to the logistic processes in metals
production. The presentation of yards and materials can be shown optionally in two or three
dimensions. The realistic graphics combined with the optimisation methods of
PSImetals result in transparent processes and faster workflows in production and logistics.
Views & Usage: 3D-Reality Combined with 2D-Overview
The free choice of yard presentation whether in 2D or 3D style combines the advantages of
both and offers a maximum visual support for decision-making.
Advantages of a three-dimensional presentation:

Realistic image of the actual inventory and warehouse situation

Virtual walks through the warehouse and fast locating of wanted materials using
coloured highlighting
Expanded views for crane operators using
o displayed filtering results for material properties, e.g. temperature of slabs
o coloured view of the target position for a material by mouse-click
o pre-defined camera perspectives to illuminate far sided areas
Advantages of a two-dimensional presentation:

Clear overview for visualising complex warehouse situations

Secured presentation of detailed information independent from real material
dimensions, e.g. for materials in stack
Authentic yard view and virtual walks through the warehouse using 3D presentation

Clear overview in 2D presentation for the same yard area

Case4
Technical Warehouse Management systems
Challenges in metal industry warehouses:
Unlike other storage systems such as high-bay warehouses, for instance, warehouse
management in the metal industry is very complex. There are no uniform rack heights, ABC
zones, or standardized transfer points for transportation means and material handling
vehicles. A suitable storage location must be identified for each storage item individually. This
requires taking the current warehouse situation and a number of different restrictions into
consideration.
Solution provider: 3tn-TWMS/Metals
Salient Features:
3tn has designed the TWMS/metals specifically for the metal industry. This system is
prepared for any customary product, transportation means, and warehouse
configuration.
The TWMS/metals controls manual and automated transportation processes as well
as fully automated warehouses. In doing so, it optimizes interconnecting or even
plant-wide warehouse utilization and efficiently uses transportation means such as
cranes or transfer cars. On one side, it communicates with ERP and MES systems and
on the other side with basic automation and sensors.
The TWMS/metals visualizes the current warehouse situation from any perspective
in real time. It displays not only the current warehouse situation but also a wealth of
additional information. The operator can detect at a glance, if a coil is on hold, if a slab
may be stored at a certain location, or if a restriction is violated
The system centrally manages warehouse processes and automatically tracks
inventory. This ensures consistent accuracy of the database reflecting the actual
inventory, thereby reducing the time spent searching almost to zero
Benefits:
Optimum use of warehouse space for each product
Short shipping times
Efficient deployment of personnel and means of transportation
No damage from improper storage
Improved work safety
How it works:
1. When an object such as a slab or a coil is to be transported, the TWMS/metals receives
information from production control, the MES, or ERP. The system identifies the
optimal storage location, the most suitable combination of transportation means, and
the optimal route to the storage location. In doing so, it considers the current
warehouse situation, the availability of resources, as well as optimizing and restricting
transportation and warehouse rules. Then, the TWMS/metals issues the order to the
vehicle operators or the automated transportation controls such as automatic cranes
or coil ferries. As soon as the order has been carried out, the TWMS/metals reports the
order as finished to the higher-level systems. The TWMS/metals is a user-friendly
system. Clearly arranged operator guidance with context-sensitive menus make
operation easy, even for inexperienced users. The interfaces come with many different
language settings; additional languages may be integrated within a central table.
2. Instant Information: The warehouse visualised in a virtual representation
The TWMS/metals visualizes the current warehouse situation and means of
transportation in a realistic real-time 3D view from any location and from any
arbitrary viewpoint. This, for example, facilitates a virtual tour through the
warehouse.
Furthermore, a wealth of additional information, e.g. ID-numbers, material
data, or on hold flags can be accessed by a click of the mouse. By design, the
TWMS/metals is a mobile system that also works on cranes, in vehicles, and
 with handheld terminals. This enables the crane operator to obtain a real-time,
three-dimensional view of what is directly below his crane on a monitor, and
facilitates precise positioning of objects being stored.
The TWMS/metals is a system that can anticipate and prevent restriction
violations and damage to storage goods. For instance, if the crane operator
approaches an unsuitable storage location, an alert will immediately be issued.
As a result, damage and additional costs are avoided.
Furthermore, visualization contributes to work safety. In many cases, the
presence of a shop floor operator in the warehouse is no longer necessary, as
crane and vehicle operators work on their own

In identifying suitable storage locations, the TWMS/metals goes into such a

level of detail as to calculate, for instance, the resulting load on the coil skids
during the stacking of coils. This ensures security and stability in the storage
of each coil in its desired position.

Case5
Tailored packing solutions for both coils and slabs can be employed
Rationalization of packing requirement and philosophy for coils
Rationalization of sheets packing philosophy.

Vertical storage of coils and slabs in warehouses

The proper choice of vertical storage system(ASRS) with the warehouse management system
ensures a dispatch/ transportation smoothing feature to its transport routing and
scheduling software to avoid bottlenecks in the steel plant feeding system or warehouse
dispatch