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The oil and gas indus try is fa c ing i ncr easi n g pr ess ure t o i mprove o p e r a t io n a l a n d f i na nc ia l r e s u l ts , w h il e c o n ti n ui n g to m e e t t he e x pe c t e d d e m a n d f or e n e r g y . U s e o f R F ID ha s b e e n w e l l e s t ab l is he d fo r r et ai l i nd us tr y , bu t th e p os s i b le us es o f R F ID i n t h e O i l a n d ga s i nd us tr y ha s n ot be en pu b l ic ize d mu ch . T h is w h it e p a p e r e x p lor e s t h e p os s i bl e u s e s o f R F ID i n o il & g a s i ndust ry. Incr eas ed us e of RF ID i n t he i n dustr y ca n e na b le the O &G c om p an ie s t o b e c os t e ff ic i en t a nd t o b e c lo s e r t o t he ir c us t omers .
WHITE PAPER
VIBHOR GUPTA
TABLE OF CONTENTS
IN TRODU CTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 WHAT IS R F ID . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 RFID APP LI CAT I ON S IN OI L A N D G A S IN D U S TR Y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 EXPLORATION/PRODU CTION : TR IGG ER ING OF PER FORATING GUNS INSIDE THE OIL WELLS . . . . . . 5 C R U D E S U P P L Y : ID EN T IF Y ING IND I V ID U A L P I P E J O INT S IN H AR S H E N V IR O N M ENT S . . . . . . . . . . . . . . . . 6 O I L R E F IN ER IE S : O IL R EF IN E R Y CH EC K VA L VE S A F E T Y & AUD I T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 P R O D U C T D IS T R IB U T I O N : D EL I V ER Y MOV E M ENT & TRA C K IN G O F O IL TAN K ER S . . . . . . . . . . . . . . . . . . . . . 7 R ET A IL : C A S H L E S S TR AN S AC T I O N S A T G AS S T A T IO N S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 M AN AG E MEN T O F EQU I P MEN T S ER V I C ING & C O R R E C TI V E AC T IO N S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 O IL T ANK ER S C L EAN ING R EG IME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 R ES TR IC T ED A R E AS AC C ES S M AN AG E MEN T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 T RA C K OF CUS TO MER PURC H AS ES (G OOD S SO LD A T CON V EN IEN C E S TOR E S) . . . . . . . . . . . . . . . . . . . . . . . . . 9 A S S E T M AN AG E M EN T AND TR AC K IN G . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0 G AS C Y L IND ER TR A CK IN G T H R O U G H O U T T H E S U P PL Y C H A IN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 RF ID CH A LL ENG ES AN D R IS K S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 E C O N O M IC CH AL L EN G E S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 T E CHN IC AL CH AL L ENGE S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 IMP L EMEN TAT ION C HA LL ENG ES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 S T EP S FOR R FI D B U S IN E SS C A SE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 5 C O N CL U S IO N . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 5 A CR O N Y M S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6 R EF EREN C ES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6 A C KN O W L E D G E M EN TS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6 A BOU T TH E AU THOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6 A BOU T WIPRO TE CHN OLOG IES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6 WIPR O IN ENE RGY AND UTIL IT IES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 7 WIPR O S FO OT PR IN TS IN RF ID . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 7
Wipro Technologies
INTRODUCTION
T h e o il a nd ga s s ec t or is he a di ng i n t o un c har t ed w ate r s . T h e ma j or it y of o i l r es e r v es r ea di ly a v a il a bl e o n l a nd h av e al r e a dy b ee n tap p ed a nd com p a ni es in th e oi l an d ga s i n dus try ar e f i n di ng t he ms e lv es he ad i ng i n t o e x pl or ati o n of d ee p w a t er a n d v er y r em o te ar eas o f t he g lo be . T h e e c o no my i s r e qu ir i ng hi g he r pr od uc ti o n o f o il a n d g a s t o me e t th e d e ma n ds of a n e n e r g y g uz z l in g c o mmu n it y . Th e o i l a nd g a s s e c tor is r e s po n d in g t o h e ig h te ne d c os ts i n e x p l ora t ion a n d p r o d uc tio n by ou ts o ur c i ng n on - c or e a c t iv it i es t o s er v ic e pro v i d ers , a nd i m p le m en t in g o p er a t io n al ex ce l le nc e i ni ti a ti v es t h at ca n s av e co s ts . I n t h e pa s t t h es e co m pan i es h ad n o t p r o v i de d a s te a dy r e t ur n o n in v es t me nt a nd now mu st us e a ll po ss ib le ave n ue s t o d el iv er v al ue to s ha re h ol d ers t hr ou g h i ncr ea se d pr o du c tiv i ty , i nc r e as e d r ev en ue s a n d r e d u c e d c os ts . U s e of R F I D i s a m a j or a r e a i n w h i c h i m p ro v e me nt i n t h e s u pp ly c h a i n a nd u p d a t i ng of i n f or ma ti o n in r ea l - ti m e ca n b o os t p er fo r ma nc e wi t ho u t s a cri f ic i ng c os t e ff ec t iv en ess . R FID c a n h el p t he o il & ga s c o mp a ni es t o s us ta i n an d co m pe te i n th e c u t-t hr o at ma r k et e nv ir on m en t .
WHAT IS RFID
RFID or Radi o fr equency ident i fi ca t ion t ec h no l ogy d e al s w it h t h e r em o te c o ll ec t io n o f i n f or ma ti o n s t or e d o n a t ag us in g r a d io f r e qu e ncy c om m u n ic at i ons. I n t h e s i m ple s t ter ms an R F I D (ra d io f r e q ue ncy i d en t i fi ca t io n) s y s te m c on s is ts o f a tag ( tr ans p on d er ) a n d a r ea der ( i nt err og a tor) . In f or ma t io n s to r e d on t he R F I D t ag c a n r an g e fr o m as l i tt le as an i d en t if i ca ti o n n u m ber , t o k i l o -by t es o f d a ta w r i tt en t o a n d r ea d f r o m t h e tag , to dyn a mic i n f or ma ti o n m a i nt ai n ed on t h e t ag , s uc h as t e mp era t ure h is t or ies . T he i n for ma t io n fr o m t he t a g /re ader combi na t ion is e i ther pr ese nt e d to a huma n oper at or ty pi ca l ly us ing a ha nd-hel d d e v ic e w i th a n a lp h a n u me r ic d is p l a y or a h os t c o mp u te r , wh ic h a u to m at i ca lly ma n ag es t he i n f or ma ti o n.
RFID RF signal RFID readers / RFID middleware Backend
ERP
CRM Busines s
SAP
R F I D te ch n olo gy pr ov i des a q u i ck , f lex i bl e an d r e li a bl e w ay t o e l ec tr on ic a lly d e t ec t, t r a ck a n d c o n tr ol a d i v e r s e r a n g e o f i te m s . Th is t e c h n o lo g y , a l th o ug h s i m i lar t o t he w e l l e st ab l is he d ba r co d in g , is q u ic k ly g ai n in g a t te nt i on in t he A u to m at i c I d en t if ic a ti o n a nd D ata C a pt ur e ( A IDC ) i n du s tr y . R F I D t e c hn o lo g y has t h e a d d e d c a pa b il it y o f a n in t e g r a te d c ir c u it e m be d de d i n t h e s m a l l t a g , c o nt a i n in g d ig i ta l me m or y t h a t c a n b e pr ogr a m m e d o r r e p r o g r a m m e d u s i n g r a d io s ig n a ls . O n e o f t h e m os t o uts ta n di ng benefits o f R F I D is i ts a b il i ty to r e a d t hr o u g h t h e t o ug h e n v i r o n me n ts a t r e m a r ka ble s pe e d s - r e s p o nd i ng i n l e s s t ha n 10 0 m i l li s e co n ds i n mo s t c as es .
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C r i t ic al p er f or ma n ce v ar iab l es in an R FI D s y s t e m i nv o lv e th e r a n ge a t w hi ch c om m u n ic at i on c a n be m a in ta i ne d , th e s iz e o f t he i n fo r m a t io n s p ac e c o n ta i ne d on t h e ta g , th e r a te a t w h ich t h e c o mmu nic a ti o n wi t h th e ta g ca n tak e pl ac e, t he p hy s i ca l s iz e o f th e t ag , the ab i li ty of t he s y s t em t o co m m u ni ca te s i mu l ta ne o usly w i t h mu l tip l e ta gs, a nd t h e r ob us t n es s o f t h e c o m mu n ic at io n wi t h r e s pe c t t o in t er f er en ce d ue t o m a t er i a l i n th e pa t h b e twe e n t h e r e ade r a n d t he ta g. S ev er a l fa ct ors d et er mi n e t h e lev el o f p er f or ma nc e t h at c an be ac h iev e d i n the s e v ar ia b les . T h e fa c t ors in c lu d e th e fr e q ue n c y of t h e r a d io freq u en cy ca rrie r use d to tr ans p or t th e i n f or ma ti o n be tw e e n th e tag a nd t he r e a d e r , a n d w he t h e r or n o t a b a tt e r y is inc l ud e d i n th e t a g t o ass is t in co m m un i cat i ng ba ck to th e r e a der .
Anti-Collision
I n m a ny ap p li c at i ons i t is d e s ir a bl e to c o m m un i ca te w it h a ta g w he n o th er s i m i lar t ag s ar e s i multaneously v is ible to the r eader. The ability of the tag/reader system to talk u n a mb ig u ou s ly w i t h on e tag a t a ti m e is d et er mi n ed b y t he a nt i -c o ll is i on a lg or it h m us ed t o i d en t if y ea ch t a g an d es t ab li s h a co m m uni c at i on s es s ion w i t h t he t ag .
Standards
Ov er ti me R F I D m a nu fa ctu r er s an d use r s h av e ty pi c al ly c o nc lud e d t ha t w hil e th ere are a dv an t ag es to ha vi ng s ev era l c o mmun i ca t io n pr o to c ol s fr o m w h ic h t o c ho os e f or a ny a p pl i ca ti o n, th er e w o ul d a t e a ch fr eq ue nc y b e a n ad v an t ag e to s e tt l in g o n o ne pro t oc o l, or a t m o s t a c o u pl e o f pr o to c ols , w hi c h m ul t ipl e s up p li e r s c o u l d o ff e r c hip s a nd r ea ders .
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T h e RF ID in du st ry t o day re pr ese n ts a dy na mic at te mp t by ma nu fac t ure rs a nd us ers t o b u il d a n d de pl oy s o l u ti o ns r ef lec t in g tra d e -o ff s be tw ee n a w i de r a ng e of t ec h ni ca l , po l i ti ca l , a n d r eg ul a tor y con st ra in ts .
Crude Supply
Refining
Oil Retailing
Cashless payments
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t a gs w i ll e l imi n at e th e ne e d for r e p ea t c or r e l at i on l o gs . O n ly o n e b as e eva l ua t io n l og i s d r a wn , c or r el a ti n g t he pa s s i v e ta gs w i th th e we ll - b or e r es p on s es an d e ac h c o nse c ut iv e l o gg i ng r u n w i l l ti e in , w h en t h e r e ad er r ec og n izes t he p as s ive t ags p l ac e d i n the p i pes at t he s pe ci f ie d de pt hs . I n e ff ec t, a c cur a te d ep t h is m ea s ur ed a n d th e a c tiv a ti o n lo ca t io n o f t he p e r f ora t in g g u ns is pr e p l a n n e d . T h us , oi l c o m pa ni es w o n' t h av e to r e n t th e e xpe ns iv e ga m ma r a y e q u ip m e nt s a n d h a u l i t o u t t o r e m ote l o c a t ions . In-dept h s yst ems , a te chnology c o mpa ny s et up b y M ar at h on O i l off er s R F ID s o lu t i ons fo r the oi l w e l l a pp l ic a ti o ns i ncl u d in g t he o ne f or tr ig ger i ng p er for a ti ng gu ns .
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s to r e d i n ta g s c o ul d b e m o r e u s e fu l f or th e G r e e n f ie l d r e fi n e r y p r o je c ts i n s e t ti ng up the c or r ec t v a lv es a t t he c or r ect l oc at i on . W h e n th e us er p la ce s th e R F I D r ea d er ( wh i ch i s co nn e ct ed t o t h e P C ) i n i ts cra d le , d at a ge ts t r a ns fer r e d t o t h e h os t PC b y s e r i al l in k. R e fi n eries have a statutory r eq u ire m ent t o tes t e very s af et y re li e f v alv e a n d cer ti fy th a t i t is op era t io n al. U si ng R F ID a ls o re du ces th ese s af e ty c h e c ks t ha t c a us e th e o i l r e f in e r y dow n ti m e . B y us in g t h is t e c h n o lo g y , t he c y c le ti m e f or r ec er t i fy in g o r r e pa ir i ng a s af et y r e li e f v a lv e ca n b e r e d uc ed t o l es s th a n h a lf over the t r a d it i on al ma n ua l me t ho ds o f h ar d c o py i ns p ect io n /r e p a i r s he e ts a n d c er ti f ic ate s . A n oi l a nd g as r e fi ner y in t h e US of US o i l ma jor is u s in g RF ID ba se d sys te ms t o ca p tur e in fo r ma ti o n o n p res sur e sa fet y re li e f v a lves i n ma jo r v ess el s, pi pe wor k a nd pro ce ss e q ui p me n t.
Source: www.transcore.com
T h e s e R F I D s o l u ti o ns c a n h e lp c o mp a nie s s tre a ml i ne t h e ir m ai n ten a nc e op er at io ns p er fo r m ed o n th e f le e t. T h e s e s ol u tio ns c a n h e l p t h e m g a in c o n tr ol ov e r th e dis p a t c h , p i c k - u p a nd d e li v er y p r o ce s s es , fr o m lo a di n g do c k t o g as s t a t i ons a nd b a c k a g a in , by a r m in g t he d r i v e r s w i th mo b il e co m p ut ers . A ls o , th e c om p an i es w il l b e ab l e t o s tr ea ml i ne lo a d p lan n i ng , r o u ti ng a n d s ch e du l in g a nd e li m in a te c os tly m i s l o ads . B y us in g t hes e s ol u t io ns , co mp a ni es w i l l be a b le t o a cc ur at el y mo n ito r dri v er a nd v e h ic le p er fo r m a nc e an d r e lay dy na m ic r o u ti n g d e c is i on s t o h e lp t he m r e d u c e t he ir c o s t s , c r e a te n e w r e v e n u e o p p or tu ni t ie s a n d i n c r e a s e p r o d uc t ivi ty . A dv a nc ed da t a c ap t ure t e ch n ol og i es l i ke R F ID , w he n use d f or a ut o mat i c t r a ck i ng , w il l a ls o c u t o ut c os t ly p ap er - b as ed pr oc ess es by e li m in a ti n g t he nee d to m ai n ta in t h e s to ck de ta i ls of th e t a nk ers . W he n t he t an ke r arr iv e s a t t he te r mi n al f or o f fl oa d in g th e w e t s to c k, th e d a ta is c a pt ur e d f r o m a r e a d -wr i te R F ID t a g ( e m be d de d i n th e t r u c k ) a n d t he fr e s h s to c k s i tu a ti on is u p lo a de d i n t he ta g .
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A s a d at a co l le c ti o n t o ol , th e R F ID ta gs p r o v i de b et t er i nf or ma t io n a b o ut c us t omer s th at is, t h e wh at , w he r e , an d w hen o f e ac h tr an s a ct i on . T he m o r e th e k no w le dg e o f th e i n div i du a l t r a ns ac ti o n, th e mor e a bl e a n o il r et ai ler i s to i mpr ov e s er v ic e , and ga i n r ep ea t b us in es s a n d i n cre as ed r ev e n ues . Th e us e o f th is R FI D te c hn o lo g y c a n h e lp a tt r a c t a nd r e ta i n c us to m e rs a n d mu l ti p ly s al es . A U S ba s e d O i l g ia nt i s a lr e a dy us in g th is te c hn o l ogy a t t hei r fu el p u mps s in c e 19 9 7, to s p e e d r e ta i l g as o l in e a nd pr o du c t p ur c h a s e s .
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r e g is te r e d t o a c us t ome r a n d c a n b e l i nk e d t o a ny preferred cr edit car d jus t in the same way a s was d on e to ca r r y o u t tra ns ac t io ns a t t h e f ue l ou t let s . On ce cus to m er r eg is ters for t he ta g, i t does not r e-r eg is ter a t ea c h conv eni enc e s t ore tha t us es t h e s yste m. F or c o nv e n ien c e s t or e s a n d dr ive thr u o ut l e ts a t g a s s ta t io n , R F I D a ls o o ffe r s t he un i qu e a b il i ty to d isc re te ly k no w e ver y c us tomer a nd e v e r y p ur c h a s e . M a r k e t i ng ta k e s on m or e p r e ci s i o n, add i ng t o pr o fit a bi l it y . R et ail ers o f d i ff ere n t s e g me nt s a t th e C -s t or es c an f or m a l li a nc es s o t h at cu s t o mers ca n us e th e s am e t ag a t di f fer en t o u t le ts . S tor ed i nf or m at i on a b ou t cu st o me rs pr e fer enc es al so pr ovi d es th e op po rt u ni ty t o hu ma niz e th e t ra ns ac ti o n e ve n w he n ga in i ng e co n omie s o f s ca le fro m o f fer i ng th e s a me s erv ic es co ns is te nt ly n at i on wi de o r ev en gl o ba l ly . On e o f t h e l ar g e f o od s g ia n t i n th e U S ha s t ie d up w i th Oi l Co m pa ny to p r o v i de c us to m e r s , a n op t i on t o m a ke p a y me n t thr ou g h th e R FID t ags a t the ir dr iv e th ru o u t le ts lo c a t e d a t g a s s t a tio ns . C us t o me r s p oi n t th e i r k e y r in g ta g s t o th e r e a de r s pl a c e d a t t h e pay m en t c o un t er , as th ey t ak e t he ir d el iv er y , the s y s te m a ut om a t ic al ly b il ls p ur c h as es to t h e cre d it / che c k c ar d of c us t omer s ch o ic e . Te xas I n s tr um e nts i n c o nj u nc t io n w it h o th er t e c h n ol og y pl a y e r s l i ke 2 S c o o t s y s t e m s a nd FreedomPay pr ov ide sys tems for cashless t r a ns ac ti o ns a n d c us t o me r tr ac k in g .
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Source: www.ac-corporation.com
L o ng r an ge r e a di ng is d o ne ei t her by ov erh ea d por ta l r ea der s f or tru c ks a nd f or k li f ts o r by h a nd h el d r ead ers w it h w i r e l es s LAN . B ot h r e ad ers l in k t o a c e ntra l d at ab as e. T h e ta gs us ed f or s u ch ap p li c at i ons h av e t o be en v ir on m e nt al ly te s t e d a n d s u p po s e d to s ur v iv e a ll ex pe c ted t e m per at ur e an d w e at h er e xt r e m es. T he ke y a t tri b ut e of t h e R F I D tag u s e d is t ha t it p r ov i des a r obus t loca l a nd s ec ure r ea d -wr i te da ta ca che , w h ic h a lw ays c onta ins t he mos t r ecent i n f or ma ti o n pe r t i ne nt to the cyl i nd er . T h e R F ID ta g g i n g o n c y li n de r s c a n b e use d t o t r a ck the fo l lo w i n g i nf or m at i on M a n uf ac t urer I n f or ma t io n ( Ser i al nu mb er , mo de l , w or ki n g & t es t pr ess ur es a n d o t her O E M i nf or m ati o n) A s s e t Ma na geme n t I n for m at i o n (A s s e t or i nv en t or y n um b er , ass et r e ce i pt da te an d c ur r e nt l o ca t io n) I n s p ec t io n I nf or m at i on ( Ke y s a fe ty r ela t ed da t a, typ e of i ns p ec ti o n , r e te s t an d r e pa ir , d a te a n d l oc at i o n o f la s t ins pe ct i on an d r et es t, da te of t he n ex t i ns p e ct i on ) C y l i nd er F il l in g I n f or ma ti on ( C urr en t cyl i n der c o nt ent s , d a te a nd p l a ce o f la s t r e f i l l , ty pe o f g as , f il l p r e s s u r e , f il l c ou n te r t o de t er m i n e t he n u mb er of fi l ls i n l i fe t i me et c) RF ID imp leme n ta ti o n pr ov id es i mpr ove d ass et v is ib i li ty to t h e g as s u pp l iers a n d ma n uf ac t urers a n d he n ce ca n b e us e d to ma ke d e c is i on s o n t he s upp ly . T h e i nf or m a t io n m a de a v a il a bl e ca n a l s o b e use d t o t a ke d ec is i o ns o n th e r e t ir e m en t (r ep l ac e th e cyl in d er af t er its l i fe t i me ). Th e be ne f it s ca n als o a cc r u e fr om tr ack i ng t he en d c us t omers an d t he ir u s a ge p a tt er ns . T h e s u pp l iers w ou l d als o be ab l e to pr eve nt p i lf er ag e /t he f ts us in g R FI D s o l ut i ons .
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Economic Challenges
F or m an y c om p a ni es , t h e c os t o f t ags an d s u pp or ti n g RF ID eq u i pme nt (e .g . r ea d ers , e n c o de r s , a nd I T h a r dw a r e ) r e main s a b a r r i e r to a d o p ti o n. A t pr e s e n t, t a g s a r e fa r m or e e x pe ns iv e th an b ar c o des . H ow ev e r , grow i ng de ma n d i s e xp ec te d to br i ng cos ts d o wn fr om t he c ur r e nt 30 - 80 ce n ts p er pa s s i v e t ag to a n es t i ma te d 5 - 1 0 c en ts p er t ag over th e n ex t t hr ee t o f o ur y e a r s . As t h e c o s t of t a g s de c l i ne s , t he c o m pa n i e s w il l l i ke l y c hos e t o a d o p t t he n e w R F I D t e c hn o lo g y . I n i t ia ll y , i t ca n b e d if f ic ult f o r co m pa n ie s to v ie w R FI D f av or a b ly d u e t o th e p ot e nt i al ly h ig h c os ts . T he lon g - ter m c h al le n ge , h ow ev er , i nv olv e s de t e r mi n in g w h e th e r o r n ot d ow ns tr e a m, i n te r n al R F ID i ni t ia t ives c a n g en er at e ad e qu at e R O I t o w ar r an t m ov in g b ey o nd b as ic c o m pl ia n ce or s e c ur i ty r equ ir e me n ts f or t he co m pa n ie s . T o de te r m i ne i f a n d w h en t o in v es t i n R F I D , co m pa n ie s s h o ul d d ev el o p a t h orou g h b us in es s c as e th at as s e s s es a l l of t h e be ne f it s . T h es e be ne fi ts i n cl u de th e a bi l ity t o p r ov id e new s erv ices to customers and the v isibility of e q u ip m e nt s i n pre m ise s . C om p a n ie s w h o d o n ot c o nd u ct a c om p r e he ns ive b us i nes s ca s e co u ld fa l l b e hi n d t he ir c o mp e ti t or s , as t he c os t p r e s s ur e s mou n t o n t he m .
Technical Challenges
S ev era l t ec hni ca l is sues s urr oundi n g t h e R F ID mar ke t pl ac e a lso pose c ha l le nges . Whil e i n d us t r y an d g ov er nm e nt m a n da tes ar e d r iv in g c h ang e , th e mar k et p la ce f or R F ID t ec h no l og ies s ti l l r e m ai ns n o is y an d imm a t ur e . A dv an c es h av e b een m a de in har dw ar e , b u t th e ma r k et p lac e i s s ti l l in t he e ar ly s ta ge s of d ev el o pme nt . T he a bi l ity o f m an y mi d dl ew ar e s y s te ms t o pro ces s t a g d at a a n d i n te r c on n ec t e f fi c ie nt ly to l eg acy s y s te ms wi t ho u t s ig n if ic a nt eff or t r e ma in s u n pr ove n . RF I D mi d dl ew ar e i s a so f twar e l ay er th at r esi d es be tw ee n R F ID ha rdw are a nd t he e x is t i ng ba ck- e n d s y s te m or a p pl ic a ti o n s of tw ar e. I t ta k es o ut da ta fr o m t he R F ID in te gr at ors a n d f i lt er s i t . I t th e n ag greg a tes it an d r o u te s i t t o e nt er pr is e ap p lic a ti o ns l ik e ER P e tc . O n e o f th e mos t s i g ni f ic an t c ha l le ng es in cr ea ti n g m i dd le war e i s t ha t c o mp a ni es ar e r us h in g t o a d op t R F I D w i th o ut kn owi n g a ll th e fu t ur e a pp l ic at i o ns o f t he d a ta . T h is s ce n ari o has led m i d dl ew ar e pr ov id ers to us e a d is t r i b ute d arc h it ec t ur e t h at w i l l w o r k f or ear ly a d op t er s a n d s ti l l a ll ow for f u tur e a pp l ica t io ns . F ur t her m ore , s ta n dar ds ne e d t o b e e s ta b li s h e d a r ou n d E l e c tr on i c Pro d uc t Co de s ( E P C) , w h ic h a r e us e d by R F ID . W h il e t hes e s t an da r ds a r e c om i n g cl os er t o r e a li ty , t he y r e ma in an u nr e s ol v e d to p ic , w it h s u p p li e r s a n d c us to m e rs , a t p r e s e n t , be i ng for c e d to c h o os e one s ta n dar d ov er a no t her . I n a d d it i on , th e R F ID v e n do r la n ds c a pe i s s t il l e v o lv in g . M a ny m i d-s iz e a n d s m a l l v e n do r s a r e l i ke ly t o c ons ol i da te i n th e ne xt f ew y ears or s i mp ly g o o u t of b us in es s . B i g te ch n ol o gy
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p l aye rs h av e r ec en t ly pur ch ase d s o me s ma ll , bu t v is ib l e, R F ID ve nd ors in a n e f fo rt t o d o m in a te th is e v o lv i ng te c h n o lo g y . T h is b e ha v i or w i ll l i ke ly c o n tin u e to i nc r e a s e u n ti l a f e w key players remain. O i l & g as c om p a ni es w i l l n e ed t o c ar e fu l ly s e le c t the ir t ec h no l ogy p ar tn er s t o e ns ur e on g oin g c a pa bi l it i es fo r t he fu t ur e. T hi s m ea ns t h at c o m pa ni es w i ll ne ed t o o b je ct iv ely per f or m d ue d i l ig en ce , exa m i ni ng v e n do r s fi na n ci al v i ab i li ty as w el l as t he ir t e ch n ol og i ca l s tr en g ths . As m ar k et c onso l i da ti o n occ ur s , c om pan i es m us t r e ass es s t he ir v e nd or a nd t e ch n ol ogy s el ec t io ns t o e ns ur e ex te n di b i li ty o f t h eir R F I D arc h ite c tur es .
Implementation Challenges
R F I D i m pl e me n ta t io ns c a n b e c o mp le x , t o uc h in g mu l ti p le p oi n ts acr oss th e e nt er pr is e as w e l l a s thr o ug h out t h e s u pp ly c h a i n . I mp l e m e n ta ti o n r is k s c a n be mi t ig a te d, h ow e v e r , t hr o u g h p r o p e r p la nni n g a n d by b u i ld i ng u p on b e s t pr ac ti c es . M u c h o f t h e i mp l e me nt a ti o n c o m pl ex i ty ari s es be ca us e R F I D s y s te ms g e ner at e s u bst a nt i al v ol u me s o f da t a. R F I D r ea de r n e tw or k g e ner at es l ar g e s et o f ev e nt d ata . T h is is be ca us e an ar r ay o f R F r ea ders i s p la ce d i n th e s e t up to ca t ch th e R F w a v es fro m th e t ag c o nt i nu ou s l y . Th e c ha ll e ng e h ow ev er i s h ow t o d ea l w it h t h is h u m un g ous da t a. Ca pt ur ed d at a is f i lt er ed to r e m ov e any bas ic d u p li c a te / r e du n da n t s e t s . D a t a fr o m d i ff e r e n t r e a d e r s is c ons o li da t e d u ps tr e a m t o r e a c h th e data management layer. This cons o lid a te d an d pre - c om p ut e d d a ta h a s t o b e m a n a g e d i n d a ta ba ses /da ta -war e ho us es. Fu rt her , t he da ta ma nag e me n t op t i mi za t io ns ar e p er f or me d on t h is d a ta f or e f fe ct iv el y us in g i t a f ter ward s. I n a dd i ti o n to t he ch al l eng es of s y n chr on iz i ng da ta w it h e x is t i ng s y s t e ms , co m p an ie s wi ll e v e nt u al ly d em a n d ac ces s t o t h is i nf or ma t io n . C ons eq ue n tl y , e ne r gy c o m pa nie s an d t h eir s up p li ers w i ll n ee d to r ed es ig n t h eir i nfo r ma ti o n -s ha r in g a n d d a t a m ana gement processes and p o l ic ies . Th ey w i ll a ls o ne e d t o f ur th er in te gr at e th e ir e xi st i ng e n ter pr ise ap p l ic at i ons to f a ci l it at e da ta e xc ha ng e . R F I D bas ed d a ta s h o ul d b e r i gh t ly f or ma t te d an d p a ck ag ed f or E n te r pr is e a pp l ic a ti o ns c o ns u m pt i on . T h is p a c ka g in g o f da ta c a n b e bro ug ht a b ou t , usi ng a n d o p ti m iz ing t he da t a w a r e h o us i n g s o lu t i on . D at a an a ly ti cs c a n b e per f or me d o n t his d at a usi n g an ETL e n gi ne . T h us , a co m pa ny m us t as s e s s it s ex ist in g i nf r as tr uc tu r e n o t on ly f or i ts a bi l it y t o i n t egr at e a n d u t il iz e R F I D g e n e r a te d in f or ma tio n , b u t a ls o f or it s a bi li ty t o a c c ommo d a t e f u tur e t e ch n ol og y ev ol u ti o n ( e. g. s y s te m fl ex i bi l it y , s ca la b il i ty , e tc .). A ls o, a c om p a ny s R F ID s ol u ti o n s hou l d be d e s i g n e d a s a n in t e g r a l p a r t o f i ts e x is ti n g e n ter pr is e a pp l ic a t i ons p or t fo l io in or der to ex tra ct m ax i mu m be n ef i t fr o m an R F ID d e pl oy me n t.
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There a re ce rt ai n phys ic a l chal l enge s (par t of i mpl e me nt at i on chal l eng es ) tha t ar e p r o h ib i ti n g t he pr ol i fe r a t i on o f R F ID . S om e e xa mples of phy si ca l c ha l le ng es ar e gi ve n bel ow :
Tag Collision
A l t ho ug h t h e e xp er tis e is l i m it ed , e ng i ne er in g b es t pr ac t ic es c a n r e me dy a l l o f t hes e c h al le nges . A n o th e r a t trib u te o f R F ID i m p le me n ta ti o ns th a t c r e a t e s r i s k is t h e t e c h no l og y s pe r v a s iv e i m p ac t t hr ou g ho u t t h e o r g an iz at i on . R F I D i m ple m en t at i ons m u s t be acc o m pa ni e d by a p pr opr i at e c h an ges i n bu si n ess pr oce sses i n or de r to re d uc e c o sts , i ncr ea se rev en u e, o p t imiz e a s s e t u ti l iz a t io n a n d e n ha n c e s a f e ty an d q u a l i ty . T h is i nc lu d e s t h e r e des ig n o f s om e of th e supply chain pr ocesses and alterati o n o f s u p po r t i ng tas ks a n d f u nc ti o ns . E m p lo y e es a t m a ny l ev e ls o f a n o r g an iz a t io n w i l l b e r eq u ir e d to ad j us t a n d le ar n new s k i ll s . A s a r es ul t , a n e ff ec t ive c h an ge m a nag e me n t pr ogr a m m us t a cco m p any a ny R F I D i ni t ia ti v e . A c ti v e ma nag e me n t o f c o m mu n ic at io ns , tra i ni ng , c o m mi t me n t -b u il d in g , p er fo r m a nce m e as ure m en t a n d ov era l l ch a ng e l ea der s h i p is just as i mport ant t o a proje c ts suc cess as t he i m p le m en ta t io n of th e t ec hn o l ogy its e lf . C o m pa n ies fac e a d di t io na l R F I D i m pl e me n ta t io n c ha l le n ges r el a te d t o th e pr es en t s h ort ag e of a v a il a bl e R F ID r e s o ur ces . A s a r es ul t o f t h i s s car ci ty , c o m p an ie s mu s t m a ke a n e x tr a or di n ar y c o m mi t me n t t o r e tr a i n in g t h e ir s t a f f m e m be r s a nd b y r e ta in in g o u ts i d e e x p e r t is e w h e n n e cess ar y t o m e et t h eir ob j ec t ives a n d t o c o m pl et e p r oj ec ts w ith i n t he d es i r e d t i me fr a m es . A s s oc ia t io ns l i ke C o m pT I A ( C o m pu t in g T e c h n ol og y in d us try ass oci a ti o n) is h elp i ng i n du str y t o pre p a r e a p o o l o f s k i ll e d w o r k e r s w ho w i l l t ak e c e n t e r -s ta g e w he n th e t i me t o s hi f t t o R F ID a p pr oa ch es , b y o f fer i ng ce rt i fi ca t io n co ur ses . T h e be t a ex a m c an b e g iv en by th os e w ho ha ve be tw ee n hal f a y ear a n d t wo y ear s of ex peri ence i n t h e R F ID se c tor . Upon succ ess ful ly c l ear i ng t h e ex a m, th e e xami n ee w il l b ec o me a cer t if ie d C o m pT I A R F I D pr o fess io n al .
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CONCLUSION
In t oday s mar ke t pl ac e, many e ner gy c ompa ni es ar e il l equi ppe d to manag e a ne w ge nera t ion o f r is k s . T h es e ne w r is ks a l on g wi t h t he c os t s av i ng p o te n ti a l, m ak e n ow t h e pe r f ec t t i me f or t h e c o m pa n ies i n th e o il & g a s in d us tr y n o t on ly to t a ke a n in d e p th l o ok a t b ut a ls o to e m br ac e t he n ew er te chn o l og ies l ik e R F I D . O n th e on e h a nd t h e b e n e fi ts fr om R F ID i m p le m en ta t io ns c an b e hu g e, o n t he ot h er ha n d com p a ni es ne e d t o o v er c om e t h e c ha ll e nge s h i n de r i ng t h e a do p ti o n o f s u c h t e c hn o log y . C o m pa n ies ne e d t o r ec o gn iz e t ha t t h ey c an me e t w i th c h al le n ge s wh i le d ec id i ng on th ese a d op t io ns bu t e ar ly a do p ters to t he R F ID te ch n ol o gi es w i ll s ee in cr eas i ng bus i ne s s v a l ue o v er t i m e as t hey o v er c om e t he i n it ia l h ur dle s . F or th e i nt e gra te d e ne r g y co m pa n ies t he be ne f its o f R F I D i m p le me n ta t io ns ca n b e hu ge . Th es e c o mp a ni es ca n g a in c o m pe ti t iv e a dv an t ag e by a d op t in g t h is t e ch n ol og y at i ts n as ce nt s ta ge .
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ACRONYMS
B I B us in ess In te l li ge n ce C R M C us t ome r R e l a t i on s h i p M a na g e me n t C-stor es Convenie nc e stor es E P C E le c tr on i c Pr o du c t Co d e E R P - E n te r pri s e R e s o ur c e P l a n n in g ETL Ex tr ac t, Tr ans f or m and L o ad IT - Informatio n te c h n ol og y P O S P o in t of S a le R F I D R a d i o F r e q u en cy Ide n ti f ic at i on ROI Return On Inv es t me nt S C M - Su p pl y C h ai n Ma na geme n t
REFERENCES
P e tr ol e u m R e v ie w h t t p: / / w w w .s y m b o l. c om/ pr o d uc ts /r f id / r fi d . ht m l h t t p: / / w w w .r fi d j our n al .c om h t t p: / / de l oi t te . co m h t t p: / / www .s cs - ma g .c o m h t t p: / / w w w . tr a ns co r e .c o m h t t p: / / www .a c-c or p ora t io n .c o m
ACKNOWLEDGEMENTS
T h is w h it e pa p er w as wri t te n w i th v al u ab l e g ui d an c e fr o m Sha s h an k G ar im e l la , D o ma in C o ns ul t an t , W i pr o T ec h no l og i es. F ee d ba ck r ec eiv ed fro m D .R a m as ubr a man i an w as a ls o h e lp f ul in i mp r o v i ng th is W h i te Pa per .
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Worldwide HQ
W i pr o T e c h nol o g i e s , S ar ja p ur R o ad , B a n g a lo r e - 560 0 35 , I n d ia .
U.S.A.
W i pr o T e c h nol o g i e s , 1 3 0 0 Cr it t e n de n L a n e , M o u nt a in Vi e w , C A 9 4 04 3 .
U.K.
W i pr o T ec h nol o gi es 1 3 7 E us to n R o a d, L o nd o n, N W 1 2 A A.
France
Wi pr o T ec h nol o gi es 9 1 R ue D u F a u b o ur g , S a i n t H o n or e , 7 50 0 8 Pa r is
Germany
Wipr o Technol ogies H or n C a m p us, K a is tra s s e s 10 1 , K i e l 24 1 14 . w ww .w ipr o .co m e M ai l : i nf o@ w i pr o . co m
Japan
U.A.E.
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