Automotive Industry Action GroupThe Need for Traceability

July 27, 2006Ohio University

Morris BrownProgram Manager

Materials Management

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Agenda

• Background on AIAG• What drives traceability in automotive• Overview of AIAG’s automatic identification

standards and guidelines• RFID• Q & A

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THE AUTOMOTIVE INDUSTRY IS STANDARDS DRIVENTHE AUTOMOTIVE INDUSTRY IS STANDARDS DRIVEN

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About AIAG

Organization• Globally recognized trade association• 1,500 member companies

– OEMs– Suppliers– Service Providers

• 50 full-time staff• Executives on loan from DaimlerChrysler, Ford

and General Motors

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AIAG Steering Committees

• Materials Management• Electronic Commerce• Quality• Collaborative Engineering• Occupational Health & Safety• Truck & Heavy Equipment

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Materials Management Committee

• Materials Management Operations Guideline• RFID• Business Continuity Planning• Automatic Identification Data Collection• Returnable Containers• Customs• TREAD Act

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What Drives Traceability in Automotive

• Warranty• TREAD Act

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Growing Pain Around Warranty

• Automotive sector spending 1% to 3% of product revenue on warranty costs

• TREAD Act requirements are increasing visibility in this area– NHTSA’s TREAD Act requires Vehicle Manufacturers to more

comprehensively track and report product issues to the Federal Government.

• And it’s not getting easier– Frequent Model Introductions– Increasing Product Complexity– Time Intensive Root Cause Diagnostics– Part and Platform Re-Use Grows

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Exact Information is Available Now

2005

• Auto Warranty Costs = $13,964,561,4551.78% of worldwide sales

2004

• Auto Warranty Costs = $12,729,138,1821.65% of worldwide sales

2003

• Auto Warranty Costs = $11,933,347,4641.77% of worldwide sales

Source: Warranty Week-June 2006

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TREAD Act: TREAD Act: Early Early

Warning Warning ReportingReporting

November 1, 2000Transportation Recall Enhancement,

Accountability, and Documentation Act (TREAD Act)

November 1, 2000Transportation Recall Enhancement,

Accountability, and Documentation Act (TREAD Act)

The Perfect The Perfect StormStorm

Worldwide Reach of Worldwide Reach of “Substantially Similar” “Substantially Similar”

ProductsProducts

• Sold in Venezuela•Death in Venezuela•Claim of Product Defect

Assembled in Mexico

Sold in US

Manufacturer’s HQ in Germany

The Venezuelan Death Must be

Reported to NHTSA

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TREAD Act Reporting Highlights• Far more reaching than just tires…

• Focus is on Early Warning Reporting (EWR) requirements

• Heart of TREAD Act is traceability

• Reporting requirements are different if you are an OEM/tire manufacturer vs. a component supplier

• First reports were due to NHTSA December 1, 2003

• Severe civil and/or criminal penalties for failing to report information in a timely manner

Pre-50’s 1950’s 1960’s 1970’s 1980’s 1990’s 2000’s

RFID TIMELINE

• 1926: Baird’sradio object

detectionpatent

• 1935: Watson-Watt’s radar

patent

• WW II: Radar refined

• 1st Toll Collection System - Norway

• Texas, Georgia / Oklahoma Tolls

• Wide-scale US Roll-out

• LASL spins-off IDX & Amtech

• Vast number of companies enter RFID marketplace

• 1977: Electronic license plate for

motor vehicles

• 1979: RFID animal

implants

• 1975 LASL releases

research to public sector

• 1991: AAR standard

• 1994: All US railcars

outfitted

• MIT Auto-IDCenter formation

• EPC™ introduced

• National & international standards emerge

• 2002: AIAG B11Tire & Wheel

Standard

•EPCglobal formed 2003

• 1997:US Army rolls out TC-

AIMS II

• 2003: RFID prominent inIraqi Freedom

• Smart shelves

• Multiple early adopter

installations

• 1952: Vernon“Application of the Microwave Homodyne”

• Harris patent: “Radio transmissionsystems withmodulatablepassiveresponder”

• Harrington “Active & Loaded Scatterers”

Adapted from Interaction Design Institute RFID Project Presentation – 2002 Thanks to Dan Kimball, DoD Logistics AIT Office

• 1966: Sensor- matic & Check-

point EAS

• Over 350 direct - reference patents

• 1948: Harry Stockman -

Communications By Means of

Reflected Power

• Fairchild, RCA & Raytheon

initiate pgms

• 2005: Walmartinitial deadline

• 1969: MarioCardullo RFID

concept

• 1973: Cardullopatent

RFID: The History

• 1984: IDX/Allen Bradley install GM System

• AIAG ARF1, “Application Standard for RFID in the Automotive Industry” October, 1991

• AIAG AIDC Workroup has been involved

with RFID since 1987

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Current AIAG PublicationsB-4 Parts Identification and Tracking Application Standard

B-10 Trading Partner Labels Implementation Guideline

B-11 Tire and Wheel Standard

B-14 Guideline for the use of 2D symbols on Trading Partner Labels

B-16 Global Transport Label Standard

B-17 2D Direct Parts Marking Guideline

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B-4 Part Identification & Tracking Application Standard

Tells you what to markAddresses data fields, data identifiers,

numerous symbologies (linear & 2D), and provides definitions critical to this standard

Specifications for both direct marking and labeling of individual parts, kits, & assemblies/subassemblies

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B-10 Trading Partner labels Implementation Guideline

• Specifications for container and pallet labels in the shipment, transport, and receipt of parts

• Updated for 2004 to include Code 128 and 2D symbologies

• Revision also includes quick receive bar code label to allow entire truck shipment to be received by scanning one or two simple bar codes.

January, 2003

Revision to B-11 Tire Identification Standard

• Update of the AIAG B-11 Standard published in 1994– New B-11 Mission Statement: To provide an

electronic means of transferring data from the tire to anywhere it needs to go.

– Standard to include the ability to use both labels and RFID tags

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AIAG B-11 Tire Tag ANSI INCITS 256 (T6) and ISO/IEC 18000, Part 4 & Part 6 compliant

902 - 928 MHz for U.S. / 869 MHz for Europe 2450 MHz for Japan

Molded into tire, applied with adhesive, or label 1024 bits ISO 15418/MH10.8.2 Data Identifiers Successfully demonstrated in the U.S. & the E.U.

18000, Part 6c with User Memory Molded into tire, applied with

adhesive, or label 2048 bits EPC as UII “MB=01” ASC MH10 DIs for OEM data “MB=11” User Memory ISO/IEC 15961/15962

compliant

Today

Yesterday

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Demonstration Video

• http://www.aiag.org/videos/index.cfm

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B-11 TIRE RFID STANDARD

This is the first RFID item level tracking application standard in the world

The work group has just updated this document to allow for retail information (EPCglobal syntax.)

Document could be modified to track any asset (Returnable containers, racks, engines, transmissions, etc.)

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B-16 Global Transport Label Standard for the Automotive Industry

• Global automotive labeling standard.– Based on existing ISO, AIAG and Odette labels– Spirit of cooperation with Odette and JAMA/JAPIA– Mixed/Master label– Allows for RFID A1

SHIP FROM A2 TO

A3 2D BAR CODE

B1 CUSTOMER REFERENCE #1

B2 CUSTOMER ROUTING

B3 CUSTOMER REFERENCE #2 C1

CUSTOMER PART NUMBER D1

LICENSE PLATE

D2 CUSTOMER

REFERENCE #3

E1 SUPPLIER

E2 CUSTOMER

REFERENCE #4

A1

SHIP FROM

A2

TO

A3

2D SYMBOL

B1 CUSTOMER REFERENCE #1

B2 CUSTOMER ROUTING

B3 LOGISTIC REFERENCE

C1 CUSTOMER PART NUMBER D1

LICENSE PLATE

D2 CUSTOMER

REFERENCE #2

E1

SUPPLIER

E2

CUSTOMER REFERENCE #3

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B-17 2D Direct Parts Marking Guideline

• How to mark recommendations• Provides information for marking, verification,

and reading of Data Matrix and QR Code symbols marked directly on parts

• Technologies addressed include laser, dot peen, and inkjet technologies

RFID…

The Automotive Industry is the Single Largest User of RFID

Fact or Fiction?

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“Automotive Industry Drives the RFID Market, Retail Still Waiting For Shoppers”, According to ABI

Despite all of the recent hype and excitement surrounding the introduction of radio frequency identification (RFID) technology in retail markets, the automotive industry will spend nearly thirty times more on the technology this year.

Key applications of RFID technology in vehicles include immobilizers, automatic vehicle identification, and passive entry systems.

http://www.abiresearch.com/abiprdisplay2.jsp?pressid=182

46% 28%

Radio FrequencyIdentification (RFID) -

Making the Right Choices

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Application GM 1724 (B16) Global Common Shipping Label + RFID = SMART LABEL

RFID inlay imbedded within label RFID inlay imbedded within label materialmaterial

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The AIAG Created the FIRST . . . The AIAG Created the FIRST . . .

Code 39 Standard (AIAG B-1 ‘84) Code 39 Standard (AIAG B-1 ‘84)

Identifier Standard (AIAG B-6)Identifier Standard (AIAG B-6)

(Created Data Identifiers)(Created Data Identifiers)

Shipping Label Standard (AIAG B-3 & B-5) Shipping Label Standard (AIAG B-3 & B-5)

Part Identification And Traceability Standard Part Identification And Traceability Standard (AIAG B-4 )(AIAG B-4 )

Global Transport Label Standard (AIAG B-16 - ‘02) Global Transport Label Standard (AIAG B-16 - ‘02)

Tire & Wheel Identification Standard (Optical & Tire & Wheel Identification Standard (Optical & RFID) - (AIAG B-11 – ‘02)RFID) - (AIAG B-11 – ‘02)

Code 39 Standard (AIAG B-1 ‘84) Code 39 Standard (AIAG B-1 ‘84)

Identifier Standard (AIAG B-6)Identifier Standard (AIAG B-6)

(Created Data Identifiers)(Created Data Identifiers)

Shipping Label Standard (AIAG B-3 & B-5) Shipping Label Standard (AIAG B-3 & B-5)

Part Identification And Traceability Standard Part Identification And Traceability Standard (AIAG B-4 )(AIAG B-4 )

Global Transport Label Standard (AIAG B-16 - ‘02) Global Transport Label Standard (AIAG B-16 - ‘02)

Tire & Wheel Identification Standard (Optical & Tire & Wheel Identification Standard (Optical & RFID) - (AIAG B-11 – ‘02)RFID) - (AIAG B-11 – ‘02)

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Thank you & Contact Information

• Email: mbrown@aiag.org• Phone: 248.358.9788• Web: www.aiag.org

• AIAG RFID Summit November 2 at Rock Financial in Novi, Michigan. Contact Customer Service at 248-358-3003 to register