I m proving Meter I nventory w ith RFI D ( AMR/ AMI I m plem entation I m pact) April 2 5 , 2 0 0 6 Rob W ilhite – Director, AMR/ AMI Practice Garrett Johnston – AMR/ AMI Consultant Dan Ruiz – RFI D Specialist Experience you can trust.
Our Agenda I ssues w ith AMR/ AMI m etering deploym ents and � ongoing m eter m anagem ent Potential RFI D solutions for m etering issues � Tw o utility applications � Future utility applications of RFI D � I ndustry observations � I ncorporating
Business issues w ith AMR/ AMI deploym ent and m eter life - cycle m anagem ent Large - scale AMR/ AMI meter deployments � present unique implementation issues Identifying and resolving these issues is a � key driver to minimizing unintended impacts and maximizing project success In addition, ongoing meter life - cycle � Kno wing the management issues require greater focus so lutio ns in advanc e in today ’ s asset - driven performance world is ke y to pr o je c t suc c e ss I ncorporating
Large - scale AMR/ AMI deploym ents can present a num ber of potential challenges “ As the pr oje c t g e ts unde r wa y, Supplie r r e liability � lo gistic s manage me nt Manufac tur ing be c o me s a majo r c halle nge in � maintaining the sc he dule . ” sc he dule Pr oduc t/ solution � “ At time s, it se e ms a n AMR pe r for manc e pr oje c t ha s a million moving De ployme nt logistic s � pa rts, inc luding me te r c o ntr o l Ba c k - offic e inte gration and manage me nt … ” � Busine ss proc e ss � r e de sign “… the ke y to sta ying on sc he dule is having the mate r ial Custome r impac ts � whe n it's ne e de d . ” Re gulator y c omplianc e � Source: KEMA interviews of utility representatives I ncorporating
Logistics m anagem ent is a critical driver to AMR/ AMI project success Ke y De ployme nt Issue L ogistic s Challe nge Ability to tr ac k spe c ific me te r s Inve ntor y visibility a t ke y points in the supply c ha in Ca pa bility to minimize da ta High volume data tr ansc r iption e r r or s and impac ts thr oughput to othe r r e ve nue c yc le busine ss proc e sse s Va lida tion of inte r na l c ontr ols to Re gulator y me e t Sa rba nne s - Oxle y a nd c omplianc e state - dr ive n r e quir e me nts I ncorporating
Post - deploym ent m eter m anagem ent also presents sim ilar business issues Asset m anagem ent � � Stock accuracy = What is our current meter inventory level (central stores/ field locations)? � Excess inventory = What minimum levels of field inventory are required? I nventory tracking/ traceability � � Stock location = recall identification � Meter forecasting = How accurately are we capturing inventory turns? Process confirm ation � � Field installation = How effectively/ accurately are our Greater focus today revenue processes tracking meter sets/ replacements? on meter asset Regulatory com pliance � management � Stock location = What data/ financial controls do we have to verify asset - driven revenue steams? I ncorporating
RFI D is being considered as a solution to resolve these and other m eter m anagem ent issues Ke y Manage me nt Que stion During a recent AMR � deployment, a major utility used the best solution available at the time: bar - coding However, this utility is � Is RFID ready for “ Prime Time ” now considering the use in utility meter management? of RFID solutions to improve its ongoing (or is this bar - coding on steroids?) meter logistics issues I ncorporating
RFI D technology w orks sim ilar to bar - coding, but perform s m ore effectively Tag � RFI D functionality is rapidly � Passive vs. active replacing bar - coding to � I nternal vs. external reduce/ elim inate m anual Reader ( Portal and processes and im prove data � handheld as needed) efficiencies Com m unications to and � from readers and Key advantages of RFI D technology: controller softw are � Non - line of sight Com m unicating data to � and from back - office � Autom ated tracking system s ( portals) � Less susceptible to Database/ integration � dam age softw are � Larger data capability Enterprise applications � � Can be read - w rite ( e.g., W MS, ERP) � Can verify date and tim e of action I ncorporating
RFI D technology is rapidly m aturing RFI D innovation � � Second Generation • Faster read rates • Dense read capability • I m proved security � Decreasing costs • Tags • Readers • Portals Movem ent tow ard individual item tracking ( Third Generation) Viability of RFI D � applications across m ultiple industries is increasing I ncorporating
Many industries are already using RFI D to resolve their ow n core business issues Consum er products goods � industry Education � Entertainm ent � Governm ent � Healthcare/ Pharm acy � Manufacturing/ I ndustrial � Retail ( e.g., W al - Mart) � Travel/ Transportation � BP's c hie f te c hno lo g y o ffic e r sta te s the y will Oil/ Gas � e xplo re the po te ntia l b e ne fits o f the te c hno lo g y a nd "po sitio n BP to ta ke full When will utilities a dva nta g e o f this e me rg ing c a pa b ility." embrace this technology? I ncorporating
RFI D can im prove m eter logistics by autom ating m anual processes Gas Meter Tracking Reduce/ eliminate meters � lost due to Receiving Receiving errors/ incomplete Dock Dock paperwork Packaged Packaged Improve supply chain � for Base for Base Forklift Forklift efficiencies Meter Meter Station Station Portal Portal Inspection Inspection Improve inventory � control/ material processing A site survey examines the capability of Tag and Readers within the operating environment I ncorporating
SEMPRA Energy identified a num ber of m eter installation issues Limited visibility � � Inability to forecast meter Areas of Comments Opportunity demand � Difficult to forecast demand for meters Limited visibility � Excess/ unclear inventory � Unclear how many meters are in stock (in the warehouse and on trucks) at any given time � Limited supply chain visibility encourages Excess meter employees to hold excess inventory inventory Lost meters & revenue � � With new initiatives being started the organization Volume of meters � Limited meter asset tracking needs to provide on going support for increased m eter activity. � Increased need for tracking individual meter � Unidentified meter locations attributes is not currently supported. � Because a meter is not tracked through the Lost warehouse to installation, there are no records meters/ Unbilled about where some meters have been installed revenue � Unbilled revenue occurs until these meters are AMI � found. � Track meter attributes � Meter receipts and issues are not tacked full within Inefficient process the Supply Chain key - entered into SAP. � Handle increased meter volumes Conclusion: I nefficient to m anually enter receipts into SAP I ncorporating
SEMPRA conducted a proof - of - concept exercise and closely analyzed RFI D costs and benefits SE MPRA Stake holde r s � Metering � Account Management � Logistics � Vendors � Supply Chain � IT � Customer Service These efforts were aided by an enterprise - wide focus I ncorporating
SEMPRA is now conducting a three m onth RFI D pilot project 2 warehouses: 1 gas, 1 electric � 4 bases: 2 gas, 2 electric � Estimated Cost: $600 to $800k � � Includes IT integration and business/ systems design � Utilize tethered gas tags @ $3 to $4 each � 10,000 tags � Regular meter management savings (operational rounds) of $250k Result: projected payback of 9 m onths I ncorporating
A full RFI D roll - out has now been approved for SEMPRA ’s AMI program Vendor trials deem ed successful � Hard savings $ 6 0 0 k/ yr � Soft savings $ 2 0 0 k/ yr � $ 4 .5 M budget approved for roll - � out � 1.3 million electric meters � 800K gas meters AMI program also presented � opportunity to update m eter inventory processes � Sempra to install 250K - 800K meters/ year � 3 - year ROI I ncorporating
Autom ating m eter inventory processes could increase operational efficiencies and reduce costs Hard Savings Soft Savings � I ncreased revenue � Reduced adm inistration ( unbilled) � Accurate inventory � Reduced FTE � Tim ely inspection reports � Avoided FTE � I ncreased productivity � Reduced rew ork � Efficient recall process � Reduced process tim e � I m proved em ployee sat. � Reduced inventory � Avoid handling & storage I ncorporating
An Eastern I OU that piloted RFI D for pole tracking is now considering RFI D for m etering Piloting passive tags for � poles � Problem : Hectic pace of storm restoration throw s inventory into disarray � Likely to roll - out after pilot Considering RFI D for � m etering � Problem : I nconsistent m eter inventory tracking � PUC w ould favor it � I ssue: Does responsibility lie w ith m etering or asset m anagem ent system ? I ncorporating
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