Wednesday, December 27, 2006

PROMISE project and closing the information loop

PROMISE (PROduct lifecycle Management and Information tracking using Smart Embedded systems) is an international research project to improve product life cycle management practices and increase the availability of information during product's lifecycle. The objective is to increase access to information and allow firms to transform this information into knowledge for competitive advantage. Within this research network, SAP-Promise research project brings an edge to remanufacturing activities in information flow. Both companies and researchers managed to close the loop with logistics. However, closing the information loop never came. Return rates are uncertain, however, companies achieve to control it to a fair degree. For instance by offering lease option, deposits, or cash-backs in the first purchase, yet condition of the product always remained uncertain. Is a returning product ready for direct reuse, or needs remanufacturing or is it too worn out to be even disassembled? Labor costs associated with disassembling a worn out product that is ready to go recycling burden companies and there are no generic rules for remanufacturing/disposition of products arriving in uncertain condition.

While companies can generate their own algorithms for processing returns in uncertain condition, it will never be the optimum unless they have accurate information on the condition of the returned product. SAP-Promise research comes into the scene at this point. Using sensors, chips, RFID tags and middleware software product communicates with company database. This PLM solution enables firms to track condition and the usage history of the products. Before a product returns, firm has information not only on the condition of the product, but he also has information on how it was used. When a product reached it EOL or EOU firm knows what to do with it. Or in other words, the product tells the company what to do with itself!

I’m just talking about end-of-use and end-of-life implications of the project. Think about this project's potential benefits on preventive maintenance practices, input on the product development process and innovation, and consumer behavior analyses...

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