Michelin Group & Intelligent Tires

1. Michelin Group & Intelligent Tires

2. Life ( including RFID) Can Have Choices

3. Physics Serialization Data Implementation

4. T Test Your RFID Knowledge! F • RFID: Really Fast Investment Drain • The person sitting next to you right now knows more about RFID than you do... • I can set up an RFID in-transit visibility system with half my brain tied behind my back • RFID will always save money and increase efficiencies • Many RFID logistics ROI studies have already been published and substantiated

5. Tire Customers expectations Dry and wet grip Service life Rolling resistance Comfort Endurance Handling

6. Michelin Leadership Conclusion • We favor an RfID “single standard” solution including migration to EPC codification. • We are working to condense these standards into a “single standard” likely ISO 18000-6c (EPC Gen 2). • We are developing RfID capabilities both as a supply chain tool and as added value to our products.

7. Tire The structure Crown reinforcement : Nylon belt plies Steel belt plies Tread band and tread groove design Separation rubber Casing ply Sidewall Casing ply turn up Bead wire Airtight rubber interior Reinforcement Rim flange in the form of a bead heel Home

9. Labels, Labels, and More Labels! If you have this: You might not need this: Or these: TODAY MICHELIN APPLIES UP TO 12 OPTICAL MARKS FOR OE’s

11. Integration - RfID • Tire Building Process

12. Licensed Global Electronics Suppliers to insure availability (4 currently) • 6 Jan 2003 Michelin announces commercial solution. • AWID - Part Number # APT-2024 • Sharp Electronics (when Japan market starts) • Waiting for customer pull • In July 2005 Hana and ACG became licensee’s

13. Imbedded RFID place in: passenger tire aircraft truck earth mover Imbedded Read Distance (patch on inner surface) 0.6-1.2 meters (1.0 +) 0.4-0.8 meters (about 1.0) 0.2-0.4 meters (0.6-1.0) 0.1-0.2 meters (0.2-0.3) Detuning by Carbon in Rubber

14. Integration - RfID Label • Where should the tag be affixed? Unreliable Reads Works in Stack Uniform and Reliable

15. Participate in Industry and Standards Groups AIAG B11 – History Automotive Industry Action • 20 Feb 2001 – First AIAG Tire and Wheel Identification task force meeting was convened. • 15 Feb 2002- B-11 standards for RfID Logistics established • 6 Jan 2003 Michelin announces commercial solution. • 31 March 2004 Michelin petitions to reopen B11 and make it ePC compliant. • 18 May 2004 AIAG and ePC work together to complete revised B11 that complies with EPC. • Expected 2005 – Migration to ISO 18000-6c • KEY Meeting Dec 7,2005 in Detroit (EPC, Odette, AIAG, DoD, OE and Tire manuf. to create single standard = same RFID to OE and Retail and Military)

16. When should you commission an RFID tag? Value requires embedding early.2005 early applications likely “slap and ship” driven by retail and supply chain Embedded in Packaging  Michelin Solution Applied During Manufacturing Applied During Inbound Logistics Opportunities to Derive Value Applied During Outbound Logistics  Today “Slap and Ship” (Walmart,DoD) Applied at Point of Sale “Cost” per tag to commission

17. Ideal Case ONE BASE NUMBER TO ALL • Same RfID Data (serial number, manuf number, product number, relavent DI’s) • Retail : • OE’s : • Gov : • Aircraft: • Commercial :

18. Tire Serialization = Bar Code Number + Serial Number • Today • Bar Code (UPC) Manufacturer # + Product # • Evolving to: • Electronic Product Code (EPC) Manufacturer # + Product # + Serial # + DI DI = Data Identifier

19. JATMA ATA/Spec 2000 DoD RMA EPC AIAG B11 Odette ISO 18000 DoT VDA ANSI Colored circles are scaled to data requirement. White circles are TBD

20. 2004 -2005 Data Standards Driving Progress and Adoption ATA/Spec 2000 DoD EPC ? AIAG B11 EPC DoT DoT Odette/ JATMA

21. Tags on Pallets EPC Network

22. RFID Operation (Passive Tags) APPLICATION INTERROGATOR RF TAG Tag Physical Memory Decoder AIR INTERFACE Logical Memory Map Encoder DEVICECOMMANDS Tag Driver and Mapping Rules COMMANDS APPLICATIONCOMMANDS Command / Response Unit Application Program Interface APPLICATIONRESPONSES RESPONSES DEVICERESPONSES Logical Memory Note: The Logical Memory Map in the Tag Physical Memory is given by the Tag architecture and the mapping rules in the Tag Driver. All the information in the Logical Memory is represented in the Logical Memory Map DATA PROTOCOL PROCESSOR PHYSICAL INTERROGATOR ISO/IEC 15961 ISO/IEC 15962 ISO/IEC 15962 Annexes ISO/IEC 18000

23. We want to start together to influence this area Areas of Review • Data • Volume of data • Legacy system’s potential need to change to take advantage of RFID (unless it is seen as a new bar code) • Business Processes that need to change to really leverage benefits • The need to drive long term ability for data synchronization with partners (i.e. UCCnet and potential Collaborative Planning Forecasting & Replenishment) • Other EPC standards that are implied to by compliant (GLN numbers) • Data Referentials - needs to be flexible but manageable across ..... • Channels (retail, OEM) • Usage (on board data vs license plate) • Partners (Ford, GM, Toyota, Honda, etc)

24. Blocks vs Fields of Data • Bar codes are one at a time • Two-dimensional symbols are often blocks of data • Data rich RF tags are blocks of data • Serial number only tags require data base / communications access to identify the data • Are your systems ready for these changes? • Are you ready for the investment to enable these changes?