RFID Development

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RFID Development
Nagen Nagarur Amit Shah Binghamton University
A STOC Presentation
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Agenda

• RFID?
• Types and components
• Benefits
• Performance Improvement - Enterprise
• Performance Improvement Supply Chains
• Case Study
• costs
• Conclusions

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RFID - ??

• Radio Frequency IDentification
• Range 115 KHz 2.4 GHz
• 0.5 m 4.5 m
• Similar to barcode, microchips

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Main Components

• Tag Consisting of microchip, coupling element
  called antenna and battery if it is active tag.
  Passive tags dont have batteries, they get
  activated when they enter in the interrogation
  zone of the interrogator.
• Reader or Interrogator Depending on the
  application some readers not only read but also
  write to the tag.

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Types of RFID

• By type of interaction
• passive
• active
• By flexibility-
• Read only
• Read-write
• By physical form
• Patient bracelet
• Badges
• Embedded microchips
• Asset tags

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Types of RFID
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RFID Additional Components

• EPC
• ONM
• PML
• Savant

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Components

• Electronic Product Code (EPC) code These are
  next generation product identification codes,
  which are very similar to barcodes. The EPC is
  divided into fields that identify the
  manufacturer, product, version, and serial
  number. The EPC stores an extra digit, which
  uniquely identifies a product. To keep the cost
  of the tag low and provide flexibility in terms
  of storing dynamic data associated with the
  product in the database, the EPC is the only
  information stored in the tag.

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• 2. Object Name Server (ONS) Conceptually, very
  similar to Domain Name Server (DNS) that points
  computer sites on World Wide Web. Since only the
  EPC code is stored in the tag, the systems need a
  way of matching the information associated with
  the code. The ONS server accomplishes this.

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• 3. Physical Markup Language (PML) The
  Physical Markup Language (PML) is a new standard
  "language" for describing physical objects. It is
  based on the widely accepted eXtensible Markup
  Language (XML). Together with the EPC and ONS,
  PML completes the fundamental components needed
  to automatically link information with physical
  products.
• The EPC identifies the product the PML
  describes the product and the ONS links them
  together. Standardizing these components will
  provide "universal connectivity" between objects
  in the physical world.
• 4. Savant or RFID Middleware It is the
  application layer, which can be built with
  business intelligence.

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RFID and ERP
Raw Matl. Procurement
Production Line Opt.
SAVANT
Order Management
Transmit EPC
Physical Asset
Inventory Mgmt.
PML Server
Logistics Optimization
Pricing Promotion
ONS Server
Physical TagData StorageData Transfer
ReadersData Capture
MiddlewareFilters DataPushes data to Enterprise
Apps
Event ResponsesVisibility to assetsAlerts on
Event triggersHandles exceptions
Planning OptimizationInventory StatusOrder
StatusRoutingAuto Replenishment
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Current Issues with RFID Technology
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Benefits

• All the benefits of Bar codes and some more
• Advantages over Bar codes
• more automation
• more signals simultaneously
• Better reliability
• Better wear and tear
• Can be written throughout same number can be
  followed throughout lifetime
• Comparatively large amounts of data

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Benefits

• fool proofing
• Asset tracking
• Event responses
• Patient information system
• Resource utilization
• Maintain high security systems
• Performance monitoring and improvement
• Paperless organization

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Fool proofing

• Right delivery to right customer
• Right retrievals and right assembly
• Patient tags identifying patients
• name, picture, medication, operation, etc
• Drugs no errors in matching
• Drugs no counterfeiting

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Asset Tracking

• Tracking machines, jobs, components, trailers
• Wheel chairs
• IV pumps
• Portable X-ray machines
• Any monitoring devices

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Event Responses

• Raise a flag or warning at a particular
  pre-defined event.
• -No. of customers/jobs reaches a
  specific level
• - a customer/item wait time reaches
  a specific level
• - temperature of an item going
  up/down

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Patient Information Systems

• A physician can retrieve/download patient
  information from the main database using RFID.
• History of a car engine can be checked from a
  main database

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Resource utilization

• Location and accounting for
• Machines, trucks, pallets
• Doctors
• Nurses
• Hospital Staff

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Maintain high security systems

• Make sure only relevant materials are in the
  place
• Restrict access to certain areas like
• childrens wards, new virus
• Monitor and track unauthorized persons

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Performance Monitoring and Improving of an
Enterprise
Raw Matl. Procurement
Production Line Opt.
SAVANT
Order Management
Transmit EPC
Physical Asset
Inventory Mgmt.
PML Server
Logistics Optimization
Pricing Promotion
ONS Server
Physical TagData StorageData Transfer
ReadersData Capture
MiddlewareFilters DataPushes data to Enterprise
Apps
Event ResponsesVisibility to assetsAlerts on
Event triggersHandles exceptions
Planning OptimizationInventory StatusOrder
StatusRoutingAuto Replenishment
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Performance monitoring and improvement (Cont)

• Patient location
• Patient wait time
• No of patients in the waiting room
• Arrivals of patients each hour
• Service times
• Reduce asset inventory mobile instruments,
  wheel chairs etc
• Reduce wastage of time for locating assets

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RFID in Supply Chains
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Retailer 1
Distribution Center 2
Raw material vendor 3
Retailer 2
Manufacturer (Production Central Warehouse)
Raw material vendor 1
Distribution Center 1
Retailer 4
Raw material vendor 2
Retailer 5
Distribution Center 3
Retailer 3
Material Flow in Traditional Supply Chain
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Supply Chain Performance

• Supply chain performance improves as individual
  partners improve performance
• RFID helps in transportation
• RFID helps seamless flow of information and
  material throughout the supply chains
• e.g. a car seat manufacturer RFIDs all the
  seats. Assembling company uses the RFID for
  tracking seats in the inventory and in the
  assembly, and for fool proofing.

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Supply Chain Performance

• A supplier can use the opportunity to RFID his
  supplies and leverage that to get gain
  customers!!!

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Performance Monitoring and Improving for Supply
Chains
Raw Matl. Procurement
Production Line Opt.
SAVANT
Order Management
Transmit EPC
Physical Asset
Inventory Mgmt.
PML Server
Logistics Optimization
Pricing Promotion
ONS Server
Physical TagData StorageData Transfer
ReadersData Capture
MiddlewareFilters DataPushes data to Enterprise
Apps
Event ResponsesVisibility to assetsAlerts on
Event triggersHandles exceptions
Planning OptimizationInventory StatusOrder
StatusRoutingAuto Replenishment
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Supply chain performance

• Pharmaceuticals
• inventories
• right product, right quantities
• inventories and inventory management
• returns
• Any other medical supplies

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Paperless organization

• Patients data
• Staff check-in check-out

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Case Study Pharma company
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Case Study Pharma company

• Company manufactures pharmaceuticals
• Study concentrated on deployment of RFID proof
  of concept
• Our objective to improve productivity
• Used Supply Chain Operations Reference (SCOR)
  Model to identify areas for improvement

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SCOR A Process Reference Model
Source Supply Chain Council Inc., USA
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SCOR Process levels
Plan
It defines the scope and content for the Supply
Chain Operations Reference-model. The basis
of competition performance targets are set.
Top Level (Process Types)
Supply Chain Operations Reference-model
Deliver
Source
Make
1
Return
Return

• Companys supply chain is configured from 30
  core process categories. Companies implement
  their operations strategy through the
  configuration they choose for their supply chain.

Configuration Level (Process Categories)
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Process Element Level(Decompose Processes)

• This level defines a companys ability to
  compete successfully in its chosen markets, and
  consists of
• Process element definitions
• Process element information inputs, and outputs
• Process performance metrics
• Best practices, where applicable
• System capabilities required to support best
  practices
• Systems/tools

P1.1
3
P1.3
P1.4
P1.2
Organization implementing best practices to
achieve competitive advantage and to adapt to
changing business conditions
Implementation Level (Decompose Process Elements)
4
Not in scope
Source Supply Chain Council Inc., USA
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SCOR Model Lead Time- TO-BE
S2.1
D4.2
D4.3
D4.6
Chemist
D2.2
Stockist Depot
S2.2
D2.3
D2.4
D2.10
D2.5
D2.9
Zonal DC
S2.2
D2.3
D2.4
D2.10
D2.5
D2.9
D2.7
S2.2
D2.3
D2.4
D2.10
D2.5
D2.9
D2.7
Central DC
S2.2
M2.3a
M2.4
D2.10
M2.5
M2.6
Manufacturer
RM Vendor
M2.3
M2.4
D2.10
M2.5
M2.6
S2.2
X.XX
Areas addressed by RFID
M2.3
M2.4
M2.6
D2.10
Lead Time
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RFID - COSTS
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Estimated Cost of Deployment

• For a 12 billion supplier following would be an
  estimated cost to deploy RFID with a benefits
  stack
• 19 million tags 7,600,000
• Servers and Readers 329,000
• Middleware 183,000
• Consulting and Integration 128,000
• Internal Project team 315,000
• Tag and Reader testing 80,000
• Additional warehouse labor 500,000
• Training 39,000
• Total 9,174,000
• Source Forrester Research

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Savings

• 10 - 20 in operations like inventory and
  manufacturing
• A medium sized hospital may save about 250,000
  per year.

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Conclusions

• RFID is the next/current generation of tracking
  technology
• Very useful for supply chain coordination
• Companies can leverage the deployment with their
  client companies

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RFID - Conclusions

• gives more visibility to the entire enterprise
• a very good method for fool-proofing
• Proper use of data will result in cost
  savings

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?
RFID
Thank You
Nagen Nagarur