Financial Stewardship Institute Capstone Presentation 2014

Financial Stewardship Institute Capstone Presentation 2014Angie DonahueJackie EtchisonTuri HolteLynn EgliLisa KnoxPam PalanukReally Fabulously Intelligent DucksOur PurposeOur team was tasked with making a recommendation for the procurement and maintenance of a Radio Frequency Identification (RFID) tracking system for bedroom and lounge furniture used in residence halls. This system will be used to track and maintain furniture inventory used in individual bedrooms and common areas such as lounges, classrooms, and study spaces.

And with this slide, your eyes glaze over because that sounded far too jargon-y to pay attention to2Whats In a Residence Hall?Room configuration (example)

our sponsor, Gus Lim, the Director of UO Housing Facilities Services explained it to us like this at our first meeting: I want to be able to walk down the halls and collect information about where furniture is, without entering students rooms.

Lets talk for a minute about what RFID is because you probably know, but unless you stop to consider the different types of technology, its easy for us laypeople to get confused.RFID stands for Radio Frequency IDentification. Its a type of data-capture, data-reader technology. There are several different kinds of data-capture technology that we encounter all the time, so let me delineate a few of them.

3What is Data Capture? What is RFID?

The oldest and most easily recognizable is the bar code. There is information stored in the amount of spaces in the lines across the code.

There are newer versions of these, typically referred to as 2D barcodes. Even more data is able to be stored in these codes.

These codes are read by either lasers or imagers. You recognize these at the grocery store or in the handheld readers at Target. Weve all seen the red or green lines going across a bar code. Additionally these codes are used by logistics an shipping companies (who else loves tracking their UPS and FedEx packages?) or in warehouses.

The thing to note about these technologies is that they are line of sight technologies the reader requires the ability to capture the data by seeing the bar code that holds the information.

RFID on the other hand, has activity both in the reader and in the item being read. When the reader comes within a set vicinity of a tag, the chip in the tag is excited and sends the information to the reader, and it doesnt need line of sight to do it. This is what those little posts are at the exits of stores. A common RFID distance is approximately three feet, so when you walk between those posts on your way out of a store, and RFID tags that you might have on your person or in a bag youre carrying are excited by the readers in the posts.One more RFID comes in two flavors: Active and Passive. What Ive just described at the store exit is passive, a passive RFID tag requires the readers energy to transmit data, an active RFID tag has its own energy source. The active flavor has a larger vicinity within which to be read, than the passive flavor.

So when Gus told us his first-choice solution was something where he could walk down the hall and read inventory without entering students rooms, this is what hes asking for. A line of sight solution is an option, but its not what he is asking for.

Honestly, there are a myriad number of applications data capture is used for things most of us havent considered. Jackie is going to tell us about some of them now.4Case Study: AeroScout System,Oregon State University Disability Access Services System Overview: Real-time tracking of 460 pieces of high value equipment, tags are battery powered and utilize the OSU Wi-Fi network. System Expenses: Initial implementation costs $78K, breakdown below.- $50K purchase price of system- Tags $25 each (500*25 = $12,500)- Annual maintenance of the system is $15,700- IT involvement is necessary for both implementation and management of the system. This additional cost was not factored in the total.

In order to understand all of the RFID technical information in a more tangible way, and to hopefully find a practical solution already in use locally, we looked across OUS and the community to see how RFID technology was being utilized. The results were the following three case studies.FIRST SLIDEThe first case study involved the OSU Disability Access Services Department. They have installed a real-time RFID tracking system for 460 high value pieces of equipment. This AeroScout RFID system includes battery powered tags that utilize the OSU Wi-Fi network. The system was put in place for inventory management purposes. The department was sending employees to verify furniture locations each term, in addition to having them regularly find and return improperly moved furniture. The area the workers were searching was between 70-100 classrooms, and on average OSU would lose $2000 to $5000 in assets per term.The software for their system is two-part: First, there is a Software Manager, where all of the background data is stored so that the system can function.Second, there is the User Interface. The interface is solely web based, and allows you to add/delete assets and move furniture home locations. Furniture locations are shown through real time mapping, and tracking historical movements is possible. The system overall is intuitive and easy to learn.As already mentioned, the tags areBattery Powered. The life expectancy on the tags is five years, at which point the batteries on the tags can be replaced, or the entire tag can be replaced. Initial implementation of the system, including the tags, was just under $78,000. Additionally, the annual maintenance on the system costs close to $16,000, which includes the yearly support contract. Tags cost $25/each, so the number of assets tracked, and their individual value, greatly impacts the overall return on investment. The system also required IT for implementation, and they continue to be involved in system maintenance. IT cost is not factored in these totals, as OSU has not actively tracked these expenditures.

5Case Study: AeroScout System,Oregon State University Disability Access Services Cost Benefit AnalysisWhile the system has all of the features Housing would like in an RFID system, to be considered, the system must cost under $100K. Wi-Fi tags, at $25 each, are too expensive for this to be a feasible solution. a) Tag cost would need to stay under $1.75 tag, as 20,000 tags are neededb) 20,000*$1.75 = $35Kc) System $50K, Support $15K, Tags $35K = $100K Threshold

Ultimately, our conclusion was that a real time tracking system utilizing the Wi-Fi network would meet Housings needs, but is too costly. In order for the project to stay under $100,000, which was the maximum threshold set by housing, tag cost would need to be less than $1.75 each. (You can see this worked out on slide, with a system cost of $50,000 and a support cost of $15,000 the tag cost would need to stay below $35,000.)

6Sacred Heart Medical Center - RiverBendSystem Overview: Real-time tracking of hundreds of IV pumps, valued at $3K each, and a scarce critical resource. Tags are battery powered and utilize the secure Versus network, not Wi-Fi, but the technology is very similar.System Expense: Tags are approximately $25 each. No additional RFID system costs obtained, as tag costs alone make system unaffordable for Housing.Cost Benefit Analysis: This solution will also not meet the needs of Housing due to high cost.

For our second case study we met with Chris McGuire, the Supply Chain Manager for Sacred Heart Medical Center RiverBend. Chris showed us was the asset tracking system for their IV pumps. These pumps are expensive, approximately $3,000 each, and are always in high demand at the hospital. Pumps tend to accumulate in medical wings because IVs are started in the emergency room or during surgery, and then patients are transferred to medical units until discharge. Before implementation of this new system, pumps were not always available, so a staff culture of hoarding resulted. The hospital can now track the number of pumps on-hand at several charging stations (which are located in supply rooms.) They know how many pumps they should have on hand at each location, and they have identified a critical low number and a critical high number for each station. The data is displayed on a color-coded chart, located in the supply chain hub. This allows the staff to know where pumps need to move to before there is a problem.The tags for these pumps are approximately $25 each, and they are battery operated like the system at OSU. The tracking system does not use the Wi-Fi at the hospital, they use a specialized system purchased for this use. Ultimately, this system is very similar in functionality and cost when compared to the OSU system. This second case study confirmed that the technology is too costly for UO Housing to implement. With that in might, we looked for a more affordable solution.

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Case Study: UO College of Arts and Sciences QR Code Optical Read & Database Option

System Overview: QR ("Quick Response") Code is a barcode that contains data that can be read by a phone's camera, once a reader application has been downloaded. The phone's camera acts like a scanner, allowing it to "read" the barcode, and then directly link the user to a website. In this particular application, once the QR is scanned, the barcode will take you to that specific items information, which is pulled from a database and posted on the web via Drupal, an open sourced software package.

Which brings us to our third case study with CASIT, where they utilize a QR (or a "Quick Response") barcode, which can be read by a phone or tablets camera, once a reader application has been downloaded. The devices camera acts like a scanner, allowing it to "read" the barcode, and then directly link the user to a website. In this particular application, once the QR is scanned, the barcode will take you to that specific items information, which is pulled from a database and posted on the web via Drupal.

8Case Study: UO College of Arts and Sciences QR Code Optical Read & Database OptionPossible Solution for UO Housing?

Pros:The cost to implement would be low, requiring only a programmer to change the data fields currently being used to new categories and a hand held smart phone/tablet/etc.Complete online inventory system, with the ability to have a count of all items and sort by specific categories by exporting data into Excel.

Cons:Optical system would require line of sight (close proximity) scanning.Labor would be required to input the data into the database. Fields can come pre-populated to assist in the data entry process.High risk of user error.

There are some features of the system which make it a feasible alternative for UO Housing.Drupal is open sourced (aka free) software, so no software would need to be purchased. This means that the cost to implement the system would be low. All that would be required is a programmer to change the data fields currently being used to new categories.The only hardware that would need to be purchased would be a hand held smart phone or tablet.Finally, it is a complete online inventory system, with the ability to have a count of all items and sort by specific categories by exporting data into Excel.There are some downsides to the system as well, such as the fact it is an Optical system, and would require line of sight (or close proximity) scanning. This would make reading the barcode difficult, as it would need to be placed in an inconspicuous part of the furniture to avoid students unintentionally damaging the barcode, or of course tampering with it.A substantial amount of labor would be required to input the data into the database. And finally, while fields can come pre-populated to assist in the data entry process, there is a high risk of user error.Turi will now go more in depth about Housings evaluation criteria for an RFID system and how solutions we found were rated.

9Checkpoint with HousingScoring Solution AlternativesOptical Solution similar to UO-developed College of Arts and Sciences application Did not meet Housings requirements due to need for line of sight, close proximity scanningVery affordable system with minimal support costsPaper tags may not last 5-10 years

Optical Quick Reader (QR) Solution / Evaluation CriteriaLocate and read chip info without entering the students dorm roomAffordable SystemUseful Life 5-10 yearsMinimal Support CostOptical GreenMeets criteriaYellowUnknownRedDoes not meet criteriaAt this point, we decided a checkpoint meeting with Gus in Housing was needed. To prepare for the meeting we scored the options we had encountered.At the checkpoint, there were 4 possible technology solutions we had encountered. For each solution we scored 4 criteria, provided by Gus, to determine if the possible solution would meet the needs of this project.The first possible solution was the Optical Quick Reader being used by CAS.Though this system is affordable, and has minimal support costs, however, line of sight close proximity is required to read the tagsDetermined not to be a viable solution

10Checkpoint with HousingScoring Solution AlternativesClose proximity radio frequency read 1-3 inches does not meet UO Housing requirementsUnknown cost

RFID Passive Low FrequencySolution / Evaluation CriteriaLocate and read chip info without entering the students dorm roomAffordable SystemUseful Life 5-10 yearsMinimal Support CostOptical RFID passive LFGreenMeets criteriaYellowUnknownRedDoes not meet criteriaSecond possible solution was RFID using passive low frequency tags. Again, the close proximity required to read the tags does not meet Housings needs.11Checkpoint with HousingScoring Solution AlternativesVery capable long-distance (up to 30 feet) solutionLinks to UO WIFI networkVery expense at $25/tagDoes not meet affordability criteria

RFID ActiveSolution / Evaluation CriteriaLocate and read chip info without entering the students dorm roomAffordable SystemUseful Life 5-10 yearsMinimal Support CostOptical RFID passive LFRFID Active GreenMeets criteriaYellowUnknownRedDoes not meet criteriaThird, RFID Wi-Fi enabled active tags. This option is capable of reading tags from a longer distance, up to 30ft, and can even read through many building materials.However, this system requires the use of very expensive tags and has hefty support requirements, making it cost prohibitive for Housings needs.12Checkpoint with HousingScoring Solution AlternativesPossible solution in RFID Passive UHF (unknown)

No experts on RFID in housing or on FSI team

Housing Procurement recommendation to proceed with Request for Information (RFI)

RFID Passive Ultra-high Frequency (UHF)Solution / Evaluation CriteriaLocate and read chip info without entering the students dorm roomAffordable SystemUseful Life 5-10 yearsMinimal Support CostOptical RFID passive LFRFID Active RFID Passive UHFGreenMeets criteriaYellowUnknownRedDoes not meet criteriaFourth possible solution, RFID Passive Ultra High Frequency tags.This area seems to be the current focus of RFID vendors, featuring lower cost tags with greater read range. However, very little information was publicly available regarding case studies and actual costs. 13Checkpoint with HousingInterim Report: OptionsExplore optical solution instead of radio frequency identification (RFID)Hire consultantPost UO Request for InformationCancel project

So, are we missing something?Researching options we found long range active tags, which are costly, or low range passive tags, which are cheap, but nothing in the middle.We held a checkpoint meeting with our Housing sponsors, and presented several options on how to proceed.Explore optical solution instead of radio frequency identification (RFID)Hire consultantPost UO Request for InformationCancel project14Procurement Process Options

Purchase Order Standard UO terms, $25K or less in five year periodRequest for InformationExploratory. Posted publically with Description of Use and University QuestionsNo quotes obtained. Only publically available informationOn-site presentations optionalNo obligation to move to procurement of any kindRequest for Quote (Informal Procurement)Generally custom terms and conditions$25-$150K over 5 year periodAdvertised at least 5 business days, at least 3 quotes, MWESBObtain quotes with description of product/servicesScore submissionsRequest for Proposal (Formal Procurement)Generally custom terms and conditions>$150K over 5 year periodSignificant statutory procurement requirementsOn-site presentations normally required

So how to proceed? Without an industry expert, our team and Housing sponsors lacked the technical knowledge needed to fully assess options.UO Purchasing and Contracting Services agreed to a special info session go over the options, including the Request for Information, Request for Quote, and Request for Proposal processes. Our team and housing sponsors determined that a Request for Information would be the best option to gather the needed information.We created a draft RFI posting for Housing, presenting 2 possible scenarios. One in which the room is not entered, and one in which the room is entered and the tags are read from a distance.The RFI also included a series of questions for vendors to respond to, which would gather the required information to proceed.15Current State of the ProjectA special thank you to Cathey Susman and Allie OConner in PCS for providing a special training to our team for procurement options.RFI generated multiple responses. Request for Proposals

Where are we now? First, we would like to thank Allie and Cathey from Purchasing and Contracting for all your help, and for providing the most thorough hand outs Ive ever received at a training.The RFI posting closed 4/9, with 3 responses.Our team met with our Housing sponsors last week to review the submittals. The RFI results contained very encouraging information on Ultra High Frequency passive RFID tags.Our sponsors in Housing have invited our team to continue working with this project as part of their purchase committee as they move forward with a Request for Proposals.

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Questions?

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