RFID Development N. Nagarur

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RFID DevelopmentRFID Development

A STOC Presentation

Nagen NagarurNagen NagarurAmit ShahAmit Shah

Binghamton UniversityBinghamton University

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AgendaAgenda

RFID?RFID? Types and components Types and components Benefits Benefits Performance Improvement - Enterprise Performance Improvement - Enterprise Performance Improvement – Supply ChainsPerformance Improvement – Supply Chains Case StudyCase Study costscosts ConclusionsConclusions

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RFID - ??RFID - ??

Radio Frequency IDentificationRadio Frequency IDentification Range 115 KHz – 2.4 GHzRange 115 KHz – 2.4 GHz 0.5 m – 4.5 m0.5 m – 4.5 m Similar to barcode, microchipsSimilar to barcode, microchips

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Main ComponentsMain Components

Tag: Consisting of microchip, coupling element Tag: Consisting of microchip, coupling element called antenna and battery if it is active tag. Passive called antenna and battery if it is active tag. Passive tags don’t have batteries, they get activated when tags don’t have batteries, they get activated when they enter in the interrogation zone of the they enter in the interrogation zone of the interrogator.interrogator.

Reader or Interrogator: Depending on the Reader or Interrogator: Depending on the application some readers not only read but also application some readers not only read but also write to the tag.write to the tag.

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Types of RFIDTypes of RFID

By type of interaction – By type of interaction – passivepassive activeactive

By flexibility-By flexibility- Read onlyRead only Read-writeRead-write

By physical formBy physical form Patient braceletPatient bracelet BadgesBadges Embedded microchipsEmbedded microchips Asset tagsAsset tags

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Types of RFIDTypes of RFID

Any Tag where a battery is the sole source of energy. They may be capable of broad-band peer-to-peer communication with other active tags in same frequency band and with readers.

Active Tag

Class 4

Any Tag that embeds battery technology to assist in providing power for the tag i.e. the battery is not the sole source of energy. These tags may support broad band communication

Semi-Passive Tag

Class 3

These tag include “Write-Many” capabilities as well as have increased memory space

Passive Functional Tag

Class 2

Contains EPC in an unalterable form. Class 0 programmed at the time of manufacturing to assure uniqueness of the Id while Class 1 are referred as WORM.Class 0 has a factory programmed 96 bit code whereas Class 1 facilitates user programmable codes

Passive Identity Tag

Class 0/ Class 1

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RFID – Additional ComponentsRFID – Additional Components

EPCEPC ONMONM PMLPML SavantSavant

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ComponentsComponents

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

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2. O2. Object bject NName ame SServer (ONS): Conceptually, very erver (ONS): Conceptually, very similar to Domain Name Server (DNS) that points similar to Domain Name Server (DNS) that points computer sites on World Wide Web. Since only computer sites on World Wide Web. Since only the EPC code is stored in the tag, the systems the EPC code is stored in the tag, the systems need a way of matching the information need a way of matching the information associated with the code. The ONS server associated with the code. The ONS server accomplishes this.accomplishes this.

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3. P3. Physical hysical MMarkup arkup LLanguage (PML): The Physical Markup anguage (PML): The Physical Markup Language (PML) is a new standard "language" for Language (PML) is a new standard "language" for describing physical objects. It is based on the widely describing physical objects. It is based on the widely accepted eXtensible Markup Language (XML). Together accepted eXtensible Markup Language (XML). Together with the EPC and ONS, PML completes the fundamental with the EPC and ONS, PML completes the fundamental components needed to automatically link information with components needed to automatically link information with physical products. physical products.

The EPC identifies the product; the PML describes the The EPC identifies the product; the PML describes the product; and the ONS links them together. Standardizing product; and the ONS links them together. Standardizing these components will provide "universal connectivity" these components will provide "universal connectivity" between objects in the physical world.between objects in the physical world.

4. Savant or RFID Middleware4. Savant or RFID Middleware: It is the application layer, : It is the application layer, which can be built with business intelligence. which can be built with business intelligence.

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RFID and ERPRFID and ERP

Physical TagData StorageData Transfer

Transmit EPCPhysical Asset

ReadersData Capture

MiddlewareFilters DataPushes data to Enterprise Apps

Event ResponsesVisibility to assetsAlerts on Event triggersHandles exceptions

Planning & OptimizationInventory StatusOrder StatusRoutingAuto Replenishment

SAVANT

PML Server

ONS Server

Production Line Opt.

Raw Matl. Procurement

Order Management

Logistics Optimization

Pricing & Promotion

Inventory Mgmt.

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Current Issues with RFID Current Issues with RFID TechnologyTechnology

Some RFID middleware vendors have developed the middleware including some packaged application features which are best suited to meet the needs of time strapped early adopters.

RFID Middleware should include balanced combination of core infrastructure & packaged app features,including device management, integration, data management, and packaged business logic

Maturity of RFID Middleware

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Different tag types are required for different usages (range, material substrate, environment) & limitations in physics.

Larger range at small sizes and lower power and single Frequency for all tag types.

Maturity of Tag and Reader Technology

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Ranges from 12 cents - Max 40 cents Maximum 5 cents Cost of tags 5

Approx 65% - 85% detection is achieved with passive tags. Though active tags have better reliability as compared to passive tags their shorter operating cost, higher cost and maintenance required by the batteries negates its use.

100% (i.e. all tags should get detected by the reader)

Tag reliability4

Paper based information sharing in the form of sales report. Currently, the level of transparency between different levels is very low, leading to false demand patterns and heavy inventories.

All partners of the supply chain share the accurate information pertaining to a product with the manufacturer of that product on the real time basis.

Level of Information Sharing

3

No integration or only within few partner of the whole chain

Across all the partners in the supply chain

Level of Integration 2

Pallet or Case level Item level Level of tagging 1

Actual/ current statusIdealParameter

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BenefitsBenefits

All the benefits of Bar codes and some moreAll the benefits of Bar codes and some more

Advantages over Bar codesAdvantages over Bar codes more automationmore automation more signals simultaneouslymore signals simultaneouslyBetter reliabilityBetter reliabilityBetter wear and tearBetter wear and tearCan be written throughout – same number can be Can be written throughout – same number can be

followed throughout lifetimefollowed throughout lifetimeComparatively large amounts of dataComparatively large amounts of data

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BenefitsBenefits

fool proofingfool proofing Asset trackingAsset tracking Event responsesEvent responses Patient information systemPatient information system Resource utilizationResource utilization Maintain high security systemsMaintain high security systems Performance monitoring and improvementPerformance monitoring and improvement Paperless organization Paperless organization

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Fool proofingFool proofing

Right delivery to right customerRight delivery to right customer Right retrievals and right assemblyRight retrievals and right assembly Patient tags – identifying patient’sPatient tags – identifying patient’s name, picture, medication, operation, etcname, picture, medication, operation, etc Drugs – no errors in matchingDrugs – no errors in matching Drugs – no counterfeitingDrugs – no counterfeiting

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Asset TrackingAsset Tracking

Tracking machines, jobs, components, Tracking machines, jobs, components, trailerstrailers

Wheel chairs Wheel chairs IV pumpsIV pumps Portable X-ray machinesPortable X-ray machines Any monitoring devicesAny monitoring devices

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Event ResponsesEvent Responses

Raise a flag or warning at a particular pre-Raise a flag or warning at a particular pre-defined event.defined event.

-No. of customers/jobs reaches a specific level-No. of customers/jobs reaches a specific level

- a customer/item wait time reaches a specific level- a customer/item wait time reaches a specific level - temperature of an item going up/down- temperature of an item going up/down

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Patient Information SystemsPatient Information Systems

A physician can retrieve/download patient A physician can retrieve/download patient information from the main database using RFID.information from the main database using RFID.

History of a car engine can be checked from a main History of a car engine can be checked from a main databasedatabase

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Resource utilizationResource utilization

Location and accounting for: Location and accounting for: Machines, trucks, palletsMachines, trucks, pallets DoctorsDoctors NursesNurses Hospital StaffHospital Staff

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Maintain high security systemsMaintain high security systems

Make sure only relevant materials are in the placeMake sure only relevant materials are in the place Restrict access to certain areas likeRestrict access to certain areas like children’s wards, new viruschildren’s wards, new virus Monitor and track unauthorized personsMonitor and track unauthorized persons

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Performance Monitoring and Improving Performance Monitoring and Improving of an Enterpriseof an Enterprise



ReadersData Capture




SAVANT

PML Server

ONS Server



Order Management


Pricing & Promotion

Inventory Mgmt.

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Performance monitoring and Performance monitoring and improvement (Cont)improvement (Cont)

Patient locationPatient location Patient wait timePatient wait time No of patients in the waiting roomNo of patients in the waiting room Arrivals of patients each hourArrivals of patients each hour Service timesService times Reduce asset inventory – mobile Reduce asset inventory – mobile

instruments, wheel chairs etcinstruments, wheel chairs etc Reduce wastage of time for locating assetsReduce wastage of time for locating assets

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RFID in Supply ChainsRFID in Supply Chains

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Raw material vendor 2


Manufacturer (Production + Central Warehouse)

Distribution Center 2


Retailer 5

Retailer 4

Retailer 3

Retailer 2

Retailer 1



Material Flow in Traditional Supply Chain

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Supply Chain PerformanceSupply Chain Performance

Supply chain performance improves as individual Supply chain performance improves as individual partners improve performancepartners improve performance

RFID helps in transportationRFID helps in transportation

RFID helps seamless flow of information and RFID helps seamless flow of information and material throughout the supply chainsmaterial throughout the supply chains

e.g. a car seat manufacturer RFIDs all the seats. e.g. a car seat manufacturer RFIDs all the seats. Assembling company uses the RFID for tracking Assembling company uses the RFID for tracking seats in the inventory and in the assembly, and for seats in the inventory and in the assembly, and for fool proofing.fool proofing.

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Supply Chain PerformanceSupply Chain Performance

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

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Performance Monitoring and Improving Performance Monitoring and Improving for Supply Chainsfor Supply Chains



ReadersData Capture




SAVANT

PML Server

ONS Server



Order Management


Pricing & Promotion

Inventory Mgmt.

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Supply chain performanceSupply chain performance

PharmaceuticalsPharmaceuticals inventoriesinventories right product, right quantitiesright product, right quantities

inventories and inventory managementinventories and inventory management returnsreturnsAny other medical suppliesAny other medical supplies

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Paperless organizationPaperless organization

Patients’ data Patients’ data Staff check-in; check-outStaff check-in; check-out

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Case Study – Pharma companyCase Study – Pharma company

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Case Study – Pharma companyCase Study – Pharma company

Company manufactures pharmaceuticalsCompany manufactures pharmaceuticals Study concentrated on deployment of RFID Study concentrated on deployment of RFID

– proof of concept– proof of concept Our objective – to improve productivityOur objective – to improve productivity Used Supply Chain Operations Reference Used Supply Chain Operations Reference

(SCOR) Model to identify areas for (SCOR) Model to identify areas for improvementimprovement

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SCOR: A Process Reference ModelSCOR: A Process Reference Model

Source: Supply Chain Council Inc., USA

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SCOR Process levelsSCOR Process levelsLevel

# Description Schematic Comments

Top Level(Process Types)

Configuration Level(Process Categories)

Process Element Level(Decompose Processes)

Implementation Level(Decompose Process Elements)

Plan

Source Make Deliver

Return Return

P1.1

P1.2

P1.3 P1.4

It defines the scope and contentfor the Supply Chain OperationsReference-model. The basis ofcompetition performance targets are set.

• Company’s supply chain is “configured” from 30 core “process categories.” Companies implement their operations strategy through the configuration they choose for their supply chain.

• This level defines a company’s 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

Organization implementing best practices to achieve competitive advantage and to adapt to changing business conditions

Sup

ply

Cha

in O

pera

tions

Ref

eren

ce-m

odel

Not

in s

cope

Source: Supply Chain Council Inc., USA

1

4

3

2

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SCOR Model :Lead Time- SCOR Model :Lead Time- “TO-BE” “TO-BE”

Supplier to RM Vendor

RM Vendor

Manufacturer

Central DC

Zonal DC

Stockist Depot

Chemist

Lead TimeM2.3 M2.4 M2.6 D2.10

M2.3

M2.4

D2.10

M2.5

M2.6

S2.2

S2.2

M2.3a

M2.4

D2.10

M2.5

M2.6

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

S2.2

D2.3

D2.4

D2.10

D2.5

D2.9

D2.2

S2.1

D4.2

D4.3

D4.6

X.XX

Areas addressed by RFID

Shrinkage

Shrinkage

Shrinkage

Shrinkage

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RFID - COSTSRFID - COSTS

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Estimated Cost of DeploymentEstimated Cost of Deployment

For a $12 billion supplier following would be an estimated cost to For a $12 billion supplier following would be an estimated cost to deploy RFID with a benefits stackdeploy RFID with a benefits stack

19 million tags:19 million tags: $7,600,000$7,600,000Servers and Readers:Servers and Readers: $329,000$329,000Middleware:Middleware: $183,000$183,000Consulting and Integration:Consulting and Integration: $128,000$128,000Internal Project team:Internal Project team: $315,000$315,000Tag and Reader testing:Tag and Reader testing: $80,000$80,000Additional warehouse labor: Additional warehouse labor: $500,000$500,000Training:Training: $39,000$39,000Total:Total: $9,174,000$9,174,000

Source: Source: Forrester ResearchForrester Research

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0

10

20

30

40

50

60

70

80

Pharma Consumer Elec Apparel Footwear Toys & Hobbies Electronic Media Liquor, Wine,

&Beer

Health & Beauty

Care

Processed Foods Bev Fresh Products

Product Category

Product wise RFID ratio of Margin to Tag cost in Various Industries

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SavingsSavings

10% - 20% in operations like 10% - 20% in operations like inventory and manufacturinginventory and manufacturing

A medium sized hospital may save A medium sized hospital may save about $250,000 per year.about $250,000 per year.

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ConclusionsConclusions

RFID is the next/current generation of RFID is the next/current generation of tracking technologytracking technology

Very useful for supply chain Very useful for supply chain coordinationcoordination

Companies can leverage the Companies can leverage the deployment with their client deployment with their client companiescompanies

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RFID - ConclusionsRFID - Conclusions

gives more visibility to the entire gives more visibility to the entire enterpriseenterprise

a very good method for fool-a very good method for fool-proofingproofing

Proper use of data will result in cost Proper use of data will result in cost savingssavings

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RFID Development N. Nagarur