Use Of RFID In Operations Management

Operations Management 1

2011

Use of RFID in Operation

Management – A Report

GROUP O2: HARINI VALLURI SOMAN NAHATA ANKIT JANGALWA GANDHARV RAJ SETHI VISHWAJEET NARAYAN

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Table of Contents

Introduction ............................................................................................................... 3

Is this the only identification technology? ................................................................ 3

History ........................................................................................................................ 4

Types of RFID .............................................................................................................. 5

1. Passive RFID tags ................................................................................................. 5

2. Active RFID tags ................................................................................................... 5

How RFID Works ......................................................................................................... 7

RFID and operations management .............................................................................. 8

Supply Chain Automation ........................................................................................ 8

Asset Management ................................................................................................. 9

Inventory systems ................................................................................................... 9

Manufacturing Lines .............................................................................................. 10

Identification of patients and hospital staff ........................................................... 10

Other Major Applications of RFID .......................................................................... 10

Timing ............................................................................................................... 10

Livestock ........................................................................................................... 10

NADRA .............................................................................................................. 10

Problems and Concerns ............................................................................................. 11

Global standardization .......................................................................................... 11

Privacy .................................................................................................................. 11

Human Implantation ............................................................................................. 11

Future of RFID ........................................................................................................... 11

Conclusion ................................................................................................................ 12

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INTRODUCTION

Radio frequency identification is the use of an object (typically referred to as an RFID

tag) applied to or incorporated into a product, animal, or person for the purpose of

identification and tracking using radio waves. This means that an RFID device is

physically attached to the object that we wish to identify (at a later time). This is known

as tagging and the object is said to be tagged. In case of objects this tagging may be an

RFID device that is glued on it, in case of animals it may be an injectable tag that is

injected through a special syringe into the animal’s body while in case of a human, and it

may take the form of a wrist band that a person wears. The wrist band contains an RFID

device.

With RFID, the electromagnetic or electrostatic coupling in the RF portion of the

electromagnetic spectrum is used to transmit signals.

Most RFID tags contain at least two parts. One is an integrated circuit for storing and

processing information, modulating and demodulating a radio-frequency (RF) signal, and

other specialized functions. The second is an antenna for receiving and transmitting the

signal.

Some tags can be read from several meters away and beyond the line of sight of the

reader.

RFID is also called dedicated short range communication (DSRC).

IS THIS THE ONLY IDENTIFICATION TECHNOLOGY?

No, this is not the only identification technology. The most ubiquitous identification

technology is Barcode. This is the funny set of thick and thin lines that we see on all

items e.g. computer parts or shampoo bottles. They help identify what the item is, who

made it and such kind of information. At the supermarket, the checkout clerk has a

barcode scanner who read this information and uses it to generate the bill.

This also makes faster to take inventory, when a shop assistant moves with a handheld

barcode reader and checks the items present on the shelves. There is no need to write

an items name, brand, description and other information. This all information is stored

as a number (represented by a bar-code). The bar code scanner reads off this bar code

and hence the number. This number acts as a pointer to particular information. A

database correlates this number with all necessary information like manufacturer, item,

description etc.

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So, the main thing that differentiates the RFID from Barcode reader is that barcode

reader can read the barcode one at a time, this means that however faster barcode

readers you have, however sophisticated barcode software you have, you will always be

physically constrained by one at a time rule, while RFID reader can identify hundreds of

tags in its range within fraction of second.

HISTORY

Today RFID technology is one of the hottest technologies around the world but it is not

a so new technology. The earliest development of an RFID technology was in the 1940s

for aircraft recognition systems. In 1946 Leon Theremin invented a tool for the Soviet

Union which retransmitted incident radio waves with audio information. Even though

this device was not an identification tag, it is considered to be a predecessor of RFID

technology. Similar technology, such as the IFF transponder invented in the United

Kingdom in 1939, was routinely used by the allies in World War II to identify aircraft as

friend or foe. Transponders are still used by most powered aircrafts to this day.

The first true ancestor of modern RFID is a passive radio transponder with memory The

original business plan presented to investors in 1969 showed its uses in transportation

(automotive vehicle identification, automatic toll system, electronic license plate,

electronic manifest, vehicle routing, vehicle performance monitoring), banking

(electronic check book, electronic credit card), security (personnel identification,

automatic gates, surveillance) and medical (identification, patient history).

Animal tracking was one of the earliest large scale uses of this technology yet the first

RFID implementation for operations management was at General Motors in 1984.

After its first time implementation in 1984, RFID has been used in hundreds of

operations and hence enhanced the performance of the companies, using this

technology. The thing that has made this technology popular is the absence of line of

site and its working ability in tough conditions.

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TYPES OF RFID

The RFID tags comes in two major types which are as follows

1. Passive RFID tags

2. Active RFID tags

1. PASSIVE RFID TAGS

Passive RFID tags have no internal power supply. So they

generate power to activate the circuit from the incoming radio

frequency signal from the reader and transmit an extremely

weak signal back to the reader using the back scattering

principle Tag contains an antenna, and a small chip that stores a

small amount of data. Tag is powered by the high power

electromagnetic field generated by the antennas – usually in

doorways. It has a longer life and limited range.

2. ACTIVE RFID TAGS

Unlike passive RFID tags, active RFID tags have their own

internal power source (which is normally a battery); it is

used to power the circuits and to broadcast the response

signal to the reader. Because of the battery the active tags

are larger in size, and more expensive to manufacture.

Active tags has a smaller life (may be a decade) and longer

range than the passive tags. Active RFID tags are used for

higher value items e.g.

a. Shipping containers

b. Electronic assets

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Active RFID Passive RFID

Tag Power Source Internal to tag Energy transferred using RF

from reader

Tag Battery Yes No

Availability of power Continuous Only in field of reader

Required signal strength to

tag

Very Low Very High

Range Up to 100m Up to 3-5m, usually less

Multi-tag reading 1000’s of tags recognized – up

to 100mph

Few hundred within 3m of

Reader

Data Storage Up to 128Kb or read/write

with sophisticated search and

access

128 bytes of read/write

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HOW RFID WORKS

A Radio-Frequency Identification system has three parts:

a. A scanning antenna

b. A transceiver with a decoder to interpret the data

c. A transponder - the RFID tag - that has been programmed with information.

In tracking of some object, the whole tracking process starts with the enquiry signal

from the scanning antenna or the receiver. It sends the radio signal to the object with

the RFID tag. As the tag comes in contact with the radio signals it transmits data, which

is burned into its memory, back to the receiver or reader device. The reader, then

forward the data to the computer system, for database checking and processing

purpose.

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RFID AND OPERATIONS MANAGEMENT

Beginning with bar code in the early 1970s, operations management has depended

upon various AIDC (Automatic Identification & Data Capture) technologies to provide

the accurate, real-time input to manufacturing and supply chain systems so critical to

error-free control and visibility of material flow.

The first RFID deployment for operations management was at General Motors in 1984

when tags were attached to chassis carriers to serve as "license plates" that when read

triggered the just-in-time delivery of the appropriate components for a given vehicle to

the assembly line.

The unique license plate number buried within each $100 RFID tag was system-linked to

the build plan for the specific automobile at the beginning of the line. Upon assembly

completion, the tagged carrier was returned to the head of the line and the process

repeated for another vehicle.

At the time, a typical tag could take 200 to 300 trips down the line before failing -- and,

the resulting cost-per-trip of 30 to 50 cents more than justified the value of the data to

process integrity.

Since 1984, RFID has been deployed in hundreds of operations where environmental

constraints or the absence of line-of-sight access to the tag precludes the use of bar

coding. Examples include item or carrier identification while moving into or through

ovens or machining operations where the tag must provide reliable feedback in spite of

extremes of temperature or contamination by paint or coolants.

SUPPLY CHAIN AUTOMATION

Further, in the supply chain, RFID has been and is now being used in a wide variety of

industrial applications ranging from product carriers to lift trucks to containers, tires and

beer kegs. More recently, RFID labeling of cases and pallets is making a significant

contribution to improved supply chain tracking and visibility for US and European

retailers and many of their suppliers. Logistics & Transportation is a major area of

implementation for RFID technology. For example, Yard Management, Shipping &

Freight and Distribution Centers are some areas where RFID tracking technology is used.

Transportation companies around the world value RFID technology due to its impact on

the business value and efficiency.

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ASSET MANAGEMENT

RFID (Radio Frequency Identification) combined with mobile computing and Web

technologies provide an effective way for organizations to identify and manage their

assets. Mobile computers, with integrated RFID readers, can now deliver a complete set

of tools that eliminate paperwork, give positive proof of identification and prove

attendance. Web based management tools allow organizations to monitor their assets

and make management decisions from anywhere in the world. Web based applications

now mean that third parties, such as manufacturers and contractors can be granted

access to update asset data, including for example, inspection history and transfer

documentation online ensuring that the end user always has accurate, real-time data.

Organizations within the Plant industry are already using RFID tags combined with a

mobile asset management solution to record and monitor the location of their assets,

their current status, whether they have been maintained.

INVENTORY SYSTEMS

An advanced automatic identification technology such as the Auto-ID system based on

the Radio Frequency Identification (RFID) technology has significant value for inventory

systems. Notably, the technology provides an accurate knowledge of the current

inventory. With RFID solution, inventory can be updated in real time without product

movement, scanning or human involvement. Our fully automated system allows

inventory status to be determined and shipping & receiving documents to be generated

automatically. The system could also trigger automatic orders for products that are low

in inventory. The benefits of using RFID systems are:

Provides total asset visibility

Gives full inventory history

Allows reduced inventory-stocking levels

Facilitates "Just-in-Time" deliveries

Provides full process control for products in the facility

Reduces lead-time

Reduces overall cost of operations

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MANUFACTURING LINES

Manufacturers can track and record in-process assembly information into the RFID tag

as an item progresses along the line. The tag information could later be read to produce

a shipping list and invoice. The tag could also remain with the item for later use by field

personnel during installation and maintenance. RFID solutions are ideal for

manufacturers who build several products on a single production line, or manufacture

complex or customized products. Assembly line personnel could use an RFID reader to

verify which processes have been completed, to determine which inspections or tests

are required and to automatically update the central production database.

IDENTIFICATION OF PATIENTS AND HOSPITAL STAFF

Hospitals use RFID systems to identify patients and permit relevant hospital staff to

access medical records. A number of U.S. hospitals have begun implanting patients with

RFID tags and using RFID systems, usually for workflow and inventory management.

In October 2004, the FDA approved USA's first RFID chips that can be implanted in

humans. The 134 kHz RFID chips, from VeriChip Corp. can incorporate personal medical

information and could save lives and limit injuries from errors in medical treatments,

according to the company. Shortly after the approval, authors and anti-RFID activists

discovered a warning letter from the FDA that spelled out serious health risks associated

with the VeriChip. According to the FDA, these include "adverse tissue reaction",

"migration of the implanted transponder", "failure of implanted transponder",

"electrical hazards" and "magnetic resonance imaging [MRI] incompatibility."

Portable RFID reader and barcode scanners are being used to check patient’s ID and

medications before administering any drugs.

OTHER MAJOR APPLICATIONS OF RFID

TIMING – used in sports event to track timing of athletes as they start a race and pass

the stop line.

LIVESTOCK - RFID tags are implanted in animals for tracking and linking the animal to

food, location. It’s applicable to farming as well as exotic breeds in zoos.

NADRA – NADRA has developed an RFID-based driver license that bears the license

holder's personal information and stores data regarding traffic violations, tickets issued,

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and outstanding penalties. The license cards are designed so that driving rights can be

revoked electronically in case of serious violations.

PROBLEMS AND CONCERNS

GLOBAL STANDARDIZATION

The frequencies used for RFID in the USA are currently incompatible with those of

Europe or Japan. Furthermore, no emerging standard has yet become as universal as the

barcode

PRIVACY

The two main privacy concerns regarding RFID are:

1. Since the owner of an item will not necessarily be aware of the presence of an

RFID tag and the tag can be read at a distance without the knowledge of the

individual, it becomes possible to gather sensitive data about an individual

without consent.

2. If a tagged item is paid for by credit card or in conjunction with use of a loyalty

card, then it would be possible to indirectly deduce the identity of the purchaser

by reading the globally unique ID of that item (contained in the RFID tag).

HUMAN IMPLANTATION

The Food and Drug Administration in the US has approved the use of RFID chips in

humans. This has provoked concerns into privacy of individuals as they can potentially

be tracked wherever they go by an identifier unique to them. There are concerns this

could lead to abuse by an authoritarian government or lead to removal of freedoms.

FUTURE OF RFID

Despite the controversies and concerns, RFID technologies are expected to grow quickly

over the next few years because

1. Its worth will increase at a very rapid pace in the coming years.

2. Every industrial operation that needs the data to be collected has application of

the RFID systems.

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3. Companies seek to improve their operations

4. The price of RFID drops.

5. The use of the technology is expected to grow very fast in the fields of health

care, transportation, pharmaceuticals, retailing etc. The largest growth in

revenue from this technology is expected to be from the retailing, commercial

services and health care services.

The growth in the commercial services can be accounted for consumer applications for

example in libraries, rental items tracking etc.

CONCLUSION

RFID is the technology which has finally come of the age. It has myriad possibilities and

uses and can be used in more and more places. So the RFID technology has finally got

attention of the business world because of its serious advantages over the bar code

technology and mainly because of the positive return on investment.

The ability of usage of RFID in absence of physical line of sight and working in

environmental constraints has made the use of this technology in almost every field of

our daily lives from basic tracking of the cattle to the complex RFID systems in car

manufacturing assembly lines. The RFID technology has increased the efficiency of the

businesses with great effectiveness and accuracy. It helped them improve their

operations manifold, in a very short period of time.

This is the time not to wait for the cost of the technology goes down, but to implement

it straight away, because when we compare the benefits of the technology with the cost

of the tags, it is much more than the cost as it saves millions of dollars of the company

hence providing positive ROI on RFID investments.

But there are some disadvantages of the technology as well. The major disadvantage is

the privacy issues. As the person acquires the product having RFID tag, which is not

visible to anyone, except the reader its location can be tracked and the personal

information about that person can be gathered without his permission.

So we can say that RFID technology has made businesses efficient but it has also created

some problems as one is discussed above. Besides these proper implementation of the

technology is also important to get substantial benefits from this technology but its

effective implementation requires good understanding of this technology what it can do

and what it cannot do. This can only be achieved by suitable training.

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References:

http://www.en.wikipedia.org

http://www.electronics.howstuffworks.com

http://www.webopedia.com

http://www.rfid.org

http://www.openlibrary.org

http://msdn.microsoft.com/en-us/library/ms954628.aspx