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Barcodes, RFID or Smart Items? Evaluating track and trace technology today and tommorow

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  • Die Schlüsselposition der Perv.Comp.Systeme führt zu einer noch stärkeren Informatisierung der realen Welt
  • “ penalty paid to the producer for loss” ist eigentlich “penalty paid to the producer for loss and loss of capacity for reshipment”
  • “ penalty paid to the producer for loss” ist eigentlich “penalty paid to the producer for loss and loss of capacity for reshipment”
  • Further values influencing the profit level, e.g. speed of delivery, are omitted for reasons of simplicity. For further extension of the profit function several additional factors can easily be included.
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    • 1. Till Riedel Barcodes, RFID orTecOUniversität Karlsruhe (TH) Smart Items? Evaluating track and trace technology today and tommorow
    • 2. Telecooperation Office (TecO) Founded 15 years ago as cooperation between CEC(SAP) and Uni Karlsruhe Application oriented research 5 RAs, 15-20 Students IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 100% third-party funded Industry, e.g. SAP, Microsoft, Daimler, Nokia, Phillips, Infineon, KDDI EU-Projects, national funding Focus Ubiquitous Computing Integration of ID und Computer Technology in objects e.g. RFID, sensing, sensor networks, lokations systems2 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 3. Motivation Information Information systems Files IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 Data bases Object-ID State Processes Barcode RFID Sensor Smart Manual scanning Tags network Items Accumulation s Real Objects, items, activities, world events Source(adapted): Fleisch, et al.: Die betriebswirtschaftliche Vision des Internets der Dinge. Relevance Control of complex information flows between processes in the real world and computer-based information systems3 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 4. Overview RFID Technology (today) Challenges IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 Smart Items Technology (tomorrow) Bridging the Gap: Integration into Business Processes Barcodes vs RFID vs Smart Items Cost Benefit Analysis4 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 5. Item Level taggingwith RFIDPossibilities and Limitations
    • 6. RFID: Item Level Tagging LoCostix: Low Cost/Mass Printed Tags IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 EPC Gen2 compliant Unique ID for every item Re-Writeable memory Possibility to integrate extra data item history best before date memory costs!! Printed antennas/ Strep application in print process6 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 7. RFID Communication Principles passive RF technology bi-directional RF communication via reader < synchronous messaging IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 no tag to tag interaction powered by reader slotted aloah protocol7 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 8. RFID Problems reading probabilities only converge towards 1 in bulk top figure: 40 tags realistic: 10s for 100 of 120 tags IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 Presence of a tag can only be answered probabilistically Reading errors are often systematic (bottom figure) You need infrastructure Readers cost Communication uplinks Tracking only possible via check points You dont know what happens in between8 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 9. Smart ItemTechnologyBridging the Gap betweenVirtual and Real World
    • 10. Technology: Wireless Sensor Networks Miniaturized wireless sensor network systems Active RFID + Sensing + Networking + Logic Battery (Back side 20mm Temperature IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 CR1632) (analog) Motion Light (digital) (analog) uPart 1/40 Microcontroller and Communication Programmable Analog-Digital converter Digital I/O10 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 11. WSN Communication Principles active RF technology bi-directional RF communication via reader asynchronous messaging IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 tag to tag interaction collaborative monitoring Autonomous/battery driven multihop routing Energy-efficient commmunication11 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 12. Vision: Smart Items (SI) Smart Items = items + embedded wireless sensor systems Items = goods, tools, equipment, ... IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 + = Smart Item can autonomously recognize, process, decide, communicate and act More precise: Continuously and direct acquisition of environment via sensing Recognition of own state (="Smartness") Local processing, decision making and reaction (=proactivity) Communication to other Smart Items (=collaboration) Affect the environment through actuators12 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 13. Smart Items: Relocation of Computation DigiClip (2004) Couple paper-based documents to computer- based document management systems App: Active physical (paper-based) documents IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 eSeal (2004) Transform electronic contracts onto physical items App: Trustworthy, continuous self-supervision of goods during transport Collaborative Business Items (2006) Collaborative detection of hazardous situations of chemical goods App: safety provision for worker, environment Hazardous materials13 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 14. Bridging the Gap Virtual World IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 file:///home/pptfactory/temp/Personal/Downloads/mycomputer.png CRU D Real World14 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 15. RFID Virtual World IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 CRU RFID D Real World15 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 16. Wireless Sensor Networks Virtual World IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 CRU WSN D Real World16 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 17. Smart Items Virtual World IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 SI Real World17 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 18. Example: Hazardous Goods with SI SAP Environment Health and Safety (EH&S) Storage Regulations Incompatibility Absolute volume limit Temperature / Environmental constraints IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 Requires continuous monitoring Local action without backend system B u s in e s s L o g ic B a c k e n d Task S e n s o r N e tw o rk R e lo c a te d Task C o lla b o r a tiv e B u s in e s s Ite m s18 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 19. CoBIs – Implementation TecO & CoBIs: http://www.cobis- online.de CoBIs Usage in Hull, UK IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 Site: BP chemical plant Deployment of 20+ nodes for 1 month Network/Middleware integration support (WLAN, UPnP) Integration with SAP EH&S solution19 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 20. Cost Benefit AnalysisAre smart Items/RFIDs beneficialcompared to bar codes?
    • 21. Logistics Scenario IQPC Kongress Anti-Counterfeiting Pharma 15.07.200821 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 22. Feature Matrix IQPC Kongress Anti-Counterfeiting Pharma 15.07.200822 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 23. Logistics Use Case Potentials 1. Reduction of critical situations for goods return costs costs for removal of defective goods lower transport costs due to lower reshipping rate IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 2. Clear assignment of responsibilities transparent supply chain process clearer separation of costs between supplier and shipper 3. Early Identification defective and lost goods raise consumer (receiver) satisfaction23 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 24. Cost/Benefit Analysis Supplier Shipper IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 Simple, supplier Simple shipper ∏ = turnover ∏ = turnover per Shipment per Shipment − penalty paid to − costs for processing defective good producer for loss + penalty for shipper for loss − fixed costs − fixed costs24 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 25. Cost/Benefit Analysis Supplier Shipper IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 Adv. supplier Adv. shipper ∏ = turnover ∏ = turnover perShipment per Shipment − costs for processing defective goods − penalty for loss + penalty for shipper for damage − penalty for damage − comm. costs + penalty for shipper for loss + not quantifiable adv. + not quantifiable advantage − fixed costs including − fixed costs plus tag invest tag investment25 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 26. Analysis from the Suppliers Point of View Adv. SI, supplier ∏ = ((1−ω)pgood − cproduction ρ · (cSI·ν + coperation)) · qsales per Shipment − (ω − φ) · qsales · cretour costs for processing defective goods + φ · qsales · s penalty for shipper for damage + (1−κ) · ψ · s · qsales penalty for shipper for loss IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 + not quantifiable advantage W − (Cfix + Cfix,SI) fixed costs plus SI invest Cfix,SI additional fixed costs using Smart Items (infrastructure) coperation variable operational costs per SI and shipment (e.g. recharge battery, programming) cSI acquisition costs of Smart Item s penalty depending on cost of goods (shipper ⇒ supplier) W non quantifiable advantage through usage of Smart Items (consumer satisfaction, etc.) ρ ∈ (0,1] factor of density, ratio of Smart Item quantity to quantity of goods ν ∈ [0,1] factor of maintenance: ν = 0 all SI get shipped back (reusable); ν = 1 no SI is returned ω ∈ [0,1] ratio of defective goods delivered to customer φ ∈ [0,1] ratio of triggered Smart Items, 0 ≤ φ ≤ ω ≤ 1 ψ ∈ [0,1] ratio of searched (potentially lost) goods during shipping κ ∈ [0,1] ratio of recovered goods (previously lost)26 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 27. Analysis from the Customers Point of View Profit function: quality and completeness aggregating the profit level u IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 best case: delivery complete without defective goods normalized Cobb-Douglas function with saturation u(0; 0) = 1 u(ψ,ω) = (1 − ψ)2 · (1 − ω)2 customer utility function ũ according to the preferences of the customer maps monetary units onto a scale comparable with u Are Smart Items/RFID beneficial compared to bar codes? ũ (m* - m’) < u(y*,w*) - u(y’,w’)27 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 28. Conclusion Limitations can be overcome by technology Today: Barcode vs RFID Tomorrow: RFID vs Smart Items New Technology leads to: IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 Extra costs New possibilities !! Monitoring, Tracking and Tracing -> Convergence Real/Virtual World Work with physical items in business logic Changes in Business Logic If you want to use the possibilities and work around the problems Can you really cope with the extra data? Questions remain: What is the ROI for RFID technologies? What are the new features „worth“? Needed: Models to calculate and to evaluate the cost and benefits of track and trace technology on your business process.28 TecO/Universität Karlsruhe(TH) -Till Riedel
    • 29. IQPC Kongress Anti-Counterfeiting Pharma 15.07.2008 Questions ?29 TecO/Universität Karlsruhe(TH) -Till Riedel

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