The document discusses the use of radio frequency identification (RFID) technology in operations management, including how RFID works, its history and applications in supply chain management, asset tracking, inventory systems and more. It also outlines the differences between passive and active RFID tags and some concerns around RFID such as standardization and privacy issues. The future of RFID is seen as promising for further enhancing operations efficiency.

1. Use Of RFID In Operations Management
Use of RFID in Operation
Management – A Report
GROUP O2:
HARINI VALLURI
SOMAN NAHATA
ANKIT JANGALWA
GANDHARV RAJ SETHI
VISHWAJEET NARAYAN
2011
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2. Use Of RFID In Operations Management
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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4. Use Of RFID In Operations Management
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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5. Use Of RFID In Operations Management
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 Very Low Very High
tag
Range Up to 100m Up to 3-5m, usually less
Multi-tag reading 1000’s of tags recognized – up Few hundred within 3m of
to 100mph Reader
Data Storage Up to 128Kb or read/write 128 bytes of read/write
with sophisticated search and
access
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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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10. Use Of RFID In Operations Management
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
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