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

Till Riedel
Barcodes, RFID or
TecO
Universität Karlsruhe (TH)
Smart Items?
Evaluating track and trace technology
today and tommorow

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 systems

2
TecO/Universität Karlsruhe(TH) -Till Riedel

Motivation

Information Information
systems
Files

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 systems
3

Overview

RFID
Technology (today)
Challenges

Smart Items
Technology (tomorrow)
Bridging the Gap: Integration into
Business Processes

Barcodes vs RFID vs Smart Items
Cost Benefit Analysis
4

Item Level tagging
with RFID
Possibilities and Limitations

RFID: Item Level Tagging

LoCostix: Low Cost/Mass Printed Tags

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 process
6

RFID Communication Principles

passive RF technology
bi-directional RF communication
via reader
< synchronous messaging

no tag to tag interaction
powered by reader
slotted aloah protocol

7

RFID Problems

reading probabilities only
converge towards 1 in bulk
top figure: 40 tags
realistic: 10s for 100 of 120 tags

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 don't know what happens in
between

8

Smart ItemTechnology
Bridging the Gap between
Virtual and Real World

Technology: Wireless Sensor Networks

Miniaturized wireless sensor network systems
Active RFID + Sensing + Networking + Logic

Battery
(Back side 20mm Temperature

CR1632) (analog)

Motion Light
(digital) (analog)

uPart 1/40
Microcontroller and Communication
Programmable
Analog-Digital converter
Digital I/O
10

WSN Communication Principles

active RF technology
bi-directional RF communication via
reader
asynchronous messaging

tag to tag interaction
collaborative monitoring
Autonomous/battery driven
multihop routing
Energy-efficient commmunication

11

Vision: Smart Items (SI)

Smart Items = items + embedded wireless sensor systems
Items = goods, tools, equipment, ...

+ =

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 actuators

12

Smart Items: Relocation of Computation
DigiClip (2004)
Couple paper-based documents to computer-
based document management systems
App: Active physical (paper-based) documents

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 materials

13

Bridging the Gap

Virtual World

file:///home/pptfactory/temp/Personal/Downloads/mycomputer.png

CRU
D

Real World
14

RFID

Virtual World

CRU RFID
D

Real World
15

Wireless Sensor Networks

Virtual World

CRU WSN
D

Real World
16

Smart Items

Virtual World

SI
Real World
17

Example: Hazardous Goods with SI
SAP Environment Health and Safety (EH&S)
Storage Regulations
Incompatibility
Absolute volume limit
Temperature / Environmental constraints

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 s
18

CoBIs – Implementation
TecO & CoBIs: http://www.cobis-
online.de
CoBIs Usage in Hull, UK

Site: BP chemical plant
Deployment of 20+ nodes for
1 month
Network/Middleware
integration support (WLAN,
UPnP)
Integration with SAP EH&S
solution

19

Cost Benefit Analysis
Are smart Items/RFIDs beneficial
compared to bar codes?

Logistics Scenario

21

Feature Matrix

22

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

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) satisfaction

23

Cost/Benefit Analysis

Supplier Shipper

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 costs

24

Cost/Benefit Analysis

Supplier Shipper

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 investment

25

Analysis from the Supplier's 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

+ 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

Analysis from the Customer's Point of View

Profit function:
quality and completeness

aggregating the profit level u

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

Conclusion

Limitations can be overcome by technology
Today: Barcode vs RFID
Tomorrow: RFID vs Smart Items

New Technology leads to:

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


Questions ?

29

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

Recomendados

Recomendados

Mais conteúdo relacionado

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

Semelhante a Barcodes, RFID or Smart Items? Evaluating track and trace technology today and tommorow (20)

Mais de Till Riedel

Mais de Till Riedel (14)

Último

Último (20)

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

Notas do Editor