Improving business processes with RFID technology.

Rakic-Skokovic, M. ; Ostojic, G. ; Lazarevic, M. 等

1. Introduction

In the last two decades, business process improvement has become a widely accepted path to greater efficiency and profitability in operations. Oriented around outcomes instead of routines, business process improvement aims to provide significant change in organizational performance. With the proper solution companies can develop, debug, and run sophisticated business processes that bridge distributed organizations and their suppliers, partners, and customers and meet large-scale information requirements. Implementation of RFID (Radio Frequency Identification) technology can be a potential way to meet these demands.

RFID technology allows a machine-readable and thereby rapid and efficient identification of tagged items. Data obtained is immediately passed on to the overall management information system, thus providing crucial assistance for the exact and up to date IT-supported tracking of movements taken by items within a business. The potential offered by RFID for operative management improvements is enormous and it has become indispensable in the automobile and consumer goods industries, as well as for providers of logistical services.

The use of RFID is particularly beneficial in closed loops requiring the highest level of process security. The examination of RFID deployment must first identify process innovation and improvements. Only then can the selection of suitable technology components and the system integration take place. A structured approach helps to both minimize any potential start-up problems and to fully exploit the potential of RFID.

In order to organize the deployed RFID technology so that it is as effective as possible, the carrying out of a material flow analysis for the business is essential. A resulting draft solution should explain the organizational, process-related and technical changes to be made, should contain a cost-benefit analysis and also provide an initial project plan for the implementation, (Gizanis, 2006).

2. Literature review

A survey of 275 manufacturing companies across a wide range of enterprise sizes and industries found that two-thirds of the companies' RFID implementations were driven in part or entirely by process improvement goals, rather than just by customer mandates. The report found that 67% of smaller companies (under $25 million) are implementing or planning to implement RFID. And these smaller firms are the most likely to be driven by process improvement goals (63%) or both process improvement and mandates (27%), rather than by customer mandates alone (10%), (McBeath, 2006).

By applying RFID technology on the plant floor, manufacturers can seamlessly integrate the newly captured information into the existing information and control infrastructure, thereby using the RFID tag as a unique identifier and minimizing capital equipment costs and investment risk. On the plant floor, RFID will provide the greatest impact in the areas of inventory visibility, labour efficiency and tracking and genealogy. The better a manufacturer is able to collect, manage and use information to drive production assets and processes, the more visibility (and value) it can provide to its trading partners. Increasingly demanding FDA requirements are forcing consumer goods manufacturers of all types to more effectively manage product information, including e.g. tool tracking (Vukelic, 2005; Vukelic, 2006; Vukelic, 2008), lot tracking and related quality data across their entire supply chain. In the event of a product recall, access to reliable, accurate and real-time information is absolutely critical. RFID can also complement existing manufacturing execution system efforts in genealogy tracking, (Chand, 2007).

Scientific literature has widely debated the reasons and the current limits to RFID adoption and related benefits on supply-chain processes. Some authors (Jones et al., 2004) argue that a main reason for RFID diffusion is the capability of tags to provide more information about products than traditional barcodes. Manufacturing site, production lot, expiry date and components type are among information that can be stored into the tag chip.

The availability of real-time information is regarded as the main benefit of RFID adoption for supply-chain processes, for the specific case of the grocery retailing, (prater et al., 2005). Additional outcomes can be found in increased inventory visibility, stock-out reduction, real-time access and update of current store inventory levels, etc (Bushnell, 2000). Despite the achievable benefits, several authors agree that the main limit to a wide use of RFID technology has to be found in its cost (Prater et al., 2005; Karkkainen & Holmstrom 2002; Burnell, 1999). consequently, critics to RFID argue that investments in tags and readers, as well as in the related informatics infrastructure, are still not profitable.

Not every conceivable use of RFID makes sense, at this time. The cost of tags, maturity of solutions, and availability of skilled implementers, is improving dramatically over a short period of time. Ever-increasing numbers of RFID-enabled business process improvements are becoming feasible and cost-justified. Selecting the right approach and timing requires knowledge and creativity.

3. Example of implementation of RFID technology in city of Novi Sad

One of the business processes which can be improved by implementation of RFID technology is parking revenue. Parking plays an important role in the traffic (and logistic) system since all vehicles require a storage location when they are not being used to transport passengers. Whether it is a parking lot or on-street parking there is a problem of parking revenue convenience.

There are different types of parking system in city of Novi Sad: on-street parking, parking lots and garages. Parking revenue is done by a Parkomat, SMS (Short Message Service) message over mobile phone and by parking ticket. Instead of parking revenue collectors there are parking checkers (checking parking price payment). Parking revenue for parking lots and garages is done by parking collectors, because the parking price varies with the time spent on a parking lot or in a garage.

Parking operators face a number of challenges such as:

1) The inability to accurately and intelligently identify, collect and record the data of the vehicles that enter and leave the parking lot then processing this data to better analyze traffic patterns and facilitate client billings.

2) Need to increase the security (and user integrity) of the parking lot.

3) Adding human resources, especially in peak traffic times that burdens operating costs and reduces profitability.

4) Line-ups created for parking payments, especially during peak traffic times that reduces the service levels to customers.

Automated parking revenue systems enable convenience when dealing with already mentioned challenges.

Since RFID technology is contactless identification technology a suggestion was given to use this technology in parking systems. Advantages of RFID technology in comparison to other technologies are:

* No need for physical contact between data carrier and the communication device

* Tags can be used repeatedly

* Robust tags can withstand extreme conditions and temperature

* Low maintenance costs

* Tags available in a range of types, sizes and materials

* Non-line-of-sight communication makes it possible to read and write Tags in dirty conditions.

* RFID tags may be read by the RFID system at one time.

* Extremely low error rate.

We have implemented RFID technology in parking system of city of Novi Sad, meaning both on-street parking and parking lots and garages, thus creating intelligent parking control management system which integrates RFID technology, automatic control technology and applications software.

We have chosen RFID system that is working on frequency of 13.56 MHz because:

* 13.56 tags are less expensive due to their limited coil requirement and

* Some 13.56 MHz tags are anti-collision.

[FIGURE 1 OMITTED]

In designed parking system verification of parking service revenue is done by using passive RFID tags (ISO 15693). There are several types of RFID tags-tickets:

* for invalids (free of charge),

* for people living in parking zone (monthly or yearly payment but only for limited parking area),

* for all others (golden card, only for one month but for all garages, parking lots and on-street parking, see Fig. 1.)

These tags are light, easy to use and to carry with the user (they look like a credit card). Also, they are read/writable (64's block memory space for user define, each block can be written 4 bytes data).

Regulation of vehicle entry/exit parking lot or garage is accomplished by the control centre. In control centre basic component liked to all the others is programmable logic controller (PLC) FESTO, type FEC FC440. This PLC has 16 digital inputs and 8 digital outputs, 2 serial ports and one ethernet interface. other components connected on PLC at entry side of parking lot are: inductive loops, capacitive sensor, barcode printer, display and GSM modem (see Fig. 2.).

GPRS communication between entry and exit barriers is accomplished by Siemens MC 39i modem connected with TTL RS232 cable to EXT port (serial port-extension interface) of PLC.

The exit control centre of the parking lot or a garage also has PLC, but there is a difference with the components connected to it. Besides inductive loop and GSM modem which are also present in the entry control centre, there is a PC, a receipt printer and bar code reader (see Fig. 2.).

[FIGURE 2 OMITTED]

According to the momentary status of inputs (sensors) like inductive loops and demand for printing ticket at the entry part of a parking lot PLC sends output signals to arm barriers and semaphore (indicating lights). Inductive loops are used to detect metal objects (vehicles in front, beneath and behind barriers).

A ticket printer is connected by RS232 cable to first serial port while display for indicating number of free parking places at the parking lot is connected to the second.

Communication between the PC and PLC is over Ethernet interface (twisted pair interface-10BaseT) on a switch.

on a PC there is application for trifling parking service (according to the time spent on a parking lot or garage) which uses PostgreSQL database. Also, there is an application that gives the command to the exit barrier to raise the arm. The PLC is programmed according to IEC 61131-3 standard.

[FIGURE 3 OMITTED]

Implemented parking system expects that parking place user stop a vehicle on inductive loop, and then reader query's a RFID tag (see Fig. 3.). The RFID tag detects the interrogating signal and transmits a response signal containing encoded data back to the receiver. This data is:

* UID--Unique Identification--encode check.

* Validity period--locked data for date, time, and year, so that the tag can be used only in defined period (after locking this data no one can unlock these blocks for reuse).

* Check bit (one block memory) to determine is the user's vehicle already is in the parking lot or not.

This check is practiced for prevention of malfeasance. PLC software analyses gathered data and if it is correct, sends a signal to barrier to lift an arm and sends a command to RFID reader to write on RFID tag information that the vehicle is entering/exiting parking lot. While PLC is processing information, green led diode is blinking, thus informing a user of activity of checking and writing information on tag process. After writing data to RFID tag green led diode stops blinking and user can drive in/out a parking lot (or garage).

If one or all of the named data are not correct, system will inform a user by lighting red led diode. An arm of a barrier will not lift a user can't enter/exit a parking lot. If a user still wants to enter a parking lot (or a garage) he or she must press the pushbutton, placed on a control centre side and follow the procedure already mentioned above. In case of error during exiting parking lot, a parking collector checks an RFID tag to determine the problem. If a problem is related with the validity period parking collector calculates revenue for the time spent from the end of the validity period till now. Calculated time and a price for the parking service are displayed on the PC monitor. Those data could be seen by both a parking collector and a parking place user. After paying for the parking service, parking collector prints a receipt and exit barrier arm lifts, so the user can leave a parking lot or garage. If the problem relates to the value of the check bit then a user of a RFID tag an authorized institution deals with this problem.

Parking collectors at parking lots and garages are authorized to visually check, every now and then, validity period and quality of graphics printed on a RFID tag (in case of a forgery).

This parking system could not be fully automated because of limitations like: lack of needed infrastructure, cost of system implementation, security and privacy concerns.

4. Conclusion

Implementation of the RFID technology, in an existing parking lot access control system in city of Novi Sad, has given benefits to all interest parts (the Parking operator, parking place users and parking collectors).

Parking operator has gain robust system, easy to operate, easy for maintenance, with the reliable RFID tag-ticket check for the prevention of malfeasance. Also, RFID reader is placed in a way that it doesn't violate exterior. Till now collection of the parking service revenue has been increased for 17%.

People using parking place are spending much less time in waiting in line to buy the tickets for the on-street parking and much less time waiting at the entry and exit barriers of a parking lot or garage.

Parking collectors that are working at parking lots and garages are much less involved in collecting revenue. They are only active when dealing with parking place users who don't have correct RFID tag-ticket and, of course, when they have to charge for the parking place users who don't have RFID tag-ticket.

Conclusion is that implementation of RFID technology in parking system leads to process improvement related to:

* Reduced cash handling and streamlined back-office operations

* Scalable system that can fit current and future needs

* Automatic data capture and detailed reporting

* Improvement of traffic flow at peak hours

* Improvement of customer service

* Cash-free convenience

* Quick online access to parking users data related to revenue, thus enabling giving penalty tickets for users.

RFID technology will be more widely used in the next period, when RFID infrastructure will be installed in number of object (facilities, roads, parking lots, etc).

Future research will be directed towards the designing a parking system so that a parking place user will be able just to drive thru and enter/exit parking lot or garage. Also we will try to automate the in and out privileges of the subscriber and then transfer this data to the enterprise software for the traffic analysis that will allow optimization of the human resources needed for traffic flow in and out. For customer payment, the RFID tag could be read to debit a pre-pay system or charge the parking services against a credit card. All of this will facilitate customers entering and leaving and this improves service levels and increases capacity in the parking lot. These benefits will drive higher revenues.

DOI: 10.2507/daaam.scibook.2009.18

5. References

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Bushnell, R. (2000). RFID's wide range of possibilities. Modern Materials Handling Vol. 55., No.1, pp. 37-41, ISSN: 0026-8038

Chand, S. (2007). Embracing RFID technology drives process improvements, Available from: http://www.plantengineering.com/ article/CA6414253.html Accessed: 2008-06-27

Gizanis, D. (2006). Process Improvement with RFID, Available from: http://www.snt-world.com/ Content.Node/boxcontent/ process_improvement_with_rfid.doc Accessed: 2008-06-27

Jones, P.; Clarke-Hill, C., Shears, P., Comfort, D. & Hillier, D. (2004). Radio frequency identification in the UK: opportunities and challenges. International Journal of Retail and Distribution Management Vol. 32., No. 3., pp. 164-171, ISSN: 0959-0552

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McBeath, B. (2006). How Manufacturers are Improving Processes by Using RFID, Available from: http://www.chainlinkresearch.com/research/detail.cfm? guid=823E0D5A-9F41-5EBA-2428-6BAF7BFD1737 Accessed: 2008-06-27

Prater, E.; Frazier, G.V. & Reyes, P.M. (2005). Future impacts of RFID on e-supply chains in grocery retailing. Supply Chain Management: An International Journal Vol. 10., No. 2., pp. 134-142, ISSN: 1359-8546

Vukelic, DJ. & Hodolic, J. (2004). Development a system for automated design of modular fixtures, Proceedings of the 15th International DAAAM Symposium Intelligent Manufacturing & Automation: Globalisation--Technology--Men Nature, Katalinic, B. (Ed.), pp. 489-490, ISBN 978-3-901509-42-1, Vienna Austria, November 2004, DAAAM International Organisation, Vienna

Vukelic, DJ. & Hodolic, J. (2005). System for automated modular fixtures design, Proceedings of the 16th International DAAAM Symposium--Intelligent Manufacturing & Automation: Focus On Young Researches And Scientists, Katalinic, B. (Ed.), pp. 381-382, ISBN 978-3-901509-46-9, Opatija Croatia, October 2005, DAAAM International Organisation, Vienna

Vukelic, DJ. & Hodolic, J. (2008). Development of a system for machining fixture design using case-based reasoning, Journal Research and Design in Commerce & Industry, Vol. 6., No. 22., pp. 39-48, ISSN 1451-4117

This Publication has to be referred as: Rakic-Skokovic, M[arija]; Ostojic, G[ordana]; Lazarevic, M[ilovan] & Stankovski, S[tevan] (2009). Improving Business Processes with RFID Technology, Chapter 18 in DAAAM International Scientific Book 2009, pp. 161-168, B. Katalinic (Ed.), Published by DAAAM International, ISBN 978-3-901509-69-8, ISSN 1726-9687, Vienna, Austria

Authors' data: M.Sc. Rakic-Skokovic, M[arija]; PhD. Ostojic, G[ordana]; M.Sc. Lazarevic, M[ilovan]; PhD. Stankovski, S[tevan], Faculty of Technical Sciences Novi Sad, Trg D. Obradovica 6, 21000 Novi Sad, Republic of Serbia, marija@iis.ns.ac.yu, goca@uns.ac.rs, laza@iis.ns.ac.yu, stevan@uns.ac.rs