RFID Metrics: Decision Making Tools for Today's Supply Chains PDF
Preview RFID Metrics: Decision Making Tools for Today's Supply Chains
RFID METRICS Decision Making Tools for Today’s Supply Chains RFID METRICS Decision Making Tools for Today’s Supply Chains William Oliver Hedgepeth Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Group, an informa business CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2006 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Version Date: 20130916 International Standard Book Number-13: 978-0-8493-7983-3 (eBook - PDF) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. 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CCC is a not-for-profit organization that pro- vides licenses and registration for a variety of users. For organizations that have been granted a pho- tocopy license by the CCC, a separate system of payment has been arranged. Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com Dedication EN PAZ DESCANSE In Memory Eduardo Gustavo Prieto Marzo 19, 1978–Agosto 15, 2003 Now you will not swell the rout Of lads that wore their honours out, Runners whom renown outran And the name died before the man. A.E. Housman1 1. Housman, A. E., To an athlete dying young, in A Shropshire Lad, The World Publishing Company, Cleveland, 1932. Preface This is a textbook. This book is a systems-centric view of radio frequency identification (RFID). This book is for students of supply chain management, logistics, business management, and project management, and for corporate and military decision makers. It is intended to be used as a textbook in a class on supply chain measurements, with specific focus on the implemen- tation of RFID. This book focuses on how technology has changed the way decision makers use operations management tools since the computer age and RFID began in the 1940s. Readers do not have to be in a formal academic program of study. However, if you are studying business systems, project manage- ment, logistics, supply chain management systems, and globalization of markets, then this book will be very useful. This is not a technical book on the inner workings of RFID. For that, there are several very good selections available for you to purchase. This book describes how to measure RFID’s business use and not make a serious mistake doing so. It is about metrics, metrical units, technological measures and how to use them when making decisions as a decision maker, or how to think about the alternative choices. It is about metrics for RFID. This book is based on 4 years of testing an RFID war game that seems to indicate how decision makers can avoid the pitfalls of the wrong choice. This book will help you build a metrics frame of reference, help you construct an ongoing metrics laboratory for continuous improvement of your business case, and show you how to run an RFID war game. This book is for the small business company that has been in business for 1 to 5 years; the medium-sized company that is mature and has a healthy cash flow; the mega-sized company that reaches across the world in flow of goods and services; and the leaders of a state or government investing in RFID technology. About the Author Oliver Hedgepeth, associate professor of logistics, is chair of the logistics department, College of Business and Public Policy, University of Alaska Anchorage. His research field spans computer technology, neural networks, RFID, airship technology, and measurement tools. He pioneered artificial intelligence (AI) expert systems for military logistics needs and was the first director of the AI Center for Army Logistics. He began developing computer technology systems in 1967 as a mathematician for the U.S. government, with his first retirement after 30 years as an operations research analyst for the U.S. Army. He holds a Ph.D. and M.E.M. in engineering management from Old Dominion University and a B.S. in chemistry and mathematics from Atlantic Christian College, with graduate research in nuclear engineer- ing from Catholic University of America. Features and Content This is not your typical book on RFID. This is a textbook; it is based on what I teach as “dirty logistics.” That is, I like to take students and practitioners into the warehouse and show them what a warehouse is actually like, and to try to define a real-world problem for the owner or manager. This book is, then, for those of you who want to know something about RFID, but desire more to make sure you are solving the right problem with RFID. Solving the right problem is more important than implementing RFID the wrong way, or implementing RFID when you really do not need it. More than that, identifying the right problem is the crux of this book. Chapter 1 is an RFID primer for those who need a refresher on RFID and bar codes. Chapter 2 is where systems thinking is presented. This is not a definitive course of systems concepts, but it is essential that you understand the basics if you are to try to solve the correct problem with RFID. Chapter3 is where we see some of the many applications of RFID around the world. Some of the unique applications in certain countries are surprising. China and the Russian Far East are showcased, because I teach and lecture in both countries and have for the last 5 years. There are a few surprises in there. Chapter 4 is where I start describing some of the key metrics that will influence your decision to implement RFID. Chapter 5 is where I explore a few new metrics for RFID. There will be more; we all will find them, some more slowly than others. Chapter 6 is where I introduce the RFID war game. This is the heart of the book. The war game has been played for nearly 5years in Russia, Hawaii, and Alaska. Each time, it has been fine-tuned. It really works to focus your problem if you follow the steps; it is not easy to accomplish. Chapter 7 is a statistical analysis or setup of how to go about analyzing the data that comes from your data requisi- tions and tracking thousands of records that use RFID tags, compared to non-RFID tracking systems. Finally, there is an Epilogue, where I lay out a fewkey points from more than 500 articles I have read on RFID over the last 5 years. Additional material is available from the CRC Web site: www.crcpress.com. A complete set of PowerPoint presentations is available for each chapter. The focus points from each chapter are presented in these 200 slides as a basis of course materials in RFID or as an additional course blending foreachinstructor’s unqiue teaching style. These slides can be downloaded from CRC Press at http://www.crcpress.com/e_products/down- loads/download.asp?cat_no=7979. Feedback You can reach the author at [email protected] or at [email protected] or through the publisher’s web site. Acknowledgments There are many who helped provide information for this book. I would be remiss if I did not let the readers know that many forward-thinking students at the University of Alaska Anchorage, in both the graduate and undergraduate programs, contributed with research in key areas. Kyle Stevens helped with research into how RFID is being used around the world, and Wei Wei Tesch provided valuable insight into China by researching and reading more than 100 Chinese-language web sites on RFID. Don Harman, who opened his air cargo igloo-repair business to the class on RFID. Joe VanTreeck, president and CEO of Matanuska Maid Dairy, who opened his doors and loading docks to our students to experiment with cool chain and packaging options with RFID tags. Bill Tuttle, General William G.T. Tuttle, Jr. (Ret.), who gave me the oppor- tunity to think about this book back in the 1980s and 1990s. Tom Edwards, who has always encouraged me to reach a little further. Gene Woolsey, who does not remember me, but I remember him and his brilliant approach to measuring everything. Robie Strickland, who continues to hound me to com- plete any writing project. Carol Strickland, who is like a sister, giving me support to continue. Neffie Bennett, whom I call my big sister, and reminds me of family ties, long memories ago. Hallie Bissett, who helps me still try to find new ways of thinking about business success factors. Bear Baker, who prodded me to complete this task. Ted Eschenbach, who actually opened the doors to be in Alaska to conduct this research. Janet Burton, who polished the photos and was always there. Walt Hollis and Wilbur Payne, my two mentors from way back in time. Walt, for always giving me a chance to try something new. Wilbur, for encouraging me to stick my neck out to say something new. Morgan Henrie, who keeps pushing me to write the next article. Many students in my RFID classes. Cameron Perry, who found the hidden treasure of writing; and Candice McDonald, who kept a wary eye and voiced concerns about RFID and Big Brother. Derya Jacobs, who taught me to craft the word. For Sara, who taught me what it means to be a father; for Will, who showed me how. For Elizabeth, who demonstrated how to write, daily, with fiery editorials when needed. For Ashley, Matthew, Taylor and Olivia, who were always there with encouragement. Contents Chapter 1 RFID primer for logistics and supply chains............................1 Introduction....................................................................................................1 History of RFID..............................................................................................3 RFID compared to bar codes.......................................................................4 No line of sight......................................................................................5 Longer read range.................................................................................6 Static data entry.....................................................................................7 Data volume...........................................................................................7 Identify more items..............................................................................8 Simultaneous data capture..................................................................9 Rapid read rate......................................................................................9 Durable for harsh environments........................................................9 How does an RFID system work?............................................................10 Active versus passive tags.........................................................................13 Why the interest in RFID?..........................................................................15 Current applications for RFID...................................................................18 RFID is but one auto-ID system................................................................19 RFID is not new...........................................................................................20 Chapter 2 Systems concepts of using RFID................................................21 Systems..........................................................................................................22 Open systems, closed systems...................................................................24 Decision making...........................................................................................27 The complexity of a system’s variety.......................................................28 Emerging complexity..................................................................................31 Decision making and industrial dynamics..............................................33 Identifying the problem..............................................................................34 Listen to the customer.................................................................................34 Define the problem......................................................................................35 Assemble the data........................................................................................37 Formulate a view.........................................................................................38 Develop a model..........................................................................................38 xv
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