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RFID has been in the press for several years now.  There are so many theories out there about what RFID can do.  Many are accurate, but an alarming number of them are myths.  Used properly, the technology can streamline your operation, prevent loss, facilitate better just in time delivery, provide trending models, and keep your onsite inventory remarkably accurate.  Unfortunately, most of the RFID news today focuses on fears that, in most cases, have no validity.

We’ve all seen them, people making money selling tools that destroy RFID chips.  They’re shameless in their fear mongering.  They have taken a few worst case scenarios and blown them out of proportion to sell overpriced gimmicks.  On one web site I saw a “tool” priced at $30.00 that removes the chips from the center of tags.  It was a hole punch that sells for $2.43 at the office supply store.  Other people are making money selling sleeves and wallets for your credit cards that block cyber criminals from covertly reading your cards when you can accomplish the same thing with aluminum foil.  I’m not saying that you shouldn’t protect yourself and be aware of potential threats, but you also shouldn’t spend good money on gimmicks that feed on the flames fanned by profiteers.  So, should you be concerned?  Let’s take a look at some common fears and the steps that providers are taking to protect you.

My favorite ridiculous fear…  “Someone with a portable reader can scan the product tags in my shopping bag on the street and find out what I buy.  They can use that information to build a marketing profile about me.”  Guess what, if you used a credit or debit card, someone already knows what you bought and is using that information to build a marketing profile on you.  Their way is better.  Using your credit card purchase information, they also know who you are.  The guy that scanned your shopping bag doesn’t.  In fact, the information from your bag is so useless that I wonder why he would bother.  I think I could go my whole life without knowing that random lady number 327 bought light bulbs, tooth paste, 6 apples, and a ham.  There is no useful information there unless I’m trying to figure out how fast my local stores might run out of specific products.  Of course I would have to sample thousands of people’s bags to get an accurate trend.  That might get me enough information to buy what I need before all the stores run out.  Then again, since the stores are using RFID supply chain management, they probably already have the same information that I do and will order new stock in time to avoid running out.  What a colossal waste of time.

RFID tags really are everywhere.  They’re in your credit cards, your passport, and some driver’s licenses just to name a few.  The fear mongers are afraid of being tracked everywhere they go.  This one really could be done, for a price.  Portal readers have a range of 10 to 30 feet in most cases.  Some are better, some are worse.  To track you around your travels, Big Brother would have to install RFID portals literally everywhere.  The price would be comparable to the defense budget of some countries.  Although this could be done in theory, why would anyone want to?  The government really does want to track some people.  Those people are also smart enough to fool the system.  We are currently facing a huge economic crisis as well as funding a constant state of war that may never completely end.  It seems like a lot of money to spend on a surveillance system that can be fooled with kitchen foil.

Many schools are using RFID in School ID cards.  The schools are getting a lot of resistance here.  The goal is rapid accurate attendance as well as keeping kids where they belong.  They can also be used to check kids on and off of buses for field trips and sporting events.  Some parents are afraid that it will help people stalk their children.  We already stressed the difficulty of hiding portals everywhere.  If the US government isn’t going to go to the expense, we can be fairly certain your child’s stalker can’t afford it either.  That leaves a mobile reader that has a read range under 15 feet.  If the stalker can get close enough to read the tag, he doesn’t need it.  He can see his target.  The tag doesn’t bring any advantage.  Unless the integrator that installed the system is incompetent, that tag doesn’t even have any useful information on it.  It has a number that only means something to the school’s database.  Just like our shopping bag scenario, there is no advantage to reading the tag.

One fear that has been in the press often lately is covert scanning of credit cards.  This one is possible.  If someone links a high frequency reader to a net book or tablet PC and carries it around, they can read cards through most wallets and purses.  There is one thing to remember though.  These tags are high frequency and therefore different than the tags that go on the products you purchase or on school tracking systems.  They require a very close (almost contact) read.  Think of how you use them.  You have to touch them to the reader pad at the register.  Although a criminal can read them through your pocket, he has to get pretty friendly (especially if your wallet is in your pocket).  I never let anyone get that close to my wallet with anything.  If the bad guy does get the number, it usually doesn’t help.  There are other things required to make a credit card purchase (PIN, picture ID verification, zip codes at gas pumps, etc).  At the end of the day the credit card companies protect you against unauthorized purchases.  They are also the people sending out the RFID enabled cards.  Since they are on the hook for the unauthorized purchases, they wouldn’t enable the cards if it was a real concern.

Bottom line…  The benefits far outweigh the mostly fictitious risks.  Any time a new way of doing things comes about; there is someone ready to find all the conspiracies behind it.  Although the conspiracy theories and high tech heist scenarios make great stories, they are better suited to Hollywood than anything real.  The reality is less sensational, but still exciting.   Several innovative companies are moving a very old technology in new creative directions in an effort to improve our lives.  Just take a little time to learn what the technology can and can’t do.  Don’t be afraid.  RFID isn’t going to get you.

by Craig Sadler, CTO

“A verbal contract is not worth the paper it’s written on.“

- Samuel Goldwyn

Everybody in business understands the need for contracts.  Sure, there are still plenty of handshake deals and verbal agreements, but most business deals are based on formal, signed contracts.  “Putting it in writing” is simply a way to increase agreement and to reduce friction by specifying what is or is not part of the contract.  God bless ol’ Sam.

The problem is that sales guys are just that – sales guys.  No disrespect to the sales teams because they keep the work pipeline and revenues flowing.  But sales people are not delivery people.  That is, sales teams usually do not know all the technical, logistical, and operational specifics required by delivery teams to satisfy the project’s objectives.  A Project Definition Document fills this void nicely.

A Project Definition Document (or “PDD”) is a companion document to provide details for a given contract.  This document can certainly be started before the contract is finalized, but the PDD cannot be completed until delivery team members have reviewed all contracts.  Team members and other subject matter experts provide the technical expertise that makes it possible to fulfill the contract.

Think of it this way: A contract is a CliffsNotes version of the future project, providing enough details in a summary format to pass your regular English Lit class.  But if you want to pass AP English Lit and the AP test, then you have to read the full book, er, I mean PDD.  Now for some Q&A…

Q: Why should senior management execute a second document?

A: They shouldn’t.  The contract signing gets all the publicity and champagne toasts, but the PDD operates at a lower level – between the provider’s project manager and sponsor and their client counterparts.

Q: Is a PDD legally binding?

A: I am not a lawyer and do not play one on TV, but I believe it is.  The PDD defines the specific things a provider will do to satisfy its contractual requirements and is signed by the client.  The doc can be modified with approved change requests, but it is hard to imagine a PDD not being enforceable.  Of course, if you wind up in court with your client, you have bigger problems.

Q: A PDD is redundant to a contract.

A: I’m sorry, but you must submit your comments in the form of a question.

Q: OK, smart aleck.  Isn’t a PDD redundant to a contract?

A: That’s better.  And no.  The documents overlap but are not identical.  A contract will, for example, require a provider to replace all existing PCs in Buildings 1, 2, and 3 by March 31 with high-end Acme Brand PCs.  The corresponding PDD would define the exact PC specs, number of phases for the rollout, which move groups are in which phase, testing/validation metrics, escalation paths, and so on.

Q: Doesn’t a PDD protect the provider from doing extra work?

A: Well, duh.  Every client tries to get stuff for free.  A properly defined PDD gives the provider leverage to do what is required to satisfy the contract without having to throw in freebies.  On the other hand….

Q: I have another question.

A: Stop interrupting.  On the other hand, a PDD also gives the client protection against a poorly executed project.  A client can stop a provider from walking away by highlighting unfulfilled PDD areas and insisting on completion before signing the project completion documents and, more importantly, making the final contract payments.

Q: Last question: What if a client will not sign a PDD?

A: I’m glad this is the last question because I am tired of talking to myself.  The answer to your question is to find better clients because yours is insane.  Every normal client wants to know what they will get for their money.  If your client does not want to agree to specifics, then you should run away as fast as possible because you are being set up to fail.

Q: I thought of one more question: Where can I get a PDD template?

A: Put in writing that this is your last question.

Q: Um, I just did.

A: Oh, right.  Just enter “Project Definition Document Template” into your favorite search engine.

We at IPM & IPM Asset Solutions always create PDDs with our clients.  Our philosophy is to define the project as clearly as possible so all stakeholders know exactly what to expect.  Please contact me at craig.sadler@ipmasset.com or (817) 807-2988 to discuss how we can help add value to your company.

By Craig Sadler, Chief Technology Officer

This is one of the first questions that comes up when a company decides to move into RFID.   Of course, IPMAS can make suggestions because we know the industry.

However, we always advise that you do your research and take your time. When you implement your RFID solution, the tag vendor that you partner with is one of the most important decisions you will make, and it will likely mean the difference between success and failure. You may end up with multiple vendors, but chances are, you will have a primary.

What are some things you should look for before making a decision?

• The way that company does business is important.  Look into their production standards, their quality control, and the options for packaging the inlays.
• You need a company with years of experience creating tags.  Not just RFID tags, but bar code and “human-readable” as well.  They need to know the performance characteristics of their product line and what works in different environments.

More than the Sum of Its Parts

Your tag has two major components: The first is the inlay, which is composed of a chip and an antenna array.  The second is the packaging, or the “clothes” the inlay must wear to protect it from the elements.

In analyzing the industry, IPMAS found that some inlay companies do produce packaged tags, but there isn’t that much variety off-the-shelf. There are other vendors that purchase the inlays in bulk and package them many different ways.

We looked long and hard for a tag vendor that could deliver the biggest variety of inlay packaging at a fair price.  They needed to deliver tags with a low percentage of failure, and be able to package them in ways that hadn’t been done before.  For us, in the end, that vendor was MetalCraft, Inc.

Meeting Constant Challenges

We have gone to MetalCraft several times and started with the phrase “Bet you can’t solve this one!” So far, we have always been wrong.  If they didn’t have what we needed, they figured it out in a reasonable amount of time. They actually like the challenges!

So, because we are working in an innovative field, one other factor that must be considered in your decision on a tag vendor: Partner with someone that likes to innovate along with you.  You have enough to worry about without failing tags.

We also have clients that expose their tags to extremely harsh conditions.  The tags we provide have to survive deployment environments from harsh deserts to the arctic tundra.  They are frequently submerged in liquids and some even endure acid baths.  They are stomped on by field workers and carelessly whacked against walls, truck beds, and each other.

Not all of our tags go into extreme parts of the world, but even the nice air conditioned offices have workers that fidget with the tags attached to their laptops.  If your tags don’t survive, your RFID system is useless.

A Wise Place to Invest

Fortunately, if you use a high quality vendor, not all of the tags are expensive.  We stuck with our vendor because even their inexpensive tags are tough.  We manage to use something in their range of standard varieties most of the time, and we have never been disappointed.

Finally, when it comes to purchasing tags for your new, critical RFID system, our best advice is always the same: Don’t go for the cheapest solution.  You get what you pay for and this isn’t the place to cut corners.

By Craig Sadler, Chief Technology Officer

Is RFID going to solve your problems? Even those who realize they must do something to gain control over assets – and who have seen the benefits of this technology — have initial doubts. Why? Because a few notable large companies have tried RFID implementations without improving ROI – and become cautionary tales in the process.

However, many companies too small to be in the public eye have used RFID to make a difference in profitability. The difference comes down to the approach you take and which partner you choose – but the process begins before you settle on RFID as a solution.

Every selection process involves taking stock and setting goals. You’ll need experts to help you come up with solutions. Here are some ways to improve your chances for success while searching for an RFID partner:

The company you choose should be ethical enough to do an initial consultation at no charge. Choosing how to spend your money in the tech arena is like choosing the right doctor for laser vision correction. You don’t want the cheap clinic that runs two-eyes-for-the-price-of-one specials. You also don’t have to find the most expensive doc in town. You want the expert with a healthy practice that will take the time to learn your history and help to find the right treatment for you. Your provider should have the integrity to tell you that RFID may not, in fact, be the optimum solution.

The company you choose should understand business processes. The most common mistake made by RFID clients and providers alike is a lack of vision where business processes are concerned. You can’t take the same old process you’ve been following and “duct tape” a technology on to it and expect anything faintly resembling success. You will get the same results you’ve always had. Plus some expensive duct tape. Top caliber RFID providers understand should business as well as technology.

The company you choose needs cross-industry experience. Many businesses run a certain way just because that’s the way it has always been done. There are many best practices using RFID that can be applied from other industries. Without careful thought and planning, you will have an expensive toy that doesn’t make you more efficient or give you the data you need. Done correctly, the savings in time, labor and accuracy will quickly outweigh the cost, and you will soon wonder how you ever made it before.

The company you choose should have an RFID integrated system. If you’ve started your research, you know that many companies can provide tags and/or readers. Some even provide off-the-shelf software to help you make them work together, but there is no real process help available. Very few will truly integrate your components – which will leave you without direction or support in the development stages or if your system needs tweaking later on.

The company you choose should understand how and where you are unique. Even though your business has a unique set of needs, you probably don’t need a fully custom solution. But you shouldn’t settle for a generic solution off the shelf, either.

The most successful solution is a scalable, adaptable system that can be adapted for your specific needs cost effectively. IPMAS believes that most people need the pricing benefits of an off-the-rack solution with final fitting done by a truly exceptional tailor. That’s our model.

Bottom line: IPM Asset Solutions knows what you are looking for. You want to fix your problems and save enough money to pay for the fix. That is our goal, too.

Okay, we go the extra mile. We are obsessive about wringing every bit of efficiency we can out of your process flow. We specialize in finding ways to save capital in areas that aren’t initially obvious. We carefully look at other areas of your business that can be enhanced if we leverage your implementation. Our questions include:

· Can we eliminate redundant areas of your process flow?

· Are your clients interested in leveraging the tags that you’re putting on your consumable inventory?

· What is their opinion of perceived value when your efficiency goes through the roof?

· Can we give them a client portal into the tool that allows them to see certain areas of the flow to increase their confidence?

· Will they be willing to pay you more money for that privilege?

Of course, we think that all RFID solution providers should ask these questions – but they don’t.

ROI = Happy Ending

IPMAS’ commitment to our client base is an honest evaluation of business processes and a recommendation that best fits the needs of your company –- followed by expert professional skill in developing, implementing and monitoring your RFID investment. If you don’t have an acceptable ROI, then we haven’t done our job.

In other words, for us ROI is the definition of success.

By Craig Sadler, Chief Technology Officer

What is RFID?

Radio Frequency Identification is a very old technology that is just now coming into maturity.  The system is used to track and manage assets.  It is composed of:
• Tags embedded with identification associated with a tracked item
• A reader that can detect the tags, and
• Software to make sense of the information

The tags are attached to an asset, and can either be:
• Active (constantly broadcasting their location),
• Passive (dormant until a reader detects them), or
• Semi-passive (dormant until queried like a passive tag, but hosting a battery to boost their signal) 

Unlike barcodes, you don’t have to see the RFID tag to detect it and RFID can identify large volumes of tracked assets simultaneously.  In simplest terms, RFID is a standoff barcode that doesn’t require line of sight and can be read through most material like boxes or cabinet doors. It offers a huge improvement over manual counting or reading bar codes individually.

What’s an asset?

Most people think only of their products as an asset.  However, there is much more to asset management than tracking what you sell. An asset is anything that you own, or items in your care that other people own.  In other words, when you open your eyes in your facility, everything you see is an asset.

For example, it’s obvious in a bicycle shop that the bikes are an asset, because they’re inventory.  It’s clear that the parts are inventory too, but so are the tools, the customers’ bikes being repaired, the work benches, the sales counter, the cash register and any other fixed items. 

Don’t forget the office side of things.  There are computer assets, customer files, employee records, and expensive security surveillance equipment — all assets.  There are other items that need to be tracked and thus fall into the asset category. For instance, any material affected by privacy protection should be tracked so that you could notify the people affected if there were a compromise. RFID can be used on virtually every type of asset.

How does RFID improve profitability?

Everyday activities such as tracking parts and inventory are labor-intensive manual processes that definitely impact the bottom line.  Under the right circumstances, RFID will dramatically increase the speed and accuracy of managing your assets, and help you realize greater profits by avoiding expenses commonly accepted as a cost of doing business.

What is the key advantage of RFID?

In a word, control. Knowing which assets are on hand, where they are, and how they sync with orders in the queue is critical. Not having this information leads to enormous waste.  Think of the cost of storing too much inventory just to be safe, or purchasing outside of the procurement process because there is no time to validate if supplies are already in house! 

Many businesses try to audit asset inventory regularly to prevent unnecessary expense.  Those that try, quickly find that they spend more in labor than they save with accuracy.  It takes time to write things down, enter information into a system, and validate a database.  The hours stack up fast. 

With a system built around RFID, the data can be collected very quickly.  Inventory validation can be conducted at greater speed because you can read the contents of a container without opening it.  No manual data entry is required, and, since no one is performing free text, no entry validation is required.  Many hours of inventory work can be literally reduced to minutes. 

Why would RFID make sense now?

In uncertain economic times, it’s important to find creative ways to avoid expenses.  Whether a business is a small retailer or a large manufacturing business, profitability depends on being able to plan future business activities. 

The advantage of knowing what you have and where you have it is obvious, but the ability to pull it off with minimum effort will drive efficiencies that quickly overtake any investment in the technology. 

Will RFID be difficult to implement?

With proper planning, an electronic data collection implementation will be successful, and one of the best things that ever happened to your company.  Don’t simply dismiss it because it sounds difficult or because others have failed.  Seek help and do it right with a full service RFID system provider.