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M S RAMAIAH INSTITUTE OF MANAGEMENT
PGDM(Autonomous) BATCH 2010-2012
PROJECT REPORT SYNOPSIS
GROUP MEMBERS NAME & REGISTER NUMBER
SLNO REG.NO NAME AREA OF
SPECIALISATION
AREA OF
EMPIRICAL
STUDY
SIGN
1 111218 JunoDavies
Operations
2 111222 Manish
Deo
Operations
3 111222 Navneeth Operations
4 111234 Raj
Gaurav
Upadhyay
Operations
5 1112 Shailendra Operations
NAME OF THE GUIDE: .
DESIGNATION & QUALIFICATION: .
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Title:-A studyon impact of Radio Frequency Identification (RFID) on
supply chain in Retail stores in Bangalore.
Aim:-This study facilitates to understand the impact of Radio Frequency
Identification (RFID) on supply chain management of retail stores
(Shoppers stop), in Bangalore and it also provides the data to check the
usefulness of Radio Frequency Identification (RFID) in Shoppers stop.
Statement of Problem:-Radio frequency identification (RFID) is a newrising technology that poses the capability to revolutionize the way
retailers do business. This study will help the Retailers to improve their
supply chain management and enhance their ability by lowering their
error rates and this will help them to reduce the overall cost. We
conduct this study by means of store manager (Primary Data) in retail
stores. To conduct this study we require human resource & technical
support.
Objective:-
1-To analyse the difference between the implementation of RFID
and Barcode.
2-To measure the extent of necessity of RFID in retail stores.
3-To know the RFID usage among retail stores.
4-To know the response of retailers towards RFID.
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HYPOTHESIS:-
NULL Hypothesis:-
RADIO FREQUENCY IDENTITY will positively influence faster inventory
tracking, increase transparency & security in retail stores in Bangalore.
Alternative Hypothesis:-
The influence is due to other factors.
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LITERATURE REVIEW
1. Introduction
The use of Radio Frequency Identification (RFID) technology extends
historically to the 1970s, when the first commercial products emerged.
The introduction of this technology motivated future research that
sought to integrate RFID into various applications ranging from
inventory control to human tracking. However, the practical
significance of this technology was not been fully appreciated until
mass manufacturing of RFID tags and readers, at different scales and
for different ranges, were made possible. Currently, RFID-based
systems are being proposed as alternatives to previously established
technologies
and as extensions to others. A basic RFID system is comprised of three
main elements: RFID tag, RFID reader, and a processing unit.
RFID tags are simple communication devices that are activated by
incoming registration from the RFID reader, when it is in its operating
range, which is between three and ten meters. They usually contain a
small amount of readable/writable memory, which is used to saveimportant information. A RFID reader communicates with and accesses
the RFID tags through an antenna, whose size is influenced by the
preferred range of the reader and its power constraint. On the other
end, it connects to a processing unit, which initiates read/write
operations and is responsible for post processing of the data received.
The processing unit can be either a stationary or a mobile platform. It
integrates the reader-tag subsystem into a higher level application. This
paper will talk about different aspects of RFID technology in thefollowing sections. In section 2, uses of RFIDs will be talked about. In
sections 3 and 4, pros and cons of RFID technology will be discussed.
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2. RFID usage
RFIDs can be used for many different things. Most uses today consist of
tracking material goods, manufacturing, and supply chain management.
Asset tracking is one of the most common uses of RFID. Tags are put on
a companys property that may be lost or stolen often, that are not
used as often or just hard to locate at the time they are requested.
RFIDs used in manufacturing plants are used to track parts and work in
process. They are also used to reduce defects and manage production
of different types of the merchandise. RFID technology has been used
to automate parts of the supply chain within a company's control. Since
standards of RFIDs are emerging, tracking shipments among companies
and its affiliates are beginning to increase. RFIDs are further being used
to implement different applications such as payment systems, security
control, and also utilized in the retail industry. One of the rising uses of
RFID technology is using it as a payment system. The active system can
be used as a quick service at restaurants with using the same active
RFID tags to pay for meals at drive through windows. RFIDs have long
been used as an electronic key to control who has access to office
buildings or areas within office buildings. The first access control
systems used low-frequency RFID tags. The RFID is more convenient, towhere an employee can hold up a badge to unlock a door, rather than
looking for a key or swiping a magnetic stripe card. Since there is no
contact between the card and the reader, there is less wear and tear,
and therefore less maintenance. Retailers are currently focused on
improving supply chain efficiency and making sure products are on the
shelf when customers want to take a product.
3. Advantages of RFIDsThe RFID technology has many advantages. Line of sight is not an issue
with the RFID tags because it just has to be in close proximity of the
reader. Replicating an RFID tag is also very complicated to do rather
than with a bar code, thus making security a key advantage. It can be
used as a tracking device on certain manufactured goods to ensure that
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products are not lost or stolen. If products that are tagged with RFID
tags are moved out of their remote location, it can also trigger a
security system so that it knows it is being transported to a site where it
should not be
4. Disadvantages of RFIDs
While having advantages to RFID technology, it also has its
disadvantages. Installation of RFIDs is more expensive than that of a
barcode. Companies find it costly to use in their businesses.
Interference also plays a key role in RFIDs as its waves are sensitive and
easily interrupted by other waves such as from cell phone towers and
walkie-talkies. Different frequencies are being used around the world
by different countries for RFID usage. This makes it mandatory for
international shipping companies and other organizations to be aware
of the working pattern of other nations also, which can be very time-
consuming. RFID technology has also been referred to as an invasive
technology. Consumers are worried about their privacy when they
purchase products with RFID tags. They can be tracked and personal
information can be collected by the RFID reader.
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History
Economics aside, how does a mature technology like bar codingremained viable player in a world increasingly enamored with newer
options, such as chips, tags and sensors, to track and trace equipment,
people and products? Certainly, the higher upfront investment for
radiofrequency identification (RFID) and real-time location systems
(RTLS) may make bar coding more fiscally attractive in the short-term
but whether it can weather falling prices long-term for RFID and RTLS
components represents another debate. In a chip- aid sensor-driven
world, bar coding's sustainability remains in question even as interestsimmers for bedside point-of-care bar coding applications. As a result
Healthcare Purchasing News Senior Editor Rick Dana Barlow reached
out to three key executives immersed in the bar-coding world to briefly
share their insights on the distinguishing characteristics, applications
and endurance of their products as options for healthcare supply chain
management.
Reliability is also a significant consideration, particularly when bar
coding is employed in a medication safety program.For example, B. Braun's Outlook Safety Infusion System's bar coding
capabilities are designed to ensure the right patient is receiving the
right drug and the right dose by an authorized clinician. A torn, wrinkled
or smudged bar-code label can be observed visually and identified as
the
potential cause for a reading error. On the other hand, RFID reading
errors can be associated with several causes not readily observable,
sucb as interference, proximity
or circuit failure. Focus first on the standardization and improvement of
the medication administration work-flow. As bar-code labels are
virtually ubiquitous in a healthcare setting and readers are available
with most bedside IT solutions, choosing a bar-code data entry protocol
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allows the institution to remain focused on the clinical workflows rather
than the implementation of new technology Another important
consideration for medication safety systems is that bar-coding, RFID
and RTLS systems are merely tools utilized to perform data entry}'functions. Effective medication safety programs.
Meaning:- Radio-frequency identification (RFID) is the use of a wireless
non-contact system that uses radio-frequency electromagnetic fields to
transfer data from a tag attached to an object, for the purposes of
automatic identification and tracking. Some tags require no battery and
are powered by the electromagnetic fields used to read them. Others
use a local power source and emit radio waves (electromagneticradiation at radio frequencies). The tag contains electronically stored
information which can be read from up to several metres (yards) away.
Unlike a bar code, the tag does not need to be within line of sight of the
reader and may be embedded in the tracked object.
RFID tags are used in many industries. An RFID attached to an
automobile during production can be used to track its progress through
the assembly line. Pharmaceuticals can be tracked throughwarehouses. Livestock and pets may have tags injected, allowing
positive identification of the animal. RFID identity cards can give
employees access to locked areas of a building, and RF transponders
mounted in automobiles can be used to bill motorists for access to toll
roads or parking.
http://en.wikipedia.org/wiki/Electromagnetic_fieldhttp://en.wikipedia.org/wiki/Radiohttp://en.wikipedia.org/wiki/Electromagnetic_radiationhttp://en.wikipedia.org/wiki/Electromagnetic_radiationhttp://en.wikipedia.org/wiki/Bar_codehttp://en.wikipedia.org/wiki/Bar_codehttp://en.wikipedia.org/wiki/Electromagnetic_radiationhttp://en.wikipedia.org/wiki/Electromagnetic_radiationhttp://en.wikipedia.org/wiki/Radiohttp://en.wikipedia.org/wiki/Electromagnetic_field8/2/2019 Rfid Operations Group Sec B-1
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RFID Adoption by Retailers
Retail Store Year of Adoption Country of OriginWAL-MART 2003 USA
Wal-Mart 2003 US
Sainsburys 2000 UK
Tesco 2007 UK
Carrefour 2004 UK
Metro AG 2004 Germany
Home Depot 2005 USA
Mitsukoshi 2007 Japan
Marks & Spencer 2003 UK
Albertsons 2004 US
McDonalds 2000 US
ASDA 2005 UK
Best Buy 2006 US
Sears 2005 US
Target 2006 US
RFID Adoption by Indian RetailerRetail Store Year of AdoptionPantaloons 2005Big Bazaar 2007ITC Wills Lifestyle 2007Reliance 2008Madura Garments 2007Tata 2007
Shoppers Stop 2006
Arvind Mills 2006
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Importance of RFID
During the last decade, most organizations have implemented
enterprise-wide applications and integration platforms. These
implementations have delivered benefits in terms of data
synchronization and information flows within the organization and with
trading partners providing valuable inputs for planning and
optimization of schedules and reporting. However,
automated data capture and tracking in real-time has been a major
bottleneck, affecting the ability of organizations to optimize theirinvestments in supply chain solutions.
Radio Frequency identification (RFID) Technology is emerging as a
technology that could provide the answer lo these problems. Using
tags, readers and radio waves to communicate between the two, RFID
combined with the EPC (Electronic Product Code) would be able to
address these pain points and deliver a whole range of benefits across
various verticals like manufacturing, distribution, retail, logistics and
security. The potential benefits arise from increase in supply chainvisibility, increase in efficiencies and decrease in costs due to better
data
synchronization, increase in responsiveness to changes due to real time
information visibility and a number of additional industry / vertical
specific benefits. RFID promises to have a major impact on supply
chains allowing trading partners to collaborate more effectively and
achieve new levels of efficiency and responsiveness.
RFID is the latest magic bulletin in the technological scope that has the
potential to make a sweeping shift in the way any organizations
approach their supply chain. Leading the way in embracing this
technology are retailers, particularly Wal-Mart and their suppliers. RFID
is enabling companies to see further into the supply chain providing
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more accurate real-time information and improvements in process
efficiency. The increased visibility can result in faster inventory turns,
less shrinkage, reduced labor and higher material flow through
warehouse or distribution center. Greater efficiency means RFID-
enabled processes take less time and effort; entire pallets of product
can be recognized in seconds without the need to break them down
and cycle counting inventory can be accomplished in hours or even
minutes instead of days.
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RFID: Frequency, standards, adoption and innovationMatt Ward
Department of Design
Goldsmiths College, University of London
Types of RFID
RFID products fall into two basic categories: Passive and Active. Passive
tags do not have batteries and have indefinite life expectancies. Active
Tags are powered by batteries and either have to be recharged, have
their batteries replaced or be disposed of when the batteries fail.
Various Types of Antennas (above)
RFID products are then broken up into different frequencies. Tagsand Antennas are tuned or matched much the same way as aradio is tuned to a frequency to receive different channels. These
frequencies are grouped into Four basic ranges: Low Frequency,High Frequency, Very High Frequency and Ultra-HighFrequencies.
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Each frequency range has its advantages and disadvantages. Europe use
868 MHz. for its UHF applications while the US uses 915 MHz. for its
UHF applications. Japan does not allow the use of the UHF frequency
for RFID applications. Low Frequency tags (LF) are less costly to
manufacturer than Ultra High Frequency (UHF) tags. UHF tags offerbetter read/write range and can transfer data faster then other tags. HF
tags work best at close range but are more effective at penetrating
non-metal objects especially objects with high water content.
Various Types of Tags (above)
Once a frequency range is determined, then it is time to choose an
antenna that best fits the application. Antennas come in all sorts of
sizes and shapes. The size of the antenna determines the range of the
application. Large antennas used with Active Tags can have a range of
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100 feet or more. Large antennas used with Passive Tags generally have
a range of 10 feet of less. There are dock door antennas (sometimes
called Portals) that allow a forklift driver to drive between two
antennas. Information can be collected from the tags without the
forklift driver having to stop. There are antennas that mount between
rollers on conveyors for reading/writing from below. While other
antennas are available that mount to the side of or above the
conveyors. Handheld Reader/Writers are available as well.
Controllers are available to communicate with most Networks
(Ethernet, DeviceNet, ProFibus, etc). They typically have serial ports for
programming and data transfer. Controllers are usually shipped with
programming software to set-up and customize the application.Controllers typically operate on 120VAC or 24VDC.
Competitors:
RFID is gaining a lot of momentum, but there are a number of other competing
technologies out there. Not all of them are considered to be true competitors
though. Essentially, any low power, localized wireless technology could
potentially be used for an RFID style application.
Firstly, we have the suite of wireless or "Wi-Fi" technologies. These technologies
could be employed for tracking and communicating with other fixed or moving
devices to determine locations and contents of a remote tag. Long ranges of 300-
900 feet that can be boosted even further using higher-gain antennas. High data
rates may make this option attractive if you want to place a large quantity of
detailed data on a target.
Bluetooth comprise a series of Personal Area Network technologies or PANs.
Bluetooth devices typically hold a range of 30-35 feet and are common in cellular
phones and some wireless keyboard/mouse solutions.
A new competitor to RFID is ZigBee, which is looking to utilize the Ultra Wide
Band (UWB) communications space for it's interactions. Key advantages to UWB
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include extremely low power consumption, routed meshing between all ZigBee
devices without the need for access points, and it's potential to be low cost at less
than 50 cents
Wi-Fi, Bluetooth and ZigBee certainly provide potential alternatives to Active RFIDtag technologies but in some cases at a much higher cost. ZigBee may be the only
competitor that will potentially challenge the passive RFID tag space. Passive
RFIDs require no power, cost less than 5-50 cents each, and hold no processing or
data storage capabilities. Passive RFID tags require that you have the proper
reader/interrogator in order to activate and read the tags and the reader needs to
be in fairly close proximity to the tag.
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System advantage, from Financial point of view
Most companies that sell RFID tags do not quote prices because
pricing is based on volume, the amount of memory on the tag and
the packaging of the tag (whether its encased in plastic or
embedded in a label, for instance), whether the tag is active or
passive and much more. Generally speaking, active tags are $25
and up. Active tags with special protective housing, extra-long
battery life or sensors can run $100 or more. A passive 96-bit EPC
inlay (chip and antenna mounted on a substrate) costs from 7 to
15 U.S. cents. If the tag is embedded in a thermal transfer label on
which companies can print a bar code, the price rises to 15 cents
and up. Low- and high-frequency tags tend to cost a little more.
How much do RFID readers cost today?
It depends on the type of reader. Active readers are typically
purchased as part of a complete system, with tags and mapping
software to determine the tags location. Most UHF readers cost
from $500 to $2,000, depending on the features in the device.
Companies may also have to buy each antenna separately, along
with cables. Antennae are about $200 and up. The price of UHF
readers has been falling as production ramps up with adoption.
Low- and high-frequency readers range in price, depending on
different factors. A low-frequency reader model (a circuit board
that can be put into another device) can be under $100, while a
fully functional standalone reader can be $750. High-frequency
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reader modules are typically $200 to $300. A standalone reader
can be about $500.
How much does a fully functional RFID system cost?
The cost depends on the application, the size of the installation,
the type of system and many other factors, so it is not possible to
give a ballpark figure. In addition to tag and reader costs,
companies might to purchase middleware to filter RFID data. They
will likely need to hire a systems integrator and upgrade
enterprise applications, such as warehouse management systems.
They might also need to upgrade networks within facilities. Andthey will need to pay for the installation of the readers. Not only
do the readers need to be mounted, they need electrical power
and to be connected to a corporate network. All of these factors
are different for each deployment, depending on the application,
the environment and so on.
R
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System advantage, from HR's point of view
The fundamental objective of RFID based production management
technology is to balance production lines and achieve smooth
production flow. Its essence is managing people, assigning the right
people to do the right tasks, and coming up with the right work steps
all to improve productivity.
This means being able to track where, why and who causes the
problem. For example, if in one of the work lines one of the workers
makes collars slowly, RFID can track the problem in every single station
and identify each of these three things: the where - which workstation
has the problem; who - which worker causes the problem; and why -which work step or style has the problem in a production line. By
knowing these, the Industrial Engineer can apply the necessary remedy
to smooth out the problem. This may include retraining the worker,
changing the sequence of the work step, or changing of worker
Advantages of using RFID
RFID can also track bottle necks. WIP tracking is only the means of the
task, as described earlier. The main objective, however, is to achieve asmooth flow. To illustrate an unsmooth line, assume that you have 20
workers in a line, and even if 19 of them are fast and just one is slow,
semi-finished goods will still pile up and slow down the entire line. To
keep a smooth line, the remedial action in this case is to put in people
who have the same productivity rating. The first step is to find the
worker in your entire factory who has the appropriate work rate in such
production step. The next step is to look into the HR system and find
the relevant data to arrange the workers work shift.Measurement and improvement are important because in the
traditional system, the factory manager does not care about the fine
details of the production such as the cost of each work minute in the
factory since the margin is high. But nowadays, the margin has
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dramatically gone down and the factory manager needs to use a more
scientific way to calculate the cost of every work minute and find ways
to reduce the cost.
Difficulties in tracking production status
Garment manufacturing is labor-intensive. It is the most human-
dependent of all the kinds of manufacturing because only a few
robotics can be applied. As a result, it also has to meet social
compliance requirements. One challenge in garment manufacturing is
the difficulty of doing mass data capture. Real time data capture is
difficult to achieve without a device link up with the human work.
Without mass data capture, productivity cannot be monitored.Improvement can only be achieved by visual monitoring in the factory
floor and, due to human nature, a lot of discrepancies can arise
HR and RFID tracking integration is necessary
Integrated HR and RFID has advantages on this area. You can have real
time information in a mass workstation format. Worker informationcan also be captured based on the productivity of their work skill rate,
thus, one can see the level of efficiency of each worker in a certain
work step. Lastly, work step information can be captured based on the
garment features.
Essential feature of HR feature
The HR system has a lot of features., including those of a basic HR
system: being able to keep the workers personal data, reward data,
employment history and interactive payroll. The most important
features are keeping skill data and work shift planning. RFID interactive
can be used to plan the work shift based on the garment work content,
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and to plan for a smooth production line even before the production
starts.
It is important to have the system integrated with the HR system. It is
useless just to track the WIP, as mentioned before, since the focus is tomeasure and improve everyones efficiency. The nuts and bo lts of the
integration are: to implement an effective reward system, it has to be
robust and it has to treat reward fairly in order to increase motivation.
To do this, each individual workers ability needs to be kept and scored,
therefore, the system has to be able to derive a skill matrix.
Skill Matrix
Skill matrix is a table that keeps record of the efficiency of all workers in
every major operation. IE department will then be able to categorize
different levels of workers to plan a smooth production line, know
which workers need to be trained and know what work step need to be
fine-tuned.
Records from the HR system can be used to do a lot of data analysis
such as training history of worker, age of worker, past employment
history, merit & demerit and reward history of worker.
In summary, RFID is a device to constantly measure the worker and beable to appraise each worker as part of your team to achieve your
companys goal.
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Global Scenario of RFID AdoptionIn 2003, global major retailer Wal-Mart requested and issued mandate
to top 100 suppliers to tag RFID pallets for goods supplied by them to
increase operational efficiency. Wal-Mart has introduced RFID attached
to each pallet and storage box that comes into/goes out of their stores
and distribution centers and has almost completely replaced bar codes.
In June 2003, Wal-Mart had communicated to its major suppliers that
in two years, all pallets and boxes should come tagged with RFID.
Information about the contents loaded onto a roller or box can be
tagged onto the tag and easily checked. This helps check if material has
gone "missing" during transport. Looking into the phenomenal success,
major retailers such as Target, Best Buy and others were compelled toissue guidelines to their suppliers to adhere to this system of tagging
RFID pallets, especially the big suppliers. Throughout the European
Union, RFID passes are used for the public transport systems. This
system has now been copied by Canada, Mexico, Israel, Dubai and
Columbia also. All the transport payments and toll charges are
monitored and done through RFID Compliant systems. This can reduce
a lot of time spent by logistics companies along the motorway and can
speed up the checking & inspection stages in the logistics. Thisautomatically brings down the cost of transportation. However, when
RFID was implemented, Metro registered an 11% reduction in out of
stock position at testing sites. Another major retailer of Japan,
Mitsukoshi, commented that adopting RFID and Intelligent telephones
in dressing rooms gave customers access to first hand product
information. This system helped retailers in bringing efficiency in their
overall operations. It also allowed customers to get immediateinformation about product stock position from sales staff.
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Indian Scenario
Retailers, textiles, aviation, energy and auto sectors in India are
switching to this new concept over the last 5 years after seeing theresults of implementation in the developed world. This is also
necessitated by pressures on them by suppliers from abroad to comply
with global business practices, failing which they run the risk of being
left behind. Infosys Technologies is a founding member of EPC and
Wipro technologies have been associated with Auto-ID Lab at MIT for
some years now. Both these companies play a big role in the EPC which
provides standards for implementation of the technology. The Big
Bazaar, Pantaloon has taken initiative in piloting RFID in its TarapurWarehouse. With the help of Wipro InfoTech, the architecture of
implementing RFID is being worked out with existing Pantaloon
infrastructure. The major benefits indicated were increased visibility,
faster and more accurate processes. Other sectors of the industry such
as FMCG, Oil and Gas, Defense have shown interest on RFID
implementation. Government is also keen on becoming one of the large
potential end users of RFID/EPC (Electronic Product Code) for tracing
and tracking equipments and spares, asset management, effectivestock management, zero error production, order processing,
distribution and logistics management etc. With its varied usage and
benefits, RFID is poised and anticipated to be one of the emerging
technologies which have the capability to transform business problems
into profitable and positive outcomes.
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CONCLUSION
Since RFID is in its budding stage in India, it can be perceived as an
immature solution which consist lot of technical and commercial
barriers. However, it is said to rock the supply chain over the next 20
years as it is a logical evolution. It is also projected to be critical for
supply chain in the next 10-20 years and is expected to become a
mainstream technology. Effective implementation of RFID generates
data that can be used to develop segmentation models and can
accurately predict customer usage patterns. Thus, data collected is
comprehensive and can provide bigger picture of the customer than
othersystems of data collection in the market.Though RFID industrypractices are still in the nascent stage and are relatively limited
II Stage- Sample Design
Sample Unit: Retailors
Sample Size: 50 retailors by covering 1 city-
Bangalore (Karnataka),
Sampling Type: Z-test & Correlation analysis.
III Stage- Approaches to Research Design
1.Research Design Exploratory/Conclusive/description/causal
Research
2.2. Data Collection
I.Primary data.
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Questionnaire for the Survey on RFIDA study on impact of Radio Frequency Identification (RFID) on
supply chain in Retail stores in Yesvanthpur.Q.1- Explain the reason you are considering RFID:
a)Improve efficiency
b)Improve productivity
c)Reduce operating costs
d)Required by supplier
e)Reduce labor costs
Reasons No. of Votes
A 9
B 6
C 5
D 4
E 6
0
5
10
a b c d e
Reason for RFID
Reason for RFID
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Q.2- What is your infrastructure installation budget?
a)Not sure yet
b)Less than 10,000c)10,000 - 25,000
d)25,000 -50,000
e)More than 50,000
Reasons No. of Votes
a 3b 5
c 8
d 7
e 7
0
1
2
3
4
5
6
7
8
9
a b c d e
Installation Budget
Installation Budget
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#Customer Services: (Likert Scale)
(1-Very Poor, 2-Poor, 3-Good, 4-Very Good, 5-Excellent)
Q.3- Faster Checkout:
a)1b)2c)3d)4
e)5Likert Scale No. of Votes
1 2
2 7
3 6
4 8
5 7
0
1
2
3
4
56
7
8
9
1 2 3 4 5
Faster Check
Faster Check
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Q.4- Better Information:
a)1b)2c)3d)4e)5
Likert Scale No. of Votes
1 7
2 6
3 5
4 6
5 6
0
1
2
3
4
5
6
7
8
1 2 3 4 5
Better Information
Better Information
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Q-5- Better Inventory Visibility:
a)1b)2c)3d)4e)5
Likert Scale No. of Votes
1 3
2 6
3 6
4 7
5 8
01
2
3
4
5
6
7
8
9
1 2 3 4 5
Better Inventory Visibility
Better Inventory Visibility
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#Efficiency: (Likert Scale)
(1-Very Poor, 2-Poor, 3-Good, 4-Very Good, 5-Excellent)
Q.6- Theft Reduction:
a)1b)2c)3d)4
e)5Likert Scale No. of Votes
1 6
2 5
3 7
4 6
5 6
0
1
2
3
4
5
6
7
8
1 2 3 4 5
Theft Reduction
Theft Reduction
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Q.7- Labour Efficiency:
a)1
b)2c)3d)4e)5
Likert Scale No. of Votes
1 6
2 5
3 5
4 6
5 8
0
1
2
3
4
5
6
7
8
9
1 2 3 4 5
Labour Efficiency
Labour Efficiency
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Q.8- Inventory Reduction:
a)1
b)2c)3d)4e)5
Likert Scale No. of Votes
1 3
2 7
3 4
4 8
5 8
0
1
2
3
4
5
6
7
8
9
1 2 3 4 5
Inventory Reduction
Inventory Reduction
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#Security: (Likert Scale)
(1-Very Poor, 2-Poor, 3-Good, 4-Very Good, 5-Excellent)
Q.9- Asset Tracking:
a)1b)2c)3d)4
e)5Likert Scale No. of Votes
1 4
2 7
3 5
4 7
5 6
0
1
2
3
4
5
6
7
8
1 2 3 4 5
Asset Tracking
Asset Tracking
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Q.10- Safety:
a)1
b)2c)3d)4e)5
Likert Scale No. of Votes
1 4
2 6
3 5
4 7
5 8
0
1
2
3
4
5
6
7
8
9
1 2 3 4 5
Safety
Safety
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Q.11- Retailer Compliance:
a)1
b)2c)3d)4e)5
Likert Scale No. of Votes
1 5
2 5
3 6
4 7
5 7
0
1
2
3
4
5
6
7
8
1 2 3 4 5
Retailer Compliance
Retailer Compliance
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#Operational Gains: (Likert Scale)
(1-Very Poor, 2-Poor, 3-Good, 4-Very Good, 5-Excellent)
Q.12- Faster Sales Cycle:
a)1b)2c)3d)4
e)5Likert Scale No. of Votes
1 5
2 5
3 7
4 7
5 6
0
1
2
3
45
6
7
8
1 2 3 4 5
Faster Sales Cycle
Faster Sales Cycle
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Q.13-Integration of System:
a)1b)2c)3d)4e)5
Likert Scale No. of Votes
1 6
2 4
3 6
4 7
5 7
0
1
2
3
4
5
6
7
8
1 2 3 4 5
Integration of System
Integration of System
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Q.14- Anticipated ROI:
a)1b)2c)3d)4e)5
Likert Scale No. of Votes
1 5
2 6
3 5
4 6
5 8
0
1
2
3
4
5
6
7
8
9
1 2 3 4 5
Anticipated ROI
Anticipated ROI
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Methodology:Perceived BenefitsThe primary information was collected by analyzing the secondary
data on benefits sought from RFID and was ranked as per the
importance. Likert type of scale (with 1 being least important and 5
being most important) was used to know the importance the retailers
attach to each of the sub factors. Then weightage of (Likeability and
Dislikability ) was assigned depending on the importance attached on
a Likert scale (1, 2, 3, 4, 5), respectively, with 1 being the leastimportant and 5 being the most important.
From the above Questionnaire it can be understood that among the
various benefits of RFID, retailers perceive Reasons to be the priority
benefits among the factors studied.
0
1
23
4
5
6
7
8
9
10
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14
SCALE
SCALE
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2:-Secondary data.
Secondary data source
All secondary sources such as trade publications, industry reports,
conference papers were used wherever necessary. Secondary studies andreview of literature revealed the attributes, which were furtherconsidered for factor analysis.
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Findings and Suggestions :
By doing the correlation analysis of various variables that was selected
for questioner , we can draw conclusion that faster check out and faster
sales cycles have a positive correlation but in a medium range , and
similarly better information we can see that they are poorly correlated ,
in the case of inventory and retailors compliance we can that they are
highly correlated ,similarly in the case of asset tracking and safety they
have high correlation , in the case of theft reduction and safety they have
negatively correlated ie they dont have any impact on each other
In the z-test, from the data the extreme tail value of the graph is
1.95 and the calculated value from the data is 1.236. so the value comes
inside the acceptance region of the graph, so we select the null
hypothesis. There for the implementation of RFID has increased the
efficiency and scope of inventory management. There for we can
conclude that retailors will have a better profit and control of their
resource if they implement RFID.
1.236 1.96-1.96
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Conclusion:-
Research on RFID equipment has proved that the use of the RFID hasincreased the efficiency of retail stores supply chain management.As
per Idtechex (2006), it is estimated that 44% of global RFID marketvalue will be dominated by retail industryin 2016. It is also projected to be critical for supply chain in the next 10-20 years and is expected to become a mainstream technology.Mongelluzzo (2005), in his study, stated that Accenture in 2004 reportedto generate $4 billion net value in the electronic space from full RFIDimplementation. This indicates the potential RFID possesses. ThoughRFID industry practices are still in the initial stage and are relativelylimited, most of the suppliers are catering to minimal compliance inorder to meet the mandates of Wal-Mart and othermajor players.
References:
[1]Association for Automatic Identification and Mobility.
What is RFID.
. Web. 14 June 2010.
[2]Netaji Nagar Day College. An Introduction to RFIDTechnology. < http://www.nndaycollege.com/rfidintro.
html>. Web. 14 June 2010.
[3] Advantages and Disadvantages of RFID Technology.
. Web. 14 June
2010
[4] www.EBSCO.com
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