Implementing an Automated RFID Asset Tracking System

Want real-time inventory tracking data? Then look no further—RFID is the answer.

Matt LaFontaine
Solstice Medical, LLC

An onsite analysis by an experienced RFID systems integrator is a recommended first step to ensure successful implementation.

During the past few years, there has been much hype about using radio frequency identification (RFID) to track goods in the medical world. RFID is being implemented to track pharmaceuticals, hospital equipment and patients, making a positive impact to the bottom line. Now it is being implemented in the medical device industry to improve efficiencies in manufacturing, distribution and hospital operations. Specifically in orthopedics, consigned and loaned inventory, as well as reverse logistics processes, create challenging product accountability issues for surgeons, hospitals, sales representatives and manufacturers. With the emergence of medical-grade RFID and software technology specific for the industry’s logistics challenges, now there is an evolutionary solution for a longstanding industry challenge.

That’s right, evolutionary, not revolutionary. To say RFID technology is revolutionary would suggest that this technology is disruptive, causing a major change. People get exited about causing a rebellion, but practically speaking, revolutions in the medical industry strike fear in the hearts of many. I would suggest that RFID technology deployed in the medical industry is evolutionary—developing in small increments and accumulating over time to bring about significant change. To think that a tiny piece of silicone with an antenna attached to it can single handedly solve orthopedic logistics challenges is ridiculous. However, the automated capture of data can do so. The combination of the right RFID tags, the right RFID readers and the right software technology—all working together—creates real-time accessible inventory status data, creating an exciting and new paradigm for the medical device industry.

How Is RFID Technology Changing the Industry?

First, RFID technology is creating awareness:

• Awareness that barcodes, which have existed for years, rely too heavily on human action (the likelihood of manual scanning occurring every time a product is moved or used is not practical)

• Awareness that there is no common inventory data repository among the manufacturer, distributor and hospital indicates that total inventory is excessive based on demand

• Awareness that change is inevitable to keep pace with increasing regulatory demands, volume demands, limited storage and a higher cost of transportation and labor

• Awareness that no single RFID tag is a silver bullet to solve the diverse logistic challenge orthopedic companies face

• Awareness that if any company does nothing, then it accepts eroding margins, poor delivery performance and lost market share

With awareness (and data) comes change. RFID and software technology are beginning to play a major role in changing product logistics processes and creating new efficiencies and cost savings in the orthopedic industry. One example is packaged implant and instrument set visibility at strategic locations within the total logistics process. As RFID-tagged product automatically is scanned by strategically placed readers, real-time inventory (quantity) and location (status) data are being captured, filtered, downloaded and automatically translated into existing enterprise resource planning systems. This fast and efficient capture of product data is what the evolution is about.

Implementing an Automated System

Autoclaved containers, cases, or instruments autoclave lifecycle data is captured automatically using advanced RFID and software technology.

If effective management decisions regarding mobile inventory begin with fast, reliable and accessible data, then how does the process start? It starts with a technology assessment and transitions to phased implementations. First, determine the products to be tracked. Second, determine where you want to track the product in the total logistics process. Third, determine the specific RFID technology. Fourth, tag your product, install the readers, and run the software.

For best results, an asset management company with experience in both RFID and the medical device industry should lead the implementation. How much is it worth for your company to have better, faster and more reliable inventory data? How can your company justify the added expense of an RFID system? To know these answers, the company must know its current logistics costs and compare them with results of a new system. To know how well the results of the new system will justify the investment, you will need to conduct a trial designed to fit your specific needs.

PHASE 1: Site Assessment and Proof of Concept

Designing and launching a successful RFID inventory management system are much like the process of designing and manufacturing an implant, instrument or case. The process requires engineering, project management, materials and production. Implementing an RFID system begins with requirements definition. Typically, the system requirements can be documented during a site assessment and interview of the key process owners. During the engineering phase, the system architecture, RFID tags, antennas, readers and software are designed. Once the system architecture is determined, prototype materials can be purchased and installation can begin. System implementation costs include both expense and capital items.

Various options to finance the capital system costs are available designed to suit your company’s financing preferences. Typically, cost benchmarking of current logistics costs and new system costs is estimated during this phase for return-on-investment (ROI) analysis. One feasibility study suggests that a fully implemented system adds less than $2 to the cost of a system’s total delivery cost, with a payback of less than one year.

Site Assessment

This is the basis for your overall plan. What areas need to be improved? What are the desired outcomes? What are the products to be tagged? What are the logistics and environmental challenges? What are the system performance requirements (eg, read range, read rates, anti-collision, tag memory size and read locations). Typically, technical design specifications begin with the performance characteristics of the RFID tag technology. Passive RFID (no battery) ranges from low frequency (LF) to high frequency (HF) to ultra high frequency (UHF) to microwave. The physics and performance are unique for each frequency. One way to identify and quickly understand your technology needs is to have an onsite assessment completed by an RFID systems integrator. An experienced integrator can help determine an unbiased opinion of the best tag technology and reader technology options and software solutions to best fit your needs in a cost- and time-effective manner. Figure A shows a typical system diagram for a hospital.

Proof of Concept

Instruments with embedded RFID technology are scanned prior to placement in an instrument container.

Much like various styles of hip or knee implants exist to accommodate various human anatomies, RFID tags and antennas are available in various shapes and sizes—engineered for optimal performance in various environmental conditions. During the assessment stage, it may be unclear which tag technology or technologies will perform best and be most cost effective. The concepting process entails experimenting with various styles and geometries of tags within a frequency band. The same is done with antenna portals. Then a specified group and quantity of inventory is tagged to test the readability and reliability of the tagged product in a controlled environment. Proof of concepts can be done onsite or at a medical environment lab facility that is fully equipped with a variety of RFID technologies.

PHASE 2: Trial or Pilot

After the site assessment and proof of concept are completed and the optimal RFID system components are selected, a larger scale rollout is initiated in the real-world environment. This process may take several months or even a year, depending on the number of tagged items deployed, the number of readers deployed and software interfaces required. The goal of the trail is to understand system performance, make modifications and determine effectiveness of the system to generate fast, reliable and accessible data.

PHASE 3: Implementation

After the pilot program has been perfected and ROI confirmed, a much broader implementation of the RFID system begins. All areas of implementation may be staged and all staff trained on any new business process enhancements.

Challenges and Unique Criteria for the Industry

Some physical and functional performance requirements must be taken into consideration by the medical device industry when evaluating the appropriate RFID technology. As a result of these unique industry requirements, it is essential to consider maximizing your ROI by maximizing use of a standards-based reader network. Ultra-high frequency Generation II and high frequency technologies offer the most flexibility and adaptability to track devices at the package level, instrument set (case) level, instrument level and, ultimately, the actual implant.

Other challenging factors include survivability during the gamma sterilization and increasing the tag memory capacity. However, both of these factors are being addressed with labeling process changes.  

RFID and Software Solutions for Orthopedics

Plastic totes containing multiple RFID-tagged items within a close proximity of each other can be read simultaneously and without duplication using a tunnel-type reader system.

New RFID products that are specially designed for the needs of the orthopedics industry include durable autoclavable RFID tags, smart inventory cabinets and software. The effectiveness of any RFID system begins with the RFID tag and its performance characteristics, affected by the product or materials being tagged.

Metal, water, heat, density, packing and surrounding environmental conditions all affect performance. One particular tag has been invented to facilitate tracking of orthopedic instruments and cases. Reusable passive UHF tags have been developed to read on or in metal, survive repeated autoclave and washer decontamination cycles, as well as provide substantial read distances that allow automatic scanning. These tags are customizable in various sizes, colors and graphic options to effectively enable a smart orthopedic instrument set. Additionally, the tags can be embedded into metal or plastic yet retain excellent read distance and data transmission speeds to improve inspection and inventory processes. The tags have anti-collision properties, allowing hundreds of items to be scanned simultaneously.

Another example of a product available that is appealing to a wide range of OEMs and hospitals is the RFID smart cabinet for tracking orthopedic implants or other high-value assets. This type of storage uses on-demand sensing to identify packaged implants removed or added to the cabinet, while transactions are automatically associated to the user.

The cabinet has secure access and records inventory changes and associates them to a particular employee and time stamp. This product enables 24/7 simultaneous remote visibility of the contents for the manufacturer, distributor and hospital. It also provides e-mail alerts of low inventory, obsolete inventory and remote lockdown functionality. Automatic inventory cabinets are capable of providing step-function labor reductions because manual inventory counts are eliminated.

Software technology is an integral component to any RFID technology system, generally referred to as “middleware.” This provides the necessary functionality of writing specific data to a tag and then manages tag reads by filtering the scanned RFID data and pushing the data to a user interface that provides enhanced functionality to the user or business operations. Middleware and data can be hosted by a provider or integrated with manufacturers business systems, such as SAP, Oracle and a host of other systems.

RFID: A Problem Solver

In summary, RFID tag technology and software systems have emerged to solve the diverse and challenging logistics processes for the orthopedic industry. Various implementation strategies are proving to be cost effective, compelling adopters toward broader implementations. One thing is for certain: Wishing your logistics problems will just magically disappear won’t happen; proactively implementing systemic advanced technology solutions will provide measurable, positive results and significant competitive advantages.

Matt LaFontaine is the director of engineering and program management for Solstice Medical, LLC. He has an extensive background in mechanical and electronic systems engineering and implementation management.

Solstice Medical is a medical device asset management company that offers auto-identification technology systems integration from the earliest points of manufacture through point of care to reduce the cost and improve the safety of healthcare delivery. Solstice Medical is the developer of the DOCK to DOC system, a comprehensive asset management solution and provides RFID tag engineering, single-use and reusable medical grade RFID tags, site and enterprise tracking software, RFID hardware, systems integration, maintenance and support to enable total supply chain control. Solstice Medical is a Magellan Technology Partner and its preferred systems integrator for medical applications.  More information on Solstice Medical, LLC is available at www.solsticemedical.com.