RFID Enabled Appliances, Products, Etc.

¶ … RFID enabled appliances, products, etc. will create new ways to manage household operations.

The increasing use of radio frequency identification (RFID) tags has brought into the attention the possibility of using these around the household, in order to increase time management capacity and to obtain cost and expense reductions through better operational management due to RFID tags. The purpose of this paper is to identify a series of household functions and situations where RFID tags can be used and to evaluate the potential benefits that can be obtained from there usage.

In order to do this, the paper will propose a business model that will assimilate the household to a business organization that generates revenue through the household income, has different operations and operational challenges (supplies, meals, facilities maintenance, etc.) and has an output (quality of life). The paper will show where RFID bring about better operational management.

INTRODUCTION

The U.S. invention patent issues for the household RFID tags defined the RFID household system as a "a computer controlled interactive display RFID (...)enabling a householder to track and manage a set of RFID tags containing household possessions located within short-range RF limited boundaries of a household facility" (United States Patent 20060054691, 2006). According to the patent, the RF transceiver is aimed at identifying and communicating with the RFID tags placed within the household on different items.

The appearance of RFID has come from the necessity to eliminate direct interaction and increase reaction capacity in several operational situations that would lead to increased time and management performances. From the health care to the retail industry, RFID has become synonym with the new operational management trend and RFID appearance in the household is soon expected.

LITERATURE REVIEW

Over the past years, RFID have become important instruments in increasing business performance through a better supply chain management and lower inventory, logistics and distribution costs (Dunlop, 2007; OAT 2007).

Item tags, as particular to pallet tags, for example, are used to mark single items. In 2005, there was only a total number of 0.04 billions of units sold in the world (Forcinio, 2006), but there number is expected to grow exponentially to reach 400 billions in 2015. These are also the types of tags that can be used in households to maximize output efficiency and productivity.

The initial decision on whether to implement or not RFID in a business structure is usually difficult to take and motivate, because an RFID implementation decision will not be based on actual cash flow or breakeven analysis (Patil, 2004). While a financial analysis may not give the best results, some suggest the real options theory as the best approach to maximizing the value transmitted by RFID (Patil, 2004).

Not all seems to be positive about RFID in the household. 15 privacy and consumer organizations signed a petition protesting against consumer goods and products being equipped with RFI tags because of a growing concern that they will be used to track individual movement and location rather than products and goods around the house (Garfinkel, 2004). According to associations such as American Civil Liberties Union, the Electronic Frontier Foundation or the World Privacy Forum, RFI tags embedded into clothing would allow a permanent individual surveillance.

PROPOSED Business MODEL DESCRIPTION

The paper will refer to the household as a business entity, an organizational model that employs factors of production in order to maximize its revenue, lower operational costs and generate a final profitable output. The individuals that form a household are seen as employees and managers within the organization.

CONCEPT of RFID USAGE in the HOUSEHOLD

The RFID use in the house is based on the use of tag items that can be placed on objects around the house. These can be much easier tracked, located within the house, for more efficient processes within the household. Ranging from tracking products and inanimate objects within the household to tracking lost pets and the use of smart appliances that can work better by themselves, the use of RFID in the household will be moulded into the existing household business model, previously presented.

The household business model proposed three main areas of permanent RFID usage within the household: access, and identification/localization and "smart appliances" (Forcinio, 2006).

Access.

In terms of access, there are two main directions where the RFID usage is targeted: facilitating access for the inhabitants of the household and security measures, that is banning access to individuals who are not to enter the household.

The access facilitation segment can be done with the implementation of RFID for the garage and entrance doors that can thus automatically open when the household members approach the house. On the other hand, RFI tags can also be implemented within the household, for automatic doors between the different rooms of the house which can open when the individuals pass by it.

The access issue is greatly improved by RFI tags on the security segment. Here, potential thieves will not be able to open not only the area giving way to the property (entrance and garage doors), but also the doors between the rooms. This thus limits their capacity of theft.

Identification / localization.

In terms of identification and localization, RFI tags can have numerous potential uses within the household. First of all, a lot of time is spent searching for things around the house. This can range from products and items in the kitchen when cooking, in the bathroom, around the house when repairs are done etc. The fact that products would be equipped with RFI tags will enable the individuals to immediately locate any device or item that is needed for a certain operation.

On the other hand, RFID can be used on pets to either locate them within the house or outside the household, when they are lost in the neighbourhood or elsewhere.

Smart appliances"

The RFID tag communication can coordinate household items such as ovens or washing machines to start certain operations at precise moments and at specified settings. The entire process could be tied together in a chain of operations that can exclude the individual participation.

For example, the fridge can function at a certain temperature, but around the time the game is about to start on TV, the household individual can communicate via the RFI tag the necessity to modify its settings and decrease the temperatures. At the same time, the microwave oven will be instructed to start a 2 minutes period of cooking the popcorn, while the TV will be automatically turned on, with the help of the RFI tag, at exactly the time of the game and the same time that the microwave will also turn off. The coordination between these three household appliances is done through RFI system implemented in the household. The fridge coordinates the start of the microwave oven, while the stop of the oven process will automatically start the TV.

Another example is related to the medicine cabinets, refrigerators or locations filled with supply. A RFI tag will be able to alert when the respective location needs to be restocked or when supplies need to be replenished. This can mark the necessity to refill the supply place without actually having to repeatedly check the location or run the risk of running out of anything important.

HOUSEHOLD RFID USAGE BENEFITS

The benefits and positive effects of RFID and RFI tags usage around the household will be listed according to the function they address in the house and with reference to the different operations in the household.

Supply management

The most important benefit of RFID usage in the household is the increase in supply management efficiency. As mentioned, one of the benefits of RFID is related to the fact that such tags can centralize the entire supply necessity in the household. The central RFI device can centralize information from throughout the household showing what household supplies are going to be finished over the next period of time and what needs to be bought in the meantime. This can range from medicine to mineral water and to food products.

The importance of this type of centralized information is that the household manager can (1) know at all times the available supplies in the household and (2) have a shopping list prepared in a very small period of time, due to a decrease in the quantity of time spent on checking supply availability. Basically, the information supplied by the centralized system will simply be transformed in a shopping list containing products and items that need to be bought.

Not only is time saved with a better household supply management due to RFID, but important cost savings are reached as well. This is because through this system, products can be bought from the hypermarkets at lower prices rather than from the small neighbourhood groceries, for a lower operational cost.

This is not the only part where RFID help in supply management within the household. Indeed, tags are used not only to decide on what supplies are about to run out, but also on identifying supplies in different locations. If the household possess a storage rooms, RFI tags will help locate the olive oil among other supplies or the location of a certain spice. This is something that increases efficiency when cooking, thus reducing overall time-associated costs.

Logistics

Logistics is closely tied with the supply management issues previously described. Logistics cost decreases within the household because, due to a better supply management guaranteed by RFID usage, the individuals in the household will need to make less trips to the hypermarket in order to ensure that supply are at the same level. The coordinated centralization of supply data and information, guaranteed by RFID, also ensure lower logistics costs.

Transportation and access

In terms of transportation and access, the RFI system will ensure a higher level of security for the household and a lower risk of burglary incidence at a lower cost. Indeed, the alternative solution would have been for the household to hire a 24 hours surveillance team that would have implied a regular monthly expense. With the implementation of RFID access, the security threat is down to minimum levels, which means that the monthly expense for surveillance no longer needs to be paid.

A further expense reduction is done by lowering insurance taxes paid, because of a lower degree of need to insure the goods in the house. The better security system, guaranteed by the use of RFID, also means that lower insurance taxes will be charged.

In terms of transportation, moving around the household is easier with the RFID system and the individuals can use the access facilities in the house much easier as well

Device coordination

This is an important operational function in the household that increases overall productivity of the different appliances in the household. Reverting to the precedent example of the refrigerator, the microwave oven and the TV, an analysis of what the regular operational process is in absence of RFID will show the benefits of the RFID system in the household.