RFID for Healthcare and Life Sciences
April 4, 2005
© 2005 Computer Sciences Corporation
BE05_0023
2
RFID Has Created a Tsunami Within Many Organizations
Consumer Packaged Goods & Retail
Manufacturing
Process Industries
Healthcare
© 2005 Computer Sciences Corporation
BE05_0023
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Analysts Recognize and are Focusing on the Wave
Source
–
Bear Stearns and Co., Inc., June 2004
“Wal
-
Mart and DoD are requiring their 10,000 and 43,000
suppliers respectively to “equip all arriving pallets and cases
with RFID tags for tracking purposes”…
“RFID’s potential ROI for pharmaceutical companies is significant through improved
inventory management and product
-
recall capability, enhanced patient safety, and as a
guard against drug counterfeiting…Use of RFID by drugmakers will surpass CPG
within 18 months.”
Source
–
Meta Group, August 2004
Source
–
Gartner, June 2004
“Have a written RFID plan ready to share with your board and
senior management to show that you've completed an in
-
depth assessment of RFID”…
© 2005 Computer Sciences Corporation
BE05_0023
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Healthcare “Mandates”
Vendor
Date Announced
Compliance
Scope
September 2003
January 2006
RFID
-
enabled at case, pallet and item
packaging levels
February 2004
March 2006
Linear Bar Code label on the immediate
container of human drugs, blood and blood
products
2003
January 2005
–
All
January 2004 Hi Risk
Drug pedigree
•
Medical suppliers to the DoD will have to comply with the RFID requirement by January
2006 if they want to be a DoD Supplier
•
Bar Code Auto
-
ID capabilities have been mandated for pharmaceutical manufactures,
re
-
packagers, and re
-
labelers
•
Joint Commission on Accreditation of Healthcare Organizations (JCAHO) proposed a
medication bar code requirement for January 2007
•
Florida mandated a drug pedigree, first on a small number of at risk drugs, moving to all
drugs in 2005
RFID has not been mandated directly for healthcare. However, RFID and other forms
of Auto
-
ID are the best solution for a number of healthcare mandates
© 2005 Computer Sciences Corporation
BE05_0023
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Potential RFID Benefit Opportunities for Providers
•
Develop a “New and Improved” Hospital Management Solution
•
Track all mobile assets
•
For patients, leverage same infrastructure to monitor:
–
Location for census management and capacity management in specialty
areas, e.g., perioperative, radiology, cardiology, ED, Labor & Delivery
–
Status for safety, e.g., medication management, allergies
–
Administrative requirements, e.g., patient history, consents, insurance
•
To improve perioperative efficiency and inventory requirements
visibility, develop systems that create a bill of materials by DGR
on admission
•
Interface to existing applications that provide inventory
location and quantity for consumables and non
-
critical items
•
Develop a data warehouse for all hospital infrastructure (beds,
surgical rooms, X
-
ray etc.) and develop interfaces to update
status assignment
•
Provide management dashboard and exception disposition
© 2005 Computer Sciences Corporation
BE05_0023
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Pharmaceuticals, Medical Devices and Distributor Benefits
•
Drug anti
-
counterfeiting / authentication
•
Specimen tracking during drug development
•
Sample drug inventory management
•
Inventory tracking across the supply chain
•
Medical error reduction / patient safety
•
Automated replenishment at retailers and hospitals
•
Traceability for targeted recalls (1300 in 2001¹)
•
Tracking returns ($2B in 2002¹)
•
Medical device lifecycle management
•
Temperature monitoring
•
Etc. …
Sources:
1
2002 HDMA Industry Profile and Healthcare Factbook
© 2005 Computer Sciences Corporation
BE05_0023
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Drug Manufacturers are adding RFID tags to bottles of their
pills to fight counterfeiting
“Pfizer Inc. plans to start shipping bottles of Viagra with radio
frequency identification, or RFID, by the end of next year. We're starting
with Viagra because it is probably the best
-
known and one of the most
counterfeited pharmaceutical products“
Pfizer, which sells more than $1.5 billion worth of Viagra a year, will
spend several million dollars to add RFID tags to Viagra bottles.
Source: Bryant Haskins , Pfizer
Shipments of OxyContin bottles with the transmitters will begin this
week to two large customers … The new bottles also should help
authorities and the company in its battle against theft of OxyContin
from pharmacies. The company said it will donate 100 hand
-
held
scanners that can read the labels to law enforcement agencies.
Source: Aaron Graham, Purdue Pharma Security Chief
GlaxoSmithKline, said it too will begin using RFID on one of its
products in the next 12 to 18 months.
Source: ABC News Article, 15November 2004
© 2005 Computer Sciences Corporation
BE05_0023
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Financial Impact of Counterfeiting
Source: NACDS Leadership Council, Counterfeit Prescription Drug Initiative, Dec. 8, 2003
The FDA estimates that up to 40 percent of pharmaceuticals
shipped from countries such as Argentina, Colombia, and
Mexico may be counterfeit.
-
RFID Journal 10/03
© 2005 Computer Sciences Corporation
BE05_0023
9
Why RFID Instead of Bar Code?
•
Auto capture
–
Unattended, hands
-
free
execution
•
No line
-
of
-
sight required
•
Reads multiple tags simultaneously
•
Dynamic, “real time” update of tag
information
•
Fast read/write throughput
•
Can hold more data than Bar Codes
•
Increased read range capability
•
Secure information
•
Withstands harsh/dirty environments
For the first time … your inventory talks to you!
© 2005 Computer Sciences Corporation
BE05_0023
10
Radio Frequency Identification (
RFID)
•
A Family of Technologies
•
Technology developed in 1940s
•
Early application starting in 1980s
–
Livestock tag and trace
–
Toll Road Passes
–
Security Access Cards
•
Smart Labels
—
1998
–
The current RFID buzz is about
Smart Labels
A type of Auto
-
ID technology that uses radio waves to
automatically identify individual objects
© 2005 Computer Sciences Corporation
BE05_0023
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RFID is Automated, Wireless, Data Input and Output
RFID is a tag/label with a unique identifier embedded within it that can have product
specific information written to or read from the tag. This information can be accessed
rapidly through RF without being in direct line of sight with the reader.
Tags
•
Device made up of an
electronic circuit and an
integrated antenna
•
RF used to transfer data
between the tag and the
antenna
•
Portable memory
•
Read
-
only or read/write
•
Active or passive
Antenna
•
Receives and transmits
the electromagnetic
waves
•
Wireless data transfer
Reader
•
Communicates with the
tag via antenna
•
Receives commands
from application software
•
Interprets radio waves
into digital information
•
Provides power supply to
passive tags
Data Accumulator /
Savant
•
Reads/writes data
from/to tags through the
reader
•
Stores and evaluates
obtained data
•
Uploads filtered event
data into an event filter
server
“Don’t get too enamored with RFID … It’s an enabler to capture data… real value
is in information systems.”
© 2005 Computer Sciences Corporation
BE05_0023
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RFID is a Network of Hardware Technology
•
RFID is not “one size fits all”
•
What, how and when an item is
tagged makes a difference in
performance
–
Water absorbs (attenuates) RF
–
Metal absorbs and/or reflects RF
•
Successful application of the
technology considers
–
Tag Technology
•
Chip
–
Silicon capabilities
•
Frequencies
•
Antenna
•
Mounting
–
Environment
•
Building
•
Atmospherics
•
EMI
–
Product/Application Life Cycle
Key Differences: Auto
-
Capture, Unique ID of Item
and Organization and Robust Survivability
1
Raytheon
Divisions Ship
•
Data processed based
on each BU’s unique
requirements and ERP
–
ERP / SCM / CRM /
MES
–
Events initiated and
executed on
tag/shipment specific
basis
•
Data Management
–
Business Intelligence
–
Real time analytics
–
Business activity
monitoring
–
Complex event
correlation
–
Business process
management
4
Event
Management
•
Trading partner
•
Customer
–
DD25Q
•
Each BU retains
its unique outputs
–
BU
configuration
5
Outputs
2
RFID Middleware
Processing
3
Middle ERP
Update
•
Reader
–
Sort Data
–
Manage Facilities
–
Commission Tags
–
Filter
–
Reader & Device
Mgmt
–
EPC Functions
–
Apply BU Specific
Tag Counter
•
XXX
•
XXX
Benefits
•
XXX
•
XXX
Network
Centric
Systems
Integrated
Defense
Systems
Missile
Systems
Raytheon
Aircraft
Company
Intelligence &
Information
Systems
Raytheon
Technical
Services
Company LLC
Space and
Airborne
Systems
Network
Centric
Systems
Integrated
Defense
Systems
Missile
Systems
Raytheon
Aircraft
Company
Intelligence &
Information
Systems
Raytheon
Technical
Services
Company LLC
Space and
Airborne
Systems
6.
Enterprise
Transaction System
1.
Tag
includes a microchip with
an antenna which stores a
unique electronic product code.
3.
Tagged Item
wakes up and transmits
its EPC data including manufacturing
item number and unique serial “id”
within the item family back to the reader.
4.
Middleware
filters raw
data, controls the
reader/tag network and
applies local &
corporate business
rules.
Internet
Internet
Internet
Internet
Internet
Internet
9.
Radio tags
automatically identify
products, their movement, removal
from inventory and action required at
designated points within the supply
chain.
8.
EPC Network
contains
detailed information…
7.
ONS server
matches the
EPC number from a tag.
5.
CSC’s RFID IT
Infrastructure
2.
Reader
sends a radio signal
that wakes up the chip and
reads its data.
© 2005 Computer Sciences Corporation
BE05_0023
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EPC Global Network for RFID
Reader
Savant
Items with RFID
Object
Name
Server
Object Name Service
(ONS) database, which
acts like a reverse
telephone directory
–
it
receives a number and
produces an address of a
PML server which has
extensive information
about the product
PML Server(s)
Physical Mark
-
up Language (PML)
file will store information about each
product such as a product’s name,
category, when it was made and
where, its expiration date, etc
The tags “wake up”
and start broadcasting
their individual EPCs
Event Server
Savant receives all the EPC
from the reader and sends a
query over the internet to an
Object Name Service seeking
information about what the
RFID Tag is attached to.
Mainframe
Applications receive the
information about the
product from the Savant
Mainframe
Source of Item
Information
Mainframe
Source of Item
Information
© 2005 Computer Sciences Corporation
BE05_0023
14
Corporate RFID Serialization
Alternative to alternative EPC Net
Reader
Savant
Lite
Items with RFID
The tags “wake up” and start
broadcasting their individual EPCs
Event Manager
Savant receives all the EPC from
the reader and sends information
from the RFID Tags to the
application.
Mainframe
Applications receive the
information about the product
from the Savant
EDI
© 2005 Computer Sciences Corporation
BE05_0023
15
Healthcare Supply Chain Applicability of RFID
Application
Process Area
Business Area
Suppliers
Factory
•
Product/Inventory Management
•
Shipping Track and Trace
•
Delivery
Manufacturer
Factory
Warehouse
Transportation
•
Routing Stages/Steps
•
In
-
Process Location
•
Tool Tagging
Distributor
Warehouse
Transportation
•
Lot Traceability
•
Location Tracking
•
Cycle Counting
•
Program Segmentation
•
Outbound and Inbound In
-
Transits
Provider
Warehouse
Point
-
of
-
Care
•
Asset Tracking
•
Utilization & Product Lifecycle
Management
•
Patient Safety
•
Billing
© 2005 Computer Sciences Corporation
BE05_0023
16
Potential Vision to Secure Supply Chain
© 2005 Computer Sciences Corporation
BE05_0023
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Use Case: Pharmaceutical Manufacturers World
API Production
Drug Product/
Secondary Production
Organic Chemical
source
Packaging
Distribution
Center
Logistics
Track Totes and product from:
•
Chemical Source (1), to
•
API production (2), to
•
Secondary Production (3), to
•
Packaging (4), to
•
Warehouse/DC (5)
1
5
4
3
2
© 2005 Computer Sciences Corporation
BE05_0023
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Pharmaceutical Manufacturer Operations
: RFID Tags on key movement
containers, dollies and buggies allows perpetual location tracking, and
proactive management to improve flow
Receiving Dock
Shipping Dock
Linking location info through ERP allows connection to MES and LIMS,
allowing for anticipation/elimination of bottlenecks
Carton to
DC
Shipping
Tote
Blending
Granulation
Samples to Lab
Each movement tracked for
perpetual location ID
RFID Location
Tracking Server
Product
Info DB/
ERP
MES Info
Location
Info
Compression
Tableting
Encapsulating
Bottling Line
QC Lab
LIMS Info
© 2005 Computer Sciences Corporation
BE05_0023
19
Similar opportunities and benefits can accrue for
Medical Device Manufacturers
as well
Receiving Dock
Shipping Dock
Recieve
tagged items
Unpack
–
stow / to line
ID tracker
Server
ERP/MES
DBs
package
ship
Manufacture/
assemble
© 2005 Computer Sciences Corporation
BE05_0023
20
RFID Application
Description
Patient
Identification
RFID wristbands and tags can be used to positively identify
patients and serve as portable patient databases, thereby
reducing medical errors
Error Reduction at
Point of Care
RFID tags provide portable databases of information attached to
medications and supplies, supporting proper usage (type,
quantity, timing) for a given patient.
Supply Chain
RFID tags enable tracking and monitoring of supplies throughout
the supply chain, and allow the healthcare provider to identify
cases of counterfeiting, theft and tampering
Status Monitoring
and Threat
Detection
RFID and “smart tag” technology allows the healthcare provider
to monitor status and identify threats associated with patients or
supplies
Real
-
Time
Location
RFID and technology enables the healthcare provider to track
and locate equipment and people (patients, staff, visitors) in real
-
time, and automatically record events associated with their
location.
RFID in Healthcare
has the potential to impact clinical, operational,
and financial aspects of health care delivery
© 2005 Computer Sciences Corporation
BE05_0023
21
Instrument flow through the OR
•
Simplified view
•
Hospital specific variants
–
Structure
–
Policy
–
Procedures
–
Workflow
Operating Room
From OR
Inspect
Clean
Put in Wash Rack
Washer
Sterilizer
Trash
Instrument
Store
Linen
Single
Use
Items
Specials
Tray & Pack
Assembly
Steam
Sterilizer
OR
Store
Case Cart
Assembly
Dirty
Clean
Implants
SPD Clean
OR Suite
Case Carts
Implants
Drugs
Delecates
Specials
Case Cart
Case Set-Up
Case
Clean-Up
Unused
Equipment
Trash
© 2005 Computer Sciences Corporation
BE05_0023
22
RFID Applications in the OR
•
Track & Trace
–
Instruments
•
Track & Trace
–
Specials
•
Count
Operating Room
From OR
Inspect
Clean
Put in Wash Rack
Washer
Sterilizer
Trash
Instrument
Store
Linen
Single
Use
Items
Specials
Tray & Pack
Assembly
Steam
Sterilizer
OR
Store
Case Cart
Assembly
Dirty
Clean
Implants
SPD Clean
OR Suite
Case Carts
Implants
Drugs
Delecates
Specials
Case Cart
Case Set-Up
Case
Clean-Up
Unused
Equipment
Trash
© 2005 Computer Sciences Corporation
BE05_0023
23
Where to start: Develop an RFID Strategy
•
Identify real “compelling events” that must be addressed
•
The physics and environmental implications of RFID
technologies are important and should be carefully considered
•
Keep the focus of effort on “The Data”
–
not how it is collected!
•
Make sure that your organization understands …
–
The range and technologies and suppliers associated with RFID
networks and how they integrate with existing enterprise and ERP
systems
Strictly follow the same ROI based guidelines that have
always preceded IT expenditures
© 2005 Computer Sciences Corporation
BE05_0023
24
Where to Start?
1.
Business Process
–
Readiness Assessment
2.
Strategy and Business Case
3.
Design
4.
Test and Refine
5.
Evaluate
6.
Implement
STRATEGIC
ADVANTAGE
Attention
to Physics
Architecture That’s
Designed to Evolve
Business Process
Improvement
© 2005 Computer Sciences Corporation
BE05_0023
25
Designing and Deploying RFID Networks can be Complex
Applications
Data Management
Hardware/Readers
Chips/Tags
© 2005 Computer Sciences Corporation
BE05_0023
26
RFID Case Studies
Sears wanted to increase their understanding of how RFID can benefit their
business.
•
Validated that RFID can yield significant business gains in their business:
•
Distribution Center
–
Significant savings opportunity: Use RFID to capture and
eliminate excess handling and reduce damage in White Goods SC.
•
Jewelry
–
reduce inventory counts, increase DC efficiencies
•
High Value Electronics
–
Increase inventory visibility, reduce theft, improve
customer service
Approach
Results
•
Provided on
-
site education for Sears team about RFID technology and future trends
•
Designed and deployed onsite RFID test lab to evaluate a wide range of technology
•
Base
-
lined business processes and performed RFID proof of concepts around:
Distribution Center(s); Jewelry and High Value Electronics
•
Identified and validated several new potential business improvements in each of
these areas in the retail stores, distribution centers, and suppliers
•
Developed a RFID roadmap that defines the future steps
Savings via RFID Enabled Tracking System for the “White Goods” Supply Chain
projected to exceed $ 10 Million
© 2005 Computer Sciences Corporation
BE05_0023
27
BHP Billiton Quality Control
–
Hostile Environment
Problem:
–
Processing of copper ore involves an electro
-
winning activity which harvests pure
copper through catalytic reaction in a tank house
–
Quality and quantity of copper relates to the quality of the re
-
usable stainless steel
cathodes
–
Poorly performing cathodes are identified by manual observation and as much as
40% copper can be off
-
grade as a result
Acidity
Dirt/Grease
Electromagnetic
Fields
Solution:
–
Use RFID to track individual
stainless steel cathode blanks, and
link that identity to information about
copper quality, copper weight,
cathode maintenance, and operating
conditions within the tank house
environment
–
Achieve optimal performance and
maximize automation of the electro
-
winning tank house
RFID Case Studies
© 2005 Computer Sciences Corporation
BE05_0023
28
Summary
•
RFID is a new technology that will significantly enable the
Healthcare Supply Chain
•
Understanding and planning for the “physics” of RFID is critical
•
Don’t rush into it without a plan and an ROI!
© 2005 Computer Sciences Corporation
BE05_0023
29
Speaker Contact Information
Glenn A. White
Partner, Global Health Solutions
CSC Consulting Group
1160 West Swedesford Road, Suite 200
Berwyn, PA 19312
610.407.5647
gwhite26@csc.com
Experience. Results.
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