A framework for mapping the RFID-enabled process redesign in a simulation model

A framework for mapping the RFID-enabled processredesign in a simulation modelAngeliki Karagiannaki, George Doukidis* and Katerina PramatariELTRUN Research Center, Athens University of Economics & Business, Attiki, Greece

Empowered by the possibility to automatically identify unique product instances, the Radio Frequency Identifica-tion (RFID) technology is expected to revolutionize the supply chain processes. However, in view of the numerouspossible ways that RFID can be implemented within the supply chain, the issue of supporting the design choicesbased on a credible assessment between the current (as-is) and the future (to-be) processes has become a matter ofconsiderable concern and debate for both practitioners and academics alike. To design RFID implementations inthe supply chain using a robust dynamic analysis, we resort to discrete event simulation. As a result, this paperconceptualizes the ‘RFID-enabled process redesign’ and proposes a framework regarding all possible types ofRFID effects when integrating the technology within the supply chain processes. The research design was basedon the empirical evidence through three case studies combined with the development of simulation models and ontheoretical constructs regarding the information technology (IT)-enabled process redesign.Journal of the Operational Research Society advance online publication, 30 October 2013; doi:10.1057/jors.2013.128

Keywords: simulation; information systems; decision analysis; logistics; RFID

Introduction

The dynamic character of today’s competitive environmentforces organizations to an incessant reassessment of theirexisting processes. Within this context, the introduction of newinformation and communication technologies (ICT) should beperceived as a catalyst for better practices and not as a cost of abusiness or as a voluntary responsibility. Nowadays, the RadioFrequency Identification (RFID) technology is expected to beone of the greatest of such technological enhancements (Chaoet al, 2007; Bendavid et al, 2009). RFID is a generic technologyconcept that refers to the use of radio waves to identify objects,and hence embraces a new and important sector of mainstreamICT, the so-called object-associated or object tracking or itemattendant ICT (CASAGRAS Final Report, 2009). RFID hasbeen extensively used for a diversity of applications, but whathas made this technology extremely popular is the applicationof RFID for the supply chain management. RFID can poten-tially empower a great set of improvement opportunities acrossthe supply chain, ranging from upstream warehouse anddistribution management down to retail-outlet operations,including shelf management, promotions management andinnovative consumer services, as well as product traceability(Pramatari et al, 2005; Ustundag and Tamyas, 2009).

From a supply chain perspective, it is obvious that RFIDtechnology is not solely regarded as an agent of ‘substituting theexisting processes’ whose purpose is self-evident. In fact, thereare numerous possible ways that the supply chain processes canbe shaped in order to incorporate the RFID technology. Suchdimensionality produces uncertainties and fears in upper man-agement who wants to decide on a particular RFID implemen-tation based on a credible assessment between the current(hereafter the ‘as-is system’) and the possible future (hereafterthe ‘to-be system’) views of the supply chain processes (Leeand Özer, 2007). The starting point for this research is,therefore, an effort to assist companies in evaluating theircurrent position, identifying their RFID design choices andsupporting their decision on moving to a particular RFIDimplementation.To support such decision making with a robust analysis that

depicts the dynamic behaviour of the relationships between thebusiness processes and the information system (IS) (ie, RFID),there is a need to design appropriate modelling tools (Paul andSerrano, 2004). However, the majority of process modellingtools use conventional techniques based on functional decom-position or information engineering (Nidumolu et al, 1998).The static models generated by such approaches, while helpfulin representing how the ‘as-is’ processes work, are neverthelesslimited in scope because they cannot support dynamic analysisof the ‘to-be’ processes (Nidumolu et al, 1998). To support thedynamic structuring of the ‘to-be’ system, we can resort todiscrete event simulation. Discrete event simulation can be anextremely valuable, timely and cost-effective means to evaluate

*Correspondence: George Doukidis, ELTRUN Research Center, Departmentof Management Science & Technology, Athens University of Economics &Business, 47A Evelpidon Str, Athens, Attiki, 11362, Greece.E-mail: [email protected]

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and design ex-ante alternative RFID implementations withoutphysically building, amending or interrupting the real system(Doukidis and Paul, 1985).Within this context, this paper introduces a methodology and

support environment to aid both information technology (IT)specialists and managers regarding the design of RFID simula-tion experiments. As such, we seek to contribute to the domainsof simulation modelling and operations management by pro-posing a reference framework that is grounded on previousworks and on empirical data gathered from three case studies.As the framework integrates both theoretical and practicalconsiderations, it represents an initial step in developing guide-lines for using simulation to design RFID implementationswithin supply chain operations and map the way the RFIDcapabilities affect the processes in a simulation tool.This paper is organized as follows. The next section ‘Related

studies’ offers a justification for the relevance of the work. Thesubsequent section ‘Research design’ describes the researchdesign. The section after that ‘General structure of the frame-work’ conceptualizes the proposed reference framework. Thepenultimate section ‘Case study: applying the framework inthe warehouse context’ goes through the key elements of theproposed framework and gives illustrative examples of apply-ing the framework within the warehouse context. The finalsection ‘Research implications and conclusions’ describes someinteresting findings and provides a number of conclusions andfurther research aims.

Related studies

Simulation models are regularly adopted in supply chainmanagement in form of the traditional discrete-event models orsystem dynamics or agent-based ones. The prevalent use ofwireless automatic and real-time IT in supply chain processeshas increased the need for this powerful tool. High initial capitalcosts of such systems can produce uncertainties to the uppermanagement who wants to actually ‘see’ how changes willaffect the performance of the processes before making anyinvestment. Simulation can provide them with a platform tovalidate the performance of the altered system without physi-cally building, amending or interrupting the real one (Senko andSuskind, 1990). A survey conducted by Melão and Pidd (2003)confirms the great usage of simulation in the design, modifica-tion and improvement of supply chain processes.Although research on the impact of RFID on supply chains

using analytical approaches has proliferated significantly overthe last few years (Ngai et al, 2008), it is still at an early stage.Moreover, such papers examine RFID potential impacts in awide range of contexts. For instance, Lee et al (2004) used asimulation model to quantify the indirect benefits provided byRFID in inventory reduction and service level improvement in amanufacturer–retailer supply chain environment. Similarly,Fleisch and Tellkamp (2005) examine the relationship bet-ween inventory inaccuracy and performance by simulating a

three-echelon retail supply chain with one product. Furtherdevelopments in this direction are provided by Doerr et al(2006) who provide an analysis of the costs and benefits offielding RFID technology for the management of ordnanceinventory by combining a multi-criteria tool for the valuation ofqualitative factors with a Monte-Carlo simulation of anticipatedfinancial factors. Wang et al (2008) focus on the analysis ofsimulated impact of the RFID system on the inventory replen-ishment of the thin film transistor liquid crystal display supplychain in Taiwan. All these contributions advocate the use ofsimulation to evaluate the transition of the ‘situation before’ tothe ‘situation after’. Regarding our research, we are interested insimulation as a mechanism that can efficiently address processdesign requirements. The use of business process modellingtools is usually focused on modelling the current businessprocess, without a systematic approach to evaluating alterna-tives (Irani and Sharp, 1997; Irani et al, 1997) According toBrintrup et al, 2008, ‘simulation based ie. model-drivendecision support can be the answer to the current lack ofdecision support in implementing RFID, allowing statisticallysound, fast experimentations with different scenarios where thedecision maker can modify the process simulation modeltailored to the specific process under investigation’.Our review on the publications about simulation modelling

and RFID assessment illustrates that there is a growing body ofliterature that uses simulation modelling as a performanceevaluation tool to give a quantitative assessment of the deploy-ment of RFID in supply chain processes. However, the researcharea related to integrate simulation modelling as a decisionsupport tool to design RFID implementations has not beenaddressed. Only one publication explicitly tries to assist inRFID implementation design by proposing a model-basedreference model (Becker et al, 2009). In addition, according toCordella and Contini (2007), the choice of a specific methodol-ogy to support the design will affect the nature of the output ofthe design. As a result, the implications of this literature streamfor this research are the following:

● Directs attention to the use of simulation to support thedynamic structuring of the ‘to-be’ IT-enabled processes

● Need for a flexible, easy to use and tailored decision supportmechanism for helping decision makers in implementingRFID in processes

● Need to translate the business process redesign requirementsinto working computer programmes

Research design

The research design has been relied on case studies combinedwith simulation modelling. The objective was to understand theimpact of RFID on supply chain processes. Case researchgained respect in this research as it is suitable for answeringthe ‘how’ and ‘why’ questions (Yin, 2003) allowing for a richerknowledge of issues associated with IT decisions, that is, how

2 Journal of the Operational Research Society

the technology of RFID is integrated within processes. More-over, Palsson (2007) supports an increased use of participantobservation as part of a multi-methodical case study by using anRFID implementation study to illustrate the potential of themethod in logistics research. In this regard, the access to the reallife context brings richness and flexibility, making case researcha proven tool for achieving a deep understanding on how RFIDimpacts supply chain processes. In addition, the justification foremploying simulation to evaluate the impact of RFID onwarehouse processes can be categorized into two foci. The firstone includes implications regarding the nature of the systemunder discussion (ie, a warehouse) that is subject to variability,interconnectedness and complexity. The second lies in theadvantages of simulation that overshadow the mathematical oranalytical modelling techniques.Three exploratory case studies were conducted. Case I

comprised a third-party logistics provider (3PL). The studycovered one of its warehouses as a typical medium-sized oneand can be considered as the pilot case study for the sake ofchecking observation techniques and the design as a whole.Case II comprised a manufacturing food facility. The studycovered one of its divisions, the Frozen Foods Division thatinvolves the production and processing of frozen vegetables.Finally, Case III comprised a retail distribution centre. It can beconsidered as a typical retail distribution centre that stores awide variety of products until needed by the retail storelocations.

All three cases concern a warehouse but represent differentechelons of a supply chain (Figure 1). In addition, there aresimilarities and differences in their internal processes andcontextual characteristics (Table 1). All these similarities anddifferences in terms of the position in the supply chain and theinternal characteristics enhanced the external validity of thisresearch design.When conducting a multiple-case research, three stages take

place as depicted in Figure 2 (Source: Yin, 1989): researchdesign; data collection and analysis within each single case; andsearching for cross-case patterns.In all three cases, we documented current warehouse pro-

cesses (ie, receiving, storage, picking and shipping) usingformal methods (ie, Business Process Modeling Notation(BPMN)) and identified key issues. We also identified theRFID’s potential for improvement in the warehouse processesby depicting the to-be processes. All these mappings proved tobe very beneficial in making evident the impact of RFID onprocess redesign to all key stakeholders. Unlike some discretesimilarities between the three cases, following the mapping ofthe four major processes, each case was designed differently fora within analysis. Concerning Case I, this case study included asimulation study of the as-is versus RFID-enabled processes inorder to determine the relative effectiveness of RFID withinwarehouse operations. Experimental results indicated that byalleviating the ill effects of ‘manual’ scanning and verification,RFID accelerates substantially the receiving and shipping

ManufacturerManufacturer

Plant Plant Distribution warehouse Centre A

3PL Retailer3PL Retailer

Distribution Distribution POSCentre B Centre C

Figure 1 The three cases representing different echelons of a supply chain.

Table 1 Differences and similarities between the three cases

CASE I: 3PL warehouse (03/2006–01/2008) CASE II: Manufacturingfacility (01/2007–07/2008)

CASE III: Retail distributioncentre (07/2009–10/2010)

Product type/productIDs

● Paper trading● One product ID

● Frozen food● Many product IDs

Fast moving consumer goods

Mechanization level/computer system

● Manual warehouse system with ‘some’computer control—no WMS

● Semi-automated● WMS

● Semi-automated● WMS

Storage system/storageassignment policy

● Garage-like: a number of parallel aisles withproducts piled one on top of the other

● Closest open location storage

● Many shelves with littleautomation

● Class-based storage

● Many shelves● Dedicated storage

Batching Pick-by-order Pick-by-order Pick-by-orderZoning No zoning No zoning Synchronised zoningRouting No routing policy Heuristics HeuristicsOrder accumulation Discrete (wave picking) Continuous Continuous

Angeliki Karagiannaki et al—A framework for mapping the RFID-enabled process redesign 3

operations, particularly under high storage utilization. Concern-ing Case II, this case study incorporated the requirementsanalysis, RFID system design, development, pilot implementa-tion and cost-benefit assessment. Finally during Case III, weidentified important decision factors (ie, tagging level and whois responsible for the new tagging process) that control the wayRFID impacts the redesign of the warehouse processes. On thebasis of these factors, this case was about designing alternativeRFID implementations in order to assist the company inidentifying their RFID design choices and supporting theirdecision on moving to a particular RFID implementation. Eachalternative had its own value proposition, as well as require-ments in cost. As such, this case study included a simulationstudy of alternative RFID-enabled processes.To sum up, all three cases were first used for theory building,

addressing the issue of how the technology of RFID isintegrated within warehouse processes. Such analysis helpedus to compile a reference framework for RFID-enabled processredesign with an agreed structure. Cases I and III were furtherelaborated upon to develop simulation models. Adapting theframework for RFID-enabled process redesign that derivedfrom the cross-case analysis, the paper proposes a frameworkof how to implement the RFID-enabled process redesign in thesimulation tool. The framework provides simulation modellersa formal, yet user-friendly guide to design RFID-enabledsimulation experiments and map the RFID effects on thesimulation model components.

General structure of the framework

In doing a multiple-case research, we aim to a sound cross-casesupport for our conclusions. By analysing data across the threecases and recognizing commonalities and differences in the effectsof RFID, we try to provide further insight into the formalizationof the RFID impact by (analytically) generalizing the results. Aswe have selected all cases to be literal replications, we expect theresults to come to the same conclusion. More specifically, based onthe qualitative analysis of the three cases, we seek to build theoryconcerning the concept of ‘RFID-enabled process redesign’ anddevelop a reference framework for RFID-enabled process redesign.According to Lee (2004), process redesign can be classified

into two categories: process redesign in physical flow andinformation flow. Redesigns of warehouses are typical exam-ples of process redesign in physical flow. There are numerouspossible ways that the processes can be redesigned in order toincorporate the RFID technology. Such dimensionality derivesfrom the fact that RFID is an ‘object-connected’ technology.This means that the implementation depends not only on thefunctionality of the RFID application itself but more on howthe technology is deployed in terms of the physical flow of theobjects. As such, in order to guide this research, here we definethe ‘RFID-enabled process redesign’ as: ‘any possible way tointegrate the RFID technology within business processescapturing changes in all the key elements of a business process,including structure, workflow and entities’. These three

Review theory

• Relate study to previous theory

• Aim for exploration: impact of RFID on warehouse processes

Select cases

Design Data Collection Protocol

Conduct 1st

case study

• Mapping processes• Simulation modelling of the

as-is processes

• Field Trial of the RFID-enabled processes

• Simulation modelling of the to-be processes

• Interviews• Personal

observations during field visits

• Retrieving data from official records

• Mapping of the main processes

• Retrieving data from the pilots

Conduct 2nd

case study

Conduct 3rd

case study

Write individual case report



Draw cross-case

conclusions

Write cross-case report

DESIGN SINGLE-CASE DATA COLLECTION & ANALYSIS CROSS-CASE ANALYSIS

• Mapping processes• Requirements Analysis• RFID system Design &

Implementation

• RFID system Pilot Trial• Cost-benefit assessment

• Mapping processes• Identification of important

decision factors when implementing RFID

• Design & qualitative evaluation of the alternative RFID implementations.

• Case I: 3PL company• Case II: manufacturing

facility

• Case III: retailer DC

Figure 2 Case study method.Source: Yin (1989).


elements derived as a synthesis of the works of Davenport andShort (1990), Seidmann and Sundararajan (1997), Alter (1999),Reijers and Mansar (2005) and Becker et al (2009). Despite anydifferences, all these contributors converge to the above keycomponents of any business process. On the basis of thisdefinition, we introduce a reference framework as a supportingtool to aid both simulation modellers and process managersthrough the RFID-enabled process redesign. The frameworkprovides a formal, yet user-friendly guide to design RFID-enabled simulation experiments and map the RFID effects onthe simulation model components. To develop such framework,let us develop the following proposition:

● A simulation model of supply chain processes constitutes acombination of three interacting components: Configuration,Workflow & Policies and Entities.

On the basis of this proposition and taking as a basis the work ofReijers and Mansar (2005) who give an overview of rules thatcan support practitioners to develop a business process rede-sign, we seek to apply these rules regarding the RFIDtechnology. As a result, the proposed framework constitutes anoverview of rules that can support practitioners regarding theradical improvement of a current process design because ofintegrating RFID. The rules can be applied across variousprocesses and not only within the warehouse ones providing

practical guidelines for process managers. The presentation ofthese rules especially aims at efforts where an existing businessprocess is taken as basis for its redesign (Aldowaisan andGaafar, 1999). The various rules are derived from:

● the experiences gained from the three cases supplemented with● the two simulation models developed● a wide literature survey from areas such as business process

redesign, workflow management (such as Bagchi et al, 1998;Barnett and Miller, 2000; Harding and Popplewell, 2000;Schunk and Plott, 2000; Beamon and Chen, 2001; Reijersand Mansar, 2005)

● previous works on the expected RFID’s potential forimprovement (Dutta et al, 2007; Lee, 2007; Tajima, 2007;Becker et al, 2009; Roh et al, 2009; Ferrer et al, 2010)

Table 2 presents the reference framework for the RFID-enabledprocess redesign. The RFID effects are classified towards thethree dimensions of:

● Structure: This type of RFID effects impacts the structure ofa business process.

● Workflow: This means that RFID impacts the workflow of abusiness process.

● Entities: The entities involved in a business process can beconsidered as a third dimension.

Table 2 A reference framework for RFID-enabled process redesign

Effect type Description Referred to by

Dimension A: Structural characteristics of a Business Process (BP) Keith et al (2002); Alexander et al (2003); Chappellet al (2003); Karkkainen (2003); Attaran (2004);Capone et al (2004); Lapide (2004); Lee et al (2004);Srivastava (2004); Angeles (2005); Atali et al (2005);Chuang and Shaw (2005); Fleisch and Tellkamp(2005); Jones et al (2005); Lefebvre et al (2005);Pramatari et al (2005); Gaukler et al (2006);Hardgrave and Miller (2006); Wu et al (2006); Curtinet al (2007); Dutta et al (2007); Loebbecke (2007);Reyes and Jaska (2007); Sellitto et al (2007); Tajima(2007); Wang et al (2008); Becker et al (2009); Rohet al (2009); Ferrer et al (2010)

Al: Task elimination*,¶,†† The elimination of unnecessary tasks from abusiness process

A2: Taskcomposition*,†,¶,||,**,††,‡‡

The division of a general task into two or morealternative tasks or the integration of two or morealternative tasks into one general task

A3: Task addition The addition of new tasks in a business process

Dimension B: Workflow and policies of a BPBl: Task automation*,†,‡,#,¶¶ The automation of tasks or change in processing

timeB2: Resequencing*,†,‡, ¶¶ The change in a sequence/routing of tasks in a

processB3: Parallelism*,¶,††,¶¶ Whether tasks may be executed in parallelB4: Exception*,† A deviation from a standardized process execution

Dimension C: Entities involved in a BPCI: Integration*,‡ The integration with the BP of a supplierC2: Split responsibilities*,‡‡ Avoid assignment of task responsibilities to people

from different unitsC3: Resources elimination*,†,#,‡‡ Minimize the number of persons involved in a

business processC4: Extra resources* If capacity is not sufficient, consider increasing the

number of resources

*Reijers and Mansar (2005). †Hammer and Champy (1993).‡Balasubramania and Gupta (2005). ¶Van der Aalst and Van Hee (2004).||van der Aalst (2001). #Gunasekaranan and Nath (1997).**Seidmann and Sundararajan (1997). ††Buzacott (2006).‡‡Rupp and Russell (1994). ¶¶Davenport (1993).


In the first column, we present the type of RFID effect. Eacheffect is mentioned by the researchers referred by the upperletter. In the third column, we provide empirical evidence fromthe extant literature of RFID implementation.

Case study: applying the framework in the warehousecontext

Adapting the framework for RFID-enabled process redesign,here we identify the implications of change in each simulationcomponent due to the introduction of RFID. As such, weidentify the nature of the changes in the simulation modelcomponents and map the effects of RFID for a given RFIDimplementation. In close correspondence with the proposedframework for RFID-enabled process redesign, the changes inthe simulation model are classified towards:

● Structure: This represents changes in the configuration of thebase simulation model.

● Workflow: This represents changes in the model logic of theas-is simulation model.

● Entities: This represents changes in the entities of the as-issimulation model.

In the following paragraphs, we detail each type of change.

RFID effects in the configuration component of thesimulation model

This type of effects seeks primarily to configure the simulationmodel on an aggregated level and not each process in depth. Inorder to implement this type of changes in the as-is simulationmodel, we modify the model configuration, the specificationof the high-level processes to be supported by the model. Thismeans we add or remove objects such as work centres, queuesand so on. Adapting the framework for RFID-enabled processredesign, the changes in the configuration component of thesimulation model represent the rules of the proposed frameworkin terms of:

● Task elimination, means the elimination of unnecessary tasksfrom a business process. According to Reijers and Mansar(2005), control tasks are a specific case of unnecessary tasks.RFID technology alleviates the ill effects of verificationby reducing errors and the required time in checking. As aresult, we can propose that there is an RFID effect ofeliminating tasks. Within the warehouse context, concerning,for example, the receiving process, instead of manuallyscanning each inbound load and verifying it with thepurchase order and the shipment notification, RFID identifiesand checks each received load automatically as it passesthrough the portal readers. As a result, the scanning andchecking for any discrepancy are no longer necessary. Thus,these processes are eliminated because of the integration ofRFID technology. Figure 3 depicts the RFID effect ofeliminating tasks.

● Task composition, means the division of a general task intotwo or more alternative tasks or the integration of two ormore alternative tasks into one general task (Reijers andMansar, 2005). On the basis of this rule, we can propose thatRFID effects on the redesign of the processes by combiningsome tasks. Concerning the picking process, for example,there is an integration of the following tasks: scan thebarcode on the pallet and at the slot location in the racks,manually confirm the product picking, inventory update.Having deployed RFID during the picking process, theforklift is driven to the position indicated by the WMS andthe RFID reader captures the RFID tags for both the palletand the shelf location and the inventory is updated auto-matically at once. Figure 4 depicts the RFID effect of taskcomposition for the above example.

● Task addition, means the addition of new tasks in a businessprocess. As such, we also propose that RFID enables theredesign of the processes by adding new ones. For example,in case a firm takes the responsibility of attaching the RFIDtags on the products, there is a new process that includes thefollowing tasks: break the shipment down to have access toeach individual case, tag cases, rebuild pallets, tag pallets,ship tagged products to the storage. Figure 5 depicts theRFID effect of task addition for the above example.

Figure 6 depicts all these changes in the configuration compo-nent of the simulation model.

Figure 3 An example of RFID effect of eliminating tasks.

Figure 4 An example of RFID effect of task composition.

Figure 5 An example of RFID of task addition.


RFID effects in the workflow component of the simulationmodel

This type of effects determines how the model is going to beoperated with regards to the workflow in each process alongwith the ongoing operating practices. It can be considered as thework controller of the simulation that determines what workneeds to be done and by whom. Adapting the framework forRFID-enabled process redesign, the changes in the workflowcomponent of the simulation model represent the rules of theproposed framework in terms of:

● Task automation: This means the automation of tasks orchange in processing time and thus this represents changes inthe processing time, changes in distributions. Task automa-tion can be considered as the main RFID effect on theredesign of processes. Some examples are: automatic check-ing for any discrepancy (between BOL and PO), automaticenter data from BOL, automatic count and updatinginventory.

● Re-sequencing: This represents changes in routing of thework items. Re-sequencing means the change in a sequence/routing of tasks in a process. RFID technology impacts theoperation policies and as such on the sequence of theprocesses.

● Parallelism: Parallelism means whether tasks may be exe-cuted in parallel. For example, concerning the receivingprocess, the following tasks may be executed in parallel:checking the BOL and the packing slip, entering data from

BOL in the ERP, automatic counting and creating inventory.Figure 7 depicts the RFID effect of parallelism for the aboveexample.

● Exception: Exception means a deviation from a standardizedprocess execution. This represents changes in error reduction,efficiency increase. For example, the efficiency of thescanning process is increased.

In order to implement this type of changes in the simulationmodel, we modify the logic of the simulation model in terms ofprocessing time (ProcTime), error reduction (ErrRed), changein routing (ChgRout), efficiency increase (Effic), change in

Figure 6 Mapping the RFID effects in the configuration and workflow component.

Figure 7 An example of RFID effect of parallelism.


distribution (ChgDsb). This means we modify the propertiesand/or code of the work centres. Figure 6 gives the mapping ofthe RFID effects for a given implementation.

RFID effects in the entities component of the simulationmodel

This type of effects represents any changes in the individualpieces of information attached to each entity (product category,supplier, process operation, time of launch, safety stock etc).Adapting our framework for RFID-enabled process redesign,the changes in the entities component of the simulation modelrepresent the rules of the proposed framework in terms of:

● Integration, means the integration with the business processof a supplier. This is the case when the upstream suppliertakes the responsibility to attach the RFID tags on theproducts. Such integration impacts, in turn, the redesign ofthe processes.

● Split responsibilities, means avoid assignment of task respon-sibilities to people from different units. In case the upstreampartner does the tagging, integrating RFID leads to avoidassignment of task responsibilities to people from storageprocess.

● Resources elimination (see Figure 8), minimizes the numberof persons involved in a business process. It is obvious thatthe automation effect of RFID effect impacts the resourcesneeded to accomplish any business process. In case, forexample, the upstream suppliers take the responsibility forattaching the tags on products, the resources can be elimi-nated in the following tasks: manually scanning eachunloaded pallet, applying a new label, physically checkingthe BOL and the packing slip, entering data from paper BOLin the ERP, verifying quantity by looking up the PO, visualcounting of pallets.

● Extra resources, means that if capacity is not sufficient,consider increasing the number of resources. This is the casewhen the focal firm itself takes the responsibility to attach theRFID tags on the products in-house. This new processimpacts, in turn, the extra resources needed.

In order to implement this type of changes in the as-is simu-lation model, we modify the properties of the entities that areprocessed through the simulation model. This means we modifythe values in the labels of the work items such as product carrier(pallet or case) or RFID tagging (tagged or not tagged). Figure 9depicts these changes in the simulation model entities.

Research implications and conclusions

Drawing on theoretical constructs relevant to RFID implemen-tation and process redesign and on the knowledge gainedthrough three case studies, we have proposed a referenceframework of how to implement the RFID-enabled processredesign in a simulation tool.Moreover, this framework can beconsidered as a communication tool as it facilitates discussionand provokes a debate between domain experts and IS devel-opers. The domain experts are those that have a detailedknowledge of the processes, its inefficiencies and the RFID’spotential for improvement in each aspect of the system. On theother hand, the IS developers can understand what RFID can doand then design the supporting infrastructure and software.Together, they seek to develop an effective RFID-enabledprocess redesign: the new RFID-enabled processes that improveperformance and a technically feasible RFID infrastructure thatsupports the redesigned processes. Hence, the paper alsosupports the idea of using simulation for a collaborative designbetween processes and RFID system. Using simulation, boththe IS specialists and the domain experts can recognize thoseareas where business processes could be improved by theintroduction of the RFID system. This information cannot beobtained by the traditional IS modelling techniques as theycannot always predict the way the IS will behave in practice(Paul and Serrano, 2004).On the basis of the work of Butler et al (2000), we depict in

Figure 10 the iterative design of processes and RFID system.The domain experts suggest improvements by reviewing and

Figure 9 Mapping the RFID effects in the entities component.

Figure 8 An example of RFID effect of resources elimination.


simulating the as-is business processes. Then, by understandingany inefficiency, the RFID’s potential for improvement andtaking into account any RFID-related factors (such as tagginglevel), they develop alternative RFID-enabled process rede-signs. All these alternatives are then assessed by using experi-mental simulation to provide statistics on key performanceindicators. Simultaneously, the IS developers review the currentIS infrastructure and systems and suggest correspondingchanges needed to integrate with the RFID system. Then basedon the RFID-enabled process redesign chosen by the domainexperts, they determine the technical feasibility of the RFIDsystem to support the RFID-enabled processes. In case there is adiscrepancy between the RFID-enabled processes and thetechnical feasibility of the system, the domain experts repeattheir work and decide on a different RFID-enabled processredesign. As a result, the paper provides evidence of how to usesimulation as a valuable tool for coordinating the design ofprocesses and RFID system.To sum up, the main contributions of this paper are (1) to

extend the RFID literature by conceptualizing the ‘RFID-enabledprocess redesign’ and developing a framework regarding allpossible types of RFID effects when integrating within the supplychain processes, and (2) to support the idea of using simulation fora collaborative design between processes and RFID system.However, the work presented in this paper is a preliminary

effort regarding the formalization of the RFID impact by(analytically) generalizing the results. More specifically, to testthe applicability of such a reference framework, we applied it tothe four warehouse processes of receiving, storage, picking andshipping. However, we argue that the framework is thought tohave a wide applicability across various supply chain processesand not only within the warehouse ones. Further work is neededto confirm such proposition by using the reference frameworkas a basis for developing more simulation models and depictingthe impact of RFID on other supply chain processes. As a result,the potential strengths or weaknesses of the framework will bedemonstrated so that it can also be improved.

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Received 13 July 2010;accepted 3 September 2013 after one revision


A framework for mapping the RFID-enabled process redesign in a simulation model

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