PROPOSAL FOR INSTALATION OF A

RADIO FREQUENCY IDENTIFICATION ASSET TRACKING

SYSTEM

SERVICE PROVIDER: BOGMAS VENTURES.

CLIENT: APA INSURANCE LTD.

MARCH, 2022.

© Copyright- BOGMAS VENTURES

BACKGROUND

Companies or business establishments that offer services or sell products to clients or customer
most certainly have to invest in a number of assets for them to effectively render their services.
These assets could be tangible or intangible; tangible assets refer to assets that have a physical
presence and examples include machinery, equipment, furniture, stock, tools etc. Upon investment
on these assets there is a need for the business to keep track of its property in order to reduce theft
or losses.

APA Insurance is a business establishment that offers a wide range of services to clients across East
Africa including but not limited to Insurance covers for Health and life, General risk motor insurance,
agriculture insurance, retirement benefits, Conference facilities and training rooms among others. In
order to serve its clients effectively, it has invested in many assets which may include, IT equipment
like Computers, Printers, servers, Networking equipment, Electrical Equipment like generators,
Televisions, Desk Phones, water dispensers, Furniture like cabinets, Desks and seats, vehicles among
many others.

These assets need to be tracked and maintained in order to eliminate the cost of replacing them
constantly due to theft, damage due to lack of timed maintenance and misplacement.

INTRODUCTION

Modern innovation and technology have led to quite a few advancements that enable businesses
maintain track of their assets and consecutively keep their productivity on an upward trajectory.
RFID tracking is a technology that many businesses have embraced in asset maintenance and
tracking due to its accuracy and simplicity.

RFID-Radio Frequency Identification asset tracking is a way of automating the management and
locating process of physical assets. It works by loading an RFID tag with data and attaching it to a
relevant asset e.g., a computer or printer. This data can include anything from name, condition,

amount, and location. Through an RFID tag’s repeatedly pulsating radio waves, an RFID reader is
able to capture the stored data. Eventually collecting it in a sophisticated asset tracking system
where the data can be monitored and actioned.

The ability to automate your tracking and monitoring processes aims to put an end to the highly
error-prone methods of pen-and-paper and excel spreadsheets.
PROBLEM STATEMENT

In every Company or organisation, it is extremely important to keep track of all your assets, inability
to manage your assets effectively could lead to huge losses and redundant costs of replacing
equipment every now and then. Keeping proper records of your assets helps to avoid problems such
as; Overproduction, Being out of stock, Late Maintenance of equipment, event failure due to
unavailability of certain assets among many others. All these problems affect the organisation’s
productivity directly and could be a huge blow to the growth of the company over time. Failure to
use Effective tracking methods leaves gaps and loopholes in your asset management system, leading
to losses which gradually accumulate and lead to low productivity.

PROPOSED SOLUTION

This study proposes a new RFID tracking system with the following new features;

i. It shall be web-based and accessible using a fixed public IP.

ii. It shall inherit existing features of Current system that are still being utilized and relevant.
iii. In will contain database of all items with their latest known location, lifespan stage and
movement history.

SYSTEM AIM

The complete system shall be able to accurately keep track of every asset within the business
premises

SYSTEM OBJECTIVE

 Capture location, condition, and value of every asset on RFID tags.

 Transmit the information to a centralized RFID reader.
 Store this information on a computer database where the user can be able to view it.
 It shall be web-based and accessible using a fixed public IP, hosted inside E-gas network.
 It shall inherit existing features of Current system that are still being utilized and relevant.
 It will exchange data with other systems in use using the existing method of reading/writing
text files.
 In will contain database of all assets with their serial numbers, latest known location,
lifespan stage and movement history.
EXISTING SYSTEM

The existing system is a barcode tracking system which utilizes barcode labels affixed to objects or
assets within the premises, a handheld barcode scanner is used to read the information contained in
the barcode label and then the information is decoded and stored in a computer database.

Advantages of a barcode tracking system

1. Cheaper as it requires less hardware.

2. Easy to install.
3. Better than the traditional method of pen and paper as it reduces human errors.
4. Requires minimal training.

Weaknesses of a barcode tracking system

1. Holds a limited amount of information compared to the RFID system.

2. Cumbersome as one has to scan each object at a time.
3. Prone to error as one might forget to scan some of the assets.
4. Objects must be within line of sight.
5. It is less secure compare to RFID which can be easily forged
6. It is susceptible to environmental damage.
7. scratched or crumpled barcodes may cause problems while scanning.
RFID TAGGING

Initially the data or information about the relevant object will be written and stored on the RFID tag
using a computer an Arduino board or a raspberry pi, then all tangible assets or items within the APA
business premises will have an RFID tag attached to them permanently, RFID tags are powered by
the radio frequency energy transmitted from RFID readers. The signal sent by the reader and
antenna is used to power on the tag and reflect the energy back to the reader. This enables the tag
to be attached permanently on an object using epoxy without need for hard wiring for power supply.

RFID Stock Take

Using the new system, a complete stock take can be undertaken as follows:

• THE RFID reader send data of all active RFID tags to the database from which a user can be able to
see the list of all available items in a particular location (e.g., the warehouse or customer's site)
according to the latest record.

Each item shall have the following attributes;

i. Serial Number
ii. Item name.
iii. Last known location.
iv. Maintenance schedule
v. Purchase date
vi. Last stock-take with time stamp.

• The detected RFID tags are knocked off from the list.

• The user can view all the items remaining on the list that are not detected yet and try to locate

them to include them in the stock take session.

After scanning is completed, the user saves the stock take session:

• The list of detected items is transmitted back into the server and saved.

• Those that are not detected are deemed "lost" in the database.
• items detected in new location shall have their locations adjusted to the latest correct location.

Advantages of the proposed RFID asset tracking system

1. Real-time the RFID tags will remain active at all times and thus an asset audit can be
undertaken at any time.
2. The RFID reader can scan locations of multiple tags at a time as opposed to the barcode
system.
3. RFID tags are able to store more data about an item than a barcode system.
4. The system can hold important data such as maintenance schedules which ensures timed
replacement or maintenance operations to be carried out.
5. The system can be integrated with other systems such as alarms to alert the user when a tag
becomes unresponsive signaling theft.
6. Saving time and money through automation as they remove the need for manual form filling

and replace outdated spreadsheets.

7. Improving data accuracy and availability as RFID also avoids transcription errors, duplication
of data and “missed items” when used to collect data on large numbers of items
simultaneously.
8. Use of cloud-based systems allows everyone in the organization to see up-to-date data on
the whereabouts or status of items.
9. Even if the reader breaks down or is vandalized, the last recorded data about all items will
still be available.

Weaknesses of proposed system

1. Cost – RFID readers are more expensive than barcode readers.

2. Materials like metal & liquid can impact signal.
 Infrastructure & Hardware Requirements:

• Server with Windows Server 2016 and above (with IIS)

• Permanent internet connection with fixed public IP
• System is web-based and accessible by another laptop/desktop using a browser.
• RFID Tags smart labels that can store a range of information regarding the asset on which they
have been attached to.
• RFID antennae Propagates waves carrying information about corresponding assets
• An RFID Reader transmits signals that activate the tag. Once activated, the tag sends a wave
back to the antenna, where it is decoded into data.
Tagging of New Items

Item is bought

RFID tag is affixed to

item using epoxy

Scan and register tag

to system for the first
time

Item data is added to tag

and tag is now
operational
System operation Block diagram

Tag propagates radio signal

Reader decodes signals and

send data to cloud based
database for storage

User can access data from

any computer within
organization
WORK PLAN AND BUDGET

Work Plan

New system Proposed Work Plan;

Development Period

1 Analysis

2 Design

3 Construction

4 Testing

5 Documentation

Budget

New system tracking system Proposed Budget

Component KSh.

1 Analysis

2 Design

3 Construction

4 Testing

5 Commissioning

TOTAL