Magellan Technology Tracks Orthopaedic Implants

Sydney, Australia – Tuesday, July 31st, 2007 Magellan Technology Pty Ltd, the global provider of advanced read and write HF RFID systems announced the successful rollout of its solution for tracking orthopaedic implants at Zimmer. Zimmer, a world-leader in orthopaedic surgical products, has installed Magellan RFID readers 

throughout its operations in New Zealand, Australia, Japan and Thailand. The orthopaedic giant chose  Magellan because of the superior functionality, speed and reliability of Magellan’s PJM technology. 

Accuracy is key 

Individual orthopaedic implants form part of a kit supplied to hospitals and operating theatres. Zimmer’s medical devices are both intrinsically valuable and are critical to successful operations. Zimmer requires 100% picking accuracy as this is a vital and mandatory process in preparing kits for operating theatres. The kitting process is carried out with 100% accuracy, thereby ensuring that all items are easily visible to facilitate pre dispatch and receipt quality checks. Typically there is insufficient time to individually barcode scan the numerous items within a kit. 

Many orthopaedic kits are returned with as little as 3 percent being used. With a return rate of 97% many hunred thousands of orthopaedic kits are returned for refurbishment and replenishment each year. Returned kits and items are no longer in the same carefully prepared order as when the kit was first dispatched from the Zimmer and this previously caused lost time and additional costs in sorting and
refurbishing returned kits prior to the kits being placed back into stock. As a result, the cost levels of the supply chain and in particular of the manufacturer inventory increased significantly. These costs were sufficient reason for Zimmer to consider RFID item tagging of its orthopaedic implants. 

Zimmer’s requirements were however very high: Zimmer wanted bullet proof reliability and accuracy, identification at extremely high speed, identification in three dimensions and hands-free automation.

Only Magellan met the requirement 

Zimmer studied the RFID market intensively, tested various solutions and became very familiar with numerous RFID products. Only Magellan’s PJM (Phase Jitter Modulation) StackTag® technology met all of Zimmer’s expectations. 

Unlike other RFID tags, PJM RFID tags continue to work even when in direct contact or touching, This feature together with PJM’s other functionality provides reliable and robust accuracy for returned goods where items are returned with little care. The PJM StackTag® technology is very robust and works reliably in these situations, especially in combination with Magellan's powerful stand alone tunnel readers, which identify, read and write to thousands of tagged items in all orientations even when they are tightly stacked. PJM RFID also provides the world’s fastest RFID air interface protocol meaning that process speeds can be maximized at all process locations, whether reading or encoding a tag identification number or additional data. An entire kit of orthopaedic devices can be identified with each item being read individually in split seconds, this is appreciably quicker and more accurate than any other RFID system.

Zimmer reported that they have not recorded a single orthopaedic implant error since introducing PJM RFID on all their orthopaedic items. Closed and sealed boxes containing the kitted items have all their items identified and verified against the kit list. Inventory record accuracy has improved particularly due to the fact that missing items from returned kits can be identified extremely quickly, dramatically increasing
the chances of their recovery and safe return to stock as a consequence. 

“Magellan’s technology has significantly improved the reliability, accuracy and speed of our processes,” said Michael Schaffler from Zimmer. "After a fast rollout and a few months of operations we are already experiencing more than 4 percent savings in inventory due to faster inventory turns."

"We are very satisfied to hear that after a tough selection process our solution is living up to the high expectations", said Bodo Ischebeck, Chief Executive Officer of Magellan Technology. "This implementation at the world-leaders operations will set the measure for any similar solution in the medical and pharmaceutical fields in the near future."

About Magellan Technology
Magellan Technology Pty Ltd, Sydney, Australia, is a technology developer, manufacturer and licensor of advanced read and write 13.56 MHz RFID systems. Magellan designs and offers RFID chips, inlets and a complete reader portfolio for Magellan’s Phase Jitter Modulation (PJM) technology, which complies with the International Standard ISO/IEC 18000 Part 3 Mode 2. The PJM technology is more than 10 times faster than other existing HF technologies. Our PJM StackTag® is unique in its capability to identify, read and write RFID tags even when they are deeply stacked together. PJM products are optimized for applications where many hundreds of tags are stacked tightly or need to be identified reliably in fast moving dynamic situations, where tags are presented in all orientations. Magellan licenses its PJM
technology world wide and welcomes enquiries from interested parties including other manufacturers and system integrators. Further information is available at www.magellan-rfid.com

About Zimmer
Founded in 1927 and headquartered in Warsaw, Indiana, Zimmer is the worldwide #1 pure-play orthopaedic leader in designing, developing, manufacturing and marketing reconstructive and spinal implants, trauma and related orthopaedic surgical products. Zimmer has operations in more than 24 countries around the world and sells products in more than 100 countries. Zimmer’s 2006 sales were approximately $3.5 billion. The company is supported by the efforts of nearly 7,000 employees worldwide. Further information is available at www.zimmer.com