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Latest Developments in Policies on Latest Developments in Policies on RFID Tags RFID Tags January 2006 January 2006 Information Economy Division Information Economy Division , , Ministry of Economy, Trade and Industry Ministry of Economy, Trade and Industry METI METI

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  • 1. 0 METI Latest Developments in Policies on RFID Tags January 2006 Information Economy Division, Ministry of Economy, Trade and Industry

2. Issues Confronting Business in Japan1 Diversification of Business Restructuring Customer Needsdue to Selection & Concentration Intensification ofEmphasis on theCompetition due to the Environment, SafetyRise of Businesses in & Security, etc. AsiaEnhancedReduced CostsCustomerService Creation of aStrengthening ofDevelopment ofNew BusinessEnvironmental New Markets Model Protection & CSRA key issue is the realization of a new coordination between businesses based onadvances in IT 3. What are the Potentials for RFID Tags?2 Japans IT investment is low - at only one quarter the level of the U.S. [Current IT investments lean too heavily toward the optimization of within divisions of a Situation] businessEstablishment of an IT system that transcends businesses and industries islagging Explosive expansion of RFID tags! By utilizing RFID tags, there is potential to build an information system that transcends divisions, By utilizing RFID tags, there is potential to build an information system that transcends divisions, businesses and industries, which covers the whole gamut from upstream, to downstream and extends businesses and industries, which covers the whole gamut from upstream, to downstream and extends as far as recycling. as far as recycling. Total optimization of information, which had been managed with piecemeal barcodes at the various stages of parts manufacturer, manufacturer, wholesaler, and Total optimization of information, which had been managed with piecemeal barcodes at the various stages of parts manufacturer, manufacturer, wholesaler, and retailer.retailer. They have the potential to bring about revolutionary efficiencies in distribution in the individual They have the potential to bring about revolutionary efficiencies in distribution in the individual aspects of all user industries, such as production, distribution, selling, inventory management, and aspects of all user industries, such as production, distribution, selling, inventory management, and waste management, etc. They also have the potential to be a driving force in giving rise to new waste management, etc. They also have the potential to be a driving force in giving rise to new services, and to enhance international competitiveness for all industries in Japan. services, and to enhance international competitiveness for all industries in Japan. Revolutionary efficiencies in distribution by means of SCM; The creation of new industries in a wide range of fields including medicine, food, and education by means Revolutionary efficiencies in distribution by means of SCM; The creation of new industries in a wide range of fields including medicine, food, and education by means of traceability.of traceability. Furthermore, with the utilization of RFID tags, there is the potential to further improve IT investment Furthermore, with the utilization of RFID tags, there is the potential to further improve IT investment especially in user industries; and through this, the potential to overcome problems related to IT especially in user industries; and through this, the potential to overcome problems related to IT investment in Japan. investment in Japan. Facilitation of IT investment that leads directly to strengthened industrial competitiveness. Facilitation of IT investment that leads directly to strengthened industrial competitiveness. 4. What are RFID Tags? 3 What are RFID tags? A reader (reader/writer) generates a radio wave or a magnetic field, which induces a weak operating power in the RFID tag (IC tag), and which then reads the signal from (or writes to) the tag. There is a limit to conventional IT (barcodes) meeting the increasing demands for product tracking (traceability) and efficient inventory management (supply chain management). There are great expectations for RFID tags. Features of RFID tags (compared to barcodes)(6) Able to read large (1) Information(3) Able to read(4) Able to read(5) Able to read(2) Able to writeamounts of information at capacity is largeunsighted from afar while moving onceone-two- < Example of an RFID tag>CapacityCapacity: unlimited Capacity up to about 60 characters up to about 4,000 characters Chip Antenna microminiaturizedchip component ofan RFID tag3x5cm RFID tags 5. Expansion of RFID Tags will Contribute to Strengthened Competition between 4User Companies Aim to strengthen competition in user industries By effectively using RFID tags, it is hoped that Japans user industries will become more efficient, and that this will generate new services, which will in turn sustain and enhance the international competitiveness of Japans user industries. Target open sectors that cover multiple businesses At present, the areas in which RFID tags are being used practically, and in which their use is expanding, are closed sectors where they are reused within a particular business. Conversely, they are not being used practically in open sectors, which span across companies, where they can be traded in a disposable fashion.The key is the expansion of RFID tags in areas of business-to-business transactions International Price ReductionStandardization Japan is a trading nation, and so ourMost users responded that they would introducestandards must be the internationalRFID tags if the unit price was 5 yen. (currentlystandards. several ten to several hundred yen) 6. Closed Sectors in which the Practical Application of RFID Tags is Advancing 5Distribution centers (more efficient sorting)Revolving sushi restaurants (more efficient billing) University hospitalsClothing stores (reduced stocktaking times) Libraries (automated lending) (medical records location management) In addition to the above, RFID tags have long been utilized in many factories in the field of factory automation. 7. Japans Strategies: Part 1 Standardization6 Basic understanding of standardizationIt is essential that Japans standards beinternational standards In view of the current situation where Japan has adopted an open economic structure, and where many Japanese businesses trade internationally, then our standards for RFID tags must be international standards. Two important types of standardization Technical standards Product codes(Communication protocols) 8. What are product codes? -- examples of barcodes -- 7 In the realm of barcodes, there were individual standards for each type of industry JAN (EAN) CodeMain applications ITF (Standard Distribution Code) Main applications Food,Distribution sectorGeneral merchandiseVCR programming POS managementFeatures FeaturesPopular worldwide Digits only (0-9) Digits only (0-9) 8-digit and 13-digit types CODE39Main applications NW-7 Main applicationsUsed on labels for Factory automation home delivery services Used in industryUsed in librariesUsed on envelopes for developed photos FeaturesFeatures U.S. military standard Possible to have numericDigits + some symbolsand alphabetic characters A unified standard is needed for RFID tags that can be used across industries 9. Standardization of product codes for RFID tagging 8 Japan proposed the unification of product codes for RFID tagging to the ISO The Study Group for Enhancing Product Traceability (established within the Ministryof Economy, Trade and Industry; cooperation by the Ministry of Land, Infrastructure and Transport, theMinistry of Agriculture, Forestry and Fisheries, and the Ministry of Health, Labour and Welfare)formulated the following proposal for the unification of coding systems, andsubmitted the proposal to the ISO (May 2003). It is hoped that ISO standardization will be finalized in FY 2005. ISO15459-4 Issuing Agency Code (IAC) Company Identification Number (CIN) Item CodeSerial Number (JAN, CII, Duns, etc.) (Company A, Brand B, etc.) (Managed by (Managed by Ex.: Toyota, Kao...individual businesses)individual businesses) Ex.: Prius, Merit Shampoo Ex.: Vehicle Identification Number, Sharing of identifiersLot Number The data length of the respective codes is not fixed, and common identifiers are inserted as required. The identifiers used are those standardized as ISO15418, which are already broadly shared internationally. Issuing Agency Code (IAC) Utilizes the IAC Code (ISO15459), which has been standardized by the ISO. Example: JAN45 or 49; CII LA; D-U-N-SUN 10. Standardization of Technical Standards (Communication Protocols)9 Background Background In order for RFID tags used in business-to-business transactions to become readable among different manufacturers, a minimum requisite standardization of communication protocols is necessary. However, communication protocols for the UHF-band RFID tags, which are the leading international standard for RFID tags used in business-to-business transactions, have been the subject of independent reviews by the internationally influential EPC Global and ISO. Two standardsTwo standardsUHF bandFrequency band 13.56MHz 433MHz 2.4GHz (800/900MHz) CommunicationISO/IEC18000-6 ISO/IEC18000- ISO/IEC18000-3ISO/IEC18000-7 ISO/IEC18000-4protocols standardsEPC Global standard Unifying these two standards was the biggest challenge.EPC Global: A nonprofit organization (NPO) for the standardization of RFID tags, jointly established by theinternational barcode standards bodies: EAN International (European Article Numberingand theU.S. UCC (Uniform Code Council).In Japan, the Distribution Systems Research Institute was established as EPC Global Japansonly point of contact. 11. Unification of International Communication Protocols Standards for UHF-band RFID tags 10 Background behind the achievement of uniform communication protocols Background behind the achievement of uniform communication protocolsUp to 2004EPC GlobalISOIndependent Reviews (user confusion)The Ministry of Economy, Trade and Industry and user industries worldwide have pushed strongly for unificationSubmitted standards to the ISO onISO deliberation commenced January 11, 2005 on January 24, 2005In 2005 EPC GlobalISO/IEC18000-6Next-generation protocols (resolved June 28) and beyond Toward unified international standards for RFID tags for business-to-business transactions (Plans to become ISO/IEC18000-6 type C) 12. Targets for International Standardization 11 Gain an understanding of international standards for RFID, by classifying them into three levels as below classifying Mutual cooperation for the standardization of technical specifications, coding systems, and fields of applicationspecifications, Level 3: Standardization of common application specifications for each type of item to be tagged, and standardization of operations and other fields of application. DatabaseSC /WG /SG ISO standards for each standard model of SCM that uses RFID, and standards ISO/IEC/JTC / that impact on all industries in Japan31 ISO 17363~17367SCM Applications of RFID Freight containers, Returnable transport items, 4 Transport units, Product packaging, Product tagging) Internet ISO 18185 Electronic Seals for Freight Containers 1ISO 24729 Guidelines for RFID Implementation 5 In principle, the specifications from Level 1 are applied for the technical specifications of the RFID to be used.ISO/IEC/JTC Level 2: Standardization of description methods (syntax) for the structure of data to beSC /WGwritten into tags, and for identifiers, coding systems, etc. 31 ISO 15963 Unique ID for RF Tags Identification codes ISO 15459 - 1~4 System of Unique Item Identification Codesfor merchandise ISO 15434 Data Description Methods (syntax) proposed by Japan 2 1 /SC /WG /SG ReaderLevel 1: Standardization of hardware/software technical specifications of actual RFID. ISO/IEC/JTC /Standardization of communication between RFID and readers/writers 31 ISO 18000 - 1~7Air Interface ISO 15961, 15962 Data Protocol (system of tag-R/W and R/W-host commands)4 IC TagISO 19789Application Programming Interface TR 18046, 18047RFID Performance Test Methods & Conformance Test Methods13 13. Japans Strategies: Part 2 Price Reduction = Hibiki Project (1)12 (1) Development Goals (1) Development Goals To reduce the price of RFID tags to 5 yen (currently several ten to several hundred yen). To build a system of stable supply to meet the domestic and international demand of RFID tags that comply with international standards. The deadline for development is the end of July 2006, and release to the market is planned 2006for before the end of 2006. (2) Target for Development (2) Target for Development Development of a 5-yen inlet (integrating an IC chip and antenna) and an IC chip for reader/writersTag IC ChipInletReader/Writer IC Chip (3) Development Details (3) Development Details Development of technology for manufacturing low-cost antennas Development of low-cost mounting technology Miniaturization of international standard UHF-band IC chips 14. Hibiki Project (2) 13(4) Specifications (4) Specifications[Basic Specifications](1) Memory capacity: at least 512 bits(2) Rewritable(3) Reading speed: 10ms/unique ID or faster(4) Minimum read distance: 3m, Minimum write distance: 1m Note: The above specifications are subject to change according to the progress of the enactment of international standards and to changes to the Japanese legislation on radio waves.[Scalability for More Advanced Functions] Additional AdditionalMore advanced functionsLarge Memory Sensor On-Metal SecurityFunctionsCapacity Hibiki Project RFID Tags (Inlet) = 5 yen Base (Development Target) 15. Hibiki Project (3)14 (5) Development Framework (5) Development Framework In order to achieve the price target of 5 yen, responsibilities needed to be clearly defined. To this end, a Technology Development Core Team was formed, comprised of a Core Company to assume all responsibility related to development and Cooperation Companies to support that development.development Public applications were invited for the Core Company, and Hitachi was selected. Currently, the Cooperation Companies consist of four companies: NEC, Dai Nippon Printing, Toppan Printing, and Fujitsu. Assumes responsibility for theAssumes responsibility for the development of technology fordevelopment of technology forHibiki Development Core Team IC chips, antennas, inlets, andIC chips, antennas, inlets, and Consignment reader/writer IC chipsreader/writer IC chipsMinistry of Economy,Contract Trade and Industry Core Company Cooperates mutually with theCooperates mutually with the Core Company, and supportsCore Company, and supports Cooperation Cooperation Cooperation Cooperation the development of the CoreCompany Company Company Company the development of the Core CompanyCompany 16. 15 Current Status of the Hibiki Project Hibiki ProjectAugust 2, 2005 December 20052006 - First-stage prototype completedSecond-stage prototype completedUsed and evaluated in field trialsIC Chip Antenna2004 2005 20067 8 9 10 1112 1234 567 8 9 1011 12123 4 5 6 7 8 9 10 11 12 IC 1 2 3 IC 1 IC 17. 16 World Movements World Trends in the Implementation of RFID Tags World Trends in the Implementation of RFID Tags RankCountry CompanyIntended Implementation of RFID TagsSales* Standards Adopted for RFID TagsRequires that RFID tags be attached:UHF band 1stU.S. WalMart by the top 100 delivery companies by Jan 2005229.6Code: GTIN (EPC)by the top 300 delivery companies by Jan 2006UHF band (case/pallet)Recommends that RFID tags be attached: 5thGermanyMetroby the top 100 delivery companies by Nov 2004 48.313.56MHz Band (product)Code: GTIN (EPC) Requires that RFID tags be attached:UHF band 6thU.S. Target by major delivery companies by spring 200542.7Code: GTIN (EPC)by all delivery companies by spring 2007 Began attaching tags to cases of some productsUHF band (casepallet) 8thU.K. Tescoin Sep 2004 40.113.56MHz Band (product)Will attach tags to cases of all products from 2006 Code: GTIN (EPC)Recommends that RFID tags be attached: 11th U.S. Albertsons by the top 100 delivery companies by Apr 2005 35.6Code: GTIN (EPC)Department ofRequires that RFID tags be attached: -U.S. Defenseby all delivery companies by Jan 2005Code: GTIN (EPC) Other companies have also steadily implemented RFID tags (GTIN: EPC), including: Carrefour, France (2nd: 65.0); Home Depot, U.S. (3rd, 58.2); Ahold, the Netherlands (7th, 40.8) * 2002 retail divisions. USD billion 18. Environmental Improvements, Designed for the Expanded Use of RFID Tags 17 Improvements to the environment are important for the expanded use of RFID tags. In addition to an Assessment of Conditions Overseas, Standardization, and Price Reduction, this includes: (1) A system of UHF band frequencies (2) Creation of rules for the treatment of privacy issues. For this purpose, (3) Field trials will be promoted for each industry and for each application.Environmental improvements, designed for the expanded use of RFID tags Frequencies PrivacyPromotion of Field Trials 19. Trend of Frequencies for RFID Tags18There are strong expectations in industry for the opening up of the UHF band (800/900MHz band). Itcarries a long way, is easy to use at distribution sites because it circulates and permeates well, is beingused in the Europe and the U.S., and is predicted to become the international standard of the future.High Frequency (HF) Ultra High Frequency (UHF)Microwaves Frequency band13.56MHz433MHz800/900MHz2.4GHz International ISO 18000-6ISO 18000-3ISO 18000-7ISO 18000-4technical standards EPC Global UHFGen2 Radio wave type Electromagnetic induction type (Information is transmitted by being carried on radio waves; Method of (Information is transmittedThe information can travel far.) communicationby changing the magnetic field; The information cannot travel very far.) with batterywithout battery IC cards (Suica, etc.) Container Products Products Merchandise Main applicationsmanagement Cargo Shoplifting preventionup to several dozen Read distance up to 1mmetersup to 8mUp to 2mU.S. Regulated use of radio Europe waves(Proposed 865~868)Japan In April 2005, the Ministry of Internal Affairs and Communications revised the ministerialordinance on the high-power 800/900MHz band.Institutionalization of the low-power 800/900MHz and 433MHz bands is predicted for the future. 20. 19Treatment of Privacy Issues (1) RFID tags are able to have information contained within them read remotely. Therefore, if items are delivered to consumers with RFID tags still attached, the following kinds of concerns are likely in the future.(1) Information contained within an item owned by a consumer can be involuntarily read without theconsumer realizing.(2) If personal information is recorded on the RFID tags, that information can be involuntarily readwithout the consumer realizing.For example, the following concern is envisaged for the future... ReaderAnne of Anne ofGreen GablesGreen GablesThe title of the book is recorded on the RFID tag. There is a concern that someone nearby could read the title of the book, which is in a persons bag, without them realizing. To this end, in order that measures not end up playing catch-up, the then Ministry of Public Management, Home Affairs, Posts and Telecommunications (currently the Ministry of Internal Affairs and Communications), and the Ministry of Economy, Trade and Industry consorted to gather the basic concepts so far as consensus was reached by the relevant parties at the present stage. On June 8, 2004, they formulated and publicly released those guidelines. Furthermore, in order that the guidelines conform internationally, they are pushing forward with adjustments in line with ISO and other standards. 21. Treatment of Privacy Issues (2)20Overview of the Guidelines to Protect Privacy on RFID Tags, formulated through the cooperation of METI* and MPHPT* * METI: Ministry of Economy, Trade and Industry. * MPHPT: Ministry of Public Management, Home Affairs, Posts and Telecommunications (currently the Ministry of Internal Affairs and Communications) (1) Items targeted by the GuidelinesBusinesses that use RFID tags.Instances where RFID tags remain attached to items even after being handed over to consumers.(2) Obligation to indicate the fact that RFID tags are attachedThe fact that an RFID tag is attached, the location where it is attached, and the details of the information recorded need to provided toconsumers by means of an explanation or notice, or an indication displayed on the merchandise/packaging.(3) Consumers reserve the ultimate right of choice regarding the reading of RFID tagsThe method for making tags unreadable is to be disclosed to consumers in advance, in case they want to exercise that choice.(4) Restrictions in instances where personal information is recorded on RFID tagsIf personal information recorded on RFID tags is to be handled, then, regardless of the amount of that personal information, thefollowing matters regarding such personal information recorded on the RFID tags should be protected:(1) Notification to the person and public announcement regarding the intended use of the information; (2) Consent from the person ininstances where the information is to be used for other purposes; (3) Assurance of the accuracy and currency of the personalinformation; (4) Disclosure and revision of the information at the request of the consumer; and (5) Prevention of the loss, damage,alteration, or leakage of the recorded information.(5) Establishment of an information manager(6) Provision of explanations and information to consumersGovernment and relevant organizations, such as traders associations, should ensure that they help consumers understand, byproviding information related to the intended use of the RFID tags, their quality, and their merits and demerits, etc. 22. 21 Promotion of Industry Field TrialsConduct field trials in several user industries, which envisage the practical application of RFID tags. Concurrently examine improvements to the supply chain for each industry. In FY 2003, conducted field On December 4, 2003, Japans first license acquired for UHF-band RFID tags (within shield rooms).trials From March 9, 2004, Japans first field trial commenced in actual factories, distribution warehouses, and stores.in 4 industries Included tests for comparing UHF band with other frequencies (13.56MHz, 2.4GHz). IndustryField Trial Principal Trial Location & Target MerchandiseResults Participants Home Association for[Store] DEO DEO Head Office & Itsukaichi Store (Hiroshima)(Shield room) [Distribution Warehouse] Matsushita Logistics, Hiroshima Merchandise Center Appliances Electric Home(Hiroshima) Dec 2003 - Feb 2004Appliances Sanyo Electric Logistics, Fukuoka Logistics Center (Fukuoka) Sony Supply Chain Solutions, Odaiba Operation Center (Tokyo) [Factory] Sharp (LCD TV) (Nara) (Open air) Daikin Industries (Room air-conditioners) (Shiga) Sony (Notebook computers) (Nagano)Mar - May 2004 Mitsubishi Electric (refrigerators) (Shizuoka) Matsushita Electric Industrial (Plasma TV) (Kanagawa) Matsushita Electric Works (Inverter lights) (Osaka) Sanyo Electric (Digital cameras) (Hyogo) Toshiba Home Appliance Products (Washing machines) (Aichi) Hitachi (LCD projectors) (Kanagawa) Pioneer (DVD players) (Saitama)[Store] Mitsukoshi Head Office & Isetan Shinjuku Store (Tokyo)(Open air)Apparel Japan Apparel[Distribution Warehouse] Onward Kashiyama, Atsugi Distribution CenterIndustry Council (Kanagawa)Mar - May 2004 Sanyo Shokai, Shiomi Distribution Center (Tokyo) [Factory] Yasuda Sewing, Aomori Factory (Aomori) Utsushikawa Sewing, Asuka Factory (Yamagata) Japan Publishing [Store] Sanseido, Jiyujikan Store (Tokyo) (Open air) Publishing[Distribution Warehouse] Showa Tosho, Koshigaya Distribution CenterOrganization for InformationInfrastructure Development (Koshigaya-shi, Saitama)Mar - May 2004FoodStudy Group for the[Store] Maruetsu, Shiomi Store (Tokyo)(Open air)Enhancement of Food[Distribution Warehouse] Ryoshoku, Shiraoka Distribution Center (Saitama) DistributionYukijirushi Access, Takasaki Fresh Food MD Center (Gunma) Mar 2004Distribution 23. Promotion of Industry Field Trials (2) FY 2003 Field Trial Conditions22(1) Shield room experiment(1) Shield room experiment Conducted experiments in a shield room to collect basic data from tags made by four manufacturers of UHF-band RFID tags. Measured the read distances of U.S. 915MHz-band RFID tags using a reader/writer converted for the 950MHz band for Japan.[Manufacturers participating in the trial] Japan RF Solutions (Intermec) Nihon Information Systems Toray International (Alien) Mighty Card (Matrix) [Views of the experiment] 24. Promotion of Industry Field Trials (3) FY 2003 Field Trial Conditions23(2) Trials in the home appliances industry(2) Trials in the home appliances industry Conducted experiments in actual warehouses and stores to measure the accuracy of readings of RFID tags attached to home appliances. Warehouse experimentStore experimentStocktakingAntennaBulk goods inspectionusing a forkliftShoplifting Prevention Gate Gate fitted with antennasGate fitted withPallets loaded with TVantennasboxes are passed through(Antennas fitted atsix locations onboth sides) 25. Promotion of Industry Field Trials (4) FY 2003 Field Trial Conditions 24 (3) Trials in the publishing industry(3) Trials in the publishing industry Experiment at Sanseidos Jiyujikan Store (Kanda, Tokyo) Displays for store demonstration UHF-band RFID tagsaffixed in comics Antenna Bulk reading of comics arranged on shelves. 26. Promotion of Industry Field Trials (5) Results and Issues in the FY 2003 Field Trials 25 (1) Example of trial results(1) Example of trial results Verified the performance of the 950-956MHz-band reader/writer. Results from It was determined that even tags tuned into the U.S. 915MHz frequency are able to be read from a distance of 3-5the shield room meters, meaning an adequate performance is achievable. UHF-band RFID tags achieved outstanding performance, such as read distance,permeation, and reading systems.(Note that performance depended on the trial location.)Recognition rate for transit forkliftDetection rate for shoplifting prevention Recognition rate for products arranged Reference: Trial results in the home on shelvesAverage recognition rateWalk (4km/h)Jog (8km/h) RecognitionWhen boxes stackedResultsdetection rate detection raterate When tags attached to opposite sideappliances industryfromUHF band 98.9%10010099.1 the field trials2.4GHz 79.0%60 097.3 For UHF, transit speed* For UHF, gate width is 1.6m* Recognition rate is the average value is 36m/minFor 2.4GHz, gate width is 1.1m for arranging 45 small products on aFor 2.4GHz, shelf and measuring them 5 times transit speed is 7.5m/min(2) Issues(2) Issues License Restrictions Adequate performance was not achievable in cases where there were license conditions, suchas the windows at the trial location being sealed with aluminum sheets, or the output from thereader/writer dropping to less than one-tenth. 27. Promotion of Industry Field Trials (6) FY 2004 Field Trials26 In FY 2004, trials were expanded to further industries. 7 business fields were selected via public application.IndustryField Trial Principal Participants Trial OverviewConstruction machinery /Japan Construction Equipment Manufacturers Develop a supply chain system for construction and similar machinery, Industrial vehicles /Association, Japan Industrial Vehicles Association, from components factories to distribution agents; and verify its operating efficiency. Agricultural Japan Farm Machinery Manufacturer's Association In particular, aim for a zero-inventory business model, by ordering components in real time. machinery industries Japan Book Publishers Association, Japan Magazine Publishers Association, Develop a supply chain system, from bookbinding plants to distribution agents; Japan Publication Wholesalers Association, and verify its operating efficiency. Book-related industry Japan Booksellers Federation, Japan Library Association Aim to develop a mechanism for stolen books and other illegally distributed items,(Japan Publishing Organization for Information in order for secondhand bookstores to determine whether or not to make purchases. Infrastructure Development) Develop a supply chain system, from electronic components plants Home appliances industry /Association for Electric Home Appliances,to home appliance assembly plants, distribution warehouses and retailers;Electronics andJapan Electronics and Informationand verify its operating efficiency. electric instruments Technology Industries Association Be able to trace hazardous substances contained in components; industry and establish a business model designed for recycling efficiencies for home appliances. Develop a supply chain system, from pharmaceutical plants to hospitals; Pharmaceuticals Federation of Pharmaceuticaland verify its operating efficiency. industryManufacturers' Associations of Japan In particular, aim for a system structure where the traceability of biologic pharmaceutical products,as required under the Pharmaceutical Affairs Law, can be conducted efficiently. Develop a supply chain system, from apparel and shoe factories to wholesalers, Department storedepartment stores and specialty shops; and verify its operating efficiency. Japan Department Stores Association, industry / In particular, aim for a system structure that raises customer satisfaction Japan Apparel Industry Council Apparel industrywithout missing any sales opportunities on the sales floor, by making inventory managementat stores more efficient. Conduct verification related to the effectiveness of security measures for freight containers Logistics industryJapan Federation of Freight Industriesbetween the ports of Tokyo, Yokohama, Nagoya, Osaka and Kobe, and the ports of variousdistricts around the world, as well as verification of the efficiencies of port operations.Recording Industry Association of Japan, Develop a supply chain system, from CD and DVD press factories to distribution warehouses, Japan Video Software Association, Record industry /retailers and rental stores; and verify its operating efficiency. Record Trade Association of Japan, DVD & CD industry Compact Disc & Video Rental Commerce Aim to establish new marketing techniques in stores, Trade Association of Japan such as audio-visual systems coupled with RFID tags. 28. 27Results of the FY 2004 Field Trials Economy is the generation of added-value through the flows of information, goods and services. RFID tags are a technology that facilitate these flows, and which achieve optimization of the whole economy. Accordingly, the assessment of RFID tags, is that they possess the ability to extract the greatest value from economic and industrial activities. IndustryOutcomes of the Field Trials (compared with barcode operations)Construction machinery,Industrial vehicles, Reduced the equivalent of 2.7 billion yen in personnel costs, through savings of labor at delivery-Agricultural machinery industries receipts Book-related industry Home appliances industry, Electronics and electric Reduced inspection times by about 90%.instruments industry Pharmaceuticals industry Annual cost reduction effect worth 10 billion yen as a result of shortened stocktaking times and shortened inspection times at delivery receipt and dispatch.Department store industry, Sales increase of 10% as a result of a reduction in lost sales opportunities backedApparel industryby the swift provision of inventory information. From April 2005, some department stores to take up full-scale implementation of RFID tag systems. Annual cost reduction effect worth 20.5 billion yen in personnel costs,Logistics industrydue to savings of labor at goods inspection. Record industry, Reduced stocktaking times by three quarters.DVD & CD industry 29. Outcomes of FY 2004 Field Trials:28Construction Machinery, Industrial Vehicles, and Agricultural Machinery Industries Severe environment Background toMetal rich (irregular reflections of radio waves caused by metals); Vibration and noise levels Background tothe field trial (presence of power sources and motors)the field trial Various kinds of components and numerous suppliersNumber of components: Approx. 10,000; Number of major traders: 130 10 (in the case of Komatsu) IssuesIssues Whether RFID tags can be used in such a severe environmentto be verifiedto be verified Improve the efficiency and accuracy of production and delivery processes Field Trial Principal Participants: Japan Construction Equipment Manufacturers Association, Japan Industrial Vehicles Association, Japan FarmMachinery Manufacturer's AssociationCooperating Businesses: Mitsui Global Strategic Studies Institute, Nihon Unisys, Toppan Printing...Trial Period: Dec 2004 - Feb 2005Trial Location: Komatsu, Awazu Plant (Ishikawa); Hitachi Construction Machinery, Tsuchiura Plant (Ibaraki); Daikyo (Ishikawa)...Current situation After the application of RFID tags Develop and test RFID tags which giveDevelop and test RFID tags which give no less accurate readings even whenno less accurate readings even when Difficult adjustmentattached to metallic productsattached to metallic products Production in tune Production adjustmentswithChanges to plansChange of plansthe status of in view of the statusProduction adjustments(monthly, weekly)assemblyof production at at the equipmentEquipment assembly plant manufacturerthe suppliers Production adjustmentsSupplierSubcontracted suppliersSupplierImageEquipment assembly plant Production delay Accurate productionOptimum Production delay productionOverproduction Production delayInvestment in smoothOverproduction production line Surplus inventoryStock-out Smooth logistics Accurate inventoriesWasteful logistics 30. Reference: Image of the Trials in the Construction Machinery, Industrial Vehicles, 29 and Agricultural Machinery Industries Manage manufacturing processes by attaching RFID tags to components Introduce next-generation kanban (just-in-time) systems Overcome environments which have lots of metal and which easily trigger the irregular reflection of radio wavesKomatsu, Awazu PlantDaikyoAttachment of RFID tagsAttachment of RFID tagsEngine hood Processing and assembly information; Component Wheel loaderinventory informationSupply engine hood Delivery information; Assembly process information; Stock-out Floor frame informationDelivery of replacementcomponents, etc. 31. Outcomes of FY 2004 Field Trials:30Construction Machinery, Industrial Vehicles, and Agricultural Machinery Industries Field Trial Features & OutcomesField Trial Features & OutcomesI. More efficient production processes Annual reductions in personnel costs equivalent to approximately 2.7 billion yen, through the automation of operations related to receiving deliveries of components. Annual reductions in personnel costs equivalent to approximately 9 million yen, through the automation of operations related to assessing the progress of production. (10 major domestic manufacturers of construction machinery)II. Reading performance for RFID tags in real environments The reading performance of UHF-band RFID tags can sufficiently stand up to practical use. UHF- There is no radio noise, which could interfere with UHF-band RFID tags in factories, and they can be used without difficulty. UHF-difficulty. Even for 2.4GHz-band RFID tags, sufficient performance was achieved when it came to environmental resistance.2.4GHz-They are sufficiently functional in situations where they are not moving at a fast speed.not III. Improvements to the efficiency and accuracy of delivery operations Standardization of forms used in delivery is an issue, and a detailed examination was undertaken.detailed Much knowledge and information for the standardization of forms was attained from the examples of pilot activities conducted in deeply involved industries. Points and a structure were brought together for promoting the standardization of the format and data items for forms.standardization The relationship between the read time for RFID tags and the speed at which parts are moved, when there speed is a large amount of data: - Load RFID tags with only UID, and have other information acquired via a network, oracquiredFuture issuesFuture issuesLoad RFID tags with large amounts of information, and lower the speed at which tags are passed through the gate, etc. Coping strategies for when errors arise during reading. 32. Outcomes of FY 2004 Field Trials: Book-related Industries31 Increase in inspection operations when goods are received, as the number of published items also increases theBackground toBackground to (more than 70,000 new items are published each year). the field trial the field trial Shoplifting, the rampant return of fraudulent goods, and the circulation of stolen goodscirculation(annual cost of shoplifted books is 46.2 billion yen). Develop a system for attaching tags that can cope with approximately 70,000 new publications each year, approximately or 3 million books. IssuesIssues Assess the impact of RFID tags on the dissolution process of books on return (return rate 40%).booksto be verifiedto be verified Develop new services by interfacing with mobile phones (display overviews, etc.). Link with systems that manage collections at libraries. Prevent the purchase of stolen goods at secondhand bookstores.Field Trial Principal Participants: Japan Book Publishers Association, Japan Magazine Publishers Association, Japan Publication Wholesalers Association, Japan Booksellers Federation, Japan Library Association (Japan Publishing Organization for Information Infrastructure Development) Cooperating Businesses: NTT Communications... Trial Period: Jan - Mar, 2005 Trial Location: Kinokuniya, Shinjuku-minami Store (Tokyo); Sanseido Head Office (Tokyo)...Bookstore, Bookstore, SecondhandSecondhandPublisherPublisher AgencyAgency Reader Reader Library Library Bookstore BookstoreInspection of Inspection of Inspection of Orders placed Prevention of Usage applications fordelivered goods delivered goodsdelivered goodsat bookstores the purchasing ofInventory (collection)Inventory managementSorting by bookstoremanagement Acquisition of stolen goodsProcessing of Inspection of goods Management of sales informationRFID tags orders receivedfor deliveryand purchases informationat the bookstoreSophistication of marketingSophistication of Sorting by delivery routeUsing librariesinformation marketing information Inventory managementProcessing of orders placed ProcessingReturnsof orders receivedPrevention of shopliftingPrevention of unauthorized removals, and management of return dates 33. Reference: Characteristics of the Book-related Industry32 Logistical Characteristics No price competition (Resale price maintenance system) Returned goods system Fixed channels of distribution Merchandise-related Characteristics No repeat purchases of the same merchandise Large number of new products launched onto the market (limited production of diversified products) Easy to recycle/resale 34. Outcomes of FY 2004 Field Trials: Book-related Industries33 Field Trial Features & Outcomes Field Trial Features & OutcomesI. Technology for attaching RFID tags to books RFID tags were fixed to paper the size of postcards, and were incorporated into comic books in the actual automated book-binding line. The post-processing failure rate was less than 1%.II. Supply chain management in the publishing industry Compared to visual inspections and the inspection of goods using conventional barcodes, thetime taken for delivery receipt and dispatch operations was reduced by approximately 90%. Compared to checkouts using conventional barcodes, the time taken for checkout operations atagencies was reduced by approximately 90%. III. Effectiveness for library operations Compared to taking collection inventories using barcodes, the time taken for such operations was reduced by several dozen percent. Development of a technology for attaching tags which is best suited to mass production.- Need to develop an attaching technology feasible for mass production, which costs less thanFuture issuesFuture issues the postcard process. Reform of business processes to achieve management of individual items; andstandardization of product coding system- Under current business processes, management of individual items is limited to libraries, etc. 35. Outcomes of FY 2004 Field Trials: 34Home Appliances Industry, Electronics and Electric Instruments IndustryBackground to Background to Need for traceability throughout the life cycle, from manufacture to recycling.the field trialthe field trial Shift to a recycling-based society (reduce, recycle, reuse). Prevention of illegal dumping and black-market selling, by realizing aIssues to beIssues to betraceability system. verified verified More efficient manufacturing processes; more efficient inspection of goodswhen received and dispatched; labor savings at checkout operationsField Trial Principal Participants: Association for Electric Home Appliances, Japan Electronics and InformationTechnology Industries AssociationCooperating Businesses: Fuji Research Institute Corporation, Hitachi...Trial Period: Feb 2005Trial Location: Ks Denki, Shonan Hiratsuka Store; Denkodo, Hokkaido Iwa-Misawa Store... SetSet Assembly Assembly Store (generalStore (general StoreStore ComponentsComponentsStoreStoreCollection & Collection & Manufact Manufact ManufacturManufacturLogisticsLogistics merchandisingmerchandising(regular(regular Manufacturers Manufacturers(consumer) (consumer) RecyclingRecyclingurers urers ersersstores)stores) stores) stores) Usage applications for More efficient ReducedRealize a model for theSavings of labor, manufacturingprocessingbusiness-to-businessprevention of crime, Information Repair andRFID tags processestimes andPrevention ofexchange of quality and and improved service managementservicing Savings of savings of illegalenvironmental information at the inspection of that allows records, reuse labor during labor for thedumping andfor componentsdelivered goods, fine-tuned(secondhand the inspection inspection ofblack-marketRealize a model forinventorycustomergoods) of goods goodssellingmanaging productmanagement, andservice classification... received and received andinformation stocktaking dispatched dispatched 36. Reference: Image of the Trials in the Home Appliances and the Electronics35 & Electric Instruments Industries RFID tags were used in management, not just at the distribution stage, but also at the production stage in factories, at the consumer usage and maintenance service stage, and at the recycle and reuse stage. Through standardization and unification, worked towards the development of a common infrastructure that transcends industrial, merchandise and national borders. 37. Outcomes of FY 2004 Field Trials:36 Home Appliances Industry, Electronics and Electric Instruments IndustryField Trial Features & Outcomes Field Trial Features & OutcomesI. Examination of models to be used across the entire life cycle The merits for using and the issues in adopting, were summarized for each of the models used by home appliance manufacturers,distributors, stores, and consumers. These were used to create reference materials for adopting specific models.create II. Field trial in the forward supply chain for home appliance By using RFID tags, the time for inspecting home appliances was reduced to 38 seconds for individual readings,and 8 seconds for bulk readings. (50 irons: 10 irons x 5 boxes per package. Inspection involved confirming name of product model, boxes model,JAN code and serial number.)This compares to 8 minutes and 38 seconds for the conventional visual inspection, and 5 minutes for barcode inspections.visual III. Field trial in environmental traceability for electronics and electric instruments Quality and environmental information was exchanged between components manufacturers and set manufacturers,componentsand it was possible to trace what environmental materials had been used for each manufactured componenthadand for each manufactured product. Throughput capacity and error-handling methods for when handling large volumes of products. Realization of an environmental information exchange modelFuture issuesFuture issues - Standardization of data items when linked with in-house systems- Realization of a system that discloses environmental information 38. Outcomes of FY 2004 Field Trials: Pharmaceuticals Industry37 Mandatory keeping of sales records, including preparation names of biologic pharmaceutical products Background to Background to (2003 revision to the Pharmaceutical Affairs Law).the field trialthe field trial More efficient management of the enormous number of ampoules Pursuit of traceability and safety IssuesIssues Automated attachment of tags (labeler) to products which are small, well curved, and fragile.small,to be verifiedto be verified Mounting of antennas with high recognition rates, concurrent with the attachment to the well-curved surface.withwell- Field Trial Principal Participants: Federation of Pharmaceutical Manufacturers' Associations of Japan Cooperating Businesses: Toppan Printing, SAP Japan...In collaboration with the Ministry of Health, Labour and Welfare Trial Period: Jan - Feb, 2005 Trial Location: Toppan Packaging Service (Saitama), Toho Pharmaceutical (Tokyo), Alfresa (Tokyo)...Consistent traceability from manufacturers to hospitals Consistent traceability from manufacturers to hospitals by usage unitby sales unit by package unit by pallet/cargo unit AmpouleManufacturerof a biologic pharmaceutical Wholesaler MedicalMedicalWholesaler InstitutionInstitution Develop a tagDevelop a tag that can function eventhat can function even when wrapped around this small ampoulewhen wrapped around this small ampoule 39. Reference: Mandatory Recording and Saving of Product Information 38 under the Pharmaceutical Affairs LawExample) 4E146BCurrent status: Visual data entry into computers involves possibilities of mistyping and misreading: Is the character a 1 (number) or I (letter)?Is the character a 0 (number) or O (letter)? 40. Outcomes of FY 2004 Field Trials: Pharmaceuticals Industry 39Field Trial Features & OutcomesField Trial Features & OutcomesI. Basic tests related to performance The degree of readability was determined in cases where RFID tags are wrapped around cylindrical ampoules.tags It was concluded that recognition rate was poor when read at 90 degrees, but this could be solved by taking readings from multiple angles or by taking readings while rotating the target items. angles It was determined that 13.56MHz-band and UHF-band RFID tags are superior to 2.4GHz in cases13.56MHz- UHF- where the pharmaceutical products contain liquids. II. Development of labelers The technology was developed that embeds RFID tags into the labels.labels. Equipment was developed that automatically affixes labels embedded with RFID tags, embedded and labels were successfully attached to 10mm-diameter ampoules without any difficulty.10mm-III. Supply chain field trial Inspection-related operations, conducted using the current visual or barcode methods, were reduced by about 91%.Inspection-barcode Man-hours at manufacturers and warehouses, related to receiving goods, shipping goods,Man-goods, and inspecting goods for delivery, were reduced (by approximately 48% at manufacturers, and 23% at warehouses). approximately Improvements in accuracy for multiple bulk readings- Operational improvements, such the timing of readings and the transit speed transit Efforts to achieve traceability Future issues Future issues- Management in terms of individual products is not conducted at the upstream of the supply chain. theHowever, at the medical frontline, there needs to be management of expiry dates- and usage logs by individual product.Furthermore, in order to achieve traceability, RFID tags need to be attached to individual products- when they are manufactured. 41. Outcomes of FY 2004 Field Trials: Department Store Industry, Apparel Industry40 Need for precise responses to selective consumption, spanning color, design, style, Background to Background tothe field trial size, etc.the field trial Limit to display space, and time lost confirming inventories. More efficient inventory management, and assurance of ability to satisfy demandIssues Issues to be verified to be verified by eliminating stock-outs. Reduced customer service times, and increased sales. Field Trial Principal Participants: Japan Department Stores Association, Japan Apparel Industry CouncilCooperating Businesses: NTT Communications, NTT Comware, Nihon Unisys, Dai Nippon Printing...Trial Period: Dec 2004, Feb 2005Trial Location: Mitsukoshi, Nihonbashi Store; Hankyu Department Store, Yurakucho Store; Arcakit Kinshicho, Kumikyoku FAM... (Field trial in womens shoes)Manufacturer Manufacturer WholesalerWholesaler Retailer Retailer ShippingTagging Inspection of delivered goods Record sales Average customerPDA searchingservice time reduced Inventory by 20%management Inspection ofgoods for delivery Inspection of delivered goods Stocktaking Able to confirmSelf searchinginventories by supplier Stocktaking completed in 4minutes per shelf, in contrast to 15minutes with barcodes 42. Outcomes of FY 2004 Field Trials: Department Store Industry, Apparel Industry 41 Field Trial Features & Outcomes Field Trial Features & OutcomesI. Basic tests related to performance A comparative study was conducted on whether RFID tags should be attached to shoe boxes or the shoes themselves. In terms of accuracy in readings, attaching tags to shoe boxes was better.boxes II. Verification of effectiveness in the supply chain Annual savings of approximately 10 billion yen in operational costs would be achieved for apparel merchandise, costs by reducing the reading operations (currently by barcode) during stocktakes and during the inspection of goods during when received and dispatched. All member companies of the Association of Department Stores) Sales would increase by 11% for womens shoes, by reducing the loss of sales opportunities by means of providing swifterwomen inventory information, etc.III. Manufacture and issue of integrated tags Developed an integrated tag that embeds an RFID tag into the tag attached at the manufacturing plant. Confirmed that there are no damages or other defects. When introduced, it would be possible to attach an integrated tag at the manufacturing plant. tag Performance improvements in writing data to the RFID tags - Until tags can be actually attached at the point of production, Future issues Future issues - writing data onto individual products will be an operation for the distribution center or store. - It takes time to write the data, and the workload would be great. great. The ideal method for exchanging data between businesses - Standardization of coding systems, and agreement on information items, etc. are necessary. 43. Outcomes of FY 2004 Field Trials: Logistics Industry42 Increased requests by private sector companies for upgrades and greater efficiency in Background to Background toservices from the logistics industry.the field trialthe field trial Requests for the strengthening and establishment of security related to internationallogistics, arising from the 9-11 terrorist attacks in the U.S.Issues to be Issues to be Ensuring the visibility of containers. verified verified Increased automation and efficiency of goods inspections, and prevent incorrect shipments. Tracing of temperature, humidity, light and impact histories (quality control). Field Trial Principal Participants: Japan Federation of Freight Industries Cooperating Businesses: Mitsubishi Research Institute, IIJ, Nihon Unisys, Toppan Printing , Mitsui & Co., Ltd... Trial Period: Dec 2004 - Feb 2005In collaboration with the Ministry of Land, Infrastructure and TransportTrial Location:Ports of Tokyo, Yokohama, Nagoya, Kobe..., Hong Kong, Dalian, Los Angeles, Antwerp An electronic seal forattaching to containers(Active-type 433MHz) 44. Reference: Image of the Field Trials in the Logistics industry 43 Readings at Hardware vanning/devanningProduct Item Software(Package)950MHz Case2.4GHz(Passive)Pallet System of shared platforms (compliant with the EPC System)ContainerContainer Identification TagElectronic Seal 433MHz (Active)* Need to examine the possibility of950MHz (Passive)combining electronic seals with electronic ealscontainer identification RFID tags.tags. 45. Outcomes of FY 2004 Field Trials: Logistics Industry 44Field Trial Features & OutcomesField Trial Features & OutcomesI. Improved visibility By utilizing shared information platforms, operators can determine the status of freight in real-time. Compared to the conventional positioning methods using phone or fax, there will be savings of labor, resulting in annual savings in personnel costs equivalent to approximately 3.5 billion yen.II. More efficient operations through automated identification By automatically processing the data read from RFID tags when freight passes through each center, there will be savings to the entry of locational information. Furthermore, by reading the RFID tags on pallets of products, and by automatically inspecting goods at vanning/devanning, there will be savings to the actual goods inspection operations. These savings of labor will result in annual savings in personnel costs equivalent to approximately 20.5 billion yen.III. Effects from monitoring freight By utilizing sensors with built-in RFID tags, conditions during transit could be determined (changes in temperature and humidity, and impacts). By reviewing the methods for securing and shipping freight based on the historical data for transport conditions, there will be annual savings in freight costs equivalent to approximately 9.9 billion yen. Issues related to reading RFID tags on containers- During vanning/devanning, there were occasions when both the container tags and theFuture issues internal freight tags were read, and the system ended up being burdened with vastFuture issuesamounts of data.A solution needs to be devised, such as the positioning of the container tags, or thedirection of the antennas. 46. Outcomes of FY 2004 Field Trials: Record Industry, DVD & CD Industry 45 Increased sorting operations for stores and increased inventory management operations Background to Background to accompanying the distribution of a diverse range of media.the field trialthe field trial High incidence of thefts from stores. More efficient management of receipts and dispatches, and more efficient inspectionIssues to be Issues to be verified operations at distribution warehouses.verified More efficient merchandise management, antitheft devices, and improved marketing accuracy at retail stores.Field Trial Principal Participants: Recording Industry Association of Japan, Japan Video Software Association, Record Trade Association of Japan, Compact Disc Video Rental Commerce Trade Association Cooperating Businesses: Mitsubishi Research Institute, RF Japan, Matsushita Japan... Trial Period: an - Feb, 2005 Trial Location: Shinseido, Kokubunji Station Bldg; TSUTAYA, Bajikoen Store...Achieve a uniform SCM, covering from manufacturers to secondhand shopsHome Secondhand (1) More efficiencies and savings in the (2) More efficiencies and savings inTrading distribution processesmerchandise managementDistribution SecondhandFactories Wholesalers Retailers HomeWarehouses Traders Management of receipts and Inventory managementdispatches Sales informationInventory management PrelistensReturns management Rental managementAlso conducted marketingTrial at 2 major distribution warehouses Trial at CD retailer Trial at rental/sales store trials using readers attachedJDS (Shizuoka) Shinseido TSUTAYA NRC (Atsugi)to mobile phones and similardevices.(1) Distribution warehouses = Management of receipts and dispatches; More efficient picking and inspection operations(2) Retailers = More efficient merchandise management; More efficient returns of loans 47. Outcomes of FY 2004 Field Trials: Record Industry, DVD & CD Industry 46Field Trial Features & OutcomesField Trial Features & OutcomesI. Distribution centers Time to read individual products reduced to less than 1/3 that using barcodes. Savings made in picking and inspecting operations, resulting in a personnel costs reduction effect of 600 millionyen each year.II. Retail centers Stocktaking times reduced to less than 1/4 that using barcodes. Equivalent savings of 400 million yen per year, from the effects of reduced personnel costs and fewer lost businessopportunities due to stocktaking. Improved accuracies were achieved in the antitheft function, and replacement of the existing system is possible. Pre-purchase behaviors can be determined, such as through prelistens, and can be utilized as a new type of toolin formulating marketing strategies.III. Rental centers The effect of reduced processing times for lending is exaggerated when multiple items are lent at once.Processing times have gone from 1-2 seconds per item with conventional barcodes, to 1-2 seconds per 6 itemsread in bulk. By being able to automatically issue receipts at automatic return stations using a return box, we can expect thecreation of new reassuring services for users that were not conventionally possible. There is a high incidence of defective readings for UHF-band RFID tags due to the effect ofmetal. Future issues- Use 13.56MHz for the management of individual items. Future issues Technology for attaching tags to CDs/DVDs.- Attach to the spine title area; Attach to the face of the disc. Industry standardization, such as shape of tags, positioning, etc. 48. Assessment from Earlier Trials & Direction of FY 2005 Field Trials47 Assessment from Earlier Trials Assessment from Earlier Trials Based on the knowledge, information and results gained in the field trials, certain industries are planning full-scale implementation of RFID tags, and considerable outcomes have been achieved. For example: In the department store industry, Mitsukoshi and Hankyu adopted full-scale RFID tagging systems in April 2005. Since RFID tagging systems have a diverse range of effects, and since they act as an IT tool for raising the competitiveness of a company in a range of ways, even more field trials must be conducted from various perspectives, and plans must be laid for expanding the use of RFID tags.Effects of the RFID tagging system Effects of the RFID tagging system -- IT investments in integrated manufacturing and sales systems IT investments in integrated manufacturing and sales systems -- Investments in the integration of commercial distribution and physical distribution Investments in the integration of commercial distribution and physical distribution -- Integration of the flow of physical items and the flow of contract and management Integration of the flow of physical items and the flow of contract and managementinformation (integration of critical systems) information (integration of critical systems) -- Scalability of security and environmental measures, such as traceability systems Scalability of security and environmental measures, such as traceability systems -- Assurance of profitability for vendors through the integration of the business chain Assurance of profitability for vendors through the integration of the business chain Direction of FY 2005 Direction of FY 2005In order that the various effects of RFID tagging systems be maximized, and in order that they be linked tosustaining and strengthening industrial competitiveness with instant results, several broad-ranging themeshave been set, and proposals are to be widely invited from industries and companies. 49. Themes for the FY 2005 RFID Tag Field Trials48Theme 1: Industrial restructuring & administrative reform promotion projectsTheme 1: Industrial restructuring & administrative reform promotion projects This project aims to maintain and strengthen Japans international competitiveness, by integrating and coordinating with mission-critical systems, and by promoting projects that fundamentally review business processes, including real-time links between sales performance and production plans, the integration of commercial distribution and physical distribution, the integration of manufacturing and sales, and the realization of traceability that includes as far as recycling. Theme 2: New industry creation projectsTheme 2: New industry creation projects With our sights set on a few years into the future, this project aims for Japan to take the lead in creating new industries in the global marketplace, by developing technologies that can realize the potential of RFID tags. Theme 3: Inter-industry cooperation projectsTheme 3: Inter-industry cooperation projects A series of company groups, ranging from upstream to downstream in the distribution of goods, will team up both vertically and horizontally across industrial borders, and will contribute to promoting the transfer from intra-industry" to inter-industry by creating a common infrastructure for RFID tags in both wholesale and retail fields. Theme 4: International cooperation projectsTheme 4: International cooperation projects This project will contribute to the following objectives by creating a common infrastructure (mainly in Japan, China, Korea and ASEAN countries) for RFID tags, which complies with ISO international standards: - More advanced and efficient logistics and distribution for companies in various East Asian countries - Achievement of traceability to contribute to trade safety and security - Review of the direction of one-stop service systems for trade-related procedures Public applications were invited from May 18 and accepted until June 24. The adopted proposals were announced on August 11. (http://www.meti.go.jp/policy/it_policy/tag/tag_top.htm) 50. Projects Adopted for the FY 2005 RFID Tag Field Trials49ThemeProjectField Trial Principal Participants Overview of Trial Total traceability field trial Attachment of RFID tags to consumer and industrial electronic devices, etc.using RFID tags in the Japan Electronics and Information Realization of total traceability, spanning manufacture, maintenance and recycling.electronic and electricalTechnology Industries Association Establishment of an efficient reverse-logistics business model that is responsive to our recycling-basedindustrysociety in addition to maintenance and recycling operators. Industrial restructuring Attachment of RFID tags to biologic pharmaceutical products, including ampoules, vials and softbacks. Prevention of dosage errors in medical institutions and at the medical frontline; and an assessment of theRFID tag field trial in the impact of RFID tags on medical devices. Japanese Society of Hospital Pharmacistspharmaceuticals industry Joint examination by the Japanese Society of Hospital Pharmacists, the Federation of JapanPharmaceutical Wholesalers Association, and the Federation of Pharmaceutical Manufacturers'Associations of Japan in anticipation of using RFID tags across the whole pharmaceuticals industry. Verification of the use of RFID tags on future supply services for the Self-Defense Forces.Field trial to examine the Japan Defense Procurement Structure Verification of the traceability of supplies using RFID tags, real-time and efficient inventory management,use of RFID tags in the and location management, etc., by attaching RFID tags to supplies for the Self-Defense Forces and Improvement Foundation (BSK) transporting them between military posts by Self-Defense Force trucks, transport ships and transportsupply servicesplanes. Attachment of RFID tags to floors, persons and products. creationUtilization of RFID tags for robots to recognize space and identify people and objects - typical weaknesses industryField trial by autonomous New tmsukfor robots.service robots using RFID NTT Communications Realization of an unprecedented inexpensive and advanced robot.tags Robots accompany people shopping, and are used to provide guidance in stores, provide information onmerchandise, and carry bags.Japan Publishing Organization for Attachment of RFID tags to individual books, CDs and DVDs.RFID tag field trial in the Creation of a common system for both the book industry and the music and video industry.Inter-industry Information Infrastructure Development cooperationmedia contents industry Realization of a single checkout in a multi-retailer complex by utilizing a common system. Recording Industry Association of Japan Provision of new value-added services to customers, by linking books and music/video contents.RFID tag field trial designed Realization of future-oriented stores that provide unprecedented customer services Future Store Promotion Forumto realize future-oriented Provision of additional merchandise information and in-store navigation services to customers, by using Future Store Project Consortiumsmart cards, etc., equipped with reader/writers.store services Attachment of RFID tags to automobile parts and returnable containers.RFID tag field trial in the Japan Auto Parts Industries Association Realization of production progress and distribution management at cross-border production centersInternational cooperationASEAN region(Singapore, Malaysia and Thailand). Attachment of RFID tags to components for Copiers, pallets and containers.RFID tag field trial in Japan, Japan Business Machine and Information Realization of inventory management and production process management at cross-border productionChina and KoreaSystem Industries Associationcenters (Korea and China). 51. FY 2005 Field Trial: Industrial Restructuring -- Electronic & Electrical Industry -- 50 Strengthened efforts for environmental problems. Background to Background toStrengthened regulations, including the elimination of hazardous substances, RoHS,the field trialthe field trial and recycling laws. Manufacturing of safe and secure products.Quality improvements, social responsibility. Issues to be Issues to be Total traceability structure with a view to entire life cycles. verified verified Collection of historical data during the life cycle of products (even more efficientexchange of information between businesses).Field Trial Principal Participants: Japan Electronics and Information Technology Industries Association Cooperating Businesses: Hitachi, NEC, Fujitsu... Trial Period: Jan - Feb, 2006 Trial Location: Hitachi, Omika Office; NEC Computertechno; FIT Frontier, Recycling. CenterManufacturerMaintenance ProviderRecycling OperatorRectification and revitalization of Company A Company B Company C reverse processes TAG TAGTAGfor productsTAGTAGReuse itemsCompositional changesTAG Dismantling TAGMaintenance historymethodSubstancescontained Hazardoussubstances Maintenance support information, etc. Dismantling Reuse support needs, etc. Waste information, etc. 52. FY 2005 Field Trial: Industrial Restructuring -- Pharmaceutical Products --51 Mandatory keeping of sales records, including preparation names of biologic Background to Background to pharmaceutical products (2003 revision to the Pharmaceutical Affairs Law).the field trialthe field trial Management of the vast numbers of ampoules. Dosage errors when preparing mixtures. Improvements in accuracy for managing pharmaceutical products at medical institutions.Issues to beIssues to be Improvements to medical safety.verified verified Optimization of pharmaceutical product inventories for the entire supply chain, including asfar as pharmaceutical companies, wholesalers, and medical institutions. Field Trial Principal Participants: Japanese Society of Hospital Pharmacists Cooperating Businesses: NTT Advanced Technology, NTT Techno Communications, CSK, Mizuho Information & Research Institute... Trial Period: late Jan - Feb, 2006 Trial Location: The University of Tokyo Hospital In collaboration with the Ministry of Health, Labour and WelfareConsistent traceability from manufacturers to hospitals Consistent traceability from manufacturers to hospitalsWholesalers: Wholesalers:ManufacturersMedical Institutions (Pharmaceutical Departments)Distribution CentersSales Offices Receipt of Prescription instructions / Measured dispensingto the patientgoods Picking(Preparing mixtures) by pallet/cargo unit by pallet/cargo unitby packageunit 53. FY 2005 Field Trial: Industrial restructuring -- Defense Procurement Industry -- 52 Formulation of supplies delivery schedules and transportation management, in a short time Background to Background toand with limited personnel.the field trialthe field trial Flexible responses to changing situations. Supplies accommodation with friendly nations and security Verification of the effects of the complete visualization of supplies, extending across theIssues to be Issues to be branches of Japans Self-Defense Forces (advanced tracking) verified verified Verification of the effects of more efficient inventory management at missions, etc. Real-time inventory management and location management Field Trial Principal Participants: Japan Defense Procurement Structure Improvement Foundation (BSK)In collaboration Cooperating Businesses:Accenture, Toyo Business Engineering, Fujitsu, NEC, Hitachi, Tohmatsu Consulting, Santen... with the Japan Defense Agency Trial Period: Jan - Feb, 2006 Trial Location: Japan Ground Self Defense Force, Kanto Depot; Japan Air Self Defense Force, Iruma Air Base; Japan Maritime Self Defense Force, Yokosuka Base; Japan Maritime Self Defense Force, Iwojima Base Port/Airport of Port/Airport of En RouteEn Route Port/Airport of Port/Airport of Cantonme Cantonme Port/AirportPort/AirportPort/Airport ofPort/Airport ofDepotDepotDepotLoading LocationsUnloading ntof Loading Unloading DepotLoadingLocations Unloading ntof Loading UnloadingVisionVisionTransport of supplies to cantonmentsTransport of supplies to cantonmentsWithdrawal of suppliesWithdrawal of supplies Kanto Depot Kanto Depot YokosukaYokosuka Iwojima (MaritimeIwojima (MaritimeKanto DepotKanto DepotKanto Depot Kanto Depot(Ground) (Maritime)Iruma (Air)Iruma (Air) (Ground) (Maritime) & Air)& Air)(Cantonment) (Cantonment) (Ground) (Ground) Iruma (Air)Iruma (Air) Field Trial Field TrialProposal Proposal Verify the visualization of the supply chain, by implementing lateral tracking of supplies through the Ground, Maritime and Air SDF by means of acquiring Advanced tracking Advanced tracking transit information using RFID tags at each of the en route locations, and loading this information into the mission critical system. Verify the efficient management of supplies that estimates the dispatch time from domestic depots, the arrival time at mission cantonments, and the troops Efficient management of supplies Efficient management of supplieswithdrawal time from mission cantonments, and uses RFID tags for packaging, identifying and sorting supplies. Real-time inventory Real-time inventory Conduct real-time inventory management of supplies using RFID tags at cantonments, and verify that inventory information can be referenced. and location management and location management Verify location management at cantonments by using location information systems and active tags, which utilize wireless LAN. 54. FY 2005 Field Trial: Creation of Industries -- Self-contained Autonomous Service Robots -- 53 Creation of a market for service robots that coexist with humans.Background toBackground toThe creation of a market is impeded by the high costs associated with various in-built sensors the field trial the field trial and ensuring safety. Price of service robots to be lowered by means of location recognition using RFID tags. Issues to beIssues to be Verification of the usefulness of an advanced communications infrastructure that uses RFIDverifiedverified tags and networks. Field Trial Principal Participants: NTT CommunicationsCooperating Businesses: tmsuk, NTT Comware...Trial Period: Feb 2006Trial Location: Diamond City, Lucle (Fukuoka)Robot is operatedRobot is operated remotely. remotely.Robot is called usingIPv6 or similarRobot is called using RFID tagssecure network RFID tags(2) Store information tag (13.56 - provisional) (4) Person authentication tag (Active tag - provisional)Customer searches for store(1) Location Customer searches for store Only authenticated (3) Merchandise Product information recognition tagusing touch panel.Only authenticatedProduct informationusing touch panel. customers can control information tagis acquired usingRobot escorts customer to customers can controlis acquired using (13.56 - provisional) Robot escorts customer torobot. (13.56/UHF - provisional)RFID tags.store.robot.RFID tags.store. 55. FY 2005 Field Trial: Inter-industry Cooperation -- Media Contents Industry -- 54 Shift away from physical media due to diversification of media formats provided (distribution via the Internet formats Background to Background toand mobile phones). Increase in shoplifting and illegal distribution aimed at cashing in goods (annual cost of shoplifted books is cashingthe field trialthe field trial 46.2 billion yen). Emergence of duplicate investments in systems as multi-retailer complexes increase. multi- complexes Establishment of shared information infrastructures in multi-retailer complexes, which are not reliant on multi-complexes, Issues to beIssues to be contents, and which utilize RFID tags.verifiedverified Development of inexpensive IC tags, and verification of methods for attaching the tags to each type of media. Verification of store operations and new services that will make customers want to visit the store regularly. Field Trial Principal Participants:Japan Publishing Organization for Information Infrastructure Development, Recording Industry Association of JapanCooperating Businesses:NTT Communications, NEC, Shinano Kenshi, Smart ID Tec, NTT DoCoMo, Matsushita Japan, Dai Nippon Printing , Suuri-Keikaku, MRI...Trial Period: Feb 2006Trial Location:Shinseido, LaLasquare Utsunomiya Store; TSUTAYA; Bookhouse Jinbocho (Showa Tosho) Next-generation MediaAcquisition of value-added value-information using mobileGuidance at KIOSK terminals onContents Storephones fitted with RFID tagreadersinformation related to CDs, DVDs, comics,etc. A new marketing technique Provision of multi-contents bymulti- Creation of stores from the consumers means of KIOSK terminalsperspective that will make customers want tocompatible with barcodes and visit the store regularly RFID tags Service infrastructure that can accommodate Provision of purchase benefits barcodes, RFID tags, and even multiple types of using RFID tags products Provision of contents information on electronic posters, reservation service,Revitalization of retailers POS registers that can etc. Revitalization and structural reform of contentsaccommodate multiple typesof products, barcodes and industry RFID tags 56. FY 2005 Field Trial: Inter-industry Cooperation -- Future Store Consortium -- 55 Diversification of customer needs, and diversification of purchasing behaviors. Background to Background to Intensified competition as the format of department stores and other specialty shopsthe field trialthe field trialdiversifies. Reduction in lost sale opportunities, by means of achieving real-time inventory management.Issues to be Issues to be Increased sales by providing product information. verified verified Feasibility assessment of attaching RFID tags to existing food products.Field Trial Principal Participants: Future Store Promotion Forum / Future Store Project Consortium Cooperating Businesses: NRI, Aeon, Mitsukoshi, Marui, Flandre, Leading Information Technology Institute, Queen's Isetan, Sumitomo Corporation, Hitachi, Familymart... Trial Period: Nov 2005 - Feb 2006 Trial Location: Jusco, Yachiyo-Midorigaoka Store; Mitsukoshi, Ginza Store; Queen's Isetan, Shinagawa Store; Familymart, Tokyo stores; Marui, Shinjuku City StoreRecommended Recipes! Direction for the advancement of Direction for the advancement of retail sales operations, &retail sales operations, & Faster checkoutInducementsProposal for the development Proposal for the development processto visit storescenario for advancement scenario for advancement(conceptual diagram)(conceptual diagram)Inducements CSR to purchaseAdvancement of MD plans, and Recommendations based on Sharing of planning informationmerchandise selection andindividual customer attributesspace management plansSteps foradvancementProvision of additional Sharing of performance information information based on inventoryB2B fulfillment(EDI) informationWine expertise,Information onwine regions GDS/EPCProvision of product information Visualization of inventory Development of Information InfrastructuresAdvancement of Customer Services Advancement of Store Operations 57. FY 2005 Field Trial: International Cooperation -- Japan-ASEAN Returnable Container PJ --56Background to Increased distribution costs associated with incorrect or short shipments of componentsBackground to (Approximately 200 billion yen of incorrect or short shipments industry-wide). the field trial the field trial Coping with each countrys complicated customs procedures. Formulation of a cycle model for returnable containers that utilizes RFID tags. Issues to beIssues to be Based on license plates, develop and verify a system for managing returnable containers thatverified acts as a common infrastructure repository in Asia.verified Development of a system that can cope with the different wireless environments and legal systems for RFID tags in each of the ASEAN nations. Field Trial Principal Participants: Japan Auto Parts Industries Association Cooperating Businesses: Denso, Denso SI, Denso Wave, NTT Data, Nippon Information and Communication Corporation, NTT Communications... In collaboration with the Ministry of Trial Period: end of Dec 2005 - end of Feb 2006Land, Infrastructure and Transport Trial Location: Singapore, Thailand, Malaysia, Japan (Nagoya)Returnable ContainersReturnable Container Server Management System Internet Components SupplierDenso / Valued Supplier RFIDServerServer TagInspection Inspection ProductionReturnableProductionRead Container Delivery Receipt ComponentsShipmentComponent Number Label Read with two-dimensional ReceiptDelivery Emptybarcode Container Return 58. FY 2005 Field Trial: International Cooperation -- Japan-China-Korea Copier Components PJ -- 57 Visualization of inventory volumes between global centers; Reduction in inventory reserves.Background toBackground to Increased need for traceability that can respond quickly, such as for product recalls. the field trial the field trial Strengthening and establishment of security related to import/export freight and international distribution, designed to prevent terrorism and protect national security. Verification of the coordination between RFID tagging systems and mission-critical operating systems. Issues to beIssues to be Verification of operations that effectively use RFID tags.verifiedverified Verification of the effective usage model for making customs procedures more efficient. Verification related to the strengthening of distribution security, etc.Field Trial Principal Participants: Japan Business Machine and Information System Industries Association Cooperating Businesses: Fuji Xerox, Mitsui Global Strategic Studies Institute, IIJ, Nihon Unisys, Toppan Printing... Trial Period: mid Dec 2005 - early Feb 2006 Trial Location: Korea, China, JapanIn collaboration with the Ministry of Land, Infrastructure and Transport Domestic Domestic TokyoTokyo SupplierSupplierKonoike Transport Knockdown componentAuto Feeder (1 company) ScannerLocalLocalIncheonIncheon ShenzhenShenzhenLocalLocal Supplier SupplierFactoryFactoryFactory Factory Supplier Supplier(2 companies) PrinterModule production, IOT, Skeletonsuch as IIT orFinisherFinal assemblyDADF Atsugi FIC Atsugi FICTraySankyu DomesticDomestic Customers Customers 59. Establishment of an Interagency Cooperation Framework 58 Established an Interagency Liaison Group to further strengthen the coordination of measures by various government agencies. (First meeting: November 15, 2004)Ministry of Economy, Ministry of Agriculture, Ministry of Land, Trade and Industry Forestry and Fisheries Infrastructure and TransportPromotion of Promote industry Promote field trials inEffectivefield trials the food sectorPromote support Usage projects for -Home appliances, Electronics, - Develop advanced systems for autonomous movement Industrial machinery,food safety and security, using Department stores & apparel, ubiquitous technologies; and CDs & DVDs, Publishing,conduct field trials - Establishment of systems Pharmaceutical products,designed to realize new services International distributionthat advise locationsCoordination Ministry of Internal Affairs and Communications Research and development of basic technology for realizing a ubiquitous network society- Technology for coordinating and controlling 10 billion terminals; Ubiquitous network authentication andagent technology; Ubiquitous network control and management technologyNetworkResearch and development related to technology for the highly effective usage of RFID tags- Technology for the exchange and management of RFID tag information between various systems; Area of production Interconnection technology between RFID tags and networks; Security control technology, etc. and otherinformation Coordination5 Ministry of Economy, Trade and IndustryMinistry of Education, yen Development of low-cost RFID tags Culture, Sports, Science Manufacturing and Technology - Low-cost manufacturing technologies for rationalizing theTechnology whole supply chain Research and development - Under the Hibiki Project, develop a manufacturing on next-generation technology that delivers a sales price of 5 yen within twoembedded software and years high-security RFID tags 60. 59Summary The Ministry of Economy, Trade and Industry has narrowed its policy issues to two: International Standardization and Price Reduction; and is strategically pushing forward with RFID tag related policies. In no way are RFID tags an all-powerful tool. However, if user businesses can analyze their operational issues themselves with calm deliberation, and if they can discover practical ways of utilizing RFID tags, then the tags will demonstrate a tremendous force. If use of RFID tags is to truly expand, then it is important that the driving force be driven by user businesses. The Ministry of Economy, Trade and Industry will continue to provide the maximum backup possible to those user businesses which implement policies to enhance their own competitiveness by utilizing the strengths of RFID tags, and facing up to their own operational restructuring.