demystifying rfid & automatic identification …aidc100.org/files/2012workshop-hill.pdf · the...

DEMYSTIFYING RFID & AUTOMATIC

IDENTIFICATION TECHNOLOGIES

John M. Hill

April 3, 2012Orlando

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THE SUPPLY CHAINThe infrastructure of

facilities, transportation networks, technologies,

systems & people that enable material flow from source to

consumption.© 2012 St. Onge Company

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SECURE, ERROR-FREE ORDER FULFILLMENT,

DELIVERY &

VISIBILITY

SC EXCELLENCE

© 2012 St. Onge Company

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THE RIGHT MATERIALS

IN THE RIGHT CONDITION

AT THE RIGHT PLACE

AT THE RIGHT TIME

SC EXCELLENCE


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MATERIAL & DATA FLOW SYNCHRONIZATION

SC EXCELLENCE


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The best decision making is executed on the basis of events as or before, not after, they occur. Responsive

systems provide discipline and control, based not only upon plans & performance goals, but also upon the

dynamics of actual operations.

RESPONSIVENESS


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WE HAVE THE TOOLS!

Material Handling Equipment

Network & Process Optimization

Automatic Identification

Supply Chain Execution Systems

People© 2012 St. Onge Company

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AIDC TECHNOLOGY IS CRITICAL TO

MATERIAL & DATA FLOW

SYNCHRONIZATION© 2012 St. Onge Company

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Voice Data Entry

Bar Code

RF Data Communications

RFID

AUTOMATIC IDENTIFICATION & DATA CAPTURE TECHNOLOGIES


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1966


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ACI


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1971

© 1971 Computer Identics

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John Hill Material Handling Engineering Fall 1972

“The trend in [item coding] is toward miniaturization. The use of such micro-

encoding will permit assignment of a unique number to any product whose value

warrants tracking, whether it’s an automobile or a shipment of caviar - - in

plant or across the country. Within the next ten years, such product coding will be

commonplace and, in fact, be standardized.”

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WHAT IS RFID?The use of radio frequency technology to enable data exchange between reading devices and items carrying RFID tags.

Reliable when properly deployed, RFID does not require line of sight or contact between the readers and tags.


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RFID TIMELINE

• 1926: Baird’sradio object

detectionpatent

• 1935: Watson-Watt’s radar

patent

• 1942: Hedy LamarPatent

• WW II: Radar refined

• 1st Toll Collection

SystemNorway

• Texas, Georgia, Oklahoma Tolls

• Wide-scale US Roll-out

• LASL spins-off IDX & Amtech

• 1984: IDX/ AllenBradley

install GM System

• Vast number of companies enter RFID marketplace

• 1977: Electronic license plate for motor vehicles

• 1979: RFID animal

implants

• 1975 LASL releases

research to public sector

• 1991: AAR standard

• 1994: All US railcars

outfitted

• MIT Auto-IDCenter formation

• EPC™ introduced

• National & internationalstandards emerge

• 2004: TREAD

• EPCglobal formed 2003

• 1998:US Army rolls out TC-

AIMS II

• 2003: RFID prominent in

Iraqi Freedom

• Smart shelves

• Multiple early

adopter installations

• 1952: Vernon“Application of the Microwave

Homodyne”

• Harris patent: “Radio

transmission systems with modulatable

passive responder”

• Harrington “Active & Loaded

Scatterers”

Adapted from Interaction Design Institute RFID Project Presentation - 2002

• 1966: Sensor- matic & Check-

point EAS

• Over 350 direct - reference patents

• 1948: Harry Stockman -

Communications By Means of

Reflected Power

• Fairchild, RCA & Raytheon

initiate programs

• 2005: Wal-Martinitial deadline• 1969: Mario

Cardullo RFIDconcept

• 1973: Cardullopatent

1920 - 40’s 1950’s 1960’s 1970’s 1980’s 1990’s 2000’s

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GM RFID TAG

1984


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1991


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THE EMERGENCE OF RFID IS ONE OF THE

MOST EXCITING THINGS TO HAPPEN TO THE

SUPPLY CHAIN IN THE LAST 30 YEARS!!!


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THE EPC VISION

© 2000 IBM

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THE END OF BARCODE?


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If you produce [tags] in the

billions, [they’ll] cost as little as 5

cents."Information Week - September 30, 2002

THE PROMISE

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I’m likely to be in "the home"

before they cost a nickel!

THE REALITY

John M. Hill – FRONTLINE – September 200322

THE REALITY

$.058 – Quantity: 5 MillionInvengo - 2009

They’re getting closer, but it’s an inlay, not a tag – and, after all,

I’m not in the “home” yet!

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HURDLES

TAG GENERATION / APPLICATION

TECHNOLOGY PERFORMANCE

ALTERNATIVES & STANDARDS

AIDC INSTALLED BASE

PHYSICAL INFRASTRUCTURE

SYSTEMS INFRASTRUCTURE

CULTURE / FEAR / POLITICS

COSTS / VALUE© 2012 St. Onge Company

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R F I DIN THE

SUPPLYCHAIN


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PROVEN APPLICATIONS

Robotics

Containers

Monorail

TowlinesNAVs

Assembly

Totes

AGVs

CagesLift Trucks

RFID

Pallets


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CARGO TRACKING & SECURITY

Product

ConditionTrail

er

Tractor

Location

Seal

GPS RFID

Courtesy of Q.E.D Systems

IDITAROD


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ASSESSING AIDC FOR YOUR OPERATIONS

COST NOT THE INITIAL ISSUE

THE VALUE PROPOSITION?

IS THERE A BUSINESS CASE?© 2012 St. Onge Company

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It’s not so much how they work as it is

“Which one or ‘ones’ will work best in my

applications?”© 2012 St. Onge Company

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FUNCTIONAL AREA APPLICATIONS AIDC TECHNOLOGYAIDC TECHNOLOGYAIDC TECHNOLOGYAIDC TECHNOLOGYFUNCTIONAL AREA APPLICATIONS BarCode Voice RFID RFDC

RECEIVING

Inbound Material Check-In ✔ ✔ ✔ ✔

RECEIVINGDamage Reporting ✔ ✔ ✔ ✔

RECEIVING Untagged Material Labeling ✔ ✔ ✔ ✔RECEIVING Returns Processing ✔ ✔ ✔ ✔RECEIVINGCrossdock Staging ✔ ✔ ✔ ✔

RECEIVINGQuality Assurance Alert ✔ ✔ ✔ ✔

PUTAWAY

Load Identification ✔ ✔ ✔ ✔

PUTAWAYLocation Confirmation ✔ ✔ ✔ ✔

PUTAWAY Exception Notification ✔ ✔ ✔ ✔PUTAWAY Returns Processing Move ✔ ✔ ✔ ✔PUTAWAYCrossdock Move ✔ ✔ ✔ ✔

PUTAWAYQuality Assurance Move ✔ ✔ ✔ ✔

INVENTORY CONTROL

Scheduled Cycle Count ✔ ✔ ✔ ✔

INVENTORY CONTROLException-Triggered Cycle Count ✔ ✔ ✔ ✔

INVENTORY CONTROL Full Physical ✔ ✔ ✔ ✔INVENTORY CONTROL Lot & Serial # Tracking ✔ ✔ ✔ ✔INVENTORY CONTROLShelf Life Monitoring ✔ ✔ ✔ ✔

INVENTORY CONTROLStock Rotation ✔ ✔ ✔ ✔

PICKINGInventory Allocation

PICKINGWave Building

PICKING Order Pick ✔ ✔ ✔ ✔PICKINGBatch Pick ✔ ✔ ✔ ✔

PICKINGCluster Pick ✔ ✔ ✔ ✔

SHIPPING

Dock Confirmation ✔ ✔ ✔ ✔

SHIPPINGTrailer Confirmation ✔ ✔ ✔ ✔

SHIPPING Load Sequencing ✔ ✔ ✔ ✔SHIPPING Seal Identification ✔ ✔ ✔ ✔SHIPPINGDocumentation ✔ ✔

SHIPPINGTrailer Departure Confirmation ✔ ✔ ✔ ✔


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HORSES FOR COURSESShould we use pick-to-light, RFID or voice for item picking?

How can we avoid metal interference (especially steel) when we are using RFID tags and technology for product traceability?

Without major warehouse and information system changes, RFID is simply not going to work for us. Should we move on to something else?

Is RFID ready?

Where should we start?© 2012 Cypress Associates

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Take the time to describe the track & define

performance requirements before picking the horses

to run the race.

The myriad alternatives available to tackle supply

chain challenges represent both the

strength and weakness of the industry.

HORSES FOR COURSES


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TIME

COMPLEXITY & COST

• High Value Item Identification

• Container/Pallet Identification• Returnable Container Identification• Tractor/Trailer Identification

Trading Partner Networks

• Tractor/Trailer Identification• MH Equipment Tracking• Returnable Container Identification• Container/Pallet Identification• Work-in-Process Tracking

Closed Loop Applications

Global Supply Chain• Item Identification

• Case Identification

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Data to be captured? When? Where? How –Attended / Unattended? Environment?Line-of-sight access to the tag? Orientation?Tags moving when read? Speed? Range(s)?Tags "buried" and/or embedded in products, containers or pallets? Liquid / metal issues? Tags subjected to contamination?Multiple tags to be read simultaneously?Tags to be written to or rewritten in transit?

RFID: RIGHT FOR YOU?


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ASSESSMENT INITIATIONReview business model, short & long-term business objectivesSupply chain’s role in meeting objectivesCurrent supply chain concerns and issuesCurrent & expected customer AIDC compliance programsReview supply chain physical & systems infrastructureReview cash-to-cash supply chain process flowREVIEW EXISTING OPERATIONS, PROCESSES & SYSTEMSManufacturingInbound raw material identification & trackingWIP & assembly processesFinished product packaging & labelingWarehousingInbound product identification & trackingStorage & crossdocking processes: location selection/confirmationInventory & location management proceduresOrder picking processes: location selection/pick confirmationValue-added processingOther warehouse functions & processesPalletizing/containerizationShipment labeling/tagging processesTrailer/railcar/courier loading & shipment verificationSystemsOrder release process & documentsLot, serial number, shelf life, expiration date trackingWarehouse task managementLabor managementCase, pallet, container label generationCurrent label data content: UPC/SSCC/GTIN/EPC mapping

AIDCREADINESS

ASSESSMENT

© 2012 Cypress Associates

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Systems (continued)Inventory updates & reconciliationCarrier scheduling/Other transportation functionsShipment documentationCustomer shipment notification: EDI, XML, ASN's, otherIdentify Key Performance Indicators & Metrics For Each AreaDefine Performance Improvement TargetsPREPARE ASSESSMENT REPORTIdentify general process & systems opportunities: low hanging fruitIdentify probable impact of AIDC on processes & systemsIdentify AIDC challenges, technology options & costsIdentify required infrastructure & systems changes, additions & costsIdentify risks & steps necessary to mitigateDetermine pilot test & roll-out resource requirementsDevelop action plan & prioritized, costed deployment roadmapFinalize business case & investment package Secure approval for pilot testing (or deferral)IF IT'S A "GO", INITIATE PILOT TESTINGTag configuration for item and/or case IDTag configuration for pallet IDTag encoding equipment requirements & deploymentTag application method, equipment & deployment as applicableTag verification: location, reader, antennae requirements (RFID) & performance specsTrading partner reader/antenna configuration (RFID) & performance specificationsEstablish technical & performance test standardsSelect & deploy equipment for testing - OR - select supplier test facility Conduct testsReview results & fine-tune investment packageSecure approval for program launch (or deferral)

AIDCREADINESS

ASSESSMENT

© 2012 Cypress Associates

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COSTS / VALUEINVESTMENT COSTS• Readers (Fixed or portable)• Antennae• Network/Interfaces• Middleware/Software• Integration, Installation, Training

RECURRING COSTS• Tags (One-time or reusable)• Tag Application Labor• Portable Reader Labor• Maintenance• Training

VALUE• Improved Accuracy• Better Visibility/Traceability• Improved Security• Speed/Throughput• Inventory Reduction• Reduced Obsolescence• Improved Customer Service• Reduced Shrink/Damage• Improved Space Utilization• Execution Error Reduction• Improved Stock Rotation• Reduced Labor Costs


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Tags/Transponders Tag types? How many? Disposable vs.

reusable? Packaging? Read-only, read-write? Active vs. passive? Cost?

StandardsEPC Global 64, 96 or 256-bit tags (Gen 2)? ISO-18000?

SC 31? Other?

Tag Data Content Format? How much data?

Encoding? Security & consumer privacy issues.

Tags

Frequencies Low 100-500 KHz; High 10-15 MHz; UHF 433 MHz (DoD), 850-950 MHz

(EPC); Microwave 2.4-5.8 GHz

Connectivity Middleware (ALE)? Impact on

existing systems? SCE application software requirements? Network I/

F’s: UCCnet, GDSN, other?

Hardware& Systems

Readers/Antennas How many? Where? Single read vs.

multiple reads (anti-collision)? Read range requirements? Item

speed(s)? Agile readers?

Other Existing AIDC technology? RFID impact and technical

requirements.

RFID Printer/Encoders How many? Where? Manual or

automatic tag application?

MOVING AHEAD WITH RFID

Business Partners Collaborate w/ suppliers, carriers &

customers who will be affected. Determine impact & requirements.

Process Impact Tag Placement –how, when & where? Application method? Verification method? How to

maximize read rates and accuracy?

Environment Tag readability testing (replicate

environment). Metals, liquids, temperature extremes, humidity,

line of sight?

Staffing Impact Training. Deployment, IT, &

Operations Cross-Functional RFID Team. Support?

Process


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PILOTTEST!

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PILOT TESTINGTag configuration/data content for case IDTag configuration/data content for pallet ID

Encoding equipment requirements & deployment planTag application method, equipment requirements &

deployment plan as applicableTag verification: location, reader, antennae requirements & performance specifications

Trading partner reader/antenna configuration & performance specifications

Establish technical & performance test standardsSelect & deploy equipment for testing - OR - select

supplier/integrator test facility Conduct tests

Review results & fine-tune investment packageSecure approval for program launch (or deferral)


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Accenture LtdAccuCode Inc

Accu-Sort SystemsAcsis

Active WaveAdvanced Data Capture

Advanced ID CorporationAhearn & Soper Inc

Airgate TechnologiesAlanco Technologies Inc

Alien TechnologyAmaTech USA

AmskanApriso

Argent Tape & Label IncASK

Atmel CorporationAvery Dennison

Avicon IncAVIDAWID

Axcess IncBalogh RFIDBearingPoint

Bibliotheca RFID Library Systems AGBritish Telecom (BT)

CAEN SpACanon Finetech

Cansec Systems LtdCap, Gemini, Ernst, & Young

Catalyst International IncCCL Label

Celis Semiconductor CorporationCheckpoint Systems

ClearOrbit IncClimarque LtdCodeway Ltd

Computer Sciences CorporationConnecTerra

CopyTag LimitedCross PointCrossLink

Cubic Transportation SystemsDatamax

Defywire Inc

Dynasys TechnologiesEDS

ELGABELPAS Ltd

EM MicroelectronicsEMS (Datalogic)

Enterprise Information SystemsESYNC

Etenna CorporationeXI Systems Inc

Farther SynergiesFeig Electronic GmbH

FlexchipFractal Antenna Systems

Franken PlastikFranwell Software Inc

FreedomPayFujitsu Limited

Gempuls International SAGenuOne Inc

Global IDGlobeRanger Corporation

HIDHighJump SoftwareHitachi Maxell LtdIBM Corporation

IconNicholson LLCID Systems Inc

Identec SolutionsIDMicro Inc

ImpinjIndala

Infineon Technologies AGInkode

InnovisionInside Contactless

Integrated Product Intelligence LtdIntel Corporation

Intellident LtdIntermec Technologies Corporation

International Paper Smart PackagingIntersoft

Kennedy GroupLakeWest Group

Legic Identsystems Ltd

Manhattan AssociatesMARC Global Systems LLC

Mark IVMeadWestvaco Intelligent Systems

Melexis NVMicrochip Technology Inc

Microsoft CorporationMiyakeMoba

Moore WallaceMu-Solutions Venture Co (Hitachi)

National LabelNCR CorporationNEC Corporation

NJM/CLI Packaging Systems IntlNorthern Apex RFID

OATSystems IncOdin Technologies

OmniTekOmron CorporationOpen Tag Systems

Optum IncOracle Corporation

OTI GlobalPaxar Corporation

Phase IV EngineeringPhillips (Koninklijke) Electronics

Plitek, LlcPower PaperPrintronix Inc

Provia SoftwarePsion-Techlogix

Quelis ID SystemsQueTelRafsec

RCD Technology CorporationRedPrairie Corporation

RF Code IncRF Saw Inc

RF TechnologiesRFID Inc

RSI ID TechnologiesSAIC

Samsung Electronics Company LtdSAMSys

SCS-CorporationSecura Key

Sefea (Swatch Group)Sensormatic (Tyco)

Sentinel IDServiant

Shipcom WirelessSiebel Systems

SIRIT IncSIS Technologies Ltd

SkyetekSmart Code Corporation

SoftronicaSovereign Tracking Systems LLC

ST Logic TrackStella

STMicroelectronics NVSun Microsystems Inc

Symbol Technologies IncSyscan

Tacit SolutionsTagMaster

TagsysTEK Industries

Texas Instruments - TI-RFidThingMagic

TIBCO Software IncTopFlight

Toppan Forms Co LtdToshiba Corporation

TransCore IncTraxus Technologies Inc

TrenstarTrivalent Solutions Inc

Trovan LtdTwo Technologies Inc

UnisysVeriSignViaera

Vizional Technologies IncWavetrend Technologies

webMethods IncWhereNet CorporationWJ Communications

X-ident Technology GmbH

WHO CAN I TURN TO?

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MOVING AHEAD WITH RFIDInsist that suppliers’ solutions provide a clear migration path for compliance with evolving standards.

Make sure that the systems you’re considering can be readily adapted to changing requirements.

Establish a phased program that enables you to walk before you run!


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Insanity is doing the same thing over & over again – & expecting different results. Ben Franklin

PARTING THOUGHTSRandom infusions of technology will merely leave the enterprise in greater disarray. James Borck

Build the business case & do it right, not over – the first time.


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RFID will prosper and flourish, not by replacing bar code, but by addressing the identification, serialization

and traceability challenges for which it provides superior

solutions.David Allais – April 27, 2009

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THANKS FOR SPENDING PART OF YOUR DAY WITH ME!

[email protected](831) 334-8111

John M. Hill

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demystifying rfid & automatic identification …aidc100.org/files/2012workshop-hill.pdf · the...

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