emerging technologies: rfid kristi meyer suphaksorn phamaranon xiaohu zhao

Emerging Technologies: Emerging Technologies: RFIDRFID

Kristi MeyerKristi Meyer

Suphaksorn PhamaranonSuphaksorn Phamaranon

Xiaohu ZhaoXiaohu Zhao

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Topics to Cover

General RFID Information Definition, History, Technical Information

Market Information Applications Why should general managers care about

RFID? What are the benefits of implementation? What are the challenges to implementation?

Case Studies Problems, Concerns and Controversies

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RFID- DefinedRFID- Defined

““Radio-frequency identification (RFID)Radio-frequency identification (RFID) is is an automatic identification method, relying an automatic identification method, relying on storing and remotely retrieving data on storing and remotely retrieving data using devices …that can be applied to or using devices …that can be applied to or incorporated into a product, animal or incorporated into a product, animal or person for the purpose of identification person for the purpose of identification using radio waves.”using radio waves.”

www.wikipedia.org/wiki/RFID, viewed 10/8/07

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What is RFID?What is RFID?

A basic RFID A basic RFID system system consists of consists of three three components: components:

An antenna or An antenna or coilcoil

A transceiver A transceiver /reader (with /reader (with decoder)decoder)

A transponder A transponder (RF tag) (RF tag) electronically electronically programmed programmed with unique with unique informationinformation

www.automation.siemens.com/rfid/html_76/produkte_ws_ist_rfid.htm, viewed 10/8/07

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Video

http://www.aimglobal.org/services/RFIDSpotlight.asp

RFID Video.wmv

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The history of RFIDThe history of RFID

1940–1950 1940–1950 Radar refined and used, major World War II development effort. Radar refined and used, major World War II development effort.

RFID invented in1948.RFID invented in1948. 1950–1960 1950–1960

Early explorations of RFID technology, laboratory experiments.Early explorations of RFID technology, laboratory experiments. 1960–1970 1960–1970

Development of the theory of RFID. Start of applications field Development of the theory of RFID. Start of applications field trials.trials.

1970–1980 1970–1980 Explosion of RFID development. Tests of RFID accelerate. Very Explosion of RFID development. Tests of RFID accelerate. Very

early adopterearly adopter implementations of RFID.implementations of RFID.

JEREMY LANDT “The history of RFID” PP10-11

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The history of RFIDThe history of RFID

1980–1990 1980–1990 Commercial applications of RFID enter mainstream.Commercial applications of RFID enter mainstream.

1990–2000 1990–2000 Emergence of standards. RFID widely deployed. RFID becomes Emergence of standards. RFID widely deployed. RFID becomes

a part of everydaya part of everyday life.life. 2000– 2000–

RFID explosion continuesRFID explosion continues


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The future evolution of RFID by primary The future evolution of RFID by primary applicationapplication

2000 2003 2005 2008

Transport

Access control

Payment

Passport

AssetManagement

Supply ChainLogistics

RetailLogistics


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Types of RFIDTypes of RFID

Passive TagsPassive Tags Obtain operating Obtain operating

power from the power from the readerreader

Typically read Typically read onlyonly

Active TagsActive Tags Are powered by Are powered by

an internal batteryan internal battery Are typically Are typically

read/writeread/write

Low Frequency Low Frequency (125-134.2 KHz, (125-134.2 KHz, 140-148.5 KHz)140-148.5 KHz) Short reading range (less than 1 ft), Short reading range (less than 1 ft), Security access, asset tracking, and Security access, asset tracking, and

animal ID applicationsanimal ID applications

High Frequency High Frequency (13.56 MHz)(13.56 MHz) Read from about 3 feet awayRead from about 3 feet away

Ultra High Frequency Ultra High Frequency (868-928 (868-928 MHz , 2.4- 2.5 GHz)MHz , 2.4- 2.5 GHz) Read from 10-300 feet awayRead from 10-300 feet away

www.aimglobal.org/technologies/RFID/what_is_rfid.asp, viewed 10/8/07


www.fridjournal.com/fac/18/69, viewed 10/8/07

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Passive or Active TagsPassive or Active Tags

Passive Tags Active Tags

Cost Less expensive – from a few cents to a few dollars

More expensive – often $20 or more

Size Smaller – some as small as a grain of rice Larger- due to battery

Power Provided by reader Provided by battery

Maintenance None required Battery or tag replacement required

Useful life Longer – up to 20 years or moreShorter – depends on battery life

Distance at which tag can be read A few feet Up to hundreds of feet

Memory Less memory (typically 16K)More memory (as high as 512K)

www.infor.com, White Paper: How RFID Technology Can Enhance Your Asset Management Program, viewed 10/8/07

Size range: Equivalent to a grain of pepper to a brickSize range: Equivalent to a grain of pepper to a brick

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Tag AttachmentTag Attachment AttachableAttachable

Applied as adhesive “sticker”Applied as adhesive “sticker” ImplantableImplantable

Animal trackingAnimal tracking VeriChip approved by US FDA in October 2004 for human VeriChip approved by US FDA in October 2004 for human

implantation.implantation. Contains emergency medical information and “could save lives and Contains emergency medical information and “could save lives and

limit injuries” in an emergency situationlimit injuries” in an emergency situation InsertionInsertion

Chip placed inside a deviceChip placed inside a device Mobile Speed PassMobile Speed Pass

DigestibleDigestible Eastman Kodak Company has 2 patents for monitoring the Eastman Kodak Company has 2 patents for monitoring the

ingestion of medicineingestion of medicine


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Reader/Writer TypesReader/Writer Types

FixedFixed Mounted to stationary object, like doorwayMounted to stationary object, like doorway Typically “pass through” applicationsTypically “pass through” applications Location and work-in-processLocation and work-in-process ““Smart shelves”Smart shelves”

PortablePortable Hand held device, similar to barcode readersHand held device, similar to barcode readers Affixed to moving object like fork truckAffixed to moving object like fork truck


http://www.rfidsupplychain.com/Detail.bok?no=184, viewed 10/30/2007

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How is Data Encoded on Tags?

At time of tag production This type of information is static, not specific

to the product it is later attached to. Physical connection to writer or printer.

The tag device is physically connected to enable the data to be transferred to the tag.

Wireless connection to writer or printer Data is transmitted to the tag through the RF

frequency.

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Difference from BarcodesDifference from Barcodes Do not require contact or line of sight for communication. Do not require contact or line of sight for communication. Can read through the human body, clothing and non-Can read through the human body, clothing and non-

metallic materials.metallic materials. Can be read and write or be reprogrammedCan be read and write or be reprogrammed Can read multiple tags simultaneously.Can read multiple tags simultaneously.

1000 tags/second1000 tags/second

More expensive tags and reading equipmentMore expensive tags and reading equipment More data can be stored on RFID than barcodeMore data can be stored on RFID than barcode Can exchange information 2-ways for advantages in Can exchange information 2-ways for advantages in

interactive applications such as work-in- process and interactive applications such as work-in- process and maintenance tracking.maintenance tracking.

www.aimglobal.org/technologies/RFID/what_is_rfid.asp, viewed 10/8/07


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Transponder Construction formats

Glass housing Disk and Coin Plastic housing Smart label ID-1 format

(Credit card) Coil-on-chip Other formats

http://www.speakingeye.com/index.php?lay=show&ac=article&Id=401359&Ntype=2, viewed 10/25/07

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RFID Stock Index RFID Stock Index

RFID Monthly September 2007

RFID Index refers to entire RFID industry. Included companies such as Avery, Dennison, Zebra & NCR.

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RFID MarketRFID MarketSizeSize

July 23, 2007 - RFID, LTD. (OTC: RFDL) releases updated industry metrics for the Radio Frequency Identification (RFID) market.

bill

ion

do

llar

Now the biggest RFID market is in ChinaThis is because of a peak in delivery of contactless national identification cards in China prior to the 2008 OlympicsAbout $1.65 billion is being spent on 300 million of these cards plus their associated systems being delivered in 2007 out of a project commitment of $6 billion, the largest of any RFID project in the world.

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Market Survey Information

More companies seeing benefit beyond supply chain applications

Michael Liard, director of Applied Biosystems

Asset Management, Security Access Control, Inventory Management

While increasing number of companies have implemented RFID or are considering it, the main driver for adopting the technology is from downstream demands

Reluctance to take on project due to cost and concerns about ROI.

http://www.foodproductiondaily-usa.com/news/ng.asp?n=78308-abi-rfid-tracking, viewed 10/30/07

N=175

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Access control/ Personal ID

Access control Building Access Time Attendance Human Resource

Management Personal Identification e-Passport e-Citizen


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Member card/ e-Ticket

Credit card/ debit card Toll Tags e-Ticket e-Purchasing


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Supply Chain Management/ Logistics

Supply Chain Management

Warehouse Management Cargo Management Logistics


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Animal Tagging

National Animal Identification

Food Traceability Disease Control


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e-Seal and anti-tamper

Bolt Seal Security Tag Electronically secures ocean containers, air

cargo ULD containers, trailers Monitor presence and integrity of bolt seal,

generates alarm upon bolt removal or breakage Re-usable tag Reduces manual inspections Minimizes theft, loss and tampering


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e-Seal and anti-tamper


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Electronics Immobilization


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BenefitsBenefits

Inventory CostingInventory Costing Able to assign cost of items sold using Specific Identification Able to assign cost of items sold using Specific Identification

Method (SIM)Method (SIM) Most accurate, but most expensive to implement because tracking Most accurate, but most expensive to implement because tracking

of individual items is required.of individual items is required. RFID enables SIM without high labor costRFID enables SIM without high labor cost

Labor Cost ReductionLabor Cost Reduction Less labor required for inventory managementLess labor required for inventory management Better accuracy for inventory dataBetter accuracy for inventory data

Revenue CreationRevenue Creation Avoid stock outs.Avoid stock outs. Raise brand awareness.Raise brand awareness.

Improve EfficienciesImprove Efficiencies

Markelevich, A. and Bell, R., “RFID: The Changes It Will Bring” Strategic Finance, August 2006, pp 46-49.

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Challenges of ImplementationChallenges of Implementation

Significant Investment to ImplementSignificant Investment to Implement Readers- $500-2000 eachReaders- $500-2000 each Antennae- $250 Antennae- $250 (or more)(or more) each each Tags- $0.05 to $0.20 Tags- $0.05 to $0.20 (or more)(or more) each each

Depends on type and order quantityDepends on type and order quantity Software/ Infrastructure for data collectionSoftware/ Infrastructure for data collection

Potentially 50% of total costPotentially 50% of total cost Associated costs of project implementationAssociated costs of project implementation

Wiring – physical installationWiring – physical installation Project laborProject labor

Large financial hurdle to overcomeLarge financial hurdle to overcome Limited resources (knowledgeable people) available to implementLimited resources (knowledgeable people) available to implement Ability to handle the flood of additional information available with RFIDAbility to handle the flood of additional information available with RFID

Lin, P. and Brown, K., “Radio Frequency Identification and How to Capitalize on It” The CPA Journal, July 2006, pp 34-37.

www.rfidjournal.com/faq/16/54, viewed 10/8/07


Lin, D., Barton, R., Bi, H., and Freimer, M., et al, “Challenges in RFID Enabled Supply Chain Management” Quality Progress, November 2006, pp 23-28.

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Data StandardizationData Standardization Proprietary or Standard?Proprietary or Standard? Amount of data on tagAmount of data on tag

96-bit to 2KB96-bit to 2KB Single use or re-writableSingle use or re-writable Each country has own guidelines (and Each country has own guidelines (and

governing bodies) for frequency allocation.governing bodies) for frequency allocation.


www.rfidjournal.com/faq/28/133

http://www.epcglobalinc.org/home, viewed 10/30/2007

EPCglobal working on international standardsEPCglobal working on international standards EPC- Electronic Product CodeEPC- Electronic Product Code EPC Gen2 standard approved in Dec 2004, and EPC Gen2 standard approved in Dec 2004, and

is likely to be backbone of passive RFID is likely to be backbone of passive RFID standards going forward.standards going forward. http://www.epcglobalinc.org/http://www.epcglobalinc.org/

standards/uhfc1g2/standards/uhfc1g2/uhfc1g2_1_1_0-standard-uhfc1g2_1_1_0-standard-20071017.pdf20071017.pdf

ISO (International Standards Organization) also ISO (International Standards Organization) also developing standardsdeveloping standards ISO18000-3, ISO18000-6ISO18000-3, ISO18000-6

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Case StudiesCase Studies

Vehicles in ChinaVehicles in China Wal-MartWal-Mart Department of Department of

DefenseDefense Jacobi Medical Jacobi Medical

Center, New York Center, New York CityCity

Delta AirlinesDelta Airlines

www.automation.siemens.com/rfid/html_76/presse_fotos.htm, viewed 10/8/07

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Vehicle management in ChinaVehicle management in China

Install RFID tag in front of the public busInstall RFID tag in front of the public bus Fixed reader installed in a majority of main Fixed reader installed in a majority of main

roadroad When bus is approaching the crossingWhen bus is approaching the crossing System automatically adjust the traffic lightSystem automatically adjust the traffic light Increase public bus operation efficiency 60%Increase public bus operation efficiency 60%

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Wal-MartWal-Mart

RFID implementation resulted in as much RFID implementation resulted in as much as $8 Billion savings (pre-tax) by 2007as $8 Billion savings (pre-tax) by 2007

16% reduction in out-of-stocks16% reduction in out-of-stocks Out-of-stock items replenished 3x faster Out-of-stock items replenished 3x faster

than non-RFID items.than non-RFID items. Reduction in manual ordersReduction in manual orders

Reduction in excess inventoryReduction in excess inventory


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Department of DefenseDepartment of Defense

Army lost $1.2 billion in materials that Army lost $1.2 billion in materials that weren’t received in the field.weren’t received in the field.

Orders typically were hand written in the Orders typically were hand written in the fieldfield

2003 mandated its suppliers use RFID by 2003 mandated its suppliers use RFID by January 2005January 2005

New system expect to shave 27 days from New system expect to shave 27 days from supply chain, and improve accuracysupply chain, and improve accuracy From 33 to 5 daysFrom 33 to 5 days



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Jacobi Medical CenterJacobi Medical Center

Used wristbands embedded with RFID for admitted Used wristbands embedded with RFID for admitted patients.patients.

Doctors and nurses used portable reader to review and Doctors and nurses used portable reader to review and edit records.edit records.

Eliminated many keystrokesEliminated many keystrokes Saved time (1 hour / shift for nurses)Saved time (1 hour / shift for nurses) Prevented errorsPrevented errors

Did not need to wake patient, even if sleeping on band.Did not need to wake patient, even if sleeping on band. Cost: $325K to implement + $65K annuallyCost: $325K to implement + $65K annually Estimated savings $1M annuallyEstimated savings $1M annually

Miller, J., “Criteria for Evaluating RFID Solutions for Records and Information” The Information Management Journal, January/February 2007, pp 50-54.

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Delta AirlinesDelta Airlines

Baggage HandlingBaggage Handling ~25% of complaints due to ~25% of complaints due to

lost/mishandled luggage.lost/mishandled luggage. Annual cost of reclaiming luggage, and Annual cost of reclaiming luggage, and

compensating customers: > $100 Millioncompensating customers: > $100 Million Implementation cost: $15-25 Billion.Implementation cost: $15-25 Billion. Trial results- 99.8% success rateTrial results- 99.8% success rate

Anonymous., “Delta Air Lines and baggage handling” Strategic Direction, Vol. 22 No. 6, pp 22-24.

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Problems and ConcernsProblems and Concerns Reader collisionReader collision

Signal from 2 or more readers overlapSignal from 2 or more readers overlap Signal interferenceSignal interference Multiple reading of the same tagMultiple reading of the same tag Over come by strategic positioning of readers & systems/procedures to Over come by strategic positioning of readers & systems/procedures to

avoid multiple reading of tagsavoid multiple reading of tags Tag collisionTag collision

Large volume of tags must be read in the same areaLarge volume of tags must be read in the same area Programming to allow for “gaps”, so time is available for all tagsProgramming to allow for “gaps”, so time is available for all tags

Signal disruptionSignal disruption More powerful electromagnetic signal interferes or overpowers reader.More powerful electromagnetic signal interferes or overpowers reader.

Covert readersCovert readers Reading of tags by unintended sources (corporate espionage, invasion Reading of tags by unintended sources (corporate espionage, invasion

of personal privacy)of personal privacy) Blocker tags and tag killingBlocker tags and tag killing

Hidden tagsHidden tags Tags in purchases left active and read by retailer (or others) laterTags in purchases left active and read by retailer (or others) later


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ControversiesControversies


Security ConcernsSecurity Concerns VirusesViruses Illicit tracking of RFID tagsIllicit tracking of RFID tags

Owner of item may not be aware of tagOwner of item may not be aware of tag Becomes possible to gather sensitive information from individualBecomes possible to gather sensitive information from individual

Thieves potentially being able to “read” contents of house remotelyThieves potentially being able to “read” contents of house remotely Cancer Risk for implantationCancer Risk for implantation

Sept 2007 study released indicating that RFID chips induced malignant Sept 2007 study released indicating that RFID chips induced malignant tumors in laboratory animalstumors in laboratory animals US FDA- no responseUS FDA- no response Studies somewhat limited in scope, no control groups, didn’t test large Studies somewhat limited in scope, no control groups, didn’t test large

animalsanimals Led to cautionary language regarding cancer in humansLed to cautionary language regarding cancer in humans

Mark of the Beast (666)Mark of the Beast (666) Primarily Evangelical ChristiansPrimarily Evangelical Christians Mentioned in Book of Revelations (see Rev 13:16)Mentioned in Book of Revelations (see Rev 13:16)

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Questions?

emerging technologies: rfid kristi meyer suphaksorn phamaranon xiaohu zhao

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