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Emerging Technologies: RFID. Kristi Meyer Suphaksorn Phamaranon Xiaohu Zhao. 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? - PowerPoint PPT Presentation

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  • Emerging Technologies: RFIDKristi MeyerSuphaksorn PhamaranonXiaohu Zhao

  • Topics to CoverGeneral RFID InformationDefinition, History, Technical InformationMarket Information ApplicationsWhy should general managers care about RFID?What are the benefits of implementation? What are the challenges to implementation?Case StudiesProblems, Concerns and Controversies

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

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

  • *What is RFID?A basic RFID system consists of three components: An antenna or coilA transceiver /reader (with decoder)A transponder (RF tag) electronically programmed with unique informationwww.automation.siemens.com/rfid/html_76/produkte_ws_ist_rfid.htm, viewed 10/8/07

  • Videohttp://www.aimglobal.org/services/RFIDSpotlight.asp

  • *The history of RFID19401950 Radar refined and used, major World War II development effort. RFID invented in1948.19501960 Early explorations of RFID technology, laboratory experiments.19601970 Development of the theory of RFID. Start of applications field trials.19701980 Explosion of RFID development. Tests of RFID accelerate. Very early adopter implementations of RFID.JEREMY LANDT The history of RFID PP10-11

  • *The history of RFID19801990 Commercial applications of RFID enter mainstream.19902000 Emergence of standards. RFID widely deployed. RFID becomes a part of everyday life.2000 RFID explosion continues

    JEREMY LANDT The history of RFID PP10-11

  • *The future evolution of RFID by primary application

    2000200320052008TransportAccess controlPaymentPassportAssetManagementSupply ChainLogisticsRetailLogisticsJEREMY LANDT The history of RFID PP10-11

  • *Types of RFIDPassive TagsObtain operating power from the readerTypically read onlyActive TagsAre powered by an internal batteryAre typically read/writeLow Frequency (125-134.2 KHz, 140-148.5 KHz)Short reading range (less than 1 ft), Security access, asset tracking, and animal ID applicationsHigh Frequency (13.56 MHz)Read from about 3 feet awayUltra High Frequency (868-928 MHz , 2.4- 2.5 GHz)Read from 10-300 feet awaywww.aimglobal.org/technologies/RFID/what_is_rfid.asp, viewed 10/8/07www.wikipedia.org/wiki/RFID, viewed 10/8/07www.fridjournal.com/fac/18/69, viewed 10/8/07

  • *Passive or Active Tagswww.infor.com, White Paper: How RFID Technology Can Enhance Your Asset Management Program, viewed 10/8/07Size range: Equivalent to a grain of pepper to a brick

    Passive Tags Active TagsCost Less expensive from a few cents to a few dollarsMore expensive often $20 or moreSize Smaller some as small as a grain of rice Larger- due to batteryPower Provided by readerProvided by batteryMaintenance None required Battery or tag replacement requiredUseful life Longer up to 20 years or moreShorter depends on battery lifeDistance at which tag can be read A few feet Up to hundreds of feetMemory Less memory (typically 16K)More memory (as high as 512K)

  • *Tag AttachmentAttachableApplied as adhesive stickerImplantableAnimal trackingVeriChip approved by US FDA in October 2004 for human implantation.Contains emergency medical information and could save lives and limit injuries in an emergency situationInsertionChip placed inside a deviceMobile Speed PassDigestibleEastman Kodak Company has 2 patents for monitoring the ingestion of medicinewww.wikipedia.org/wiki/RFID, viewed 10/8/07

  • *Reader/Writer TypesFixedMounted to stationary object, like doorwayTypically pass through applicationsLocation and work-in-processSmart shelvesPortableHand held device, similar to barcode readersAffixed to moving object like fork truckwww.infor.com, White Paper: How RFID Technology Can Enhance Your Asset Management Program, viewed 10/8/07http://www.rfidsupplychain.com/Detail.bok?no=184, viewed 10/30/2007

  • How is Data Encoded on Tags?At time of tag productionThis 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 printerData is transmitted to the tag through the RF frequency.

  • *Difference from BarcodesDo not require contact or line of sight for communication. Can read through the human body, clothing and non-metallic materials.Can be read and write or be reprogrammedCan read multiple tags simultaneously.1000 tags/secondMore expensive tags and reading equipmentMore data can be stored on RFID than barcodeCan exchange information 2-ways for advantages in interactive applications such as work-in- process and maintenance tracking.www.aimglobal.org/technologies/RFID/what_is_rfid.asp, viewed 10/8/07www.infor.com, White Paper: How RFID Technology Can Enhance Your Asset Management Program, viewed 10/8/07

  • *Transponder Construction formatsGlass housingDisk and CoinPlastic housingSmart labelID-1 format (Credit card)Coil-on-chipOther formatshttp://www.speakingeye.com/index.php?lay=show&ac=article&Id=401359&Ntype=2, viewed 10/25/07

  • *Topics to CoverGeneral RFID InformationDefinition, History, Technical InformationMarket Information ApplicationsWhy should general managers care about RFID?What are the benefits of implementation?What are the challenges to implementation?Case StudiesProblems, Concerns and Controversies

  • *RFID Stock Index RFID Monthly September 2007RFID Index refers to entire RFID industry. Included companies such as Avery, Dennison, Zebra & NCR.

    Chart1

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    RFID Index

    S&P 500

    NASDAQ

    Sheet1

    RFID IndexS&P 500NASDAQ

    September/05100100100

    October/05989796

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  • *RFID MarketSizeJuly 23, 2007 - RFID, LTD. (OTC: RFDL) releases updated industry metrics for the Radio Frequency Identification (RFID) market.billion dollarNow 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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    20074.961.83

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    201212.35

  • *Market Survey InformationMore companies seeing benefit beyond supply chain applicationsMichael Liard, director of Applied BiosystemsAsset Management, Security Access Control, Inventory ManagementWhile increasing number of companies have implemented RFID or are considering it, the main driver for adopting the technology is from downstream demandsReluctance 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 10/30/07N=175

  • *Topics to CoverGeneral RFID InformationDefinition, History, Technical InformationMarket Information ApplicationsWhy should general managers care about RFID?What are the benefits of implementation?What are the challenges to implementation?Case StudiesProblems, Concerns and Controversies

  • *Access control/ Personal IDAccess controlBuilding Access Time AttendanceHuman Resource ManagementPersonal Identificatione-Passporte-Citizenhttp://www.speakingeye.com/index.php?lay=show&ac=article&Id=401359&Ntype=2, viewed 10/25/07

  • *Member card/ e-TicketCredit card/ debit cardToll Tagse-Tickete-Purchasinghttp://www.speakingeye.com/index.php?lay=show&ac=article&Id=401359&Ntype=2, viewed 10/25/07

  • *Supply Chain Management/ LogisticsSupply Chain ManagementWarehouse ManagementCargo ManagementLogisticshttp://www.speakingeye.com/index.php?lay=show&ac=article&Id=401359&Ntype=2, viewed 10/25/07

  • *Animal TaggingNational Animal IdentificationFood TraceabilityDisease Controlhttp://www.speakingeye.com/index.php?lay=show&ac=article&Id=401359&Ntype=2, viewed 10/25/07

  • *e-Seal and anti-tamperBolt Seal Security TagElectronically secures ocean containers, air cargo ULD containers, trailersMonitor presence and integrity of bolt seal, generates alarm upon bolt removal or breakage Re-usable tagReduces manual inspections Minimizes theft, loss and tampering

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

  • *e-Seal and anti-tamperhttp://www.speakingeye.com/index.php?lay=show&ac=article&Id=401359&Ntype=2, viewed 10/25/07

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

  • *Topics to CoverGeneral RFID InformationDefinition, History, Technical InformationMarket Information ApplicationsWhy should general managers care about RFID?What are the benefits of implementation?What are the challenges to implementation?Case StudiesProblems, Concerns and Controversies

  • *BenefitsInventory CostingAble to assign cost of items sold using Specific Identification Method (SIM)Most accurate, but most expensive to implement because tracking of individual items is required.RFID enables SIM without high labor costLabor Cost ReductionLess labor required for inventory managementBetter accuracy for inventory dataRevenue CreationAvoid stock outs.Raise brand awareness.Improve Efficiencies

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

  • *Challenges of ImplementationSignificant Investment to ImplementReaders- $500-2000 eachAntennae- $250 (or more) eachTags- $0.05 to $0.20 (or more) eachDepends on type and order quantitySoftware/ Infrastructure for data collectionPotentially 50% of total costAssociated costs of project implementationWiring physical installationProject laborLarge financial hurdle to overcomeLimited resources (knowledgeable people) available to implementAbility to handle the flood of additional information available with RFIDLin, 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 10/8/07Markelevich, A. and Bell, R., RFID: The Changes It Will Bring Strategic Finance, August 2006, pp 46-49.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.

  • *Data StandardizationProprietary or Standard?Amount of data on tag96-bit to 2KBSingle use or re-writableEach country has own guidelines (and governing bodies) for frequency allocation.www.wikipedia.org/wiki/RFID, viewed 10/8/07www.rfidjournal.com/faq/28/133http://www.epcglobalinc.org/home, viewed 10/30/2007EPCglobal working on international standardsEPC- Electronic Product CodeEPC Gen2 standard approved in Dec 2004, and is likely to be backbone of passive RFID standards going forward.http://www.epcglobalinc.org/standards/uhfc1g2/uhfc1g2_1_1_0-standard-20071017.pdfISO (International Standards Organization) also developing standardsISO18000-3, ISO18000-6

  • *Topics to CoverGeneral RFID InformationDefinition, History, Technical InformationMarket Information ApplicationsWhy should general managers care about RFID?What are the benefits of implementation? What are the challenges to implementation?Case StudiesProblems, Concerns and Controversies

  • *Case StudiesVehicles in ChinaWal-MartDepartment of DefenseJacobi Medical Center, New York CityDelta Airlines

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

  • Vehicle management in ChinaInstall RFID tag in front of the public busFixed reader installed in a majority of main roadWhen bus is approaching the crossingSystem automatically adjust the traffic lightIncrease public bus operation efficiency 60%*

  • *Wal-MartRFID implementation resulted in as much as $8 Billion savings (pre-tax) by 200716% reduction in out-of-stocksOut-of-stock items replenished 3x faster than non-RFID items.Reduction in manual ordersReduction in excess inventoryLin, P. and Brown, K., Radio Frequency Identification and How to Capitalize on It The CPA Journal, July 2006, pp 34-37.

  • *Department of DefenseArmy lost $1.2 billion in materials that werent received in the field.Orders typically were hand written in the field2003 mandated its suppliers use RFID by January 2005New system expect to shave 27 days from supply chain, and improve accuracyFrom 33 to 5 daysMarkelevich, A. and Bell, R., RFID: The Changes It Will Bring Strategic Finance, August 2006, pp 46-49.Lin, P. and Brown, K., Radio Frequency Identification and How to Capitalize on It The CPA Journal, July 2006, pp 34-37.

  • *Jacobi Medical CenterUsed wristbands embedded with RFID for admitted patients.Doctors and nurses used portable reader to review and edit records.Eliminated many keystrokesSaved time (1 hour / shift for nurses)Prevented errorsDid not need to wake patient, even if sleeping on band.Cost: $325K to implement + $65K 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.

  • *Delta AirlinesBaggage Handling~25% of complaints due to lost/mishandled luggage.Annual cost of reclaiming luggage, and compensating customers: > $100 MillionImplementation cost: $15-25 Billion.Trial results- 99.8% success rate

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

  • *Topics to CoverGeneral RFID InformationDefinition, History, Technical InformationMarket Information ApplicationsWhy should general managers care about RFID?What are the benefits of implementation?What are the challenges to implementation?Case StudiesProblems, Concerns and Controversies

  • *Problems and ConcernsReader collisionSignal from 2 or more readers overlapSignal interferenceMultiple reading of the same tagOver come by strategic positioning of readers & systems/procedures to avoid multiple reading of tagsTag collisionLarge volume of tags must be read in the same areaProgramming to allow for gaps, so time is available for all tagsSignal disruptionMore powerful electromagnetic signal interferes or overpowers reader.Covert readersReading of tags by unintended sources (corporate espionage, invasion of personal privacy)Blocker tags and tag killingHidden tagsTags in purchases left active and read by retailer (or others) laterLin, P. and Brown, K., Radio Frequency Identification and How to Capitalize on It The CPA Journal, July 2006, pp 34-37.

  • *Controversies

    www.wikipedia.org/wiki/RFID, viewed 10/8/07Security ConcernsVirusesIllicit tracking of RFID tagsOwner of item may not be aware of tagBecomes possible to gather sensitive information from individualThieves potentially being able to read contents of house remotelyCancer Risk for implantationSept 2007 study released indicating that RFID chips induced malignant tumors in laboratory animalsUS FDA- no responseStudies somewhat limited in scope, no control groups, didnt test large animalsLed to cautionary language regarding cancer in humansMark of the Beast (666)Primarily Evangelical ChristiansMentioned in Book of Revelations (see Rev 13:16)

  • *Questions?

    ***********On September 17, Bairds RFID Index was up 2.96% versus August 15. The index was in line with the NASDAQ (+2.96%) andunderperformed the S&P 500 (+5.0%). Of companies under Baird Supply Chain Technology coverage, none outperformed the threeindices. Zebra Technologies rose 2.54% versus the prior month and NCR gained 1.50%. Shares of Avery Dennison (-3.66%),ScanSource (-6.27%) and Intermec (-6.67) declined versus August 15. Stocks that outperformed the indices included ID Systems(+24.74%), Sun Microsystems (+22.37%), Sirit (+19.67%), Axcess (+15.38%) and Philips (+14.36%). Big movers that

    *We knew the Chinese economy is booming, but now, IDTechEx is saying that China "has become the world's largest market for RFID" by value. In 2007, the spend on RFID in East Asia will be $2.7 billion of $4.96 billion spent globally. The majority of this - $1.9 billion - is just in China. This is because of a peak in delivery of contactless national identification cards in China prior to the 2008 Olympics, reports IDTechEx, an independent research company.About $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.

    Full Text(176 words)Copyright Japan Corporate News Network Dec 19, 2006 Staff Writer, [email protected], Dec 19, 2006 - (JCN) - Yano Research Institute conducted a market research on wireless IC tags (RFID) by interviewing companies about their strategies, their views on the market, and application development issues. Based on the research results, the company has projected market trends up to 2010.The RFID market grew steadily from 1.06 million units in 2002 to 1.34 million units in 2003, 1.58 million units in 2004, and 2.17 million units in 2005. The market is expected to continue grow, reaching 3.2 million units in 2006, 5.15 million units in 2007, and 1.792 billion units in 2010.In 2006, high demands came from logistics sectors (transportation and storage), which counted for 26.6% of sales, followed by the manufacturing sector (21.9%) and the distribution sector (15.6%), including retailers.Growth in demand from 2007 to 2010 will be mainly driven by POS and other commodity management applications, including delivery services, distribution labels, and traceability and SCM tags.

    2005 $1.95 billion Approximately 1.8 billion RFID tags have been sold up to 20052.71 2006 4.97 200712.35 2012$1 billion in 2003 **Extra Future Store- Rheinbert, Germany. All shelves have RFID readers, all items tagged. Carts have RFID readers and will communicate sales promotions and items of interest to the consumer based on cart contents.*Security Read range of the tags in the working environment is often well below the actual specifications of the tags and readers, which are usually generated from tests conducted in ideal conditions. This reduction in read range is due to many environmental factors in the workplace that affect the signal.

    Hardware and consumable costs currently can be very prohibitive for a lot of manufacturers particularly due to leaner margins. This is not to say that in the short term that these firms are not able to take advantage of existing solutions. It comes back to knowing what you want to do and how RFID will be a benefit, Hecke said. When the cost of RFID is reduced it will be a more inviting environment for most companies to take advantage of this data capture technology.

    Interference in the reading of tags comes from metal objects either obstructing or contact the tag itself. It is possible to use specialised tags for attaching to metal objects however it is always best to evaluate the work environment prior to finalising tag type. The main limitation that organisations will encounter, says Kemp, is the project budget. The best way to overcome many of these issues is to go through a proof of concept phase where the environment can be simulated to ensure the components achieve the results required. It means a relatively small cost initially for the organisation prior to committing to the project fully, Kemp said.*********