radio frequency identification technology/applications

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1 Radio Frequency Identification Technology/Applications Presented by MICHAEL OHANIAN

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Page 1: Radio Frequency Identification Technology/Applications

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  Radio Frequency Identification Technology/Applications

Presented by MICHAEL OHANIAN

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INFORMATION SOURCES

• Aim Global & RFID Organization

• RFID Connections Newsletter

• RFID Smart Labels USA – Westin Copley Place, Boston March 27-30

• RFID Handbook by Klaus Finkenzeller

• Shrouds of Time – A History of RFID Systems by Dr. Jerry Landt

• RFID in the Enterprise

• RFID: Applications, Security and Privacy

• RFID Journal

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 • “Nothing great was ever achieved without enthusiasm”

by Ralph Waldo Emerson

• We have a great many developments to look forward to, history continues to teach us that

• Exciting times await those of us committed to the pursuit of advancement in RFID

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RFID Overview

• RFID market is forecast to reach $7.3B by 2008*• Reasons for the high growth

– Lowering tag prices– Increased range and accuracy of readers– Maturity of network infrastructure for easy deployment– Applications capable of delivering increased value

from an RFID deployment – Supply Chain Management– Network Operations

*Source: IDTechEx Ltd

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What is RFID Technology?

• RFID (Radio Frequency Identification) is a technology that involves tags that emit radio signals and devices called readers that pick up signals

• RFID tags consist of a chip for holding data and an antenna for communicating data through radio waves

• The reach of RFID signals depends on the kind of chip (frequency) but is usually from several inches to 200+ feet

• EPC Code

AntennaChip

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What is RFID Technology?

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Real-time Automatic Identification and Data Collection Technology Capabilities

Level of Automation

Cost ($)

Other SatelliteGPS

Real-time locating systems (RTLS)

Two-way active RFID

Active beacon RFID

Short range passive RFID

Very short range passive RFIDBar code

Manual entry

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Cost ($)

Level of Automation

Software

Applic

ations

Inte

gratio

n

Softw

are

Network

Value is to Combine Technology Clusters Together to Feed a Network

Hardware

Netw

ork

ActiveRFID

Satellite

Passive RFID

BarCode

Integrated RFID-Based AIDC NetworksIntegrated RFID-Based AIDC Networks

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A Typical RFID Network Includes…

Applications for user interaction

Enterprise systems for coordinated decision making

Local systems for site coordination

ZONES

APPLICATIONS

Distribution CenterWarehouseManufacturer Store

Web Browser AlertsEnterprise Software

ENTERPRISE Other Enterprise

SITES

ASSETS

RFID readers

RFID tags (Active or EPC/Passive)

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Passive RFID

– Increased “chokepoint” size allows more variety of scenarios (e.g. identification of assets moved by forklifts)

– Limited data (EPC = 96 bits)– Time to collect multiple tags increases with number of tags to collect,

reducing the allowed speed of assets– Due to “short” range, multiple readers are required for good coverage

in chokepoint– Inexpensive

Example tag:

EPC Class 0+16 ft (5m)

TaggedAsset

TaggedAsset

TaggedAsset

TaggedAsset

2 Readers

4 Antennas

2 Readers

4 Antennas

To “System”

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Active RFID

• Long Range (100+m)• Data Rich• Logic on tag• Two-way communications• Costs more

Reader

TaggedAsset

TaggedAsset

TaggedAsset

TaggedAsset

TaggedAsset

100+m

TaggedAsset

TaggedAsset

TaggedAsset

TaggedAsset

To “System”

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RFID GOALS

• Faster Checkouts• Improved in-stock positions• Better information• Faster payment • Reduced inventory requirements• Shipping errors

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BUSINESS VALUE

“The most important metrics in driving ROI include reducing inventory costs and cycle times along with improving fill rates and the visibility of information on production, delivery, shipment and maintenance.”

“Supply Chain Software Yields ROI: But It Takes Time,” AMR Research

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Market Drivers - Wal-Mart

“Capturing data is one thing – using it to improve business processes is the key. In order to be successful – data has to be in sync.”

– Wal-Mart RFID Guidelines

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Trying to Answer basic questions…… Where is my shipment 4711?

Which Network Card had gone down and what is the Serial Number Genealogy?

Where is my inventory?

How can I avoid fire fighting?

How good is our customer service?

The Business Challenge

The Business Challenge

• Heterogeneous Systems

• Legacy Systems

• Islands of Data and Automation

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See into all your warehouses

Receive real-time notification when a critical event occurs

Track Material’s in Transit

Be alerted when a Service Plan is going to be delayed

Measure how well your extended services are running

Imagine if you Can… Imagine if you Can…

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Key Drivers

• Increased Accuracy of information on locationand status of good within the Network supply chain – from manufacturing to final install– Tighter inventory turns– Lower defects– Higher Network up-time– Increased revenue, greater customer satisfaction

• Reduction of human labor– Counts and recounts, lower operating expense

““Goal: Continuous 100% visibility of all Goal: Continuous 100% visibility of all assets within an enterprise or supply chain assets within an enterprise or supply chain

with no human intervention”with no human intervention”

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RFID NLM involves

Automated IdentificationBarcode, RFID etc.

Mobility

ERP, Network Support

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External Impact from RFID

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RFID is being pervasively implemented throughout the value chain.

Su

pp

liers

Mfg. Plant

Sale

s &

M

ark

eti

ng

Mfg

.

Su

pp

ly

Ch

ain

M

an

ag

em

en

t

Pro

du

ct

Deve

lop

men

t

Manufacturing

3PL/Direct Logistics

Retailers

Sale

s &

M

ark

eti

ng

Sto

re

Op

era

tio

ns

Inve

nto

ry

Man

ag

em

en

t

Pu

rch

asi

ng

Reduce inventory shrinkage

Increase asset visibility

Reduce missed sales opportunities

Improve buying experience

Improve distribution efficiency

Lower WIP and safety stock

Backen

d

Inve

nto

ryB

acken

d

Inve

nto

ry

Mfg. Plant

Mfg. Plant

Denotes RFID Benefit

RFID and the Extended Supply ChainRFID and the Extended Supply Chain

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The solutions will provide end-to-end capabilities throughout the supply chain, across organizational boundaries and across multiple database platforms.

• Software applications will support highly complex manufacturing environments

• Dynamic modeling, monitoring and management of all resources

• Comprehensive decision management support at all levels

• Real-time synchronization amongst offices, manufacturing and supply chain partners

• Visibility into real-time status of production resources

• Real-time manufacturing applications to manage closed loop automation

RFID and ManufacturingRFID and Manufacturing

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Technology Value Pyramid

Required Data

Legacy and/or ERP

Structure/Format

Which Technologies ?

Mobility, RFID, Bio-metrics, GPS etc.

Value From

+

People

Data

Technology

Process

Work Flow vs. ERP

Distributive Decision making

Behavior & Education

Supply Chain Applications

Partners

Map collaborative processes

Improved cost/revenue performance

Technology like RFID by itself cannot accomplish anything without integrating with Data, People, and Processes

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• In the end, it all comes down to competitive advantage and what makes sense in the business you are in.

• It’s all about ROI and the balance of technology and business processes that support it.

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FINDING THE BUSINESS VALUE

• Application Requirements• Business Processes• Key Implementation Issues

– Mandates– Standards– Regional government regulations

• Generating positive business value – ROI

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Extracting Business Value from RFID Data

• The management of the raw data generated by ththe RFID system and the manner in which it is delivered to the end-user is critical in order to marry the solution to the business objectives

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Characteristics of an Enterprise Class RFID Platform

• Configurability• Scalability for Future Growth• 24/7 Availability• Robustness• Seamless Integration of real-world data and

events with enterprise services• Methodology for Selecting RFID app’s• Measuring process improvements

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Value Proposition – Supply Chain Execution Solutions for NLM using RFID

• Increase customer service levels• Lower network disruptions• Reduce obsolescence costs• Reduce technician overtime• Lower parts inventory• Reduce service costs• Better Service Asset Management• Improved Spares and Strategic MRO Management

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Road Transport

Consolidator /

Distribution Center

Road Transport

Port of Loading Vessel

Transit Port

VesselPort of

Discharge

Retail Distribution

Center

Road Transport

Retail Store

FactoryMain

Distribution Hub

The Flow of the Global Supply Chain in a Perfect World

Supply

Demand

Road Carrier

Road Carrier

Port Operator

Ocean Carrier

Ocean Carrier

Road Carrier

Road Carrier

Port Operator

Port Operator

Road CarrierSupplier Forwarder Customs

AgentCustoms

Agent3PL

Operator3PL

Operator

Information Flow

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Events Often Collected After the Fact By Data Entry Because of Limited Automated Data Capture

Road Transport

Consolidator /

Distribution Center

Road Transport

Port of Loading Vessel

Transit Port

VesselPort of

Discharge

Retail Distribution

Center

Road Transport

Retail Store

FactoryMain

Distribution Hub

Information Flow

Fill

Order

Dispatch

Load

P.O,D,

Receipt

Load

Sail

Dock

Load

Dispatch

P.O,D,

Receipt

Stage

Load

Customs

Unload

Stage

Load

Customs

Customs

Sail

Dock

Sail Sail Unload

Stage

Load

Customs

Customs

Load

Dispatch

P.O,D,

Receipt

Stage

Fill

Load

Dispatch

P.O,D,

Receipt

Stage

Fill

Load

Dispatch

P.O,D,

Receipt

Stage

Fill

Load

Dispatch

P.O,D,

Email

EDI

FaxPhone

Flat File

The Flow of the Global Supply Chain in the Real World

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Road Transport

Consolidator /

Distribution Center

Road Transport

Port of Loading Vessel

Transit Port

VesselPort of

Discharge

Retail Distribution

Center

Road Transport

Retail Store

FactoryMain

Distribution Hub

Value of tightly linking the Physical Flow with Information Flow

Demand (purchase order)

Physical Flow and Events

Information Flow

are tightly coupled to

• Requires integration of automatic identification and real-time identification technologies

• Real time status and location enable visibility• Visibility and transparency drives efficiencies and

opportunities for all network participants

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Market Drivers - Regulation

“We must reaffirm the importance of knowing your customers and consider the overall “air-tightness” of your supply chain, from factory floor, to loading dock, to transportation, to our border. Every single link in the chain must be made more secure against terrorist attack.”

- Robert BonnerUS Customs Commissioner

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EARLY ADOPTERS

• Focused on “slap and ship” compliance tagging

• Lessons Learned

• Next Phase– Issues– Drivers– Road Blocks– Pilot to Production Programs

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EPC PILOT PROGRAMS

• Streamline processes• Improve efficiencies• Reduce costsCompanies document application success and

failures• White papers• Case studies• Tools available to EPC global US Members

– Shows industry how to walk the talk– Properly deploy EPC technology

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Market Drivers - DoD Policy

“Implementation of RFID across the Department of Defense has the potential to greatly enhance our visibility into the supply chain, reduce supply inventories, and produce significant savings in both cost and manpower.”

- Michael W. WynneUnder Secretary of Defense

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Lesson Learned – DoD Real WorldRFID Deployments

• Global asset Tracking – TAV• Web-based RFID/ITV• Program life cycle support• Coalition partners• DLA’s

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US DoD Total Asset Visibility Network Defense and Commercial Defense Suppliers

Total Asset Visibility Network

• Business Problem: Poor visibility of containers/supplies to theatre. Lost manifests, manual inventory management, extreme safety stock requirements.

• Solution: Global visibility network with RFID solutions for tracking materials. Integrated with complementary technologies (sensors, GPS, scanners, biometric, and handheld devices).

• Project Brief: Open network, international (ISO) and technology standards-based system.

• Lessons Learned: Total Inventory Visibility.

– Reduced containers and supplies used for recent gulf war by 90%

– Reduced “in-theater” inventory from six months to seven days

– Estimated to have saved the US DoD over $350M in the first year of the Iraqi conflict

• 46+ Countries• 1400+ Nodes - airports, seaports, rail

terminals consolidation points

• 37,000+ Conveyances/Day

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Case Study: Corpus Christi Army Depot

Remanufacture & Repair of Military Aircraft

• Business Problem: Annual loss of parts/equipment is high. High labor costs searching for parts.

• Solution: Asset Management Solution and RFID Network provide inventory and item level tracking of aircraft parts. Wireless Network of Readers record part arrival and departure at each shop.

• Project Brief: Install facility-wide item location tracking. Provide location tracking through the repair cycle process. Integrated tracking of components and end items. Enhance repair cycle management and efficiency – maintain database of repair history, cost of repair, and configuration.

• Lessons Learned: Reduced annual investment in locating parts by tens of millions of dollars annually

• 250,000 Parts• 151 Shops• 3500 Support Equipment• 7 Square Miles

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Case Study: Woolworths

UK Retailer - Closed Loop Distribution• Business Problem: High volume of theft. 10-15%

shrinkage in some product categories.

• Solution: Asset Management solution tracks dolly's movement through DC to correct store, and GPS tracks vehicle on route. Driver uses handheld to confirm delivery.

• Project Brief: UK Home Office sponsored initiative for theft prevention- included the integration of Bar Codes, Active RFID and GPS systems into a single supply chain visibility solution.

• Lessons Learned:

– Successful tracking of goods between DC and stores– Reduction in $70M in lost inventory– Elimination of incorrect deliveries of dollies to stores– Improved distribution minimized costs, reduced stock-outs, and improved top-line revenue goods

• 2003 European Retail Systems Award

• 200,000+ Totes• 16,000 Dollies• 90 Stores in the UK• 3 Distribution Centers

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Case Study: National Railroad

South African Railroad• Business Problem: Unable to provide wagons

to customer for movement of materials. Poor visibility of assets.

• Solution: Asset Management Solution and RFID Network provide data on status and location of rolling stock and their contents.

• Project Brief: Pilot phase for specific cargo and tradelanes, moving to roll-out phase. Partnership with local companies and support from UN Conference on Trade and Development (UNCTAD).

• Lessons Learned: – Asset utilization improved by 400+%

– Customer Service/On-time Deliveries improved by 150%

– Improved security and almost complete elimination of $20M+ annual theft and loss problem.

• 75,000 Railcars• 3600 Locomotives• 19,000 Miles of track

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Our Solution: RFID study and testing of different vendorsUser requirements study and process analysisRFID Tag testing of 10 different Hasbro productsSolution proposal for Pilot project

Our Customer: Hasbro – East Longmeadow, CTWal-Mart RFID compliance

Challenges:New technology, uncertain which RFID vendor to chooseNo testing facility to evaluate different vendors

Benefits: Thorough testing and analysis done by expertsProduct analysis, conveyor tests, pallet tests, shrink wrap testsVendor selection based on own product and pallet configuration andWal-Mart compliance requirementsShort turnaround time of the vendor selectionImmediate follow-up with RFID Pilot proposal

Steve Marcolini, :“We were able to make aRFID Vendor selection based on facts and figures presentedin excellent reports. We will beamong the first to comply toWal-Mart’s mandate”

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Our Solution: CATAMARAN application tailored to customer needsUser friendly solution, only few hours operator training requiredBarcode and RFID technology combined in one solution

Our Customer: Thomasville Furniture – Appomattox, VATarget RFID compliance

Challenges:Unattended RFID tag validation at shipping time to TargetComplex exception handling at stretch-wrap RFID read point100 % RFID reads required

Benefits: Short project turn-around timeUse of Stack-lights to display RFID read status, alerts to operators in case of exceptionsPartner approach brought both RFID technology expertise as well as process and integration expertise

Jeff Kuhnlein:“We are very happy with the CATAMARAN solution. Odin and Shipcom did an excellent job. We were able to successfully ship our first RFID labeled products to Target, in time”

Implementation together with our partner

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Our Solution: CATAMARAN based RFID container tracking applicationAutomatic tracking and recording of all container movements between the plantsIntegration of 2 photo eyes per dock-door to determine container movement direction

Our Customer: John Deere plants at Waterloo and Fargo RFID Container tracking

Challenges:Lack of information where containers are between the John Deere Fargo and Waterloo plantsAutomatic detection of direction of container movements(inbound or outbound)

Benefits: Accurate, real time information on container shipmentsHistory of all container shipments available in SQL databaseEasy reporting capabilitiesUnattended operation, no burden on operators

Robert Barrett :“We now have accurate, real time information on the location and status of all container shipments between our two plants. The Catamaran solution was realized in only a few weeks”

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Our Solution: One CATAMARAN Enterprise RFID solution at Ryder’s corporate Data Center in Atlanta that serves a number of local CATAMARAN Edge servers at Philips CE sites at Roanoke, TX and Groveport, OH and HP’s site at Ontario, CA

Our Customers: Ryder/Philips Consumer Electronics/HP Enterprise Best Buy RFID compliance solution

Challenge:As 3PL provider Ryder Logistics needed one Enterprise RFID solution that can serve all it’s corporate customers at different locations.Integration with many different WMS systems like PkMS, Warehouse Express through one CATAMARAN-SeeBeyond connector

Benefits: One Enterprise solution for many different customers, that can be replicated to other customers in a short timeIntegration of the solution with various WMS packages through one SeeBeyond connector

Frank Tikle:“After we implemented the Shipcom solution for ourselves at Ryder we decided to offer this solution to our customers as well. We have created an Enterprise wide RFID solution that can benefit each of our customers. Philips and HP are the first ones to benefit from the CATAMARAN solution”.

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Our Customer: Bell Sports – Rantoul, IL Wal-Mart RFID compliance

Our Solution: CATAMARAN-RFID solution tailored to Bell Sports needsHigh performance round-robin printing to multiple printersFlexible commissioning/decommissioning with history kept in SQL tables

Challenges:High volume RFID Label printing, very complex RFID printer management of multiple printersRFID Tag commissioning and de-commissioning incl. RFID print and re-print functions Batch RFID Pallet Tag validationCombination of Barcode and RFID technology

Benefits: In time delivery of RFID tagged products to satisfy Wal-Mart’s RFID compliance programBell Sports Workflows could be realized without codingData integration with Bell Sports backend systemsSolution is scaleable and ready for deployment to Bell Sports DC in York, PA

Implementation together with our partner

Jeff Gregg, VP & CFO:“Our primary reason for selecting Shipcom was the fact that CATAMARAN was a configurable system with no predefined workflow, which allowed us to construct our workflow without coding”.

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Our Solution: CATAMARAN RFID solution to track gas meters at each process gate, from American meter to consumer.Integration with SAP for ASN, Quality Inspection, receiving etc.

Our Customer: Sempra – San Diego, CAGas Meter tracking with RFID (Pilot)

Challenges:No visibility of gas meters in the supply chain from the Manufacturer (American Meter) to the consumer.Sometimes gas meters got “lost” (but were installed), resulting in lost revenues for gas delivered to consumers

Benefits: Full visibility of Gas meters in the Supply chain, location of each meter known at any time (American Meter, in transit, in QC, in Stock, in transit, installed at customer).Elimination of “lost” gas meters and consequent loss of revenues Automatic registration of all goods movements in SAP

Jim Pilant:“We were successfully using CATAMARAN already in 11 of our warehouses using barcode technology. The addition of RFID capabilities to CATAMARAN make it an even more versatile solution”

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Our Solution: CATAMARAN RFID application to track chassis at the Brampton terminal. When trailer enters or exit the yard, the movement will be automatically registeredThe relationship between the different equipment will also be tracked,

which tires and wheel assemblies belong to which chassisInterface with CN-Rail backend through IBM Websphere MQ

Our Customer: CN-Rail – Brampton Intermodal Terminal, TorontoAsset tracking of Intermodal equipment

Challenges:Whereabouts of intermodal equipment (chassis, tires, wheel assemblies) is a mystery.Inter-exchangeability of equipment between competitors means new equipment goes out, but old equipment comes back in

Benefits: Exact location of intermodal equipment can be trackedAvoid exchange of new equipment by old equipment from competitorsAutomatic registration in CN-Rail’s back-end system

Developed in partnership with Bell Canada

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  Chassis tracking at Brampton Intermodal Terminal (BIT)

Capture RFID reads from incoming chassis at Main Entrance

Capture RFID reads from incoming chassis at Secondary Entrance

Capture RFID reads from outgoing chassis at Exit

Interface with CN-Rail SRS legacy system through MQSeries

Our Customer: CN-Rail

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Our Solution• Interface to multiple readers• Interface to stack and sensors • Local EPC label printing• Integration to multiple systems and technologies • Optimized readers

Challenges• New technology implementation, integration into MES and WMS, custom EPC labels

Benefits • Integration into core processes• Determine hardware selection for future roll-outs• Validate RFID systems functionality• Nearly 100% unattended process• Shift from cost of sales benefits focus to internal ROI benefits focus

RFID Reader

Integration

Provia Interface

WMS-MES Bridge

Reporting and

Analytics

Our Customer: HP – Printer & Scanner Plant in Memphis

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Our solution • Implemented for GR in Warehouse, GI in production and FG transfer to DC in Szekesfehervar• Barcoded data collection and integration into Philips Central SAP system in Eindhoven. Connected to the MES system

Our Customer: Philips Consumer Electronics, Hungary Production Control and Inventory Management

Challenges• Inefficient goods receiving process• Manual, labor intensive, paper based data entry in SAP of

material transfers• Low inventory accuracy• Manual plant to plant transfers of FG goods to DC • Lack of visibility at manufacturing floor

Benefits• Error free and efficient goods receipt process• Reduction of manual labor for GR and GI processes • Increased inventory accuracy at factory warehouse and DC• Real time data available in Warehouse and in DC stock, reducing

stock-outs considerably, and improving delivery reliability• Reduced training needs for operators

“The Shipcom solution helped us to improve our inventory systems, resulting in improved customer satisfaction.” - Hans de Fluiter, Senior Industry IT Manager

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Our solution• CATAMARAN v8.3 application, tailored to needs• Easy integration into Medtronic SAP system• Paperless, electronic travelers, all data captured in SAP• Real-time registration of component consumption• Barcoded data collection at each workstation

Challenges• Paper based travelers to record manufacturing history• No real time registration of material consumption• No test data registration in SAP• No visibility of scrap and rework• High WIP costs, no visibility

Benefits• Reduction of paper consumption by 116,000 sheets of paper/month• 100% inspection, improved reporting on defects and other metrics• Reduced cycle time by more than 2 hours• Operators are more focused on their tasks• Enables automatic reporting (first pass yield, cycle time, etc.)

“We had a reduction of WIP in one month, saving $302,026 with full visibility.” - Eric Collins, Director of Manufacturing

Our Customer: Medtronic Minimed – Lean Manufacturing Solution

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MAJOR EUROPEAN USERS

• Tesco – U/K• Metro Groups – Germany• Marks & Spencer – UK• Airbus – France• Carrefour – France• GlaxoSmithKline – UK• Worldwide Fruit UK• Volkswagen – Germany• DHL• RFID demo/test centers throughout UK

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RFID Test Centers

• Sun Microsystems – Dallas, TX• IBM – Gaylord, TX• Alien Technologies – Dayton, OH

Live demo’s of Gen 2 hardware, software, systems and business applications in a lab setting. Hands-on RFID workshop designed to give users detailed knowledge of upgrades in supply chain, warehouse, logistics, receiving, shipping, packaging and labeling systems.

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Hardware/Software/Systems Sources

• Alien Technologies Avery Dennison• ThingMagic Paxar• Microsoft Philips• Cisco Systems Shipcom Wireless• RFID4U IBM• Intermec Technologie OAT Systems• Symbol Tagsys• Zebra RFID China Alliance• Scan Source SAVI• Tyco UPM Rafsec• TI Samsys• HP

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RFID TAGLOW COST MANUFACTURING

• 300 mm SEMICONDUCTOR WAFER FAB• REDUCTION OF CHIP GEOMETRY 1u TO

65nm• Low Cost labor locations• Automated assembly/packaging/test• Volume scalability

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HOT MARKETS

• Supply Chain Logistics/Transportation• Asset Tracking/Inventory Control• Medical• Pharmaceutical• Work-in-Process• Government• Transportation• Retail

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JOB OPPORTUNITIES

• Sales

• Marketing

• Engineers

• Technical Support (Professional Services)

• Executive Level Managers

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FUTURE OUTLOOK

• Dramatic adoption increase in RFID activity in 2006-7• 5¢ Tag – Is it feasible?• Silicon vs. Plastic• Integrated vehicle mount readers• Single chip H/H Reader• Sensors/RFID• Biometrics• Wal-Mart --- DoD mandates• RFID & Shared Assets• Privacy Advocates• Global Picture