radio frequency identification technology/applications
TRANSCRIPT
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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,
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