DEMYSTIFYING RFID & AUTOMATIC IDENTIFICATION TECHNOLOGIES John M. Hill April 3, 2012 Orlando 1
DEMYSTIFYING RFID & AUTOMATIC
IDENTIFICATION TECHNOLOGIES
John M. Hill
April 3, 2012Orlando
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THE SUPPLY CHAINThe infrastructure of
facilities, transportation networks, technologies,
systems & people that enable material flow from source to
consumption.© 2012 St. Onge Company
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SECURE, ERROR-FREE ORDER FULFILLMENT,
DELIVERY &
VISIBILITY
SC EXCELLENCE
© 2012 St. Onge Company
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THE RIGHT MATERIALS
IN THE RIGHT CONDITION
AT THE RIGHT PLACE
AT THE RIGHT TIME
SC EXCELLENCE
© 2012 St. Onge Company
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MATERIAL & DATA FLOW SYNCHRONIZATION
SC EXCELLENCE
© 2012 St. Onge Company
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The best decision making is executed on the basis of events as or before, not after, they occur. Responsive
systems provide discipline and control, based not only upon plans & performance goals, but also upon the
dynamics of actual operations.
RESPONSIVENESS
© 2012 St. Onge Company
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WE HAVE THE TOOLS!
Material Handling Equipment
Network & Process Optimization
Automatic Identification
Supply Chain Execution Systems
People© 2012 St. Onge Company
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AIDC TECHNOLOGY IS CRITICAL TO
MATERIAL & DATA FLOW
SYNCHRONIZATION© 2012 St. Onge Company
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Voice Data Entry
Bar Code
RF Data Communications
RFID
AUTOMATIC IDENTIFICATION & DATA CAPTURE TECHNOLOGIES
© 2012 St. Onge Company
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1966
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ACI
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1971
© 1971 Computer Identics
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John Hill Material Handling Engineering Fall 1972
“The trend in [item coding] is toward miniaturization. The use of such micro-
encoding will permit assignment of a unique number to any product whose value
warrants tracking, whether it’s an automobile or a shipment of caviar - - in
plant or across the country. Within the next ten years, such product coding will be
commonplace and, in fact, be standardized.”
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WHAT IS RFID?The use of radio frequency technology to enable data exchange between reading devices and items carrying RFID tags.
Reliable when properly deployed, RFID does not require line of sight or contact between the readers and tags.
© 2012 St. Onge Company
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RFID TIMELINE
• 1926: Baird’sradio object
detectionpatent
• 1935: Watson-Watt’s radar
patent
• 1942: Hedy LamarPatent
• WW II: Radar refined
• 1st Toll Collection
SystemNorway
• Texas, Georgia, Oklahoma Tolls
• Wide-scale US Roll-out
• LASL spins-off IDX & Amtech
• 1984: IDX/ AllenBradley
install GM System
• Vast number of companies enter RFID marketplace
• 1977: Electronic license plate for motor vehicles
• 1979: RFID animal
implants
• 1975 LASL releases
research to public sector
• 1991: AAR standard
• 1994: All US railcars
outfitted
• MIT Auto-IDCenter formation
• EPC™ introduced
• National & internationalstandards emerge
• 2004: TREAD
• EPCglobal formed 2003
• 1998:US Army rolls out TC-
AIMS II
• 2003: RFID prominent in
Iraqi Freedom
• Smart shelves
• Multiple early
adopter installations
• 1952: Vernon“Application of the Microwave
Homodyne”
• Harris patent: “Radio
transmission systems with modulatable
passive responder”
• Harrington “Active & Loaded
Scatterers”
Adapted from Interaction Design Institute RFID Project Presentation - 2002
• 1966: Sensor- matic & Check-
point EAS
• Over 350 direct - reference patents
• 1948: Harry Stockman -
Communications By Means of
Reflected Power
• Fairchild, RCA & Raytheon
initiate programs
• 2005: Wal-Martinitial deadline• 1969: Mario
Cardullo RFIDconcept
• 1973: Cardullopatent
1920 - 40’s 1950’s 1960’s 1970’s 1980’s 1990’s 2000’s
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GM RFID TAG
1984
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1991
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THE EMERGENCE OF RFID IS ONE OF THE
MOST EXCITING THINGS TO HAPPEN TO THE
SUPPLY CHAIN IN THE LAST 30 YEARS!!!
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THE EPC VISION
© 2000 IBM
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THE END OF BARCODE?
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If you produce [tags] in the
billions, [they’ll] cost as little as 5
cents."Information Week - September 30, 2002
THE PROMISE
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I’m likely to be in "the home"
before they cost a nickel!
THE REALITY
John M. Hill – FRONTLINE – September 200322
THE REALITY
$.058 – Quantity: 5 MillionInvengo - 2009
They’re getting closer, but it’s an inlay, not a tag – and, after all,
I’m not in the “home” yet!
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HURDLES
TAG GENERATION / APPLICATION
TECHNOLOGY PERFORMANCE
ALTERNATIVES & STANDARDS
AIDC INSTALLED BASE
PHYSICAL INFRASTRUCTURE
SYSTEMS INFRASTRUCTURE
CULTURE / FEAR / POLITICS
COSTS / VALUE© 2012 St. Onge Company
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© 2012 St. Onge Company
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R F I DIN THE
SUPPLYCHAIN
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PROVEN APPLICATIONS
Robotics
Containers
Monorail
TowlinesNAVs
Assembly
Totes
AGVs
CagesLift Trucks
RFID
Pallets
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CARGO TRACKING & SECURITY
Product
ConditionTrail
er
Tractor
Location
Seal
GPS RFID
Courtesy of Q.E.D Systems
IDITAROD
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ASSESSING AIDC FOR YOUR OPERATIONS
COST NOT THE INITIAL ISSUE
THE VALUE PROPOSITION?
IS THERE A BUSINESS CASE?© 2012 St. Onge Company
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It’s not so much how they work as it is
“Which one or ‘ones’ will work best in my
applications?”© 2012 St. Onge Company
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FUNCTIONAL AREA APPLICATIONS AIDC TECHNOLOGYAIDC TECHNOLOGYAIDC TECHNOLOGYAIDC TECHNOLOGYFUNCTIONAL AREA APPLICATIONS BarCode Voice RFID RFDC
RECEIVING
Inbound Material Check-In ✔ ✔ ✔ ✔
RECEIVINGDamage Reporting ✔ ✔ ✔ ✔
RECEIVING Untagged Material Labeling ✔ ✔ ✔ ✔RECEIVING Returns Processing ✔ ✔ ✔ ✔RECEIVINGCrossdock Staging ✔ ✔ ✔ ✔
RECEIVINGQuality Assurance Alert ✔ ✔ ✔ ✔
PUTAWAY
Load Identification ✔ ✔ ✔ ✔
PUTAWAYLocation Confirmation ✔ ✔ ✔ ✔
PUTAWAY Exception Notification ✔ ✔ ✔ ✔PUTAWAY Returns Processing Move ✔ ✔ ✔ ✔PUTAWAYCrossdock Move ✔ ✔ ✔ ✔
PUTAWAYQuality Assurance Move ✔ ✔ ✔ ✔
INVENTORY CONTROL
Scheduled Cycle Count ✔ ✔ ✔ ✔
INVENTORY CONTROLException-Triggered Cycle Count ✔ ✔ ✔ ✔
INVENTORY CONTROL Full Physical ✔ ✔ ✔ ✔INVENTORY CONTROL Lot & Serial # Tracking ✔ ✔ ✔ ✔INVENTORY CONTROLShelf Life Monitoring ✔ ✔ ✔ ✔
INVENTORY CONTROLStock Rotation ✔ ✔ ✔ ✔
PICKINGInventory Allocation
PICKINGWave Building
PICKING Order Pick ✔ ✔ ✔ ✔PICKINGBatch Pick ✔ ✔ ✔ ✔
PICKINGCluster Pick ✔ ✔ ✔ ✔
SHIPPING
Dock Confirmation ✔ ✔ ✔ ✔
SHIPPINGTrailer Confirmation ✔ ✔ ✔ ✔
SHIPPING Load Sequencing ✔ ✔ ✔ ✔SHIPPING Seal Identification ✔ ✔ ✔ ✔SHIPPINGDocumentation ✔ ✔
SHIPPINGTrailer Departure Confirmation ✔ ✔ ✔ ✔
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HORSES FOR COURSESShould we use pick-to-light, RFID or voice for item picking?
How can we avoid metal interference (especially steel) when we are using RFID tags and technology for product traceability?
Without major warehouse and information system changes, RFID is simply not going to work for us. Should we move on to something else?
Is RFID ready?
Where should we start?© 2012 Cypress Associates
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Take the time to describe the track & define
performance requirements before picking the horses
to run the race.
The myriad alternatives available to tackle supply
chain challenges represent both the
strength and weakness of the industry.
HORSES FOR COURSES
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TIME
COMPLEXITY & COST
• High Value Item Identification
• Container/Pallet Identification• Returnable Container Identification• Tractor/Trailer Identification
Trading Partner Networks
• Tractor/Trailer Identification• MH Equipment Tracking• Returnable Container Identification• Container/Pallet Identification• Work-in-Process Tracking
Closed Loop Applications
Global Supply Chain• Item Identification
• Case Identification
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Data to be captured? When? Where? How –Attended / Unattended? Environment?Line-of-sight access to the tag? Orientation?Tags moving when read? Speed? Range(s)?Tags "buried" and/or embedded in products, containers or pallets? Liquid / metal issues? Tags subjected to contamination?Multiple tags to be read simultaneously?Tags to be written to or rewritten in transit?
RFID: RIGHT FOR YOU?
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ASSESSMENT INITIATIONReview business model, short & long-term business objectivesSupply chain’s role in meeting objectivesCurrent supply chain concerns and issuesCurrent & expected customer AIDC compliance programsReview supply chain physical & systems infrastructureReview cash-to-cash supply chain process flowREVIEW EXISTING OPERATIONS, PROCESSES & SYSTEMSManufacturingInbound raw material identification & trackingWIP & assembly processesFinished product packaging & labelingWarehousingInbound product identification & trackingStorage & crossdocking processes: location selection/confirmationInventory & location management proceduresOrder picking processes: location selection/pick confirmationValue-added processingOther warehouse functions & processesPalletizing/containerizationShipment labeling/tagging processesTrailer/railcar/courier loading & shipment verificationSystemsOrder release process & documentsLot, serial number, shelf life, expiration date trackingWarehouse task managementLabor managementCase, pallet, container label generationCurrent label data content: UPC/SSCC/GTIN/EPC mapping
AIDCREADINESS
ASSESSMENT
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Systems (continued)Inventory updates & reconciliationCarrier scheduling/Other transportation functionsShipment documentationCustomer shipment notification: EDI, XML, ASN's, otherIdentify Key Performance Indicators & Metrics For Each AreaDefine Performance Improvement TargetsPREPARE ASSESSMENT REPORTIdentify general process & systems opportunities: low hanging fruitIdentify probable impact of AIDC on processes & systemsIdentify AIDC challenges, technology options & costsIdentify required infrastructure & systems changes, additions & costsIdentify risks & steps necessary to mitigateDetermine pilot test & roll-out resource requirementsDevelop action plan & prioritized, costed deployment roadmapFinalize business case & investment package Secure approval for pilot testing (or deferral)IF IT'S A "GO", INITIATE PILOT TESTINGTag configuration for item and/or case IDTag configuration for pallet IDTag encoding equipment requirements & deploymentTag application method, equipment & deployment as applicableTag verification: location, reader, antennae requirements (RFID) & performance specsTrading partner reader/antenna configuration (RFID) & performance specificationsEstablish technical & performance test standardsSelect & deploy equipment for testing - OR - select supplier test facility Conduct testsReview results & fine-tune investment packageSecure approval for program launch (or deferral)
AIDCREADINESS
ASSESSMENT
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COSTS / VALUEINVESTMENT COSTS• Readers (Fixed or portable)• Antennae• Network/Interfaces• Middleware/Software• Integration, Installation, Training
RECURRING COSTS• Tags (One-time or reusable)• Tag Application Labor• Portable Reader Labor• Maintenance• Training
VALUE• Improved Accuracy• Better Visibility/Traceability• Improved Security• Speed/Throughput• Inventory Reduction• Reduced Obsolescence• Improved Customer Service• Reduced Shrink/Damage• Improved Space Utilization• Execution Error Reduction• Improved Stock Rotation• Reduced Labor Costs
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Tags/Transponders Tag types? How many? Disposable vs.
reusable? Packaging? Read-only, read-write? Active vs. passive? Cost?
StandardsEPC Global 64, 96 or 256-bit tags (Gen 2)? ISO-18000?
SC 31? Other?
Tag Data Content Format? How much data?
Encoding? Security & consumer privacy issues.
Tags
Frequencies Low 100-500 KHz; High 10-15 MHz; UHF 433 MHz (DoD), 850-950 MHz
(EPC); Microwave 2.4-5.8 GHz
Connectivity Middleware (ALE)? Impact on
existing systems? SCE application software requirements? Network I/
F’s: UCCnet, GDSN, other?
Hardware& Systems
Readers/Antennas How many? Where? Single read vs.
multiple reads (anti-collision)? Read range requirements? Item
speed(s)? Agile readers?
Other Existing AIDC technology? RFID impact and technical
requirements.
RFID Printer/Encoders How many? Where? Manual or
automatic tag application?
MOVING AHEAD WITH RFID
Business Partners Collaborate w/ suppliers, carriers &
customers who will be affected. Determine impact & requirements.
Process Impact Tag Placement –how, when & where? Application method? Verification method? How to
maximize read rates and accuracy?
Environment Tag readability testing (replicate
environment). Metals, liquids, temperature extremes, humidity,
line of sight?
Staffing Impact Training. Deployment, IT, &
Operations Cross-Functional RFID Team. Support?
Process
© 2012 St. Onge Company
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PILOTTEST!
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PILOT TESTINGTag configuration/data content for case IDTag configuration/data content for pallet ID
Encoding equipment requirements & deployment planTag application method, equipment requirements &
deployment plan as applicableTag verification: location, reader, antennae requirements & performance specifications
Trading partner reader/antenna configuration & performance specifications
Establish technical & performance test standardsSelect & deploy equipment for testing - OR - select
supplier/integrator test facility Conduct tests
Review results & fine-tune investment packageSecure approval for program launch (or deferral)
© 2012 St. Onge Company
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Accenture LtdAccuCode Inc
Accu-Sort SystemsAcsis
Active WaveAdvanced Data Capture
Advanced ID CorporationAhearn & Soper Inc
Airgate TechnologiesAlanco Technologies Inc
Alien TechnologyAmaTech USA
AmskanApriso
Argent Tape & Label IncASK
Atmel CorporationAvery Dennison
Avicon IncAVIDAWID
Axcess IncBalogh RFIDBearingPoint
Bibliotheca RFID Library Systems AGBritish Telecom (BT)
CAEN SpACanon Finetech
Cansec Systems LtdCap, Gemini, Ernst, & Young
Catalyst International IncCCL Label
Celis Semiconductor CorporationCheckpoint Systems
ClearOrbit IncClimarque LtdCodeway Ltd
Computer Sciences CorporationConnecTerra
CopyTag LimitedCross PointCrossLink
Cubic Transportation SystemsDatamax
Defywire Inc
Dynasys TechnologiesEDS
ELGABELPAS Ltd
EM MicroelectronicsEMS (Datalogic)
Enterprise Information SystemsESYNC
Etenna CorporationeXI Systems Inc
Farther SynergiesFeig Electronic GmbH
FlexchipFractal Antenna Systems
Franken PlastikFranwell Software Inc
FreedomPayFujitsu Limited
Gempuls International SAGenuOne Inc
Global IDGlobeRanger Corporation
HIDHighJump SoftwareHitachi Maxell LtdIBM Corporation
IconNicholson LLCID Systems Inc
Identec SolutionsIDMicro Inc
ImpinjIndala
Infineon Technologies AGInkode
InnovisionInside Contactless
Integrated Product Intelligence LtdIntel Corporation
Intellident LtdIntermec Technologies Corporation
International Paper Smart PackagingIntersoft
Kennedy GroupLakeWest Group
Legic Identsystems Ltd
Manhattan AssociatesMARC Global Systems LLC
Mark IVMeadWestvaco Intelligent Systems
Melexis NVMicrochip Technology Inc
Microsoft CorporationMiyakeMoba
Moore WallaceMu-Solutions Venture Co (Hitachi)
National LabelNCR CorporationNEC Corporation
NJM/CLI Packaging Systems IntlNorthern Apex RFID
OATSystems IncOdin Technologies
OmniTekOmron CorporationOpen Tag Systems
Optum IncOracle Corporation
OTI GlobalPaxar Corporation
Phase IV EngineeringPhillips (Koninklijke) Electronics
Plitek, LlcPower PaperPrintronix Inc
Provia SoftwarePsion-Techlogix
Quelis ID SystemsQueTelRafsec
RCD Technology CorporationRedPrairie Corporation
RF Code IncRF Saw Inc
RF TechnologiesRFID Inc
RSI ID TechnologiesSAIC
Samsung Electronics Company LtdSAMSys
SCS-CorporationSecura Key
Sefea (Swatch Group)Sensormatic (Tyco)
Sentinel IDServiant
Shipcom WirelessSiebel Systems
SIRIT IncSIS Technologies Ltd
SkyetekSmart Code Corporation
SoftronicaSovereign Tracking Systems LLC
ST Logic TrackStella
STMicroelectronics NVSun Microsystems Inc
Symbol Technologies IncSyscan
Tacit SolutionsTagMaster
TagsysTEK Industries
Texas Instruments - TI-RFidThingMagic
TIBCO Software IncTopFlight
Toppan Forms Co LtdToshiba Corporation
TransCore IncTraxus Technologies Inc
TrenstarTrivalent Solutions Inc
Trovan LtdTwo Technologies Inc
UnisysVeriSignViaera
Vizional Technologies IncWavetrend Technologies
webMethods IncWhereNet CorporationWJ Communications
X-ident Technology GmbH
WHO CAN I TURN TO?
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MOVING AHEAD WITH RFIDInsist that suppliers’ solutions provide a clear migration path for compliance with evolving standards.
Make sure that the systems you’re considering can be readily adapted to changing requirements.
Establish a phased program that enables you to walk before you run!
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Insanity is doing the same thing over & over again – & expecting different results. Ben Franklin
PARTING THOUGHTSRandom infusions of technology will merely leave the enterprise in greater disarray. James Borck
Build the business case & do it right, not over – the first time.
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RFID will prosper and flourish, not by replacing bar code, but by addressing the identification, serialization
and traceability challenges for which it provides superior
solutions.David Allais – April 27, 2009
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