Presentation 9 - RFID

RFIDRFID

Group Members:Group Members:Katherine Hughes, Justin Behm, Katherine Hughes, Justin Behm,

Alan Gilewski, Robert Worth, Daniel Alan Gilewski, Robert Worth, Daniel Crucz, Michalis KritikosCrucz, Michalis Kritikos

Group Number: 5

Presentation Date: 4/30/2008

Presentation OverviewPresentation Overview

IntroductionIntroduction Business ApplicationsBusiness Applications Advantages of RFIDAdvantages of RFID Disadvantages of RFIDDisadvantages of RFID Conclusion/ RecapConclusion/ Recap Quiz and Questions Quiz and Questions

Why is RFID important Why is RFID important to you?to you?

Technology is continuously Technology is continuously improving and changing the improving and changing the business world.business world.

Important to be aware of different Important to be aware of different technology options.technology options.

RFID is used in our everyday world.RFID is used in our everyday world. RFID could one day be an essential RFID could one day be an essential

part of your business or workplace. part of your business or workplace.

Goals to Achieve Goals to Achieve

Detailed description and definition of Detailed description and definition of RFIDRFID

Make audience aware of various Make audience aware of various advantages of the technologyadvantages of the technology

Learn the various disadvantages of Learn the various disadvantages of the RFID technologythe RFID technology

Discuss the business applications Discuss the business applications The future of RFID based on research The future of RFID based on research

and the team’s opinion and the team’s opinion

RFID Stands For…RFID Stands For…

RRADIOADIO

FFREQUENCY REQUENCY IDIDENTIFICATIONENTIFICATION

RFID Defined RFID Defined A technology which incorporates the use A technology which incorporates the use

of electromagnetic coupling and radio of electromagnetic coupling and radio waves to identify an object or person. waves to identify an object or person.

Made up of several components embedded Made up of several components embedded into business practices to improve and into business practices to improve and transform key supply chain processes.transform key supply chain processes.

Provides a distinctive identifier for objects Provides a distinctive identifier for objects (similar in its purpose to bar codes or (similar in its purpose to bar codes or magnetic stripes on the back of credit magnetic stripes on the back of credit cards).cards).

RFID must be scanned in order to RFID must be scanned in order to retrieve the needed informationretrieve the needed information

History and DevelopmentHistory and Development

First Developed during WWII. First Developed during WWII. Created from radar experiments. Created from radar experiments. British needed to identify their own planes British needed to identify their own planes

“friendlies” from French planes “foes”. “friendlies” from French planes “foes”. Actual year of invention was 1948. Actual year of invention was 1948. For years after first development a great For years after first development a great

amount of research on RFID was done amount of research on RFID was done until it was actually used in commercial until it was actually used in commercial application. application.

History Of UseHistory Of Use

After WWII security and safety was After WWII security and safety was needed due to the use of nuclear needed due to the use of nuclear materials, which lead to further materials, which lead to further developments in “tagging”. developments in “tagging”.

RFID started being implemented in RFID started being implemented in the 1970’s.the 1970’s.

During this time the cost of each tag During this time the cost of each tag was excessive and the use was very was excessive and the use was very limited. limited.

RFID in the 1980’sRFID in the 1980’s The 1980’s bought a great amount of development. The 1980’s bought a great amount of development.

In 1987 Norway had implemented the first In 1987 Norway had implemented the first successful toll collection system. successful toll collection system.

Toll systems were considered to be the Toll systems were considered to be the breakthrough product for RFID.breakthrough product for RFID.

In 1981 railroads began implementing RFID as a In 1981 railroads began implementing RFID as a solution for the environment of their industry. The solution for the environment of their industry. The railroads used RFID to keep track of rolling stock. railroads used RFID to keep track of rolling stock. The radio frequency was able to go a travel a longer The radio frequency was able to go a travel a longer distance, and had the ability to read through snow, distance, and had the ability to read through snow, fog, dirt, and direct sunlight. Before RFID the fog, dirt, and direct sunlight. Before RFID the railroads were implementing bar code technology. railroads were implementing bar code technology.

In 1988 the main effort of RFID shifted to new In 1988 the main effort of RFID shifted to new applications to do things such as improve applications to do things such as improve performance, reduce costs and reduce size performance, reduce costs and reduce size

1990’s to Present1990’s to Present

From the 90’s to the present RFID From the 90’s to the present RFID manufactures are in deep manufactures are in deep competition to be the company to competition to be the company to sell the cheapest, smallest and most sell the cheapest, smallest and most reliable RFID device. reliable RFID device.

( Business Applications Section will ( Business Applications Section will talk more about RFID in present talk more about RFID in present

use.) use.)

How Does RFID Work?How Does RFID Work?

RFID is comprised of three major RFID is comprised of three major components:components:

♦ ♦ An antenna or coilAn antenna or coil

♦ ♦ A transceiver (with decoder) A transceiver (with decoder)

♦ ♦ Transponder (RF tag) Transponder (RF tag)

RFID In Use

Antenna or CoilAntenna or Coil The antenna emits radio signals to The antenna emits radio signals to

activate the tag and to read and write activate the tag and to read and write data into the tag.data into the tag.

The antenna is the channel between the The antenna is the channel between the tag and the transceiver, thus it controls tag and the transceiver, thus it controls the data attainment and communication. the data attainment and communication.

The antennas are available in many The antennas are available in many different shapes and sizes. For example different shapes and sizes. For example an antenna can be built into a doorframe an antenna can be built into a doorframe in order to collect data from people in order to collect data from people walking through the door. walking through the door.

Antenna and Coil Antenna and Coil Continued…Continued…

The electromagnetic field, which the The electromagnetic field, which the antenna produces, is constantly present antenna produces, is constantly present when multiple tags are continually when multiple tags are continually expected. expected.

If constant detection is not needed the field If constant detection is not needed the field can be activated by a sensory device. can be activated by a sensory device.

Depending on the antennas needs you Depending on the antennas needs you could opt to make it a handheld or a fixed-could opt to make it a handheld or a fixed-mount device.mount device.

Often the antenna is packaged with the Often the antenna is packaged with the transceiver and decoder. transceiver and decoder.

RFID ANTENNAS

Transceiver (with Transceiver (with decoder)decoder)

The reader releases radio waves in ranges The reader releases radio waves in ranges from one inch to 100 feet or more. The range from one inch to 100 feet or more. The range depends on its output power and the radio depends on its output power and the radio frequency used. frequency used.

When the RFID tag passes through the When the RFID tag passes through the electromagnetic field it will then detect the electromagnetic field it will then detect the reader’s activation signal. reader’s activation signal.

At this point the reader will decode the data At this point the reader will decode the data programmed in the tag’s circuit.programmed in the tag’s circuit.

Finally, the data is passed to the host Finally, the data is passed to the host computer to be processed. computer to be processed.

RFID READER

Transponder (RF Tag)Transponder (RF Tag)

RFID tags are the heart of the RFID system RFID tags are the heart of the RFID system because they store the information that because they store the information that describes the object being tracked. describes the object being tracked.

Tags are classified according to their Tags are classified according to their abilities: abilities:

♦ ♦ ActiveActive

♦ ♦ Passive Passive

♦ ♦ Read-Only Read-Only

♦ ♦ Write-Once Write-Once

♦ ♦ Read-Write Read-Write

Active TagsActive Tags

Contain a battery that runs the Contain a battery that runs the microchip’s circuitry.microchip’s circuitry.

Tag is able to send a stronger signal Tag is able to send a stronger signal to the reader due to battery. to the reader due to battery.

Allows a read range of about one Allows a read range of about one hundred feet.hundred feet.

Passive Tags Passive Tags

Passive tags contain no batteries. Passive tags contain no batteries. Passive tags get power from a Passive tags get power from a

reader. reader. Readers send electromagnetic waves Readers send electromagnetic waves

that produce a current in the that produce a current in the tag’s antenna which then powers the tag’s antenna which then powers the microchip’s circuits.microchip’s circuits.

A passive tags read range is A passive tags read range is approximately thirty feet. approximately thirty feet.

Read-Only TagRead-Only Tag

Read-only contain data such as Read-only contain data such as tracking numbers. tracking numbers.

These tracking numbers are usually These tracking numbers are usually serialized and pre-written onto them serialized and pre-written onto them by the tag manufacturer. by the tag manufacturer.

Read-only tags are usually the least Read-only tags are usually the least expensive because information can expensive because information can not be added onto them as they not be added onto them as they move through the supply chain. move through the supply chain.

Write-Once & Read-WriteWrite-Once & Read-Write

Write-onceWrite-once tags allow a user to write tags allow a user to write information into the tag one time during information into the tag one time during the production. The information can be the production. The information can be something like a batch or serial number. something like a batch or serial number.

FullFull read-writeread-write tags allow for new data tags allow for new data to be written to the tag as it is needed. to be written to the tag as it is needed. These tags also allow for original data to These tags also allow for original data to be written over. be written over.

RFID TAGS

Business Business ApplicationsApplications

Asset TrackingAsset Tracking

RFID tags applied to company assets RFID tags applied to company assets which are stored awaywhich are stored away

Companies then use the tags and Companies then use the tags and RFID technology to locate assets RFID technology to locate assets when they neededwhen they needed

The location of the assets are accurate The location of the assets are accurate within 10 feetwithin 10 feet

Think of our Libraries…Think of our Libraries… RFID tracks library books that are RFID tracks library books that are

checked out or in. checked out or in.

RFID Utilized in RFID Utilized in ManufacturingManufacturing

Manufacturing companies utilize RFID to Manufacturing companies utilize RFID to track partstrack parts

Work-in-Progress tracking made easier Work-in-Progress tracking made easier Reduce defectsReduce defects Increase of throughputIncrease of throughput Manage production of different versions Manage production of different versions

of the same product of the same product Assists in tracking part arrivalsAssists in tracking part arrivals Follows parts along assembly linesFollows parts along assembly lines

RFID Used In RetailRFID Used In Retail

Assists in identifying which products need Assists in identifying which products need to be restockedto be restocked

When shelf supplies are low store will be When shelf supplies are low store will be able to quickly identify where product is able to quickly identify where product is needed and where they will obtain the needed and where they will obtain the needed productneeded product

Overall, allows for higher customer Overall, allows for higher customer satisfactionsatisfaction

Helps automate checkout linesHelps automate checkout lines Reduces line waiting times Reduces line waiting times

Payment SystemsPayment Systems

Helps speed up processes where Helps speed up processes where payments are necessary.payments are necessary.

Most commonly found on toll waysMost commonly found on toll ways Used in collecting tolls, which we Used in collecting tolls, which we

know in Illinois as the IPASS system. know in Illinois as the IPASS system. More convenient for drivers and More convenient for drivers and

eases the flow of traffic.eases the flow of traffic. Mobil SpeedpassMobil Speedpass

Security and Access Security and Access ControlControl

Companies use RFID to assist in limiting Companies use RFID to assist in limiting access of unauthorized personnel to access of unauthorized personnel to information among other thingsinformation among other things

Confirms information is only being viewed Confirms information is only being viewed by those who are allowed to view it. by those who are allowed to view it.

Added value to Electronic Article Added value to Electronic Article Surveillance Surveillance

Commonly used in stored as anti-shoplifting Commonly used in stored as anti-shoplifting tool it signals alarm to go off.tool it signals alarm to go off.

Control access to gates communities (ex: Control access to gates communities (ex: Crystal Tree, in Orland Park)Crystal Tree, in Orland Park)

Controls access in Airports (O’Hare Airport)Controls access in Airports (O’Hare Airport)

Case Study #1: Victory Case Study #1: Victory Land GroupLand Group

A supplier company for Wal-MartA supplier company for Wal-Mart Knew that it had to keep up with demand and competitorsKnew that it had to keep up with demand and competitors Implemented Electronic Product Code (EPC) and RFID Implemented Electronic Product Code (EPC) and RFID

smart labelssmart labels Constructed a new distribution center with RFID Constructed a new distribution center with RFID

capabilities capabilities Zebra and R4 Global Solutions, a leading RFID systems Zebra and R4 Global Solutions, a leading RFID systems

integrator worked with VLG on the implementation and integrator worked with VLG on the implementation and since then has worked with a dozen Wal-Mart suppliers. since then has worked with a dozen Wal-Mart suppliers.

Results:Results:* VLG is able to go onto Wal-Mart’s Retailer Link Supplier * VLG is able to go onto Wal-Mart’s Retailer Link Supplier

website to track the progress of its tagged website to track the progress of its tagged merchandise.merchandise.* VLG uses the information for its own planning.* VLG uses the information for its own planning.* Considering more ways to use RFID internally. * Considering more ways to use RFID internally. * Began discussing RFID technology with its own suppliers * Began discussing RFID technology with its own suppliers

Case Study #2: Federal Case Study #2: Federal ExpressExpress

Federal Express (world’s largest express parcel delivery Federal Express (world’s largest express parcel delivery company) company)

Delivers 3.2 Million parcels daily and operates over Delivers 3.2 Million parcels daily and operates over 42,500 vehicles worldwide. 42,500 vehicles worldwide.

Company’s couriers use an automatic keyless entry and Company’s couriers use an automatic keyless entry and ignition system which uses RFID transponders embedded ignition system which uses RFID transponders embedded into a wristband. into a wristband.

Results:Results:* Personnel do not have to worry about juggling and * Personnel do not have to worry about juggling and keeping track of keeping track of their keys when delivering packages their keys when delivering packages * Carriers are more productive on their routes. * Carriers are more productive on their routes. * If wristband is misplaced, the RFID system can * If wristband is misplaced, the RFID system can reprogram a new reprogram a new code within a matter of seconds.code within a matter of seconds.* When carrier places his or her band within 6 inches of * When carrier places his or her band within 6 inches of the reader, the the reader, the door will unlock, keeping all other door will unlock, keeping all other doors locked in order to doors locked in order to prevent unauthorized entry. prevent unauthorized entry.

AdvantagesAdvantages

Advantages of RFIDAdvantages of RFID

♦ ♦ Reductions in Costs Reductions in Costs

♦ ♦ Reduction in Inventory and Reduction in Inventory and TheftTheft

♦ ♦ Improves Forecasting, Improves Forecasting, Planning and Planning and overall overall customer experiencecustomer experience

Reducing Warehouse and Reducing Warehouse and Distribution/Point-of-Sale Labor Distribution/Point-of-Sale Labor

CostsCosts

Sensors allow for easier tracking of Sensors allow for easier tracking of inventory with high accuracy.inventory with high accuracy.

Point-of-Sale transaction times Point-of-Sale transaction times reduced reduced

Fraud minimized with RFID-enabled Fraud minimized with RFID-enabled products.products.

Overall, need for human labor is Overall, need for human labor is diminished as adoption of product diminished as adoption of product increases, saving on labor costs.increases, saving on labor costs.

Reduce Inventory & Reduce Inventory & TheftTheft

Accurate tracking of inventory helps Accurate tracking of inventory helps maintain appropriate levels of inventory maintain appropriate levels of inventory in stock.in stock.

With theft accounting for losses With theft accounting for losses equivalent to 1.5% of sales, RFID keeps equivalent to 1.5% of sales, RFID keeps track of when or where an item went track of when or where an item went missing.missing.

Eliminating excess/missing inventory Eliminating excess/missing inventory vital when trying to maintain a vital when trying to maintain a successful business.successful business.

Improve Improve Forecasting/Planning and Forecasting/Planning and

Minimize Out-of-stock Minimize Out-of-stock ConditionsConditions Eliminating out-of-stock conditions is Eliminating out-of-stock conditions is

made easier with RFID trackingmade easier with RFID tracking Predict with higher accuracy the Predict with higher accuracy the

current levels of stock current levels of stock Better prediction in location of Better prediction in location of

incoming shipmentsincoming shipments Maximize revenue Maximize revenue Maintain high levels of customer Maintain high levels of customer

satisfactionsatisfaction

Improve Overall Customer Improve Overall Customer ExperienceExperience

Use of RFID and Use of RFID and interactive kiosks can interactive kiosks can allow the merchant to allow the merchant to extend offers to customers extend offers to customers based on the contents of based on the contents of their carts.their carts.

DisadvantagesDisadvantages

Disadvantages of RFIDDisadvantages of RFID

♦ ♦ CostCost

♦ ♦ Collision Collision

♦ ♦ Failure Failure

Cost of RFIDCost of RFID

More expensive than current More expensive than current technologiestechnologies

Cost of an RFID scanner is $500-Cost of an RFID scanner is $500-$2000$2000

Current cost of an RFID tag is Current cost of an RFID tag is between 7¢-15¢between 7¢-15¢

Cost of active tag is $10-$50Cost of active tag is $10-$50 Barcodes cost less than 1¢ or around Barcodes cost less than 1¢ or around

3¢ with a security strip3¢ with a security strip

CollisionCollision

Signals can ‘Collide’ when multiple Signals can ‘Collide’ when multiple signals are read at once.signals are read at once.

Those signals are either lost or are Those signals are either lost or are read with errors.read with errors.

At times the collision goes At times the collision goes undetected for long periods of time.undetected for long periods of time.

FailureFailure

Total failure of the tag or readerTotal failure of the tag or reader 12%-15% of all tags fail in their first 12%-15% of all tags fail in their first

readingreading Reader failure is common and Reader failure is common and

requires replacing the reader.requires replacing the reader. Barcode failure is extremely rareBarcode failure is extremely rare

Summary/RecapSummary/Recap

RFID- RFID- RRadio adio FFrequency requency IDIDentificationentification A technology which incorporates the A technology which incorporates the

use of electromagnetic coupling and use of electromagnetic coupling and radio waves to identify an object or radio waves to identify an object or person.person.

Provides a distinctive identifier for Provides a distinctive identifier for objects (similar in its purpose to bar objects (similar in its purpose to bar codes or magnetic stripes on the back codes or magnetic stripes on the back of credit cards).of credit cards).

Summary/RecapSummary/Recap

Important Business Applications Important Business Applications

♦ ♦ Asset TrackingAsset Tracking

♦ ♦ Manufacturing Companies Manufacturing Companies

♦ ♦ Retail StoresRetail Stores

♦ ♦ Payment SystemsPayment Systems

♦ ♦ Security and Access ControlSecurity and Access Control

Summary/RecapSummary/Recap

Advantages:Advantages:♦ ♦ Reduction in CostsReduction in Costs♦ ♦ Reduction in Inventory and Theft Reduction in Inventory and Theft ♦ ♦ Improves forecasting/planning and Improves forecasting/planning and overall customer overall customer experienceexperience

Disadvantages:Disadvantages:♦ ♦ Cost Cost ♦ ♦ CollisionCollision♦ ♦ FailureFailure

Importance to Our LivesImportance to Our Lives

RFID used in everyday living.RFID used in everyday living. Makes our lives easier (IPASS, Makes our lives easier (IPASS,

Speedpass)Speedpass) Saves money and reduces theft to Saves money and reduces theft to

businesses we may work for currently businesses we may work for currently or will work for in the future.or will work for in the future.

Important to be familiar with and Important to be familiar with and aware of current technology trends to aware of current technology trends to keep a competitive advantage for keep a competitive advantage for ourselves and for our future employers. ourselves and for our future employers.

Quiz Question #1Quiz Question #1

What is not a type of RF tag?What is not a type of RF tag?

A.) Passive TagA.) Passive Tag

B.) Read-Only TagB.) Read-Only Tag

C.) Passive-Read Once TagC.) Passive-Read Once Tag

D.) Write-Once TagD.) Write-Once Tag

Quiz Question #2Quiz Question #2

What is not one of the major What is not one of the major components of RFID?components of RFID?

A.) Transponder (Rf Tag)A.) Transponder (Rf Tag)B.) Alkaline BatteryB.) Alkaline BatteryC.) Antenna or CoilC.) Antenna or CoilD.) Transceiver (With Decoder)D.) Transceiver (With Decoder)

Quiz Question #3 Quiz Question #3

What is not one of the major What is not one of the major disadvantages of RFID technology?disadvantages of RFID technology?

A.) CollisionA.) Collision

B.) CostB.) Cost

C.) Reduction of Inventory C.) Reduction of Inventory

D.) FailureD.) Failure

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