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Radio Frequency Identification


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The goal of supply chain management is to increase organizational effectiveness through the coordination of activities among suppliers, manufacturers, distribution centers, and customers. Technology evolution in the latest years has significantly contributed towards this direction. The implementation of systems such as ERP, SAP, RFID, etc., makes the production and distribution of the products more accurate and efficient. Through technology implementation, the parties of the supply chain manage to accomplish the production and distribution of the right product, at the right time, to the right location, at the minimum cost while sustaining a certain level of quality (Ramsay, n.d.).
This paper will explain what exactly the RFID system is and how it works. Moreover, the steps a company should follow in order to effectively implement RFID technology will be discussed. The advantages and the disadvantages of this technology will also be presented. Finally, three real life case studies regarding RFID implementation will be analyzed.

Published in: Business, News & Politics

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  • 1. Radio Frequency Identification by Sagar Churi and Christopher Pappas Master of Business Administration 604 Dr. Hokey Min Operations and Supply Chain Management Monday, April 27, 2009
  • 2. Objectives What is Radio Frequency Identification?  How it can be implemented?  What are the advantages and disadvantages of RFID?  To better understand the above topics, three real-life case studies will be  presented.
  • 3. Radio Frequency Identification Automatic identification technology.  RFID uses radio waves to wirelessly transfer the identity of a product or a  person The purpose of RFID is to transfer data and provide information regarding  the location of a product, its price, its date of purchase, etc.  personal information  RFID has been used for more than one decade by thousands of companies  such as retail businesses, automakers, and hospitals. It is also used by the U.S. Government.
  • 4. Radio Frequency Identification RFID system consists of tags, readers, and a computer system.  RFID tags can be passive or active.  Tags consist of a computer microchip and an antenna. The antenna helps  scanners read the RFID tags. Reader is an electronic device which consists of one or more antennas that  transmit radio waves to the microchips and then receive back the identification number and the other information stored in the microchip. Each chip can give a unique serial number to every product. 
  • 5. RFID
  • 6. RFID Readers
  • 7. RFID in Every-Day Life
  • 8. Successful Implementation of RFID Training. 1. Team creation and operations/system analysis. 2. Radio frequency product profiling and tag/ reader /equipment selection. 3. Infrastructure and controls. 4. Implementation. 5.
  • 9. Successful Implementation of RFID Validation. 6. Local and remote data management. 7. 24 x 7 x 365 support. 8. ROI, operational verification and refactoring. 9.
  • 10. Advantages of RFID One of the most efficient 1. automatic identification technologies. No need of a person to scan 2. the tag Each item of a product has its 3. own identification code Tags can be read in a big 4. distance regardless of weather conditions
  • 11. Advantages of RFID RFID readers are faster than Barcodes readers.  RFID tags are better protected than Barcodes.  RFID microchips contain many information and are rewritable.  RFID system offers operations efficiency and flexibility. 
  • 12. Case Study I: Perfecting Just-In-Time Production Johnson Controls Business: manufactures car and truck seats for big automakers such as General  Motors, Toyota, and Chrysler. Mission Statement: “Deliver to automakers what they want, when they want it”.  Operations: Ships approximately 1,500 seats daily doing more that 20 deliveries.  Operation problem: To eliminate human error and ensure accuracy of the correct number and type of  seat in the exact order demand. Managers dilemma: RFID or Barcode Implementation?  Solution: RFID Implementation.  Results: System accuracy rate of 99.9%, human errors elimination, the range of seats’ production has  been smoothed, time saving and flexibility for the seat production and for the car industry.
  • 13. Case Study II: Logistics Gets Cheaper by the Yard NYK Logistics: Responsible for shipment and distribution of a high volume and variety of products.  Mission Statement: “Know exactly where each trailer is parked. Manage the flow of trailers. Know the  content of each container and where it is parked”. Operations: Serves 1,000 companies globally. 50,000 inbound ocean freight containers and 30,000 outbound  trailers pass the yard annually. Operation problem: To coordinate tractors, organize the yard, track the location of assets in the  yard, automatically update the location of trailers. Managers dilemma: Active-tag RFID or Barcode.  Solution: Active-tag RFID, integration of RFID system with Transload system.  Results: Cut check-in time by half, speed operations and save money, accurate and real time shipment and  distribution information, standardize communication with carriers and logistics partners, reducecharges levied by shippers.
  • 14. Case Study III: Boeing Finds the Right Stuff Boeing Wichita Facility: In a facility having the size of a small city, the building of commercial airplanes takes  place. In this unit is also the Military Development &Modification Center operates. Mission Statement: “Make sure that each one of the 15,000 employees has the right tool or right part at the  right time.” Operations: Designs, fabricates, and assembles fuselage structures, struts, and engine parts for almost all  Boeing’s commercial jetliners. Operation problem: To track transportation vehicles, material handling equipment and other assets, and  track the paperwork that goes with airplane parts. Managers’ challenges: make sure that new technology could coexist with existing technologies, integration of  the data. Solution: RFID system using UHF band.  Results: save labor, increase visibility, speed operations, reduce costs, managers have become more  efficient, 99% accuracy on the reads.
  • 15. Disadvantages of RFID High cost.  Passive tags cannot be read near metal or liquid.  When many tags are being read simultaneously , collisions may occur.  Static discharge or high power magnetic surges could damage the tags.  Social concerns regarding consumers’ privacy. 
  • 16. Conclusion RFID is widely being used by businesses, hospitals, governments, etc., in  order to wirelessly transfer data regarding the identity of an object or a person. RFID saves time and money.  Businesses that have successfully implemented RFID system admit that they  have increased their ROI, profits, and efficiency. RFID system does not only benefit a business but the whole supply chain. 
  • 17. Questions/ Comments ?
  • 18. Thank you!