スライド タイトルなし

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スライド タイトルなし

  1. 1. 0 METI Latest Developments in Policies on RFID Tags January 2006 Information Economy Division, Ministry of Economy, Trade and Industry
  2. 2. Issues Confronting Business in Japan 1 Diversification of Business Restructuring Customer Needs due to “Selection & Concentration” Intensification of Emphasis on the Competition due to the “Environment”, “Safety Rise of Businesses in & Security”, etc. Asia Enhanced Reduced Costs Customer Service Creation of a Strengthening of Development of New Business Environmental New Markets Model Protection & CSR A key issue is the realization of a new coordination between businesses based on advances in IT
  3. 3. What are the Potentials for RFID Tags? 2 ● Japan’s IT investment is low - at only one quarter the level of the U.S. [Current ● IT investments lean too heavily toward the optimization of within divisions of a Situation] ● business Establishment of an IT system that transcends businesses and industries is lagging Explosive expansion of RFID tags! ◆ By utilizing RFID tags, there is potential to build an information system that transcends divisions, ◆ By utilizing RFID tags, there is potential to build an information system that transcends divisions, businesses and industries, which covers the whole gamut from upstream, to downstream and extends businesses and industries, which covers the whole gamut from upstream, to downstream and extends as far as recycling. as far as recycling. → Total optimization of information, which had been managed with piecemeal barcodes at the various stages of parts manufacturer, manufacturer, wholesaler, and → Total optimization of information, which had been managed with piecemeal barcodes at the various stages of parts manufacturer, manufacturer, wholesaler, and retailer. retailer. ◆They have the potential to bring about revolutionary efficiencies in distribution in the individual ◆They have the potential to bring about revolutionary efficiencies in distribution in the individual aspects of all user industries, such as production, distribution, selling, inventory management, and aspects of all user industries, such as production, distribution, selling, inventory management, and waste management, etc. They also have the potential to be a driving force in giving rise to new waste management, etc. They also have the potential to be a driving force in giving rise to new services, and to enhance international competitiveness for all industries in Japan. services, and to enhance international competitiveness for all industries in Japan. → Revolutionary efficiencies in distribution by means of SCM; The creation of new industries in a wide range of fields including medicine, food, and education by means → Revolutionary efficiencies in distribution by means of SCM; The creation of new industries in a wide range of fields including medicine, food, and education by means of traceability. of traceability. ◆ Furthermore, with the utilization of RFID tags, there is the potential to further improve IT investment ◆ Furthermore, with the utilization of RFID tags, there is the potential to further improve IT investment especially in user industries; and through this, the potential to overcome problems related to IT especially in user industries; and through this, the potential to overcome problems related to IT investment in Japan. investment in Japan. → Facilitation of IT investment that leads directly to strengthened industrial competitiveness. → Facilitation of IT investment that leads directly to strengthened industrial competitiveness.
  4. 4. What are RFID Tags? 3 ◆ What are RFID tags? ・ A reader (reader/writer) generates a radio wave or a magnetic field, which induces a weak operating power in the RFID tag (IC tag), and which then reads the signal from (or writes to) the tag. ・ There is a limit to conventional IT (barcodes) meeting the increasing demands for product tracking (traceability) and efficient inventory management (supply chain management). There are great expectations for RFID tags. ◆ Features of RFID tags (compared to barcodes) (6) Able to read large (1) Information (3) Able to read (4) Able to read (5) Able to read (2) Able to write amounts of information at capacity is large unsighted from afar while moving once <Example of one-dimensional code> one- <Example of two-dimensional code> two- < Example of an RFID tag> Capacity: Capacity: unlimited Capacity: up to about 60 characters up to about 4,000 characters Chip Antenna microminiaturized chip component of an RFID tag 3x5cm RFID tags
  5. 5. Expansion of RFID Tags will Contribute to Strengthened Competition between 4 User Companies ★ Aim to strengthen competition in user industries By effectively using RFID tags, it is hoped that Japan’s user industries will become more efficient, and that this will generate new services, which will in turn sustain and enhance the international competitiveness of Japan’s user industries. ★ Target open sectors that cover multiple businesses At present, the areas in which RFID tags are being used practically, and in which their use is expanding, are closed sectors where they are reused within a particular business. Conversely, they are not being used practically in open sectors, which span across companies, where they can be traded in a disposable fashion. The key is the expansion of RFID tags in areas of business-to-business transactions ① International ② Price Reduction Standardization Japan is a trading nation, and so our Most users responded that they would introduce standards must be the international RFID tags if the unit price was 5 yen. (currently standards. several ten to several hundred yen)
  6. 6. Closed Sectors in which the Practical Application of RFID Tags is Advancing 5 Distribution centers (more efficient sorting) Revolving sushi restaurants (more efficient billing) University hospitals Clothing stores (reduced stocktaking times) Libraries (automated lending) (medical records location management) ★ In addition to the above, RFID tags have long been utilized in many factories in the field of factory automation.
  7. 7. Japan’s Strategies: Part 1 “Standardization” 6 ◆ Basic understanding of standardization It is essential that Japan’s standards be international standards In view of the current situation where Japan has adopted an open economic structure, and where many Japanese businesses trade internationally, then our standards for RFID tags must be international standards. ◆ Two important types of standardization Technical standards Product codes (Communication protocols)
  8. 8. What are product codes? -- examples of barcodes -- 7 ★ In the realm of barcodes, there were individual standards for each type of industry ● JAN (EAN) Code Main applications ● ITF (Standard Distribution Code) Main applications ・Food, ・Distribution sector General merchandise ・VCR programming ・POS management Features Features ・Popular worldwide ・Digits only (0-9) ・Digits only (0-9) ・8-digit and 13-digit types ● CODE39 Main applications ● NW-7 Main applications ・Used on labels for ・Factory automation home delivery services ・Used in industry ・Used in libraries ・Used on envelopes for developed photos Features Features ・U.S. military standard ・Possible to have numeric ・Digits + some symbols and alphabetic characters A unified standard is needed for RFID tags that can be used across industries
  9. 9. Standardization of product codes for RFID tagging 8 Japan proposed the unification of product codes for RFID tagging to the ISO ◆ The Study Group for Enhancing Product Traceability (established within the Ministry of Economy, Trade and Industry; cooperation by the Ministry of Land, Infrastructure and Transport, the Ministry of Agriculture, Forestry and Fisheries, and the Ministry of Health, Labour and Welfare) formulated the following proposal for the unification of coding systems, and submitted the proposal to the ISO (May 2003). ◆ It is hoped that ISO standardization will be finalized in FY 2005. ISO15459-4 Issuing Agency Code (IAC) Company Identification Number (CIN) Item Code Serial Number (JAN, CII, Duns, etc.) (Company A, Brand B, etc.) (Managed by (Managed by Ex.: Toyota, Kao... individual businesses) individual businesses) Ex.: Prius, Merit Shampoo Ex.: Vehicle Identification Number, Sharing of identifiers Lot Number The data length of the respective codes is not fixed, and common identifiers are inserted as required. The identifiers used are those standardized as ISO15418, which are already broadly shared internationally. Issuing Agency Code (IAC) Utilizes the IAC Code (ISO15459), which has been standardized by the ISO. Example: JAN 45 or 49; CII LA; D-U-N-S UN
  10. 10. Standardization of Technical Standards (Communication Protocols) 9 Background Background ◆ In order for RFID tags used in business-to-business transactions to become readable among different manufacturers, a minimum requisite standardization of communication protocols is necessary. ◆ However, communication protocols for the UHF-band RFID tags, which are the leading international standard for RFID tags used in business-to-business transactions, have been the subject of independent reviews by the internationally influential EPC Global and ISO. Two standards Two standards UHF band Frequency band 13.56MHz 433MHz 2.4GHz (800/900MHz) Communication ISO/IEC18000-6 ISO/IEC18000- ISO/IEC18000-3 ISO/IEC18000-7 ISO/IEC18000-4 protocols standards EPC Global standard ◆ Unifying these two standards was the biggest challenge. EPC Global: A nonprofit organization (NPO) for the standardization of RFID tags, jointly established by the international barcode standards bodies: EAN International (European Article Numbering)and the U.S. UCC (Uniform Code Council). In Japan, the Distribution Systems Research Institute was established as EPC Global Japan’s only point of contact.
  11. 11. Unification of International Communication Protocols Standards for UHF-band RFID tags 10 Background behind the achievement of uniform communication protocols Background behind the achievement of uniform communication protocols Up to 2004 EPC Global ISO Independent Reviews (user confusion) The Ministry of Economy, Trade and Industry and user industries worldwide have pushed strongly for unification Submitted standards to the ISO on ISO deliberation commenced January 11, 2005 on January 24, 2005 In 2005 EPC Global ISO/IEC18000-6 Next-generation protocols (resolved June 28) and beyond Toward unified international standards for RFID tags for business-to-business transactions (Plans to become ISO/IEC18000-6 type C)
  12. 12. Targets for International Standardization 11 ・ Gain an understanding of international standards for RFID, by classifying them into three levels as below classifying ・ Mutual cooperation for the standardization of technical specifications, coding systems, and fields of application specifications, Level 3: Standardization of common application specifications for each type of item to be tagged, and standardization of operations and other fields of application. Database SC /WG /SG ISO standards for each standard model of SCM that uses RFID, and standards ISO/IEC/JTC / that impact on all industries in Japan 31 <Relevant ISO> ・ISO 17363~17367 SCM Applications of RFID (Freight containers, Returnable transport items, 4 Transport units, Product packaging, Product tagging) Internet ・ISO 18185 Electronic Seals for Freight Containers 1 ・ISO 24729 Guidelines for RFID Implementation 5 ◎ In principle, the specifications from Level 1 are applied for the technical specifications of the RFID to be used. ISO/IEC/JTC Level 2: Standardization of description methods (syntax) for the structure of data to be SC /WG written into tags, and for identifiers, coding systems, etc. <Relevant ISO> 31 ・ISO 15963 Unique ID for RF Tags Identification codes ・ISO 15459 - 1~4 System of Unique Item Identification Codes for merchandise ・ISO 15434 Data Description Methods (syntax) proposed by Japan 2 1 / SC /WG /SG Reader Level 1: Standardization of hardware/software technical specifications of actual RFID. ISO/IEC/JTC / Standardization of communication between RFID and readers/writers 31 <Relevant ISO> ・ISO 18000 - 1~7 Air Interface ・ISO 15961, 15962 Data Protocol (system of tag-R/W and R/W-host commands) 4 IC Tag ・ISO 19789 Application Programming Interface ・TR 18046, 18047 RFID Performance Test Methods & Conformance Test Methods 1 3
  13. 13. Japan’s Strategies: Part 2 “Price Reduction” = Hibiki Project (1) 12 (1) Development Goals (1) Development Goals ◇ To reduce the price of RFID tags to 5 yen (currently several ten to several hundred yen). ◇ To build a system of stable supply to meet the domestic and international demand of RFID tags that comply with international standards. ◇ The deadline for development is the end of July 2006, and release to the market is planned 2006 for before the end of 2006. (2) Target for Development (2) Target for Development ◇ Development of a 5-yen inlet (integrating an IC chip and antenna) and an IC chip for reader/writers Tag IC Chip Inlet Reader/Writer IC Chip (3) Development Details (3) Development Details ◇ Development of technology for manufacturing low-cost antennas ◇ Development of low-cost mounting technology ◇ Miniaturization of international standard UHF-band IC chips
  14. 14. Hibiki Project (2) 13 (4) Specifications (4) Specifications [Basic Specifications] (1) Memory capacity: at least 512 bits (2) Rewritable (3) Reading speed: 10ms/unique ID or faster (4) Minimum read distance: 3m, Minimum write distance: 1m Note: The above specifications are subject to change according to the progress of the enactment of international standards and to changes to the Japanese legislation on radio waves. [Scalability for More Advanced Functions] Additional Additional More advanced functions Large Memory Sensor On-Metal Security Functions Capacity Hibiki Project RFID Tags (Inlet) = 5 yen Base (Development Target)
  15. 15. Hibiki Project (3) 14 (5) Development Framework (5) Development Framework ◇ In order to achieve the price target of 5 yen, responsibilities needed to be clearly defined. To this end, a “Technology Development Core Team” was formed, comprised of a “Core Company” to assume all responsibility related to development and “Cooperation Companies” to support that development. development ◇ Public applications were invited for the Core Company, and “Hitachi” was selected. Currently, the Cooperation Companies consist of four companies: “NEC”, “Dai Nippon Printing”, “Toppan Printing”, and “Fujitsu”. Assumes responsibility for the Assumes responsibility for the development of technology for development of technology for Hibiki Development Core Team IC chips, antennas, inlets, and IC chips, antennas, inlets, and Consignment reader/writer IC chips reader/writer IC chips Ministry of Economy, Contract Trade and Industry Core Company Cooperates mutually with the Cooperates mutually with the Core Company, and supports Core Company, and supports Cooperation Cooperation Cooperation Cooperation the development of the Core Company Company Company Company the development of the Core Company Company
  16. 16. 15 Current Status of the Hibiki Project Hibiki Project August 2, 2005 December 2005 2006 - First-stage prototype completed Second-stage prototype completed Used and evaluated in field trials IC Chip Antenna 2004 2005 2006 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 タ グ IC チ ッ プ 検 討 設 計 1次 試 作 ・評 価 2次 試 作 ・評 価 3次 試 作 ・評 価 響 プ ロ ジ イ ン レ ッ ト 検 討 設 計 試 作 ・評 価 設 計 試 作 ・評 価 シ ェ ス ク テ ト ム 技 リ ー ダ ラ イ タ 用 検 討 設 計 試 作 ・評 価 評 術 IC チ ッ プ ※ 1 価 開 発 評 価 用 リ ー ダ ラ イ タ 検 討 設 計 試 作 ・評 価 検 討 設 計 試 作 ・評 価 市 ▲ プ ロ トコル 公 開 場 リ ー ダ ラ イ タ ▲ イ ン レ ッ ト 仕 様 公 開 (予 定 ) の メ ー カ 立 ▲ リ ー ダ ラ イ タ 用 IC チ ッ プ 仕 様 公 開 ( 予 定 ) 上 と タ グ メ ー カ 響 イ ン レ ッ ト用 普 及 リ ー ダ ラ イ タ 、タ グ 化 実 用 化 検 討 ユ ー ザ
  17. 17. 16 World Movements World Trends in the Implementation of RFID Tags World Trends in the Implementation of RFID Tags Rank Country Company Intended Implementation of RFID Tags Sales* Standards Adopted for RFID Tags Requires that RFID tags be attached: UHF band 1st U.S. Wal★Mart by the top 100 delivery companies by Jan 2005 229.6 Code: GTIN (EPC) by the top 300 delivery companies by Jan 2006 UHF band (case/pallet) Recommends that RFID tags be attached: 5th Germany Metro by the top 100 delivery companies by Nov 2004 48.3 13.56MHz Band (product) Code: GTIN (EPC) Requires that RFID tags be attached: UHF band 6th U.S. Target by major delivery companies by spring 2005 42.7 Code: GTIN (EPC) by all delivery companies by spring 2007 Began attaching tags to cases of some products UHF band (case・pallet) 8th U.K. Tesco in Sep 2004 40.1 13.56MHz Band (product) Will attach tags to cases of all products from 2006 Code: GTIN (EPC) Recommends that RFID tags be attached: 11th U.S. Albertsons by the top 100 delivery companies by Apr 2005 35.6 Code: GTIN (EPC) Department of Requires that RFID tags be attached: - U.S. Defense by all delivery companies by Jan 2005 - Code: GTIN (EPC) Other companies have also steadily implemented RFID tags (GTIN: EPC), including: Carrefour, France (2nd: 65.0); Home Depot, U.S. (3rd, 58.2); Ahold, the Netherlands (7th, 40.8) * 2002 retail divisions. USD billion
  18. 18. Environmental Improvements, Designed for the Expanded Use of RFID Tags 17 ◆ Improvements to the environment are important for the expanded use of RFID tags. In addition to an “Assessment of Conditions Overseas”, “Standardization”, and “Price Reduction”, this includes: (1) A system of UHF band frequencies (2) Creation of rules for the treatment of privacy issues. For this purpose, (3) Field trials will be promoted for each industry and for each application. Environmental improvements, designed for the expanded use of RFID tags Frequencies Privacy Promotion of Field Trials
  19. 19. Trend of Frequencies for RFID Tags 18 ◆ There are strong expectations in industry for the opening up of the UHF band (800/900MHz band). It carries a long way, is easy to use at distribution sites because it circulates and permeates well, is being used in the Europe and the U.S., and is predicted to become the international standard of the future. High Frequency (HF) Ultra High Frequency (UHF) Microwaves Frequency band 13.56MHz 433MHz 800/900MHz 2.4GHz International ISO 18000-6 ISO 18000-3 ISO 18000-7 ISO 18000-4 technical standards EPC Global UHFGen2 Radio wave type Electromagnetic induction type (Information is transmitted by being carried on radio waves; Method of (Information is transmitted The information can travel far.) communication by changing the magnetic field; The information cannot travel very far.) with battery without battery ・ IC cards (Suica, etc.) ・ Container ・ Products ・ Products ・ Merchandise Main applications management ・ Cargo ・ Shoplifting prevention up to several dozen Read distance up to 1m meters up to 8m Up to 2m U.S. ○ ○ ○ ○ Regulated use of radio Europe ○ ○ △ ○ waves (Proposed 865~868) Japan ○ ×⇒○ ○ ○ In April 2005, the Ministry of Internal Affairs and Communications revised the ministerial ordinance on the high-power 800/900MHz band. Institutionalization of the low-power 800/900MHz and 433MHz bands is predicted for the future.
  20. 20. 19 Treatment of Privacy Issues (1) ◆ RFID tags are able to have information contained within them read remotely. Therefore, if items are delivered to consumers with RFID tags still attached, the following kinds of concerns are likely in the future. (1) Information contained within an item owned by a consumer can be involuntarily read without the consumer realizing. (2) If personal information is recorded on the RFID tags, that information can be involuntarily read without the consumer realizing. For example, the following concern is envisaged for the future... Reader “Anne of “Anne of Green Gables” Green Gables” The title of the book is recorded on the RFID tag. There is a concern that someone nearby could read the title of the book, which is in a person’s bag, without them realizing. ◆ To this end, in order that measures not end up playing catch-up, the then Ministry of Public Management, Home Affairs, Posts and Telecommunications (currently the Ministry of Internal Affairs and Communications), and the Ministry of Economy, Trade and Industry consorted to gather the basic concepts so far as consensus was reached by the relevant parties at the present stage. On June 8, 2004, they formulated and publicly released those guidelines. ◆ Furthermore, in order that the guidelines conform internationally, they are pushing forward with adjustments in line with ISO and other standards.
  21. 21. Treatment of Privacy Issues (2) 20 Overview of the “Guidelines to Protect Privacy on RFID Tags”, formulated through the cooperation of METI* and MPHPT* * METI: Ministry of Economy, Trade and Industry. * MPHPT: Ministry of Public Management, Home Affairs, Posts and Telecommunications (currently the Ministry of Internal Affairs and Communications) (1) Items targeted by the Guidelines Businesses that use RFID tags. Instances where RFID tags remain attached to items even after being handed over to consumers. (2) Obligation to indicate the fact that RFID tags are attached The fact that an RFID tag is attached, the location where it is attached, and the details of the information recorded need to provided to consumers by means of an explanation or notice, or an indication displayed on the merchandise/packaging. (3) Consumers reserve the ultimate right of choice regarding the reading of RFID tags The method for making tags unreadable is to be disclosed to consumers in advance, in case they want to exercise that choice. (4) Restrictions in instances where personal information is recorded on RFID tags If personal information recorded on RFID tags is to be handled, then, regardless of the amount of that personal information, the following matters regarding such personal information recorded on the RFID tags should be protected: (1) Notification to the person and public announcement regarding the intended use of the information; (2) Consent from the person in instances where the information is to be used for other purposes; (3) Assurance of the accuracy and currency of the personal information; (4) Disclosure and revision of the information at the request of the consumer; and (5) Prevention of the loss, damage, alteration, or leakage of the recorded information. (5) Establishment of an information manager (6) Provision of explanations and information to consumers Government and relevant organizations, such as traders associations, should ensure that they help consumers understand, by providing information related to the intended use of the RFID tags, their quality, and their merits and demerits, etc.
  22. 22. 21 Promotion of Industry Field Trials ◆ Conduct field trials in several user industries, which envisage the practical application of RFID tags. Concurrently examine improvements to the supply chain for each industry. In FY 2003, conducted field ○ On December 4, 2003, Japan’s first license acquired for UHF-band RFID tags (within shield rooms). trials ○ From March 9, 2004, Japan’s first field trial commenced in actual factories, distribution warehouses, and stores. in 4 industries ○ Included tests for comparing UHF band with other frequencies (13.56MHz, 2.4GHz). Industry Field Trial Principal Trial Location & Target Merchandise Results Participants Home Association for [Store] DEO DEO Head Office & Itsukaichi Store (Hiroshima) (Shield room) [Distribution Warehouse] Matsushita Logistics, Hiroshima Merchandise Center Appliances Electric Home (Hiroshima) Dec 2003 - Feb 2004 Appliances Sanyo Electric Logistics, Fukuoka Logistics Center (Fukuoka) Sony Supply Chain Solutions, Odaiba Operation Center (Tokyo) [Factory] Sharp (LCD TV) (Nara) (Open air) Daikin Industries (Room air-conditioners) (Shiga) Sony (Notebook computers) (Nagano) Mar - May 2004 Mitsubishi Electric (refrigerators) (Shizuoka) Matsushita Electric Industrial (Plasma TV) (Kanagawa) Matsushita Electric Works (Inverter lights) (Osaka) Sanyo Electric (Digital cameras) (Hyogo) Toshiba Home Appliance Products (Washing machines) (Aichi) Hitachi (LCD projectors) (Kanagawa) Pioneer (DVD players) (Saitama) [Store] Mitsukoshi Head Office & Isetan Shinjuku Store (Tokyo) (Open air) Apparel Japan Apparel [Distribution Warehouse] Onward Kashiyama, Atsugi Distribution Center Industry Council (Kanagawa) Mar - May 2004 Sanyo Shokai, Shiomi Distribution Center (Tokyo) [Factory] Yasuda Sewing, Aomori Factory (Aomori) Utsushikawa Sewing, Asuka Factory (Yamagata) Japan Publishing [Store] Sanseido, Jiyujikan Store (Tokyo) (Open air) Publishing [Distribution Warehouse] Showa Tosho, Koshigaya Distribution Center Organization for Information Infrastructure Development (Koshigaya-shi, Saitama) Mar - May 2004 Food Study Group for the [Store] Maruetsu, Shiomi Store (Tokyo) (Open air) Enhancement of Food [Distribution Warehouse] Ryoshoku, Shiraoka Distribution Center (Saitama) Distribution Yukijirushi Access, Takasaki Fresh Food MD Center (Gunma) Mar 2004 Distribution
  23. 23. Promotion of Industry Field Trials (2) FY 2003 Field Trial Conditions 22 (1) Shield room experiment (1) Shield room experiment ◆ Conducted experiments in a shield room to collect basic data from tags made by four manufacturers of UHF-band RFID tags. ◆ Measured the read distances of U.S. 915MHz-band RFID tags using a reader/writer converted for the 950MHz band for Japan. [Manufacturers participating in the trial] ○ Japan RF Solutions (Intermec) ○ Nihon Information Systems ○ Toray International (Alien) ○ Mighty Card (Matrix) [Views of the experiment]
  24. 24. Promotion of Industry Field Trials (3) FY 2003 Field Trial Conditions 23 (2) Trials in the home appliances industry (2) Trials in the home appliances industry ◆ Conducted experiments in actual warehouses and stores to measure the accuracy of readings of RFID tags attached to home appliances. Warehouse experiment Store experiment Stocktaking Antenna Bulk goods inspection using a forklift Shoplifting Prevention Gate Gate fitted with antennas Gate fitted with Pallets loaded with TV antennas boxes are passed through (Antennas fitted at six locations on both sides)
  25. 25. Promotion of Industry Field Trials (4) FY 2003 Field Trial Conditions 24 (3) Trials in the publishing industry (3) Trials in the publishing industry ◆ Experiment at Sanseido’s “Jiyujikan” Store (Kanda, Tokyo) Displays for store demonstration UHF-band RFID tags affixed in comics Antenna Bulk reading of comics arranged on shelves.
  26. 26. Promotion of Industry Field Trials (5) Results and Issues in the FY 2003 Field Trials 25 (1) Example of trial results (1) Example of trial results ◇ Verified the performance of the 950-956MHz-band reader/writer. Results from It was determined that even tags tuned into the U.S. 915MHz frequency are able to be read from a distance of 3-5 the shield room meters, meaning an adequate performance is achievable. ◇ UHF-band RFID tags achieved outstanding performance, such as read distance, permeation, and reading systems. (Note that performance depended on the trial location.) Recognition rate for transit forklift Detection rate for shoplifting prevention Recognition rate for products arranged Reference: Trial results in the home on shelves Average recognition rate Walk (4km/h) Jog (8km/h) Recognition When boxes stacked Results detection rate detection rate rate When tags attached to opposite side appliances industry from UHF band 98.9% 100% 100% 99.1% ○ the field trials 2.4GHz 79.0% 60% 0% 97.3% × • For UHF, transit speed * For UHF, gate width is 1.6m * Recognition rate is the average value • is 36m/min For 2.4GHz, gate width is 1.1m for arranging 45 small products on a For 2.4GHz, shelf and measuring them 5 times • transit speed is 7.5m/min (2) Issues (2) Issues “License Restrictions” ◇ Adequate performance was not achievable in cases where there were license conditions, such as the windows at the trial location being sealed with aluminum sheets, or the output from the reader/writer dropping to less than one-tenth.
  27. 27. Promotion of Industry Field Trials (6) FY 2004 Field Trials 26 ◆ In FY 2004, trials were expanded to further industries. 7 business fields were selected via public application. Industry Field Trial Principal Participants Trial Overview Construction machinery / Japan Construction Equipment Manufacturers ● Develop a supply chain system for construction and similar machinery, Industrial vehicles / Association, Japan Industrial Vehicles Association, from components factories to distribution agents; and verify its operating efficiency. Agricultural Japan Farm Machinery Manufacturer's Association ● In particular, aim for a zero-inventory business model, by ordering components in real time. machinery industries Japan Book Publishers Association, Japan Magazine Publishers Association, ● Develop a supply chain system, from bookbinding plants to distribution agents; Japan Publication Wholesalers Association, and verify its operating efficiency. Book-related industry Japan Booksellers Federation, Japan Library Association ● Aim to develop a mechanism for stolen books and other illegally distributed items, (Japan Publishing Organization for Information in order for secondhand bookstores to determine whether or not to make purchases. Infrastructure Development) ● Develop a supply chain system, from electronic components plants Home appliances industry / Association for Electric Home Appliances, to home appliance assembly plants, distribution warehouses and retailers; Electronics and Japan Electronics and Information and verify its operating efficiency. electric instruments Technology Industries Association ● Be able to trace hazardous substances contained in components; industry and establish a business model designed for recycling efficiencies for home appliances. ● Develop a supply chain system, from pharmaceutical plants to hospitals; Pharmaceuticals Federation of Pharmaceutical and verify its operating efficiency. industry Manufacturers' Associations of Japan ● In particular, aim for a system structure where the traceability of biologic pharmaceutical products, as required under the Pharmaceutical Affairs Law, can be conducted efficiently. ● Develop a supply chain system, from apparel and shoe factories to wholesalers, Department store department stores and specialty shops; and verify its operating efficiency. Japan Department Stores Association, industry / ● In particular, aim for a system structure that raises customer satisfaction Japan Apparel Industry Council Apparel industry without missing any sales opportunities on the sales floor, by making inventory management at stores more efficient. ● Conduct verification related to the effectiveness of security measures for freight containers Logistics industry Japan Federation of Freight Industries between the ports of Tokyo, Yokohama, Nagoya, Osaka and Kobe, and the ports of various districts around the world, as well as verification of the efficiencies of port operations. Recording Industry Association of Japan, ● Develop a supply chain system, from CD and DVD press factories to distribution warehouses, Japan Video Software Association, Record industry / retailers and rental stores; and verify its operating efficiency. Record Trade Association of Japan, DVD & CD industry Compact Disc & Video Rental Commerce ● Aim to establish new marketing techniques in stores, Trade Association of Japan such as audio-visual systems coupled with RFID tags.
  28. 28. 27 Results of the FY 2004 Field Trials ◆ “Economy” is the generation of added-value through the flows of information, goods and services. RFID tags are a technology that facilitate these flows, and which achieve optimization of the whole economy. ◆ Accordingly, the assessment of RFID tags, is that they possess the ability to extract the greatest value from economic and industrial activities. Industry Outcomes of the Field Trials (compared with barcode operations) Construction machinery, Industrial vehicles, ・ Reduced the equivalent of 2.7 billion yen in personnel costs, through savings of labor at delivery- Agricultural machinery industries receipts Book-related industry Home appliances industry, Electronics and electric ・ Reduced inspection times by about 90%. instruments industry Pharmaceuticals industry ・ Annual cost reduction effect worth 10 billion yen as a result of shortened stocktaking times and shortened inspection times at delivery receipt and dispatch. Department store industry, ・ Sales increase of 10% as a result of a reduction in lost sales opportunities backed Apparel industry by the swift provision of inventory information. ・ From April 2005, some department stores to take up full-scale implementation of RFID tag systems. ・ Annual cost reduction effect worth 20.5 billion yen in personnel costs, Logistics industry due to savings of labor at goods inspection. Record industry, ・ Reduced stocktaking times by three quarters. DVD & CD industry
  29. 29. Outcomes of FY 2004 Field Trials: 28 Construction Machinery, Industrial Vehicles, and Agricultural Machinery Industries ・ Severe environment Background to Metal rich (irregular reflections of radio waves caused by metals); Vibration and noise levels Background to the field trial (presence of power sources and motors) the field trial ・ Various kinds of components and numerous suppliers Number of components: Approx. 10,000; Number of major traders: 130 ±10 (in the case of Komatsu) Issues Issues ・ Whether RFID tags can be used in such a severe environment to be verified to be verified ・ Improve the efficiency and accuracy of production and delivery processes Field Trial Principal Participants: Japan Construction Equipment Manufacturers Association, Japan Industrial Vehicles Association, Japan Farm Machinery Manufacturer's Association Cooperating Businesses: Mitsui Global Strategic Studies Institute, Nihon Unisys, Toppan Printing... Trial Period: Dec 2004 - Feb 2005 Trial Location: Komatsu, Awazu Plant (Ishikawa); Hitachi Construction Machinery, Tsuchiura Plant (Ibaraki); Daikyo (Ishikawa)... Current situation After the application of RFID tags Develop and test RFID tags which give Develop and test RFID tags which give no less accurate readings even when no less accurate readings even when Difficult adjustment attached to metallic products attached to metallic products Production in tune Production adjustments with Changes to plans Change of plans the status of in view of the status Production adjustments (monthly, weekly) assembly of production at at the equipment Equipment assembly plant manufacturer the suppliers Production adjustments Supplier Subcontracted suppliers Supplier Image Equipment assembly plant Production delay Accurate production Optimum Production delay production Overproduction Production delay Investment in smooth Overproduction production line Surplus inventory Stock-out Smooth logistics Accurate inventories Wasteful logistics
  30. 30. Reference: Image of the Trials in the Construction Machinery, Industrial Vehicles, 29 and Agricultural Machinery Industries ■ Manage manufacturing processes by attaching RFID tags to components ■ Introduce next-generation kanban (just-in-time) systems ■ Overcome environments which have lots of metal and which easily trigger the irregular reflection of radio waves Komatsu, Awazu Plant Daikyo Attachment of RFID tags Attachment of RFID tags Engine hood Processing and assembly information; Component Wheel loader inventory information Supply engine hood Delivery information; Assembly process information; Stock-out Floor frame information Delivery of replacement components, etc.
  31. 31. Outcomes of FY 2004 Field Trials: 30 Construction Machinery, Industrial Vehicles, and Agricultural Machinery Industries Field Trial Features & Outcomes Field Trial Features & Outcomes I. More efficient production processes ・ Annual reductions in personnel costs equivalent to approximately 2.7 billion yen, through the automation of operations related to receiving deliveries of components. ・ Annual reductions in personnel costs equivalent to approximately 9 million yen, through the automation of operations related to assessing the progress of production. (10 major domestic manufacturers of construction machinery) II. Reading performance for RFID tags in real environments ・ The reading performance of UHF-band RFID tags can sufficiently stand up to practical use. UHF- ・ There is no radio noise, which could interfere with UHF-band RFID tags in factories, and they can be used without difficulty. UHF- difficulty. ・ Even for 2.4GHz-band RFID tags, sufficient performance was achieved when it came to environmental resistance. 2.4GHz- They are sufficiently functional in situations where they are not moving at a fast speed. not III. Improvements to the efficiency and accuracy of delivery operations ・ Standardization of forms used in delivery is an issue, and a detailed examination was undertaken. detailed ・ Much knowledge and information for the standardization of forms was attained from the examples of pilot activities conducted in deeply involved industries. ・ Points and a structure were brought together for promoting the standardization of the format and data items for forms. standardization ・ The relationship between the read time for RFID tags and the speed at which parts are moved, when there speed is a large amount of data: - Load RFID tags with only UID, and have other information acquired via a network, or acquired Future issues Future issues Load RFID tags with large amounts of information, and lower the speed at which tags are passed through the gate, etc. ・ Coping strategies for when errors arise during reading.
  32. 32. Outcomes of FY 2004 Field Trials: Book-related Industries 31 ・ Increase in inspection operations when goods are received, as the number of published items also increases the Background to Background to (more than 70,000 new items are published each year). the field trial the field trial ・ Shoplifting, the rampant return of fraudulent goods, and the circulation of stolen goods circulation (annual cost of shoplifted books is 46.2 billion yen). ・ Develop a system for attaching tags that can cope with approximately 70,000 new publications each year, approximately or 3 million books. Issues Issues ・ Assess the impact of RFID tags on the dissolution process of books on return (return rate 40%). books to be verified to be verified ・ Develop new services by interfacing with mobile phones (display overviews, etc.). ・ Link with systems that manage collections at libraries. ・ Prevent the purchase of stolen goods at secondhand bookstores. Field Trial Principal Participants: Japan Book Publishers Association, Japan Magazine Publishers Association, Japan Publication Wholesalers Association, Japan Booksellers Federation, Japan Library Association (Japan Publishing Organization for Information Infrastructure Development) Cooperating Businesses: NTT Communications... Trial Period: Jan - Mar, 2005 Trial Location: Kinokuniya, Shinjuku-minami Store (Tokyo); Sanseido Head Office (Tokyo)... Bookstore, Bookstore, Secondhand Secondhand Publisher Publisher Agency Agency Reader Reader Library Library Bookstore Bookstore ・Inspection of ・Inspection of ・Inspection of ・Orders placed ・Prevention of Usage applications for delivered goods delivered goods delivered goods at bookstores the purchasing of ・Inventory (collection) ・Inventory management ・Sorting by bookstore management ・Acquisition of stolen goods ・Processing of ・Inspection of goods ・Management of sales information RFID tags orders received for delivery and purchases information at the bookstore ・Sophistication of marketing ・Sophistication of ・Sorting by delivery route ・Using libraries information marketing information ・Inventory management ・Processing of orders placed ・Processing ・Returns of orders received ・Prevention of shoplifting ・Prevention of unauthorized removals, and management of return dates
  33. 33. Reference: Characteristics of the Book-related Industry 32 ◆ Logistical Characteristics ☆ No price competition (Resale price maintenance system) ☆ Returned goods system ☆ Fixed channels of distribution ◆ Merchandise-related Characteristics ☆ No repeat purchases of the same merchandise ☆ Large number of new products launched onto the market (limited production of diversified products) ☆ Easy to recycle/resale
  34. 34. Outcomes of FY 2004 Field Trials: Book-related Industries 33 Field Trial Features & Outcomes Field Trial Features & Outcomes I. Technology for attaching RFID tags to books ・ RFID tags were fixed to paper the size of postcards, and were incorporated into comic books in the actual automated book-binding line. The post-processing failure rate was less than 1%. II. Supply chain management in the publishing industry ・ Compared to visual inspections and the inspection of goods using conventional barcodes, the time taken for delivery receipt and dispatch operations was reduced by approximately 90%. ・ Compared to checkouts using conventional barcodes, the time taken for checkout operations at agencies was reduced by approximately 90%. III. Effectiveness for library operations ・ Compared to taking collection inventories using barcodes, the time taken for such operations was reduced by several dozen percent. ・ Development of a technology for attaching tags which is best suited to mass production. - Need to develop an attaching technology feasible for mass production, which costs less than Future issues Future issues the postcard process. ・ Reform of business processes to achieve management of individual items; and standardization of product coding system - Under current business processes, management of individual items is limited to libraries, etc.
  35. 35. Outcomes of FY 2004 Field Trials: 34 Home Appliances Industry, Electronics and Electric Instruments Industry Background to Background to ・ Need for traceability throughout the life cycle, from manufacture to recycling. the field trial the field trial ・ Shift to a recycling-based society (reduce, recycle, reuse). ・ Prevention of illegal dumping and black-market selling, by realizing a Issues to be Issues to be traceability system. verified verified ・ More efficient manufacturing processes; more efficient inspection of goods when received and dispatched; labor savings at checkout operations Field Trial Principal Participants: Association for Electric Home Appliances, Japan Electronics and Information Technology Industries Association Cooperating Businesses: Fuji Research Institute Corporation, Hitachi... Trial Period: Feb 2005 Trial Location: K‘s Denki, Shonan Hiratsuka Store; Denkodo, Hokkaido Iwa-Misawa Store... Set Set Assembly Assembly Store (general Store (general Store Store Components Components Store Store Collection & Collection & Manufact Manufact Manufactur Manufactur Logistics Logistics merchandising merchandising (regular (regular Manufacturers Manufacturers (consumer) (consumer) Recycling Recycling urers urers ers ers stores) stores) stores) stores) Usage applications for More efficient Reduced ・Realize a model for the Savings of labor, manufacturing processing business-to-business prevention of crime, Information Repair and RFID tags processes times and Prevention of exchange of quality and and improved service management servicing Savings of savings of illegal environmental information at the inspection of that allows records, reuse labor during labor for the dumping and for components delivered goods, fine-tuned (secondhand the inspection inspection of black-market ・Realize a model for inventory customer goods) of goods goods selling managing product management, and service classification... received and received and information stocktaking dispatched dispatched
  36. 36. Reference: Image of the Trials in the Home Appliances and the Electronics 35 & Electric Instruments Industries ・ RFID tags were used in management, not just at the distribution stage, but also at the production stage in factories, at the consumer usage and maintenance service stage, and at the recycle and reuse stage. ・ Through standardization and unification, worked towards the development of a common infrastructure that transcends industrial, merchandise and national borders.
  37. 37. Outcomes of FY 2004 Field Trials: 36 Home Appliances Industry, Electronics and Electric Instruments Industry Field Trial Features & Outcomes Field Trial Features & Outcomes I. Examination of models to be used across the entire life cycle ・ The merits for using and the issues in adopting, were summarized for each of the models used by home appliance manufacturers, distributors, stores, and consumers. These were used to create reference materials for adopting specific models. create II. Field trial in the forward supply chain for home appliance ・ By using RFID tags, the time for inspecting home appliances was reduced to 38 seconds for individual readings, and 8 seconds for bulk readings. (50 irons: 10 irons x 5 boxes per package. Inspection involved confirming name of product model, boxes model, JAN code and serial number.) This compares to 8 minutes and 38 seconds for the conventional visual inspection, and 5 minutes for barcode inspections. visual III. Field trial in environmental traceability for electronics and electric instruments ・ Quality and environmental information was exchanged between components manufacturers and set manufacturers, components and it was possible to trace what environmental materials had been used for each manufactured component had and for each manufactured product. ・ Throughput capacity and error-handling methods for when handling large volumes of products. ・ Realization of an environmental information exchange model Future issues Future issues - Standardization of data items when linked with in-house systems - Realization of a system that discloses environmental information
  38. 38. Outcomes of FY 2004 Field Trials: Pharmaceuticals Industry 37 ・ Mandatory keeping of sales records, including preparation names of biologic pharmaceutical products Background to Background to (2003 revision to the Pharmaceutical Affairs Law). the field trial the field trial ・ More efficient management of the enormous number of ampoules ・ Pursuit of traceability and safety Issues Issues ・ Automated attachment of tags (labeler) to products which are small, well curved, and fragile. small, to be verified to be verified ・ Mounting of antennas with high recognition rates, concurrent with the attachment to the well-curved surface. with well- Field Trial Principal Participants: Federation of Pharmaceutical Manufacturers' Associations of Japan Cooperating Businesses: Toppan Printing, SAP Japan... In collaboration with the Ministry of Health, Labour and Welfare Trial Period: Jan - Feb, 2005 Trial Location: Toppan Packaging Service (Saitama), Toho Pharmaceutical (Tokyo), Alfresa (Tokyo)... Consistent traceability from manufacturers to hospitals Consistent traceability from manufacturers to hospitals by usage unit by sales unit by package unit by pallet/cargo unit Ampoule Manufacturer of a biologic pharmaceutical Wholesaler Medical Medical Wholesaler Institution Institution Develop a tag Develop a tag that can function even that can function even when wrapped around this small ampoule when wrapped around this small ampoule
  39. 39. Reference: Mandatory Recording and Saving of Product Information 38 under the Pharmaceutical Affairs Law Example) 4E146B Current status: Visual data entry into computers involves possibilities of mistyping and misreading: Is the character a 1 (number) or I (letter)? Is the character a 0 (number) or O (letter)?
  40. 40. Outcomes of FY 2004 Field Trials: Pharmaceuticals Industry 39 Field Trial Features & Outcomes Field Trial Features & Outcomes I. Basic tests related to performance ・ The degree of readability was determined in cases where RFID tags are wrapped around cylindrical ampoules. tags It was concluded that recognition rate was poor when read at 90 degrees, but this could be solved by taking readings from multiple angles or by taking readings while rotating the target items. angles ・ It was determined that 13.56MHz-band and UHF-band RFID tags are superior to 2.4GHz in cases 13.56MHz- UHF- where the pharmaceutical products contain liquids. II. Development of labelers ・ The technology was developed that embeds RFID tags into the labels. labels. ・ Equipment was developed that automatically affixes labels embedded with RFID tags, embedded and labels were successfully attached to 10mm-diameter ampoules without any difficulty. 10mm- III. Supply chain field trial ・ Inspection-related operations, conducted using the current visual or barcode methods, were reduced by about 91%. Inspection- barcode ・ Man-hours at manufacturers and warehouses, related to receiving goods, shipping goods, Man- goods, and inspecting goods for delivery, were reduced (by approximately 48% at manufacturers, and 23% at warehouses). approximately ・ Improvements in accuracy for multiple bulk readings - Operational improvements, such the timing of readings and the transit speed transit ・ Efforts to achieve traceability Future issues Future issues - Management in terms of individual products is not conducted at the upstream of the supply chain. the However, at the medical frontline, there needs to be management of expiry dates - and usage logs by individual product. Furthermore, in order to achieve traceability, RFID tags need to be attached to individual products - when they are manufactured.
  41. 41. Outcomes of FY 2004 Field Trials: Department Store Industry, Apparel Industry 40 ・ Need for precise responses to selective consumption, spanning color, design, style, Background to Background to the field trial size, etc. the field trial ・ Limit to display space, and time lost confirming inventories. ・ More efficient inventory management, and assurance of ability to satisfy demand Issues Issues to be verified to be verified by eliminating stock-outs. ・ Reduced customer service times, and increased sales. Field Trial Principal Participants: Japan Department Stores Association, Japan Apparel Industry Council Cooperating Businesses: NTT Communications, NTT Comware, Nihon Unisys, Dai Nippon Printing... Trial Period: Dec 2004, Feb 2005 Trial Location: Mitsukoshi, Nihonbashi Store; Hankyu Department Store, Yurakucho Store; Arcakit Kinshicho, Kumikyoku FAM... (Field trial in women’s shoes) Manufacturer Manufacturer Wholesaler Wholesaler Retailer Retailer Shipping Tagging Inspection of delivered goods Record sales ★ Average customer PDA searching service time reduced Inventory by 20% management Inspection of goods for delivery Inspection of delivered goods Stocktaking ★ Able to confirm Self searching inventories by supplier ★ Stocktaking completed in 4 minutes per shelf, in contrast to 15 minutes with barcodes
  42. 42. Outcomes of FY 2004 Field Trials: Department Store Industry, Apparel Industry 41 Field Trial Features & Outcomes Field Trial Features & Outcomes I. Basic tests related to performance ・ A comparative study was conducted on whether RFID tags should be attached to shoe boxes or the shoes themselves. In terms of accuracy in readings, attaching tags to shoe boxes was better. boxes II. Verification of effectiveness in the supply chain ・ Annual savings of approximately 10 billion yen in operational costs would be achieved for apparel merchandise, costs by reducing the reading operations (currently by barcode) during stocktakes and during the inspection of goods during when received and dispatched. (All member companies of the Association of Department Stores) ・ Sales would increase by 11% for women’s shoes, by reducing the loss of sales opportunities by means of providing swifter women’ inventory information, etc. III. Manufacture and issue of integrated tags ・ Developed an integrated tag that embeds an RFID tag into the tag attached at the manufacturing plant. Confirmed that there are no damages or other defects. ・ When introduced, it would be possible to attach an integrated tag at the manufacturing plant. tag ・ Performance improvements in writing data to the RFID tags - Until tags can be actually attached at the point of production, Future issues Future issues - writing data onto individual products will be an operation for the distribution center or store. - It takes time to write the data, and the workload would be great. great. ・ The ideal method for exchanging data between businesses - Standardization of coding systems, and agreement on information items, etc. are necessary.
  43. 43. Outcomes of FY 2004 Field Trials: Logistics Industry 42 ・ Increased requests by private sector companies for upgrades and greater efficiency in Background to Background to services from the logistics industry. the field trial the field trial ・ Requests for the strengthening and establishment of security related to international logistics, arising from the 9-11 terrorist attacks in the U.S. Issues to be Issues to be ・ Ensuring the visibility of containers. verified verified ・ Increased automation and efficiency of goods inspections, and prevent incorrect shipments. ・ Tracing of temperature, humidity, light and impact histories (quality control). Field Trial Principal Participants: Japan Federation of Freight Industries Cooperating Businesses: Mitsubishi Research Institute, IIJ, Nihon Unisys, Toppan Printing , Mitsui & Co., Ltd... Trial Period: Dec 2004 - Feb 2005 In collaboration with the Ministry of Land, Infrastructure and Transport Trial Location: Ports of Tokyo, Yokohama, Nagoya, Kobe..., Hong Kong, Dalian, Los Angeles, Antwerp An electronic seal for attaching to containers (Active-type 433MHz)
  44. 44. Reference: Image of the Field Trials in the Logistics industry 43 Readings at Hardware vanning/devanning Product Item Software (Package) 950MHz Case 2.4GHz (Passive) Pallet System of shared platforms (compliant with the EPC System) Container Container Identification Tag Electronic Seal 433MHz (Active) * Need to examine the possibility of 950MHz (Passive) combining electronic seals with electronic eals container identification RFID tags. tags.

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