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RFID Group  Members: Katherine Hughes, Justin Behm, Alan Gilewski, Robert Worth, Daniel Crucz, Michalis Kritikos Group Num...
Presentation Overview <ul><li>Introduction </li></ul><ul><li>Business Applications </li></ul><ul><li>Advantages of RFID </...
Why is RFID important to you? <ul><li>Technology is continuously improving and changing the business world. </li></ul><ul>...
Goals to Achieve  <ul><li>Detailed description and definition of RFID </li></ul><ul><li>Make audience aware of various adv...
RFID Stands For… <ul><li>R ADIO </li></ul><ul><li>F REQUENCY  </li></ul><ul><li>ID ENTIFICATION   </li></ul>
RFID Defined  <ul><li>A technology which incorporates the use of electromagnetic coupling and radio waves to identify an o...
History and Development <ul><li>First Developed during WWII.  </li></ul><ul><li>Created from radar experiments.  </li></ul...
History Of Use <ul><li>After WWII security and safety was needed due to the use of nuclear materials, which lead to furthe...
RFID in the 1980’s <ul><li>The 1980’s bought a great amount of development. In 1987 Norway had implemented the first succe...
1990’s to Present <ul><li>From the 90’s to the present RFID manufactures are in deep competition to be the company to sell...
How Does RFID Work? <ul><li>RFID is comprised of three major components: </li></ul><ul><li>♦  An antenna or coil </li></ul...
RFID In Use
Antenna or Coil <ul><li>The antenna emits radio signals to activate the tag and to read and write data into the tag. </li>...
Antenna and Coil Continued… <ul><li>The electromagnetic field, which the antenna produces, is constantly present when mult...
RFID ANTENNAS
Transceiver (with decoder) <ul><li>The reader releases radio waves in ranges from one inch to 100 feet or more. The range ...
RFID READER
Transponder (RF Tag) <ul><li>RFID tags are the heart of the RFID system because they store the information that describes ...
Active Tags <ul><li>Contain a battery that runs the microchip’s circuitry. </li></ul><ul><li>Tag is able to send a stronge...
Passive Tags  <ul><li>Passive tags contain no batteries.  </li></ul><ul><li>Passive tags get power from a reader.  </li></...
Read-Only Tag <ul><li>Read-only contain data such as tracking numbers.  </li></ul><ul><li>These tracking numbers are usual...
Write-Once & Read-Write <ul><li>Write-once  tags allow a user to write information into the tag one time during the produc...
RFID TAGS
Business Applications
Asset Tracking <ul><li>RFID tags applied to company assets which are stored away </li></ul><ul><li>Companies then use the ...
RFID Utilized in Manufacturing <ul><li>Manufacturing companies utilize RFID to track parts </li></ul><ul><li>Work-in-Progr...
RFID Used In Retail <ul><li>Assists in identifying which products need to be restocked </li></ul><ul><li>When shelf suppli...
Payment Systems <ul><li>Helps speed up processes where payments are necessary. </li></ul><ul><li>Most commonly found on to...
Security and Access Control <ul><li>Companies use RFID to assist in limiting access of unauthorized personnel to informati...
Case Study #1: Victory Land Group <ul><li>A supplier company for Wal-Mart </li></ul><ul><li>Knew that it had to keep up wi...
Case Study #2: Federal Express <ul><li>Federal Express (world’s largest express parcel delivery company)  </li></ul><ul><l...
Advantages
Advantages of RFID <ul><li>♦  Reductions in Costs  </li></ul><ul><li>♦  Reduction in Inventory and Theft </li></ul><ul><li...
Reducing Warehouse and Distribution/Point-of-Sale Labor Costs <ul><li>Sensors allow for easier tracking of inventory with ...
Reduce Inventory & Theft <ul><li>Accurate tracking of inventory helps maintain appropriate levels of inventory in stock. <...
Improve Forecasting/Planning and Minimize Out-of-stock Conditions <ul><li>Eliminating out-of-stock conditions is made easi...
Improve Overall Customer Experience <ul><li>Use of RFID and interactive kiosks can allow the merchant to extend offers to ...
Disadvantages
Disadvantages of RFID <ul><li>♦  Cost </li></ul><ul><li>♦  Collision  </li></ul><ul><li>♦  Failure  </li></ul>
Cost of RFID <ul><li>More expensive than current technologies </li></ul><ul><li>Cost of an RFID scanner is $500-$2000 </li...
Collision <ul><li>Signals can ‘Collide’ when multiple signals are read at once. </li></ul><ul><li>Those signals are either...
Failure <ul><li>Total failure of the tag or reader </li></ul><ul><li>12%-15% of all tags fail in their first reading </li>...
Summary/Recap <ul><li>RFID-  R adio  F requency  ID entification </li></ul><ul><li>A technology which incorporates the use...
Summary/Recap <ul><li>Important Business Applications  </li></ul><ul><li>♦ Asset Tracking </li></ul><ul><li>♦ Manufacturin...
Summary/Recap <ul><li>Advantages: </li></ul><ul><li>♦  Reduction in Costs </li></ul><ul><li>♦  Reduction in Inventory and ...
Importance to Our Lives <ul><li>RFID used in everyday living. </li></ul><ul><li>Makes our lives easier (IPASS, Speedpass) ...
Quiz Question #1 <ul><li>What is not a type of RF tag? </li></ul><ul><li>A.) Passive Tag </li></ul><ul><li>B.) Read-Only T...
Quiz Question #2 <ul><li>What is not one of the major components of RFID? </li></ul><ul><li>A.) Transponder (Rf Tag) </li>...
Quiz Question #3  <ul><li>What is not one of the major disadvantages of RFID technology? </li></ul><ul><li>A.) Collision <...
Bibliography  <ul><li>The History and Development of RFID Technology.  Online. 12 April 2008. http://www.emory.edu/BUSINES...
Bibliography Continued… <ul><li>What Every Internal Auditor Should Know About RFID.  Knowledgeleader. June 2008 </li></ul>...
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Presentation 9 - RFID

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  1. 1. RFID Group Members: Katherine Hughes, Justin Behm, Alan Gilewski, Robert Worth, Daniel Crucz, Michalis Kritikos Group Number: 5 Presentation Date: 4/30/2008
  2. 2. Presentation Overview <ul><li>Introduction </li></ul><ul><li>Business Applications </li></ul><ul><li>Advantages of RFID </li></ul><ul><li>Disadvantages of RFID </li></ul><ul><li>Conclusion/ Recap </li></ul><ul><li>Quiz and Questions </li></ul>
  3. 3. Why is RFID important to you? <ul><li>Technology is continuously improving and changing the business world. </li></ul><ul><li>Important to be aware of different technology options. </li></ul><ul><li>RFID is used in our everyday world. </li></ul><ul><li>RFID could one day be an essential part of your business or workplace. </li></ul>
  4. 4. Goals to Achieve <ul><li>Detailed description and definition of RFID </li></ul><ul><li>Make audience aware of various advantages of the technology </li></ul><ul><li>Learn the various disadvantages of the RFID technology </li></ul><ul><li>Discuss the business applications </li></ul><ul><li>The future of RFID based on research and the team’s opinion </li></ul>
  5. 5. RFID Stands For… <ul><li>R ADIO </li></ul><ul><li>F REQUENCY </li></ul><ul><li>ID ENTIFICATION </li></ul>
  6. 6. RFID Defined <ul><li>A technology which incorporates the use of electromagnetic coupling and radio waves to identify an object or person. </li></ul><ul><li>Made up of several components embedded into business practices to improve and transform key supply chain processes. </li></ul><ul><li>Provides a distinctive identifier for objects (similar in its purpose to bar codes or magnetic stripes on the back of credit cards). </li></ul><ul><li>RFID must be scanned in order to retrieve the needed information </li></ul>
  7. 7. History and Development <ul><li>First Developed during WWII. </li></ul><ul><li>Created from radar experiments. </li></ul><ul><li>British needed to identify their own planes “friendlies” from French planes “foes”. </li></ul><ul><li>Actual year of invention was 1948. </li></ul><ul><li>For years after first development a great amount of research on RFID was done until it was actually used in commercial application. </li></ul>
  8. 8. History Of Use <ul><li>After WWII security and safety was needed due to the use of nuclear materials, which lead to further developments in “tagging”. </li></ul><ul><li>RFID started being implemented in the 1970’s. </li></ul><ul><li>During this time the cost of each tag was excessive and the use was very limited. </li></ul>
  9. 9. RFID in the 1980’s <ul><li>The 1980’s bought a great amount of development. In 1987 Norway had implemented the first successful toll collection system. </li></ul><ul><li>Toll systems were considered to be the breakthrough product for RFID. </li></ul><ul><li>In 1981 railroads began implementing RFID as a solution for the environment of their industry. The railroads used RFID to keep track of rolling stock. The radio frequency was able to go a travel a longer distance, and had the ability to read through snow, fog, dirt, and direct sunlight. Before RFID the railroads were implementing bar code technology. </li></ul><ul><li>In 1988 the main effort of RFID shifted to new applications to do things such as improve performance, reduce costs and reduce size </li></ul>
  10. 10. 1990’s to Present <ul><li>From the 90’s to the present RFID manufactures are in deep competition to be the company to sell the cheapest, smallest and most reliable RFID device. </li></ul><ul><li>( Business Applications Section will talk more about RFID in present use.) </li></ul>
  11. 11. How Does RFID Work? <ul><li>RFID is comprised of three major components: </li></ul><ul><li>♦ An antenna or coil </li></ul><ul><li>♦ A transceiver (with decoder) </li></ul><ul><li>♦ Transponder (RF tag) </li></ul>
  12. 12. RFID In Use
  13. 13. Antenna or Coil <ul><li>The antenna emits radio signals to activate the tag and to read and write data into the tag. </li></ul><ul><li>The antenna is the channel between the tag and the transceiver, thus it controls the data attainment and communication. </li></ul><ul><li>The antennas are available in many different shapes and sizes. For example an antenna can be built into a doorframe in order to collect data from people walking through the door. </li></ul>
  14. 14. Antenna and Coil Continued… <ul><li>The electromagnetic field, which the antenna produces, is constantly present when multiple tags are continually expected. </li></ul><ul><li>If constant detection is not needed the field can be activated by a sensory device. </li></ul><ul><li>Depending on the antennas needs you could opt to make it a handheld or a fixed-mount device. </li></ul><ul><li>Often the antenna is packaged with the transceiver and decoder. </li></ul>
  15. 15. RFID ANTENNAS
  16. 16. Transceiver (with decoder) <ul><li>The reader releases radio waves in ranges from one inch to 100 feet or more. The range depends on its output power and the radio frequency used. </li></ul><ul><li>When the RFID tag passes through the electromagnetic field it will then detect the reader’s activation signal. </li></ul><ul><li>At this point the reader will decode the data programmed in the tag’s circuit. </li></ul><ul><li>Finally, the data is passed to the host computer to be processed. </li></ul>
  17. 17. RFID READER
  18. 18. Transponder (RF Tag) <ul><li>RFID tags are the heart of the RFID system because they store the information that describes the object being tracked. </li></ul><ul><li>Tags are classified according to their abilities: </li></ul><ul><li>♦ Active </li></ul><ul><li>♦ Passive </li></ul><ul><li>♦ Read-Only </li></ul><ul><li>♦ Write-Once </li></ul><ul><li>♦ Read-Write </li></ul>
  19. 19. Active Tags <ul><li>Contain a battery that runs the microchip’s circuitry. </li></ul><ul><li>Tag is able to send a stronger signal to the reader due to battery. </li></ul><ul><li>Allows a read range of about one hundred feet. </li></ul>
  20. 20. Passive Tags <ul><li>Passive tags contain no batteries. </li></ul><ul><li>Passive tags get power from a reader. </li></ul><ul><li>Readers send electromagnetic waves that produce a current in the tag’s antenna which then powers the microchip’s circuits. </li></ul><ul><li>A passive tags read range is approximately thirty feet. </li></ul>
  21. 21. Read-Only Tag <ul><li>Read-only contain data such as tracking numbers. </li></ul><ul><li>These tracking numbers are usually serialized and pre-written onto them by the tag manufacturer. </li></ul><ul><li>Read-only tags are usually the least expensive because information can not be added onto them as they move through the supply chain. </li></ul>
  22. 22. Write-Once & Read-Write <ul><li>Write-once tags allow a user to write information into the tag one time during the production. The information can be something like a batch or serial number. </li></ul><ul><li>Full read-write tags allow for new data to be written to the tag as it is needed. These tags also allow for original data to be written over. </li></ul>
  23. 23. RFID TAGS
  24. 24. Business Applications
  25. 25. Asset Tracking <ul><li>RFID tags applied to company assets which are stored away </li></ul><ul><li>Companies then use the tags and RFID technology to locate assets when they needed </li></ul><ul><li>The location of the assets are accurate within 10 feet </li></ul><ul><li>Think of our Libraries… </li></ul><ul><li>RFID tracks library books that are checked out or in. </li></ul>
  26. 26. RFID Utilized in Manufacturing <ul><li>Manufacturing companies utilize RFID to track parts </li></ul><ul><li>Work-in-Progress tracking made easier </li></ul><ul><li>Reduce defects </li></ul><ul><li>Increase of throughput </li></ul><ul><li>Manage production of different versions of the same product </li></ul><ul><li>Assists in tracking part arrivals </li></ul><ul><li>Follows parts along assembly lines </li></ul>
  27. 27. RFID Used In Retail <ul><li>Assists in identifying which products need to be restocked </li></ul><ul><li>When shelf supplies are low store will be able to quickly identify where product is needed and where they will obtain the needed product </li></ul><ul><li>Overall, allows for higher customer satisfaction </li></ul><ul><li>Helps automate checkout lines </li></ul><ul><li>Reduces line waiting times </li></ul>
  28. 28. Payment Systems <ul><li>Helps speed up processes where payments are necessary. </li></ul><ul><li>Most commonly found on toll ways </li></ul><ul><li>Used in collecting tolls, which we know in Illinois as the IPASS system. </li></ul><ul><li>More convenient for drivers and eases the flow of traffic. </li></ul><ul><li>Mobil Speedpass </li></ul>
  29. 29. Security and Access Control <ul><li>Companies use RFID to assist in limiting access of unauthorized personnel to information among other things </li></ul><ul><li>Confirms information is only being viewed by those who are allowed to view it. </li></ul><ul><li>Added value to Electronic Article Surveillance </li></ul><ul><li>Commonly used in stored as anti-shoplifting tool it signals alarm to go off. </li></ul><ul><li>Control access to gates communities (ex: Crystal Tree, in Orland Park) </li></ul><ul><li>Controls access in Airports (O’Hare Airport) </li></ul>
  30. 30. Case Study #1: Victory Land Group <ul><li>A supplier company for Wal-Mart </li></ul><ul><li>Knew that it had to keep up with demand and competitors </li></ul><ul><li>Implemented Electronic Product Code (EPC) and RFID smart labels </li></ul><ul><li>Constructed a new distribution center with RFID capabilities </li></ul><ul><li>Zebra and R4 Global Solutions, a leading RFID systems integrator worked with VLG on the implementation and since then has worked with a dozen Wal-Mart suppliers. </li></ul><ul><li>Results: </li></ul><ul><li>* VLG is able to go onto Wal-Mart’s Retailer Link Supplier website to track the progress of its tagged merchandise. </li></ul><ul><li>* VLG uses the information for its own planning. </li></ul><ul><li>* Considering more ways to use RFID internally. </li></ul><ul><li>* Began discussing RFID technology with its own suppliers </li></ul>
  31. 31. Case Study #2: Federal Express <ul><li>Federal Express (world’s largest express parcel delivery company) </li></ul><ul><li>Delivers 3.2 Million parcels daily and operates over 42,500 vehicles worldwide. </li></ul><ul><li>Company’s couriers use an automatic keyless entry and ignition system which uses RFID transponders embedded into a wristband. </li></ul><ul><li>Results: </li></ul><ul><li>* Personnel do not have to worry about juggling and keeping track of their keys when delivering packages </li></ul><ul><li>* Carriers are more productive on their routes. </li></ul><ul><li>* If wristband is misplaced, the RFID system can reprogram a new code within a matter of seconds. </li></ul><ul><li>* When carrier places his or her band within 6 inches of the reader, the door will unlock, keeping all other doors locked in order to prevent unauthorized entry. </li></ul>
  32. 32. Advantages
  33. 33. Advantages of RFID <ul><li>♦ Reductions in Costs </li></ul><ul><li>♦ Reduction in Inventory and Theft </li></ul><ul><li>♦ Improves Forecasting, Planning and overall customer experience </li></ul>
  34. 34. Reducing Warehouse and Distribution/Point-of-Sale Labor Costs <ul><li>Sensors allow for easier tracking of inventory with high accuracy. </li></ul><ul><li>Point-of-Sale transaction times reduced </li></ul><ul><li>Fraud minimized with RFID-enabled products. </li></ul><ul><li>Overall, need for human labor is diminished as adoption of product increases, saving on labor costs. </li></ul>
  35. 35. Reduce Inventory & Theft <ul><li>Accurate tracking of inventory helps maintain appropriate levels of inventory in stock. </li></ul><ul><li>With theft accounting for losses equivalent to 1.5% of sales, RFID keeps track of when or where an item went missing. </li></ul><ul><li>Eliminating excess/missing inventory vital when trying to maintain a successful business. </li></ul>
  36. 36. Improve Forecasting/Planning and Minimize Out-of-stock Conditions <ul><li>Eliminating out-of-stock conditions is made easier with RFID tracking </li></ul><ul><li>Predict with higher accuracy the current levels of stock </li></ul><ul><li>Better prediction in location of incoming shipments </li></ul><ul><li>Maximize revenue </li></ul><ul><li>Maintain high levels of customer satisfaction </li></ul>
  37. 37. Improve Overall Customer Experience <ul><li>Use of RFID and interactive kiosks can allow the merchant to extend offers to customers based on the contents of their carts. </li></ul>
  38. 38. Disadvantages
  39. 39. Disadvantages of RFID <ul><li>♦ Cost </li></ul><ul><li>♦ Collision </li></ul><ul><li>♦ Failure </li></ul>
  40. 40. Cost of RFID <ul><li>More expensive than current technologies </li></ul><ul><li>Cost of an RFID scanner is $500-$2000 </li></ul><ul><li>Current cost of an RFID tag is between 7¢-15¢ </li></ul><ul><li>Cost of active tag is $10-$50 </li></ul><ul><li>Barcodes cost less than 1¢ or around 3¢ with a security strip </li></ul>
  41. 41. Collision <ul><li>Signals can ‘Collide’ when multiple signals are read at once. </li></ul><ul><li>Those signals are either lost or are read with errors. </li></ul><ul><li>At times the collision goes undetected for long periods of time. </li></ul>
  42. 42. Failure <ul><li>Total failure of the tag or reader </li></ul><ul><li>12%-15% of all tags fail in their first reading </li></ul><ul><li>Reader failure is common and requires replacing the reader. </li></ul><ul><li>Barcode failure is extremely rare </li></ul>
  43. 43. Summary/Recap <ul><li>RFID- R adio F requency ID entification </li></ul><ul><li>A technology which incorporates the use of electromagnetic coupling and radio waves to identify an object or person. </li></ul><ul><li>Provides a distinctive identifier for objects (similar in its purpose to bar codes or magnetic stripes on the back of credit cards). </li></ul>
  44. 44. Summary/Recap <ul><li>Important Business Applications </li></ul><ul><li>♦ Asset Tracking </li></ul><ul><li>♦ Manufacturing Companies </li></ul><ul><li>♦ Retail Stores </li></ul><ul><li>♦ Payment Systems </li></ul><ul><li>♦ Security and Access Control </li></ul>
  45. 45. Summary/Recap <ul><li>Advantages: </li></ul><ul><li>♦ Reduction in Costs </li></ul><ul><li>♦ Reduction in Inventory and Theft </li></ul><ul><li>♦ Improves forecasting/planning and overall customer experience </li></ul><ul><li>Disadvantages: </li></ul><ul><li>♦ Cost </li></ul><ul><li>♦ Collision </li></ul><ul><li>♦ Failure </li></ul>
  46. 46. Importance to Our Lives <ul><li>RFID used in everyday living. </li></ul><ul><li>Makes our lives easier (IPASS, Speedpass) </li></ul><ul><li>Saves money and reduces theft to businesses we may work for currently or will work for in the future. </li></ul><ul><li>Important to be familiar with and aware of current technology trends to keep a competitive advantage for ourselves and for our future employers. </li></ul>
  47. 47. Quiz Question #1 <ul><li>What is not a type of RF tag? </li></ul><ul><li>A.) Passive Tag </li></ul><ul><li>B.) Read-Only Tag </li></ul><ul><li>C.) Passive-Read Once Tag </li></ul><ul><li>D.) Write-Once Tag </li></ul>
  48. 48. Quiz Question #2 <ul><li>What is not one of the major components of RFID? </li></ul><ul><li>A.) Transponder (Rf Tag) </li></ul><ul><li>B.) Alkaline Battery </li></ul><ul><li>C.) Antenna or Coil </li></ul><ul><li>D.) Transceiver (With Decoder) </li></ul>
  49. 49. Quiz Question #3 <ul><li>What is not one of the major disadvantages of RFID technology? </li></ul><ul><li>A.) Collision </li></ul><ul><li>B.) Cost </li></ul><ul><li>C.) Reduction of Inventory </li></ul><ul><li>D.) Failure </li></ul>
  50. 50. Bibliography <ul><li>The History and Development of RFID Technology. Online. 12 April 2008. http://www.emory.edu/BUSINESS/et/rfid/timelinr.html </li></ul><ul><li>A History of Development. Online. 13 April 2005. http://www.slais.ubc.ca/COURSES/libr500/04-05-wt2/www/T_Gnissios/history.htm </li></ul><ul><li>How RFID Works. Online. 2 April 2008. http://www.technovelgy.com/ct/Technology-Article.asp?ArtNum=2 </li></ul><ul><li>Leeming, Greg. RFID Overview . 8 September 2008. </li></ul><ul><li>Technologies: RFID/ What is RFID. Online. 12 April 2008. http://www.aimglobal.org/technologies/rfid/what_is_rfid.asp </li></ul><ul><li>Experts On Demand . 19 December 2005. http://expertanswercenter.techtarget.com/eac/expertAnswer/0,295208,sid63_gci1153220,00.html </li></ul><ul><li>What you need to know. September 2007. Transponder News. April 3, 2008. http:// transpondernews.com/trendfut.html . </li></ul><ul><li>“ Zebra and R4 Global Solutions make EPC compliance labeling fast and simple for Victory Land Group” Victory Land Group Case Study, Zebra Technologies. Nov 8, 2005 </li></ul><ul><li>“ Security Access and Convenience for Express Parcel Couriers” Texas Instruments Incorporated. June 30, 2004. </li></ul>
  51. 51. Bibliography Continued… <ul><li>What Every Internal Auditor Should Know About RFID. Knowledgeleader. June 2008 </li></ul><ul><li>The Ecosystem: What RFID Is. Online. Volume 09 Issue 03. 3 August 2005. http://www.intel.com/technology/itj/2005/volume09issue03/art09_rfid/p03_ecosystem.htm </li></ul><ul><li>What is RFID? Online. 2 April 2008. http://www.technovelgy.com/ct/Technology-Article.asp?ArtNum=1 </li></ul><ul><li>RFID JOURNAL The World’s RFID Authority. April 2, 2008. http://www.rfidjournal.com/ </li></ul><ul><li>Frequently Asked Question. RFID JOURNAL The World’s RFID Authority. April 2, 2008. http://www.rfidjournal.com/faq/20 </li></ul><ul><li>What you need to know. September 2007. Transponder News. April 3, 2008. http://transpondernews.com/trendfut.html </li></ul><ul><li>Ilie-Zudor, Elisabeth; Kemeny, Zsolt; Egri, Péter; Monostori, László. THE RFID TECHNOLOGY AND ITS CURRENT APPLICATIONS. September 2006. Computer and Automation Research Institute, Hungarian Academy of Sciences. April 3, 2008. www.sztaki.hu/~egri/publications/Ilie2006.pdf </li></ul>
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