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