SIP 2005 RFID - part..


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  • Note: Notes have been updated. Due to Funeral of close friend, needed to send to printer before all revisions completed.
  • Two questions: 1 - How many have been involved with RFID in their companies? (ask what) 2 - How many have used RFID? NOTE: Fast Lane/EZ Pass. MIT ID card. Regarding #1 above, disclaimers: - RFID fast moving large field. - Will rely upon your inputs for updates & insights.
  • cell phone – scan ID to compare TV prices patients in hospital / surgery equipment high-end clothing On customer card – knows where you are in store Prevent counterfit medicine
  • Jackie Fenn noted that there was an inverse relationship between the publicity a technology receives and its level of usage. When a technology is new, it is exciting and by definition novel, and there is a lot of interest in it. It gets a lot of exposure. The press write about it, the analysts pontificate on it, the consultants start practices based on it. Gartner's hype cycle is actually a five-part sequence: Technology trigger. A breakthrough, public demonstration, product launch or other event that generates significant press and industry interest. Peak of inflated expectations. A phase of overenthusiasm and unrealistic projections during which a flurry of publicized activity by technology leaders results in some successes but more failures as the technology is pushed to its limits. The only enterprises making money at this stage are conference organizers and magazine publishers. Trough of disillusionment. The point at which the technology becomes unfashionable and the press abandons the topic, because the technology did not live up to its overinflated expectations. Slope of enlightenment. Focused experimentation and solid hard work by an increasingly diverse range of organizations lead to a true understanding of the technology's applicability, risks and benefits. Commercial off-the-shelf methodologies and tools become available to ease the development process. Plateau of productivity. The real-world benefits of the technology are demonstrated and accepted. Tools and methodologies are increasingly stable as they enter their second and third generation. The final height of the plateau varies according to whether the technology is broadly applicable or only benefits a niche market.
  • Fast Lane / EZ Pass.
  • Typical distance – about 6-8 feet. MIT ID card.
  • Privacy issues: - World Cup Soccer Relates to demographic data – Nationality, Address, Passport number, etc. Costs about 10 Euro cents each - Benneton sweater Follow your movements?
  • Challenges: - Adhere to round metal can - Metal reflections
  • Right products in right cases.
  • Right pallets to right places. Commercial: stop truck – “you are going the wrong way” “How did you know?” “The cargo told me!”
  • How many readers are needed to constantly monitor every item in entire store?
  • Assuming you have Fast Lane type credit card, it can automatically charge to you (send bill in mail or email.) Hmm. What if two people leave at same time – might you pay their bill?
  • SIP 2005 RFID - part..

    1. 1. Sloan Information Period (SIP) RF.450 Information Infrastructure Needed for Effective Utilization of RFID AutoID technologies Part 1 – RFID Technology & Application Areas Subject RF.450 @ E51-145 on Monday , Oct 24, 2005 at 2:30-5:30 PM Abstract:         This is an exploratory research SIP activity.  A high degree of interaction and student participation and discussion is expected.                In order to maximize the effective use of RFID, existing intra- and inter-organizational business processes must be re-thought and re-structured, and an appropriate Information Technology (IT) infrastructure must be established both across organizations and between organizations. Prof Stuart Madnick, <>, Room: E53-321, Ext: 3-6671. [Revised 10-23-2005. Latest version in ]
    2. 2. General Outline <ul><li>In this SIP activity we will discuss: </li></ul><ul><li>What is the RFID technology? </li></ul><ul><li>What are the possible/claimed benefits of RFID? </li></ul><ul><li>What are existing or likely information infrastructure deficiencies, </li></ul><ul><li>- Especially in the areas of information exchange and data standards? </li></ul><ul><li>What are some IT research directions to address these problems? </li></ul>Advertisement : If you like this material, consider these courses for Spring 2006: 15.578 – GLOBAL INFORMATION SYSTEMS: COMMUNICATIONS & CONNECTIVITY AMONG INFORMATION (Tues & Thurs, 10-11:30; E51-376 – Primarily for Sloan MBA’s) 15.565 / ESD.565 – INTEGRATING INFORMATION SYSTEMS: TECHNOLOGY, STRATEGY, AND ORGANIZATIONAL FACTORS (Tues & Thurs, 10-11:30, E51-376 – Similar, but more technical)
    3. 3. Some RFID Hype <ul><li>RFID AutoID technology has received considerable media attention, innovation ideas, and controversy.  For example: </li></ul><ul><li>&quot; Study shows RFID benefits for retailers . Retailers can expect extensive inventory and labor cost savings from the adoption of radio frequency identification (RFID) technology, but some consumer product manufacturers will face higher costs and delayed benefits from adopting the technology. That is the conclusion of a new report on RFID and the Electronic Product Code (EPC) from global management consulting firm AT Kearney.&quot; ( from ) </li></ul><ul><li>&quot; Dvorak Slams RFID . It's bad news, claims John Dvorak. Those tiny radio transmitters that promise convenience and flexibility are just another path toward big brother domination. And it's going to get a lot worse. ( from ) </li></ul><ul><li>&quot;A Manufacturer of soft drinks can identify with the click of a button how many containers of its soda cans are likely to reach their expiration date in the next few days and where they are located at various grocery outlets. ( from CACM, August 2005, p. 103 ) </li></ul>
    4. 4. What have you heard? Unusual or Intriguing Applications? <ul><li>Bank of Nagoya installing RFID-based document management system </li></ul><ul><li>Automatically scan you when you entered classroom – so no need to sign “sign-in” sheet </li></ul>
    5. 5. The Hype Cycle Visibility Time Technology Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity Source: Jackie Fenn, Gartner Group RFID Today! (?)
    6. 6. Some Sources Used for Background Materials (found with assistance of H. Zhu) <ul><li>http:// </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li>http:// </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> (DoD slides) </li></ul>
    7. 7. Outline <ul><li>Background (2:35-3:55) </li></ul><ul><li>Introduction </li></ul><ul><li>RFID Technology </li></ul><ul><ul><li>Comparison with Bar Codes </li></ul></ul><ul><ul><li>Example Applications </li></ul></ul><ul><li>Focus on Supply Chain </li></ul><ul><ul><li>EPC Tag and EPC Global </li></ul></ul><ul><li>ROI Issues & Challenges </li></ul><ul><li>MIT Auto-ID Center </li></ul><ul><li>Some of Sloan’s Research issues (4:05-5:25) </li></ul><ul><li>RFID IT Infrastructure </li></ul><ul><li>Challenges to “Data Synchronization” </li></ul><ul><li>Role of MIT’s Context Mediation Technology in addressing the “Data Synchronization” challenge </li></ul><ul><li>Discussion </li></ul>
    8. 8. What is R adio F requency Id entification (RFID)? <ul><li>Can be Passive or Active </li></ul><ul><li>Can be Read-only or Read-Write </li></ul>Substrate Tag IC Antenna Die attach
    9. 9. Some Claimed Advantages of RFID vs. Barcode <ul><li>No requirement for line-of-sight </li></ul><ul><li>Many tags can be read at the same time </li></ul><ul><li>High memory capacity if needed </li></ul><ul><li>Dynamic information carrier (read/write) </li></ul><ul><li>Robust and reliable </li></ul><ul><li>Performs in rugged, harsh environment </li></ul><ul><li>Cheaper in long term </li></ul><ul><li>No human intervention </li></ul><ul><li>Reader virtually maintenance free </li></ul>
    10. 10. RFID Technology Primer Adapted from Dan Kimball, DoD Logistics AIT Office April 7, 2004 PART 1a
    11. 11. RFID: The History Pre-50’s 1950’s 1960’s 1970’s 1980’s 1990’s 2000’s RFID TIMELINE <ul><li>1926: Baird’s </li></ul><ul><li>radio object </li></ul><ul><li>detection </li></ul><ul><li>patent </li></ul><ul><li>1935: Watson- </li></ul><ul><li>Watt’s radar </li></ul><ul><li>patent </li></ul><ul><li>WW II: Radar </li></ul><ul><li>refined </li></ul><ul><li>1st Toll Collection </li></ul><ul><li>System - Norway </li></ul><ul><li>Texas, Georgia / </li></ul><ul><li>Oklahoma Tolls </li></ul><ul><li>Wide-scale US </li></ul><ul><li>Roll-out </li></ul><ul><li>LASL spins-off </li></ul><ul><li>IDX & Amtech </li></ul><ul><li>1984: IDX/Allen </li></ul><ul><li>Bradley install </li></ul><ul><li>GM System </li></ul><ul><li>Vast number of companies enter RFID marketplace </li></ul><ul><li>1977: Electronic </li></ul><ul><li>license plate for </li></ul><ul><li>motor vehicles </li></ul><ul><li>1979: RFID </li></ul><ul><li>animal </li></ul><ul><li>implants </li></ul><ul><li>1975 LASL </li></ul><ul><li>releases </li></ul><ul><li>research to </li></ul><ul><li>public sector </li></ul><ul><li>1991: AAR </li></ul><ul><li>standard </li></ul><ul><li>1994: All </li></ul><ul><li>US railcars </li></ul><ul><li>outfitted </li></ul><ul><li>MIT Auto-ID </li></ul><ul><li>Center formation </li></ul><ul><li>EPC™ i ntroduced </li></ul><ul><li>National & international </li></ul><ul><li>standards emerge </li></ul><ul><li>2004: TREAD </li></ul><ul><li>EPCglobal </li></ul><ul><li>formed 2003 </li></ul><ul><li>1997:US Army </li></ul><ul><li>rolls out TC- </li></ul><ul><li>AIMS II </li></ul><ul><li>2003: RFID </li></ul><ul><li>prominent in </li></ul><ul><li>Iraqi Freedom </li></ul><ul><li>Smart shelves </li></ul><ul><li>Multiple early </li></ul><ul><li>adopter </li></ul><ul><li>installations </li></ul><ul><li>1952: Vernon </li></ul><ul><li>“ Application of the Microwave </li></ul><ul><li>Homodyne” </li></ul><ul><li>Harris patent: “Radio </li></ul><ul><li>transmission </li></ul><ul><li>systems with </li></ul><ul><li>modulatable </li></ul><ul><li>passive </li></ul><ul><li>responder” </li></ul><ul><li>Harrington </li></ul><ul><li>“ Active & </li></ul><ul><li>Loaded </li></ul><ul><li>Scatterers” </li></ul>Adapted from Interaction Design Institute RFID Project Presentation - 2002 <ul><li>1966: Sensor- </li></ul><ul><li>matic & Check- </li></ul><ul><li>point EAS </li></ul><ul><li>Over 350 direct - reference patents </li></ul><ul><li>1948: Harry </li></ul><ul><li>Stockman - </li></ul><ul><li>Communications </li></ul><ul><li>By Means of </li></ul><ul><li>Reflected Power </li></ul><ul><li>Fairchild, RCA </li></ul><ul><li>& Raytheon </li></ul><ul><li>initiate pgms </li></ul><ul><li>2005: Walmart </li></ul><ul><li>initial deadline </li></ul><ul><li>1969: Mario </li></ul><ul><li>Cardullo RFID </li></ul><ul><li>concept </li></ul><ul><li>1973: Cardullo </li></ul><ul><li>patent </li></ul>
    12. 12. Technical Aspects of RFID <ul><li>Tag Power Source </li></ul><ul><li>Tag Components </li></ul><ul><li>Read - Read/Write </li></ul><ul><li>Anti-Collision </li></ul><ul><li>Who talks first? </li></ul><ul><li>Protocol </li></ul>Ultimate focus of this SIP activity Standards ? The RFID industry suffered from a proliferation of standards , according to Sue Hutchinson, director of product management for EPCglobal. EPCglobal had two GEN-1 standards, while ISO had two UHF air interface standards. (December 17, 2004)
    13. 13. RFID Tags Come in Different Forms – Can be attached to almost anything <ul><li>Tags can be attached to almost anything: </li></ul><ul><ul><li>pallets or cases of product </li></ul></ul><ul><ul><li>vehicles </li></ul></ul><ul><ul><li>company assets or personnel </li></ul></ul><ul><ul><li>items such as apparel, luggage </li></ul></ul><ul><ul><li>people, livestock, pets </li></ul></ul><ul><ul><li>high value electronics e.g., computers, TVs </li></ul></ul><ul><li>Many applications </li></ul>Primary focus Class V tags Readers. Can power other Class I, II and III tags; Communicate with Classes IV and V. Class IV tags: Active tags with broad-band peer-to-peer communication Class III tags: semi-passive RFID tags Class II tags: passive tags with additional functionality Class 0/Class I: read-only passive tags
    14. 14. Tag Types: Active <ul><li>Active : </li></ul><ul><ul><li>Standard: None, Mainly Manufacturers Proprietary Systems/Protocols </li></ul></ul><ul><ul><li>Range: Generally 300 Feet or less </li></ul></ul><ul><ul><li>Battery powered / limited life </li></ul></ul><ul><ul><li>Used Predominantly in Transportation Systems (rail, toll systems, trucking, container). </li></ul></ul><ul><ul><li>Characteristics: Tag with Internal Power Cell Mounted to Item or container/pallet/box, Interrogator Queries Tags, Uploads/Downloads Data. Does not transmit all of the time. Data Capacity Varies. </li></ul></ul>RF & Digital Circuitry RF antenna Battery
    15. 15. Tag Types: Passive <ul><li>Passive : </li></ul><ul><ul><li>Standard: None/many, Mainly Manufacturers Proprietary Systems/Protocols (uses back scatter technology) </li></ul></ul><ul><ul><li>Range: Typically Measured in “Inches”, Working Toward “Meters” (dependant system layout, interference, etc.) </li></ul></ul><ul><ul><li>Used Predominantly in Retail Systems and Transportation Systems. </li></ul></ul><ul><ul><li>Characteristics: Small Tag Loaded with License Plate Data </li></ul></ul><ul><ul><li>Typically Mounted to End Item, Reader Captures Data as Item Moves Through Choke Point (door, pathway, frame, etc.). </li></ul></ul><ul><ul><li>Data Capacity Limited. </li></ul></ul>RF antenna (power source) Memory (EEPROM) Digital Logic & Control
    16. 16. Tag Types: Semi-Active <ul><li>Semi-Active or Battery Assisted Passive </li></ul><ul><ul><li>On-board battery power source </li></ul></ul><ul><ul><ul><li>Uses Passive Technology (no transmitter) </li></ul></ul></ul><ul><ul><ul><li>Greater range but higher cost (less than active) </li></ul></ul></ul><ul><ul><ul><li>Requires less power from reader </li></ul></ul></ul><ul><ul><ul><li>Finite life </li></ul></ul></ul><ul><ul><ul><li>Can use thin batteries (little change to form factor) </li></ul></ul></ul>RF antenna Memory (EEPROM) Digital Logic & Control Battery
    17. 17. Tag Types - Read vs Read/Write <ul><li>Read Only: </li></ul><ul><ul><li>Information can only be read from an RFID device – programmed at manufacture </li></ul></ul><ul><li>User Programmable </li></ul><ul><ul><li>WORM - Write Once Read Many - Ability to initialize an RFID device outside of the RFID manufacturer’s facility after manufacture </li></ul></ul><ul><li>Read/Write: </li></ul><ul><ul><li>Information can be read from or written to an RFID transponder during the time it is presented to a reader/writer </li></ul></ul><ul><ul><li>Typically asymmetric read and write operating range </li></ul></ul>
    18. 18. Technical Considerations <ul><li>Anticollision </li></ul><ul><ul><li>Ability to communicate with several transponders simultaneously </li></ul></ul><ul><ul><li>Important in longer range readers </li></ul></ul><ul><ul><li>Must be implemented in the silicon of the RFID device </li></ul></ul><ul><li>Who Talks First </li></ul><ul><ul><li>Tag Talks First (TTF) </li></ul></ul><ul><ul><ul><li>After the tag is energized, it sends out a signal that says “I am here” </li></ul></ul></ul><ul><ul><li>Reader Talks First (RTF) </li></ul></ul><ul><ul><ul><li>As reader sends out energization signal it says “who is there” </li></ul></ul></ul><ul><ul><li>Problems </li></ul></ul><ul><ul><ul><li>With TTF you can get tag pollution but slower total read time </li></ul></ul></ul><ul><ul><ul><li>Compatibility issues? </li></ul></ul></ul>
    19. 19. Protocol <ul><li>The method used to talk to a tag </li></ul><ul><ul><li>Modulation method </li></ul></ul><ul><ul><li>Error correction </li></ul></ul><ul><ul><li>Anti-collision technique </li></ul></ul><ul><ul><li>Message format </li></ul></ul><ul><ul><li>Commands </li></ul></ul>
    20. 20. <ul><ul><li>Low Frequency (125 – 134 kHz) </li></ul></ul><ul><ul><li>Used in Access control, livestock, race timing, pallet tracking, automotive immobilizers, wireless commerce </li></ul></ul><ul><ul><li>High Frequency (13.56 mHz) – Smart Labels </li></ul></ul><ul><ul><li>Used in supply chain, wireless commerce, ticketing, product authentication </li></ul></ul><ul><ul><li>Ultra-High Frequency – UHF (900+ mHz) </li></ul></ul><ul><ul><li>Emerging technology, applications still in development </li></ul></ul><ul><ul><li>Microwave (2.45 gHz) </li></ul></ul><ul><ul><li>Still highly experimental, chipless technology </li></ul></ul>RFID Operating Frequencies
    21. 21. Worldwide Regulatory Environment No Global Solution – Standards are a Challenge ? 1000 50 4W EIRP 902-928 Argentina Brazil Peru varied 16 16 12 10 1 50 Channels # .5 – 4W EIRP 4W EIRP 4W EIRP 4W EIRP 2W ERP .5W ERP 4W EIRP Power ? -50dBc -50dBc -54dBc -63dBc+ -63dBc+ -50dBc OOB spurious varied 1000 400 1000 200 200 1000 Class 0 Rate 864-929 spotty 918-926 910-914 950-956 866-868 869.5 902-928 Band size New Zealand Australia Korea (new) Japan (new) Europe (future) Europe (current) North America
    22. 22. Frequency Selection Issues <ul><li>Desired Pattern </li></ul><ul><li>Required Range </li></ul><ul><li>Tag-to-Tag Spacing </li></ul><ul><li>Data Rate </li></ul><ul><li>Size Requirements </li></ul><ul><li>Power Requirements </li></ul><ul><li>Interference Issues </li></ul><ul><li>Noise Environment </li></ul><ul><li>Cost / Performance Tradeoffs </li></ul>
    23. 23. <ul><li>Read distance requirements </li></ul><ul><ul><li>Long read range </li></ul></ul><ul><ul><li>Short read range </li></ul></ul><ul><li>Frequency </li></ul><ul><ul><li>All frequencies have their pros and cons </li></ul></ul><ul><li>ISO standards </li></ul><ul><ul><li>Proprietary or standards-based </li></ul></ul><ul><li>Government regulations </li></ul><ul><ul><li>Varies from country to country </li></ul></ul>RFID System Considerations
    24. 24. <ul><li>Multiple Tag Reading in Same Field </li></ul><ul><ul><li>Anti-collision </li></ul></ul><ul><li>Sensitivity to Orientation </li></ul><ul><ul><li>A single orientation or omni-directional </li></ul></ul><ul><li>Hardware Set-up </li></ul><ul><ul><li>Environment can affect performance </li></ul></ul><ul><ul><li>Tag Sensitivity to Metallic environments </li></ul></ul>RFID System Considerations
    25. 25. <ul><li>Stationary or handheld </li></ul><ul><li>Weather-proof or industrialized </li></ul><ul><li>Typical read ranges vary from a few centimeters to a few meters </li></ul><ul><li>Read Range is dependent upon: </li></ul><ul><ul><li>Broadcast signal strength </li></ul></ul><ul><ul><li>Size of broadcast antenna </li></ul></ul><ul><ul><li>Size of transponder antenna </li></ul></ul><ul><ul><li>The environment – Metallic, Liquid </li></ul></ul><ul><li>Multi-frequency readers </li></ul>Reader Characteristics
    26. 26. How compare to 2D barcodes NO – new label Yes – Read/Write Change Information? $0.05 or less $0.40 - $1.00 (in millions) Cost (today) Low to Medium High Security Low to medium Low to high Capacity Required Not required Line of sight 2D Barcode RFID Tag
    27. 27. Barcode Examples – Many types Maxi-code UPC A Code 49 Codablock PDF 417 QR Code Data Matrix
    28. 28. Current Technology: Bar-coding <ul><ul><ul><li>UPC A code </li></ul></ul></ul><ul><ul><ul><ul><li>18 digit alphanumeric code used for identifying flow of package and billing information </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Large database used to support this system – 18 terabytes </li></ul></ul></ul></ul><ul><ul><ul><li>Maxi-code </li></ul></ul></ul><ul><ul><ul><ul><li>Determined by the locations of bars around a central dot </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Contains information for the destination address of the package as well as weight and size specs. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>requires special equipment and a stable environment free from movement to obtain a read of the information </li></ul></ul></ul></ul>
    29. 29. RFID vs. Bar-coding <ul><li>Bar-coding Disadvantages </li></ul><ul><ul><li>Code must be clearly readable </li></ul></ul><ul><ul><ul><li>free from dirt, smudging or other damage </li></ul></ul></ul><ul><ul><ul><li>This is problem with the constant movement of packages </li></ul></ul></ul><ul><ul><li>Code must be in a position that can be easily read by a scanning device </li></ul></ul><ul><ul><ul><li>Optical lasers are usually used for scanning </li></ul></ul></ul><ul><ul><li>Code must be within a short distance to be read </li></ul></ul><ul><ul><ul><li>Typically within 3 feet </li></ul></ul></ul><ul><ul><li>Only one code can be scanned at a time </li></ul></ul><ul><ul><li>Codes must be a reasonable distance apart </li></ul></ul><ul><li>The use of RFID can eliminate many of the problems associated with bar-coding technology. </li></ul>
    30. 30. The Future? -- A Hybrid World <ul><li>Traditional bar codes </li></ul><ul><ul><li>Will remain the dominant auto ID technology for the foreseeable future </li></ul></ul><ul><ul><ul><li>Lowest cost, broadest applicability, huge infrastructure investment </li></ul></ul></ul><ul><li>2D bar codes </li></ul><ul><ul><li>Will be increasingly adopted for value added applications </li></ul></ul><ul><ul><ul><li>Portable data files, supplementary retail coding etc. </li></ul></ul></ul><ul><li>RFID </li></ul><ul><ul><li>Will be increasingly adopted where non-line of sight, read/write, multiple detection offers real advantages </li></ul></ul>
    31. 31. Implementations of RFID <ul><li>Retail is the current driving force </li></ul><ul><ul><li>Wal-Mart </li></ul></ul><ul><ul><li>Target </li></ul></ul><ul><li>Others </li></ul><ul><ul><li>Department of Defense </li></ul></ul><ul><ul><li>UPS </li></ul></ul><ul><ul><li>Other logistics firms </li></ul></ul>
    32. 32. Things to consider <ul><li>Price of tags </li></ul><ul><ul><li>Currently about 10 to 50 cents each </li></ul></ul><ul><ul><li>If just $0.01, $250,000,000 to tag every P&G product </li></ul></ul><ul><ul><li>Chicken and Egg </li></ul></ul><ul><li>Uses </li></ul><ul><ul><li>Wal-Mart will be collecting existing data </li></ul></ul><ul><ul><li>Many possibilities </li></ul></ul><ul><li>Technology matures </li></ul><ul><ul><li>Cheaper and standards </li></ul></ul><ul><li>Privacy (e.g., “RFID chips in world soccer tournament tickets questioned”) </li></ul><ul><ul><li>All 2.9 million tickets for FIFA World Cup soccer tournament in Germany include an RFID smart tag </li></ul></ul>
    33. 33. RFID in Action … Buy Burgers at McDonald’s Pay for Gas at Exxon/Mobil with Speedpass Check out library books with 3M system Race timing at most major Marathons Get a Coke from a vending machine at the Olympics
    34. 34. Toll tags, parking lot access Event access, ticketing Anti-theft for automobiles Building access control, security
    35. 35. Product authentication Chip wafer Manufacturing Warehouse, supply chain, logistics Livestock, asset tracking
    36. 36. Electronic Article Surveillance (EAS) <ul><li>Electronic Article Surveillance (EAS) </li></ul><ul><li>Already exists </li></ul><ul><li>RFID technology detects if an item is removed from a store without tag being deactivated </li></ul><ul><ul><li>Amorphous magnetic strips </li></ul></ul><ul><ul><li>Destructible tuned circuits </li></ul></ul><ul><li>But - Existing technology cannot uniquely identify goods </li></ul><ul><li>New RFID technology provides significant features: </li></ul><ul><ul><li>Able to write SKU number into transponder </li></ul></ul><ul><ul><li>Automatic inventory with a hand held reader </li></ul></ul><ul><ul><ul><li>Anti-collision mandatory for this feature </li></ul></ul></ul><ul><ul><li>Cash registers can automatically ring up merchandise </li></ul></ul>
    37. 37. <ul><li>&quot;A Manufacturer of soft drinks can identify with the click of a button how many containers of its soda cans are likely to reach their expiration date in the next few days and where they are located at various grocery outlets.” </li></ul><ul><li>( from CACM, August 2005, p. 103 ) </li></ul><ul><li>How easy / realistic is this? </li></ul><ul><li>What infrastructure must exist? </li></ul>RFID – Supply Chain Perspective Adapted from im jae hyoun PART 1b
    38. 38. how it works… Adding Identity to Products Coke
    39. 39. how it works… Adding Identity to Cases: Assembly line applications
    40. 40. how it works… Reading Tags: Portal applications: Shipping validation & Confirm routing
    41. 41. <ul><li>how it works… </li></ul><ul><li>Savant </li></ul><ul><li>(middleware software for </li></ul><ul><li>EPC) </li></ul><ul><li>ONS </li></ul><ul><li>(Object </li></ul><ul><li>Naming </li></ul><ul><li>Service) </li></ul><ul><li>PML </li></ul><ul><li>(Physical </li></ul><ul><li>Markup </li></ul><ul><li>Language) </li></ul>
    42. 42. how it works… Efficiency in Distribution
    43. 43. how it works… Efficiency in Inventory
    44. 44. how it works… Overstocking and Out of Stock Eliminated
    45. 45. how it works… Consumer Convenience
    46. 46. Some Serious Challenges & limitations… materials and effect on signal Absorption Detuning (dielectric) Reflection Human body / animals Complex effects (lenses, filters) Reflection Groups of cans Reflection Metals Detuning (dielectric) Plastics Absorption Conductive liquids (shampoo) Absorption (moisture) Detuning (dielectric) Cardboard Effect(s) on RF signal Material
    47. 47. Supply Chain Reality It is happening …
    48. 48. RFID in the Supply Chain EPC Data Management Infrastructure (Private/public) SC Visibility & Event Management SC Leader ERP Who controls? Flow of Goods Supplier VMI Contract Manuf. Distribution Center Retail
    49. 49. Understanding RFID’s Potential Customer Returns Hub Warranty/Services Revenue Sample Supply Chain Out of Stock Revenue Collection Brand Protection Comp. Inv. Visib. FGI Inv. Visib. Counterfitting BOM Tracking Lot Tracking Shrinkage Chargeback Planning & Synchronization Shipment Visibility Operating and Handling Cost Supplier VMI/ Inbound Hub Manufacturing DC/ Outbound Hub Reseller/ Distributor Repair Center
    50. 50. Making a Case for RFID - ROI <ul><li>Adapted from </li></ul><ul><li>Greg Dixon </li></ul><ul><li>Chief Technology Officer </li></ul><ul><li>ScanSource </li></ul>PART 1c
    51. 51. Why do people buy RFID? <ul><li>Traditional Reasons: </li></ul><ul><ul><li>Reduction of direct labor (80%) </li></ul></ul><ul><ul><ul><li>Hand-held reader vs. Fixed reader </li></ul></ul></ul><ul><ul><li>Protection and tracking of assets </li></ul></ul><ul><ul><ul><li>Animals – Inventory – Tires – Access Control - etc. </li></ul></ul></ul><ul><ul><li>Cost Structure reduction </li></ul></ul><ul><ul><ul><li>Out of stock - 7.8% – “walk aways” </li></ul></ul></ul><ul><ul><li>Only technology that will work </li></ul></ul><ul><ul><ul><li>When bar codes don’t work </li></ul></ul></ul><ul><ul><ul><ul><li>(dirty / line of sight) </li></ul></ul></ul></ul><ul><li>New Reason: </li></ul><ul><ul><li>Mandated </li></ul></ul>
    52. 52. RFID Timeline (goals) RFID Invented First UPC bar code 48 - 74 - 79 - 84 - 95 - 99 - 03- 1/ 04- 4/ 04- 7/ 04- 1/ 05- 6/ 05- 10/ 05- 07 - 09 - 13 Livestock RFID GM RFID ISO RFID Standards EPCGlobal started @ MIT Wal*Mart and DoD announce RFID plans Wal*Mart pilots begin Wal*Mart implements 8 suppliers / 21 products EPCGlobal establishes Gen 2 specs Wal*Mart deadline to top 134 Wal*Mart 6 DCs and 250 stores Wal*Mart 13 DCs and 600 stores All Wal*Mart and DoD suppliers RFID pervasive in supply chain Item class tagging Today
    53. 53. Technology Adoption Life Cycle 20,400 20,400 9,600 Companies under RFID mandate 0 60,000 Wal*Mart / DoD Sunrise date 2007 Today Companies Time
    54. 54. Two primary concerns for Supply Chain users: <ul><li>Concern #1: Return on Investment - ROI </li></ul>Labor Visibility Supply Visibility Decision Visibility Demand Visibility Fewer Faster More Accurate Where is the Inventory? What are Customers buying? What do customers want? Reduction in costs > RFID technology investment = +ROI
    55. 55. <ul><li>Concern #1: ROI – Easier said than done </li></ul><ul><li>Note importance of data integration (addressed in part 2) </li></ul><ul><li>Challenging within a large company </li></ul><ul><li>Very challenging between/among multiple companies </li></ul><ul><ul><li>Tag and Ship </li></ul></ul><ul><ul><li>- no data integration </li></ul></ul><ul><ul><li>Tag and Ship </li></ul></ul><ul><ul><li>- with data integration </li></ul></ul><ul><ul><li>Limited Mfg Adoption </li></ul></ul><ul><ul><li>- no data integration </li></ul></ul><ul><ul><li>Full Corp. Adoption </li></ul></ul><ul><ul><li>- with data integration </li></ul></ul><ul><ul><li>Limited Mfg Adoption </li></ul></ul><ul><ul><li>- with data integration </li></ul></ul>“ Slap & Ship” = pure cost May be the majority Link to trading partners Reduces some real costs Reduces more real costs Maximizes cost reduction Steps to ROI Invested $$ increases Potential ROI increases
    56. 56. Two primary concerns for Supply Chain users: <ul><li>Concern #2: Partnerships </li></ul><ul><ul><li>Let’s do the math </li></ul></ul><ul><li>One of the largest RFID S.I. (“handle maybe 100”) </li></ul><ul><li><100 RFID Vendors & S.I.s * - 100 x 50 = 5,000 </li></ul><ul><li>Must mobilize >1000 new RFID Solution Providers </li></ul><ul><ul><li>just to meet the demand for partnerships </li></ul></ul>60,000 mandated suppliers * RFID Journal
    57. 57. Winners & Losers ? <ul><li>AT Kearney study </li></ul><ul><li>Retailers benefits </li></ul><ul><ul><li>Reduce inventory by 5% </li></ul></ul><ul><ul><li>Reduce store & warehouse expenses by 7.5% </li></ul></ul><ul><ul><li>Reduce “out of stock” $700,000 per $1B </li></ul></ul><ul><li>Manufacturers costs </li></ul><ul><ul><li>High impact (expensive) v. low impact (cheap) </li></ul></ul><ul><ul><li>Low impact: $155M in capital costs </li></ul></ul><ul><ul><ul><li>(assuming $.15/tag, 10 year horizon, 12% cost of capital </li></ul></ul></ul>
    58. 58. What about “closed loop” & Enterprise applications? <ul><li>RFID technologies have been available for a decade </li></ul><ul><li>For many applications the tag cost was too high </li></ul><ul><li>Supply Chain volume reduce tag costs </li></ul><ul><li>All those applications are still waiting for an RFID solution </li></ul>
    59. 59. Edge Server Edge Server ERP CRM Middleware Enterprise Level Applications Re-define the “Edge” of an enterprise Light Stack Sensors RFID Reader/ encoder Bar code Scanner Scale Message Board Read Failure PLC Printer/ encoder
    60. 60. Outline <ul><li>Background (2:35-3:55) </li></ul><ul><li>Introduction </li></ul><ul><li>RFID Technology </li></ul><ul><ul><li>Comparison with Bar Codes </li></ul></ul><ul><ul><li>Example Applications </li></ul></ul><ul><li>Focus on Supply Chain </li></ul><ul><ul><li>EPC Tag and EPC Global </li></ul></ul><ul><li>ROI Issues & Challenges </li></ul><ul><li>MIT Auto-ID Center </li></ul><ul><li>Some of Sloan’s Research issues (4:05-5:25) </li></ul><ul><li>RFID IT Infrastructure </li></ul><ul><li>Challenges to “Data Synchronization” </li></ul><ul><li>Role of MIT’s Context Mediation Technology in addressing the “Data Synchronization” challenge </li></ul><ul><li>Discussion </li></ul>