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  1. 1. RFID Applications Henry C. Co Technology and Operations Management, California Polytechnic and State University Reference:
  2. 2. Wal-Mart In June 2003, Wal-Mart announced that they would require their top 100 suppliers to provide RFID tags on pallets and cases by January 1, 2005, and extend this requirement to all suppliers by 2006.
  3. 3. Wal-Mart: Industry Pace-Setter <ul><li>Pilot implementation in Texas </li></ul><ul><ul><li>Three Distribution Centers (DC) that support approximately 150 stores (about 5% of the almost 3,000 Wal-Mart stores) </li></ul></ul><ul><ul><li>Suppliers to identify inventory going to Wal-Mart in Texas with RFID technology. </li></ul></ul><ul><ul><ul><li>For the pilot, suppliers are not required to provide 100% carton-level identification. </li></ul></ul></ul><ul><li>Wal-Mart also stated that the RFID chip must be field programmable for later implementation changes. Wal-Mart affirmed its commitment the 96-bit ePC standard. </li></ul><ul><li>The tags must be human and RFID-readable. Wal-Mart desires 100% accuracy on RFID read rates. </li></ul>
  4. 4. <ul><li>RFID provides a quick, flexible, and reliable electronic means to detect , identify , track , and hence manage a variety of items. </li></ul><ul><li>In World War II, the British used it to make sure incoming planes were theirs, not Germany's. </li></ul>
  5. 5. More than just bar-coding … <ul><li>All Gillette Mach 3 razor blades, for instance, have the same code. With RFID tags, each packet of Mach 3 blades would have its own unique Electronic Product Code (EPC) embedded in a microchip no bigger than a piece of glitter. </li></ul><ul><li>Projections vary wildly, but analysts say today's $1 billion worth of RFID sales could hit $4 billion by 2008 and $10 billion in a decade. </li></ul>
  6. 6. Shipping and Receiving <ul><li>Incoming pallets or cartons with smart labels can be automatically routed for cross-docking or delivery directly to the manufacturing line. </li></ul><ul><li>Fast-reading RFID enables instant identification of the shipping container plus all of the individual items inside. </li></ul><ul><li>For shipping, RFID readers can help packers quickly locate and aggregate all the items needed to complete an order. </li></ul>
  7. 7. <ul><li>Intel recently launched a pilot to track tagged cases of microchips as it packed and shipped them to an OEM customer. </li></ul>
  8. 8. <ul><li>A field test at one of Chevron-Texaco 's offshore platforms in the Gulf of Mexico provides insights into how RFID can be used in shipping/receiving operations. </li></ul><ul><li>Chevron-Texaco is now looking at other pilot projects. </li></ul>
  9. 9. Warehousing <ul><li>Workers scan shelves and bins to automatically detect storage location of the sought items. </li></ul><ul><li>To detect items that are stored in the wrong location and alert operators to the problem. </li></ul><ul><li>Enables items to &quot; self-report &quot; their locations, rather than requiring human intervention to find them, thus reducing errors, saving labor, and lowering costs. </li></ul>
  10. 10. <ul><li>When P&G's facility in Spain boosted throughput, the loading dock became a bottleneck. </li></ul><ul><li>RFID increased the speed at which pallets could be loaded on trucks -- and it eliminated mistakes and cut costs </li></ul>
  11. 11. Production <ul><li>Work-in-process tracking and routing </li></ul><ul><ul><li>Integrated with industrial control systems to route items automatically through assembly processes. </li></ul></ul><ul><ul><ul><li>Many automotive manufacturers apply RFID tags to chassis to track them through painting stations. </li></ul></ul></ul><ul><ul><ul><li>Especially effective for routing and tracking materials in clean-room applications. </li></ul></ul></ul><ul><li>Serial numbers/lot ID data encoded during manufacturing provides lifetime tracking and product authentication. </li></ul><ul><ul><li>To verify eligibility for returns and warranty repairs and detect counterfeit products. </li></ul></ul><ul><ul><li>Maintenance history can be stored on the tag and updated whenever service is performed. </li></ul></ul>
  12. 12. <ul><li>Boeing uses RFID tags to track parts as they move through its facility in Wichita, Kansas. </li></ul><ul><li>The system reduces costs and gives managers visibility into the parts pipeline. </li></ul>
  13. 13. <ul><li>After deploying an RFID receiving system, Paramount Farms cut its operating costs, improved its relationship with growers and avoided having to invest in expanding its facilities. </li></ul>
  14. 14. <ul><li>BuildNow 's CubeInfo system uses RFID to dramatically improve the process. </li></ul><ul><li>More than 1 million concrete samples are tested in Singapore each year. </li></ul>
  15. 15. <ul><li>GM needed to boost production of its Hummer H2 to meet demand, but its manufacturing facility had limited space for parts. </li></ul><ul><li>The automaker turned to RFID to keep the plant humming. </li></ul>
  16. 16. <ul><li>By integrating RFID with its new assembly line, Club Car has cut production time per golf car to 46 minutes from 88, improved its ability to customize cars—and saved millions of dollars. </li></ul>
  17. 17. <ul><li>Johnson Controls makes car and truck seats that must be delivered to automakers in precise order for just-in-time manufacturing. </li></ul><ul><li>The company has deployed a 13.56 MHz RFID system that has proven to be 99.9 percent accurate. </li></ul>
  18. 18. Logistics <ul><li>During material handling operations such as truck loading or unloading, RFID enables identification of entire contents of mixed pallets all at once. </li></ul><ul><li>Managing pallets, totes, and other returnable transit containers </li></ul><ul><ul><li>Enables identification of returnable containers. Companies can then find their own pallets in shipping yards or docks stacked with thousands of items belonging to dozens of companies. </li></ul></ul>
  19. 19. <ul><li>In warehouse yard management operations, active RFID tags enable wireless, long-range searches of numerous pallets without having to take the time to find and scan a bar code or read a serial number on each object. </li></ul><ul><li>RFID tracking provides an audit trail that shippers can use to bill customers if materials are not returned. </li></ul>
  20. 20. DHL Worldwide Express <ul><li>DHL Worldwide Express handles 160 million packages a year </li></ul><ul><li>RFID program manager Trevor Peirce </li></ul><ul><ul><li>In 2003, standing next to a conveyor belt at its Helsinki gateway, watching computerized RFID scanners identify packages inside passing cargo containers at the rate of 300 items per second. </li></ul></ul><ul><ul><li>&quot;This is amazing technology when you see it working, and it's all fine-tuned.&quot; </li></ul></ul><ul><li>CIO Steve Bandrowczak </li></ul><ul><ul><li>&quot;RFID clearly can help customers by reducing inventory cycles, reducing lead times.&quot; </li></ul></ul>
  21. 21. <ul><li>Reusable supply chain assets often seem to sprout legs and walk off on their own. </li></ul><ul><li>Air Canada used an innovative RFID system from Scanpak to slash unexplained losses and improve food cart utilization globally </li></ul>
  22. 22. <ul><li>In Singapore and Helsinki DHL tested it in anticipation of tracking the 160 million packages it ships annually. </li></ul>
  23. 23. <ul><li>Managing more than 50,000 inbound freight containers and 30,000 outbound trailers annually is a logistical nightmare. </li></ul><ul><li>But NYK Logistics has found a truckload of savings by using an RFID yard-management system. </li></ul>
  24. 24. <ul><li>A project to secure cargo containers from seaport to seaport shows that RFID can track shipments with 100 percent accuracy, improve safety and deliver some compelling financial benefits to importers. </li></ul>
  25. 25. <ul><li>Canus, a maker of goat's milk soap, is deploying RFID to cut distribution costs, keep products from spoiling in transit and meet Wal-Mart's tagging requirements ahead of schedule </li></ul>
  26. 26. <ul><li>By using RFID to track shipments within its supply chain, KiMs, a Danish potato-chip maker, not only spiced up its sales but also cut the fat from its inventory and workforce. </li></ul>
  27. 27. Pharmaceutical <ul><li>Blind/vision-impaired </li></ul><ul><ul><li>Compact reading device identifies contents of prescription bottle; text-to-speech conversion software “reads&quot; the drug contents to the patient. </li></ul></ul><ul><ul><li>Ensure patients take correct medication. Other information, such as dosage instructions and drug interaction warnings, may also be encoded. </li></ul></ul><ul><li>RFID to manage movement of medications and containers through assembly and packaging lines to ensure medicines are put into correctly labeled packages. </li></ul><ul><li>Paperless audit trail provides high integrity, accountable supply chain. </li></ul>
  28. 28. Healthcare <ul><li>RFID on patient wristbands provide tamper-proof, accurate identification for facility access control and security. </li></ul><ul><ul><li>Many Alzheimer's disease facilities install RFID readers at all their doors to lock down and sound alarms automatically if patients try to wander through. </li></ul></ul><ul><ul><li>RFID application in the United Kingdom has eliminated opportunities for &quot;baby-snatching&quot; or kidnapping to occur on hospital grounds. </li></ul></ul><ul><li>Tracking of medication dispensing, laboratory samples, and blood bags. </li></ul><ul><ul><li>RFID saves time and improves accuracy because it automatically records all item movements and does not require human intervention to scan a bar code or record data on a form. </li></ul></ul>
  29. 29. <ul><li>FDA (2004) is determining whether hospitals can use RFID t identify patients and/or permit relevant hospital staff to access medical records. </li></ul>
  30. 30. <ul><li>Lucile Packard Children’s Hospital uses RFID to track the location of its newest patients and ensure they won’t be removed without permission. </li></ul><ul><li>The same system is being used to track assets. </li></ul>
  31. 31. Event Management <ul><li>Guests at amusement parks and recreational facilities wear wristbands or ID tags with RFID chips </li></ul><ul><ul><li>Control/limit access to certain facilities. </li></ul></ul><ul><ul><li>Track of patrons </li></ul></ul><ul><ul><ul><li>e.g., children may become separated from parents. By presenting their ID tags at &quot;location stations,&quot; separated individuals can be more easily located. </li></ul></ul></ul><ul><li>Cashless payment system </li></ul><ul><ul><li>Cards/wristbands with RFID chips store prepaid monetary value. </li></ul></ul><ul><ul><li>Guests can recharge the card or wristband after the stored value has been depleted. </li></ul></ul>
  32. 32. <ul><li>An RFID locating system gives parents visiting Dolly's Splash Country piece of mind, because kids are always tracked. </li></ul><ul><li>It also gives the park the opportunity to increase revenues by adding services, like cashless payments. </li></ul>
  33. 33. Library, Video Store <ul><li>Library materials check-in or out without manually handling and orienting each item. </li></ul><ul><li>Theft detection. </li></ul><ul><li>Portable computers with RFID readers take inventory and find misfiled materials </li></ul><ul><ul><li>RFID reader automatically detect missing materials and alert the librarian walking down an aisle of bookshelves. </li></ul></ul><ul><li>RFID readers positioned at doorways to record transactions and detect shoplifted items automatically. </li></ul>
  34. 34. <ul><li>In Singapore's library system, all 9 million books, videos and DVDs are embedded with antitheft chips, allowing self-checkout. </li></ul><ul><li>&quot;With bar codes, you need to precisely align the reader and the tag, but with RFID even old people and young children can use the system,&quot; says library-board senior development manager Wong Tack Wai. </li></ul>
  35. 35. <ul><li>Britain's project shows RFID can be used to track individual music CDs through the supply chain. </li></ul><ul><li>The real challenge is creating a system that benefits everyone, including the retailer that wants to prevent shoplifting. </li></ul>
  36. 36. <ul><li>After a national law firm installed an RFID system to track legal files at its Boston location, accuracy in locating files jumped from 35 to 98 percent—saving tens of thousands of dollars in time spent looking for documents. </li></ul>
  37. 37. Retail <ul><li>In June 2003 Wal-Mart CIO Linda Dillman gave the firm's 100 top suppliers — which provide half the goods on its shelves — a veiled ultimatum about the stuff flowing into its 103 U.S. distribution centers. </li></ul><ul><ul><li>Vendors who don't use EPC codes on pallets and cases by 2005 could risk losing business. </li></ul></ul><ul><ul><li>&quot;By 2006, we'd like to roll it out with all our suppliers,&quot; says spokesman Tom Williams. </li></ul></ul>
  38. 38. <ul><li>In Arizona a busy mom with kids charges fast food to her American Express by flashing a key fob in front of a plastic box. </li></ul>
  39. 39. <ul><li>In London the same technology helps retailer Marks & Spencer track gourmet dinners to prevent spoilage. </li></ul><ul><ul><li>Gourmet take-home foods, supplied to 200-plus stores by 300 providers. </li></ul></ul><ul><ul><li>RFID tags embedded in 3.5 million food trays and dollies, allowing the company to track the trays and reducing employee hands-on time 80%. </li></ul></ul><ul><li>Setup costs for a large company can run from $100 million to $200 million, the efficiencies can amount to 1% of revenues (around $100 million at M&S) </li></ul>
  40. 40. <ul><li>To reduce losses and boost efficiency, Woolworth has launched a pilot that uses RFID and other technologies to track products through the supply chain. </li></ul>
  41. 42. Cashless Payment <ul><li>Exxon Mobil's Speedpass program </li></ul><ul><ul><li>Passive tag on key chain or active tag attached to car window contains unique identification code. </li></ul></ul><ul><ul><li>RFID reader detects the tag, turns on the pump and automatically charges the gas purchase to the driver's registered credit card </li></ul></ul><ul><li>McDonald's now offer similar application to speed transactions at the counter and drive-thru window. </li></ul>
  42. 43. “ ExpressPay” <ul><li>Carl's Jr. is testing “ExpressPay” </li></ul><ul><ul><li>Faster lines at the cashier </li></ul></ul><ul><ul><li>Reduced backups at the drive-through window have brought in new customers. </li></ul></ul><ul><li>&quot;It's a no-lose situation,&quot; says Jason LeVecke, grandson of the chain's founder. </li></ul><ul><li>&quot;It sure would be easier than fumbling around in my purse,&quot; says Tracey Serenka, who had her two sons — Eric, 1, and Jason, 4--in tow at a Carl's Jr. recently. </li></ul><ul><li>Advantage over a credit card </li></ul><ul><ul><li>No name or signature on the fob, and the account number differs from that on the user's regular card, reducing chances that crooks can steal from the account. </li></ul></ul>
  43. 44. Security <ul><li>RFID badge and tracking systems ensure employee security and safeguard corporate property. </li></ul><ul><li>RFID transponders embedded in employee personnel ID tags provide hands-free access to secured buildings and a tamper-proof form of identification that ensures only authorized personnel are admitted. </li></ul><ul><li>Smart labels can also be applied to computers, furniture, files, and other objects for asset tracking and theft deterrence. </li></ul>
  44. 45. <ul><li>When its RFID luggage-handling system goes online in January, the Hong Kong Airport expects to lower labor costs, increase capacity and improve security. </li></ul>
  45. 46. Transportation Management <ul><li>Drivers pay tolls without stopping at toll roads and bridges </li></ul><ul><ul><li>Transponders that can be read at up to 50 mph (80 kph) are attached to the vehicle and are read when the vehicle passes an antenna mounted in the toll collection lane. </li></ul></ul><ul><ul><li>Drivers may either receive a monthly bill or have the toll debited from a prepaid value stored on the transponder. </li></ul></ul><ul><li>Similar technology is used in public transit to collect bus and train fare from prepaid passenger fare cards. </li></ul>
  46. 47. <ul><li>California FasTrak system uses RFID tags for electronic toll collection. As vehicle passes through, RFID reader scans the RFID tag, the information is used to debit the toll from a prepaid account. </li></ul><ul><li>Octopus Card (Hong Kong) for mass transit. </li></ul>
  47. 48. Hospitality <ul><li>Hotels, restaurants, and entertainment facilities can print and encode tickets and guest identification or membership cards. </li></ul><ul><li>The RFID card can be used for cashless payment, as a room key, and for access control to the health club and other facilities. </li></ul>
  48. 49. <ul><li>The White Pass ski resort raised more than $50,000 for the American Cancer Society by tracking how many vertical feet skiers and snowboarders traveled. </li></ul><ul><li>The system could be used as a loyalty program. </li></ul>
  49. 50. Inmate-tracking <ul><li>Calipatria State Prison in California </li></ul><ul><ul><li>Monitors guards and inmates with TSI PRISM, a tracking technology using RFID wristbands that look like large diver's watches. </li></ul></ul><ul><ul><li>The surveillance curtails violence. </li></ul></ul><ul><li>Prisoner tracking – Ohio Department of Rehabilitation and Correction (ODRH) approved (Aug. 2004) a $415,000 contract with Alanco Technologies to use wristwatch-sized transmitters that can detect if prisoners try to remove them. </li></ul>
  50. 51. Animal Tracking <ul><li>More than 50 million pets worldwide are tagged with RFID chips. </li></ul><ul><li>At least 20 million livestock have RFID tags to follow them for possible disease breakouts. </li></ul>
  51. 52. Asset Tracking <ul><li>Within months of deploying RFID to keep tabs on its IT equipment, Colorado's vast El Paso County expects to soon recoup its investment </li></ul>
  52. 53. <ul><li>Large organizations have a hard time tracking assets, like laptops. </li></ul><ul><li>Pilots at one of the largest US government agencies, the Social Security Administration, prove RFID and creative thinking can save money. </li></ul>
  53. 54. Military <ul><li>The biggest user of RFID today </li></ul><ul><li>U.S. military has plowed $272 million into RFID asset tracking in Iraq. </li></ul><ul><ul><li>The Army Material Command required all air pallets and commercial shipments for Gulf War II to be digitally tagged so commanders like General Tommy Franks knew when and where critical cargo like tanks would arrive. </li></ul></ul>
  54. 55. <ul><li>DOD tracks humans with RFID </li></ul><ul><ul><li>The Navy's Fleet Hospital 3 kept tabs on wounded soldiers, civilians and POWS at its 116-bed facility in the Iraqi desert by using wristbands with RFID chips. </li></ul></ul><ul><ul><li>By scanning the wristbands, medical personnel could access treatment and track patients in a central database. </li></ul></ul><ul><ul><li>&quot;In Iraq the real challenge was tracking noncombatants, but ultimately we hope every soldier will have an RFID tag,&quot; says Lisa Mantock, president of Texas-based ScenPro, which developed the software. </li></ul></ul>
  55. 56. Arts and Entertainment <ul><li>Several museums in Rotterdam are using RFID to reduce the cost of tracing the movements of works by Rembrandt, Renoir, Picasso and other masters. </li></ul><ul><li>And for the past two years, Oscar-goers have been screened and tracked by RFID. </li></ul>
  56. 57. Others <ul><li>RFID embedded in Michelin tires (2003) for tire tracking in compliance with U.S. Transportation, Recall, Enhancement, Accountability and Documentation (TREAD) Act. </li></ul><ul><li>Seismic sensors may be read using RFID transceivers for remote data collection. </li></ul><ul><li>RFID to track cadavers. </li></ul>
  57. 58. Expiration Dates of Food in Refrigerator <ul><li>KEEPING TRACK </li></ul><ul><ul><li>With RFID, the family fridge will tell you when the milk is spoiled or you’re out of butter. In the store, your grocer will know all. A tag will help you find Fluffy too </li></ul></ul>PHOTO-ILLUSTRATION FOR TIME BY VIKTOR KOEN,9171,1101030922-485764,00.html
  58. 59. Privacy Issues RFID has the potential to be the most invasive consumer technology.
  59. 60. <ul><li>Katherine Albrecht, founder of New Hampshire-based CASPIAN (Consumers Against Supermarket Privacy Invasion and Numbering) </li></ul><ul><ul><li>Her grocer scans her credit card — at the bottom of her purse — and tracks her around the store recording her selections. </li></ul></ul><ul><ul><li>Police come knocking after tracing an RFID-tagged soda can found at a crime scene to her credit card. </li></ul></ul>