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Title: Establishing RFID Implementation Guidelines 10 Essential Steps


1
Establishing RFID Implementation Guidelines10
Essential Steps
  • Alfio Grasso
  • Deputy Director, Auto-ID Lab, Adelaide
  • General Manager, RFID Automation

2
Overview
  • RFID Background
  • RFID in Australia
  • RFID Why Now
  • Standards
  • Future Developments
  • 10 Steps!
  • RFID Solution Providers
  • Auto-ID Lab, Adelaide
  • Australasian Adoption Research Initiative (AARI)
  • Conclusions

3
RFID Background
4
RFID
  • Radio Frequency Identification
  • Automatic Data Capture
  • Uses RF to communicate
  • Basic Elements
  • Tags
  • Readers/Antennas
  • Host CPU

5
Tag reading
The black spot
Reader Tx typically 1W, 6dB gain Antenna But
propagation loss, resulting Rx at Tag typically
µW On tag, RF energy used for DC power and
modulation More loss back to Reader Rx Therefore
a very weak reply is obtained
6
RFID Systems
  • Tags
  • Attached to objects or items
  • Contains electronics (chip), and antenna
  • Most are passive (no power source)
  • Active tags have a battery
  • Readers
  • Contains electronics, Tx, Rx and control
  • Connected to antenna(s), mostly external
  • Energise tags (passive tags)
  • Commands tags (wake up active tags, enables
    management of the tag population)
  • Receive tag replies

7
Gen 2
8
Gen 2 Compliant Readers
9
RFID Antenna(s)
10
Host CPU
  • Application
  • Do something with the tag information
  • Potential to generate massive amounts of data
  • Once installed it costs virtually NOTHING to read
    a tag!
  • Real time data gt real time decisions
  • OHIO (Zero Human Involvement Operations)
  • Term defined by John Greaves, CHEP International

11
RFID in Australia
  • Skip to RFID Why Now

12
Electronic Toll Collection
13
Extended Read Range
14
Vehicle ID, Sugar Industry
Photos courtesy of Mirrabooka Systems
15
Steel Production
16
Hot-Axle Detection and RFID
Photo courtesy of Sugar Research Institute
17
Location ID
18
Location ID
19
Industrial Waste Management
20
Domestic Waste Management
21
Manufacturing
Photo taken at Hendersons Automotive Technologies
Pty Ltd
22
Library
Photos courtesy of the National Library Board
Singapore
23
Warehouse Management
Photo taken at Carlton United Beverages
24
Warehouse Management
25
Paper Roll Identification
26
Vehicle Manufacture
27
RFID Why Now
  • Skip to Standards, Regulations

28
Why Now!
  • Recent improvements in tag and reader technology
  • Better performance
  • Easier deployment and maintenance
  • Better use of existing infrastructure and
    technologies
  • Improvements in tag and reader manufacturing
  • Cheaper tags and readers
  • Industry standardisation
  • EPCglobal and ISO

29
RFID Market To Reach 7.26Bn In 2008
  • A new market research report covering RFID from
    2005 to 2015, researched by IDTechEx.
  • Bottom line is that this years global market for
    RFID including tags, systems and services is
    1.94 billion but it will be driven by demand and
    new laws to 26.90 billion in 2015.
  • 1.8 billion RFID tags have been sold to 2005.
  • Passive tags 410 million (car clickers)
  • Active tags 1390 million (cards)
  • Key volume applications for RFID technology
  • access cards for the financial, security and
    safety markets
  • automotive and passenger transport sector
  • smaller markets in leisure, libraries, laundry
    and healthcare.

As reported in IDTechEX 11 April 2005
30
More Trends
  • 3.1 billion tags will be used for pallets and
    cases in 2006.
  • By 2008
  • 6.8 billion tags for Item level tagging
    (especially by pharmaceuticals) and tagging of
    baggage, animals, books, tickets and other non
    retail markets
  • But 15.3 billion tags for pallets/cases
  • The market for RFID interrogators will reach
    1.14 billion.
  • Near Field Communication interrogators will be
    0.75 billion.
  • NFC devices seamlessly communicating with each
    other.
  • Forecasts by territorial region show that by 2010
    48 of RFID tags by numbers will be sold in East
    Asia, followed by 32 to North America.

As reported in IDTechEX 11 April 2005
31
Another Report
  • Research and Markets reports by the year 2015
  • 900 billion food items could be RFID tagged
  • 824 million livestock will have more
    sophisticated, more expensive tags

Source Using RFID 3 Nov 2005
32
Gartner Predictions
  • Forecast report
  • Market Share and Forecast Radio Frequency
    Identification, Worldwide, 2004-2010.
  • The key prediction is that the RFID market will
    grow from 504 million, 2005 to 3 billion in
    2010.
  • CPG, retail, aerospace, defence, healthcare,
    logistics, and pharmaceuticals

Source RFID Update 13th Dec 2005
33
BUT IDTECHEX 2005 Review
  • The spend on RFID tags in 2005 (600 m tags) was
    1.2Bn and the total spend on RFID (including
    tags, readers, services etc) was 1.85Bn.
  • The biggest application for RFID in 2005 by
    volume and value is contactless smart cards, with
    250 million delivered.
  • About 150 million EPC tags have been delivered in
    2005 for retail and other applications.

Source IDTECHEX RFID tag sales in 2005 how
many, where, Dec 19th 2005
34
IDTechEx
  • Cumulative sales of RFID tags for sixty years
    until the beginning of 2006 total 2.4 billion,
    with 600 million tags being sold in 2005 alone.
  • In 2016, IDTechEx see the value of the total
    market including systems and services to rocket
    to 26.23Bn from 2.71Bn in 2006 in value.
  • The number of tags delivered in 2016 will be over
    450 times the number delivered in 2006.  
  • This includes many new markets that are being
    created, such as the market for Real Time
    Location Systems using active RFID.
  • The market for active RFID will itself be more
    than 6Bn in 2016.

Source IDTechEx Report 17 Jan 2006
35
Cumulative RFID Tag Sales to 2005
Source IDTECHEX RFID tag sales in 2005 how
many, where, Dec 19th 2005
36
Pharma Review by FDA.
  • The FDA held a public workshop on February 8 and
    9 to evaluate the timing on their RFID
    "e-pedigree" initiative with respect to RFID.
  • The FDA had originally hoped that RFID would be
    sufficiently in place by 2007.
  • The FDA has commented that overall industry
    adoption has been slower than expected, and they
    believe the 2007 goal is likely not attainable.

37
Pharmaceutical tagging - a possible scenario
2006-2010
Source Source IDTechEx report RFID Forecasts,
Players Opportunitites 2006-2016.
38
Pharmaceuticals
  • The World Health Organisation, stated that about
    10 percent of the world market for
    pharmaceuticals are likely counterfeits
  • Equalling about US35 billion in lost sales
    annually.
  • The European Union estimates that as many as
    100,000 jobs have been lost due to this crime.

39
RFID's future in healthcare
  • RFID tags and systems in healthcare to rise
  • From US90 million in 2006 to US2.1 billion in
    2016.
  • Due to
  • Item level tagging of drugs
  • ePedigree
  • Real Time Locating Systems (RTLS) for staff,
    patients and assets.
  • improve efficiency, safety and availability and
    to reduce losses.

Source IDTechEx report in Using RFID 2nd May
2006
40
Automotive Vertical Market RFID Business
Planning Service
  • Global market for RFID systems in the
    automotive industry, excluding immobilizers,
    reached an estimated 312 million in 2005.

Source Venture Development Corporation
According to ABI the worldwide revenues generated
last year by RFID vehicle immobilizers was 3.7
billion. Source RFID Update 21st March
2006
41
RFID to Surpass EAS in Label Market
  • Freedonia predict that by 2014, RFID smart labels
    will represent more than 85 percent of the total
    smart label market
  • The report predicts that U.S. demand for all
    types of smart labels will increase more than 11
    percent annually, reaching 8 billion units in
    2009.
  • RFID smart label demand will jump from 23 million
    units in 2009 to more than 50 billion in 2014.

Source RFID Journal 3rd Feb 2006, News Roundup
42
RTLS Market Forecast
  • Real Time Locating Systems (RTLS) market was
    worth some US201.3 million in 2004, and is
    forecast to reach some US1.26 billion in 2011.

Source Frost Sullivan Report 2 Feb 2006
43
  • CeBIT, Hanover, Germany this year held its
    inaugural an "Auto ID/RFID" exhibition section.
  • Metro Group, German retailer and early RFID
    adopter had a 2,800-sq m demonstration of the
    "Internet of Things

44
Gen 1 Sunset at Wal-Mart
  • The new Wal-Mart CIO Rollin Ford yesterday
    reaffirmed his "unequivocal" commitment to the
    RFID initiative, and said that the company will
    sunset Gen1 technology on June 30th 2006.
  • Source http//walmartstores.com/GlobalWMStoresWeb/
    navigate.do?catg512contId6136

45
Wal-Mart experience
  • University of Arkansas study which assessed
    the supply chain effects of its RFID deployment.
    Commissioned by Wal-Mart
  • Out-of-stocks decreased 16 on RFID tagged items
  • Out-of-stocks were replenished three times faster
    on tagged items than on items with only bar codes
  • There was a 10 reduction in manual orders for
    tagged items
  • Further analysis of data taken from 24 Wal-Mart
    stores between 14th Feb 2005 to 12th Sept 2005
    reveals that RFID technology is resulting in a
    30 reduction in out-of-stocks

Source RFID Update 17th Oct 2005
Source RFID Update 4th May 2006
46
Update on Wal-Mart
  • Five distribution centers
  • 475 Wal-Mart stores and 36 Sam's Club locations
  • Receiving a combined total of 3,000,000 tagged
    cases each week.

Source RFID Journal 5th May 2006
47
Standards
  • EPCglobal
  • ISO
  • Regulatory

Skip to Future Developments
48
(No Transcript)
49
EPCglobal Membership Mar 2006
50
Working Groups
  • Business Steering Committee (BSC)
  • Fast Moving Consumer Goods (FMCG)
  • Healthcare and Life Sciences (HLS)
  • Transport and Logistics (TLS)
  • Technical Steering Committee (TSC)
  • Hardware Action Group (HAG)
  • Software Action Group (SAG)

51
FMCG Working Groups
  • Data Exchange
  • European Adoption Programme (EAP)
  • Pilot and Implementation (PI)
  • Reusable Transport Items (RTI)
  • Strategic Planning
  • Tag and Inlay Standards
  • Asian Adoption Program (AAP)

52
HLS Working GroupsSlide Updated since print
  • Strategy
  • Policy (Complete)
  • Process (Complete)
  • Information
  • Technology
  • Research Development (on hold)
  • Track Trace
  • Medical Devices

53
TLS - Working Groups
  • Transportation
  • Four walls
  • Import Export Clearance
  • Integration

54
HAG Working Groups
  • Class 1 Generation 2 (Work completed)
  • Gen 2 Testing Certification
  • Air Interface (Item Level Tagging)
  • UHF AI
  • HF AI
  • Interoperability

55
SAG Working Groups
  • Reader Protocol gt Reader Operations
  • Reader Management
  • Filtering and Collection (Phase 1 Complete)
  • ONS (Complete)
  • Security (Phase 1 Complete)
  • Tag Data Translation (Complete)
  • EPCIS Phase 2
  • Tag Data Standards (Phase 1 Complete)
  • Drug Pedigree Messaging (New)

56
Future Business Action Groups
  • Aerospace and Defense
  • Airbus
  • Boeing
  • Lockheed Martin
  • NASA Space
  • U.S. Department of Defense
  • Food and Beverage
  • Livestock
  • Fruits/vegetables subject to disease/infestation
  • Auto
  • Early discussions (BMW, Daimler-Chrysler, Ford,
    GM, Hyundai, Toyota, Volkswagen)
  • Apparel and Footwear

57
Future Industries
  • High-Tech
  • Computer Consumer electronics
  • Industrial electronics
  • Chemical
  • Petrochemicals
  • Industrial chemicals
  • Defence
  • War materiel
  • Equipment maintenance
  • Oil Gas
  • Exploration

58
(No Transcript)
59
EPC Event Layers
60
EPCIS Concepts
61
Capture Application
62
Gen 2
63
Inlay Costs
  • Avery Dennison C1G2
  • US0.079 Qty gt 1m - 20 Sept 2005
  • SmartCode C1G2
  • US0.05 Qty gt 100m 1 May 2006
  • US0.075 Qty gt 1m - 6 Oct 2005
  • Inlay is the functional part of the tag
  • Includes the integrated circuit and antenna
  • Usually "converted" to a tag
  • by being placed in a plastic sleeve, adhesive, or
    other housing that allows it to be stuck to
    items.
  • The final tag cost is therefore considerably more
    than that of the bare inlay, often by two or
    three times.

Source RFID Update
64
Tag Costs
  • Finished, fully-validated, ready-to-use Gen2 RFID
    labels
  • RSI ID Technologies
  • Under US0.149
  • Qty gt 1m 22 Sept 2005
  • New Item Level Tags, US0.099 Qty 1m
  • Sato C1G2
  • US0.149, Qty 1 role (2000 tags), 7 Oct 2005
  • Based on Avery Dennison Inlay
  • 100mm by 50mm

Source RFID Journal 5th May 2006 Source RFID
Update 7 Oct
65
Cheapest Tag (not G2)
  • Alien C1G1 (squiggle)
  • US0.129 Qty gt 1m - 13 Sept 2005

Source RFID Update
66
Smallest UHF Tag
  • TAGSYS announced the smallest Gen2 tag
  • 12mm x 8mm.
  • This kernel tag is common across all
    applications customization begins with the
    optional addition of another, secondary antenna.
    This secondary antenna can be attached to a
    product that is already tagged with the kernel
    tag, thereby expanding its functionality
    according to the needs of a particular item-level
    application. The antenna can be incorporated into
    the packaging of the product, but is notably not
    physically attached to the kernel tag.
  • Costs stated to be between 5c to 8c, when the
    TAGSYS system is used.

Source RFID Update 22 Feb 2006
67
Impinj Item Level Tags
apparel industry
CDs and DVDs
garments
68
Gen 2 - Reader Costs
  • Applied Wireless Identifications (AWID)
  • MPR-3014
  • EPCglobal Gen 2 certified
  • 4 antenna port reader WITH 4 antennas
  • US1,000 each .
  • Ensyc Technologies
  • RFID Block
  • US395

Source RFID Update 26 Sept 2005 Source
http//www.ensycrfid.com/press3.html
69
ISO Standards
70
RF Regulations
  • Regulators
  • Classify RFID as Industrial, Scientific and
    Medical use
  • ISM bands
  • 125-134 kHz (ISO 18000-2)
  • 13.56 MHz or HF (ISO 18000-3)
  • 433 MHz (ISO 18000-7)
  • 860 to 960 MHz or UHF (ISO 18000-6)
  • 2.45 GHz (ISO 18000-4)
  • 5.8 GHz (no ISO standard)

71
(No Transcript)
72
Other RFID Standards
  • ISO/IEC 18000-1
  • Reference architecture and definition of
    parameters to be standardized
  • ISO/IEC TR18001
  • Application requirements profiles
  • ISO/IEC 18046
  • RFID Tag and Interrogator Performance Test
    Methods
  • ISO/IEC TR18047-2
  • Test methods for air interface communications
    below 135 kHz
  • ISO/IEC TR18047-3
  • Test methods for air interface communications at
    13,56 MHz
  • ISO/IEC TR18047-4
  • Test methods for air interface communications at
    2.45 GHz
  • ISO/IEC TR18047-6
  • Test methods for air interface communications at
    860 to 960 MHz
  • ISO/IEC TR18047-7
  • Test methods for air interface communications at
    433 MHz

73
Other Relevant ISO Standards
  • ISO/IEC 15418
  • EAN/UCC Application Identifiers and Fact Data
    Identifiers and Maintenance
  • ISO/IEC 15424
  • Data Carrier Identifiers (including Symbology
    Identifiers)
  • ISO/IEC 15434
  • Transfer syntax for high capacity ADC media
  • ISO/IEC 15459 - Parts 1 2
  • Unique identification of transport units
  • Part 1 General
  • Part 2 Registration procedures
  • ISO/IEC 15960
  • Transaction Message Profiles
  • ISO/IEC 15961
  • Data protocol application interface
  • ISO/IEC 15962
  • Data protocol data encoding rules and logical
    memory functions
  • ISO/IEC 15963
  • Unique identification for RF tags

74
Other Relevant ISO Standards
  • ISO/IEC 19762
  • Harmonised Vocabulary
  • ISO/IEC 24710
  • Elementary Tag Licence Plate functionality, for
    18000-2 to 18000-7
  • ISO/IEC 24729
  • Implementation guidelines
  • ISO/IEC 24752
  • System Management Protocol.
  • ISO/IEC 24753
  • Air Interface Commands for Battery Assist and
    Sensor Functionality

75
  • ISO/IEC 18185
  • Freight containers - Electronic seals
  • Part 1, Communication protocol
  • Part 2, Application requirements - Approved
  • Part 3, Environmental characteristics - Approved
  • Part 7, Physical layer
  • Part 4, Data protection
  • Part 6, Messages sets for transfer between seal
    reader and host computer
  • Part 5, Sensor interface
  • Withdrawn - 18185 is a read-only tag

76
  • ISO/IEC 10374-2
  • Freight containers RF automatic identification
  • ISO/IEC 17363
  • Supply chain applications of RFID - Freight
    containers
  • ISO/IEC 17364
  • Supply chain applications of RFID - Returnable
    transport items
  • ISO/IEC 17365
  • Supply chain applications of RFID - Transport
    units
  • ISO/IEC 17366
  • Supply chain applications of RFID - Product
    packaging
  • ISO/IEC 17367
  • Supply chain applications of RFID - Product
    tagging

77
  • ISO/IEC 10374
  • Freight containers Automatic identification
  • ISO/IEC 11784
  • Radio Frequency Identification of Animals - Code
    Structure
  • ISO/IEC 11785
  • Radio-Frequency Identification of Animals -
    Technical Concept
  • ISO/IEC 14223
  • Radio-Frequency Identification of Animals -
    Advanced Transponders
  • ISO/IEC 21007-1
  • Gas Cylinders - Identification and Marking Using
    Radio Frequency Identification Technology - Part
    1 Reference Architecture and Terminology
  • ISO/IEC 21007-2
  • Gas Cylinders - Identification and Marking Using
    Radio Frequency Identification Technology - Part
    2 Numbering Schemes for Radio Frequency

78
EPCglobal submission to ISO
  • EPCglobal submitted C1G2 V1.0.9 to ISO
  • FPDAM Ballot resolution Meeting
  • Austria, 30 November 2005
  • 160 Comments Resolved

79
Regulatory Standards
80
UHF
  • The UHF tags will be able to be read by readers
    operating within 860 960 MHz range.
  • The readers will be restricted to a small subset
    of this range depending on where in the world
    they are being operated.
  • There are also regulations on the amount of power
    emitted by the readers depending on where the
    readers are being used.
  • Therefore, a tag may be applied to an item and
    shipped anywhere in the world, but a reader has
    to be specifically set up for the region or
    country

81
Map of the ITU regions
82
ITU Region 1 (EU and Africa)EN300-220 EN302-208
  • CEPT countries
  • 869.4 - 869.65 MHz 500mW erp DClt10
  • 865.6 - 867.6 MHz 2W erp LBT
  • South Africa
  • 869.4 - 869.65 MHz 500mW erp
  • 915.2 - 915.4 MHz 8 W eirp
  • Note all of the above operate in lt 250kHz
    channels

83
ITU Region 2 (Americas)FCC Part 15.247
  • USA, Canada and Mexico
  • 902 - 928 MHz 4W EIRP FHSS, 500kHz wide
    channels permitted relaxed emission
    requirements within the whole band.
  • Central South America
  • Generally similar to North America but varies
    from country to country.

84
ITU Region 3 (Asia)
  • Australia
  • 918 - 926 MHz 1W EIRP
  • 920 926 MHz 4W EIRP
  • Experimental
  • Strict conditions apply
  • New Zealand
  • 864 - 868 MHz 4W EIRP
  • Elsewhere in Asia
  • Generally follow CEPT some exceptions below
  • China 917 to 922 2W ERP
  • Hong Kong 865-868 2W ERP 920-925 4W EIRP
  • Japan 952 - 954 MHz 4W EIRP (licensed)
  • Malaysia 919-923 MHz, 2W ERP
  • Singapore 866-869 MHz 0.5W ERP 923-925 2W ERP
    (licence)
  • South-Korea 910 914 MHz
  • Taiwan 922-928 1W ERP (indoor) 0.5W (outdoor)

85
European Recommendation
  • Draft ETSI TR 102 436 Technical Report
  • Electromagnetic compatibility and Radio spectrum
    Matters (ERM)
  • Installation and commissioning of RFID systems
    operating at UHF

86
AIM RFID Emblem
  • AIM Global's RFID Experts Group (REG)
  • Visual aid to workers
  • Help find and identify the presence (and type) of
    RFID tag in a label, tag or item.
  • Also identify compatible printer/encoders and
    readers
  • http//www.aimglobal.org/standards/RFIDEmblem/

87
Future Developments
  • Skip to Implementation

88
Banking/Financial
  • Chase
  • To roll out 5 million blink cards
  • Visa and MasterCard
  • Selected states in US
  • ISO 14443 air interface

Source RFID Journal Nov 4th 2005
89
Other Technologies
  • Large HF Tag antennas,
  • Marathon Tags, A4 or A5 size
  • Fractal antennas (array of small antennas)
  • Surface Acoustic Wave RFID
  • Micro-fibre Sensor Tracking (MST) Demodulation
    Inc
  • Small glass beads that contain magnetically
    pre-coded "micro fibres".
  • u-Fiber micro-wire segment less than 40 microns
    in diameter (and one inch long)
  • Read up to a distance of up to 25 metres.
  • Millions of possible combinations
  • Not affected by temperatures up to 400 degrees F,
    or below freezing
  • Resistant in both acidic and basic environments.
  • Expected selling price of US0.01

90
SAW technologya resurgence
  • Surface Acoustic Wave Technology
  • Australian players, like MEMS ID
  • Use of Nano-technology
  • No threshold to overcome
  • Sense Temperature passively
  • Withstand security and safety related processes
  • elevated operating temperatures
  • high energy x-rays
  • gamma ray sterilization (as is used with some
    food and medical supplies)

91
Active Tags
  • Paper Battery
  • Energy Scavenging
  • Light
  • Vibration
  • Acoustic

92
Printed Electronics on Plastic Film
Source IDTechEx Printed Electronics Flyer,
March 21, 2006
93
Philips 13.56 MHz plastic RFID tag
  • Store and transmit unique data
  • Combination of conductive and semi-conductive
    polymers
  • contains 2,000 transistors, enabling it to store
    64 bits of data.

Source RFID Journal 10th Feb 2006
94
IBM To Invest US1B
  • FEBRUARY 16, 2006 (COMPUTERWORLD) - NEW YORK --
    IBM announced today that it plans to invest an
    additional 1 billion in data management over the
    next three years.
  • IBM said its plan is being driven by a number of
    trends
  • Hardware thats getting increasingly
    supercomputer-like,
  • Improved software-related capabilities for
    accessing data
  • Pressure from new data-drenching technologies
    such as radio frequency identification (RFID)
  • An overall desire by business leaders to improve
    usage of information throughout their
    enterprises.

95
RFID Hub
  • The Metroplex Technology Business Council
  • Creating an additional identity, the RFID Hub, so
    the international business community recognizes
    that North Texas is a global center of RFID
    excellence.

96
Implementation Plan
  • 10 Essential Steps

97
1 - Definition
  • Define your RFID implementation metrics
  • Compliance
  • Reduce Inventory
  • Stock Visibility
  • Reduce Costs
  • Increase asset utilisation
  • Reduce shrinkage
  • Reduce/eliminate shipping errors
  • Consider existing infrastructure
  • Vendors
  • Customers

98
Plan Cont
  • Investigate world standards ISO or EPC
  • Choose frequency of operation
  • 13.56 (HF) or 860 to 960 MHz (UHF)
  • Extensive pilot or test plan
  • Develop assessment criteria for solution
    providers
  • Minimise scope creep!

99
Business case ROI
  • Create a cross functional team
  • Senior Executives from manufacturing, operations,
    packaging, warehouse management, security and
    finance
  • Educate the Team
  • Real RFID performance and expectations
  • Leverage the data, both internally amongst
    operational departments, but eventually with
    outside trading partners

Source The Road to ROI, RFID Journal Mar 2005
100
Business case ROI Cont
  • Identify the problems and opportunities
  • Resolve issues
  • Change to processes, packaging etc
  • Define the scope of the RFID deployment
  • Concentrate on which macro-level problem will
    deliver the most benefits to the organisation
  • List factors within the companys control that
    contribute to that macro-level problem
  • Narrow the scope, maybe by region, department or
    area.
  • Consider pallet level rather than case or item

101
Business case ROI Cont
  • Analyse operations and processes
  • Itemise the business processes, quantifying
    processes
  • Breakdown all processes, not just the clearly
    inefficient ones
  • Prioritise Projects
  • Could end up with 5 to 7 RFID projects
  • Can the same RFID infrastructure be used for more
    than 1 project?
  • Related projects most likely to deliver results

102
Business case ROI Cont
  • Assess financial impact
  • Benefits as well as costs
  • Tag and Reader costs
  • Installation (power, comms, antenna
    infrastructure)
  • Operational Costs
  • Impact of other projects
  • Other projects may add to the benefits and yet
    reduce costs

103
Business case ROI Cont
  • Sensitivity Analysis
  • Cost of components, tags, reader etc.
  • Mandates
  • Revisit the business case regularly
  • As with any plan, review and re-evaluation is key
    to its success
  • Report progress

104
Wal-Mart results
  • University of Arkansas 29 week Wal-Mart study
  • 16 reduction in out-of-stocks
  • Out-of-stock items with RFID were replenished
    three times faster than comparable items using
    traditional bar codes.
  • Wal-Mart also saw a 10 reduction in manual
    orders, which mean a reduction of excess
    inventory.
  • Latest update
  • Re-analysis indicates gt30 reduction of oos

Source Computer Business Review, 18 October
2005 Source RFID Journal 5th May 2006
105
2 - Solution Providers
  • Evaluate Solution Providers
  • Tag Manufacturers
  • Reader Manufactures
  • IT infrastructure
  • Installation
  • Commissioning
  • Maintenance
  • Upgrades

106
3 - IT Impacts RF Issues
  • IT System impacts
  • Interface to existing system, or new system!
  • Accuracy of that data
  • Accumulation of much more data
  • Decision processes with that data, making the
    data USEFUL!

107
RF Issues
  • RFID issues in your environment
  • RF Interference
  • LAN, Other RFID Readers, EMI, Bluetooth, 802.11
  • Metal
  • Moisture
  • Allow time for experimentation
  • Expansion
  • Scope creep or leverage
  • Duplication

108
RF Issues Cont
  • RFID Design
  • Hardware Systems
  • Fixed or portable RFID readers?
  • Portable not OHIO (that is not automatic)!
  • Business processes
  • Simulation?
  • RFID Friendly Assets
  • As infrastructure is upgraded plan on using RF
    friendly assets, even if not implementing RFID

109
Gillette Fusion Launch
EPC used in EPC-enabled stores to help ensure
perfect retail execution to coincide with 2006
Super Bowl launch
  • The first new product packaging designed to be
    EPC-friendly
  • EPC used on Fusion cases, sidekicks, PDQ trays
    and pallets
  • 5 Blade Razor!

110
4 - Purchase/Deploy/Integrate
  • Equipment Supply
  • Development
  • Manufacture lead times
  • Engineering work and preparation
  • Deployment of infrastructure
  • Readers and Antennas
  • IT Systems
  • Ancillary equipment

111
Purchase/Deploy
  • Tags
  • Supply
  • Initialisation (EPC code and data)
  • Database update
  • Installation
  • Verification
  • Training
  • Employees, Managers, IT development

112
Integration
  • Integration into IT systems
  • Database design
  • Scalability
  • New/Existing
  • Interim period
  • Exceptions, when no tag applied!
  • Evaluation of performance
  • Fine adjustments
  • Upgrade path

113
Integration Cont
  • Other partners
  • Suppliers
  • Customers
  • Competitors
  • Finally Rollout
  • Duplicate (other sites, divisions)
  • Expand (RFID applications)
  • Leverage (RFID infrastructure)

114
When to tag?
Source Deploying RFID with varying levels of
Back-end Systems Integration, Ellen Boerger RFID
Director NCR Corporation
115
Gradual Ramp-Up
  • Tagging philosophy changes over time.
  • Tag_at_ship, No Integration with IT Systems
  • Slap Ship, incur cost but no benefit!
  • Tag_at_ship, WMS Export and Offline System
  • Good for low volume, offline system minimises IT
  • Tag_at_ship, Semi-automated WMS Integration
  • Online integration with WMS, but manual
    operations for some tagging steps, i.e.
    programming, application /or verification
  • Tag_at_pick/Tag_at_receive
  • Verify at ship
  • Tag_at_source
  • Verify at receive, pick, ship
  • Tag_at_vendor
  • mandate

116
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117
5 - Assessment Criteria
  • Range of Hardware
  • Tags, Readers, Volume, Vendors, Standards,
    Frequency, Host platforms, Ancillary equipment,
    Upgrades, Expansion
  • Range of IT Solutions
  • Integration into legacy systems
  • Privacy
  • Expansion
  • Services
  • Global or Local
  • Site Inspection, Design, Installation,
    Commissioning, Maintenance
  • Partner networks (hardware, middleware)

118
Assessment Criteria Cont
  • Relevant experience in your industry
  • Testing
  • ISO 18047-X Conformance Test Methods
  • ISO 18046 Performance Test Methods
  • EPCglobal (Gen 2 V1.0.2) Conformance Test Methods
  • EPCglobal Certification
  • Vendor test Facility
  • Testing your products in your installation(s)
  • Development/Customisation
  • Tags and Readers, ancillary sensors
  • Packaging, Cost, IP issues
  • Maintenance

119
6 - Reader Tag Issues
  • Reader location is important, but local
  • Antenna
  • Tunnel/Portal (multiple antennas)
  • Circular Vs Linear
  • Host Interface, online
  • Remote restart
  • Alarm/alerts/Heartbeat
  • Self diagnostic tests
  • Upgrades

120
Portal
121
Shielding
Photo courtesy of RFID Journal
122
RF Friendly
123
Neatness Counts!
124
Temporary Conditions
125
Location Location Location
  • Tag location will be crucial for performance
  • Want global use for product/tag life
  • Optimal location for RF Tag may not be the same
    as the location for a human readable tag/label
  • Consider composition of the object
  • If lots of metal, then look for gaps!
  • Metal surface can be used to extend the read
    range ?/4
  • Life time environmental exposure

126
Location
Photos courtesy of RFID Journal
127
Courtesy Auto-Id Lab Cambridge
128
7 - Process flow
  • Consider a change to the process flow
  • How package is handled, stored and pallet stacked
  • Change packaging to be RFID friendly
  • Test tag after application
  • Metal, moisture, damage
  • Consider alternative technologies/methods to get
    100 reads
  • Process when items are Single units
  • Aggregation/Association

129
Single Items
Source RFID Pilot Trial Learnings -
Georgia-Pacific
130
Source RFID Learning RFID Learnings Wal Wal-Mart
131
Association/Verification at stretch-wrap
Source Supply Chain improvement through
EPC/RFID- DHL/Deutsche Post
132
100
Source Compensating for less than 100 case Read
Rates, Joe Doran (The Gillette Co.)
133
8 - Data
  • RFID data
  • Once installed, no real additional cost to read a
    tag
  • Sensor data
  • Temperature, Weight, etc
  • Middleware (Savants) filters/concentrators
  • RFID enabled enterprise applications
  • Database maintenance
  • Legacy data
  • Accuracy of data
  • Exchange data with partners
  • Vendors and Customers
  • UCCnet Global Registry
  • Scalable

134
9 - The Human Touch
  • Privacy
  • Establish a privacy committee
  • Consider all users, employees, contractors,
    customers, vendors, supply chain personnel
  • Employees
  • Explanation
  • Efficiency, bottom line benefits
  • Training

135
FIP
  • Fair Information Practices
  • Origins back to 1973
  • 4 Principles
  • Notice
  • Choice
  • Access
  • Security

136
Privacy
  • Develop a Privacy Policy and ENFORCE IT!
  • Engage consumer groups BEFORE implementation
  • Educate Users
  • Adverts, Pamphlets, Posters, Internet, Toll free
    line.
  • Disclose the use of RFID
  • Tags and Readers
  • Not only the tagged goods, but also the presence
    of readers
  • Consumer acceptance of reader locations
  • But if hidden readers are used, consumer trust
    could be shattered!
  • EPCglobal Logo
  • More printed info on the label
  • Web address for more information

Source Privacy Profits, RFID Journal July 2005
137
Privacy Cont
  • Inform on the Use of RFID
  • Even if you are not using RFID, but goods, boxes
    etc may come into your facility, tell the
    consumer.
  • Educate/Inform Staff
  • Management
  • Public relations
  • Store personal, in contact with consumers
  • Direct to customer service or website
  • Dont write personally identifiable information
    to the TAG
  • Contradiction of FIP
  • Illegal under the European Unions Directive on
    Privacy and Electronic Communication

138
Privacy Cont
  • Secure the data and limit what you collect
  • Apply the same level of security to EPC data as
    one would apply to any customer data.
  • Avoid associating the EPC number with the person
    purchasing the item.
  • No clear benefit in knowing what unique item is
    being purchased by an individual

139
Privacy Cont
  • Choice
  • Kill or remove
  • Dont tie returns to having an active (working)
    tag
  • Still have discounts and participate in loyalty
    programs, even if they choose to kill the tag.
  • Opt in or Opt out
  • Do consumers opt in , or do they have to opt out.
    Opt in is safer as the consumer has made a
    positive choice
  • Consumer to have the right to view any
    information stored about them.
  • Correct if wrong, or delete
  • Consumers to have the right to choose to share
    that information with 3rd Parties

140
Privacy Cont
  • Keep Privacy policy up to date
  • Reflect changes in technology, processes
  • Reassess the communication strategy to keep
    consumers informed

141
10 - Champion
  • Approval from the TOP
  • Realistic Expectations
  • Start small but think big
  • Small enable fine adjustments (experiment)
  • Big so as to leverage RFID throughout the
    business
  • Dont oversell
  • External/Internal expertise
  • Partner with both suppliers and customers
  • Possible change to business processes
  • Other infrastructure
  • Sensors, EAS, anti-counterfeit, engineering
  • Periodic assessment

142
10 Steps
  • Define the Project
  • Evaluate Solution Providers
  • Assess IT and RF Impacts
  • Purchase/Deploy/Integration Plan
  • Develop Assessment Criteria
  • Reader/Tag Issues
  • Process Flow
  • Data
  • Human Involvement
  • Champion

143
RFID Solution Providers Profile
144
Associations
  • Auto-ID Lab, Adelaide
  • autoidlab.eleceng.adelaide.edu.au/
  • RFID Automation (contract research)
  • www.rfidautomation.org
  • Australasian Adoption Research Initiative
  • alf_at_rfidautomation.org
  • GS1 Australia
  • www.gs1au.org
  • EPCglobal Australia
  • www.ean.com.au/services/epcglobal/_epcglobal.asp

145
Web
  • Subscribe to online publications
  • Journals, Newsletters, Manufacturers, Industry
    Associations
  • Favourites
  • http//www.rfidjournal.com/
  • http//www.hightechaid.com/
  • http//www.abiresearch.com/reports/RFID.html
  • http//www.rfidtalk.com
  • Other sources
  • http//members.surfbest.net/eaglesnest/rfid_mfg.ht
    m
  • http//www.rfidsb.com/ (Update)

146
RFID newshttp//www.umd.com.au/rfid/links_rfid_ne
ws.html
147
EPCglobal public sites
  • Home page
  • http//www.epcglobalinc.org/index.html
  • Cook book
  • http//www.ean.com.au/services/epcglobal/rfid_cook
    book/_rfid_cookbook.asp
  • Published Standards
  • http//www.epcglobalinc.org/standards_technology/s
    pecifications.html
  • Certification (Update)
  • http//www.epcglobalinc.org/certification/hw/index
    .html

148
RFID Solution Providers (alphabetical order)
  • Alien Technologies
  • www.alientechnology.com
  • Bar Code Data Systems (BCDS)
  • www.bcds.com.au
  • Datanet
  • www.data.net.au
  • Electro-com
  • http//www.electrocom.com.au/
  • Global Licensing Innovation
  • www.glandi.com
  • IBM
  • http//www.ibm.com

149
Cont
  • iCrystal
  • www.icrystal.com.au
  • Intermec
  • http//www.intermec.com
  • Magellan Technology
  • www.magtech.com.au
  • Mirrabooka Systems
  • gary_at_mirrabook.com
  • Radio Terminal Systems
  • www.radterm.com.au

150
Cont
  • Sunshine Technologies
  • www.sunshinetechnologies.com.au
  • Symbol Technologies
  • http//www.symbol.com/category.php?category18
  • Tyco/Sensormatic (Update)
  • http//www.sensormatic.com/home.aspx
  • Unique Micro Design (UMD)
  • http//www.umd.com.au/rfid/
  • UPM Raflatac
  • www.rafsec.com

151
Adelaide, Auto-ID Lab
152
Three entities
  • Auto-ID Lab
  • EPCglobal research
  • via sub-award from MIT
  • RFID Automation
  • Contract Research
  • Australasian Adoption Research Initiative
  • RFID adoption, Networking, Resources

153
  • One of 7 Auto-ID Labs around the world
  • MIT, USA
  • Cambridge, UK
  • Adelaide, Australia
  • Keio, Japan
  • Fudan, China
  • St Gallen, Switzerland
  • ICU, Korea

154
RFID Automation
  • RFID Automation
  • Web page www.rfidautomation.org
  • Established to undertake research projects
    outside the Auto ID Lab
  • To-date
  • Three consultancies
  • One Research Contract

155
Contract Research
  • Separate from the EPCglobal funded work
  • Commercial Infrastructure
  • Adelaide Research Innovation Pty Ltd
  • Intellectual Property Protection

156
Australasian Adoption Research Initiative
  • Established in April 2005
  • Mechanism for the Auto-ID Lab, Adelaide to
    conduct research into RFID that is relevant to
    Australian and New Zealand industry.
  • Foster adoption of the RFID technology being
    developed by EPCglobal.
  • Enables participation by companies across a broad
    range of industries and applications, to network
    and gain access to the wealth of expertise and
    experience in RFID.
  • Act as Industry Reference Group for the adoption
    of RFID including consultation and advice to SMEs
    and Governments.

157
Conclusion
  • RFID Automatic Data Capture
  • RFID is about management
  • Lots of RFID experience in Australia
  • Plan
  • Educate users
  • employees, customers, suppliers

158
Start Today!
159
Questions
160
Further Information
  • Alfio Grasso
  • Deputy Director
  • Auto-ID Lab, Adelaide
  • General Manager
  • RFID Automation
  • University of Adelaide
  • Web www.rfidautomation.org
  • Email alf_at_rfidautomation.org
  • Ph (08) 8303 6473
  • Mob 0402 037 968
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