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RFID Applications


Wal-Mart also stated that the RFID chip must be field programmable for later ... Wal-Mart affirmed its commitment the 96-bit ePC standard. ... – PowerPoint PPT presentation

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Title: RFID Applications

RFID Applications
  • Henry C. Co
  • Technology and Operations Management,
  • California Polytechnic and State University

Reference http//www.abc-computers.com/Products/

  • 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.

Wal-Mart Industry Pace-Setter
  • Pilot implementation in Texas
  • Three Distribution Centers (DC) that support
    approximately 150 stores (about 5 of the almost
    3,000 Wal-Mart stores)
  • Suppliers to identify inventory going to Wal-Mart
    in Texas with RFID technology.
  • For the pilot, suppliers are not required to
    provide 100 carton-level identification.
  • 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.
  • The tags must be human and RFID-readable.
    Wal-Mart desires 100 accuracy on RFID read

  • RFID provides a quick, flexible, and reliable
    electronic means to detect, identify, track, and
    hence manage a variety of items.
  • In World War II, the British used it to make sure
    incoming planes were theirs, not Germany's.

More than just bar-coding
  • 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.
  • 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.

Shipping and Receiving
  • Incoming pallets or cartons with smart labels can
    be automatically routed for cross-docking or
    delivery directly to the manufacturing line.
  • Fast-reading RFID enables instant identification
    of the shipping container plus all of the
    individual items inside.
  • For shipping, RFID readers can help packers
    quickly locate and aggregate all the items needed
    to complete an order.

  • Intel recently launched a pilot to track tagged
    cases of microchips as it packed and shipped them
    to an OEM customer.

  • 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
  • Chevron-Texaco is now looking at other pilot

  • Workers scan shelves and bins to automatically
    detect storage location of the sought items.
  • To detect items that are stored in the wrong
    location and alert operators to the problem.
  • Enables items to "self-report" their locations,
    rather than requiring human intervention to find
    them, thus reducing errors, saving labor, and
    lowering costs.

  • When PG's facility in Spain boosted throughput,
    the loading dock became a bottleneck.
  • RFID increased the speed at which pallets could
    be loaded on trucks -- and it eliminated mistakes
    and cut costs

  • Work-in-process tracking and routing
  • Integrated with industrial control systems to
    route items automatically through assembly
  • Many automotive manufacturers apply RFID tags to
    chassis to track them through painting stations.

  • Especially effective for routing and tracking
    materials in clean-room applications.
  • Serial numbers/lot ID data encoded during
    manufacturing provides lifetime tracking and
    product authentication.
  • To verify eligibility for returns and warranty
    repairs and detect counterfeit products.
  • Maintenance history can be stored on the tag and
    updated whenever service is performed.

  • Boeing uses RFID tags to track parts as they move
    through its facility in Wichita, Kansas.
  • The system reduces costs and gives managers
    visibility into the parts pipeline.

  • 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.

  • BuildNow's CubeInfo system uses RFID to
    dramatically improve the process.
  • More than 1 million concrete samples are tested
    in Singapore each year.

  • GM needed to boost production of its Hummer H2 to
    meet demand, but its manufacturing facility had
    limited space for parts.
  • The automaker turned to RFID to keep the plant

  • 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 carsand saved millions of dollars.

  • Johnson Controls makes car and truck seats that
    must be delivered to automakers in precise order
    for just-in-time manufacturing.
  • The company has deployed a 13.56 MHz RFID system
    that has proven to be 99.9 percent accurate.

  • During material handling operations such as truck
    loading or unloading, RFID enables identification
    of entire contents of mixed pallets all at once.
  • Managing pallets, totes, and other returnable
    transit containers
  • 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.

  • 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.
  • RFID tracking provides an audit trail that
    shippers can use to bill customers if materials
    are not returned.

DHL Worldwide Express
  • DHL Worldwide Express handles 160 million
    packages a year
  • RFID program manager Trevor Peirce
  • 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.
  • "This is amazing technology when you see it
    working, and it's all fine-tuned."
  • CIO Steve Bandrowczak
  • "RFID clearly can help customers by reducing
    inventory cycles, reducing lead times."

  • Reusable supply chain assets often seem to sprout
    legs and walk off on their own.
  • Air Canada used an innovative RFID system from
    Scanpak to slash unexplained losses and improve
    food cart utilization globally

  • In Singapore and Helsinki DHL tested it in
    anticipation of tracking the 160 million packages
    it ships annually.

  • Managing more than 50,000 inbound freight
    containers and 30,000 outbound trailers annually
    is a logistical nightmare.
  • But NYK Logistics has found a truckload of
    savings by using an RFID yard-management system.

  • 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

  • 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

  • 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.

  • Blind/vision-impaired
  • Compact reading device identifies contents of
    prescription bottle text-to-speech conversion
    software reads" the drug contents to the
  • Ensure patients take correct medication. Other
    information, such as dosage instructions and drug
    interaction warnings, may also be encoded.
  • RFID to manage movement of medications and
    containers through assembly and packaging lines
    to ensure medicines are put into correctly
    labeled packages.
  • Paperless audit trail provides high integrity,
    accountable supply chain.

  • RFID on patient wristbands provide tamper-proof,
    accurate identification for facility access
    control and security.
  • Many Alzheimer's disease facilities install RFID
    readers at all their doors to lock down and sound
    alarms automatically if patients try to wander
  • RFID application in the United Kingdom has
    eliminated opportunities for "baby-snatching" or
    kidnapping to occur on hospital grounds.
  • Tracking of medication dispensing, laboratory
    samples, and blood bags.
  • 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.

  • FDA (2004) is determining whether hospitals can
    use RFID t identify patients and/or permit
    relevant hospital staff to access medical records.

  • Lucile Packard Childrens Hospital uses RFID to
    track the location of its newest patients and
    ensure they wont be removed without permission.
  • The same system is being used to track assets.

Event Management
  • Guests at amusement parks and recreational
    facilities wear wristbands or ID tags with RFID
  • Control/limit access to certain facilities.
  • Track of patrons
  • e.g., children may become separated from parents.
    By presenting their ID tags at "location
    stations," separated individuals can be more
    easily located.
  • Cashless payment system
  • Cards/wristbands with RFID chips store prepaid
    monetary value.
  • Guests can recharge the card or wristband after
    the stored value has been depleted.

  • An RFID locating system gives parents visiting
    Dolly's Splash Country piece of mind, because
    kids are always tracked.
  • It also gives the park the opportunity to
    increase revenues by adding services, like
    cashless payments.

Library, Video Store
  • Library materials check-in or out without
    manually handling and orienting each item.
  • Theft detection.
  • Portable computers with RFID readers take
    inventory and find misfiled materials
  • RFID reader automatically detect missing
    materials and alert the librarian walking down an
    aisle of bookshelves.
  • RFID readers positioned at doorways to record
    transactions and detect shoplifted items

  • In Singapore's library system, all 9 million
    books, videos and DVDs are embedded with
    antitheft chips, allowing self-checkout.
  • "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," says
    library-board senior development manager Wong
    Tack Wai.

  • Britain's CD.id project shows RFID can be used to
    track individual music CDs through the supply
  • The real challenge is creating a system that
    benefits everyone, including the retailer that
    wants to prevent shoplifting.

  • 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 percentsaving tens of thousands of
    dollars in time spent looking for documents.

  • 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
  • Vendors who don't use EPC codes on pallets and
    cases by 2005 could risk losing business.
  • "By 2006, we'd like to roll it out with all our
    suppliers," says spokesman Tom Williams.

  • 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.

  • In London the same technology helps retailer
    Marks Spencer track gourmet dinners to prevent
  • Gourmet take-home foods, supplied to 200-plus
    stores by 300 providers.
  • 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.
  • 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

  • To reduce losses and boost efficiency, Woolworth
    has launched a pilot that uses RFID and other
    technologies to track products through the supply

(No Transcript)
Cashless Payment
  • Exxon Mobil's Speedpass program
  • Passive tag on key chain or active tag attached
    to car window contains unique identification
  • RFID reader detects the tag, turns on the pump
    and automatically charges the gas purchase to the
    driver's registered credit card
  • McDonald's now offer similar application to speed
    transactions at the counter and drive-thru

  • Carl's Jr. is testing ExpressPay
  • Faster lines at the cashier
  • Reduced backups at the drive-through window have
    brought in new customers.
  • "It's a no-lose situation," says Jason LeVecke,
    grandson of the chain's founder.
  • "It sure would be easier than fumbling around in
    my purse," says Tracey Serenka, who had her two
    sons Eric, 1, and Jason, 4--in tow at a Carl's
    Jr. recently.
  • Advantage over a credit card
  • 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.

  • RFID badge and tracking systems ensure employee
    security and safeguard corporate property.
  • 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.
  • Smart labels can also be applied to computers,
    furniture, files, and other objects for asset
    tracking and theft deterrence.

  • When its RFID luggage-handling system goes online
    in January, the Hong Kong Airport expects to
    lower labor costs, increase capacity and improve

Transportation Management
  • Drivers pay tolls without stopping at toll roads
    and bridges
  • 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.
  • Drivers may either receive a monthly bill or have
    the toll debited from a prepaid value stored on
    the transponder.
  • Similar technology is used in public transit to
    collect bus and train fare from prepaid passenger
    fare cards.

  • 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.
  • Octopus Card (Hong Kong) for mass transit.

  • Hotels, restaurants, and entertainment facilities
    can print and encode tickets and guest
    identification or membership cards.
  • The RFID card can be used for cashless payment,
    as a room key, and for access control to the
    health club and other facilities.

  • 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.
  • The system could be used as a loyalty program.

  • Calipatria State Prison in California
  • Monitors guards and inmates with TSI PRISM, a
    tracking technology using RFID wristbands that
    look like large diver's watches.
  • The surveillance curtails violence.
  • 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.

Animal Tracking
  • More than 50 million pets worldwide are tagged
    with RFID chips.
  • At least 20 million livestock have RFID tags to
    follow them for possible disease breakouts.

Asset Tracking
  • Within months of deploying RFID to keep tabs on
    its IT equipment, Colorado's vast El Paso County
    expects to soon recoup its investment

  • Large organizations have a hard time tracking
    assets, like laptops.
  • Pilots at one of the largest US government
    agencies, the Social Security Administration,
    prove RFID and creative thinking can save money.

  • The biggest user of RFID today
  • U.S. military has plowed 272 million into RFID
    asset tracking in Iraq.
  • 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.

  • DOD tracks humans with RFID
  • 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.
  • By scanning the wristbands, medical personnel
    could access treatment and track patients in a
    central database.
  • "In Iraq the real challenge was tracking
    noncombatants, but ultimately we hope every
    soldier will have an RFID tag," says Lisa
    Mantock, president of Texas-based ScenPro, which
    developed the software.

Arts and Entertainment
  • Several museums in Rotterdam are using RFID to
    reduce the cost of tracing the movements of works
    by Rembrandt, Renoir, Picasso and other masters.
  • And for the past two years, Oscar-goers have been
    screened and tracked by RFID.

  • RFID embedded in Michelin tires (2003) for tire
    tracking in compliance with U.S. Transportation,
    Recall, Enhancement, Accountability and
    Documentation (TREAD) Act.
  • Seismic sensors may be read using RFID
    transceivers for remote data collection.
  • RFID to track cadavers.

Expiration Dates of Food in Refrigerator
  • With RFID, the family fridge will tell you when
    the milk is spoiled or youre out of butter. In
    the store, your grocer will know all. A tag will
    help you find Fluffy too


Privacy Issues
  • RFID has the potential to be the most invasive
    consumer technology.

  • Katherine Albrecht, founder of New
    Hampshire-based CASPIAN (Consumers Against
    Supermarket Privacy Invasion and Numbering)
  • Her grocer scans her credit card at the bottom
    of her purse and tracks her around the store
    recording her selections.
  • Police come knocking after tracing an RFID-tagged
    soda can found at a crime scene to her credit
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