Radio Frequency Identification TechnologyApplications

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Radio Frequency Identification Technology/Applica
tions

• Presented by
• MICHAEL OHANIAN

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INFORMATION SOURCES

• Aim Global RFID Organization
• RFID Connections Newsletter
• RFID Smart Labels USA Westin Copley Place,
  Boston March 27-30
• RFID Handbook by Klaus Finkenzeller
• Shrouds of Time A History of RFID Systems by
  Dr. Jerry Landt
• RFID in the Enterprise
• RFID Applications, Security and Privacy
• RFID Journal

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• Nothing great was ever achieved without
  enthusiasm
• by Ralph Waldo Emerson
• We have a great many developments to look forward
  to, history continues to teach us that
• Exciting times await those of us committed to the
  pursuit of advancement in RFID

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RFID Overview

• RFID market is forecast to reach 7.3B by 2008
• Reasons for the high growth
• Lowering tag prices
• Increased range and accuracy of readers
• Maturity of network infrastructure for easy
  deployment
• Applications capable of delivering increased
  value from an RFID deployment
• Supply Chain Management
• Network Operations

Source IDTechEx Ltd
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What is RFID Technology?

• RFID (Radio Frequency Identification) is a
  technology that involves tags that emit radio
  signals and devices called readers that pick up
  signals
• RFID tags consist of a chip for holding data and
  an antenna for communicating data through radio
  waves
• The reach of RFID signals depends on the kind of
  chip (frequency) but is usually from several
  inches to 200 feet
• EPC Code

Chip
Antenna
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What is RFID Technology?
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Real-time Automatic Identification and Data
Collection Technology Capabilities
Level of Automation
Other Satellite
GPS
Real-time locating systems (RTLS)
Two-way active RFID
Active beacon RFID
Short range passive RFID
Bar code
Very short range passive RFID
Manual entry
Cost ()
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Value is to Combine Technology Clusters Together
to Feed a Network
Integrated RFID-Based AIDC Networks
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A Typical RFID Network Includes
Applications for user interaction
Enterprise systems for coordinated decision
making
Local systems for site coordination
RFID readers
RFID tags (Active or EPC/Passive)
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Passive RFID
Example tag EPC Class 0

• Increased chokepoint size allows more variety
  of scenarios (e.g. identification of assets moved
  by forklifts)
• Limited data (EPC 96 bits)
• Time to collect multiple tags increases with
  number of tags to collect, reducing the allowed
  speed of assets
• Due to short range, multiple readers are
  required for good coverage in chokepoint
• Inexpensive

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Active RFID
TaggedAsset
To System
Reader
TaggedAsset
100m

• Long Range (100m)
• Data Rich
• Logic on tag
• Two-way communications
• Costs more

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RFID GOALS

• Faster Checkouts
• Improved in-stock positions
• Better information
• Faster payment
• Reduced inventory requirements
• Shipping errors

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BUSINESS VALUE

• The most important metrics in driving ROI
  include reducing inventory costs and cycle times
  along with improving fill rates and the
  visibility of information on production,
  delivery, shipment and maintenance.
• Supply Chain Software Yields ROI But It Takes
  Time, AMR Research

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Market Drivers - Wal-Mart
Capturing data is one thing using it to
improve business processes is the key. In order
to be successful data has to be in sync.
Wal-Mart RFID Guidelines
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The Business Challenge

• Trying to Answer basic questions
• Where is my shipment 4711?
• Which Network Card had gone down and what is the
  Serial Number Genealogy?
• Where is my inventory?
• How can I avoid fire fighting?
• How good is our customer service?

• Heterogeneous Systems
• Legacy Systems
• Islands of Data and Automation

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Imagine if you Can

• Visibility

• See into all your warehouses
• Receive real-time notification when a critical
  event occurs
• Track Materials in Transit
• Be alerted when a Service Plan is going to be
  delayed
• Measure how well your extended services are
  running

• Chain of Custody

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Key Drivers

• Increased Accuracy of information on location
• and status of good within the Network supply
  chain from manufacturing to final install
• Tighter inventory turns
• Lower defects
• Higher Network up-time
• Increased revenue, greater customer satisfaction
• Reduction of human labor
• Counts and recounts, lower operating expense

Goal Continuous 100 visibility of all assets
within an enterprise or supply chain with no
human intervention
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RFID NLM involves
Automated Identification Barcode, RFID etc.
Mobility
ERP, Network Support
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External Impact from RFID
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RFID and the Extended Supply Chain
RFID is being pervasively implemented throughout
the value chain.
Denotes RFID Benefit
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RFID and Manufacturing
The solutions will provide
end-to-end capabilities throughout the supply
chain, across organizational boundaries

and across multiple database platforms.

• Software applications will support highly complex
  manufacturing environments
• Dynamic modeling, monitoring and management of
  all resources
• Comprehensive decision management support at all
  levels
• Real-time synchronization amongst offices,
  manufacturing and supply chain partners
• Visibility into real-time status of production
  resources
• Real-time manufacturing applications to manage
  closed loop automation

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Technology Value Pyramid
Technology like RFID by itself cannot accomplish
anything without integrating with Data, People,
and Processes
Value From
Improved cost/revenue performance
Supply Chain Applications Partners Map
collaborative processes
Process

Work Flow vs. ERP Distributive Decision
making Behavior Education
People
Required Data Legacy and/or ERP
Structure/Format
Data
Which Technologies ? Mobility, RFID, Bio-metrics,
GPS etc.
Technology
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• In the end, it all comes down to competitive
  advantage and what makes sense in the business
  you are in.
• Its all about ROI and the balance of technology
  and business processes that support it.

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FINDING THE BUSINESS VALUE

• Application Requirements
• Business Processes
• Key Implementation Issues
• Mandates
• Standards
• Regional government regulations
• Generating positive business value ROI

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Extracting Business Value from RFID Data

• The management of the raw data generated by ththe
  RFID system and the manner in which it is
  delivered to the end-user is critical in order to
  marry the solution to the business objectives

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Characteristics of an Enterprise Class RFID
Platform

• Configurability
• Scalability for Future Growth
• 24/7 Availability
• Robustness
• Seamless Integration of real-world data and
  events with enterprise services
• Methodology for Selecting RFID apps
• Measuring process improvements

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Value Proposition Supply Chain Execution
Solutions for NLM using RFID

• Increase customer service levels
• Lower network disruptions
• Reduce obsolescence costs
• Reduce technician overtime
• Lower parts inventory
• Reduce service costs
• Better Service Asset Management
• Improved Spares and Strategic MRO Management

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The Flow of the Global Supply Chain in a
Perfect World
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The Flow of the Global Supply Chain in the Real
World
Email
Fax
Phone
EDI
Flat File
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Value of tightly linking the Physical Flow with
Information Flow

• Requires integration of automatic identification
  and real-time identification technologies
• Real time status and location enable visibility
• Visibility and transparency drives efficiencies
  and opportunities for all network participants

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Market Drivers - Regulation

• We must reaffirm the importance of knowing
  your customers and consider the overall
  air-tightness of your supply chain, from
  factory floor, to loading dock, to
  transportation, to our border. Every single link
  in the chain must be made more secure against
  terrorist attack.
• - Robert Bonner
• US Customs Commissioner

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EARLY ADOPTERS

• Focused on slap and ship compliance tagging
• Lessons Learned
• Next Phase
• Issues
• Drivers
• Road Blocks
• Pilot to Production Programs

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EPC PILOT PROGRAMS

• Streamline processes
• Improve efficiencies
• Reduce costs
• Companies document application success and
  failures
• White papers
• Case studies
• Tools available to EPC global US Members
• Shows industry how to walk the talk
• Properly deploy EPC technology

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Market Drivers - DoD Policy

• Implementation of RFID across the Department of
  Defense has the potential to greatly enhance our
  visibility into the supply chain, reduce supply
  inventories, and produce significant savings in
  both cost and manpower.
• - Michael W. Wynne
• Under Secretary of Defense

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Lesson Learned DoD Real WorldRFID Deployments

• Global asset Tracking TAV
• Web-based RFID/ITV
• Program life cycle support
• Coalition partners
• DLAs

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US DoD Total Asset Visibility Network
Defense and Commercial Defense Suppliers

• Total Asset Visibility Network
• Business Problem Poor visibility of
  containers/supplies to theatre. Lost manifests,
  manual inventory management, extreme safety stock
  requirements.
• Solution Global visibility network with RFID
  solutions for tracking materials. Integrated with
  complementary technologies (sensors, GPS,
  scanners, biometric, and handheld devices).
• Project Brief Open network, international (ISO)
  and technology standards-based system.
• Lessons Learned Total Inventory Visibility.
• Reduced containers and supplies used for recent
  gulf war by 90
• Reduced in-theater inventory from six months to
  seven days
• Estimated to have saved the US DoD over 350M in
  the first year of the Iraqi conflict

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Case Study Corpus Christi Army Depot

• Remanufacture Repair of Military Aircraft
• Business Problem Annual loss of parts/equipment
  is high. High labor costs searching for parts.
• Solution Asset Management Solution and RFID
  Network provide inventory and item level tracking
  of aircraft parts. Wireless Network of Readers
  record part arrival and departure at each shop.
• Project Brief Install facility-wide item
  location tracking. Provide location tracking
  through the repair cycle process. Integrated
  tracking of components and end items. Enhance
  repair cycle management and efficiency maintain
  database of repair history, cost of repair, and
  configuration.
• Lessons Learned Reduced annual investment in
  locating parts by tens of millions of dollars
  annually

• 250,000 Parts
• 151 Shops
• 3500 Support Equipment
• 7 Square Miles

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Case Study Woolworths

• UK Retailer - Closed Loop Distribution
• Business Problem High volume of theft. 10-15
  shrinkage in some product categories.
• Solution Asset Management solution tracks
  dolly's movement through DC to correct store, and
  GPS tracks vehicle on route. Driver uses
  handheld to confirm delivery.
• Project Brief UK Home Office sponsored
  initiative for theft prevention- included the
  integration of Bar Codes, Active RFID and GPS
  systems into a single supply chain visibility
  solution.
• Lessons Learned
• Successful tracking of goods between DC and
  stores
• Reduction in 70M in lost inventory
• Elimination of incorrect deliveries of dollies
  to stores
• Improved distribution minimized costs, reduced
  stock-outs, and improved top-line revenue goods
• 2003 European Retail Systems Award

• 200,000 Totes
• 16,000 Dollies
• 90 Stores in the UK
• 3 Distribution Centers

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Case Study National Railroad

• South African Railroad
• Business Problem Unable to provide wagons to
  customer for movement of materials. Poor
  visibility of assets.
• Solution Asset Management Solution and RFID
  Network provide data on status and location of
  rolling stock and their contents.
• Project Brief Pilot phase for specific cargo and
  tradelanes, moving to roll-out phase.
  Partnership with local companies and support from
  UN Conference on Trade and Development (UNCTAD).
• Lessons Learned
• Asset utilization improved by 400
• Customer Service/On-time Deliveries improved by
  150
• Improved security and almost complete elimination
  of 20M annual theft and loss problem.

• 75,000 Railcars
• 3600 Locomotives
• 19,000 Miles of track

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Our Customer Hasbro
East Longmeadow, CT Wal-Mart RFID compliance
Steve Marcolini, We were able to make a RFID
Vendor selection based on facts and figures
presented in excellent reports. We will be among
the first to comply to Wal-Marts mandate
Challenges New technology, uncertain which RFID
vendor to choose No testing facility to evaluate
different vendors
Our Solution RFID study and testing of different
vendors User requirements study and process
analysis RFID Tag testing of 10 different Hasbro
products Solution proposal for Pilot project
Benefits Thorough testing and analysis done by
experts Product analysis, conveyor tests, pallet
tests, shrink wrap tests Vendor selection based
on own product and pallet configuration
and Wal-Mart compliance requirements Short
turnaround time of the vendor selection Immediate
follow-up with RFID Pilot proposal
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Our Customer Thomasville Furniture Appomattox,
VA Target RFID compliance
Jeff Kuhnlein We are very happy with the
CATAMARAN solution. Odin and Shipcom did an
excellent job. We were able to successfully ship
our first RFID labeled products to Target, in
time
Implementation together with our partner
Challenges Unattended RFID tag validation at
shipping time to Target Complex exception
handling at stretch-wrap RFID read point 100
RFID reads required
Our Solution CATAMARAN application tailored to
customer needs User friendly solution, only few
hours operator training required Barcode and RFID
technology combined in one solution
Benefits Short project turn-around time Use of
Stack-lights to display RFID read status, alerts
to operators in case of exceptions Partner
approach brought both RFID technology expertise
as well as process and integration expertise
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Our Customer John Deere plants at
Waterloo and Fargo
RFID Container tracking
Robert Barrett We now have accurate, real time
information on the location and status of all
container shipments between our two plants. The
Catamaran solution was realized in only a few
weeks
Challenges Lack of information where containers
are between the John Deere Fargo and Waterloo
plants Automatic detection of direction of
container movements (inbound or outbound)
Our Solution CATAMARAN based RFID container
tracking application Automatic tracking and
recording of all container movements between the
plants Integration of 2 photo eyes per dock-door
to determine container movement direction
Benefits Accurate, real time information on
container shipments History of all container
shipments available in SQL database Easy
reporting capabilities Unattended operation, no
burden on operators
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Our Customers Ryder/Philips
Consumer Electronics/HP
Enterprise Best Buy RFID compliance solution
Frank Tikle After we implemented the Shipcom
solution for ourselves at Ryder we decided to
offer this solution to our customers as well. We
have created an Enterprise wide RFID solution
that can benefit each of our customers. Philips
and HP are the first ones to benefit from the
CATAMARAN solution.
Challenge As 3PL provider Ryder Logistics
needed one Enterprise RFID solution that can
serve all its corporate customers at different
locations. Integration with many different WMS
systems like PkMS, Warehouse Express through one
CATAMARAN-SeeBeyond connector
Our Solution One CATAMARAN Enterprise RFID
solution at Ryders corporate Data Center in
Atlanta that serves a number of local CATAMARAN
Edge servers at Philips CE sites at Roanoke, TX
and Groveport, OH and HPs site at Ontario, CA
Benefits One Enterprise solution for many
different customers, that can be replicated to
other customers in a short time Integration of
the solution with various WMS packages through
one SeeBeyond connector
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Our Customer Bell Sports Rantoul, IL Wal-Mart
RFID compliance
Challenges High volume RFID Label printing, very
complex RFID printer management of multiple
printers RFID Tag commissioning and
de-commissioning incl. RFID print and re-print
functions Batch RFID Pallet Tag
validation Combination of Barcode and RFID
technology
Jeff Gregg, VP CFO Our primary reason for
selecting Shipcom was the fact that CATAMARAN was
a configurable system with no predefined
workflow, which allowed us to construct our
workflow without coding.
Our Solution CATAMARAN-RFID solution tailored
to Bell Sports needs High performance round-robin
printing to multiple printers Flexible
commissioning/decommissioning with history kept
in SQL tables
Benefits In time delivery of RFID tagged
products to satisfy Wal-Marts RFID compliance
program Bell Sports Workflows could be realized
without coding Data integration with Bell Sports
backend systems Solution is scaleable and ready
for deployment to Bell Sports DC in York, PA
Implementation together with our partner
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Our Customer Sempra San Diego, CA Gas Meter
tracking with RFID (Pilot)
Jim Pilant We were successfully using CATAMARAN
already in 11 of our warehouses using barcode
technology. The addition of RFID capabilities to
CATAMARAN make it an even more versatile solution
Challenges No visibility of gas meters in the
supply chain from the Manufacturer (American
Meter) to the consumer. Sometimes gas meters got
lost (but were installed), resulting in lost
revenues for gas delivered to consumers
Our Solution CATAMARAN RFID solution to track
gas meters at each process gate, from American
meter to consumer. Integration with SAP for ASN,
Quality Inspection, receiving etc.
Benefits Full visibility of Gas meters in the
Supply chain, location of each meter known at any
time (American Meter, in transit, in QC, in
Stock, in transit, installed at
customer). Elimination of lost gas meters and
consequent loss of revenues Automatic
registration of all goods movements in SAP
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Our Customer CN-Rail Brampton Intermodal
Terminal, Toronto Asset tracking of Intermodal
equipment
Developed in partnership with Bell Canada
Challenges Whereabouts of intermodal equipment
(chassis, tires, wheel assemblies) is a
mystery. Inter-exchangeability of equipment
between competitors means new equipment goes out,
but old equipment comes back in
Our Solution CATAMARAN RFID application to
track chassis at the Brampton terminal. When
trailer enters or exit the yard, the movement
will be automatically registered The relationship
between the different equipment will also be
tracked, which tires and wheel assemblies belong
to which chassis Interface with CN-Rail backend
through IBM Websphere MQ
Benefits Exact location of intermodal equipment
can be tracked Avoid exchange of new equipment by
old equipment from competitors Automatic
registration in CN-Rails back-end system
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Our Customer CN-Rail

• Chassis tracking at Brampton Intermodal Terminal
  (BIT)
• Capture RFID reads from incoming chassis at Main
  Entrance
• Capture RFID reads from incoming chassis at
  Secondary Entrance
• Capture RFID reads from outgoing chassis at Exit
  
• Interface with CN-Rail SRS legacy system through
  MQSeries

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Our Customer HP Printer Scanner Plant in
Memphis

• Challenges
• New technology implementation, integration into
  MES and WMS,
• custom EPC labels

• Our Solution
• Interface to multiple readers
• Interface to stack and sensors
• Local EPC label printing
• Integration to multiple systems and
  technologies
• Optimized readers

• Benefits
• Integration into core processes
• Determine hardware selection for future
  roll-outs
• Validate RFID systems functionality
• Nearly 100 unattended process
• Shift from cost of sales benefits focus to
  internal ROI benefits focus

Reporting and Analytics
RFID Reader Integration
Provia Interface
WMS-MES Bridge
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Our Customer Philips Consumer Electronics,
Hungary Production Control and Inventory
Management
The Shipcom solution helped us to improve our
inventory systems, resulting in improved customer
satisfaction. - Hans de Fluiter, Senior
Industry IT Manager

• Challenges
• Inefficient goods receiving process
• Manual, labor intensive, paper based data entry
  in SAP of
• material transfers
• Low inventory accuracy
• Manual plant to plant transfers of FG goods to
  DC
• Lack of visibility at manufacturing floor

• Our solution
• Implemented for GR in Warehouse, GI in
  production and FG transfer to DC in
  Szekesfehervar
• Barcoded data collection and integration into
  Philips Central SAP system in Eindhoven.
  Connected to the MES system

• Benefits
• Error free and efficient goods receipt process
• Reduction of manual labor for GR and GI
  processes
• Increased inventory accuracy at factory
  warehouse and DC
• Real time data available in Warehouse and in DC
  stock, reducing
• stock-outs considerably, and improving delivery
  reliability
• Reduced training needs for operators

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Our Customer Medtronic Minimed Lean
Manufacturing Solution

• Challenges
• Paper based travelers to record manufacturing
  history
• No real time registration of material
  consumption
• No test data registration in SAP
• No visibility of scrap and rework
• High WIP costs, no visibility

We had a reduction of WIP in one month, saving
302,026 with full visibility. - Eric
Collins, Director of Manufacturing

• Our solution
• CATAMARAN v8.3 application, tailored to needs
• Easy integration into Medtronic SAP system
• Paperless, electronic travelers, all data
  captured in SAP
• Real-time registration of component consumption
• Barcoded data collection at each workstation

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MAJOR EUROPEAN USERS

• Tesco U/K
• Metro Groups Germany
• Marks Spencer UK
• Airbus France
• Carrefour France
• GlaxoSmithKline UK
• Worldwide Fruit UK
• Volkswagen Germany
• DHL
• RFID demo/test centers throughout UK

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RFID Test Centers

• Sun Microsystems Dallas, TX
• IBM Gaylord, TX
• Alien Technologies Dayton, OH
• Live demos of Gen 2 hardware, software, systems
  and business applications in a lab setting.
  Hands-on RFID workshop designed to give users
  detailed knowledge of upgrades in supply chain,
  warehouse, logistics, receiving, shipping,
  packaging and labeling systems.

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Hardware/Software/Systems Sources

• Alien Technologies Avery Dennison
• ThingMagic Paxar
• Microsoft Philips
• Cisco Systems Shipcom Wireless
• RFID4U IBM
• Intermec Technologie OAT Systems
• Symbol Tagsys
• Zebra RFID China Alliance
• Scan Source SAVI
• Tyco UPM Rafsec
• TI Samsys
• HP

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RFID TAGLOW COST MANUFACTURING

• 300 mm SEMICONDUCTOR WAFER FAB
• REDUCTION OF CHIP GEOMETRY 1u TO 65nm
• Low Cost labor locations
• Automated assembly/packaging/test
• Volume scalability

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HOT MARKETS

• Supply Chain Logistics/Transportation
• Asset Tracking/Inventory Control
• Medical
• Pharmaceutical
• Work-in-Process
• Government
• Transportation
• Retail

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JOB OPPORTUNITIES

• Sales
• Marketing
• Engineers
• Technical Support (Professional Services)
• Executive Level Managers

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FUTURE OUTLOOK

• Dramatic adoption increase in RFID activity in
  2006-7
• 5 Tag Is it feasible?
• Silicon vs. Plastic
• Integrated vehicle mount readers
• Single chip H/H Reader
• Sensors/RFID
• Biometrics
• Wal-Mart --- DoD mandates
• RFID Shared Assets
• Privacy Advocates
• Global Picture