FSEU_W01_Harmon_RFID.ppt

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From Black Magic to Black Ink on the Bottom Line
http//www.autoid.org/presentations/fseu2001_W-01.
htm

• Craig K. Harmon - Q.E.D. Systems
• 17 October 2001
• Frontline Solutions - Amsterdam

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Craig K. Harmon President - Q.E.D.
SystemsVisit our web sites http//www.qed.org
and http//www.autoid.org

• Standards Development and Data Collection
  Education, Consulting, Systems Design
• Chair, ANSI NCITS T6 (Radio Frequency
  Identification) - ANSI NCITS 2561999, 2001
• Past 2-Term Chairman U.S. TAG to ISO/IEC JTC 1/SC
  31/WG 2 Data Structure
• Vice-chairman (Acting Chair) U.S. TAG to ISO/IEC
  JTC 1/SC 31/WG 4 RFID
• Chair, ANSI MH 10/SC 8/WG 4, RFID for Returnable
  Containers
• Senior Project Editor ISO/IEC JTC 1/SC 31/WG 4/SG
  3 RFID- Air Interface
• JTC 1/SC 31 Liaison Officer to the International
  Telecommunications Union (ITU-R)
• JTC 1/SC 31 Liaison Officer to the International
  Air Transport Association (IATA)
• JTC 1/SC 31 Liaison to the European
  Telecommunications Standards Institute (ETSI)
• ISO TC 104 (Freight Containers / RFID) Liaison
  Officer to JTC 1/SC 31
• USA Expert and Project Editor to ISO TC 122/WG 4
  7(Package Labeling)
• USA Expert IEC TC 91 (Packaging of Electronic
  Components)
• Chairman Project Editor, ANSI MH10.8.2 (Data
  Application Identifiers)
• Project Editor, ANSI MH10.8.3M (2D Work Group)
• Charter member, AIDC 100
• Vocabulary Rapporteur to ISO/IEC JTC 1/SC 31
• UCC Industrial (ICAC) and Shipping Container
  Label Committees (SCMLC)
• Project Editor, American Trucking Association
  (ATA) ADE Work Group
• AIAG Bar Code, Applications, 2D, Tire,
  Returnables, and RFID Committees

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RFID will soon replace bar codes!!!
NOT!!!
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Are Standards Required?
Application Identification Courtesy of Venture
Development Corporation
Note 1 VDC characterized Yard Management as an
Asset Management application. The author
believes this to be a supply chain application.
Regardless of classification, a standard is
needed (and is either existent or in
process) Note 2 VDC characterized WIP tracking
as a supply chain application. Except for
Kanban-like applications, WIP does not require a
standard. Note 3 It is this authors opinion
that the standard for baggage tagging has not yet
reached its Gestalt.
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What Needs but Does Not Have

• Point-of-sale
• Transactions
• Customer Recognition
• Smart EAS
• Self Check-out
• POS Check-out
• Supply Chain Management
• Pallet Tracking (ANSI MH10.8.4)
• Single Item Tracking (should probably use the
  same as xx Check Out)
• Reusable Container Tracking (ANSI MH10.8.4)
• Box ID (should probably use the same as xx Check
  Out)
• Parcel Delivery
• Secondary Container Tracking (ANSI MH10.8.4)

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Instant CheckoutA Dream Come True??
Chip to remove shopping blues Post-Courier,
January 1994
1.5 electronic bar code announced San
Francisco Chronicle
Tiny microchip identifies groceries in
seconds. Chicago Tribune
Checkout in one minute The Times, London
Scanning range of four yards NY Times
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POS - Check This Out

• You can get cash, fill the gas tank and zip
  through tollbooths - all without waiting for a
  live person to help you. What's next, scanning
  your own groceries?
• Yes, and soon. Do-it-yourself checkouts are
  popping up in APs and Krogers nationwide.
  (Weight sensors and lurking managers keep
  customers honest.) By year's end, you'll be able
  to bathe in that blue light while you ring up
  your own stuff at 1300 Kmart stores. Chicago
  McDonald's diners can pay for McMeals without
  forking over money they simply wave a Speedpass
  over a special reader, and then wait for the
  credit-card bill. And some airlines now let
  passengers check themselves in - giving new
  meaning to "Coffee, tea, or me?
• Tests show that people like the do-it-yourself
  services. It's a guarantee that the customer -
  that's you - is always right.
• September 2001 issue of Reader's Digest, Only In
  America, Page 20

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Parcel Delivery - 27 August 2001

• The U.S. Postal Service and FedEx Corp. today
  begin a joint operation aimed at providing more
  consistent and reliable delivery.
• Under a seven-year agreement reached in January,
  FedEx Express will provide air transportation for
  most of the USPS' Express Mail, Priority Mail and
  First-Class Mail that cannot travel solely by
  surface postal services.
• The shared network expands the size of the USPS'
  air fleet and changes the fleet's nature,
  bringing efficiencies that will save money and
  increase service performance.
• FedEx Express is providing about 3.5 million
  pounds of airlift capacity daily. The USPS will
  have access to 770 FedEx aircraft. There are 338
  jets, of which 288 are wide bodies. FedEx
  aircraft are carrying mostly unitized shipments,
  presorted by the postal service into sacks,
  trays, tubs or containers. Many shipments are
  being sent via FedEx aircraft that are usually
  idle during the day.
• During the seven years of the deal, the USPS
  expects to save about 1.3 billion in air
  transportation costs and more than double the
  market reach of its Express Mail next-day and
  Priority two-day services.
• DM News based on USPS Release No. 01-074

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Application Requirements?

• How far?
• How much?
• How fast?
• How many?
• How costly?

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How far?

• What is the application need for distance between
  tag and reader?
• Is farther better?
• Read Distance vs. Write Distance
• Can the application use active (battery powered)
  tags?

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How much?

• How much data is needed to be on the tag?
• How much data is needed to be transferred over
  the air interface?
• Unique tag ID, especially closed systems
• Portable data file, for mission critical
  information

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How fast?

• Amount of data from tag to reader and read to tag
  in what amount of time?
• Is the tag moving in relation to the reader?
• A function of frequency (data transfer
  speed),amount of data transferred, and speed of
  tag movement

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How many?

• How many tags will be in the readers
  field-of-view (FoV) at the same time?
• Different arbitration algorithms support
  different numbers of tags
• If only one tag is in the field, no arbitration
  algorithm is required, but the system needs to
  define what happens when more than one occurs

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How costly?

• What is the cost of the tag?
• Can the tag be re-used?

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Comparison of Non-Battery Powered Tags
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Antenna Length
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RFID Global Compatibility
Note 1 CEPT Recommendation 70-03 Annex 1Note
2 Proposed CEPT Recommendation 70-03 Annex 11
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Performance
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Infrastructure Cost
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Other Notable Features
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Applications / Frequencies
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Return on Investment

• Which has the greatest net benefit to your
  companys bottom line
• A new order for 1,000,000.00
• A cost savings of 50,000.00
• ROI Ratio of invested capital and the revenue
  (cost savings) resulting from the investment
• 3 Year ROI
• (net benefit year 1 / (1discount rate) net
  benefit year 2 / (1discount rate) net benefit
  year 3 / (1discount rate)) / initial cost
• So if the initial cost was 10,000, your annual
  benefits minus annual costs are constant at
  5,000 for the next three years, and the discount
  rate is 10, your 3-year ROI would be
• (5,000 / (1 .1) 5,000 / (1 .1)2 5,000
  / (1 .1)3)/10,000 124
• ROINow! http//www.cioview.com/products/index.htm

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The Benefit of ROI Analysis

• Shortening the Purchase Process
• Building Consensus within Your Company
• Establishing a Rational Vendor Selection Process
• Standardizing the Purchase Process
• Focusing on the Business Issues
• Gaining Senior Management Support
• Establishing an Historical Record
• Sleeping at Night

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Payback Period

• Initial Cost / Annual Net Benefit
• From Manual to Automated 6 months
• From Bar Code to RFID Longer

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Modeling

• Process Model
• What is the process today
• What is the proposed process
• Data Model
• What data is captured today
• What data is proposed to be captured
• Cost Model
• What is the cost of the process today
• What will be the cost of the proposed process
• What is the cost of the initial investment
• What is the recurring cost of the investment

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Benefit
Payback
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How to Evaluate Your Needs

• Identify software requirements
• Will the new RFID solution integrate with legacy
  system software and solutions
• Must new interface software be developed
• What type of data formats must be supported
• What communications protocols must be supported
• How must the current software change to
  accommodate the advantages of write technology?
  
• Build synergies by expanding software to add RFID
  capabilities to current solutions

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How to Evaluate Your Needs

• Identify hardware requirements
• What will be identified, tracked, located
• What read distance and field of view (FoV) is
  required
• How many tags in the FoV at the same time
• What amount and type of data will be stored
• Must data be updated
• Will tags be moving and how fast
• What are limits on tag size, shape, and
  orientation
• Will tags be disposable or reused
• Will tags be operating in cold, wet, dirty, hot,
  steamy, muddy, dusty environment
• What are regulatory constraints in the nation(s)
  of use

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How to Evaluate Your Needs

• Determine if RFID meets the need and if
  implementation is economically viable
• Can it help improve efficiency
• Can it help improve productivity
• Can it reduce operating costs
• Can it reduce labor costs
• What is the infrastructure installation cost
• What are the recurring costs associated with the
  solution
• Do the investment and variable costs of the
  solution meet the customers business model

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How to Evaluate Your Needs

• Identify system requirements
• Are there security needs
• What are the future needs of the system
  infrastructure (expandability)
• Is an open system required (will trading partners
  share data on the tags)
• Choose a technology to fit the need
• Choose a reputable company
• Research the recommended solution
  (standardized product?)

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Vendors
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Site Survey

• Identifies "dead spots" (if any)
• Optimizes location of antenna
• Identifies interference (if any)

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Vendor Questionnaire

• Does system cost include installation and
  training?
• Does the technology work in all of my locations?
• Does vendor handle licensing (if required)?
• How much on-going maintenance required for the
  system?
• How easily can system be expanded?
• How fault tolerant is the system?
• What is the tags battery life (if active tag)?
• What is the effective response time?
• How many tags, access points, antennas, and other
  system components can the system support?
• How easy easy is it to modify terminal screens?
• How does the system handled connectivity to
  current and future networks?

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Lads, Dads, Granddads
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???
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Thank You!
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