Radio Frequency ID (RFID):

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Radio Frequency ID (RFID)

• Brian E. Mennecke
• Deans Faculty Fellow in MIS
• Associate Professor
• Iowa State University
• College of Busiess

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Why is RFID a relevant technology for research
and practice?

• RFID has the potential to significantly change
  how objects are tracked and managed throughout a
  business process or within a business supply
  chain

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How is RFID unique?

• RFID is a unique technology because
• It can be used to identify objects and store
  information about the object in question
• Bar codes can store limited amounts of
  information about an object
• RFID can be used to store vast amounts of
  information
• It can be used to accurately locate and identify
  objects from a distance using RF signals
• It can be used to detect and read objects that
  are not in line of sight

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RFID Technology

• Conceptually somewhat similar to bar codes in
  that they are used to identify and track objects
  of interest to the organization

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RFID Technology Overview

• Transponders The tags themselves
• Interrogators Antenna and transceiver units
• Software and Information Systems

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An RFID Tag
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An RFID Tag Explained
SUBSTRATE
ANTENNA
CHIP
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RFID Technology Active vs. Passive Tags

• Active Tags
• Catch the attention of the RFID reader by sending
  out a signal
• Function with battery power (a battery is either
  connected to or built into the tag)
• Can be detected over a greater distance
• Are more expensive (due to the cost of the
  battery)
• Passive Tags
• Alert the tag to communicate through a reader
  when the readers signal is detected by the tag
• Communicates without battery power (giving them
  essentially unlimited life)
• Derives power from the readers electromagnetic
  field

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RFID Data Collection Process
Enterprise System
RFID Tag
RFID Reader
Middleware
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The Process in Context
Source Forrester Research
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Frequency Differences
RFID Smart Cards
RFID Item Tags
RFID Item Tags
Bio Tags
FM and TV
AM
Radio Toys
10khz
100khz
1mhz
10mhz
1000mhz
100mhz
2.4ghz
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Frequency Impact

• Lower frequencies have less range, yet penetrate
  fluids (biomatter) better
• Higher frequencies have better range, yet are
  easily blocked by fluids

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High Frequency Transponders
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Low Frequency Transponders
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Systems Effected

• ERP
• Supply Chain Systems
• EDI Systems
• MRP Systems
• Manufacturing Systems
• Data Warehouse
• End User Applications

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RFID Applications

• Just a few applications that already exist
• EZ Pass Toll Systems
• Pet identification technology
• Inventory management (usually pallet level)
• Truck routing and management
• Meat traceability
• Others?

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So, Why the Push to RFID ?

• Key Industry Drivers Leading Us Toward RFID
• Mandates such as Wal-Mart and the DOD
• Industry Trends for Supply Chain and
  Manufacturing Management
• Issue Pertaining to Process and Quality Control
• Government Regulations

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Mandates Wal-mart

• On June 11, 2003 Wal-Mart CIO Linda Dillman
  announced their EPC (Electronic Product Code)
  initiative.
• Wal-Marts top-100 suppliers have until the end
  of 2006 to label all cases and pallets with RFID
  (Radio Frequency Identification) tags.
• Wal-Mart set January 2005, as the target for its
  top 100 suppliers to begin placing RFID tags on
  cases and pallets being delivered to Wal-Mart
  stores in the Dallas/Fort Worth metroplex area

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Mandates Department of Defense

• On Oct. 3, 2003, Michael Wynne, the Acting Under
  Secretary of Defense, announced that militarys
  plan to require suppliers to use active and
  passive RFID tags on shipments to the military by
  January 2005

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Why All the Mandates?

• Q Why do we see major players like Walmart and
  the DOD mandating the use of RFID?
• A Industry trend in supply chain and
  manufacturing management for greater integration
  between partners
• Increase process and quality control within the
  manufacturing process
• Interorganizational sharing of data and process
  management

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Industry Drivers

• Process and Quality Control
• RFID enables a number of process management and
  quality control innovations through real-time
  tracking
• Inventory expiration management
• Product providence and verification
• Quality improvement
• Employee management and monitoring
• Just in time manufacturing and delivery

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Interorganizational Sharing of Data

• Data sharing leads to a number of benefits to
  members of the supply chain
• Inventory information about items, quantities,
  and locations can be managed and monitored
• Scheduling, transportation, and logistics can be
  streamlined, coordinated, and tuned
• Information about product demand can be monitored
• Shelf-space can be monitored more precisely
• Retail inventory can be monitored and adjusted
• Customer service can be improved

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One More Latent Driver

• Government Regulations and Certification
• Food safety
• BSE
• E-coli (Escherichia coli O157H7 )
• Source Verification
• Farm
• Region
• Country of Origin
• Product and Geographic Branding
• Parma Hogs
• I-80 Beef

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A Case in Point RFID in Meat Processing
Question Can Meat be traced to the source?
Yes, its already being done
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RFID in Meat Traceability

• Currently, most meat in the U.S. is not tracked
  through the production process
• It is primarily marketed as a commodity
• Most processing plants are not designed to track
  meat products
• RFID has the potential to enable flexible
  manufacturing and support animal and meat
  traceability

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Technology in the meat production chain

• However, RFID technology has the potential to
  enable identification of the product through the
  production chain

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RFID is Integral to Traceability
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Users of RFID
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Where Do Benefits Arise?

• Compliance and Service
• Achieve or retain preferred customer status
• Meet or exceed customer specifications
• Internal Process Efficiencies
• Labor efficiencies, monitoring, and control
• Security
• Supply Chain Integration
• Transparency of supply chain to management
• Information integration and flow

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Where is it going?(and how fast will we get
there?)
Item-Level Applications
Case-levelApplications
Feasibility
Pallet-levelApplications
Now
4 years out