RFID RFID Group Number 5 Presentation Date 4

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RFID RFID Group Number 5 Presentation Date 4 Powered By Docstoc
               Group Number: 5
              Presentation Date:

            Group Members:
Katherine Hughes, Justin Behm, Alan Gilewski,
Robert Worth, Daniel Crucz, Michalis Kritikos
         Presentation Overview
   Introduction
   Business Applications
   Advantages of RFID
   Disadvantages of RFID
   Conclusion/ Recap
   Quiz and Questions
    Why is RFID important to you?
   Technology is continuously improving and
    changing the business world.
   Important to be aware of different technology
   RFID is used in our everyday world.
   RFID could one day be an essential part of your
    business or workplace.
              Goals to Achieve
   Detailed description and definition of RFID
   Make audience aware of various advantages of
    the technology
   Learn the various disadvantages of the RFID
   Discuss the business applications
   The future of RFID based on research and the
    team‟s opinion
RFID Stands For…

                   RFID Defined
   A technology which incorporates the use of
    electromagnetic coupling and radio waves to identify an
    object or person.
   Made up of several components embedded into
    business practices to improve and transform key supply
    chain processes.
   Provides a distinctive identifier for objects (similar in its
    purpose to bar codes or magnetic stripes on the back of
    credit cards).
    RFID must be scanned in order to retrieve the needed
       History and Development
   First Developed during WWII.
   Created from radar experiments.
   British needed to identify their own planes
    “friendlies” from French planes “foes”.
   Actual year of invention was 1948.
   For years after first development a great amount
    of research on RFID was done until it was
    actually used in commercial application.
               History Of Use

   After WWII security and safety was needed due
    to the use of nuclear materials, which lead to
    further developments in “tagging”.
   RFID started being implemented in the 1970‟s.
   During this time the cost of each tag was
    excessive and the use was very limited.
                RFID in the 1980’s
   The 1980‟s bought a great amount of development. In 1987
    Norway had implemented the first successful toll collection
   Toll systems were considered to be the breakthrough product for
   In 1981 railroads began implementing RFID as a solution for the
    environment of their industry. The railroads used RFID to keep
    track of rolling stock. The radio frequency was able to go a travel
    a longer distance, and had the ability to read through snow, fog,
    dirt, and direct sunlight. Before RFID the railroads were
    implementing bar code technology.
   In 1988 the main effort of RFID shifted to new applications to
    do things such as improve performance, reduce costs and reduce
              1990’s to Present
   From the 90‟s to the present RFID
    manufactures are in deep competition to be the
    company to sell the cheapest, smallest and most
    reliable RFID device.

    ( Business Applications Section will talk more
              about RFID in present use.)
        How Does RFID Work?

   RFID is comprised of three major components:

    ♦ An antenna or coil
    ♦ A transceiver (with decoder)
    ♦ Transponder (RF tag)
               Antenna or Coil
   The antenna emits radio signals to activate the
    tag and to read and write data into the tag.
   The antenna is the channel between the tag and
    the transceiver, thus it controls the data
    attainment and communication.
   The antennas are available in many different
    shapes and sizes. For example an antenna can be
    built into a doorframe in order to collect data
    from people walking through the door.
    Antenna and Coil Continued…
   The electromagnetic field, which the antenna
    produces, is constantly present when multiple
    tags are continually expected.
   If constant detection is not needed the field can
    be activated by a sensory device.
   Depending on the antennas needs you could opt
    to make it a handheld or a fixed-mount device.
   Often the antenna is packaged with the
    transceiver and decoder.
       Transceiver (with decoder)
   The reader releases radio waves in ranges from one
    inch to 100 feet or more. The range depends on its
    output power and the radio frequency used.
   When the RFID tag passes through the electromagnetic
    field it will then detect the reader‟s activation signal.
   At this point the reader will decode the data
    programmed in the tag‟s circuit.
   Finally, the data is passed to the host computer to be
          Transponder (RF Tag)
   RFID tags are the heart of the RFID system because
    they store the information that describes the object
    being tracked.
   Tags are classified according to their abilities:
        ♦ Active
        ♦ Passive
        ♦ Read-Only
        ♦ Write-Once
        ♦ Read-Write
                  Active Tags

   Contain a battery that runs the microchip‟s
   Tag is able to send a stronger signal to the
    reader due to battery.
   Allows a read range of about one hundred feet.
                 Passive Tags

    Passive tags contain no batteries.
    Passive tags get power from a reader.
    Readers send electromagnetic waves that
    produce a current in the tag‟s antenna which
    then powers the microchip‟s circuits.
   A passive tags read range is approximately thirty
                Read-Only Tag
   Read-only contain data such as tracking
   These tracking numbers are usually serialized
    and pre-written onto them by the tag
   Read-only tags are usually the least expensive
    because information can not be added onto
    them as they move through the supply chain.
        Write-Once & Read-Write
   Write-once tags allow a user to write
    information into the tag one time during the
    production. The information can be something
    like a batch or serial number.

   Full read-write tags allow for new data to be
    written to the tag as it is needed. These tags also
    allow for original data to be written over.
Business Applications
                Asset Tracking

   RFID tags applied to company assets which are
    stored away
   Companies then use the tags and RFID
    technology to locate assets when they needed
   The location of the assets are accurate within 10
   Think of our Libraries…
   RFID tracks library books that are checked out
    or in.
RFID Utilized in Manufacturing

   Manufacturing companies utilize RFID to track parts
   Work-in-Progress tracking made easier
   Reduce defects
   Increase of throughput
   Manage production of different versions of the same
   Assists in tracking part arrivals
   Follows parts along assembly lines
           RFID Used In Retail
   Assists in identifying which products need to be
   When shelf supplies are low store will be able to
    quickly identify where product is needed and
    where they will obtain the needed product
   Overall, allows for higher customer satisfaction
   Helps automate checkout lines
   Reduces line waiting times
             Payment Systems

   Helps speed up processes where payments are
   Most commonly found on toll ways
   Used in collecting tolls, which we know in
    Illinois as the IPASS system.
   More convenient for drivers and eases the flow
    of traffic.
   Mobil Speedpass
       Security and Access Control
   Companies use RFID to assist in limiting access of
    unauthorized personnel to information among other
   Confirms information is only being viewed by those
    who are allowed to view it.
   Added value to Electronic Article Surveillance
   Commonly used in stored as anti-shoplifting tool it
    signals alarm to go off.
   Control access to gates communities (ex: Crystal Tree,
    in Orland Park)
   Controls access in Airports (O‟Hare Airport)
    Case Study #1: Victory Land Group
   A supplier company for Wal-Mart
   Knew that it had to keep up with demand and competitors
   Implemented Electronic Product Code (EPC) and RFID smart labels
   Constructed a new distribution center with RFID capabilities
   Zebra and R4 Global Solutions, a leading RFID systems integrator
    worked with VLG on the implementation and since then has worked
    with a dozen Wal-Mart suppliers.
   Results:
    * VLG is able to go onto Wal-Mart‟s Retailer Link Supplier
         website to track the progress of its tagged merchandise.
    * VLG uses the information for its own planning.
    * Considering more ways to use RFID internally.
    * Began discussing RFID technology with its own suppliers
    Case Study #2: Federal Express
   Federal Express (world‟s largest express parcel delivery company)
   Delivers 3.2 Million parcels daily and operates over 42,500 vehicles
   Company‟s couriers use an automatic keyless entry and ignition system
    which uses RFID transponders embedded into a wristband.
   Results:
    * Personnel do not have to worry about juggling and keeping track of
          their keys when delivering packages
    * Carriers are more productive on their routes.
    * If wristband is misplaced, the RFID system can reprogram a new
          code within a matter of seconds.
    * When carrier places his or her band within 6 inches of the reader, the
          door will unlock, keeping all other doors locked in order to
          prevent unauthorized entry.
   Advantages of RFID

♦ Reductions in Costs
♦ Reduction in Inventory and Theft
♦ Improves Forecasting, Planning and
      overall customer experience
    Reducing Warehouse and Distribution/Point-
               of-Sale Labor Costs

   Sensors allow for easier tracking of inventory
    with high accuracy.
   Point-of-Sale transaction times reduced
   Fraud minimized with RFID-enabled products.
   Overall, need for human labor is diminished as
    adoption of product increases, saving on labor
       Reduce Inventory & Theft

   Accurate tracking of inventory helps maintain
    appropriate levels of inventory in stock.
   With theft accounting for losses equivalent to
    1.5% of sales, RFID keeps track of when or
    where an item went missing.
   Eliminating excess/missing inventory vital when
    trying to maintain a successful business.
Improve Forecasting/Planning and
 Minimize Out-of-stock Conditions
   Eliminating out-of-stock conditions is made
    easier with RFID tracking
   Predict with higher accuracy the current levels of
   Better prediction in location of incoming
   Maximize revenue
   Maintain high levels of customer satisfaction
    Improve Overall Customer

 Use of RFID and interactive kiosks
 can allow the merchant to extend
 offers to customers based on the
 contents of their carts.
Disadvantages of RFID

  ♦ Cost
  ♦ Collision
  ♦ Failure
                Cost of RFID

   More expensive than current technologies
   Cost of an RFID scanner is $500-$2000
   Current cost of an RFID tag is between 7¢-15¢
   Cost of active tag is $10-$50
   Barcodes cost less than 1¢ or around 3¢ with a
    security strip

   Signals can „Collide‟ when multiple signals are
    read at once.
   Those signals are either lost or are read with
   At times the collision goes undetected for long
    periods of time.

   Total failure of the tag or reader
   12%-15% of all tags fail in their first reading
   Reader failure is common and requires replacing
    the reader.
   Barcode failure is extremely rare

   RFID- Radio Frequency IDentification
   A technology which incorporates the use of
    electromagnetic coupling and radio waves to
    identify an object or person.
   Provides a distinctive identifier for objects
    (similar in its purpose to bar codes or magnetic
    stripes on the back of credit cards).
   Important Business Applications
    ♦ Asset Tracking
    ♦ Manufacturing Companies
    ♦ Retail Stores
    ♦ Payment Systems
    ♦ Security and Access Control
  ♦ Reduction in Costs
  ♦ Reduction in Inventory and Theft
  ♦ Improves forecasting/planning and overall customer
  ♦ Cost
  ♦ Collision
  ♦ Failure
        Importance to Our Lives
   RFID used in everyday living.
   Makes our lives easier (IPASS, Speedpass)
   Saves money and reduces theft to businesses we
    may work for currently or will work for in the
   Important to be familiar with and aware of
    current technology trends to keep a competitive
    advantage for ourselves and for our future
             Quiz Question #1
   What is not a type of RF tag?

    A.) Passive Tag
    B.) Read-Only Tag
    C.) Passive-Read Once Tag
    D.) Write-Once Tag
             Quiz Question #2
   What is not one of the major components of

    A.) Transponder (Rf Tag)
    B.) Alkaline Battery
    C.) Antenna or Coil
    D.) Transceiver (With Decoder)
             Quiz Question #3
   What is not one of the major disadvantages of
    RFID technology?

    A.) Collision
    B.) Cost
    C.) Reduction of Inventory
    D.) Failure
   The History and Development of RFID Technology. Online. 12 April 2008.
   A History of Development. Online. 13 April 2005.
   How RFID Works. Online. 2 April 2008.
   Leeming, Greg. RFID Overview. 8 September 2008.
   Technologies: RFID/ What is RFID. Online. 12 April 2008.
   Experts On Demand. 19 December 2005.,295208,sid63_gci1153220,00.
   What you need to know. September 2007. Transponder News. April 3, 2008.
   “Zebra and R4 Global Solutions make EPC compliance labeling fast and simple for Victory Land Group”
    Victory Land Group Case Study, Zebra Technologies. Nov 8, 2005
   “Security Access and Convenience for Express Parcel Couriers” Texas Instruments
    Incorporated. June 30, 2004.
       Bibliography Continued…
    What Every Internal Auditor Should Know About RFID. Knowledgeleader. June 2008
   The Ecosystem: What RFID Is. Online. Volume 09 Issue 03. 3 August 2005.
   What is RFID? Online. 2 April 2008.
   RFID JOURNAL The World‟s RFID Authority. April 2, 2008.
   Frequently Asked Question. RFID JOURNAL The World‟s RFID Authority. April 2, 2008.
   What you need to know. September 2007. Transponder News. April 3,
   Ilie-Zudor, Elisabeth; Kemeny, Zsolt; Egri, Péter; Monostori, László. THE
    September 2006. Computer and Automation Research Institute, Hungarian
    Academy of Sciences. April 3, 2008.

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