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					Radio Frequency Identification (RFID)



                                          Los Angeles
                                          County
                                          OSB/PTAC



                   As presented by the
      Los Angeles County Office of Small Business and
         Procurement Technical Assistance Center
                         with the
              Small Business Administration
                     October 25, 2005
       Agenda

   What is RFID?
   Why RFID?
   RFID Policy
   Passive RFID Implementation Plan
   Steps to Implementation
   Benefits
   Next Steps
   What is RFID?
                                     RFID READER

 RFID technology is a means of
  identifying a unique object or a
  person using a radio frequency
  transmission


 RFID tags can be programmed to     RFID TAG



  receive, store and transmit
  information such as serial
  numbers, place of assembly or
  personal information such as
  healthcare records.
        RFID Technology and Tag Basics
RFID Systems have three main                   RFID tags are made up of three parts:
  components:
                                       1)   Chip: holds information
     The RFID tag with its own             about the physical object to
      data, functions and physical          which the tag is attached.
      characteristics                  2)   Antenna: transmits
                                            information to a reader (e.g.,
     The reader (fixed or portable)        handheld, warehouse portal,
                                            store shelf) using radio
      and antennae with their own           waves.
      functions and physical           3)   Packaging: encases the chip
      characteristics                       and antenna so that tag can
                                            be attached to physical
     The host with its own                 object.
      hardware, functions and pre-
      defined tasks

Tags have three components (see
  diagram) and use a variety of
  power sources:
     Active tags
       Passive tags
       Semi-passive tags
            RFID Scope/Standards

Active RFID – freight containers, air pallets
    SAVI 433 Mhz readers
    SAVI tags
    DoD tag data formats
    Suppliers rarely obligated to apply tags
Passive RFID – case & pallet (all items), item
  packaging (UID items)
    EPC std UHF readers
    EPC Class 0 & 1 std tags
       Migration to EPC UHF Generation 2 std
    EPC and DoD tag data formats
    Suppliers will be contractually obligated to
     apply tags
     Active RFID tags
 Has an onboard power source (battery) to
  be enable tag to send a very strong signal
  back to the reader
 Variety of frequency ranges – normally in
  UHF range
 Active tags have a signal range of up to
  300 feet
 Primarily used in transportation systems
  (rail, toll systems, trucking, container)
       Passive RFID tags
 DoD using EPCglobal Standards
 Do not have an on board battery – reflect
  data back to the reader
 Passive tags have a range of up to 20 feet
 Stores data that is pointer to information in
  the logistics database
 Primarily used in retails systems and
  transportation systems
       Semi-Passive RFID


   Essentially a passive tag with an onboard
    battery that powers environmental sensors
     Temperature,   shock, humidity

   Facilitates tracking refrigerated food items
   Holds more data than passive tags
        RFID Tag Types
 Read Only (Class 0):
   Information can only be read from an RFID
   device – programmed at manufacture
 User Programmable (Class 1):
   WORM - Write Once Read Many - Ability to
   initialize an RFID device outside of the RFID
   manufacturer’s facility after manufacture
              A Hybrid World

   Traditional Bar Codes
       Will remain the dominant auto ID technology in most mainstream
        applications
            Lowest cost, broadest applicability , huge infrastructure investment
   2D Bar Codes
       Adopted for value added applications
            Portable data files, supplementary retail coding
   RFID
       Will be increasingly adopted where non-line of sight, read/write,
        and multiple detection requirements are needed
        RFID Applications
   Highway Toll Collection – “EZ Pass”
   Vehicle Immobilizers
   Fuel Pump and Convenience stores
   Sports Timing
   Parcel Logistics
   Airline bag tracking
   Library Systems
   The Supply Chain
   Item Identification
   Warehouse Management
   Container Security
   Electronic Article Surveillance
         EPCglobal Inc
   EPCglobal is a joint venture between European Article
    Numbering International (EAN) and the Uniform Code
    Council (UCC)

   Leading an effort to create global standards for RFID use

   EPCglobal Inc is an open, worldwide, not-for-profit
    consortium of supply chain partners working to drive
    global adoption of the EPCglobal Network™. Using
    Electronic Product Code™ (EPC) and Radio Frequency
    Identification (RFID) technologies, the EPCglobal
    Network will provide for immediate, automatic and
    accurate identification of any item in the supply chain of
    any company, in any industry, anywhere in the world.

   EPCGlobal Inc’s website: http://www.epcglobalinc.org
Why RFID?
      Why RFID?
 SKU/NSN – 5.2 Million
 Orders – 26 million annually
 Contracts – 8200 a day
 One Day Value of Pipeline – 79.2 million
 Annual Value of Pipeline – 28.9 Billion
 Not a New Technology – But still in its
  infancy
 DoD can Direct How the Technology is
  Developed
        DoD RFID Goals

   Increase Warfighter/Customer Confidence in the
    Reliability of the DoD Supply Chain

   Improve Visibility of Information and Assets
    throughout the DoD Supply Chain

   Improve Process Efficiency of Shipping,
    Receiving and Inventory Management

   Reduce Order Ship Time and Customer Wait
    Time
              An Enabler to the Integrated DoD Supply Chain

Cases/Pallets are           Cases/Pallets are         Cases/Pallets are      Data is timely and
labeled with passive        read as they are          associated with        accurate via network of
RFID tags. Cases are        received and new          Active RFID to         linked readers allowing
associated to pallet        shipments are             provide TAV.           asset visibility along the
                            labeled. Orders are                              entire supply chain
                            verified for accuracy

  Manufacturers/                Distribution               Commercial/        TMO/Supply/           Customer
    Suppliers               Centers/Depots/TDCs              Military        Theater Depots
                                                             Carriers




                                        Timely and Accurate Data
      When shipments are                     The cases/pallets are            Customers have visibility of
      reconfigured a new RFID                automatically received           requisitions and are confident
      Tag is created for the pallet          with few disputes and info is    in the status provided by the
      and associated with cases              shared with the AISs.            system
      on that pallet                         Reconfigured shipments
                                             receive a new RFID Tag.
         Complementary use across the logistics supply chain




                                                    Transportation/S
Manufacturers/        Distribution      POEs/PODs        upply/        Customers
  Suppliers          Centers/Depots                     Theater
                                                      Depots/TDCs




           PASSIVE                    ACTIVE                   PASSIVE
         Implementation Dates

   Active RFID – Operational; Implementation Continuing




   Passive RFID
      DoD – Implementation underway now
      Suppliers – Effective Jan 2005 according to the
       Passive Supplier Implementation Plan published in
       July 30, 2004 policy
         Implementation Plan: Level of Packaging

                          Palletized Unit Load Tag
                        YES – January 1, 2005 - 2006



                  Pallet tag




           Exterior Container
          YES – January 1, 2005 - 2006                                   Shipping Container
                                                                        YES – January 1, 2005 -
                                                                         2006

        UID Item Unit Pack*
       No – January 1, 2005 - 2006
       YES – January 1, 2007
*If the UID Packaging is also an External Container or a Shipping Container, it will have an RFID tag.
       Implementation Plan: Commodities

Commencing January 1, 2005      Commencing January 1, 2006
                                   Class I – Subsistence &
   Class I Subclass –              Gratuitous Health & Comfort
    Packaged Operational            Items
    Rations & Packaged             Class III – Packaged
    Food                            Petroleum, Lubricants, Oils,
                                    Preservatives, Chemicals &
   Class II – Clothing,
                                    Additives
    Individual Equipment,
                                   Class IV – Construction &
    Tools, & Administrative         Barrier Equipment
    Supplies                       Class V – Ammunition of all
   Class VI – Personal             types
    Demand Items                   Class VII – Major End Items
   Class IX – Repair Parts &      Class VIII – Medical Materials
    Components                      (Includes Pharmaceuticals)
                 Passive RFID Implementation Plan for DoD Suppliers

January 1, 2005                                                                         January 1, 2006
                                           60,000 DoD Manufacturers/Suppliers
Classes of Supply:                                                                     Classes of Supply:
 II, VI, IX, I (PORs/MREs)              DFAR – new and revised contracts               Begin All Classes
Level of Tagging:                                                                      Level of Tagging:
 Shipping Containers, Palletized Unit          Classes of Supply                       Shipping Containers,
Loads, Exterior Containers                                                               Palletized Unit Loads,
                                                     Level of                            Exterior Containers
Ship to locations:
                                                     Tagging                           Ship to locations:
 San Joaquin, Susquehanna
                                                                     Ship to            Strategic CONUS DLA
                                                                    Locations            Depots, TRANSCOM
                                                                                         Facilities & Service
                              January 1, 2007                                            Maintenance Facilities

                              Classes of Supply:
                               All Classes
                              Level of Tagging:
                               Shipping Containers, Palletized Unit Loads, Exterior Containers,
                                UID Item Unit Pack
                              Ship to locations: All Locations
       Steps to Implementation



   Prepare the Distribution Centers

   Develop Contractual Requirements

   Develop the Data Transaction &
    Transmission Capability
  Distribution Centers Operational


DDSP and DDJC
          Data read and filtered through                Tag data is received in
          RFID Middleware.                              a database within DSS

                                           DSS
                          RFID       Tag
                         Middle-     Data
                          ware       Tag
                                     Data
                                     Tag
                                     Data

                                Tag ID passed through
                                integration software to DSS



 Read EPC Class 0 and 1 tags
          Contractual Requirement

    Proposed DFAR clause was released for public comment in the Federal
     Register. Public comment period closed June 27th 2005
    Two Major Requirements for Suppliers
       Passive Tagging at the case and pallet level in accordance with the
        Implementation Plan
       Advance Ship Notice (ASN)
    Specific Requirements:
       Data encoded on tag must be unique
       Passive tag is readable at time of shipment in accordance with MIL-
        STD 129P requirements
       Passive tag is affixed at the appropriate location on the specified
        level of packaging in accordance with MIL-STD 129P requirements
       Contractor shall use tag constructs in accordance with the details
        located at: http://www.dodrfid.org/tagdata.htm
       Contractor shall electronically submit advance ship notices in
        accordance with procedures at http://www.dodrfid.org/asn.htm
              RFID Data Flow
  Manufacturers/
    Suppliers
                        856

                      UDF FTP             WAWF
                    Web Entry


                                                  Wide Area
                                                  Workflow
                                   ASN




                                 RFID
                                Middle-     DSS
                                 ware

Distribution Centers/Depots
     DDSP and DDJC
                 Benefits Across the Supply Chain
                                                                             Transportation/
  Manufacturers/                 Distribution            POEs/PODs               Supply/              Customers
    Suppliers                   Centers/Depots                                   Theater
                                                                              Depots/TDCs




                                                      Improve Intransit and Asset Visibility
benefit
 Initial

 areas




                                          Improve Shipping/Receiving/Transportation Timeliness

                                           Improve Shipping/Receiving/Transportation Accuracy

                Reduced Costs      Improved Inv Mgt                              Improved Inventory Mgt
Other benefit




                                                         Improved Labor Productivity
   areas




                                                                                Reduced
                                  Pipeline Reduction                                             Reduce NISs
                                                                                Pipeline
                                                Speed Payment Process                           Eliminates dup

                                           Automated Receipt and Acceptance                    Automated Receipt

                                  Reduce Shrinkage                                  Reduce Shrinkage

                                         Demand/ Information Flow
            Top Five Considerations When
             Choosing an RFID Solution

   Consider the Audience

   Identify the uses for RFID technology

   Consider the value of an RFID System

   Identify the performance characteristics

   Determine if a dual system is needed
     Option 1: Pre-Programmed DoD Compliant Tag
     Solution #1

  Meeting the Requirement                   Tagging and Data
 Pre-encoded tags from tag OEMs       Tag case/pallet at pack/ship point
      EPC or DoD Construct                 Apply per MIL-STD-129P
      Case or Pallet Filter Value     Send ASN via WAWF
      Listing of Tag IDs provided/         Web-entry method/UDF
     Printed on tags                       WAWF guide for ASN/Tag ID
 EPC Members use EPC Mgr No.
 Others use CAGE Code
   Infrastructure and Cost                 Other Requirements
  Minimal investment                  Military Shipping Label (MSL)
      Existing IT resources                Existing requirement
      Internet connectivity                Apply per MIL-STD-129P
      Pre-encoded tag stock
  Lowest $$ investment
     Option 2: Pre-Programmed DOD Compliant Tag
     Solution #2

  Meeting the Requirement                    Tagging and Data
                                            Tagging and Data
 Pre-encoded tags from tag OEMs      Verify Tag ID with Hand-Held Reader
      EPC or DOD Construct           Tag case/pallet at pack/ship point
      Case or Pallet Filter Value         Apply per MIL-STD-129P
      Listing of Tag IDs provided    HHR inputs Tag ID into IT for ASN
 EPC Members use EPC Mgr No.        Send ASN via WAWF
 Others use CAGE Code                     WAWF EDI/UDF to WAWF
                                           Web-entry method/format
   Infrastructure and Cost                 Other Requirements
  Small investment                     Military Shipping Label (MSL)
      Existing IT resources                 Existing requirement
      Internet connectivity                 Apply per MIL-STD-129P
      Pre-encoded tag stock
      Hand-held reader (HHR)
      Reader software
  Low $$ investment
      Option 3: On Demand Internal Printing Solution #1

    Meeting the Requirement                     Tagging and Data
 Blank Class 1 tags from tag OEMs        Write Tag ID with Fixed or HHR
 Encode/verify tags with fixed or HHR    Tag case/pallet at pack/ship point
      EPC or DOD Construct                    Apply per MIL-STD-129P
      Case or Pallet Filter Value        Fixed or HHR inputs Tag ID into IT
 EPC Members use EPC Mgr No.            Send ASN via WAWF
 Others use CAGE Code                         WAWF EDI/UDF to WAWF
                                               Web-entry method/format
     Infrastructure and Cost                  Other Requirements
  More infrastructure investment         Military Shipping Label (MSL)
       Existing IT resources                  Existing requirement
       Internet connectivity                  Apply per MIL-STD-129P
       Blank RFID Cl 1 tag stock
       Fixed or Hand-Held Readers
       Robust read/write software
  Larger $$ investment
     Option 4: On Demand Internal Printing Solution #2

   Meeting the Requirement                    Tagging and Data
 Blank Class 1 tags in Label stock    Write Tag ID & MSL data with RFID
 Encode/verify tags & write MSL      equipped printer – print “smart label”
      Single “Smart Label“            MSL/Tag on case/pallet at pack/ship
      EPC or DOD Construct                Apply per MIL-STD-129P
      Case or Pallet Filter Value     RFID Printer inputs Tag ID into IT
 EPC Members use EPC Mgr No.          Send ASN via WAWF
                                           WAWF EDI/UDF to WAWF
 Others use CAGE Code                     Web-entry method/format
    Infrastructure and Cost                 Other Requirements
 More infrastructure investment          Can incorporate both fixed
      Existing IT resources             readers or HHR for additional
      Internet connectivity             functionality or capability
      Blank RFID Cl 1 tag stock
      RFID reader equipped printer
      Robust read/write software
      Printer controller software
 Larger $$ investment
         Option 5: Full RFID Integration

   Meeting the Requirement                          Tagging and Data
 Blank Class 1 tags in Label stock         Write Tag ID & MSL data with RFID
 Blank Class 1 tags                       equipped printer – print “smart label”
 Encode/verify tags & write MSL            Encode discrete item tags (as req) with
      Single “Smart Label“                fixed readers or HHRs
      EPC or DOD Construct                 MSL/Tag on case/pallet at pack/ship
      Case or Pallet Filter Value                Apply per MIL-STD-129P
                                            RFID printer & readers input Tag ID into IT
 Encode discrete tags with fixed or HHR    Send ASN via WAWF
 EPC Members use EPC Mgr No.                     WAWF EDI/UDF to WAWF
 Others use CAGE Code                            Web-entry method/format backup
   Infrastructure and Cost                        Other Requirements
 More infrastructure investment            Can incorporate both fixed readers or
      Existing IT resources
      Internet and EDI connectivity       HHR at portals or conveyor systems per
      Blank RFID Cl 1 tag & Label stock   company business processes
      RFID reader equipped printer (s)    Tag ID verification can be at conveyors,
      Fixed and HHRs                      printers, HHRs, or portals as required by
      Robust Edge SW and MW               the business process
      Printer controller software
      Servers for Edge SW and MW
 Large $$ investment
          For Your Information

   For further information that can assist you with compliance, visit:
    http://www.dodrfid.org
      DoD RFID Policy
      DoD RFID Supplier Implementation Plan
      DoD Suppliers’ Passive RFID Information Guide
      MIL-STD 129P(3) (Updated with RFID changes)
      Draft Wide Area Workflow (WAWF) Implementation
        Convention Guides
      Frequently Asked Questions (FAQ)
      Schedule of RFID Events where DoD RFID personnel will be
        speaking
   You can ask the team any RFID-related question through the
    following email address: info@dodrfid.org
   Supplier RFID Considerations
 Review DOD RFID Policy requirements
 Review your business processes
 Analyze shipments of material to DOD
    What material
    Quantity of material
    Destination of shipments
    Shipment configuration/type
 Select or design an option that fits your business
 Plan the implementation
 Select HW/SW vendors
 Roll-out implementation
 Coordinate with DOD Contracting Officials
 Collaborate with customers and suppliers
     Questions?

L.A. County OSB/PTAC
     323-881-3964
     www.laosb.org

				
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