Part 1 – RFID Technology & Application Areas

1. Sloan Information Period (SIP) RF.450Information Infrastructure Needed for Effective Utilization of RFID AutoID technologies Part 1 – RFID Technology & Application Areas Subject RF.450 @ E51-145 on Monday , Oct 24, 2005 at 2:30-5:30 PMAbstract:        This is an exploratory research SIP activity.  A high degree of interaction and student participation and discussion is expected.       In order to maximize the effective use of RFID, existing intra- and inter-organizational business processes must be re-thought and re-structured, and an appropriate Information Technology (IT) infrastructure must be established both across organizations and between organizations.Prof Stuart Madnick, <smadnick@mit.edu>, Room: E53-321, Ext: 3-6671. [Revised 10-23-2005. Latest version in http://web.mit.edu/smadnick/www/SIP2005/]

2. General Outline In this SIP activity we will discuss: • What is the RFID technology? • What are the possible/claimed benefits of RFID? • What are existing or likely information infrastructure deficiencies, - Especially in the areas of information exchange and data standards? • What are some IT research directions to address these problems? Advertisement: If you like this material, consider these courses for Spring 2006: 15.578 – GLOBAL INFORMATION SYSTEMS: COMMUNICATIONS & CONNECTIVITY AMONG INFORMATION (Tues & Thurs, 10-11:30; E51-376 – Primarily for Sloan MBA’s) 15.565 / ESD.565 – INTEGRATING INFORMATION SYSTEMS: TECHNOLOGY, STRATEGY, AND ORGANIZATIONAL FACTORS (Tues & Thurs, 10-11:30, E51-376 – Similar, but more technical)

3. Some RFID Hype RFID AutoID technology has received considerable media attention, innovation ideas, and controversy.  For example: "Study shows RFID benefits for retailers. Retailers can expect extensive inventory and labor cost savings from the adoption of radio frequency identification (RFID) technology, but some consumer product manufacturers will face higher costs and delayed benefits from adopting the technology. That is the conclusion of a new report on RFID and the Electronic Product Code (EPC) from global management consulting firm AT Kearney."( from http://logistics.about.com/b/a/042898.htm ) "Dvorak Slams RFID. It's bad news, claims John Dvorak. Those tiny radio transmitters that promise convenience and flexibility are just another path toward big brother domination. And it's going to get a lot worse. ( from http://ct.eletters.whatsnewnow.com/rd/cts?d=181-480-1-278-107259-23183-0-0-0-1 ) "A Manufacturer of soft drinks can identify with the click of a button how many containers of its soda cans are likely to reach their expiration date in the next few days and where they are located at various grocery outlets.( from CACM, August 2005, p. 103 )

4. What have you heard?Unusual or Intriguing Applications? • Bank of Nagoya installing RFID-based document management system • Automatically scan you when you entered classroom – so no need to sign “sign-in” sheet

5. The HypeCycle Peak of Inflated Expectations RFID Today! (?) Visibility Plateau of Productivity Slope of Enlightenment Trough of Disillusionment Technology Trigger Time Source: Jackie Fenn, Gartner Group

6. Some Sources Used for Background Materials (found with assistance of H. Zhu) • http://wwwx.cs.unc.edu/~sparkst/mobile/rfid/RFID.ppt • http://www.scansource.com/downloads/RFIDWebinar1.ppt • http://www.public.iastate.edu/~ext4mjm/MIS435/RFID-Pres.ppt • http://www.scansource.com/intermec/2004_webinars/Webinar_RFID_July_04.ppt • http://www.fiatech.org/Presentations/texasinstruments.ppt • http://cosmos.kaist.ac.kr/cs492a/midterm2/RFID.ppt • http://www.masoftware.org/download/05-20%20Linster.ppt • http://www.progress.com/progress/exchange/post_2004/technical_sessions/b1200.ppt • http://www.dodait.com/rfid/SummitApr04/Day1/05-RFID%20Primer-Kimball-DOD%20RFID%20Industry%20Summit%2029Apr%2004-V2.ppt(DoD slides)

7. Outline Background (2:35-3:55) • Introduction • RFID Technology • Comparison with Bar Codes • Example Applications • Focus on Supply Chain • EPC Tag and EPC Global • ROI Issues & Challenges • MIT Auto-ID Center Some of Sloan’s Research issues (4:05-5:25) • RFID IT Infrastructure • Challenges to “Data Synchronization” • Role of MIT’s Context Mediation Technology in addressing the “Data Synchronization” challenge • Discussion

8. Substrate Die attach Tag IC Antenna What is Radio Frequency Identification (RFID)? • Can be Passive or Active • Can be Read-only or Read-Write

9. Some Claimed Advantages of RFID vs. Barcode • No requirement for line-of-sight • Many tags can be read at the same time • High memory capacity if needed • Dynamic information carrier (read/write) • Robust and reliable • Performs in rugged, harsh environment • Cheaper in long term • No human intervention • Reader virtually maintenance free

10. PART 1a RFID Technology Primer Adapted from Dan Kimball, DoD Logistics AIT Office April 7, 2004

11. Pre-50’s 1950’s 1960’s 1970’s 1980’s 1990’s 2000’s • Over 350 direct - reference patents • 1926: Baird’s radio object detection patent • 1935: Watson- Watt’s radar patent • WW II: Radar • refined • 1973: Cardullo patent • Harrington • “Active & • Loaded • Scatterers” • 1952: Vernon • “Application of the Microwave • Homodyne” • MIT Auto-ID Center formation • 1975 LASL • releases • research to • public sector • EPC™ introduced • National & international standards emerge • 1966: Sensor- • matic & Check- • point EAS • LASL spins-off • IDX & Amtech • Smart shelves • 1991: AAR • standard • 1984: IDX/Allen • Bradley install • GM System • 2003: RFID prominent in Iraqi Freedom • Fairchild, RCA • & Raytheon • initiate pgms • Harris patent: “Radio • transmission • systems with • modulatable • passive • responder” • EPCglobal formed 2003 • 1994: All • US railcars • outfitted • 1977: Electronic • license plate for • motor vehicles • Multiple early • adopter • installations • 2004: TREAD • 1948: Harry • Stockman - • Communications • By Means of • Reflected Power • 1997:US Army • rolls out TC- • AIMS II • 2005: Walmart initial deadline • 1969: Mario Cardullo RFID concept • Vast number of companies enter RFID marketplace • 1979: RFID animal • implants RFID TIMELINE • 1st Toll Collection System - Norway • Texas, Georgia / Oklahoma Tolls • Wide-scale US Roll-out Adapted from Interaction Design Institute RFID Project Presentation - 2002 RFID: The History

12. Technical Aspects of RFID Standards? The RFID industry suffered from a proliferation of standards, according to Sue Hutchinson, director of product management for EPCglobal. EPCglobal had two GEN-1 standards, while ISO had two UHF air interface standards. (December 17, 2004) • Tag Power Source • Tag Components • Read - Read/Write • Anti-Collision • Who talks first? • Protocol Ultimate focus of this SIP activity

13. Class V tags Readers. Can power other Class I, II and III tags; Communicate with Classes IV and V. Class III tags:semi-passive RFID tags Class 0/Class I:read-only passive tags Class IV tags: Active tags withbroad-band peer-to-peer communication Class II tags: passive tags with additional functionality RFID Tags Come in Different Forms – Can be attached to almost anything • Tags can be attached to almost anything: • pallets or cases of product • vehicles • company assets or personnel • items such as apparel, luggage • people, livestock, pets • high value electronics e.g., computers, TVs • Many applications Primary focus

14. RFantenna Battery RF & Digital Circuitry Tag Types: Active • Active: • Standard: None, Mainly Manufacturers Proprietary Systems/Protocols • Range: Generally 300 Feet or less • Battery powered / limited life • Used Predominantly in Transportation Systems (rail, toll systems, trucking, container). • Characteristics: Tag with Internal Power Cell Mounted to Item or container/pallet/box, Interrogator Queries Tags, Uploads/Downloads Data. Does not transmit all of the time. Data Capacity Varies.

15. Digital Logic & Control Tag Types: Passive Memory(EEPROM) • Passive: • Standard: None/many, Mainly Manufacturers Proprietary Systems/Protocols (uses back scatter technology) • Range: Typically Measured in “Inches”, Working Toward “Meters” (dependant system layout, interference, etc.) • Used Predominantly in Retail Systems and Transportation Systems. • Characteristics: Small Tag Loaded with License Plate Data • Typically Mounted to End Item, Reader Captures Data as Item Moves Through Choke Point (door, pathway, frame, etc.). • Data Capacity Limited. RF antenna (power source)

16. Memory (EEPROM) RFantenna Battery Digital Logic & Control Tag Types: Semi-Active • Semi-Active or Battery Assisted Passive • On-board battery power source • Uses Passive Technology (no transmitter) • Greater range but higher cost (less than active) • Requires less power from reader • Finite life • Can use thin batteries (little change to form factor)

17. Tag Types - Read vs Read/Write • Read Only: • Information can only be read from an RFID device – programmed at manufacture • User Programmable • WORM - Write Once Read Many - Ability to initialize an RFID device outside of the RFID manufacturer’s facility after manufacture • Read/Write: • Information can be read from or written to an RFID transponder during the time it is presented to a reader/writer • Typically asymmetric read and write operating range

18. Anticollision Ability to communicate with several transponders simultaneously Important in longer range readers Must be implemented in the silicon of the RFID device Who Talks First Tag Talks First (TTF) After the tag is energized, it sends out a signal that says “I am here” Reader Talks First (RTF) As reader sends out energization signal it says “who is there” Problems With TTF you can get tag pollution but slower total read time Compatibility issues? Technical Considerations

19. Protocol • The method used to talk to a tag • Modulation method • Error correction • Anti-collision technique • Message format • Commands

20. RFID Operating Frequencies Low Frequency (125 – 134 kHz) Used in Access control, livestock, race timing, pallet tracking, automotive immobilizers, wireless commerce High Frequency (13.56 mHz) – Smart Labels Used in supply chain, wireless commerce, ticketing, product authentication Ultra-High Frequency – UHF (900+ mHz) Emerging technology, applications still in development Microwave (2.45 gHz) Still highly experimental, chipless technology

21. Worldwide Regulatory Environment No Global Solution – Standards are a Challenge

22. Desired Pattern Required Range Tag-to-Tag Spacing Data Rate Size Requirements Power Requirements Interference Issues Noise Environment Cost / Performance Tradeoffs Frequency Selection Issues

23. RFID System Considerations • Read distance requirements • Long read range • Short read range • Frequency • All frequencies have their pros and cons • ISO standards • Proprietary or standards-based • Government regulations • Varies from country to country

24. RFID System Considerations • Multiple Tag Reading in Same Field • Anti-collision • Sensitivity to Orientation • A single orientation or omni-directional • Hardware Set-up • Environment can affect performance • Tag Sensitivity to Metallic environments

25. Reader Characteristics • Stationary or handheld • Weather-proof or industrialized • Typical read ranges vary from a few centimeters to a few meters • Read Range is dependent upon: • Broadcast signal strength • Size of broadcast antenna • Size of transponder antenna • The environment – Metallic, Liquid • Multi-frequency readers

26. How compare to 2D barcodes

27. Barcode Examples – Many types UPC A Maxi-code Codablock PDF 417 Code 49 QR Code Data Matrix

28. Current Technology: Bar-coding UPC A code 18 digit alphanumeric code used for identifying flow of package and billing information Large database used to support this system – 18 terabytes Maxi-code Determined by the locations of bars around a central dot Contains information for the destination address of the package as well as weight and size specs. requires special equipment and a stable environment free from movement to obtain a read of the information

29. RFID vs. Bar-coding • Bar-coding Disadvantages • Code must be clearly readable • free from dirt, smudging or other damage • This is problem with the constant movement of packages • Code must be in a position that can be easily read by a scanning device • Optical lasers are usually used for scanning • Code must be within a short distance to be read • Typically within 3 feet • Only one code can be scanned at a time • Codes must be a reasonable distance apart • The use of RFID can eliminate many of the problems associated with bar-coding technology.

30. The Future? -- A Hybrid World • Traditional bar codes • Will remain the dominant auto ID technology for the foreseeable future • Lowest cost, broadest applicability, huge infrastructure investment • 2D bar codes • Will be increasingly adopted for value added applications • Portable data files, supplementary retail coding etc. • RFID • Will be increasingly adopted where non-line of sight, read/write, multiple detection offers real advantages

31. Implementations of RFID • Retail is the current driving force • Wal-Mart • Target • Others • Department of Defense • UPS • Other logistics firms

32. Things to consider • Price of tags • Currently about 10 to 50 cents each • If just $0.01, $250,000,000 to tag every P&G product • Chicken and Egg • Uses • Wal-Mart will be collecting existing data • Many possibilities • Technology matures • Cheaper and standards • Privacy (e.g., “RFID chips in world soccer tournament tickets questioned”) • All 2.9 million tickets for FIFA World Cup soccer tournament in Germany include an RFID smart tag

33. Pay for Gas at Exxon/Mobil with Speedpass Buy Burgers at McDonald’s Race timing at most major Marathons Check out library books with 3M system Get a Coke from a vending machine at the Olympics RFID in Action …

34. Toll tags, parking lot access Building access control, security Event access, ticketing Anti-theft for automobiles

35. Product authentication Chip wafer Manufacturing Warehouse, supply chain, logistics Livestock, asset tracking

36. Electronic Article Surveillance (EAS) Electronic Article Surveillance (EAS) • Already exists • RFID technology detects if an item is removed from a store without tag being deactivated • Amorphous magnetic strips • Destructible tuned circuits • But - Existing technology cannot uniquely identify goods • New RFID technology provides significant features: • Able to write SKU number into transponder • Automatic inventory with a hand held reader • Anti-collision mandatory for this feature • Cash registers can automatically ring up merchandise

37. PART 1b RFID – Supply Chain Perspective Adapted from im jae hyoun "A Manufacturer of soft drinks can identify with the click of a button how many containers of its soda cans are likely to reach their expiration date in the next few days and where they are located at various grocery outlets.” ( from CACM, August 2005, p. 103 ) • How easy / realistic is this? • What infrastructure must exist?

38. how it works… Adding Identity to Products Coke

39. how it works… Adding Identity to Cases: Assembly line applications

40. how it works… Reading Tags: Portal applications: Shipping validation & Confirm routing

41. how it works… • Savant • (middleware software for • EPC) • ONS • (Object • Naming • Service) • PML • (Physical • Markup • Language)

42. how it works… Efficiency in Distribution

43. how it works… Efficiency in Inventory

44. how it works… Overstocking and Out of Stock Eliminated

45. how it works… Consumer Convenience

46. Some Serious Challenges & limitations… materials and effect on signal

47. Supply Chain Reality It is happening …

48. Supplier VMI Contract Manuf. DistributionCenter Retail Flow of Goods RFID in the Supply Chain SC Visibility & Event Management SC Leader ERP EPC Data Management Infrastructure(Private/public) Who controls?

49. Repair Center Supplier VMI/Inbound Hub Manufacturing DC/ Outbound Hub Reseller/ Distributor Understanding RFID’s Potential Sample Supply Chain Returns Hub Warranty/Services Revenue Customer Chargeback Revenue Collection Out of Stock Brand Protection Shrinkage Counterfitting BOM Tracking Lot Tracking Operating and Handling Cost Shipment Visibility Comp. Inv. Visib. FGI Inv. Visib. Planning & Synchronization

50. Making a Case for RFID - ROI PART 1c Adapted from Greg Dixon Chief Technology Officer ScanSource