Raising the Bar[Code]:

Transcription

1 Raising the Bar[Code]: The Value of the EPCglobal Network and RFID Technology Edmund W. Schuster MIT Data Center Stuart J. Allen Professor Emeritus Penn State University David L. Brock MIT Data Center March 2, 2006 Corresponding Author

2 I. Prospectus Description The EPCglobal Network and RFID technology, initially developed by the Massachusetts Institute of Technology (MIT) and licensed in October 2003 to Global Standards I (GS1), holds great promise for transforming business through the use of lowcost, radio frequency identification (RFID) tags to improve information flow and productivity. Through the placement of tags on individual items, cases, and pallets, RFID Technology will provide instant two-way communication within supply chains by merging information with physical goods. The EPCglobal Network uses the Internet to transmit data gathered from RFID tags as well as a sophisticated information infrastructure designed at MIT. Recent manufacturing advances that include fluidic and vibratory assembly and printable circuits provide the prospect for drastically reducing the cost of RFID tags, allowing for a greater number of applications in business. An important outgrowth of the research at MIT is the Electronic Product Code (EPC) that allows for the unique identification of any object. The EPC has many advantages and will serve as an alternative to established bar code technology during the coming years. Our book will serve as a professional text that introduces the EPCglobal Network and RFID technology to a general audience in business, including directors and senior managers of companies. As such, the book will be a broad overview with focus on communicating concepts, structure, applications, and the importance of the technology. There will be reduced focus on technical details more appropriate for computer science or other publications. The writing is direct and typical of the business-oriented press with an emphasis on blending engineering and computer science principals along with a journalistic view of developments as RFID moves into wide-scale practice. 2

3 Researchers at MIT and managers in business believe that the initial adoption of RFID Technology will come from firms involved with logistics and supply chain management. This comprises a large subsection of American business, including both consumer and industrial goods manufacturing. The book includes information about how RFID Technology changes the supply chain and logistics practices for these firms. Since the EPCglobal Network and RFID Technology are approaching widespread commercial application, it is imperative that we get the book published to take advantage of this emerging trend. Wal-Mart, the Department of Defense, and the Food and Drug Administration have all expressed interest in various applications of RFID Technology. Because of this interest, and the substantial marketing effort initiated since 1999 by the MIT Auto-ID Center, the time is right for publishing a general book on the subject. Many believe the tipping point for wide-scale RFID applications will be mid Outstanding Features Our book concentrates on communicating the principles of EPCglobal Network and RFID Technology through our own experience in researching and developing the technology. This perspective is unique in that only a few have comprehensive knowledge rooted in practice. Readers of the book will benefit from many years of our collective experience. In this way, the book will provide readers with an effective means to learn about the technology and to understand how it will affect their businesses. Competition Research on RFID technology began at MIT in 1999, so it remains a new development. Others have worked with RFID Technology during the past twenty years, however, these efforts do not include manufacturing of low cost tags or the information 3

4 infrastructure and standards developed by MIT. Few high quality application papers exist in the literature. There are no academic or professional books on the subject specific to the MIT Auto-ID effort. Further, there are few books directed to a general audience that provide a single source of information about the potential of RFID Technology in practice. With detailed knowledge and hands-on experience in researching and developing Auto-ID Technology at MIT, we have an intellectual advantage over other authors in the area. Examples of competing books include: 1. RFID Handbook : Fundamentals and Applications in Contactless Smart Cards and Identification (Hardcover) by Klaus Finkenzeller Hardcover: 446 pages Publisher: John Wiley & Sons; 2 edition (May 9, 2003) 2. RFID and Beyond: Growing Your Business Through Real World Awareness (Hardcover) by Claus Heinrich Hardcover: 278 pages Publisher: John Wiley & Sons (March 18, 2005) 3. RFID Essentials (Theory in Practice (O'Reilly)) (Paperback) by Bill Glover, Himanshu Bhatt Paperback: 272 pages Publisher: O'Reilly Media, Inc.; 1 edition (January 1, 2006) 4. RFID Sourcebook (Hardcover) by Sandip Lahiri Hardcover: 304 pages Publisher: IBM Press (August 31, 2005) 5. RFID For Dummies (Paperback) by Patrick J. Sweeney Paperback: 406 pages Publisher: For Dummies (April 1, 2005) 6. RFID Field Guide : Deploying Radio Frequency Identification Systems (Paperback) by Manish Bhuptani, Shahram Moradpour Paperback: 288 pages Publisher: Prentice Hall PTR (February 8, 2005) 4

5 7. RFID : Applications, Security, and Privacy (Hardcover) by Simson Garfinkel, Beth Rosenberg Hardcover: 608 pages Publisher: Addison-Wesley Professional (July 6, 2005) 8. RFID Strategic Implementation And Roi: A Practical Roadmap to Success (Hardcover) by Charles C. Poirier, Duncan Mccollum Hardcover: 264 pages Publisher: J. Ross Publishing (February 28, 2006) 9. RFID (McGraw-Hill Networking Professional) (Hardcover) by Steven Shepard Hardcover: 352 pages Publisher: McGraw-Hill Professional; 1 edition (August 16, 2004) 10. RFID Journal From the website, RFID Journal is an independent, online daily devoted to one thing: educating business people about radio frequency identification and its many business applications. The Journal was launched on March 1, 2002, in the belief that RFID is an important technology that is ready for widespread adoption. Companies need a way of capturing accurate, real-time information about the products they make, move, and sell. RFID offers that capability, and while it has been too expensive for some applications, costs are coming down, standards are being adopted, and the capabilities of the products are improving. Apparatus The book uses a direct prose style. It includes actual case studies, a glossary, and an extensive bibliography. Business publications such as Barron s, The Wall Street Journal, The Financial Times, The Economist, Forbes, Technology Review and Business Week are included as part of the bibliography. A glossary of terms has already been assembled. The structure of the book comes from approximately 70 technical articles published by the MIT Auto-ID Center along with a number of articles published by the 5

6 authors. Though these articles will serve as a base, we wrote each chapter from scratch using the references. This book is not an edited proceeding. After publication of the book, we intend to prepare a set of PowerPoint presentations and class notes for two purposes: 1) To entice some adoption of the book by the academic market, specifically schools of business. 2) Instructor materials for a professional course on the EPCglobal Network and RFID Technology delivered by non-profit groups such as the American Production and Inventory Control Society (APICS) or the Council of Logistics Management (CLM). This might also be part of certification programs. In terms of length, the current manuscript is 63,000 words (base manuscript without glossary) with the option of adding six chapters (estimated to be another 16,000 words) by March 20, The book should be hardbound, with references numbered in the text and appearing at the end of the book by chapter. The current manuscript contains diagrams with some needing modification. Several pictures are also used. Audience The book will serve as a professional source, so the primary audience will be people in business. We anticipate that all disciplines of business will be interested in our book. Those working in logistics, operations, or supply chain management will be especially interested because these areas will be impacted first by RFID Technology. 6

7 The book is descriptive in nature; containing a strong narrative of technical aspects in clear prose. In this regard, the book is a translation of the meaning of the EPCglobal Network and RFID Technology to people in business. There will be no advanced mathematical or computer science requirements, however, readers will be expected to understand the basics of computer and Internet technology. Market Considerations We expect the market for this book to be substantial. Our minimum sales target is 15,000 copies, depending on retail pricing and distribution. We base this forecast on the following justifications. The MIT Auto-ID Center has received nearly $30 million dollars in funding from industry. There were over 100 corporate members of the Center. Companies include Wal-Mart, Proctor & Gamble, Gillette, and Unilever that represent billions of dollars in annual revenue. The Center had a mix of sponsors including consumer good manufacturers, industrial firms, retailers, consulting companies, hardware vendors, and chip manufacturers. In addition, the MIT Auto-ID Center has established research labs overseas including, the University of Cambridge in the UK, the University of Adelaide in Australia, Keio University in Japan, the University of St. Gallen in Switzerland, Fudan University in China, and a laboratory established in S. Korea. An academic alliance exists that spans beyond these institutions and includes several symposiums held around the world. These organizations and their customers provide a solid market for the book because all employees, vendors and academics will need a quick reference to find out about the trends in RFID Technology. Beyond technical representatives from these organizations, few in industry or academia have a coherent view of RFID or the implications that the 7

8 technology possesses. With powerful organizations such as Wal-Mart mandating the use of RFID, there will be a continuing need for information on the topic. In addition, we are deeply involved in a number of organizations that offer great potential as a source of sales. For example, the American Production and Inventory Control Society (APICS) alone has 50,000 members. With over 20 years of membership and participation in leadership committees, we have a high level of name recognition. Other organizations such as the Council for Supply Chain Management Professionals (CSCMP) and the Institute for Operations Research and Management Science (INFORMS) also provide many opportunities for book sales. With supplemental teaching materials, the book will also find some sales in the academic market, specifically in schools of business. Targets include marketing departments, logistics, supply chain and operations management, and accounting. Campus bookstores are always a good source of ongoing sales. Finally, GS1 has over 850,000 member companies doing business in more than 25 major industries. This provides perhaps the largest general market for our book. Besides these markets, the authors have high visibility web sites containing posted research material, and extensive contacts overseas including Asia where the EPCglobal Network and RFID Technology has great potential. The authors also have done speeches and seminars on the topic. Finally, the book references a number of leaders in the field of RFID technology along with the contributions from MIT Alumni. The book should be popular among students and alumni of MIT. 8

9 Status of the Book We have already completed the core of the book (71,000 words including the glossary). This manuscript could be published as a complete work. There are an additional six chapters that we wish to add. It is our opinion that this addition would be valuable because most of the material is case study and application oriented. Of the six chapters, there are drafts of four. Estimated length including the additional chapters would be 98,000 words. All chapters will be complete by March 20, Reviewers A number of graduate students and others have already reviewed the manuscript. Additional reviewers, if needed, might include: Sanjay Sarma Associate Professor of Mechanical Engineering Massachusetts Institute of Technology Donald F. Biggs Director, Sales Logistics Welch s, Inc. Concord, MA. II. Table of Contents (TOC) The core manuscript, which is already finished, constitutes a complete work. The TOC is as follows: Chapter 1 Introduction 2,300 words, 19 citations Chapter 2 The History of Technological Innovations 2,500 words, 25 citations Chapter 3 - Tags and Readers 3,100, citations to be added Chapter 4 Infrastructure 3,100 words, 24 citations Chapter 5 - Location 1,900 words, 5 citations 9

10 Chapter 6 Securing the Pharmaceutical Supply Chain 6,700 words, 42 citations Chapter 7 The Realities of Implementation 6,400 words, 54 citations Chapter 8 Theft 7,900 words, 47 citations Chapter 9 Improving Visibility in the DOD Supply Chain 6,000 words, 45 citations Chapter 10 - Operational Systems - 3,700 words, 26 citations Chapter 11 Building a Business Case for the EPCglobal Network 4,200 words, 28 citations Chapter 12 - Enhancing Revenue Using the EPC 8,700 words, 78 citations Chapter 13 - Navigating the Sea of Data 6,300 words, 33 citations Glossary - 7,800 words (length might be cut) Total, 63,000 words and 426 citations, not including the Glossary Total, 71,000 words including the Glossary Estimated Length- 300 pages All chapters are complete; minor adjustments are needed to Chapters 3 & 10. Some of the chapters are very long and could be split into two parts. In this case, minimal re-writing is needed. To make the book exceptional, we would like to add six chapters. With this scenario, the TOC would be the following:. *Foreword fchapter 1 Introduction 2,300 words, 19 citations fchapter 2 The History of Technological Innovations 2,500 words, 25 citations fchapter 3 - Tags and Readers 3,100 words fchapter 4 Infrastructure 3,100 words, 24 citations fchapter 5 - Location 1,900 words, 5 citations 10

11 fchapter 6 Securing the Pharmaceutical Supply Chain 6,700 words, 42 citations fchapter 7 The Realities of Implementation 6,400 words, 54 citations *Chapter 8 - Smart Medicine 3,000 words, est. *Chapter 9 Agriculture 3,000 words, est. *Chapter 10 Food and Sensor Networks 2,500 words, est. fchapter 11 Theft 7,900 words, 47 citations fchapter 12 Improving Visibility in the DOD Supply Chain 6,000 words, 45 citations *Chapter 13 Warehousing -2,000 words, est. *Chapter 14 - Service Parts Inventory Management 2,500 words, est. fchapter 15 - Operational Systems - 3,700 words, 26 citations fchapter 16 Building a Business Case for the EPCglobal Network 4,200 words, 28 citations *Chapter 17 The Value of Customer Service 2,500 words, est. fchapter 18 - Enhancing Revenue Using the EPC 8,700 words, 78 citations fchapter 19 - Navigating the Sea of Data 6,300 words, 33 citations Glossary - 7,800 words *to be completed by March 20. Estimated Total 90,000 words, 550 citations Estimated Total Including Glossary 98,000 words Estimated page length = almost 400 pages 11

12 Background Edmund W. Schuster has held the appointment of director of the Affiliates Program in Logistics at the Massachusetts Institute of Technology and is currently working as Co- Director, the MIT Data Center. Before MIT, Ed worked as corporate manager of operations planning at Welch's in Concord, MA and for Oscar Mayer. His business career concentrated in the field of logistics with responsibilities including the management of corporate raw materials and operations. Besides his twenty years of management experience in the consumer goods industry, Ed has also served as adjunct faculty at Penn State-Erie, lecturing in the areas of business logistics, operations management, and quantitative business analysis. Besides teaching, he also co- founded and served as associate director of the center for process manufacturing at Penn State-Erie. Ed has published over 50 articles on the application of management science to solve real world problems. His research interests include the application of models to logistical and planning problems experienced by industry. Ed's research work has appeared in the Journal of Business Logistics, Interfaces, Manufacturing & Service Operations Management, and Production and Inventory Management Journal. Several of these articles focus on new areas such as capacitated materials requirements planning and mathematical modeling of harvest risk. Future areas of research will include the Auto-ID Technology, economics of information, master schedule stability, harvest risk, Asian logistics systems, visualization, and the practice of mathematical modeling. In 2004, Ed won the E. Grosvenor Plowman award for best paper given by the Council for Supply Chain Management Professionals (formerly CLM). Ed has a B.S. in food technology from The Ohio State University and a M.P.A. (emphasis in management science) from Gannon University in Erie, PA. He also attended the Executive Development Program for Distribution Managers at the University of 12

13 Tennessee. In addition, Ed is certified at the fellow level (CFPIM) by the American Production and Inventory Control Society, is certified in integrative resource management (CIRM), and is a member of a number of professional societies. Stuart J. Allen is Professor Emeritus, Penn State University. He received a B.S. in Mechanical Engineering from the University of Wisconsin, an M.S. in Mechanical Engineering from Seattle University and a Ph.D. in Engineering Mechanics from the University of Minnesota. Stuart worked in industry for Boeing and did early research in the area of non-newtonian fluid mechanics. He has taught at several universities, achieving tenure three times and holding department chair two times. An active researcher, Stuart has over 50 refereed publications in both engineering and business. Recent research includes production planning and scheduling, and harvest risk. Besides his academic career, Stuart has owned and operated three businesses. David L. Brock is principle research scientist at MIT and founder and director of the MIT Data Center. Previously, he was co-founder and a Director at the Auto-ID Center (now Auto-ID Labs and EPCglobal). The Center was an international research consortium formed as a partnership among more than 100 global companies and five leading research universities. Dave is credited with the idea of the Electronic Product Code. David is also Assistant Research Professor of Surgery at Tufts University Medical School and Founder and Chief Technology Officer of endovia Medical, Inc., a manufacturer of computer controlled medical devices. Dr. Brock holds bachelors degrees in theoretical mathematics and mechanical engineering, as well as master and Ph.D. Degrees, from MIT. 13

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