RFID: Technologies and Application

RFID: Technologies and Application Luigi Battezzati Ph.D. Visiting Professor di Operations al Politecnico di Milano Osservatorio sulle applicazioni del RFID del Politecnico di Milano Geneve, March, 16th 2005

RFID Applications: Tag on product Tag on people RFID & Logistics Trends and Conclusion 2

RFID Applications RFID technology is ready for changing the world Identify individual items Line of sight not required Store and modify information on transponder Stable in variety of conditions Read through most non-metals RFID transponder cost 50 cents today (5 cents tomorrow?) 3

1940s Radar refined and used major World War II effort 1950s Early explorations of RFID technology. 1960s Development of the theory of RFID. Start of applications field trials. 1970s Explosion of RFID development. Test of RFID accelerate. Early adopter implementations of RFID 1980s Commercial applications of RFID enter mainstream. 1990s Emergence of standards. RFID widely deployed. RFID becomes a part of everyday life. 2000s RFID revolution begins Worldwide Standards Contact less payment Auto-id and EPC 1948 Harry Stockman invents RFDI with the publication of his paper "Communication by Means of Reflected Power" 1952 F.L. Vernon's "Application of the microwave homodyne" 1950s D.B. Harris patents "Radio transmission systems with modulable passive responder" 1963-1964 R.F. Harrington advances theory with "Field measurements using active scatterers" and "Theory of loaded scatterers" 1959 Friend or Foe (IFF) long-range transponder system reaches breadboard demonstration stage 1973 Transponder system and apparatus 1977 Electronic license plate for motor vehicles 1978 Identification system using coded passive transponders Passive encoding microwave transponder Identification system using coded passive transponders 1980 Electronic identification system Electronic detection and identification system Passive transponder apparatus for use in an interrogator responder system 1982 Electronic identification system Apparatus and method for an electronic identification, actuation and recording system 1975 Los Alamos Scientific Laboratories (LASL) releases its RFID research to public sector; publishes "Short-range radio-telemetery for electronic identification using modulated backscatter" 1985 Electronic proximity identification system Electronic tag identification system Remote passive identification system Implant telemetry system 1984 Radar apparatus for detecting and/or classifying an agitated reflective target Betteryless, portable, frequency divider useful as a transponder of electromagnetic radiation Electronic identification system with power inputoutput interlock and increased capabilities Animal feeding and monitoring system Over 350 direct-reference patents 2000 HF ISO standard:13,56 Mhz 2000 Calypso std for ticketing 1999-2003 Auto-id Center at MIT for developing EPC for FMCG 2004 Near Field Communication (NFC) for integration between Mobile phone and RFID 2005? ISO and EPC: UHF standard 1966 Commercialization of EAS, 1-bit Electronic Article Surveilance technology: Checkpoint, Sersormatic 1976-1977 LASL spinoffs Indentronix and Amtech 1975-1978 Large companies, e.g. Raytheon, RCA, and Fairchild, develop electronic identification systems 1982 Mikron founded (later purchases by Philips) 1991 TI establishes TIRIS, the first multinational semiconductor company to develop and market RFID Vast number of companies enter RFID marketplace Modern successful commercial applications include 1979 First implantable RFID tags 1982 molded-neck collar EID 1986 Glass-encased injectible EID 1993 ISO EID standard developed 1991 1994 AAR adopts All USA RFID std railcars equipped with RFID 1996 City of L.A. adopts pet tagging Supply Chain Management:Wal mart, Metro War logistics: Gulf war of US Army Transportation/Distribution Industrial Security and Access Control Animal Identification Automated Library Systems Checkpoint Systems Toll Road Control Healthcare Digital Card Mail Toys * Tabella elaborata da Luigi Battezzati sulla base della RFID Timeline First RFID toll 1992-1995 collection system Multi-protocol traffic control implemented in Norway and toll collection systems implemented in Texas, Oklaoma, and Georgia Wide-scale electronic toll collection in US 4

RFID Applications Several types of RFID transponder *Source SOFTWORK 5

RFID Applications antennas and readers* Reader card Proximity Reader Portable Reader Mid Range Reader Long Range Reader Antenna Mid e Long Range RFID Gate *Source SOFTWORK 6

RFID Applications The overview of RFID costs * shows the component values.. (IC) Chip Antenna Assembly Case Total Cost 20 cents 5 cents 5 cents 20 cents 50 cents When? 2001 30 cents 2003? 2 cents 1 cent 1 cent 1 cent 5 cents 2005?? 0.5 cents 0.1cent 0.1cent 0.3cent 1 cent 2010??? Plastic Printed *Source: Shoumen Datta MIT, 2003 Printed on Objects 0.1 cents? 7

.but it does not show the component relevance for reaching the best RFID performances RFID Applications Chip: not critical component commodity Antenna: antenna reader design is crucial strong customization for any application Assembly: the production quality is important production plant focused on automation Case: case design is critical due to environmental constraints strong customization for any application 8

RFID Applications Basically RFID changes material flows but it impacts on the information flows also: the MIS architectures could became really distributed and Centralized MIS architectures Item identification coupled with object (ex bar code) Information in Database of MIS coupled with item identification MIS reliability is necessary for capturing the data changes Distributed MIS Architectures Item identification and transactions coupled with object (ex RFID transponder with memory) Information in Database of MIS up dated when it's possible and useful MIS reliability is not necessary for capturing the data changes so you can saving money and improving MIS reliability in the same time 9

RFID technology assessment is not enough for taking decisions RFID Applications RFID researches are focused on Technology Individual applications RFID applications automation of existing activities No impact on business processes re-design No benchmark with best practices But RFID is not a more intelligent bar code only It is able to change totally the existing processes It can improving dramatically the existing performances It will create an intelligent and distributed environment 10

concerning RFID implementation benefits RFID Applications So our focus are the business processes activity evaluation performance measurement re-design for capturing every RFID potential benefits RFID taxonomy gives us a general RFID framework focused on business processes common characteristics for RFID Benefits of different industrial sectors a possible benchmark with existing best practices a methodology for evaluating the cost/benefits of RFID. The object of RFID is first driver of our taxonomy product: major characteristics are supply chain management and end user utilization people: major characteristics are the Human-RFID interaction and Human Privacy Problem 11

The life s cycle is the cluster rule for classifying the RFID value for supply chain actors RFID Applications Manufacturers and Retailers Consumer s Fresh Products: Yogurt Flowers Best seller: CD, Books Newspapers Fashion Products: Prêt à Porter Personal Computer Seasonal Durable Goods FMCG: Grocery Health & beauty Hardware Durable Goods: Cars Home Appliances Apparel basic products Short life s cycle (utilisation) Long life s cycle (utilisation) Short life s cycle Long life s cycle 12

Human RFID interaction is not natural but it could be helped by a tool friendly for everybody: the mobile phone RFID Applications Mobile Phone Network Interphace Tag RF-ID SMS Tag RF-ID Tag RF-ID RFID Reader Tag RF-ID 13

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Finally the privacy is more and more critical for everybody RFID Applications The fear of total control is in the mind of everybody RFID on people is really an other tool for controlling the people behavior But we are already controlled by different way: Credit card transaction Video cameras in the towns Other transaction activated electronically The key problem is not the additional control by RFID but the power for using and integrating the database of our transaction In any case the transponder can be put in sleeping mode after sales if the customer requested it 15

RFID Applications: Tag on product Tag on people RFID & Logistics Trends and Conclusion 16

Several examples of applications and project pilots on durable goods Tag on Product Animal identification Pet Cows Dolphins Automotive Manufacturing: Ford, BMW, GM, Toyota etc Electronic Immobilisation: Immobiliser Textile and luxury Intelligent store of Prada Intelligent supply chain of Benetton Home appliances Electrolux:microwave oven, washing machine and refrigerator Bticino: My Home 17

The Auto-ID Center pushed the RFID application for FMCG Tag on Product In 1999 the Auto-ID Center was founded at MIT. The Center, in partnership with over 50 global organizations and companies is working on the realization of an RFID network for FMCG developing new technologies that will lower the costs of the network defining standardized protocols and languages building of the infrastructure This network will allow physical objects to communicate with each other seamlessly through the Internet. This architecture will track every single manufactured item significantly reduce the need of human intervention The Auto-ID Center is organizing Adoption Forums focusing on specific industries whose goal is to create consensus, awareness, and standards 18

Consistent Global Identification Tag on Product An Example of How GTIN Integration Works With the EPC Illustrative Example (EAN-13): 12 34567 89012 8 EAN - 13 0 1 2 3 4 5 6 7 8 9 0 1 2 8 Company Prefix Item Reference Check Digit ) 1 234567 890128 > 1 2 3 4 5 6 7 8 9 0 1 2 8 Remove Check Digit EPC: 3 1234567 89012 0000000123456 Header EPC Manager Number Object Class Number Serial Number GTIN 19

The EPC Network Tag on Product Inexpensive tags Minimum data on the tag Middleware between readers and information systems Information stored on EPC Information Services, and accessed through Object Name Service EPC Information Service (PML) ONS Middleware Readers Tag Tag Tag Integration Layer RFID Enterprise Applications ERP Warehouse Management Systems Inventory Management Data Warehouse Merchandise Management Store Systems Etc. 20

Electromagnetic spectrum Tag on Product Electric Waves Radio Waves Infra-red Visible Light Ultra- Violet X-Rays Gamma Rays Cosmic Rays Radio Spectrum 9kHz 30kHz 300kHz 3000kHz 30MHz 300MHz 3000MHz 30GHz 300GHz 3000GHz VLF LF MF HF VHF UHF SHF EHF Not designated Long Wave Medium Wave Short Wave The RFID Frequencies VLF Very Low Frequency VHF Very High Frequency LF Low Frequency UHF Ultra High Frequency MF Medium Frequency SHF Super High Frequency HF High Frequency EHF Extremely High Frequency 125-134 khz 13,56 Mhz 860-960 MHz 2,45 and 5,8 GHz 21

RFID Applications: Tag on product Tag on people RFID & Logistics Trends and Conclusion 22

Several examples of applications and project pilots Tag on People Transport Railways and metro in Japan Bus in Seoul (Korea) Public transports (Germany) Lufthansa Fidelity card Payments Exxon Toll Systems Health and Public Service Malaysia: identity card France: social security card Free time Chicago Marathon Ski pass Football 23

RFID is growing for people transport Tag on People The public transport around half public involves all over the world million of people. Also in this case the possibility to use different means with different tickets makes the management more complex. In Europe the project is developed Calypso that has adopted a technology based on passive transponder RFID to 13,56 MHz according to the standard ISO 1545 that work with the objective to be a contactless card for payments. In this way it is possible not only to manage the price of the trip in dynamic way but also to use the transponder for purchasing from the automatic equipment that distribute drinks or other products 24

Tag on People 25

RFID Applications: Tag on product Tag on people RFID & Logistics Trends and Conclusion 26

The transport has been the first application of transponder RFID RFID & Logistics The aerial sector has always been to the state-of-the-art for the active transponders The first examples in the second world war The following development in the civil aviation The railway transport has followed quickly Transcore has labelled the totality of the means railway USA with technology UHF The European situation is more complex The principal countries have made non homogeneous choices The system Eurobalise S21 at the base of the European Train Control System (ETCS) with inductive coupling to 27,115 MHz In every case it is necessary to distinguish the management of the handling from the management of the maintenance Finally the transport on car or truck has been touched by the RFID The tolls systems are developed firstly in Americas by the Canadian highways and after in Europe by Autostrade (Italian highways) with active technologies but passive transponders are coming now The management of the truck traffic and its effects (usury of the roads, safety) has pushed the German Government to the proposal of a revolutionary system that unites telephony cellular GPS: may be the traditional toll systems are enough and less expensive. 27

Container management is the best application of RFID in Logistics RFID & Logistics A container is reusable so the cost of the transponder is diluted in the time The more important system of containers in the world is the International Container Transport The sector of the international transports involves around 7 million containers. The manual recognition is complex, expensive and not without errors. From the end of the years '60 the containers are internationally identified according to ISO 6346 that it foresees an alphanumeric code that identifies the owner and a number of register of the container Then a norm ISO has been created 10374 that it foresees to identify through the container an active transponder read-only that you can read up to 13 meters distance with 15 years of active life of the battery that it corresponds to the technical life of the container 28

RFID & Logistics The case management is already interesting for FMCG The most greater part of the applications of the transponders RFID indeed you realize in the sector of the FMCG they currently concern containers or reusable systems of transport, for instance: Marks&Spencer has a line of fresh products shipped by recyclable trays, on which the 70% of the 120 million of wrappings that cross the supply chain travels. The use of the RFID has allowed to reduce the costs and the time of crossing improving the level of service. CHEP, in February 2002 has begun a project pilot in his center of distribution in Florida, whose purpose is that to trace the handling of 250 thousand pallets. The objectives of the project pilots are the followings: a best understanding of the handling, an improvement of the measurement of the times of the working cycles and the identification of the possible points of attention along the chain and the integration of the information RFID in the systems ERP Wal-mart has asked to his principals for 100 suppliers to be compatible RFID within January 2005 according to the followings principles Transponder on pallet and reusable containers only Standard EPC of the Auto-id of the MIT Metro is developping same RFID project in Europe 29

RFID Applications: Tag on product Tag on people RFID & Logistics Trends and Conclusion 30

Major trends on RFID technologies Trends & Conclusions 2005 2007 2008 2012 Passive Transponder Costs are reducing New UHF standards EPC and ISO harmonization Silicon Technology is mature Feasibility of Polymer Technology Active Transponder Technology of Long life battery Standards de facto Designing Tools for customized MEMS Passive Transponder Polymer Technology diffusion for manufacturing low cost transponder Active Transponder Long life battery diffusion Standard ISO based on Standard de facto Cost reduction 31

and the structure of demand and applications Trends & Conclusions 2005 2007 2008 2010 Applications Re-usableTransponder Durable Goods Logistics Security Services Demand Project based Best practices development Education, training and change management Applications Fast Moving Consumer Goods at item level Business to Consumer Distributed Intelligence Demand RFID is product on the shelf Standard plug and play Transponder autonomous 32

Trends & Conclusions RFID is a building block of Distributed Intelligence Rapid Adoption Textile 1853 1913 1969 2025 2061 2081 Railway Auto Computer Distributed Intelligence Nanotech 1800 1853 1913 1969 2005 2025 1771 1825 1886 1939 1977 1997 Introduction of Technology Industrial Revolution Information Evolution Source: Norman Poire MIT 33

Conclusion Trends & Conclusions The tag is not another kind of bar code label but a real killer application The automatic identification and the distributed data storage change the business processes The value of application of RFID doesn't impact on the same activities with the same weight. RFID is a building block of distributed intelligence 34