Chapter 1. RFID Applications

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2011/8/16 1 Chapter 1. RFID Applications Outline Introduction Wallmart Common uses Tracking Healthcare Military Conclusion Future trends

Transcript of Chapter 1. RFID Applications

Page 1: Chapter 1. RFID Applications

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Chapter 1. RFID Applications

Outline

� Introduction

� Wallmart

� Common uses

� Tracking

� Healthcare

� Military

� Conclusion

� Future trends

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Outline

� Introduction

� Wallmart

� Common uses

� Tracking

� Healthcare

� Military

� Conclusion

� Future trends

Introduction

� RFID (Radio Frequency IDentification) provides a

quick, flexible, and reliable electronic means to detect,

identify, track, and hence manage a variety of items.

� The origins of RFID

� In World War II, the British first used it to identify

incoming planes were theirs, not Germany's.

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Outline

� Introduction

� Wallmart

� Common uses

� Tracking

� Healthcare

� Military

� Conclusion

� Future trends

Walmart

� In June 2003, Walmart announced that they would

require their top 100 suppliers to provide RFID tags on

pallets and cases by January 1, 2005, and extend this

requirement to all suppliers by 2006.

� In August 2010, Walmart tried to keep better track of

its inventory by add smart tags or RFID tags, to

individual items in its stores

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Walmart: Industry Pace-Setter

� Pilot implementation in Texas

� Three Distribution Centers (DC) that support

approximately 150 stores (about 5% of the almost 3,000

Walmart stores)

� Walmart also stated that the RFID chip must be field programmable for later implementation changes. Walmart affirmed its commitment the 96-bit EPC standard.

� The tags must be human and RFID-readable. Walmartdesires 100% accuracy on RFID read rates.

reference link: http://www.walletpop.com/blog/2010/07/26/

wal-marts-plan-to-use-smart-rfid-tags-sparking-privacy-concerns/

Outline

� Introduction

� Wallmart

� Common uses

� Tracking

� Healthcare

� Military

� Conclusion

� Future trends

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Shipping and Receiving� Incoming pallets or cartons with smart labels can be

automatically routed for cross-docking or delivery

directly to the manufacturing line.

� Fast-reading RFID enables instant identification of the

shipping container plus all of the individual items inside.

� For shipping, RFID readers can help packers quickly

locate and aggregate all the items needed to complete

an order.

� A field test at one of

Chevron-Texaco's

offshore platforms in the

Gulf of Mexico provides

insights into how RFID

can be used in

shipping/receiving

operations.

� Chevron-Texaco is now

looking at other pilot

projects.

reference link: http://www.rfidjournal.com/article/purchase/1324

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Warehousing� Workers scan shelves and bins to automatically detect

storage location of the sought items.

� To detect items that are stored in the wrong location and

alert operators to the problem.

� Enables items to "self-report" their locations, rather than

requiring human intervention to find them, thus reducing

errors, saving labor, and lowering costs.

� When P&G's facility in Spain boosted throughput, the loading dock became a bottleneck.

� RFID increased the speed at which pallets could be loaded on trucks -- and it eliminated mistakes and cut costs

reference link: http://www.rfidjournal.com/article/purchase/291

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Production� Work-in-process tracking and routing

� Integrated with industrial control systems to route items automatically

through assembly processes.

� Many automotive manufacturers apply RFID tags to chassis to track them

through painting stations.

� Especially effective for routing and tracking materials in clean-room

applications.

� Serial numbers/lot ID data encoded during manufacturing provides

lifetime tracking and product authentication.

� To verify eligibility for returns and warranty repairs and detect

counterfeit products.

� Maintenance history can be stored on the tag and updated whenever

service is performed.

� Boeing uses RFID tags to

track parts as they move

through its facility in

Wichita, Kansas.

� The system reduces costs

and gives managers

visibility into the parts

pipeline.

reference link: http://www.rfidjournal.com/article/purchase/596

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� After deploying an RFID

receiving system,

Paramount Farms cut its

operating costs, improved

its relationship with

growers and avoided

having to invest in

expanding its facilities.

reference link: http://www.rfidjournal.com/article/purchase/810

� GM needed to boost

production of its Hummer

H2 to meet demand, but

its manufacturing facility

had limited space for

parts.

� The automaker turned to

RFID to keep the plant

humming.

reference link: http://www.rfidjournal.com/article/purchase/1274

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� By integrating RFID with

its new assembly line,

Club Car has cut

production time per golf

car to 46 minutes from 88,

improved its ability to

customize cars—and

saved millions of dollars.

reference link: http://www.rfidjournal.com/article/purchase/839

� Johnson Controls makes car and truck seats that must be delivered to automakers in precise order for just-in-time manufacturing.

� The company has deployed a 13.56 MHz RFID system that has proven to be 99.9 percent accurate.

reference link: http://www.rfidjournal.com/article/purchase/530

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DHL Worldwide Express� DHL Worldwide Express handles 160 million packages a

year

� RFID program manager Trevor Peirce

� In 2003, standing next to a conveyor belt at its Helsinki gateway,

watching computerized RFID scanners identify packages inside

passing cargo containers at the rate of 300 items per second.

� "This is amazing technology when you see it working, and it's all

fine-tuned."

� CIO Steve Bandrowczak

� "RFID clearly can help customers by reducing inventory cycles,

reducing lead times."

� Reusable supply chain assets often seem to sprout legs and walk off on their own.

� Air Canada used an innovative RFID system from Scanpak to slash unexplained losses and improve food cart utilization globally

reference link: http://www.rfidjournal.com/article/purchase/335

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� In Singapore and Helsinki DHL tested it in anticipation

of tracking the 160 million packages it ships annually.

� Managing more than 50,000 inbound freight containers and 30,000 outbound trailers annually is a logistical nightmare.

� But NYK Logistics has found a truckload of savings by using an RFID yard-management system.

reference link: http://www.rfidjournal.com/article/purchase/617

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� A project to secure cargo

containers from seaport to

seaport shows that RFID

can track shipments with

100 percent accuracy,

improve safety and

deliver some compelling

financial benefits to

importers.

reference link: http://www.rfidjournal.com/article/purchase/743

� Canus, a maker of goat's

milk soap, is deploying

RFID to cut distribution

costs, keep products from

spoiling in transit and

meet Walmart's tagging

requirements ahead of

schedule

reference link: http://www.rfidjournal.com/article/purchase/1101

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� By using RFID to track

shipments within its

supply chain, KiMs, a

Danish potato-chip maker,

not only spiced up its

sales but also cut the fat

from its inventory and

workforce.

reference link: http://www.rfidjournal.com/article/purchase/964

Event Management� Guests at amusement parks and recreational facilities

wear wristbands or ID tags with RFID chips

� Control/limit access to certain facilities.

� Track of patrons

� e.g., children may become separated from parents. By presenting

their ID tags at "location stations," separated individuals can be

more easily located.

� Cashless payment system

� Cards/wristbands with RFID chips store prepaid monetary value.

� Guests can recharge the card or wristband after the stored value

has been depleted.

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� An RFID locating system gives parents visiting Dolly's Splash Country piece of mind, because kids are always tracked.

� It also gives the park the opportunity to increase revenues by adding services, like cashless payments.

reference link: http://www.rfidjournal.com/article/purchase/326

Library, Video Store� Library materials check-in or out without manually

handling and orienting each item.

� Theft detection.

� Portable computers with RFID readers take inventory

and find misfiled materials

� RFID reader automatically detect missing materials and alert the

librarian walking down an aisle of bookshelves.

� RFID readers positioned at doorways to record

transactions and detect shoplifted items automatically.

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� In Singapore's library system, all 9 million books,

videos and DVDs are embedded with antitheft chips,

allowing self-checkout.

� "With bar codes, you need to precisely align the reader

and the tag, but with RFID even old people and young

children can use the system," says library-board senior

development manager Wong Tack Wai.

� Britain's CD.id project shows RFID can be used to track individual music CDs through the supply chain.

� The real challenge is creating a system that benefits everyone, including the retailer that wants to prevent shoplifting.

reference link: http://www.rfidjournal.com/article/purchase/283

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� After a national law firm installed an RFID system to track legal files at its Boston location, accuracy in locating files jumped from 35 to 98 percent—saving tens of thousands of dollars in time spent looking for documents.

reference link: http://www.rfidjournal.com/article/purchase/977

Retail� In June 2003, Walmart CIO Linda Dillman gave the

firm's 100 top suppliers which provide half the goods on its shelves a veiled ultimatum about the stuff flowing into its 103 U.S. distribution centers. � Vendors who don't use EPC codes on pallets and cases by

2005 could risk losing business.

� "By 2006, we'd like to roll it out with all our suppliers," says spokesman Tom Williams.

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� In Arizona a busy mom with kids charges fast food to

her American Express by flashing a key fob in front of

a plastic box.

� In London the same technology helps retailer Marks

& Spencer track gourmet dinners to prevent spoilage.

� Gourmet take-home foods, supplied to 200-plus stores by

300 providers.

� RFID tags embedded in 3.5 million food trays and dollies,

allowing the company to track the trays and reducing

employee hands-on time 80%.

reference link: http://www.time.com/time/globalbusiness/article/0,9171,1101030922-485764,00.html

� Setup costs for a large company can run from $100

million to $200 million, the efficiencies can amount to

1% of revenues (around $100 million at M&S)

� To reduce losses and boost efficiency, Woolworth has

launched a pilot that uses RFID and other technologies

to track products through the supply chain.

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Cashless Payment

� Exxon Mobil's Speedpass program

� Passive tag on key chain or active tag attached to car

window contains unique identification code.

� RFID reader detects the tag, turns on the pump and

automatically charges the gas purchase to the driver's

registered credit card

� McDonald's now offer similar application to speed

transactions at the counter and drive-thru window.

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“ExpressPay”� Carl's Jr. is testing “ExpressPay”

� Faster lines at the cashier� Reduced backups at the drive-through window have brought in

new customers.

� "It's a no-lose situation," says Jason LeVecke, grandson of the chain's founder.

� "It sure would be easier than fumbling around in my purse," says Tracey Serenka, who had her two sons —Eric, 1, and Jason, 4--in tow at a Carl's Jr. recently.

� Advantage over a credit card� No name or signature on the fob, and the account number differs

from that on the user's regular card, reducing chances that crooks can steal from the account.

Transportation Management� Drivers pay tolls without stopping at toll roads and

bridges

� Transponders that can be read at up to 50 mph (80 kph) are

attached to the vehicle and are read when the vehicle passes an

antenna mounted in the toll collection lane.

� Drivers may either receive a monthly bill or have the toll debited

from a prepaid value stored on the transponder.

� Similar technology is used in public transit to collect bus

and train fare from prepaid passenger fare cards.

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� California FasTrak system uses RFID tags for

electronic toll collection. As vehicle passes through,

RFID reader scans the RFID tag, the information is

used to debit the toll from a prepaid account.

� Octopus Card (Hong Kong) for mass transit.

Arts and Entertainment

� Several museums in Rotterdam are using RFID to

reduce the cost of tracing the movements of works by

Rembrandt, Renoir, Picasso and other masters.

� And for the past two years, Oscar-goers have been

screened and tracked by RFID.

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Expiration Dates of Food in Refrigerator

� With RFID, the family

fridge will tell you when

the milk is spoiled or

you’re out of butter. In

the store, your grocer

will know all. A tag will

help you find Fluffy too

Outline

� Introduction

� Wallmart

� Common uses

� Tracking

� Healthcare

� Military

� Conclusion

� Future trends

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Inmate-tracking� Calipatria State Prison in California

� Monitors guards and inmates with TSI PRISM, a tracking technology using RFID wristbands that look like large diver's watches.

� The surveillance curtails violence.

� Prisoner tracking – Ohio Department of Rehabilitation

and Correction (ODRH) approved (Aug. 2004) a

$415,000 contract with Alanco Technologies to use

wristwatch-sized transmitters that can detect if

prisoners try to remove them.

Animal Tracking

� More than 50 million pets worldwide are tagged with

RFID chips.

� At least 20 million livestock have RFID tags to follow

them for possible disease breakouts.

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Asset Tracking

� Within months of

deploying RFID to

keep tabs on its IT

equipment, Colorado's

vast El Paso County

expects to soon recoup

its investment

reference link: http://www.rfidjournal.com/article/purchase/1303

� Large organizations have a hard time tracking assets, like laptops.

� Pilots at one of the largest US government agencies, the Social Security Administration, prove RFID and creative thinking can save money.

reference link: http://www.rfidjournal.com/article/purchase/507

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Outline

� Introduction

� Wallmart

� Common uses

� Tracking

� Healthcare

� Military

� Conclusion

� Future trends

Healthcare� RFID on patient wristbands provide tamper-proof, accurate

identification for facility access control and security.

� Many Alzheimer's disease facilities install RFID readers at all their

doors to lock down and sound alarms automatically if patients try to

wander through.

� RFID application in the United Kingdom has eliminated opportunities

for "baby-snatching" or kidnapping to occur on hospital grounds.

� Tracking of medication dispensing, laboratory samples, and blood

bags.

� RFID saves time and improves accuracy because it automatically

records all item movements and does not require human intervention to

scan a bar code or record data on a form.

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� FDA (2004) is determining whether hospitals can use

RFID to identify patients and/or permit relevant

hospital staff to access medical records.

� Lucile Packard

Children’s Hospital uses

RFID to track the location

of its newest patients and

ensure they won’t be

removed without

permission.

� The same system is being

used to track assets.

reference link: http://www.rfidjournal.com/article/purchase/1372

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Pharmaceutical� Blind/vision-impaired

� Compact reading device identifies contents of prescription bottle;

text-to-speech conversion software “reads" the drug contents to

the patient.

� Ensure patients take correct medication. Other information, such

as dosage instructions and drug interaction warnings, may also be

encoded.

� RFID to manage movement of medications and

containers through assembly and packaging lines to

ensure medicines are put into correctly labeled packages.

� Paperless audit trail provides high integrity, accountable

supply chain.

Outline

� Introduction

� Wallmart

� Common uses

� Tracking

� Healthcare

� Military

� Conclusion

� Future trends

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Military

� The biggest user of RFID today

� U.S. military has plowed $272 million into RFID asset

tracking in Iraq.

� The Army Material Command required all air pallets and

commercial shipments for Gulf War II to be digitally

tagged so commanders like General Tommy Franks knew

when and where critical cargo like tanks would arrive.

� DOD (United States Department of Defense) tracks humans with RFID� The Navy's Fleet Hospital 3 kept tabs on wounded

soldiers, civilians and POWS at its 116-bed facility in the Iraqi desert by using wristbands with RFID chips.

� By scanning the wristbands, medical personnel could access treatment and track patients in a central database.

� "In Iraq the real challenge was tracking noncombatants, but ultimately we hope every soldier will have an RFID tag," says Lisa Mantock, president of Texas-based ScenPro, which developed the software.

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Outline

� Introduction

� Wallmart

� Common uses

� Tracking

� Healthcare

� Military

� Conclusion

� Future trends

Conclusion

� Introduction to miscellaneous RFID applications

� Common uses

� Walmart

� Shipping and Receiving, Warehousing and Production

� DHL Worldwide Express, Event management, Library, Video

store, Retail, Cashless payment, Express Pay, etc

� Tracking

� Healthcare

� Military

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Outline

� Introduction

� Wallmart

� Common uses

� Tracking

� Healthcare

� Military

� Conclusion

� Future trends

Future trends� A new report from market intelligence firm ABI Research

forecasts the global RFID market to grow to $5.35 billion in 2010� $4.47 billion excluding automobile immobilization, which is

the largest single RFID application but with a slow growth rate

� a 15% increase over the total for 2009.

� The market is also expected to see steady growth over the next five years, exceeding a total value of $8.25 billion by 2014� $7.46 billion excluding automobile immobilization

� a 14% compound annual growth rate.

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Future trends (cont.)� "To 2014, the greatest growth will be found in RTLS (Real

Time Location Systems), baggage handling, animal ID and item-level tagging in fashion apparel and retail," says Michael Liard, practice director for ABI Research

� Additional growth is expected to derive from expanded RFID use in electronic vehicle registration, electronic IDs, government initiatives, library systems and supply chain management.

reference link: http://news.thomasnet.com/IMT/archives/2010/03/

radio-frequency-identification-rfid-market-projected-to-grow-in-2010-beyond.html