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The Emperor’s New Clothes

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2 The Emperor’s New Clothes
Craig K. Harmon, President & CEO, Q.E.D. Systems

3 Q.E.D. Systems • Craig K. Harmon • President & CEO Visit our web sites: and Chair, ISO TC 122/104 JWG - Supply Chain Applications of RFID Chair, RFID Experts Group (REG) Chair, U.S. TAG to ISO/IEC JTC 1/SC 31/WG 4 “RFID” Senior Project Editor ISO/IEC JTC 1/SC 31/WG 4/SG 3 (RFID - Air Interface ) Chair, ASC MH 10/SC 8/WG 4, RFID for Returnable Containers Chair, ISO TC 122/WG 4 (Shipping Labels) & ISO TC 122/WG 7 (Product Packaging) Vice-chair, ASC MH 10 and U.S. TAG to ISO TC 122 (Packaging) Member, EPCglobal HAG (UHFGen2), FMCG BAG, HLS BAG, SAG Past Chair, ASC INCITS T6 (RFID) - ANS INCITS 256:1999, 2001 JTC 1/SC 31 Liaison Officer to the International Telecommunications Union (ITU-R), International Air Transport Association (IATA), and European Telecommunications Standards Institute (ETSI) ASC MH 10/SC 8 Liaison Universal Postal Union (UPU) Physical Encoding Group (PEG) Advisor and Member of U.S. Postal Service Strategic Technology Council ISO TC 104 & 122 (Freight Containers / Packaging) Liaison Officer to JTC 1/SC 31 Project Editor, ISO (Electronic Container Seal - Physical Layer) Chairman & Project Editor, ANS MH (Data Application Identifiers) Vocabulary Rapporteur to ISO/IEC JTC 1/SC 31 Co-chair, HIBCC Automatic Identification Technical Committee (AITC) AIAG Bar Code, Applications, 2D, Tire, Returnables, & RFID Committees Project Editor, EIA Shipping Label, Product, Product Package, & Component Marking Original Advisor, U.S. Department of Defense in Migration to Commercial Standards Original Project Editor, NATO STANAG 2233 (RFID for NATO Asset Tracking) Standards Advisor, R1 - RFID China Forum (Cooperation of China, Korea, Japan) CompTIA Subject Matter Expert - Professional Skills Certification - RFID CompTIA RFID Certified Professional (CRCP) - RFID+ Recipient of the 2004 Richard Dilling Award

4 Microsoft RFID Myths There are no set Standards for RFID today.
Replacing bar code-based processes with RFID processes will achieve ROI RFID benefits only retailers, not suppliers. RFID is the only way to automate manual receiving processes. The EPC is an RFID replacement of the current bar code (GTIN/U.P.C.).

5 Microsoft RFID Myths Adoption of RFID won’t require facility, equipment, and process changes. Only companies with metal and liquid products face readability challenges. Consistently reading every EPC on a pallet is easy. All RFID tags are the same. EPC technology can only be used for retail goods.

6 My Favorite Quote of Bill Gates
People have a tendency to overestimate technology in the short term, and underestimate it in the long term.

7 The Technology

8 Technical Obstacles Multiple dock doors, multiple antennas/ interrogators, dense readers, overlapping signals Tag failures caused by electrostatic discharge (25 kV) in handling caused by “slap and ship” operations that may detach the antenna from the chip caused by poor manufacturing techniques Assumption that it matters little where the tag is applied to the container What to do in case of a tag failure

9 Material Effects on RFID Signals
Materials in the RF field can have several effects: Reflection / refraction Absorption (loss) Dielectric effects (detuning) Complex propagation effects

10 Material Effects on RFID Signals
Corrugate Absorption (moisture) Detuning (dielectric) Conductive liquids, e.g., shampoo Absorption Plastics Metals Reflection Groups of cans Tissue Human body / animals

11 Overcoming the Same Overlap - shielding, trip switches, antenna selection (ISO TR ) Tag failure - care in applying tags, encode-print-apply Poor quality - ISO standards (currently in the REG) on tag manufacturing (ISO 9000ish) and tag quality measurement Tag location - characterization of containers, dielectric backing, dielectric inserts, content-insensitive labels (ISO TR ) Back-up - REG recommendations on bar code and human-readable (ISO TR )

12 Smart Label An RFID label contains several layers:
Printable face-stock Adhesive RFID inlay (chip + antenna) Adhesive Liner Courtesy: Avery Dennison

13 Closer look at the RFID inlay
Antenna Major driver of read performance Determines how well an RFID label works with a certain product Chip Contains data Courtesy: Avery Dennison

14 The Data

15 Its all about the data Inventory databases are currently structured with product codes New technology should not require new data Oftentimes new data structures are simply means by which sponsors can secure revenue streams Refresh technology when that technology becomes cost effective Do not “rush” into new data structures without understanding the impact on existing information systems

16 RFID vs Key-entry & Bar Code
RFID is not a replacement for a bar code!! Use RFID where there is a positive ROI When analyzing your business process, which makes the most sense? ALWAYS HAVE A BACK-UP PLAN With RFID back-up, what is the key-entry solution: Keying 96 1s and 0s? 32 octal character representation of binary data? 29 decimal character representation of binary data? 24 hexadecimal character representation of binary data? For bar code back-up, will you use existing bar codes or new ones?

17 Serialization EPC implementation requires re-engineering of your business processes Existing inventory data bases are product code not serial number driven Appreciate the amount of additional data that you will be both filtering and processing Encoding existing serial numbers may be preferable to migration to a binary system EPC does NOT require its serialization for its arbitration/anti-collision methods

18 Blocks vs Fields of Data
Bar codes are one at a time Two-dimensional symbols are often blocks of data Data rich RF tags are blocks of data Serial number only tags require data base / communications access to identify the data Are your systems ready for these changes? Are you ready for the investment to enable these changes?

19 Implementation Issues
Read zone control Application of tags Where in the process Where on the container How are the labels being applied Use ISO standards (avoid Class 0 and Class 1v1) EPC requires pre-population of data at the recipient (X / EDIFACT DESADV / XML) or access to the EPCIS Back-up in case of tag failure Recycling Data concerns Return on investment

20 International Standards

21 Standards Organizations
International International Organization for Standardization (ISO) International Electrotechnical Commission (IEC) International Telecommunications Union (ITU) (United Nations) Universal Postal Union (UPU) (United Nations) ISO/IEC Joint Technical Committee 1 (JTC 1) TC 122 Packaging SC 31 Automatic Data Capture TC 104 Freight Containers SC 17 IC Cards ITU-T (fka CCITT) Telecommunications WG 1 - Symbology TC 122/104 JWG SC Apps RFID WG 2 - Data Content ITU-R (fka CCIR & IFBR) Radio-frequency Issues WG 3 - Conformance WG 4 - RFID TC 8 Ships & Marine Tech ITU-D (fka BDT) Telecommunications Development WG 5 - RTLS Regional Comité Européen Normalisation (CEN) Comité Européen Normalisation Electrotechnique (CENELEC) Comité Européen Postal & Telegraph (CEPT) ODETTE ECMA National Standards Assoc of China (SAC) British Standards Institution (BSI) Deutches Institut fur Normung (DIN) AFNOR ANSI JISC MHI AIM UCC CEA IEEE INCITS Other T6 B10 Industry DoD ATA CEA AIA HIBCC AIAG UCC Other VDA

22 AIDC Focused ISO Standards
International Organization for Standardization (ISO) International Electrotechnical Commission (IEC) Technical Committee (TC) 122 (Packaging) ISO/IEC Joint Technical Committee 1 (JTC 1) - IT WG 4 (Transport Labels) WG 7 (Package Labels) ISO/IEC JTC 1 Subcommittee 31 Secretariat Uniform Code Council (UCC) National Body (NB) Technical Advisory Groups (TAG) WG 1 Data Carrier WG 2 Data Structure WG 3 Conformance WG 4 RF Tags WG 5 RTLS U.S. TAG Administrator MHI Convener S. Ackley (US) Convener T. Yoshioka (JP) Convener C. Biss (US) Convener H. Barthel Convener M. Harmon Shipping Labels Code 39 DAI Linear Print Quality Air Interface API ITF Data Syntax 2D Print Quality Unique RF Tag ID 2450 MHz Product Package Marking MaxiCode Unique ID Printing Specs Defs. Logical Mem Map 433 MHz GLS Data Matrix Test Specs BC Printers Application Interface Near Field Test Specs BC Readers Dimensions & Layout EAN/U.P.C. Encoding Rules Code 128 Test Specs BC Verifiers Symbology Use (Linear & 2D) PDF417 RFID Performance QR Code RFID Conformance Print Quality Level Symbology Identifiers Label Materials License Plate Recommendations Database / EDI Issues Technical Committee (TC) 104 (Freight Containers) JWG - Supply Chain Applications of RFID

23 Types of Standards Technology Data Content Conformance
Symbology, RFID, I.C. Card Data Content Semantics (DIs or AIs), Syntax Conformance Print Quality, Test Specifications, Conformance to Air Interface Application Standards Freight container, RTI, Ship Label, Product Package, Product Mark/Tag, eSeal Most industrial and commercial manufacturers have catalog or part numbers already assigned to their products. They often question the need for an additional number, thinking that their distributors and/or end customers should use their supplier assigned catalog or part numbers. Following are some of the reasons why UPC numbers are needed: UCC.QED.I.10

24 Working Group (WG) 4 RFID for Item Management
ISO/IEC JTC 1/SC 31 Automatic Identification and Data Capture Techniques Working Group (WG) 4 RFID for Item Management

25 ISO/IEC JTC 1/SC 31 Charted to work on technical specifications “JTC 1 was established in 1987 for 'standardization in the field of information technology systems ... and equipment ...(with the exclusion of) information technology for specific applications….” [jtc1n6778] JTC 1 is comprised of both ISO and IEC SC 31 is chartered to work on automatic data capture technical specifications

26 Technical Standards Radio Frequency Identification (RFID)
ISO/IEC JTC 1/SC 31/WG 4/SG 3 RFID for Item Management Air Interface (ISO 18000) ISO/IEC Generic parameters - Air interface ISO/IEC Parameters for air interface below 135 kHz ISO/IEC Parameters for air interface at MHz ISO/IEC Parameters for air interface at 2.45 GHz ISO/IEC Parameters for air interface at MHz ISO/IEC Parameters for active air interface at MHz

27 Data Content Standards ISO/IEC JTC 1/SC 31/WG 2 & WG 4/SG 1
ISO/IEC Data Carrier/Symbology Identifiers ISO/IEC EAN.UCC Application Identifiers and ASC MH 10 Data Identifiers ISO/IEC Syntax for High Capacity ADC Media ISO/IEC Unique identification - Part 1: Transport units; Part 2: Registration procedures; Part 3: Common rules; Part 4: Unique Item identification for supply chain management; Unique identification - Part 5: Returnable transport items; ISO/IEC Data protocol: Application interface ISO/IEC Protocol: Data encoding rules and logical memory functions ISO/IEC Unique ID of RF Tag

28 Conformance Standards Radio Frequency Identification (RFID) ISO/IEC JTC 1/SC 31/WG 3/SG 1
ISO/IEC RFID Device Performance Test Methods ISO/IEC RFID Device Conformance Test Methods Part 2 - <135 kHz Part MHz Part GHz Part MHz Part MHz

29 ISO TC 122/104 Joint Working Group (JWG) (Supply chain applications of RFID)

30 The Layers of Logistic Units (Radio Frequency Identification - RFID)
Movement Vehicle (truck, airplane, ship, train) Layer 4 (433 MHz) ISO (Freight containers) Container (e.g., 40 foot Sea Container) Layer 3 ( MHz) (Other with TPA) ISO (Returnable transport items) Unit Load “Pallet” Unit Load “Pallet” Layer 2 ( MHz) ISO (Transport units) Transport Unit Transport Unit Transport Unit Transport Unit Layer 1 ( MHz) ISO (Product packages) Pkg Pkg Pkg Pkg Pkg Pkg Pkg Pkg Layer 0 ( MHz) (13.56 MHz with TPA) ISO (Product tagging) Item Item Item Item Item Item Item Item Item Item Item Item Item Item Item Item Source: Akira Shibata, DENSO-Wave Corporation “TPA” - Trading Partner Agreement

31 ISO TC 122/104 JWG project status
ISO , Freight containers — RF automatic identification IS Issued 1991, Amd CD expected ISO 17363, Supply chain applications of RFID - Freight containers DIS expected ISO 17364, Supply chain applications of RFID - Returnable transport items ISO 17365, Supply chain applications of RFID - Transport units ISO 17366, Supply chain applications of RFID - Product packaging ISO 17367, Supply chain applications of RFID - Product tagging

32 Application Standards Radio Frequency Identification - Open Standards
ISO Freight containers — Automatic identification ISO Freight Containers - Radio-frequency communication protocol for electronic seal ISO – Radio-Frequency Identification of Animals - Code Structure ISO – Radio-Frequency Identification of Animals - Technical Concept ISO – Radio-Frequency Identification of Animals - Advanced Transponders - Part 1: Air Interface ISO – Gas Cylinders - Identification and Marking Using Radio Frequency Identification Technology - Part 1: Reference Architecture and Terminology ISO – Gas Cylinders - Identification and Marking Using Radio Frequency Identification Technology - Part 2: Numbering Schemes for Radio Frequency ANSI MH RFID for Returnable Containers AIAG B-11 - Tire & Wheel Identification Standard ISO 122/104 JWG - Supply Chain Applications of RFID ISO Freight containers ISO Returnable transport items ISO Transport units ISO Product packaging ISO Product tagging

33 Sealing and anti-tamper capability
Bolt Seal Security Tag Electronically secures ocean containers, air cargo ULD containers, trailers, Monitors presence and integrity of bolt seal, generates alarm upon bolt removal or breakage Re-usable tag Reduces manual inspections Minimizes theft, loss and tampering

34 Conformance Standards
Technology Standards Radio Frequency Identification Open Standards ISO/IEC RFID for Item Management Part kHz Part MHz Part MHz Part MHz Part MHz (active) Data Standards ISO/IEC Application Identifiers & Data Identifiers ISO/IEC Syntax ISO/IEC Unique Item Identification ISO/IEC Data Protocol: Application Interface ISO/IEC Data Protocol: Data Encoding Rules and Logical Memory Functions ISO/IEC Unique Identification for RF Tags Conformance Standards ISO/IEC RFID device conformance test methods (at) Part kHz Part MHz Part MHz Part MHz Part MHz (active)

35 ISO Standards ISO has published air interface, data structure, and conformance standards ISO (JTC 1/SC 31) has 28 countries that actively participate in standards development including China, Korea, and Japan ISO (JTC 1/SC 31) has 28 other regional and international organizations with which it cooperates in liaison ISO follows established rules and engages all member countries in voting and comments to developing standards ISO is open

36 The Five Cent Tag

37 Instant Checkout…A Dream Come True??
“Chip to remove shopping blues” —Post-Courier, January 1994 “1.5¢ electronic bar code announced” —San Francisco Chronicle “Tiny microchip identifies groceries in seconds.” —Chicago Tribune “Scanning range of four yards” —NY Times “Checkout in one minute” —The Times, London

38 Inflated Expectations
The Hype Cycle Peak of Inflated Expectations RFID Today! Visibility Plateau of Productivity Slope of Enlightenment Jackie Fenn noted that there was an inverse relationship between the publicity a technology receives and its level of usage. When a technology is new, it is exciting and by definition novel, and there is a lot of interest in it. It gets a lot of exposure. The press write about it, the analysts pontificate on it, the consultants start practices based on it. Gartner's hype cycle is actually a five-part sequence: Technology trigger. A breakthrough, public demonstration, product launch or other event that generates significant press and industry interest. Peak of inflated expectations. A phase of overenthusiasm and unrealistic projections during which a flurry of publicized activity by technology leaders results in some successes but more failures as the technology is pushed to its limits. The only enterprises making money at this stage are conference organizers and magazine publishers. Trough of disillusionment. The point at which the technology becomes unfashionable and the press abandons the topic, because the technology did not live up to its overinflated expectations. Slope of enlightenment. Focused experimentation and solid hard work by an increasingly diverse range of organizations lead to a true understanding of the technology's applicability, risks and benefits. Commercial off-the-shelf methodologies and tools become available to ease the development process. Plateau of productivity. The real-world benefits of the technology are demonstrated and accepted. Tools and methodologies are increasingly stable as they enter their second and third generation. The final height of the plateau varies according to whether the technology is broadly applicable or only benefits a niche market. Trough of Disillusionment Technology Trigger Time Source: Jackie Fenn, Gartner Group

39 Which Technology How far? How fast? How many? How much?
Geometry of tagging space Interferers (physical and radio)

40 How far, how fast, how many, how much, attached to what?

41 Recent Developments 860 - 960 MHz
Includes Industrial, Scientific, & Medical (ISM) band Technology enhancement (frequency agile and listen before talk) permits MHz used in Region 2 (U.S.) MHz nearing finalization in Region 1 (Europe) MHz regulations finalized in Region 3 (Korea) MHz regulations in process in Region 3 (Japan - Jul ‘05) Engaging China to develop “in band” regulations (regulations expected by 1 September 2005) ISO/IEC ( MHz) re-opened to address new developments, such as Gen2

42 Recent Developments 433.92 MHz
ISM band permitted by ITU (implemented in Region 1 but for different parameters in Regions 2 and 3) ITU receptive to Regions 2 and 3 supporting Region 1 for a 433 MHz allocation for freight containers Chairman of ISO TC 104 (Freight containers) has made request to ITU and WCO to embrace both passive ( ) and active ( MHz) calling out and Approved in Korea Approval expected in Japan (Nov ‘05) Received support through new (April 2004) FCC rules, specific to RFID, that increases both power and duty cycle. Engaging China to develop 434 MHz in RFID regulations (regulations expected by 1 September 2005)

43 China China is sensitive to foreign Intellectual Property
Technology I.P. Subscription I.P. Access I.P. As a WTO member China will most likely accept the technology with some concessions from I.P. holders China has its own National Product Code and D-NPC will most likely be preferred to EPC China considers its data and communications to be national security issues so the data base will be Chinese in China and not likely EPCIS. China is pushing for an Asian standard that will most likely include , , NPC, their own R1 Data Harmonization Network

44 RFID Experts Group (REG)

45 RFID Experts Group Formed in February 2004 to assist DoD with RFID implementation Under the AIM Global umbrella in July 2004 Reaching out for international cooperation Europe Japan Korea China

46 REG Working Groups (WGs)
WG 5-I: Interrogator System Implementation & Operations WG 5-B: Back-up WG 5-L: Enabled Labels & Packaging WG 5-R: Recyclability WG 5-Q: Tag Quality WG 5-E: Education & Certification WG 5-G: Global Operation (Regulatory) WG 5-P: Privacy WG 5-F: Safety (Public Policy) WG : 5-C: Security WG : 5-T: Sensors and Transducers WG 5-S: Technology Selection WG 5-C: Software & Middleware

47 ISO/IEC Implementation TRs
ISO/IEC , Information technology — Radio frequency identification for item management — Implementation guidelines – Part 1: RFID-enabled labels and packaging Source: REG WG 5-L & 5-B ISO/IEC , Information technology — Radio frequency identification for item management — Implementation guidelines – Part 2: Recyclability of RF tags Source: REG WG 5-R ISO/IEC , Information technology — Radio frequency identification for item management — Implementation guidelines – Part 3: RFID interrogator/antenna installation Source: REG WG 5-I

48 Recommendations Commence the development of industry standards using ISO 1736x as model ISO Supply chain applications of RFID - Freight containers ISO Supply chain applications of RFID - Returnable transport items ISO Supply chain applications of RFID - Transport units ISO Supply chain applications of RFID - Product packaging ISO Supply chain applications of RFID - Product tagging Use common air interface, syntax, and semantics Data structures can follow existing suite of industry bar code standards (plus unique identification)

49 ???

50 Thank You!!!


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