A SURVEY OF APPLICATIONS AND REQUIREMENTS OF UNIQUE IDENTIFICATION SYSTEMS AND RFID TECHNIQUES R 蘇昱彰 1

Outline  1. Introduction  2. Application cases  3. Requirements of identifier-based operations  4. Information interchange issues of identifier-based operations in supply-chains  5. Costs of application  6. Identifier-based operations  7. Framework for choosing an auto-ID technique in the supply chain  8. Conclusion 2

Introduction(1/2)  In today’s business environment, systems to plan and control the flow of goods, based on paper documents are increasingly being replaced by automated computer systems.  Those images and records which we could use for recording must be updated as the goods flow through the logistical chain.  WHAT is IDENTIFICATION  The real goods must be recognized and matched with their computer record. 3

Introduction(2/2)  Identification systems often include sets of specific labels or tags that are attached to the goods to facilitate the identification process.  Logistical communities must frequently re-assess the selections made for ID technology to be used in their environment.  In this paper a number of ID technologies are assessed and compared, and matched against the requirements of modern logistical chains. 4

Application cases(1/2) 5  All industrial and governmental operations that need to be accounted for require the tracking, and, consequently, the identification of products, assets, documents or persons.  Automatic identification system is generic and potentially multi-purpose and if it is possible to design a system so that multiple operations may benefit from it, and then the costs are saved and implementation is accelerated.

Application cases(2/2) 6  There is an overview of the application areas of Auto-ID systems. Application areaExample ManufacturingInventory tracking : DELL (RFID) Tracking manufacturing processes : Volkswagen (RFID) WarehousingBeverages : Coca Cola (RFID) Transportation, trafficSmart key : Toyota (RFID) Parcel delivery : FedEx (RFID) RetailingGeneral merchandise : Wal-Mart (RFID) HealthcareUse in humans : the American Food and Drink Administration (RFID)

Requirements of identifier-based operations(1/2) 7  The most fundamental requirement to be met before establishing operations based on identification is the agreement upon a common identification system, consisting of:  one or more standard types of physical ID carrier  one or more ID allocation scheme which all users can interpret

Requirements of identifier-based operations(2/2) 8  Properties of identifiers used

Information interchange issues of identifier- based operations in supply-chains(1/2) 9  A number of issues influence the selection of an identification based system.  There are three main factors:  Reliability Tag/reader reliability Network issues  Security Information piracy at tag/reader level Information piracy at network level  Interoperability

Information interchange issues of identifier- based operations in supply-chains(2/2) 10  Interoperability  For an identification system, one or more identifier formats must be agreed upon, which all parties concerned can read and interpret.  But it is difficult for RFID, This is due to the historic fact that three frequency allocation schemes cover the world with respect to frequency allocation.  Two major groups of standards are competing worldwide: one is EPC created by the AutoID Center and receiving the support of UCC and EAN the other is the ISO-specified set of standards.

Costs of application(1/4) 11  The costs of applying a given system of identification depend on two groups of factors:  costs of the equipment RFID, Barcodes, Electronic identifiers  costs of use

Costs of application(2/4) 12  costs of the identifiers  The highest costs are encountered in the case of RFID which, at present, still limit the profitable applicability of RFID, especially in supply chains.  Meanwhile, other technologies with organic material are also emerging in an attempt to reduce RFID tag manufacturing costs.  One of these is the MaDriX project, it will rely on the plastic semiconductor technology.  International Paper and OrganicID, where the use of organic materials

Costs of application(3/4) 13  Barcodes may be already printed onto the packaging box, and this solution is not associated with costs higher than a few cents per label, as both the physical carrier and the writing costs are low.  Electronic identifiers associated with files, impose negligible costs, since they can be stored on the same data carrier as the identified files themselves, and they also can be represented in human- readable form.

Costs of application(4/4) 14  Costs of use  RFID The RFID technology is outstanding among automatic identification techniques with respect to low expenses associated with reading. Tags can be read without direct optical line-of-sight which often eliminates delays required for additional material handling, and the collision mitigation algorithms allow a transceiver to read several tags within the same pass.  Barcodes The fact that optical reading requires a direct line-of-sight. In 2006 year

Identifier-based operations 15  Requirements  For the use of automated identification, the following requirements must be met: Use of a database connected to individual readers.  Advantages  Using the automated identifiers can lead to a quantitative improvement owing to the stock information update becoming faster, more efficient, more exact and less prone to failure.  Costs and risks  The costs and possible risks associated with maintaining the facility-level database remain basically the same

Framework for choosing an auto-ID technique in the supply chain(1/5) 16  Three aspects are crucial for a framework for choosing an auto-ID technique. Step1 Step2 Step3

Framework for choosing an auto-ID technique in the supply chain(2/5) 17  Strategic analysis  Irrespective of the chosen auto-ID technology, companies need to understand how their supply chain looks like, how they are connected, what business processes they integrate and what information they share.  We can use the framework of Lambert and Cooper, and it consists of three parts: The supply chain network structure The supply chain business process The supply chain management components

Framework for choosing an auto-ID technique in the supply chain(3/5) 18

Framework for choosing an auto-ID technique in the supply chain(4/5) 19  Technological analysis  The starting point of the technical part is the translation of the strategic decisions into a list of technical requirements.  After the technical requirements are clear, different possible solutions for auto-ID systems in the supply chain can be developed.  An analysis can be made about how the existing barcode system(s) work(s) and how it can be changed to meet the new requirements.  The different solutions should be analyzed on feasibility and costs in order to find a preliminary best solution.

Framework for choosing an auto-ID technique in the supply chain (5/5) 20  Decision process  It seems the decision process is the last step, it is actually an ongoing process to get to the final decision.  Auto-ID systems in the supply chain are of strategic importance, because high risks are involved and they are relatively expensive to implement.  The requirements are the basis for different possible solutions and the most feasible solutions are selected.  After the testing phase the final go or no-go decision can be made.

Conclusion(1/2) 21  Radio Frequency based identification is feasible for overcoming the problems induced by manual identification.  When operations need automatic identification, RFID is a technology with acknowledged great potential, feasible and competitive in many application areas  Selection of RFID technology should take into account future developments: in advancement of logistical control but also in technological possibilities and costs.

Conclusion(2/2) 22  As applications of RFID are more and more common, security becomes an important issue.  Application areas of RFID technology will proliferate.

Thanks for listening. 23

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