1. 1 Fall 2007RFID – Technical Issues RFID Technical Issues Operations & Decision Technologies Department Kelley School of Business Indiana University

2. 222 Fall 2007RFID – Technical Issues What is RFID? RFID stands for Radio Frequency Identification It is a technology that permits contact-free transfer of data using a radio frequency transmission The heart of RFID technology is a transponder, which is a silicon chip attached to an antenna. It is called a tag. The tag can be attached to items that are to be tracked A numeric code is stored on the chip. This code is called the electronic product code (EPC) The code is read when communication takes place between a reader (interrogator) and the tag

3. 333 Fall 2007RFID – Technical Issues RFID Technology is Not New!! Tracking livestock (Approximately 15 years) Contactless payments (Approximately 5 years) ExxonMobil Speedpass Tollbooth lanes Event access (Ticketing) Building access control Has been used in manufacturing to track large components such as engines and chassis Has been used for the international postal system for monitoring the quality of service

4. 444 Fall 2007RFID – Technical Issues Why Now? The creation of the Electronic Product Code (EPC) Technology changes EPCGlobal Generation 2 standard (Gen 2) The price of the tags has been coming down. However, price is still an issue Mandates by various organizations (European Parliament, DOD, Wal-Mart, Target, etc.)

5. 555 Fall 2007RFID – Technical Issues The Wal-Mart Mandate Wal-Mart required its top 100 suppliers to be RFID-enabled at the case and pallet level by January 2005 The rest of its suppliers had to be compliant by December 2006 Wal-Mart did not endorse specific RFID hardware or software Expected suppliers to perform their own tests of RFID technologies Will impact 10,000+ Suppliers

6. 666 Fall 2007RFID – Technical Issues Advantages of RFID Provides non-contact, non-line-of-sight operation Is difficult to counterfeit Is a highly capable and proven technology for a wide range of applications Provides an instantaneous read of code

7. 777 Fall 2007RFID – Technical Issues RFID Technology is Maturing Technology has improved significantly Standards are being adopted and agreed upon Some markets are maturing Other markets being identified for possible applications Significant impact expected in SCM

8. 888 Fall 2007RFID – Technical Issues RFID Systems Tags are attached to objects Each tag has a certain amount of internal memory in which it stores information about the object This information could be unique ID numbers, details about manufacture date and product composition

9. 999 Fall 2007RFID – Technical Issues RFID Systems When the tags pass through a field generated by a reader, they transmit information back to the reader, identifying the object. Until recently the tags and readers were used in systems with low volumes but the objective is to use them in high volume situations

10. 10 Fall 2007RFID – Technical Issues Possible Roadblocks Tag reading efficiencies and prices Standards - Applications are global but the basis of radio regulations are national and even regional Interoperability of the technologies through the supply chain Who bears the cost of the RFID system in the supply chain?

11. 11 Fall 2007RFID – Technical Issues Possible Roadblocks The barrier points for tags are 2 meters for range and 3GHz for frequency. Below these points, it is possible to make a low cost tag system. Beyond these points, technologies get more expensive IT Infrastructure to handle the large amounts of data Change of work and labor practices Privacy and ethical issues Security issues

12. 12 Fall 2007RFID – Technical Issues Improvements in RFID Technology From read-only tags to read-write From no memory in tags to 2K, 8K and in some cases 16K bits Better authentication between tag and reader Anti-collision algorithms for multiple tag reads in the field More sophisticated security algorithms

13. 13 Fall 2007RFID – Technical Issues An RFID System Host Computer Control Module Broadcast Interface Transponder Reader Data Transmitted Request Transmitted Data Requested Data Received Command to Retrieve Data Data sent to Host Internet / Intranet

14. 14 Fall 2007RFID – Technical Issues RFID Tags Tags can be either active (powered by a battery) or passive (powered by the reader field) Tags can also be semi-active or semi- passive (same type of tag). Such tags have batteries but are only activated by a reader’s electromagnetic field Tags come in various forms including smart cards, tags, labels, watches, and even embedded in cell phones

15. 15 Fall 2007RFID – Technical Issues Structure of a Tag Chip + Antennae + Substrate = Tag Chip or Integrated Circuit (IC) Antenna

16. 16 Fall 2007RFID – Technical Issues An RFID Tag

17. 17 Fall 2007RFID – Technical Issues RFID Operating Frequencies Low Frequency (125-134kHz) Used in access control, livestock, race timing, pallet tracking, wireless commerce High Frequency (13.56 mHz) Smart labels – Used in supply chain, wireless commerce, ticketing, product authentication Ultra-High Frequency – UHF (900+mHz) Emerging technology Microwave (2.45 gHz) Not widely deployed

18. 18 Fall 2007RFID – Technical Issues RFID Transponder or Tags It is a micro-chip with a unique ID code (UID) and memory It also has an antenna which is usually copper or aluminum Active tags versus passive tags Some chipless tags – very low cost, short read range tags

19. 19 Fall 2007RFID – Technical Issues Readability Issues Dead Tags – Unreadable Quiet Tags – Readable but only at a short distance Quality of tags is an issue Readability rates of higher quality tags are at about 97% to 98%. That translates to about 2 Sigma

20. 20 Fall 2007RFID – Technical Issues Electronic Product Code Header: Identifies the EPC’s Version Number EPC Manager: Indicates the enterprise using the EPC number Object Class: Refers to the class or category of a product (similar to a Stock Keeping Unit – SKU) Serial Number: Identifies a unique item being tagged 647.37000.123456.100000000 Header 8 Bits EPC Manager 34 Bits Object Class 20 Bits Serial Number 34 Bits

21. 21 Fall 2007RFID – Technical Issues Some Passive Tags

22. 22 Fall 2007RFID – Technical Issues Some Active Tags

23. 23 Fall 2007RFID – Technical Issues Tag Packaging Formats Weather-proof or environment-proof enclosures Pressure sensitive labels Credit card size flexible labels Tokens and coins Embedded tags Paper tags

24. 24 Fall 2007RFID – Technical Issues Transponder/Tag Classes Read Only Write Once Read Only Read/Write Read/Write with On-Board Sensors (for recording parameters such as temperature, pressure, etc.) Read/Write with Integrated Transmitters – Can communicate with other tags and devices without the presence of a reader

25. 25 Fall 2007RFID – Technical Issues Low Frequency Tags Typical Maximum Read Range - <0.5 m Relatively expensive even at high volumes. Low frequency requires a longer more expensive copper antenna. Least susceptible to performance degradations from metal and liquids Generally passive tags Applications include access control, animal tracking, POS applications including SpeedPass Data rate slower than other frequencies Passive tag size is larger than other frequencies

26. 26 Fall 2007RFID – Technical Issues High Frequency Tags Typical Maximum Read Range – Approx 1m Less expensive than low frequency tags. Best suited for applications that do not require long range reading of multiple tags Generally passive tags Applications include item-level tracking such as baggage handling (non-US) Data rate slower than other ultra high frequencies (UHF) Passive tag size is larger than UHF

27. 27 Fall 2007RFID – Technical Issues Ultra High Frequency Tags Typical Maximum Read Range – Approx 3m In large volumes, UHF tags have the potential to be cheaper than either LF or HF tags. Offer balance between range and performance Active tags with integral battery or passive tags Applications include pallet tracking and item- level tracking such as baggage handling (US) Data rate faster than other LF or HF tags Passive tag size is smaller than LF or HF tags

28. 28 Fall 2007RFID – Technical Issues Microwave Tags Typical Maximum Read Range – Approx 1m Very similar to UHF tags but with faster read rates. Most susceptible to performance degradations from metal and liquids, particularly metal Active tags with integral battery or passive tags Applications include SCM And toll collection Data rate faster than other ultra high frequencies (UHF) Passive tag size is smaller than UHF tags

29. 29 Fall 2007RFID – Technical Issues RFID Readers Readers are radio frequency devices that: Transmit and receive RF signals Contain a control unit to execute commands Incorporate an interface to transfer data Receives commands from a Host computer Responds to software commands from Host

30. 30 Fall 2007RFID – Technical Issues A Passive and an Active Reader

31. 31 Fall 2007RFID – Technical Issues Reader Characteristics Stationary or Hand-held Multi-protocol? Weather-proof? Read ranges vary from a few centimeters to a few meters Read range is dependent upon broadcast signal strength, size of broadcast antenna, size of transponder antenna, and the environment

32. 32 Fall 2007RFID – Technical Issues Antenna Characteristics Transmits and receives RF signals Typically made of copper or aluminum, new technologies emerging for printed antennas Stationary or Hand-held Weather-proof? Fixed or Turnable

33. 33 Fall 2007RFID – Technical Issues An Antenna Tunnel Verification tunnel reads Verification AntennasAntennas

34. 34 Fall 2007RFID – Technical Issues RFID System Issues Read Distance Requirements Long read range Short read range Frequency All frequencies have their pros and cons ISO Standards Proprietary or Standards-based

35. 35 Fall 2007RFID – Technical Issues RFID System Issues Government Regulations Varies from country to country Multiple Tag Reading in Same Field Anti-collision algorithms Hardware set-up Environment can affect performance Transponders

36. 36 Fall 2007RFID – Technical Issues RFID Players – Hardware Alien Technology Intermec Technology Matrics, Inc. Savi Technology SAMSys Technologies Symbol Technologies Texas Instruments

37. 37 Fall 2007RFID – Technical Issues RFID Players - Software Manhattan Associates SAP RedPrairie JDA Software Manugistics EXE Technologies

38. 38 Fall 2007RFID – Technical Issues RFID - Middleware TIBCO Software Sun Microsystems webMethods GlobeRanger ConnecTerra

39. 39 Fall 2007RFID – Technical Issues RFID – Systems Integrators IBM Global Services Accenture Cap Gemini Ernst and Young Sapient Kurt Salmon Associates The ePC Group