RFID Technical Issues

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

2. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. An RFID System Reader Command to Retrieve Data Control Module Host Computer Data Requested Data Received Data sent to Host Broadcast Interface Request Transmitted Internet / Intranet Transponder Data Transmitted

14. 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. Structure of a Tag Chip + Antennae + Substrate = Tag Chip or Integrated Circuit (IC) Antenna

16. An RFID Tag

17. 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. 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. 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. Header 8 Bits EPC Manager 34 Bits Object Class 20 Bits Serial Number 34 Bits 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

21. Some Passive Tags

22. Some Active Tags

23. 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. 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. 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. 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. 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. 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. 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. A Passive and an Active Reader

31. 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. 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. An Antenna Tunnel Antennas Verification tunnel reads

34. 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. 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. RFID Players – Hardware • Alien Technology • Intermec Technology • Matrics, Inc. • Savi Technology • SAMSys Technologies • Symbol Technologies • Texas Instruments

37. RFID Players - Software • Manhattan Associates • SAP • RedPrairie • JDA Software • Manugistics • EXE Technologies

38. RFID - Middleware • TIBCO Software • Sun Microsystems • webMethods • GlobeRanger • ConnecTerra

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