ibm rfid briefing

IBM RFID Solutions

© 2005 IBM Corporation

IBM RFID Briefing

Naresh MalikAssociate [email protected]

June 2005

IBM RFID Solutions

© 2003 IBM Corporation2

Contents

� What is RFID and why now?

� Market status and Examples of RFID

� The vision for RFID, its Benefits and Current Challenges

� Steps to Implementing RFID

� Other Applications of RFID

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What is RFID?

� Identifies an object or person using radio frequency transmission

� Programmable to receive, store, transmit data, such as serial numbers, place of assembly, or personal information such as healthcare records

RFID TAGIntermecUAP-2100

RFID READER

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What’s the RFID Advantage over Barcodes?

Source: IBM Business Consulting Services analysis, EPCglobal

Barcode / UPC RFID Tag

Efficiency

Dependability

Data Capacity

Flexibility

Ability to read one tag at a time (line of sight required)

Labels easily damaged

Limited amount of data can be assigned

Static information

Ability to read multiple tags simultaneously (no line of sight required)

Tags less susceptible to damage

Significantly higher data capacity to capture detailed information about product

Potential for read/write capability, tags reusableDynamic data access in business applications

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Key Benefits of RFID

Key Benefits� Collects accurate information quickly� Automates and speeds processes� Greatly increases visibility through supply chain� Reduces inventory loss and shrinkage� Improves productivity


RFID READER

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RFID READER

��RFID TAGIntermec

UAP-2100


RFID READER

Reading Tags – Passive Tags

The reader calls out with a radio wave that looks for a tag.

The tag sends back data to uniquely identify the object.

IBM RFID Solutions


��

IntermecUAP-2100

RFID READER

Reading Tags – Active Tags

The reader listens for a radio wave emitted from a tag.

The reader requests the tag to send back data to uniquely identify the object.

RFID TAG

RFID TAG

IntermecUAP-2100

RFID READER

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RFID Systems—Three Main Components

The Tag� Passive tag� Active tag� Semi-passive tag

The Reader� Fixed� Portable

The Middleware� To communicate between readers and

business applications, ERP systems� To manage readers and other devices� Can also manage barcode or other data

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Tag Types

Class Comments

Class 0

Class I

Class II

Class III

Class IV Very long read range >300’

Longer read range than passive

Can monitor temperature, pressure, vibrations

Write once read many times Gen 1.0Gen 2.0 are interoperable

“Read-only” passive identity tags

Class V

Read only passive identity tags

Write once passive identity tags

Passive tags with added functionality,e.g. memory or encryption

Semi-passive RFID tagsBattery Assisted – reader activates, battery powers

Active tags – communicate with readers and other tags on the same frequency band. Battery powered

Essentially ‘readers’ – can power class I, II and III tags, as well as, communicating with class IV and with each other

Type

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Tag Readability Depends on Physics and the Environment

Frequency

125 kHz(LF)

13.56 Mhz(HF)

850 - 950 MHz(UHF)

2.45 GHz

Characteristics

�Read Range - up to 18"�Good Penetration in Moisture�Slow Data Rates�Costly Tags�No Anticollision – single tag reads

�Read Range up to 3'�Good Penetration in Moisture�Poor Performance near Metals �Many Standards in Financial Market�Anticollision (10-40 tags / sec)

�Read Ranges up to 15'�Fast Data Rates�Good Performance near Metals�Anticollision (50 tags / sec)

�Read Range up to 3'�Good Performance in Metal �Environments�Poor Performance in Moisture �Fast Data Rate – anticollision 50 tags/s

Applications

�Access control �Smart cards�Patient ID bands�Drug labeling

�Real Time Location�Tracking Pallet & cases

�Metal mount�Label insert�Hardened tag format�Reusable form factor

�Access control �Smart cards�Lab specimen tracking�Supply chain item ID

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RFID is not New - What Makes RFID Relevant Now?

� New Technology– Anti-collision algorithms– Multiple frequencies– Small chips - silicon core of a radio tag is now <0.4mm– Tags can be purchased for less than $0.25 in quantity– Antenna can be printed on product’s packaging – Readers on a single chip

� New Standards– Auto-ID Center migration to EPCglobal (Auto ID/UCC/EAN)– Assign each object a unique identifier (ID)– Data network to “Identify any object anywhere anytime automatically”– Over 100 CPG/Retail companies collaborating to create interoperable standards– Global standards for Radio Frequency Identifications (RFID)

� New Economics– High quantity/low price spiral– New applications & decisions based on visibility into supply chain– Cost: A few cents per tag (the bottom line)

RFID is small enough, fast enough, and cheap enough to do real work with today

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The “Object Class” is used by an ePC

managing entity to identify a class or

“type” of thing. Object Classes could include

case stock keeping units of consumer-

packaged goods and component parts in an

assembly.

The “Serial Number” is unique within each object class. The managing entity is

responsible for assigning unique –non-repeating serial numbers for every

instance within each object class code.

Electronic Product Code (ePC)

Source: EPCglobal – EPC Tag Data Standards Version 1.1 Revision 1.23

21.203D2A9.16E8B8.719BAE03C

The ePC can catalog over 1.3 x 1016 discrete items annually (about the number of grains of rice consumed globally each year)

The “Header” defines the overall length, identity type, and

structure of the ePC tag encoding,

including a filter value, if any.

The “General Manager Number” identifies

essentially a company, manager or

organization; that is an entity responsible for

maintaining the numbers in subsequent

fields – Object Class and Serial Number.

General Mgr28 bits

(>268 Million)

General Mgr28 bits

(>268 Million)

Header8 bits

Header8 bits

Object Class24 bits

(>16 Million)

Object Class24 bits

(>16 Million)

Serial Number36 bits

(>68 Billion)

Serial Number36 bits

(>68 Billion)

ePC is flexible enough to capture identification information at any level and is supported by current standards bodies like UCCnet and EAN

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1 Internal ePC Network

Physical Product Flow Physical Product Flow

EDI Transactions EDI TransactionsRetailer/

Customer

Distributor, 3PL,

Contract Manufacturer

Manufacturer

1 1 1

Key Question: When will companies move from step 2 to step 3?

2 Trading Partner to Trading Partner ePC Network

2ePC Information ePC Information

2

3 Industry-wide ePC Network

3ePC

Information Service

(PML/ONS)

ePC Information ePC Information

ePC Information

ePC Information

Query on an ePC Tag

The EPC Vision is Real-time Tracking of Inventory

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Key Market Drivers are Catalysts for RFID Adoption

� Regulation– TREAD Act to improve tire safety– FDA focus to reduce counterfeiting of pharmaceuticals

� Cost Savings & Productivity from accurate near real time data capture– CPG compliance to retailers & DoD for supply chain applications– Tracking and location (railcars, spare parts for repairs, etc.)– Increasingly ‘work in process’ management

� Safety & security– Higher accountability for hazardous materials, chemicals, gases– Theft of high value items– DoD (asset location, tamper proofing)

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Current Market Status of RFID

� Compliance mandates by Wal-Mart, DoD, Target, Albertson and Metro–targeted from January to April 2005 with aim to reduce out of stocks

� Other retailers are active but no public mandates– Home Depot, Lowes– Best Buy– Sears/Kmart

� Most current are pilots within 4 walls � Careful investments due to small perceived ROI in short term� Hesitancy to scale solutions too quickly due to immature technology� Standards for readers, tags and data sharing still being formed� Foresee 3-7 year time frame for full scale implementations with data sharing

across partners

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The RFID Applications can be Clustered into Five Areas

Apply RFID technologies to the in process manufacturing processes to enable effective inventory tracking and management, product line efficiencies, and JIT manufacturing advantages. Includes: Automation of assembly, Component production, Production of vehicles.

Work In Process

Manufacturing

Optimize use of physical assets that are needed to make, and to deliver products and services to customers - knowing where an item/ vehicle is on route, and also tracking of depreciating good – tools, HW, equipment, leased items. Can involve RTLS.Includes: Equipment tracking, Fleet management, Vehicle maintenance management, Track & Trace, Military and defense tracking, Spare parts tracking, PCs and tolls

Asset Management

Monitoring peoples movements, personal security, convenience and Point of sale applications.Includes: Personal identification and authentication, personal security and safety, Patient ID and tracking, Maintaining shelf stock, Innovative payments, Return management,..

Consumer Applications

Monitor the movement and use of valuable equipment and personal resources. Includes: Access control and tracking, Animal tracking, Automobile ignition security, Baggage handling systems, Inventory control, Parking lot security and access, Shoplifting prevention, electronic article surveillance, Vehicle security.

Leverage RFID technologies to transform supply chains by providing end-to-end visibility of goods and enabling improved inventory management.Includes: Supply Chain Mgmt using RFID for Warehousing, pallet/goods tracking, Inventory Tracking, Track & Trace, Sensor/ sensing applications and counterfeiting.

Security & Access Control

Supply ChainManagement

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The Healthcare Industry: Opportunities for RFID

� Improving patient throughput, asset utilization and cost of labor– “[Hospitals] cannot find 15-20% of the devices they own.” Arthur Gasch, Medical

Strategy Planning– Surgical equipment & devices not matched to patient schedule

� Improving quality of care and patient safety– Adverse Drug Events (ADE) on the rise– Data records for equipment maintenance– Matching of patient data records to diagnosis and treatment (CPOE)

� Goals are already identified, eg. JCAHO 2004 National Patient Safety Goals– Goal 1: Improve the accuracy of patient identification.– Goal 3: Improve the safety of using high-alert medications.– Goal 4: Eliminate wrong-site, wrong-patient and wrong-procedure surgery

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The Pharma Industry also has Mandates to Reduce Counterfeiting and Distribution Costs

� Item level EPC Tagging– Wal-Mart CII Initiative– FDA Recommendation– Purdue pilot – 2004– Pfizer and GSK – 2005

� EPCglobal Healthcare Workgroup (UCCnet and EAN)– Standards– ePedigree

� Paper Pedigree Required for all Wholesale drugs in FL 7-1-06– Other States Following: CA, NV, GA

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Examples of RFID Applications

Supply Chain� 3rd party JIT order fulfillment for surgical operations� Tracking devices with field sales reps� Tracking leased equipment and repairs� Product recall and lifecycle management

Smart Shelves� Consumable inventory management� Tracking specimens� Safe and secure management of drugs and

medications

Meds Administration� Clinician scans ID badge to authenticate and access

information and clinical data.� Caregiver scans the patient’s wristband to validate id and

review current orders.� Bar-coded medications can be scanned to verify that patient,

medication, dose, and timing are consistent and accurate. � Clinician reviews the input to confirm and sends info directly

to the patient’s medical record.

Patient Safety and Security� Passive Patient ID Bands� Active Patient ID Bands� Implantable RFID device� Associate mothers and new borns� Facilities secure access for infirm or cognitively deficient

Asset Tracking� “Tag” attaches to asset with very high

strength adhesive, and tamper-proof detection switch.

� RTLS

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Surgical Site Identification – SURGICHIP

http://www.surgichip.com FDA Approved 2004

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“Tag” attaches to asset with very high strength adhesive, and tamper-proof detection switch.

Baxter’s medication delivery pumpusing Sovereign’s Tracking System

Asset Tracking Using Active RFID

The software generates a geo-referenced map or floor plan of the tracked area. The assets are then placed on the floor plan in real-time with an average resolution of five to ten feet, depending on vendor technology and infrastructure.

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The Challenges between Reality and Vision

� Physics of tags and readers is an art rather than a science

� Ability of IT to integrate potentially large data volumes and scale solutions for data sharing

� Reluctance to invest due to immature technology and uncertain ROI

� Managing impact on organization, people and processes since technology is only the enabler

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Our Point of View

� RFID will be a powerful enabling technology that, when coupled with process change, will transform supply chain operations

� Companies should take an incremental approach to adopting the technology -standards & technology capabilities will evolve over time

� Componentized solutions, that are designed for scale and future growth, should be considered

� Healthcare, medical devices and pharmaceuticals is particularly appealing for RFID because the ‘high value’ of items, inventory, safety justifies the investments more easily than supply chain applications

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