RADIO FREQUENCY

IDENTIFICATION
Lee Eu Harn
U076848M
ME4262
 Table of Content

Title Page number

1.0) What is RFID 3
2.0) Types of RFID tags 4
3.0) Basic Concepts 5
4.0) Information Storage 6
5.0) Applications 7
6.0) RFID vs Barcode 9
7.0) RFID in Manufacturing 11
 Title Page number
7.1 RFID brings better 14
transparency, traceability
and inventory management

7.2 RFID lowers labor cost and 17

human error
7.3 RFID for lower lead time 20
7.4 RFID for effective product 24
recall
8.0) Challenges 25
9.0) Conclusion 28
10.0) References 29
 What is RFID?
 Small silicon microchips attached to an antenna

 Can be as small as few millimeter square

 Stores unique information as code that can be

read be a reader

 Information can be read up till hundreds of

meters away
Types of RFID tags
Active Passive

Own power source No internal power source

Long range ( >100m) Short range(few meters)

Expensive Much cheaper

Large data storage Small data storage

capability(128kb) capability(128b)
*note that semi-passive tag exists and its feature is in between that of
active and passive tag
Basic Concepts
1. Antenna on the transceiver
emits radio signals to activate
the RFID tag

2. RFID tag that passes through

the electromagnetic zone
detects activation signal.

3. The reader decodes the data

encoded in the tag's integrated
circuit and the data is passed to
the host computer for
processing.
 Information Storage
 RFID stores information in the form of Electronic Product Code
(EPC). An example of a 96 bit EPC structure is shown below

1. Tag version number – identifies active or passive tag

2. Domain manager – manufacturer of the product
3. Object class – type of product
4. Unique identifier – uniquely identifies an individual product
 Applications
 Inventory management for retailers

 Tracking system in logistics

company

 Animal identification
 Applications
Inventory management in library

Public transit payment system

Deters theft
 RFID vs Barcode
 

Line of sight No line of sight requirement Line of sight required

Read range Long read range Short read range
Data storage More data can be stored Stores relatively lesser data
Read/write Have read/write capability Read only
capability
Read rate High. Multiple tag read/write Low. Tags can only be read
manually, one at a time.
Locating Able to locate the specific As line of sight required. Real
feature location of an item time position cannot be
determined
 RFID vs Barcode

Durability More robust in harsh Easily damaged or removed;

conditions cannot be read if dirty or greasy
Price Expensive Cheap

Human capital Minimal labour requirements Large labour requirement as tags

must be scanned individually
Security High as data can be encrypted Low as data can be counterfeited

Triggering Can be used to trigger certain Cannot be used to trigger events.

capabilities events (like door openings,
alarms, etc.)
 RFID
IN
MANUFACTURING
 Better
Better
Transparency, Reduce Labor
Transparency,
Traceability and Reduce
Cost Labor
and Human
Traceability
Inventory and CostErrors
and Human
Inventory
Management Errors
Management

RFID in
RFID in
Manufacturing
Manufacturing

Effective Product
Lower Lead Time Effective
Lower Lead Time RecallProduct
Recall
RFID for Better Transparency and
Inventory Management

1.) Able to conduct on-going inventory cycle counts

a.) Having accurate status on the location and amount of raw materials allow
you to control inventory levels and accurately manage the master
production schedule (MPS). Furthermore, it allows material to be
automatically and continuously tracked without labor limitations

b.) As inventory can be tracked, when the inventory drops below a certain
level, RFID can trigger the system to replenish the inventory at the right
time. This will better monitor demand for certain products and place orders
to prevent an out-of-stock situation. An example is illustrated in the next
slide.
 REORDER ORDERING TRIGGER
LEVEL

DEPLETION OVER
TIME

OPTIMUM INVENTORY LEVEL

INVENTORY REPLENISHED BY
SUPPLIER

c.) As items are continuously monitored, inventory shrinkages including

thefts, misplacement of items can be avoided
3.) Perishable inventory control
 
a.) Perishable products may deteriorate over time and if the information
about the useful life is not updated, an outdated item may be delivered to
customer. This creates additional cost of replacement and loss of goodwill.

RFID can track and alter the information of a product in real time without
human involvement and hence, prevent spoilt items to be delivered to
customers.

4.) Reduces “Bullwhip Effect”

Real-time information sharing across the supply chain using RFID provides
companies unprecedented visibility into unanticipated variability, and will
therefore allow them to respond efficiently to such changes in a dynamic
manner.
 RFID Lowers Labor Cost and
Human Error

1.) RFID can be configured to divert products that require

quarantine or inspection

As the sorting is automated, manual labor involvement is eliminated and

this in turns eliminates human error.

An illustrated example can be seen in the next slide

 ARRIVAL OF PRODUCTS UNSORTED PRODUCTS
WITH RFID TAG

UNLOADING
X – requires inspection

INSPECTION SITE

SYSTEM RECOGNIZES TAGS

AND TRIGGER SORTING
PROCESS
2.) Able to trace manufacturing process automatically

a.) Fixed portal readers eliminate human involvement in manually recording

and updating work progress

b.) Provide real time visibility to manufacturing progress and hence, Master
Production Schedule can be complied

3.) Increase yield and quality of finished product

a.) Tagging raw materials with specific operational steps can enable alerts
to be triggered if incorrect manufacturing steps or mixing formulation
occur.
 RFID for Lower Lead Time
1.) Better utilization of plant asset and reduction of equipment down
time

Tagging of equipment such as machines, material handler and tools can help
manage plant asset more efficiently and reduce down time of equipment and
therefore, increase the lead time of the company due to lower wastage time.

Tagging information such as maintenance schedule, maintenance history,

and age of the assets can help manufacturers more accurately forecast and
enhance the lifespan of the assets as they are able to identify faults in the
machine when it breaks down from past historical data.

Furthermore, manufacturers are able to know when to purchase new

equipments from the utilization data.
 INFORMATION DATA
Years in service 5

Remaining useful life 5

Number of maintenance 2

Schedule maintenance 01/01/2011

Repair history Faulty hydraulic

EQUIPMENT WITH RFID system
TAG SAMPLE INFORMATION ON THE TAG
Current status Idle

OR
Assign new task
OR
Purchase new equipment CENTRALIZED CONTROLLING SYSTEM
2.) Make early decision about inventory control when supply
interruption occurs

Inventory level known at real time and therefore, replenishment forecast

can be done more accurately as order can be done at the right time and
therefore, reducing lead time

Inaccurate forecast that causes materials to arrive either before it is needed

causes wastage in floor space and inefficient cash turnover rate

Inaccurate forecast that causes materials to arrive late delays completion

time and possibly loss of revenue
3.) Small order quantity reduces lead time

4.) Virtually eliminates time required for counting items before delivery
and during reception
RFID for Effective Product Recall

As RFID allows a unique number to be assigned to specific items, targeted

recalls can be done when problem arises
 Challenges
1.) Cost

a.) Changing from barcode to RFID incurs high infrastructure cost,

which is around $0.5 million for a simple system

b.) Barcode costs around $0.01 while passive RFID tag costs around
$0.25

However, it must be note that RFID reduces labor cost and time in the
production cycle. Furthermore, its price may reduce in the future due to
economies of scale

2.) Uncertainty and ignorance of technology hinders adoption

More education or better user interface is required
3.) Partners in the supply chain are required to implement RFID
technology to achieve the benefit

4.) RFID signals may have problems with some materials.

Metals and liquids can cause problems when trying to read RFID tags.

5.) Interference has been observed

The presence of walkie-talkies and mobile phone towers have been

found to interfere with RFID radio waves. Wal-Mart has encountered
such problems.
6.) Bulky

This is due to the embedding of electronic components in the tag.

However, with advanced techniques, it is possible to reduce the size, and
weight of the tags in the future.

7.) Privacy issues

This is due to the ability of the RFID system to keep the customer’s
information such as date of purchase, credit card used, address and
other personal information tied to the purchase
 Conclusion
It shows that RFID can certainly help manufacturers increase
transparency of their operation, reduce lead time, labor cost and
human errors. Additionally, RFID can recall products effectively in the
event of mishap.

However, manufacturers need to factor in the cost of implementing

the system and the training needed for successful implementation.
Furthermore, a manufacturer needs to convince partners in the overall
supply chain to adopt RFID to achieve the best result.
 References
Active RFID vs. Passive RFID. (2008). Retrieved April 2010, from Atlas RFID
Solutions: http://www.atlasrfidsolutions.com/active-vs-passive.asp

Banks, J. (2008, May 30). Understanding RFID Part 9: RFID privacy and
security. Retrieved April 2010, from RFID News:
http://www.rfidnews.org/2008/05/30/understanding-rfid-part-9-rfid-priv
acy-and-security

Fataneh, T.-D. (2006). RFID Technology is Revolutionary. Academy of

Management .
Katz, J. (2005, October 18). Manufacturers Find Little ROI In RFID.
Retrieved April 2010, from IndustryWeek:
http://www.industryweek.com/articles/manufacturers_find_little_roi_in_rfi
d_10892.aspx

Leng, T. L. (2009). Radio Frequency Identification tagging offers great

value to manufacturers and other parties involved in the supply chain.
Retrieved April 2010, from Innovation Magazine:
http://www.innovationmagazine.com/innovation/volumes/v6n1/coverstor
y3.shtml

RFID Applications in Inventory Control. (2008). Retrieved April 2010, from

Decision Maker's Direct:
http://www.decisioncraft.com/dmdirect/rfidapplications.htm
RFID vs. Barcode. (2008). Retrieved April 2010, from Atlas RFID Solutions:
http://www.atlasrfidsolutions.com/rfid-vs-barcode.asp

RFID warehouse :Advantages in using RFID. (n.d.). Retrieved April 2010,

from Asia Customised Logistic:
http://www.asia-customized-logistic.com/rfid_warehouse.html

Roberti, M. (2009, December 14). The Future of RFID. Retrieved April

2010, from RFID Journal:
http://www.rfidjournal.com/article/articleview/7268/1/2/

Selko, A. (2008, February 25). IndustryWeek. Retrieved April 2010, from

RFID & Auto Manufacturing:
http://www.industryweek.com/articles/rfid__auto_manufacturing_15842.
aspx?Page=1
The Key to Finding RFID's ROI. (2005, June 6). Retrieved April 2010,
from RFID Journal:
http://www.rfidjournal.com/article/articleview/1635/1/128/

York, C. (2004, November 16). RFID's Potential. Retrieved April

2010, from IndustryWeek:
http://www.industryweek.com/articles/rfids_potential_9601.aspx