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RFID deployment examples and RFID archiecture
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End-to-End EPC RFID Solutions:
Making It Play . . . And Pay
George ReynoldsVice President, RFIDTyco Fire & Security
Discussion Topics
Company overview
EPC pilots
A closer look at several deployments
Critical next steps
Tyco / ADT Foundation for Supply Chain Visibility
Logical Layer
Physical Layer
ADT’s RFID Solution
ADT Support Services:Installation, support and remote diagnostics services which provides maximum availability
ADT RFID Services: Systems design, site survey and compliance testing
Sensormatic RFID Readers, Antennas, Printers, and Applicators:Multi-protocol, multi-frequency,intelligent devices
Sensormatic RFID Tags: Multi-protocol, multi-frequency tags
Sensormatic Device Commander: Comprehensive Device Management software
RFID ServicesSupport Services
Global Data
Synch.WMSERP
Systems Integration
Data Management Middleware
22 years of RFID history
• Eureka – first RFID product to show anti-collision (1980)
• Charter member of Auto-ID Center
• Atlanta Olympic Games (1996)
EAS Experience Tagging and Tracking
• 80,000 UHF systems deployed and over 1 million antennas installed
• 10 billion chip-based UHF labels made and sold at ten cent ASP
• 4.0 billion items tagged at point of manufacturer in FY04 with MOQ of $210
• 15,000 items certified for tag design, automated placement, performance
• Source-tagged items from 3,500 manufacturers sold at 25,000 retail outlets
Depth of Experience
Note: the technology / application is different, but the expertise required for label placement and antenna calibration is similar.
Service Portfolio
Lab & Design Services Site Solutions
Compliance Testing Unique RFID Physical
Applications Custom antenna and label
design
Support and MaintenanceDeployment Services
Limited “Launch” solutions Source Tagging Large scale, programmatic
roll-outs Everything in between
Site Surveys (e.g., noise, physical constraints)
Requirements analysis (e.g., read points, work flows, volumes, integration needs)
Solution design
High availability architecture Remote monitoring and
management On-site technical support
Product Components
Antennas
FocusedApplication
Software
Development Software
Readers EPC ClassLabels
Label Printing &
Application
Tyco RFID Architecture
• Multiple interface capacity delivers customer driven innovation.
• N – Tier delivers scalability.
• Separation of AFE and Controller delivers global interface.
• Separation of device and data management functionality delivers flexibility.
• Multi-generation roadmap delivers lower cost of ownership.
Radios - AFE
Radio Controllers
Device Management Data Management
Tags
Standard, Private Published
Private, Private Published, Standard
Private, Private Published, Standard
The Enterprise
Private, Private Published, Standard
Private, Private Published, Standard
Private, Private Published, Standard
Antennas
Ap
plicato
rs - Prin
ters
Discussion Topics
Company overview
EPC pilots
A closer look at several deployments
Critical next steps
We have engaged customers in all regions
Multiple Large-Scale Pilots from Off-shore production to store shelves
• Major Consumer Goods Manufacturers - Long-term install of 9 RFID stations from packaging to final shipment - Launch packages for retailer compliance - Full line SKU labeling testing
• Major Mass Merchandisers - 150 readers at 9 RFID stations from incoming goods at DC to store stocking - Enterprise wide install at DC shipping and store receiving facilities for high value goods - Item-level supply chain tracking for apparel
• Major Pharmaceutical Companies - 7 RFID stations tracking from case creation to outbound shipping - Small label printing and encoding - Class II pharm labeling for compliance
• U.S. Government Non-U.S. manufacturing processed and shipped to domestic ports, then to a retail DC
• Major DIY Retailer On-site, custom performance test lab and system integration
• Large National Hospital Asset tracking including the use of RFID data simulation tools
Item-Level Rental Pilot: Inventory management
Video Rental Trial
Programming
Drop Box Readers
Physical Inventory
Self Check-Out
Auto Check-In
Sample Observations
• Reduced time to take physical inventory by 75%
• Real-time display of returned videos improved video “turn rate” on popular videos
• Video self check-in was easy to defeat resulting in loss of late fees
• Self check-out eliminated benefit of “up-selling” the customer
• Difficult to insure good programming compliance with in-store personnel
Item-Level Retail Pilot: Inventory management
High-end Clothing and Firearms Trials
Programming
Inventory counting
Product Locating
POS reconciliation
Sample Observations
• Firearms department inventory took less than 16 minutes versus 1 ¼ hour
• Apparel inventory took 2 minutes versus 1 hour
• Finding missing product took less than 8 minutes
• In-store programming is problematic
• Labor savings may not be sufficient ROI
Pharma Pilot:case creation to outbound shipping
• Manufacturing: Case creation and outbound shipment to DC• DC: Inbound receipt of pallet to outbound at several key touch points
Sample Observations
• Shrink wrap station produced best opportunity to achieve 100% case read on pallet
• Testing of 21 representative sample SKU / pallets provided identification for preferred label placement on cases / pallets
• Case configuration is extremely critical to RFID performance
Sample Lab Test Results
Product Description
Case Label Pass
without Pallet Tag
Cases per SKU/Pallet
Tests per SKU/Pallet
Label Placement High Power
Range (inches)
3Label Write
Portal Pallet Tags - 1 or
more2
12 inches 200 FPM 400 FPM Worst % Ave % Best % 4-8 MPH Worst % Ave % Best %
Plastic 308 719 77 YES YES 97.22% 36
66
116
92.59% 1 4 9Drops YES 60 548 108 YES YES YES 15 41 75 YES 40 63 97
Ointment YES 91 548 77 YES YES YES 4 13 27 81.48% 10 27 39Packs YES 96 548 84 YES YES YES 9 20 37 92.59% 25 39 58
Medium Bottles YES 144 548 82 YES YES YES 9 16 32 96.30% 15 32 43Softgels YES 126 548 62 YES YES YES 6 8 21 YES 6 23 37
Large Bottles 80 836 68 YES YES YES 0 6 20 YES 1 2 26Ointment 175 692 81 YES YES 97.22% 5 10 18 YES 11 19 27
Small Cream 238 980 54 YES YES5
YES5
1 4 8 96.30% 2 5 10Test kit 180 548 73 YES YES 95.80% 4 6 13 YES 7 14 25
Large Cream YES 95 1232 61 YES YES YES 166
286
366
92.59% 7 17 25Mouthwash YES 126 791 52 YES YES YES 4
68
612
6YES 2 9 18
Anti-acid YES 90 908 76 YES YES5
YES5
4 13 29 YES 12 25 47Capsules 120 908 54 YES YES 98.61% 3 10 22 YES 11 18 30
Hygene Pads YES 100 575 53 YES YES YES 46
126
186
77.78% 5 10 16Medicine YES 52 854 6 22 42 YES 23 28 53
Spray Can YES 74 YES YES YESBlister Pack YES 60 YES YES YES
Lotion YES 94 YES YES YESMixed cases YES 50 1007 3 29 54 YES 18 39 48
Soda YES 46 YES YES YESCereal YES 67 YES YES YES
Small Bottles YES 60 YES YES YESPapers YES 76 YES YES YES
Dock Door Case Labels1
Conveyor 100%4
Portal Case Labels1
Discussion Topics
Company overview
EPC pilots
A closer look at several deployments
Critical next steps
DC Incoming Receiving
Outbound Shipping
Primary Storage - Single
Primary Storage - Double
Individual Storage Area
Store Incoming Receiving
Stockroom Exits
Store Shelves
Nine Stations: DC processing to Store shelf
Sample Observations
• Real time inventory visibility can reduce out of stocks:
RFID system found pallets that the stock room system didn’t see
• Peripheral devices (optical sensors) can be used to improve system performance by reducing system “noise”
• RFID “Zones” can be created to track flow / directionality of inventory to determine how long it sits, if it’s in the wrong spot, or to help locate it
Retailer Pilot:DC receiving to store shelf stocking
Typical Installations
Shipping doors
Perpetual in-store inventory
More advanced installations
Door to trash compactor
Door to selling floor
Manufacturer Pilot:Launch Package Implementation
Sample Observations
• 100% system performance can be achieved, but may require process work-arounds, significant user training, and specialized back-up components
Readers must have “application agility” – readers that can be configurable to accommodate diverse applications
Network latency issues require “real time” decisions to be performed at the reader level
Not all labels are capable of withstanding supply chain environments: high temperature insensitivity can be a critical feature
Manufacturer Case Example:Manufacturing EPC Process
CLIENT X MANUFACTURING CENTER
• Products:— Food Product ABC— Food Product XYZ
• RFID Equipment— 3 Readers— 4 Antennas— 2 Printers— 10,000 Labels / wk— 1 Server— Launch Software
Manufacturing EPC IT Configuration
Distribution Center EPC Process
CLIENT X DISTRIBUTION CENTER
• Products:— Product X Food Product— Product Y Cleaner
• RFID Equipment— 3 Readers— 5 Antennas— 2 Printers— 10,000 Labels / wk— 1 Server— Launch Software
1
Distribution Center IT Configuration
Manufacturing Station 1
• Current Installation
– Print and Program case level Tags
– Verify Tags
• Integration Path
– Automated Label Applicator
• Log case & pallet level EPC data in RFID database
• Print and program pallet tag
Manufacturing Station 2 & 3
Nine DC Stations: Packaging to Final Shipment Process
Programming
Pallet Creation
Stocking Inbound
Packaging Returns
Shelf Picking
Packaging Outbound
Forklifts
Mixed Pallet Verifier
Dock Doors
Sample Observations
• Software / hardware interoperability issues increased program schedule
• Reader density requires power and synchronization management
• Case association to the pallet provides case / pallet tracking solution
Gillette Ft. Deven DC implementation: packaging to rack storage to store shipment
Program Goals:
• Track 100% of all Product X cases and pallets within Gillette’s ‘Four Walls’
• Test and prove the technology
• Develop a scaleable solution
• Validate the business case
Program Results:
• Customer order verification process time reduced by a factor of ten
• Shipping / loading verification process time reduced in half, system accuracy increased significantly
Manufacturing Case Example: packaging to rack storage to store shipment
Source: Gillette 2005 presentation at the EPC Global BAG
Pilot Overview
UPSConveyor
ExitDoors
Pack ToOrder
Packaging Center
Distribution Center
VerificationTunnel
CasePackingMachine
ConnectingLink
Pick ToOrder
Hand Pallet
Forming
Source: Gillette 2005 presentation at the EPC Global BAG
UPSConveyor
ExitDoors
Pack ToOrder
Packaging Center
Distribution Center
VerificationTunnel
CasePackingMachine
ConnectingLink
Pick ToOrder
Hand Pallet
Forming
Step #1
Source: Gillette 2005 presentation at the EPC Global BAG
The “flat” cases are tagged
UPSConveyor
ExitDoors
Pack ToOrder
Packaging Center
Distribution Center
VerificationTunnel
CasePackingMachine
ConnectingLink
Pick ToOrder
Hand Pallet
Forming
Step #2
Source: Gillette 2005 presentation at the EPC Global BAG
The SKU number is scanned once for each production run
Step #3/4
Source: Gillette 2005 presentation at the EPC Global BAG
The SKU number generates the unique EPC. The EPC is written, verified, and recorded
UPSConveyor
ExitDoors
Pack ToOrder
Packaging Center
Distribution Center
VerificationTunnel
CasePackingMachine
ConnectingLink
Pick ToOrder
Hand Pallet
Forming
Cases Are Then Aggregated To A Pallet
• The system creates a pallet EPC…
• And associates those cases with the pallet …
• Allowing unique pallet/case identification throughout the warehouse
UPSConveyor
ExitDoors
Pack ToOrder
Packaging Center
Distribution Center
VerificationTunnel
CasePackingMachine
ConnectingLink
Pick ToOrder
Hand Pallet
Forming
Source: Gillette 2005 presentation at the EPC Global BAG
The Pallet Then Moves From The Packaging Center To The Distribution Center…
• The verification tunnel between the pack and distribution areas is equipped with readers and antennae…
UPSConveyor
ExitDoors
Pack ToOrder
Packaging Center
Distribution Center
VerificationTunnel
CasePackingMachine
ConnectingLink
Pick ToOrder
Hand Pallet
Forming
Source: Gillette 2005 presentation at the EPC Global BAG
The Pallet Then Moves From The Packaging Center To The Distribution Center…
• The verification tunnel between the pack and distribution areas is equipped with readers and antennae…
• Pallet is identified using one or more case tags…
UPSConveyor
ExitDoors
Pack ToOrder
Packaging Center
Distribution Center
VerificationTunnel
CasePackingMachine
ConnectingLink
Pick ToOrder
Hand Pallet
Forming
Source: Gillette 2005 presentation at the EPC Global BAG
The Pallet Then Moves From The Packaging Center To The Distribution Center…
• The verification tunnel between the pack and distribution areas is equipped with readers and antennae…
• Pallet is identified using one or more case tags…
• The distribution center receives the goods and the data validates payments to packaging operations
UPSConveyor
ExitDoors
Pack ToOrder
Packaging Center
Distribution Center
VerificationTunnel
CasePackingMachine
ConnectingLink
Pick ToOrder
Hand Pallet
Forming
Source: Gillette 2005 presentation at the EPC Global BAG
Comparing The Old Process To The New Process Reveals Significant Benefits…
Current Receiving Process• Five Scans• Three keyboard entries
20 Seconds Per Pallet
• Read container barcode forPart # & Quantity
• Enter Part # & Quantity
• Scan Unit of Measure Barcode
• Scan Reason Barcode
• Tab to Lot Code Field
• Scan Lot Code Barcode
• Scan Pallet ID from TIN
• Scan Bill of Lading
• Press [Enter]
Source: Gillette 2005 presentation at the EPC Global BAG
Comparing The Old Process To The New Process Reveals Significant Benefits…
EPC Receiving Process• Automatic data entry
5 Seconds Per Pallet
Source: Gillette 2005 presentation at the EPC Global BAG
Orders Are Then Processed…
Source: Gillette 2005 presentation at the EPC Global BAG
UPSConveyor
ExitDoors
Pack ToOrder
Packaging Center
Distribution Center
VerificationTunnel
CasePackingMachine
ConnectingLink
Pick ToOrder
Hand Pallet
Forming
Customer Orders Are Verified…
• The pallet is spun within a verification tunnel…
Source: Gillette 2005 presentation at the EPC Global BAG
Comparing The Old Process To The New Process Reveals Significant Benefits…
Current Order Verification• Labor intensive• Manual process
80 Seconds to 20 minutesPer Pallet
Source: Gillette 2005 presentation at the EPC Global BAG
• Prior to shipping, checker must validate product & quantity
• Figures compared to containerpacking list
• Checker validates shipping lane / exit door to ensure loading in proper trailer
Comparing The Old Process To The New Process Reveals Significant Benefits…
EPC Order Verification• Automatic data verification
Source: Gillette 2005 presentation at the EPC Global BAG
20 Seconds Per Pallet
And The Pallet Transferred For Shipping
• Exit door readers record and confirm correct shipment
UPSConveyor
ExitDoors
Pack ToOrder
Packaging Center
Distribution Center
VerificationTunnel
CasePackingMachine
ConnectingLink
Pick ToOrder
Hand Pallet
Forming
Source: Gillette 2005 presentation at the EPC Global BAG
Comparing The Old Process To The New Process Reveals Significant Benefits…
Current Shipping Process• Cycle time relative low…• But $ risk of inventory error
is high
• After checking, operator scans container barcode to confirm correct pallet is being loaded
• Next, operator scans exit door barcode to ensure pallet is being loaded into appropriate trailer
Source: Gillette 2005 presentation at the EPC Global BAG
10 Seconds Per Pallet
Comparing The Old Process To The New Process Reveals Significant Benefits…
EPC Shipping Process• Process automated• Inventory risk eliminated
Source: Gillette 2005 presentation at the EPC Global BAG
5 Seconds Per Pallet
Eight Stations across three facilities and two companies
Factory Pack
Factory Ship Out
Split/Merge
Overpack
DC Ship Out
Warehouse Receive
OEM Receive
OEM Inventory
Sample Observations
• Global deployment requires customization as regulations are not harmonized
• Shielding and thoughtful mounting options are important even in a pilot
• Pre-deployment in the lab is important to minimize pilot impact on on-going operations
Intel Manufacturing Case Example: factory packaging to DC to customer inventory
Logistics RFID Pilot
• A series of internal pilots have been performed at Intel
• This is a logistics RFID proof-of-concept that demonstrated product visibility from manufacturing to OEM
– Added UHF tags to cases of silicon microchips as they were packaged at an Intel plant in Malaysia and shipped to the manufacturing plant of an OEM.
– Tracked more than 80,000 Intel processors
– Used UHF RFID readers made by Tyco Fire & Security's Sensormatic* division
– Implemented using 96-bit passive tags
RFID for Mfg
RFID for Logistics
Mgmt
RFID for Enterprise
Infrastructure(Data Center)
RFIDEthnography
Studies
RFID forSupply Chain
Integration
Find the “threadsFind the “threads””Infl
uen
ce c
orp
ora
te s
trate
gie
sIn
flu
en
ce c
orp
ora
te s
trate
gie
s
Lo
gis
tics R
FID
Pilo
tL
og
istic
s RF
ID P
ilot
Source: Intel 2005 presentation at the EPC Global BAG
Product Flow
WarehouseWarehouseDCDC
FactoryPack
FactoryShip Out
WarehouseReceipt
Split / Merge OverpackDC
Ship Out
OEMReceipt
OEMInventory
CPU AssemblyAnd Test
FactoryFactory
OEMOEM
RFID RFID
RFIDRFID RFID
RFID
RFID RFID
OEMFactory Floor
Source: Intel 2005 presentation at the EPC Global BAG
PoC Logical Infrastructure
Intel Server(Factory and Warehouse)
OEM Server
PackPortal
FactoryShip Portal
W/H ReceiptPortal
W/HSplit / Merge
Station
W/HOverpack
Station
OEM Receipt /Inventory Portal
DCShip Out
Portal
Network Bridge
Factory Network
Warehouse Network
Source: Intel 2005 presentation at the EPC Global BAG
Typical RFID Portal
•Each typical portal included:
–Controller PC running Microsoft WindowsXP* operating system
•Connected to ethernet network
•Communicating with RFID database server
•Running custom middleware designed to capture research data
–One Tyco Agile 2* RFID reader
–Two Tyco Omniwave* antennas
–Optionally, a modified Omniwave* antenna used for writing tags
–Optionally, a standard linear barcode reader, if required
Source: Intel 2005 presentation at the EPC Global BAG
Trays holding multiple CPU chips were bundled and strapped before being placed in a shipping box
Shipping box was taped shut and labeled normally
Existing label req’ts on boxes maintained
No changes made to existing info. systems–Parallel “drop-in” PoC implementation reduced integration time
Source: Intel 2005 presentation at the EPC Global BAG
Factory Pack
RFID tags were written with unique identifiers and hand-placed on the shipping boxes.
For the pilot, human-readable labels were also placed to help identify the presence of RFID
Source: Intel 2005 presentation at the EPC Global BAG
Factory Pack
Loaded carts were scanned at the Pack portal to generate a stored list of cart content.
The loaded carts were then set to the factory ship out area.
Source: Intel 2005 presentation at the EPC Global BAG
Factory Pack
At factory ship out, the fully-loaded carts were once again scanned just before exiting the factory on their way to the warehouse.
Source: Intel 2005 presentation at the EPC Global BAG
Factory Ship Out
Similarly at warehouse receipt, the carts were scanned again upon arrival
–Verified that all boxes sent were received
As usual, boxes were unloaded from carts and placed in inventory for later picking.
After being picked for an order, the boxes went through split and merge operations to obtain the correct units for the order.
–This required additional in-process reading and writing of RFID tags
Source: Intel 2005 presentation at the EPC Global BAG
Warehouse Receipt, Inventory, Split, and Merge
The individual boxes of CPUs were put into overpack boxes, which also was RFID tagged
The completed overpack boxes were then placed on pallets for shipment.
Source: Intel 2005 presentation at the EPC Global BAG
Overpack, DC Ship Out
Each pallet also received an RFID tag.
The portal at ship out read all of the stacked overpack box tags and the pallet tag before allowing the shipment
Loaded pallets of product were scanned at the OEM upon receipt and placed in the OEM’s inventory
The individual boxes were scanned for the last time when pulled from inventory for consumption on the OEM’s factory floor
Throughout the entire process chain, all transactions were recorded to databases for later analysis
Source: Intel 2005 presentation at the EPC Global BAG
OEM Receipt and Storage
Outbound Shipping
Store Incoming Receiving
Two: DC processing to Store shelf
Sample Observations
• European regulations are difficult
• The actual RFID equipment is only a portion of the systems that must be engineered to allow mass deployment
• Managing a network of RFID readers and devices requires special cooperation between the end-user, the hardware supplier, and the software integrator
Tesco rollout:DC shipping to store receiving
Tesco’s RFID Goals
• Better for Customers– Reduced prices,
improved availability, better service
• Simpler for Staff– More one touch
replenishment, improved accuracy, a simpler supply chain
• Cheaper for Tesco– Reduced costs, shrink,
waste and stock holdingDemonstration at NRF 2005 Keynote
The two main deployment configurations
DC shipping doors
Store receiving doors
More in-store views
Individual items in tagged RPC’s
Note stock density and variety of metal cages in store receiving area
Discussion Topics
Company overview
EPC pilots
A closer look at several deployments
Critical next steps
Lessons Learned: “Top Five Reasons We Might Have Failed”
• When the pilot was started, there was neither end-dates established nor specific success metrics
• The pilot was started by either the R&D, or IT, or RFID teams without input and 100% buy-in from the Operations / Supply Chain team
• The leader of the pilot (internal or outsourced) assumed system interoperability - that all of the technology suppliers would communicate their last-minute “development” product changes amongst each other
• The project partners were chosen more for their “new line of products” rather than their actual experience and existing capabilities
• Products selected for the pilot were chosen without consideration of how RF-friendly they were, creating too many variables at the onset of the pilot
Actual situations encountered…
What are the goals of any technical purchase?
Avoid obsolescence
Support scalability
Avoid technical dead ends
Support extensibility
Getting the Systems Architecture Right.
Is it stackable?
Are the interfaces discrete?
Does it comply with standards?
Is there a test for interoperability . . . .
and an escalation path?
Lessons Applied:Choose Appropriate RFID Technologies
Customer Required Features for RFID Readers
• Customer Driven Innovation
• Interface Backward Compatibility and Flexibility
• Air Protocol Flexibility – Multi-Protocol Operation
• Global Deployability
• Application Specific Form Factors
• Software-defined radio . . . With enough hardware horsepower for the mid-term future
Device and System Performance Management
• Deployment Support
– Identification and Discovery
– Configuration Management
– Firmware management
• Activity Monitoring
– Health monitoring
– Interference management
– Trend Analysis and Reporting
– Alarm Condition Detection and Communication
– Alert Distribution and Event Logging
Key Next Steps
Whether on your own or with a partner, it is important that you begin the RFID implementation process today
• Act now
– Key competitors and trading partners are moving forward
– 3-12 months to implement
• Demand executive attention and resources
– Not just another IT project on the wish-list
– Integral to the success of all IT, Ops and LP projects
• Involve business functions in design and implementation
– It’s your time that’s being wasted if not
– Take advantage of the change to redesign/streamline internal processes
• Leverage outside help – they want you on board
– EPC Global and partners
– Early adopters
– Commercial solution providers