Deploying a RFID Solution Practical Case Study and Business Plan

RFID Case Studies and Business Plan Copyright 2007 Mind Commerce of 31

Deploying a RFID SolutionPractical Case Study and

Business Plan[Sample/Excerpts ONLY – Not Full Report]

Sanjay Chatterjee

[email protected]

June, 2007

To fully understand the capabilities of RFID, it is helpful toconsider how the technology can be beneficial in real businesssituations. We evaluate the impact of RFID throughout thesupply chain, delivering efficiencies for three types oforganizations: manufacturers, distributors, and retailers. Thisreport provides case study analysis of RFID solutiondeployment and related business plan.

Research Consulting TrainingTechnical Writing

www.MindCommerce.com

mailto:[email protected]

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Overview

The report also provides expert analysis of RFID in practice including an evaluation of the RFIDvalue chain, business process life-cycle, business process strategy, market overview andchallenges. RFID middleware providers are profiled with device selection criteria is evaluated.Active RFID vendors and products are profiled and evaluated. The report discusses risk profileassessment and risk assessment services. The report also includes eight case studies for RFIDimplementation and operation.

RFID Business Plan and Financial Assessment

The report contains a business plan including financial projects and financial assessment with aworking Excel spreadsheet. This information will assist with business case development, funding,budgeting, and launch of a RFID solution.

Target Audience

This report is intended for anyone considering launching a RFID-based business, solutionsinvolving RFID, and/or business process automation using RFID.

• RFID hardware, software, solution vendors and related professional services companies• Managed services providers, outsourced RFID solutions and application providers, and

RFID service bureau operators• Personnel responsible for automating Supply Chain Management (SCM), Customer

Relationship Management (CRM), Manufacturing Resource Planning (MRP), EnterpriseResource Planning (ERP) and other business processes

• Manufacturers and personnel responsible for management of inventory and materials,timing and control of critical resources, improve Warehouse Management Systems(WMS), and other production line automation and industrial processes

• Healthcare management personnel responsible for tracking patients, staff personnel,equipment, inventory, and other critical resources

• Retailers and personnel responsible for merchandise inventory and ordering processes,Customer Relationship Management (CRM), Merchandise tracking and fraud prevention

• Providers of value-added applications and services such as metering, telemetry,telematics, and sensor applications, inventory control and tracking such as merchandisecontrol, asset tracking and recovery such as computing equipment monitoring, trackingparts moving through a manufacturing process, tracking goods in a supply chain, andpayment systems

• Providers of RFID middleware such as the VeriSign or Oracle• Companies interested in optimizing their RFID business process strategies

Published: May 2007114 Pages and Excel Spreadsheet

Author: Sanjay ChatterjeeSingle-user $ 995 US

Company-wide $ 4,995 US


Index:I. Dedication

II. Introduction

III. RFID in Practice and Business Benefits RFID in Practice Manufacturing Retail RFID Business Benefits Improved Productivity and Cost Avoidance Reduced Business Risk and Control of Assets Applications for RFID

IV. Understanding the RFID Supply Chain RFID Solution Scenario

V. RFID Business Process Life cycle Older Life-Cycle Models Newer Life-Cycle Models

VI. RFID Business Process Strategy IBM RFID Strategy Heinz RFID Strategy Canus RFID Strategy International Paper RFID Strategy Kayser-Roth RFID Strategy Philips Semiconductors RFID Strategy Intel RFID Strategy Unilever RFID Strategy Major Clothier Retailer RFID Strategy Marks and Spencer RFID Strategy


VII. Market Overview & ChallengesMarket OverviewChallenges to Adopting RFIDSoftware Infrastructure ChallengesRFID Hardware Device challengesInteroperability and Integration

VIII. Available RFID MiddlewareAcsisAxcessBlue Vector SystemsConnecTerraData BrokersEPCglobalFranwellGlobeRangeri2 TechnologiesManhattan AssociatesOATSystemsOracleRF CodeSavi TechnologySunT3CiTIBCOVeriSignwebMethods

IX. RFID Device Selection Criteria,Economic analysisFeasibility studyRange ObservationTag Identification

X. Market Survey of Active RFID Products


XI. RFID Risk Assessment

XII. RFID Implementation Examples 8 small case studies on companies who implemented RFID Namely Gillette, Procter & Gamble, Marks and Spencer

XIII. Conclusion

XIV. A Full-scale report with Financial for Adopting RFID


Chapter 1Introduction

RFID is proving to be one of the best solutions for tracking and identifying assets aroundthe world. It can be used to locate items, and not only that it can be used to monitoranimals, provide quick identification and tracking of medicines in the hospitals, can bedeployed in various spheres for tracking and managing moveable assets.

As a result the potential advantages of RFID can be summarized as:

• The automotive industry has been using closed-loop RFID systems to track andcontrol major assemblies within a production plant for over 30 years.

• Many of the world's major retailers have mandated RFID tagging for pallets andcases shipped into their distribution centers to provide better visibility.

• There are moves in the defense and aerospace industry to mandate the use ofRFID to improve supply chain visibility and ensure the authenticity of parts.

• Regulatory bodies in the United States are moving to the use of ePedigrees basedon RFID to prevent the counterfeiting of prescription drugs.

• Hospitals are using RFID for patient identification and moveable asset tracking.

• RFID tags are being used to track the movement of farm animals to assist withtracking issues when major animal diseases strike.

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In this case study I bring a real deployment of an Active RFID Solution. In doing so Iwould focus on a lot of aspects especially on the factors that help an organization judgethe need of a RFID solution. Moreover I would even stress on the key areas mainlyrelated to the comparisons of hardware costs, features, advantages, limitations. This casestudy will not only serve as a good source for getting a rough idea about the budgetsinvolved but it would also give the reader a true picture of the possibilities and thelimitations that RFID faces till now.


Chapter 2RFID in Practice and Business Benefits

RFID in PracticeTo fully understand the capabilities of RFID, it is helpful to consider how the technologycan be beneficial in real business situations. The following examples illustrate how thetechnology can impact throughout the supply chain, delivering efficiencies for three typesof organization: manufacturers, distributors, and retailers.

The scenarios focus on a bicycle manufacturer that produces high-end bicycles for theglobal market. All parts are purchased from vendors, except for the frames, which aremade in-house from raw steel pipe. The description shows the potential of RFID todeliver benefits at every stage of the supply chain as the bikes are assembled, distributedto retailers, and finally sold to customers.

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RFID Business BenefitsUse of RFID technology can increase business productivity and reduce associated costs.To ensure that companies benefit from the advantages RFID provides it is important tounderstand how to adopt this technology. By analyzing current practices and procedureseight main areas of benefit can be identified. These are:

• Improved Productivity and Cost Avoidance.• Decreased Cycle Time and Taking Costs Out.• Reduced Rework.• Reduced Business Risk & Control of Assets.• Improved Security and Service.• Improved Utilization of Resources.• Increased Revenues.• Exception Management.

Improved Productivity and Cost Avoidance

Identifying items by RFID involves less work than using barcode scanning and other lessautomated ways. This leads to greater process effectiveness in many tasks such asreceiving and putting away, picking and shipping goods when the time required and costof identifying items by RFID is substantially less than other methods.



Improved Security and Service

Being able to validate information relating to an item enables increased security. Thisindividual identification contributes to more effective access control, reductions inshrinkage and other losses, and the ability to provide fast and efficient services at thepoint of need. Ability to authenticate information can prevent activities likecounterfeiting and fraud.


Applications for RFIDApplications fall into two principal categories: short range applications in which thereader and tag must be in close proximity (such as in access control), and medium to longapplications in which the distance may be greater (such as reading across a distributioncenter dock door). A sample of applications is shown here:

• Access control for people: There are many areas in which RFID tags are carriedby people to allow them to gain access to facilities or services:

• Secure access to work place• Safety access to dangerous/secure equipment• Access to a computer or vehicle• Access to travel on trains/buses• Access to leisure facilities

• Access control for vehicles:• Secure access on site• Road tolling• Instant payment for fuel

• Manufacturing automation:• Control of flexible manufacturing processes by recognizing items being

built on a production line (mass customization enabler)• Labeling key components for later recycling

• Logistics and distribution:• Tracking parcels from shipment to end customer• Tracking goods from manufacture to retail

• Retail:• Supply chain management• Stock taking• Reducing loss through shrinkage• Reverse logistics• Product availability

• Maintenance:• Plant & Equipment• Fixed assets• Patients

• Product security:


• Tamper evidence• Product authentication• Anti-counterfeiting

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Chapter 3

Understanding the RFID Supply ChainA simple Supply Chain consists of end-customers or consumers who buy goods orservices from a retailer at a store or through other channels, such as an e-commercewebsite. The retailer may stock the goods and tools to provide the services from awholesaler or a distributor. The distributor normally buys goods in large quantities from amanufacturer who makes the goods in a factory or a production facility. Themanufacturer buys raw materials from suppliers.

Figure 3. A simple retail supply chain

A typical supply chain has one or more of each of these entities. There could be multipletiers of suppliers, manufacturers, and distributors. As materials move from the initialsupplier in the chain to the end-customer, value and costs are added at each node. As youget closer to the retailer, the supply chain becomes more complex, with different productssourced from many different business partners; a retailer like Wal-Mart sells thousands ofproducts sourced from thousands of direct suppliers.


RFID Solution ScenarioTeddyCo is a retailer that sells high-end sporting gear. One of their high-demandcategories is customized sports bicycles. Even though they carry bicycles from all themajor manufacturers, Bikes R Us is their key business partner. Bikes R Us is amanufacturer of sports bicycles and produces high-end, custom bicycles for a widevariety of retailers. Bikes R Us ships finished bicycles into four TeddyCo distributioncenters around the country. Bikes R Us sources parts from various suppliers.


Figure 4. Scenario supply chain

Bikes R Us Factory

One such supplier is Perfect Circle, a supplier of bicycle tires. Perfect Circle suppliesBikes R Us with an in-house stock of tires. They have a vendor–managed inventory(VMI) arrangement with Perfect Circle. Perfect Circle has real time visibility into the tireinventories through a simple portal. That means that Perfect Circle is responsible for tireinventory at Bikes R Us; Bike R Us never has to place an order manually.

Tires Receiving

Bikes R Us has a tire storage area. The three doors to this area are fitted with RFIDantennae that are connected to an RFID Reader. As RFID-tagged cases of tires arrivefrom Perfect Circle, antennae read the tags and update the tire inventory. When tires aretaken out to be assembled with bicycle frames, inventory is reduced appropriately. Whenthe inventory goes below the reorder point, a replenishment signal is generated and sentto Perfect Circle.

Before Perfect Circle used RFID, they had to simply look at Bikes R Us's past pull ratesand forecast how many tires they should deliver each week. Once, TeddyCo ran a specialon childrens bikes and Bikes R Us was using half of their resources to assemble onlychildrens bikes. Perfect Circle did not detect the spike in childrens bikes, and Bikes R Usran out of childrens bike tires. Perfect Circle had a container air-lifted from theirsouthwest DC and delivered to Bikes R Us to meet the increased demand. However, theyhad to eat all the extra cost. Worse, the demand planning system increased the forecastfor the next four weeks, which ended with three containers of childrens bike tires sittingunused at Perfect Circle. Perfect Circle had to take significant charges in inventorycarrying costs.

Now with RFID, Perfect Circle always knows exactly how many tires are in thewarehouse at Bikes R Us and is able to follow and react to changes in requirements inreal-time. Given the real-time signals, Perfect Circle now delivers tires two times a day toBikes R Us.



Bicycle Assembly

Bikes R Us has different assembly stations for different types of bicycles.

1. Based on the day's orders for each assembly station, a requirement list isgenerated and sent to the storage area.

2. Every morning, Joe, who operates the forklift in the Bikes R Us assemblywarehouse, picks up the tires according to the assembly workstation requirementlist and drops them at the appropriate assembly stations.

3. As Joe's forklift leaves the storage area, tire tags are read and the inventory isupdated in real time.

4. As Joe drops the tires at each assembly station, tags are read and the systemverifies that the right type of tires is dropped at the right assembly station.

5. Bob works at the children's bicycle workstation. Once Bob assembles a bicycle,he places the finished bicycle in a case and pushes the Create Case Tag button.This automatically prints a new RFID tag and, as Bob places the tag on the bike,the system associates the tag ID of the tires to the tag ID of the bicycle.

6. As bikes are assembled, Joe gets a notification to deliver the bikes to the qualitycontrol area. Joe loads the cases onto the fork lift and drives away. The tireinventory at the workstation is automatically deducted. If the inventory fallsbelow a certain level, a notification is sent to Joe to replenish more tires from thestorage area.


RFID-enabled operations

Quality Control

Jane works in the Bikes R Us quality control department. Her job is to inspect bicycles toensure they were assembled correctly and to verify that the right tires were mountedbased on the specifications. Before Bikes R Us started using RFID for tires and bicycles,she had to pick a bicycle case randomly from a lot, open it, take the bicycle out andperform her procedures. Now, with RFID, Jane simply scans each case that contains thebicycle, and the system reads the bicycle tag and the tag on the tires automatically. Itchecks those tag IDs against the bill of material (BOM) assembly information and alertsJane if there is an error. By using RFID, Jane is now able to process more cases duringthe day. As Bikes R Us is inspecting each bicycle that is assembled in their factory, theirquality has improved from 93% to 99.99%


Chapter 4RFID Business Process Life Cycle

This life cycle puts engineering discipline into the business process, so that it allowsreengineering of each stage when it receives feedback from other stages in response toemerging technologies, organizational changes, and new legislation and regulations. Inchoosing a life cycle for your organization, you need to consider business processmodels, implementation approaches, methods and techniques, life cycle methodologies,processes and procedures, and automated tools. It is the responsibility of the executives toensure the effectiveness of RFID business processes and the resulting ROI that would payoff the investment within a certain timeframe. RFID business process reengineering is aform of systems engineering. Like system engineering, RFID business processreengineering begins with a study of what user needs are, and proceeds to thedevelopment of concept and a model (e.g., Adaptive or Predictive Multi-Layer BusinessProcess Model) and determines what the new systems and hardware requirements will beto translate the concept and model to a concrete infrastructure. Next, you need to have thesystem design documented in a professional manner that can be easily understood by ateam of executives, IT managers, and other members. If the document reveals in theRFID business process reengineering, the team needs to revise the concept, model,system design, software requirements, and hardware requirements. The process continuesuntil the executives and other team members are satisfied with how RFID businessprocesses should be reengineered.



Newer Life-Cycle ModelsWe consider three new life-cycle models that can be used to improve RFID businessprocesses. They are adaptive linear feedback life cycle, adaptive dynamic life cycle, andpredictive.

Adaptive Linear Feedback Life CycleThe adaptive linear feedback life cycle is based on the Adaptive Multi-Layer BusinessProcess Model. Unlike the incremental and spiral models, the strategies, requirements,and objectives are well defined, so there would be no tendency to push difficult problemsto the future. The impact of each stage on business processes is addressed as the modelmoves to a higher level linearly. Risk analysis and mitigation take place only at theimplementation stage. In response to technology changes, the model sends feedback tothe beginning of the first stage of the model. At this point, the process is repeated.

Adaptive Dynamic Life CycleThe adaptive dynamic life cycle is based on the Adaptive Multi-Layer Business ProcessModel. Unlike the incremental and spiral models, the strategies, requirements, andobjectives are well defined, so there would be no tendency to push difficult problems tothe future. The impact of each stage on business processes is addressed as the modelmoves to a higher level. Unlike the linear feedback life cycle, risk analysis and mitigationtake place only at each stage. In response to technology changes, the model sendsfeedback to not only the beginning of the first stage but also the other stages of themodel. The process is dynamically iterative. Changes in strategies, requirements, andconstraints are well defined. One example of this use of the adaptive dynamic life cycle isseveral adjustments to the speed of a laptop as it was affecting the quality of RFID inputreaders into the laptop.

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Chapter 5RFID Business Process StrategiesIn this part we would look on some of the Industry Leaders on how IBM, Heinz, Canus,International Paper, Kayser Roth, Philips Semiconductors, Intel, Unilever, a majorclothier retailer, and Marks and Spencer have used RFID strategy to identify andreengineer business processes that will derive the most value for the emerging technologyand then to develop an implementation plan that would bring in realizable ROI sooner.No business process strategies are the same in scope and approach at site, package, andnetwork levels.

IBM RFID StrategyIBM focuses on RFID strategy both for the enterprise and mid-business market as a wayof choosing the right mix of implementation approach, technologies, and businessprocesses. The company groups business processes into four components: SCP, SCE,inventory merchandise management, and customer experience. It pulls data from theRFID infrastructure by the way of data and process integration into these businessprocesses. What this means is that the data from the infrastructure is operated on,aggregated, and altered through process integration into the four components of businessprocesses. IBM focuses on open communication required to connect among the RFIDinfrastructure, the process integration, and the business processes along with externalintegration via middleware technologies.

Once the business processes have been set, they are used to enable the RFID network andintegration services. The final step is to establish strategy services in the following areas:business case, strategy assessment, roadmap development, pilot development, and supplychain development.

To develop a pilot study, you need to present first a business case (see Heinz ProductScenario Testing). Next, you proceed to strategy assessment using the findings as thebackground material and develop a roadmap over a period of time. If the pilot study doesnot succeed, you need to return to the business case and strategy assessment to correct theflaws (e.g., RFID labels were put on the wrong places of certain food products; they weretoo close to the top containing the liquid component). Only when the pilot study shows asuccessful RFID implementation, can you then plan and develop supply chain facilities,networks, and applications. This indicates IBM has been using the Adaptive Multi-LayerBusiness Process Model with layers tailored to their business process components.


Heinz RFID StrategyNow let us take a look at Heinz that did not know which vendors to use or whichdirection to take in implementing RFID. The first step the company undertook to developa RFID strategy was to hire the IBM Business Consulting Services to determine how touse the technology in the most effective manner to keep the retailers happy. Heinzwanted to make sure its RFID strategy would be in line with the changing market trendswhile maximizing its potential ROIs. In response, IBM recommended top of the linevendors and the way RFID infrastructure should be built in the entire supply chain, notjust a portion of the supply chain. Due to contents of many cans and packages, IBMexperimented with different label placements on the product in various environmentalconditions and conducted a RFID pilot using the application from Heinz. IBM usedvarious models to compare alternative costs and benefits of each scenario over a period often years. Not only ROI was calculated; IBM used other financial tools to compare thecosts and benefits of outfitting plants and warehouses with RFID technology anddetermining the best loading/unloading dock throughputs.

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Chapter 6Market Overview & Challenges

Market OverviewWal-Mart has announced that its 100 top suppliers must tag their deliveries (at palletlevel) by 2005. This mandate for a phased rollout, in tandem with large pilots at Target,Albertsons, and other organizations, including some US pharmaceutical companies, hasraised expectations for future market size and growth. This uptake in the supply chain ismirrored by RFID deployments by the US military and by a range of other applications inagriculture, tourism, and asset management.

In Europe, a host of organizations including Carrefour and METRO are already puttingRFID solutions through preliminary trials. Manufacturers such as KiMS in Denmark arealso piloting the technology. Research by RF & Microwave Industry News suggests that


41 percent of European retailers are planning RFID pilots for 2004 (RF & MicrowaveIndustry News, February 5, 2004). According to estimates provided by leadingpharmaceutical manufacturers, following their pilots it is estimated that RFID-basedsolutions could save the industry more than $8 billion by 2007/8.


Real Time Data ConsumptionRFID Readers are generating data constantly as they read the tags. Most of the readers onthe market do some level of filtering. Still, if the application directly interfacing with theReaders is busy, there is a chance of data getting lost. Also, many initial applications outthere are simply hard-coded on top of the reader interface, and if the reader is stuck forsome reason, these applications can "lock up." Hence the need to create an asynchronouslayer that sits between the reader device and the application that can store and forwardmessages, ensuring reliable message delivery. Also, in an enterprise, multiple readers canread large amounts of data at a given time, and this needs to be appropriately aggregatedand routed to the business applications.

This can be addressed by using a message queue providing the asynchronous layer thatguarantees reliable message delivery at high volumes. The bicycle scenario developmentused a Microsoft Message Queue (MSMQ). Technical Details describe the advantages ofusing MSMQ and provide an implementation for the bicycle scenario.

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Chapter 7Available RFID MiddlewareSince data collected by various RFID readers come in different formats, integrating datain a common format with enterprise systems is accomplished via the route of middleware.Most middleware products act as traffic cops or a bridge between disparate systems.

A list of RFID Middleware providers are as follows:

• Acsis• Axcess• Blue Vector Systems• ConnecTerra


• Data Brokers• EPCglobal• Franwell• GlobeRanger• i2 Technologies• Manhattan Associates• OATSystems• Oracle• RF Code• Savi Technology• Sun• T3Ci• TIBCO• VeriSign• webMethods

I. ACSIS INC. (WWW.ACSIS.COM)Acsis’s newest product offering is an RFID interface to SAP R/3 with a focus on supplychain management. It integrates data collected from its partners 2.4-GHz RFID devices(900 MHz also supported) into a company SAP R/3 system using DataPassô, a Certi?edInterface for SAPô R/3. DataPass operates through Intermec, Symbol, Telxon, LXE, andTechlogix Palmtop CE and Palm devices and works with existing LAN or WAN,allowing real-time data collection from warehouse, distribution center, manufacturinglocation, or any auxiliary site within a supply chain. DataPass passes data to MicrosoftSQL Server as a local database and works with all standard SAP R/3 interfaces. Inaddition, it allows the use of

RFID in the Supply Chain: A Guide to Selection and Implementation intelligent RFdevices, Windows-enabled PCs, and CE products, all running within the sameenvironment. Visual Basic and Visual C/C++ can be used to build custom localapplications.

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Chapter 8RFID Device Selection Criteria: Preparationfor economic analysis/feasibility study

http://WWW.ACSIS.COM


To begin the processing of selecting a tag type with an associated reader, you shouldconsider answering the following questions as part of the selection criteria in youreconomic analysis or a feasibility study.

• What are the objects to be tagged?

• What are the objects made of and how do they affect reading ranges?

• What are chip antenna types?

• What readers can read both passive and active tags?

• What readers can read both RFID tags and bar code labels for easytransitioning?

• What are other considerations that could affect externally the optimallocation of tags?

• How do various entities organize frequency types or ranges?

• What other standards are the vendors using for their RFID products?

What Are the Objects to Be Tagged?The objects to be tagged are pallets, cases, and items in a hierarchical order. For our ownpurpose, this order is arbitrarily based on the hierarchy of three layers of object levels, asfollows.

• Object Level 0: item level

• Object Level 1: case level

• Object Level 2: pallet level

The Level 0 layer at the bottom of the hierarchy pertains to products on the item level.The Level 1 layer refers to cases stacked on a pallet and the Level 2 layer pertains to thepallet. Given the above hierarchy, lets assume the information stored in a case tagcoincides with the information in the database about the products the case holds.We find information stored in a pallet tag points to the information in the database aboutthe cases stacked on the pallet. If the pallet tag gives information different from that inthe database about the cases, then we know the reader did not scan all the cases.One possible reason is that the reader may have some problems in reading individualproducts inside the cases arranged in the center of a pallet, particularly when even ratherthan odd number of cases are stacked horizontally and vertically on the pallet. It isbecause in part the reader could not emit enough power to activate tags affixed to cases ofitems stored in the middle of a pallet stacked with say, 150 cases.


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Chapter 9Market Survey of Active RFID ProductsWe briefy cover active RFID products from Alien Technology, Axcess, Escort MemorySystems, Microtec, Samsys, Savi Technology, and WhereNet.

I. ALIEN TECHNOLOGY(WWW.ALIENTECHNOLOGY.COM)

Alien Technology produces Ultra-High Frequency (UHF) tags as well as 2450-MHz(microwave) frequency tags for cases and pallets. Alien’s EPC class 1 UHF RFID tagscan be applied to metal and liquid environments.

When used with circularly polarized antennas, all of Alien’s RFID tags are orientationinsensitive. Alien Technology offers these active RFID products:

• Reader ALR 9780• Reader ALR 9640• Reader ALR 9930-A• Reader ALR 2759

Reader ALR 9780 is a high-performance, four-port fixed reader with a frequency of902ñ928-MHz ISM band. This FCC-certified reader can be easily mounted where taggedobjects are inbound or outbound in a logistics supply chain. It has the ability to read apopulation of tags at high rates in real-world situations. Software-controlled power outputprovides for performance optimization in a variety of circumstances. An advanced low-noise RF design provides maximum sensitivity to tag signals rendered faint by distance,moisture, or metal. The use of circularly polarized antennas allows tags to be readwhether they are vertically or horizontally oriented. Configuration is accomplished eitherlocally via serial port or remotely via the Local Area Network (LAN) using a human-readable interface.

Software integration is implemented through the use of XML-formatted control data andbinary and C-language APIs. The ability to trigger reads by external event, command, orschedule allows the reader to mold to the business process. The reader can be configuredto notify operators of tag events by LAN, input/output (I/O) signal, or even e-mail. Withfield-upgradeable firmware and a high-performance digital signal processor, the ALR-9780 is designed for maximum upgradeability to future EPC specifications.

http://WWW.ALIENTECHNOLOGY.COM


Reader ALR 9640 is a fixed reader with integrated antenna with a frequency of 902ñ928-MHz ISM band for use with UHF Class 1 tags. Some application examples includeindustrial warehouse and logistic facilities.

The reader electronics and antenna reside in a single package, eliminating externalantenna cables. Equipped with an Ethernet interface, the ALR-9640 integrates with anetwork. The ALR-9640 includes basic over-the-network management and control. ThisFCC-approved reader reads up to 50 tags per second. Configuration is accomplishedeither locally via serial port or remotely via the LAN using a human-readable interface.Software integration is easily implemented through the use of XML-formatted controldata and binary and C-language APIs. The ALR-9640 is equipped with a flexiblemounting system. The antenna is an orientation-insensitive design, allowing tags to beread no matter what their angle of presentation to the reader.

The ALR-9930-A RFID reader/programmer module with a frequency of 902ñ928-MHz(ISM) band is designed for rapid integration of EPCglobal UHF Class 1 support. It issmall enough for integration into handhelds, printers, shelf readers, and more. A libraryof C-language APIs ensures integration for rapid prototyping and development.

With an anti-collision algorithm, the ALR-9930-A module reads multiple tags in the fieldof view, regardless of the number of tags, and is designed as an option for printers,handhelds, and others. Software-controllable output power and communicationscombined with unlicensed operation provide flexibility within diverse end-userapplications. Software integration is easily implemented through the use of binary and C-language APIs. A complete software developers kit with sample code is available.Firmware is upgradeable.

This 2450-MHz ALR 2750 reader uses an Intermediate Frequency (IF) channel to obtainranges in order of magnitude greater than existing commercial systems. This reader withfour I/O ports is targeted at indoor applications, such as pharmaceutical track and traceand textile tagging. This system has the ability to read up to 250 tags in an RF field and atdistances of several feet.

The reader can be interfaced either locally or through a LAN interface to remote servers.Input control lines allow for trigger inputs, which turns on RF only when goods arepresent, thus alleviating interference with other RF sources in a large warehouse orsupply chain. Output control lines enable the operation of a gate or door when a valid tagis interrogated. It is certified for use in Japan and as of Spring 2004, will soon be licensedin the United States.

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Chapter 10Risk AssessmentIn this section, we look at three types of risk assessment:

• Risk assessment profile of companies implementing the RFID deployments• Internal asset risk assessment• Risk assessment service

We also look at choosing a firewall product to be considered as a counter-measure in riskassessment. Keep in mind risk assessment tends to be data-oriented. We need to make anassessment of how well business processes can be or have been applied to the RFIDinfrastructure. We need to develop countermeasures to mitigate the risks to theinfrastructure as a result of an incorrect or inadequate sequence of business processes ofhaving an impact on the effectiveness of the infrastructure.


Chapter 11RFID Implementation ExamplesThe first eight implementation examples pertain to retailing and logistics. METRO Groupwas the first retailer in the world to start rollout of RFID-tagged pallets and cases. Gillettepresented a demo on how it could redirect a misplaced case to its intended destination.Canus showed how tag reading at a certain speed can slow down a computer.

International Paper offers customers automatic reorders when they move a roll of paperonto their equipment. Unilever focuses on tag location on cases for less interference.Procter & Gamble used RFID technology to solve docking loading throughput problems.A major retailer succeeded to achieving a 99.9 inventory tracking accuracy in its firstmajor field test of RFID. Marks and Spencer shows how employing RFID technologyreduces the systems capital cost less than 1/10 of the annual cost of using bar codes forperishables throughout the supply chain from pick-up to distribution.

The last implementation example pertains to the library and textile garment markets.Although they may appear to target a limited audience, they could be used as lessons tolearn in retailing and logistics.


METRO Group: IBM RFID Servers in Early Deployment

METRO Group hired IBM to provide middleware and installation services for the RFIDrollout that began in November 2004 with shipments of warehouse pallets and cases from20 product suppliers, including Unilever, Procter & Gamble, Gillette, Johnson &Johnson, Kraft Foods, Colgate-Palmolive, GlaxoSmithKline, Nestle, and Esprit. METROGroup has used an IBM RFID middleware based on the IBM WebSphere RFID PremisesServer to provide the retailer with a virtual view of RFID-tagged pallets and casesshipped to its distribution center and exchange data with METRO’s merchandisemanagement system. METRO’s RFID rollout is expected to grow to about 100 suppliersby December and about 300 suppliers by 2006, along with additional METROwarehouses and stores in Germany. Early deployment in November 2004 was influencedby METRO’s belief that the results of the Future Store Initiative indicated that processefficiency and merchandise availability increased by about ten percent and losses andtheft were reduced about fifteen percent. Smart Chips were affixed to the pallets.

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Chapter 12ConclusionsAlthough the use of RFID in a variety of industries has grown tremendously in recentyears, its potential hasn't been fully realized, due, in large part, to the challenge ofconfiguring and managing a multitude of incompatible devices and difficulty in buildingmeaningful applications and integrating them with back-end systems. "Until RFID can befully exploited through the use of technology-based applications, analytical tools, andhardened enterprise-scale technical infrastructure, adoption rates won't meet theexpectations most market-watchers set," notes John Fontanella, author of "The RFIDBenchmark Report" from Aberdeen Group.

Realizing the full potential of RFID requires a common set of tools and a framework thatpartners and end-users can use to build the solutions that improve business processes—solutions like inventory management and asset tracking. BizTalk RFID does just that,allowing Microsoft partners and end-users to create useful, scalable, flexible solutionsincorporating RFID much more quickly and easily—applications that offer more value tothe customer.



“Adopting RFID”A Business Plan

TABLE OF CONTENTS

1. Company Description1.1 The Objective1.2 Keys to Success1.3 Current Status of the Company

1.3.1 Shareholding Pattern of the Company1.3.2 Current Financial Status of the Company1.3.3 Current Development and Engagement Status of THE DEMO

COMPANY

2. The Leadership Team

3. THE DEMO COMPANY s Domain of Operation

4. THE DEMO COMPANY s Offerings4.1 THE DEMO COMPANY Devices4.2 THE DEMO COMPANY Solutions4.3 Future Product

5. Market Analysis

6. Competitive Analysis

7. Operational Plan7.1 Location7.2 Equipments and Devices7.3 Proposed Team Structure7.4 Product Development Plan

8. Marketing and Sales Strategies8.1 Target Market Segment8.2 Pricing Strategy8.3 Sales Forecast

9. Financial Plans and Projections


9.1 Important Assumptions9.2 Sales Plan9.3 Expenditure Plan9.4 Projected Monthly Cash Budget for Three Years

Appendix: Current financial status of the company

[See Full Report for Detailed RFID Business Plan]

Different application scenarios where THE DEMO COMPANY Products/Solutionsmay be used

Heavy Industries require to monitor the contents of the harmful gassescoming out of the chimneys that pollute the environment. A wiredsolution is too problematic since the control station is normally situatedpretty far from the chimneys, so a wireless solution is needed. THEDEMO COMPANY s Sensor Tags can be mounted on the top of thechimney which can wirelessly transmit the sensed data to the controlstations, using multi-hop wireless data communication.

[See Full Report for Detailed RFID Business Plan]


Tracking and Monitoring using Active RFID Reader/ Writer

THE DEMO COMPANY s Desktop/Handheld Active RFID Reader/Writer enables the user toread, update or write data into THE DEMO COMPANY s Active tags. In some applications,tracking is needed at different disjoint areas within an organization s premises. In such cases, itis not possible to form a mesh network covering all those discrete areas located far apart.Therefore, in these cases, Active RFID Reader/Writer is placed at each discrete region for datacollection from tags visiting those locations. Active RFID Reader/Writer are connected to theorganizational LAN (wired/ wireless), thus forming a Tag Acquisition Network. In case ofhandheld active RFID Reader / Writer, data can be collected from sparsely located static tags (e.gsensor nodes monitoring environmental conditions) by physically visiting those locations withthe reader even from a distance (outdoor range is 100 meters).

[See Full Report for Details of RFID Business Plan]



“THE DEMO COMPANY” Pvt.Ltd.

Provisional Profit & Loss Account for the year ended 31/03/2007

P A R T I C U L A R S

SCHEDULE

CURENTYEAR

31/03/2007AMOUNT(Rs)

PREVIOUSYEAR


INCOME :Professional Fees earned 369532 127982Other Income 86152

TOTAL 455684 127982

EXPENDITURE :Administrative & Other Overhead H 457891 120247Filing Fees 4774Trade Licence 500 1160Licence Fees 800Preliminery Exp.-Written off 12715 12715Directors' Remuneration 150000Honourarium to Chairman &Directors 425000Depreciation 50541 7617

TOTAL 522447 721513Profit before tax / (Loss) (66763) (593531)Provision for taxationProfit after tax / (Loss) (66763) (593531)Balance brought forward fromprevious year (593531)Net Balance carried to BalanceSheet (660294) (593531)



“THE DEMO COMPANY” Pvt.Ltd.Schedules forming Part of Profit & Loss Account

SCHEDULE – H

P A R T I C U L A R SCURENT

YEAR31/03/2007

AMOUNT(Rs)

PREVIOUSYEAR


Salaries & Allowances 90100 22500Accounting Charges 2000Rent 107500 22500Electricity Charges 19778 1140Printing & Stationary 19808 15385Travelling & Conveyance 25247 8902Repairs & Maintenance 3532 10329Postage & Stamps 5084 984Audit Fees 5000 5000Legal Expenses 8950Workshop Expenses 52544Seminar 2000Project Expenses 12442Membership Fees 5000Telephone Charges 37397 5990Service Charges 4510Books & periodicals 50Bank Interest & Charges 3143 570Professional Fees 5556Board Meeting Fees 1500 2500Hire Charges 15000Office Expenses 22688 15676Patent Right Fees 16000Miscellaneous Expenses 1622 211

TOTAL 457891 120247


About the Author

Sanjay Chatterjee is an M-Tech in computer science and engineeringwith government scholarship through GATE (IIT Madras), having donehis B-Tech degree in Information Technology. He joined IIM CalcuttaAdhocnet Research group as a Junior Research Engineer and worked ina project sponsored by ATR Labs Japan. It was a project involvingESPAR antenna, developing the Mac protocol for routing fordirectional antenna. He then worked on rapidly deployable mobile Ad-

hoc networks, another research project sponsored by the Department of InformationTechnology India. Being engaged in some passive RFID projects both short range andlong range for “Medical item tracking” and “Attendance system, he later focused onactive RFID using ZigBee. Having undergone training in U.K, London for 802.15.4 he iscurrently working on sensor networks using ZigBee. Moreover he has nearly 5international publications on the fields he has worked. He has been to Europe for lecturesessions, besides he has some experiences in projects involving GPS and GSM for realtime management systems and embedded programming. He has successfully designedsoftware for ESPAR Antenna’s during year 2003 for ATR Labs Japan, designed wirelessad-hoc network architecture for Disaster Management (for a project from MIT), andcurrently he is developing Tracking solutions, Message Communication systems, SensorNetworks for environment sensing using ZigBee. He has successfully developed a rapidlydeployable, self configurable, self healing Tracking System with Active RFID along withthe GUI, and a handheld based active RFID reader/writer using the ZigBee protocol andtransceiver.

Contact: Sanjay Chatterjee at [email protected]



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Deploying a RFID Solution Practical Case Study and Business Plan

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