RFID Technology : Introduction and Application

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1 White Paper RFID Technology : Introduction and Application For more information, please visit: 2012 IEIMobile

2 White Paper Introduction Radio Frequency Identification (RFID) technology is one of the most promising and fastest growing auto-identification and data capture (AIDC or Auto ID) technologies currently. Along with other well-known technologies such as barcode, magnetic inks, voice recognition, smart cards, biometrics, and optical character recognition that also fall under the Auto ID category, RFID serves to automatically identify objects, collect information about them, and transfer and record this information into a back end computer system where it can be further transformed into business intelligence. Regardless of its recent popularization, the concept behind RFID technology has been around since the 1940s. Its development can be traced back to the Identification Friend or Foe (IFF) system used during World War II to send and identify coded signals from warcrafts. Commercial applications started appearing in the 1960s with the introduction of electronic article surveillance (EAS) for point of sale applications; whilst governmental applications, on the other hand, began in the early 1980s for agricultural and national defense purposes. Together with the rise of the PC industry, which facilitated data management in the 1980s, RFID technology became rapidly commercialized around the world and standardization activities began soon after. Today, RFID is widely used to perform simple identification applications to more advanced deployments such as in intelligent tracking systems. For more information, please visit: 2012 IEIMobile

3 Building Blocks of RFID Technology In general, RFID systems are made up of the four elements listed below. A brief description of these elements is provided in the remainder of this section for an overview of the possible choices to consider when implementing an RFID system: I. RFID tags II. RFID readers III. Operating frequencies and RFID protocols IV. Computer network (if any) I. RFID Tags Each object to be identified in the RFID system has an RFID tag attached to it. Although these tags can be produced in many different formats to suit their application environments, they are essentially made up of the same components: an antenna (made from conductive material), a small silicon chip, a power system, and some sort of memory. Tags can be classified according to their power source and memory type, as described in Table 1. Type of Tag Characteristics Classification by Power Source Passive Semi-Passive Active - The power system is turned on by the incoming RF signal from the reader. - Usually smaller in size, mechanically flexible, and much cheaper compared to other types. - Has a longer shelf life and is currently the most commonly used. - Tags can be of any frequency bands. - Contains a battery and requires the reader s power to transmit message back to the RFID reader. - Has a longer shelf life than active tags and are usually used to track valuable assets. - Tags are usually of the UHF frequency band. - Contains a battery and sends signals automatically to the RFID reader. - The most reliable and offers the greatest communication distance. - The most expensive but are typically used in logistic applications. - Tags can be of UHF or Microwave frequency bands. Classification by Memory Type Read Only Read-Write - Information on the tag is factory programmed, and the memory is disabled to prevent any future changes. - Only a limited amount of memory can be stored (96 bits). - Information can be read and flexibly altered by the user. - Typically contains more memory (32k Bytes to 12k Bytes) and more expensive than read only tags. Table 1: Classification of RFID Tags Many factors such as durability, operating frequency, re-write ability, memory size, and regional regulations, need to be taken into account when selecting an RFID tag for the system. Example of a passive RFID tag

4 II. RFID Readers Readers can be classified according to their design and method of fixation as described in Table 2 below. Type of Reader Characteristics Classification by Design Read Read / Write - Can only read information from RFID tags. - Can read and write information from and on RFID tags. Classification by Method of Fixation Fixed Mobile - The device is fixed or attached at a fixed point; e.g. at the entrance gate. - The device is mobile and can be carried and operated by the user regardless of location. Table 2. Classification of RFID Readers How does the RFID reader communicate with the tag? The RFID reader sends radio energy to the tag and waits for the tag s response. The tag, on the other hand, detects this radio energy and sends back a response containing relevant information. In simple systems, the reader s energy only functions as an on-off switch to trigger response from tags. However, in more advanced systems, the reader s signal can actually contain commands for the tag and instructions to write memory on the tags. Reader antennas are often the most complex to design because principles adopted by different frequency ranges (LF, HF, UHF) are fundamentally different. Moreover, most antennas need to be tuned to the resonance of the operating frequency, which makes them vulnerable to external effects and can greatly impact communication distance. Fixed RFID Reader Mobile RFID Reader

5 III. Frequencies and Protocols RFID is centralized on wireless communication and makes use of radio waves that are a part of the electromagnetic spectrum. RFID operates in the unlicensed spectrum space (also known as ISM: Industrial, Scientific, and Medical); however, exact frequencies may differ depending on regulations in different countries. Nevertheless, these operating frequencies are generally categorized into four frequency bands globally. Table 3 summarizes the characteristics of each band with their respective applications. Band LF (Low Frequency) HF (High Frequency) UHF (Ultra High Frequency) Microwave Frequency kHz 3 30MHz 300MHz 3GHz 2 30GHz Typical RFID Frequency kHz 13.56MHz 433MHz, MHz 2.45GHz ~ Communication Range Data Transfer Rate Characteristics Application < 0.5m 1.5m 433MHz: 100m MHz: 0.5m~5m 10m < 1kbit/s 25kbit/s 30kbit/s 100kbit/s Short range Low data rate Penetrates water but not metal Animal ID, Access Control, Car Immobiliser Mid range Reasonable data rate Penetrates water but not metal Smart Labels, Contactless Travel Cards, Access & Security, Apparel Long range High data rate Cannot penetrate water or metal Table 3. RFID Frequency Characteristics Logistics, Baggage Handling, Electronic Toll Collection Long range High data rate Cannot penetrate water or metal Electronic Toll Collection In addition to a selected frequency band, the RFID tag and reader must both comply with a specific protocol for communication to occur between them. To put it simply, these protocols define the language used between the tag and reader; thus, both components should support the same protocol in order for the two to understand and communicate with each other. There are numerous protocols established by ISO and EPC Global, however, the most commonly found protocols are listed Frequency in the Table 4 below. LF (125kHz) HF (13.56MHz) UHF ( MHz) Microwave (2.45GHz) ISO11784/5, 14223, ISO ISO14443, ISO15693, ISO ISO , EPC Class 0/1, EPC GEN II ISO

6 IV. The Computer System RFID tags and readers are never used independently; they form a part of a system, be it a supply chain, logistics, or library management system. The objectives of the computer system are to collect all in-coming data obtained by RFID readers and generate some sort of useful information that helps decision making and business planning. For example, in a simple inventory system, the RFID code encrypted in the tag is compared to a list of codes with corresponding item descriptions in the computer system. Once the code is identified from the list, relevant information about the item can be obtained, including product name, date of manufacture, and price. Employees or warehouse floor managers can further use this information to generate sales forecasts, income statements, balance sheets, and so forth.

7 RFID Technology Applications There are a wide range of RFID applications and the most popular ones are discussed in this paper, including supply chain management, healthcare, and transportation. Supply Chain Management Healthcare Transportation I. Supply Chain Management Supply chain management (SCM) is the complex process of planning and monitoring events from the procurement of raw materials to the production of goods and their delivery to customers through warehouses and distribution centers. The complexity of supply chains may differ between industries, but they are nevertheless, highly prevalent in industries such as retail, manufacturing, and service. Efficient management of the supply chain is extremely important because it has a direct impact on a company s profitability. This is where CEOs and decision makers tend to invest fortunes in. Take Zara and Walmart for example, which are two global retail giants with more than thousands of retail stores worldwide. At the place of production, goods are manufactured or obtained from suppliers and packed into containers, which are then loaded onto trucks and transported to the port or airport. There, containers are put onto freighters to be shipped to another country. Upon arrival, containers are unloaded and transported to their distribution points where they are repackaged and further transported to stores or warehouses to be sold. Although this may seem like a simple chain of packaging, loading, and transport activities, it involves a lot of nittygritty processes that easily go wrong in reality. Products that are supposed to be loaded in one container can be accidentally loaded into another container and sent to the wrong destination; packages can get lost in the distribution center without any means of re-tracing their locations; products can be misplaced on shelves in the shop floor resulting in inventory miscounts and wrong forecasts. The underlying costs and time associated in dealing with these errors greatly decreases a company s operation efficiency and can be harmful to revenue. Using RFID technology to track and control raw material, work-in-process, and the flow of finished goods is a best way to avoid the problems mentioned. RFID tags and readers can be used together at a variety of levels ranging from item-by-item identification to pallets and containers, allowing businesses to achieve the following purposes:

8 a.asset Management: Whether they are raw materials, assembled components, or finished products, all items in a company s supply chain are considered as a part of company asset. Therefore, they must be tracked and managed correctly. For example, in the shop floor, RFID readers can be placed at the entrance to detect items taken without authorization (in the case of shoplifting); or in the warehouse where handheld RFID readers can be used to identify the quantity of available inventory; or at the production lines, RFID tags can be used to track raw material quantities and forecasts can be provided to relevant suppliers. The objective of RFID technology here is to maintain complete transparency of the supply chain. When an item is missing or when a certain raw material is running low in quantity, the system can identify the shortage and notify in-charge staffs to take relevant actions, such as improving security or placing an order to suppliers. b.inventory Control: Inventory counting becomes much faster with RFID. Identification can be performed individually or in bulk by mobile devices and instantly and accurately registered in the electronic record system (WMS). Items removed from the shop floor or warehouse can be automatically recorded and updated in the inventory. The major value gained from such an RFID system is that inventories are replenished and maintained at an optimal level at all times whilst idle costs are reduced to minimum. II. Healthcare The healthcare industry constantly faces the challenge of improving patient safety and reducing operation costs. A research indicates that the most common problems in this industry are medical mistakes, theft loss, drug counterfeiting, and inefficient workflows. RFID technology was introduced in 2004 as a means to improve electronic medical systems. Although its introduction was met with slight resistance due to security and human right issues at first, it is now widely accepted and has been proved to be highly effective around the world. The use of electronic and auto-identification systems in the healthcare industry has become popular because of the following reasons. First, traditional methods of managing daily administration, monitoring and decision making processes are vulnerable to human errors and inefficiencies. Second, healthcare institutions are equipped with expensive medical assets (such as surgical tools, medications, devices and equipments) which are frequently stolen or lost, increasing overall management costs. Third, the healthcare industry is plagued with medical disputes in which drug counterfeits, medication tracking, and drug traceability are always put into questioning. It is for these reasons that RFID technology is used for the following purposes in the healthcare industry:

9 a.medical Asset Management and Tracking: Inefficient management of medical equipment is associated with the increased time taken to locate them, which in turn, decreases overall medical response time. In addition, lost or misplaced instruments increase a hospital s inventory costs as more equipment needs to be purchased or rented to make up for the loss. RFID technology is a solution for a hospital to manage its assets. For example, assets such as IV pumps and other surgical equipments, which are often used for different operations by many doctors, can be tracked and located through RFID tags. Healthcare providers will not need to waste time on locating the equipment. For some easily removable assets such as wheel chairs, the use of RFID tags and readers can ensure that they do not leave with patients. b.patient Identification and Tracking: Healthcare providers usually have many patients. It is impossible for them to remember all the different names, symptoms, allergies and so forth. This is where RFID technology can be put to good use. For example, RFID wrist bands can contain all the important patient information required by doctors, such as name, blood type, allergies, and medical history. Healthcare providers can instantly access all this information by reading the tag with a mobile RFID reader, and decide upon a diagnosis more efficiently. Another area of concern in addition to the identification of patients is the ability to track patient locations. Some patients with Dementia or Alzheimer, for example, may wander from their room, get lost in the hospital, and forget their way back. In this case, fixed RFID readers can be placed in various locations, so that these patients can be identified and located once they pass through particular areas. c.medication Authentication: Medication authentication must be performed to ensure that patients are provided with the correct type and amount of drugs. Here, the RFID technology plays an important role of reducing medication errors and improving patient safety. For example, information concerning the type and amount of drugs to be administered can be accessed through the patient s RFID tag, and unit doses can be tagged to keep track of how much medication has been administered, which can prevent overdose and medication errors. In addition, a more critical area of RFID application in the healthcare industry is for the prevention of counterfeit drugs. Medications shipped with RFID tags use specific codes and allow the product to be tracked back to its origin, thus, healthcare providers can be alerted by the RFID system when a certain drug is counterfeit.

10 III. Transportation The application of RFID technology in transportation has been successful in some areas such as toll collections and logistics management. However, developments in other areas, such as transport security and control, have been slower because it requires huge infrastructure investments by governments. For example, the adoption of RFID technology to track a vehicle s route has only just recently appeared. This type of application is a part of another topic known as Intelligent Traffic Systems, which will be covered some other time. In transportation, the safety of passengers, vehicles, and assets is a main concern for both governmental agencies and private companies. In the first case, governments have to make sure their roads are maintained safely and the traffic is managed efficiently. In doing so, a system needs to be put in place to manage and monitor traffic flow. Second, for private companies that manage cargos and logistics, it is crucial to have complete visibility of both their vehicles and the assets contained in the vehicles. The following describes the purpose of RFID technology in two very different transportation applications: Electronic Toll Collection and Logistics Management. 1.Electronic Toll Collection: In the past five years, Electronic Toll Collection (ETC) systems have received a lot of attention by governments worldwide. Many countries, especially developed countries, have already implemented such systems. In this application, an RFID tag is located on the vehicle, and once it passes through a toll gate containing a fixed RFID reader, the vehicle is identified and toll payment is collected immediately. The greatest benefit of such a system is that vehicles can pass smoothly through toll gates, which prevents traffic jams and time wasted on making payments. As a result of the reduced traffic congestions and vehicle idling time, emissions that are major causes of pollution, can be prevented. 2.Logistics: Being a part of supply chain management, logistics is involved with the management of the flow of goods from the point of origin to their destination. RFID technology is popularly used to ensure that goods are secure and can arrive on time at the point of destination. For example, products with RFID tags can be identified and counted efficiently, making sure that the accurate amount of items for a particular delivery is onboard before transportation. In addition, electronic records of delivery transactions can be generated and monthly operational efficiencies can be calculated. With such a system in place, logistic companies can decrease associated costs involved in item loss and delivery delays.

11 Benefits of RFID Technology The business intelligence generated by RFID technology can be overwhelming. The main benefits of adopting such a technology in your business include: 1. RFID uses radio frequency waves to capture information. This information is accessible through handheld or fixed readers in real-time, allowing companies to know their inventory status, which in turn can allow them or their partners to respond quickly to shifts in demand and prevent over or under stocking. 2. RFID systems provide the same efficiency and accuracy as the traditional barcode system, and offers additional benefits including: a. RFID supports read and write operations, which mean that information can be updated or corrected easily. b. RFID tags can be read through materials and do not require the reader to make direct contact. c. RFID tags can be hidden, strengthening its role in tracking applications. In addition, unlike barcodes, RFID is not limited to line-of-sight operation. d. The time it takes for an RFID reader to read a tag is much faster than scanning a traditional barcode. e. Multiple RFID tags can be read and identified at the same time, which speeds up the data collection process and enhances operation efficiency. 3. RFID can greatly enhance a company s competitiveness through: a. Decreasing human error and associated costs. b. Providing more accurate forecast, which can indirectly increase revenue. c. Speeding up order cycle, which can decrease working capital.

12 Conclusion RFID technology has a long history, with its first application dating back to World War II. However, this technology has evolved drastically in the past few decades, and has transformed from simple radio identification applications to more advanced application purposes such as improving workflow, identification, and asset tracking. RFID has now become one of the most promising and fastest growing technologies. As a developer of devices for vertical market applications, IEIMobile offers a range of products with automatic identification readers, including both read-only and read-write capable RFID readers. These devices are guaranteed for their toughness and stability to withstand harsh operational environments. Devices with RFID readers can be easily integrated with RFID systems present in the manufacturing floor, warehouse center, or distribution center, providing total end-toend solutions for companies worldwide. With respect to IEIMobile s product portfolio, the tablet PC series are integrated with barcodes and HF RFID readers, such as the ICEFIRE and ICEROCK, and are targeted for diverse industry applications such as healthcare and warehouse management. The industrial PDA product line offers a choice of handheld terminals especially designed for warehouse and retail management operations. For example, the MODAT-328 and the MODAT-335 are integrated with HF RFID readers, whilst the latter has an optional UHF RFID reader. Lastly, in the automotive PC line, the AVL-2000 and AVL-3000 designed for extremely advanced surveillance and tracking applications are both integrated with UHF RFID readers. A summary of IEIMobile products integrated with RFID readers is provided in the table below. IEIMobile Product HF RFID Reader UHF RFID Reader ICEFIRE ICEROCK ICECARE MODAT-100 MODAT-328 MODAT-335 ISO ISO ISO ISO ISO ISO ISO ISO Felica ISO ISO Read-Only* ISO ISO Read-Only* ISO , EPC Class 1, EPC GEN II AVL AVL ISO , EPC Class 1, EPC GEN II ISO , EPC Class 1, EPC GEN II Table 5. Summary of IEIMobile Products with RFID Readers * IEIMobile is at the stage of making these RFID readers. Changes will be notified through our Product Change Notices (PCN).

13 This paper gives an overview of RFID technology, its operating mechanisms, and the current application trends in the industry. In addition to improving business processes, RFID technology can effectively decrease time and costs associated with human handling. In this era where information technology is becoming increasingly advanced, where businesses are continuously improving their operation performance, and where customers are demanding faster service, it is essential to implement automatic identification systems, such as RFID, to streamline workflow and provide more accurate and timely service support. IEIMobile is a business unit established by IEI Technology in Taipei, Taiwan that focuses on producing industrial-grade mobile computing devices. We are a professional mobile solution provider seeking to revolutionize the way people work. Our comprehensive product portfolio includes tablet PCs, industrial PDAs, and in-vehicle (automotive) computing devices. We serve the needs of a wide range of industries ranging from retail, logistics, healthcare, construction, manufacturing, transportation, and hospitality. Any comments or queries concerning the material contained in this document can be submitted to: 5F., No. 29, Zhongxing Rd., Xizhi District, New Taipei City 221, Taiwan (R.O.C.) sales@ieimobile.com For more information, please visit: 2012 IEIMobile

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