burak onurlu (2008), radio frequency identification (rfid) implementations in logistics, ytu,...
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YILDIZ TECHNICAL UNIVERSITY
THE FACULTY OF MECHANICAL ENGINEERING
INDUSTRIAL ENGINEERING DEPARTMENT
FINAL PROJECT
Radio Frequency Identification (RFID) Implementations
in Logistics
Advisors : Asst. Prof. Umut TUZKAYA
YTU No : 05061604
Name, Surname : Burak ONURLU
stanbul, 2008
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TABLE OF CONTENTS
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1. INTRODUCTION
RFID (Radio frequency identification) is a technology enables objects or living creatures
to be identified with radio frequencies. RFID technologies which are mentioned more
frequently day by day via various conferences and researches, have been used for so long
by many of the worlds leader firms in every level. But, in recent years, not only big firms
but also small and medium sized firms have launched RFID implementations to be
involved in their systems. Nowadays RFID technology brings various advantages in every
field, especially in logistics and enables; processes to be fast and productive, automating
by minimizing the human factor in operations, cost reduction and an increase in customer
satisfaction.
Enterprises of our country have also kept up with this development, Turkeys first and
only RFID Research and Development Center has been established in Istanbul Technical
University, many firms consulting and supporting in RFID field started operating.
However, unfortunately our country is rather a lot arrear in practice beside the giant
projects of the world. In the researches I have done during my thesis study, lack of
Turkish resources and RFID implementations in Turkey reveals this truth. There is still
only one post graduate thesis about the RFID systems in the database of the Higher
Education Council. When it is considered that logistics sector is one of the fast-moving
and growing sectors of Turkey in recent years, importance of RFID technology to be
applicable in our country, thought of RFID technology will be a standard implementation
in every field in recent future shows the significance of this study.
In the thesis, besides comprehensively examining of RFID systems technically, also some
predictions are made regarding the present situation and future position of RFID systems.
Comparison with barcode systemswhich considers RFID systems as destructive
technologyunderlies the study.
In addition to this, after implementation levels of RFID project are told, two different
world-class RFID logistics projects which have been applied in the two leader firms of
different sectors in Turkey, have been examined comprehensively. Projectsfirst of
which is storage location verification and latter is the real-time resource management
system, are involved in the thesis study in practice after theoretic and technicalinformation.
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8. RFID IMPLEMENTATIONSEven though RFID systems and system implementations are not a brand new technology,
as they are on ever-developing level, there is a lack of information not only in Turkey, but
also in the world. Not only the firms which apply the implementation in their systems, but
also the firms which supply and consult technology, do not want to share the information
they have.
In this phase of the project, RFID systemswhich are applied by one of the worlds
leading tire manufacturer and biggest logistics firms of Turkey, will be mentioned. Theseprojects are just as successful as similar implementations in world and also they are the
two most extensive RFID projects applied in Turkey.
8.1 RFID Storage Location Verification System8.1.1 Problem Definition
One of the worlds leading tire manufacturers carries out the tire production and storage
operations in Turkey in their Izmit facilities. A store of 7.000 square meters is inadequate
for the manufacturer, so firm completed the construction of its new store of 52.000 square
meters. However, even in the present store of 7.000 square meters, problem of placing tire
palettes is experienced. It is anticipated that this problem will get even bigger in the new
store consisting of 4000 locations. Forklifts are being used in storage operations and
forklift operators warehouse 7 to 10 tire palettes by superposing.
After the newly produced tire or any other tire palette is loaded on a forklift for the
delivery, by an operator, he moves the palette to a related place in accordance with the
directions given by another operator.
This is where the mentioned problem occurs. Forklifts erasing the numbers on the floor
and making the floors unclean with their weights, operators misunderstanding of the
delivery addresses of the palettes and/or delivering to the wrong address, operators
misplacing the palettes arbitrarily, brings the problem of stock and planning.
Problems in palette placements;
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- Prevent authorities to know how many requested products are in the stock- Cause products to be lost within the storage- Obstruct products to be found within the storage- Superposing of the palettes causes plenty of time to be spent in re-organizing the
incorrect palette placement. Operator can be obliged to take down 7-8 palettes and
replace them in order to place the undermost palette to its correct place.
In order to solve this problem in palette positioning operations, tire manufacturer firstly
placed barcodes to the floor, but forklifts made barcodes to be at standstill by rubbing
away or polluting them. Decision makers of the tire manufacturer thought of establishing
a RFID system for solving the problem and then it is carried into action.
8.1.2 System DesignSystem wanted to be used in the storage of the tire manufacturer is rather different project
in consideration with the systems applied both in Turkey and in the world. Two forklifts
and an area containing 80 addresses in the present storage will be used for the pilot
scheme.
In the system, RFID tags are embedded inside the concrete as palettes. The minute
operator loads a palette on a forklift; he will read the barcode tag located on the palette,
via manual reader. Address of the paletteswhich is needed to be taken to by a
middleware, will be informed to forklift panel via wireless network. After seeing the
address on the screen, forklift operator will take the palette to the related location and
when it reaches there, RFID reader will read the RFID tag and inform the operator
whether he is in the right place or not, by checking the addresses of the system and of the
RFID tag. Till he brings the palette to the right place, middleware will not send any new
information to the forklift panel. System operation will be explained in detail during
configuration.
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8.1.3 Appliances Used in the System8.1.3.1Readers and Antennas
RFID readers and antennas which will be mounted to the forklifts are ALR-8800 model
readers owned by Alien firm. The reason why this model is selected is because of its high
and incessant ability of reading, its applicability to the whole foundation and its remote
administration capability. Also, its firm software can be updates online instantly and it
supports international standards of ETSI EN 302-208, ETSI-EN 301-489 and ETSI EN
300-220. It also supports international standards of EPC Gen 2 of Globalwhich
determines the safety compatibility of BS EN 60950, BSEN 50364 and the RFID product
standards.
Figure 8.1 A scene from a trial practice of readers and antennas which will be used.
A photograph of reader and antennas taken during a trial practice is seen in Figure 8.1.
Alien ALR-8800 reader protocol can be controlled remotely and has a management function
which is adjustable for different implementations on the XScale/Linux basis. Considering the
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protocols which can be variable in the future, EPC Gen 2 implementation has a structure of
signal functioning which can be re-programmable.
An uploader exists in ALR-8800 and it can upload new configurations to various reading
points, antennas etc. or it can adjust itself according to these configurations by downloading
present configurations which exist here. Thus, it becomes much easier to add a new reader to
a present system. Newly-added reader can work on the present system configuration by
recognizing it. This consolidation feature will provide connection between sensor, indicator
and actuator without the need of any extra equipment and will be a factor which will reduce
the cost.
Another advantage of Alien reader is that its signals are general purpose input-output (GPIO)
which are isolated optically, by this means its signals can be sent both as an input or output.
Also, thanks to the optic isolation, signals can run on loud, humid etc. industrial environment
conditions.
Electronic circuit of the reader is suffused with a resistant steelwork and its connection points
are attached on the steelwork in such a way that it cant come loose even in the high vibrating
environments. During the project, reader is tested in the positions where vibration, high or low
temperature, dust and moisture is intensive and it is observed that no differentnesswhich
would affect the communicationis experienced in the signal level.
Another advantage of the reader is that in case of any power cut or power loss, it can continue
on its latest activity when it is reactivated. In case of any cable wear, rupture etc. which can
happen when forklifts are used too fast by the operators and because of the operating
environments of the forklifts, no information loss will be in the reader. Likewise, during a
power cut in the network connection, reader continues to operate and when the network
connection is re-provided, it continues to send the informationwhich is gathered when it
couldnt be able to reach the networkto the middleware, in full. This is called operating in
autonomous case. Scenarios like power cut and unlinking the network connection are tried
during the project and it is seen that reader works perfectly in the mentioned cases.
Identification of more than 2500 tags and their features are included in the permanent and
unchangeable memory card of the reader. Also, permanent memory can be developed with
software updates. It can be said that the biggest advantage of the reader is software updating
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continuously. Forklift which is used in the storage of the tire manufacturer and which will be
connected to the reader and antennas can be seen in the Figure 8.2.
The only disadvantage of ALR-8800 is that it operates with 2 or 4 antennas in TX-RX way. If
we would have used a single antenna during the project, its mounting would be much easier.
However, we were obliged to attach two antennas under the forklift as it does not support
single antenna. Nevertheless, readerwhich has many connection points, has also the feature
of connecting with any electronic device, besides being full-compatible with
Motorola/Symbol AS400 screen which is found on forklifts.
In addition to these, reader has the features of Dense Reader Mode which enables it to
operate in dense and multi-reader environments and Listen-Before-Talk (LBT) which
prevents reader and other deviceswhich operate with radio frequencyto be clashed with
each other.
Another important advantage of ALR-8800 is that it only operates during the operation in this
project where many forklifts are operating nearby, and it shifts to a sleeping mode when it is
not operating.
Figure 8.2 Forklift which will be connected with reader and antennas
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By this means, number of readers which operate simultaneously in the environment reduces
and reader only operates in the needed time. Table 8.1 shows the features of Alien ALR-8800.
Table 8.1 Features of Alien ALR-8800
Manufacturer / Model Alien ALR-8800
Architecture XScale processor, 64 MB RAM on Linux
OS, 32 MB Flash, Digital Signal Processing,
FPAA
Supported RFID Tag Protocols EPC Class 1 Gen 2, ISO 18000-6c
Reader Protocols Alien Reader Protocol
Autonomous Mode
Upgradeable Architecture for future EPC
protocols
EPC Gen 2 reader architecture
Network Protocols DHCP, TCP/IP, SNTP, DNS, SNMP
Dense Reader Management Dense Reader Mode, Listen Before Talk,
Auto triggering and event management
Frequency / # of Channels 865.6 MHz 867.6 MHz / 10
Channel Spacing 200 KHz
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RF Power 2 Watt ERP
Power Tri-voltage AC/DC power converter; 45
Watts maximum 120 or 240 VAC
Antennas
4 ports for 4 read points; multistatic
topology; circular or linear polarization, 6
meter cables, reverse polarity TNC
connectors
General Purpose Inputs/Outputs 4 inputs, 8 outputs, optically isolated, 0.5
watt current capacity
Dimensions (L) 28 cm x (W) 22.9 cm x (D) 5.6 cm
Weight 2000 gr
Operating Temperature -20C to +50C
LED Indicators Power, Link, Active, Ant 0-3, CPU, Read,
Sniff, Fault (red)
Software Support Java and .NET APIs for Alien Reader
Protocol, Alien Gateway demo and test
software
Compliance: Safety ETSI EN 302-208, EN 301-489, EN 300-
220, EPC Gen 2
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8.1.3.2TagsWe have previously mentioned the weight of forklifts causing uncleanness/eroding away
of the tags. In the project implemented to a tire manufacturer, RFID tags will be
embedded into a concrete and it will be covered with epoxy. Thats why cable type
embeddable tagswhich are produced by William Frick & Company as Smart Mark
brandis used in the project. These are the resistant tags which can be embedded into
palette, concrete, tree, plastic, carbon, etc. and whose performances do not decrease.
Figure 8.3 shows the photograph of tags taken during they are being tested and their
general structure.
Figure 8.3 General structure of the tags which will be used
Chip cable is located in the middle of the tag and it is connected to a RFID antenna until the
cable end. This design enables reader to have 360 degree of reading area and an increase on
the precision of layout order. Reading area of the tag varies by the object it is embedded into
and its embedding distance. It is inserted into a hole which has a similar size with it and which
is drilled with concrete saw. Even though the chosen tag is UHF tag in 915 MHz frequency
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standard, it enables to be adjusted in the requested frequencies. Table 8.2 shows the features
of WF-SM-IN01 and 02 tags which are used in the project.
Table 8.2 WF-SM-IN01/02 General Features
Manufacturer William Frick & Company
Model WF-SM-IN01
WF-SM-IN02
Dimensions 114 mm x 3 mm
152 mm x 3 mm
Frequency 915 MHz Standard
Adjustable based on the project
Standards EPC Class 1 Gen 2 Passive
Functionality Can be embedded into concrete, tree, plastic,
carbon, composites, etc.
Implementation Areas Critical Asset Tracking, Real-time Location
Systems
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8.1.4 System Configuration and Pilot Study
Tire manufacturer still uses Cubic Store Management System software in its system. Cubic
manages, saves and reports the whole processin computer environmentfrom production
and/or acceptance of the product to its dispatch, by using the automatic identification
technologies. Additions are done on Cubic for the placement of palettes in accordance with
the stock methods of evaluation such as FIFO, LIFO etc.
In the first phase of the project, palettes location definers in the Cubic system, in other words,
their addresses, are written inside the tags. The moment operator receives the palette a
command concerning the current stock method of evaluation will be issued to it.
In the second phase of the project, front side of the places where palettes are located are
sawed and tags are inserted in. Figure 8.4 helps you to visualize the application area of the
pilot project, palettes and the locations where the tags will be embedded. On the left side of
the image, the area where the pilot project will take place is showed. A tag containing palette
location for each palette line will be embedded on the red line which is seen on the right side
of the image.
Figure 8.4 Project area, palettes and the line where tags will be embedded.
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Figure 8.5 shows the embedding stage of the tags after the concrete is sawed.
After the embedding stage of the tags, it is carried on with the connecting reader and antennas
to the forklift stage, which is more challenging. Antennas are placed on the fork in the actions
such as palette, monitor tagging. However, because the tags are embedded on the floor in our
project and because the antennas cannot read the tags efficiently when they are on the fork,
base of the forklift is determined as the most convenient place for antenna placement. Figure
8.6 shows the location where antennas are connected to forklifts.
Figure 8.6 Antennas connecting to forklift
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Cables of the antennaswhich are fastened up with strong industrial adhesive tape and
bandsare gathered in one place and a point of support is created in the immobile part of the
fork on a forklift, later these cables are put into the forklift cabinet in order to be connected to
the reader. Most convenient point for the reader is detected as the back of the right side of the
cabinet where operator makes no rise and fall and where the Motorola/Symbol AS400 forklift
screen is located. Power cable connection got completely ready for the test operation of
forklift, after the antenna connections and connecting with the forklift panel. Figure 8.7 shows
the appearance of the forklift after the cabinet mounting is done. We have mentioned about
tags, reader and middleware when we were talking about the general components of RFID
systems in the previous chapters. Placement of the tags and reader in our system is
accomplished. At this phase, system is ready to operate with a command of a middleware.
Middleware communicatesthrough radio frequency, with forklift panel and wireless
network, panel series connection with forklift panel RFID reader, RFID reader tags.
Figure 8.7 Connection of reader to the forklift
When the operator gets on the forklift and starts operating it, forklift screen, antennas and
reader will be ready to operate. When the operator loads a palette to a forklift for production
and/or storage, he will read the palette barcode via remote control manual barcode reader and
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this read barcode information will be sent to Cubic software through wireless network. Cubic
software will inform forklift panel the delivery address of the palette via wireless network,
and the panel will reflect the necessary command concerning the delivery address of the
palette, to the monitor.
As it will be seen in Figure 8.8, Cubic software wants forklift operator to send the palette
whose barcode is readto the address numbered TB1002. The moment the forklift operator
goes to this address, reader will read the RFID tag in the address and tell the operator whether
he is in the correct place or not. Operator will be obliged to take the palette to the correct
address as he will not receive any new command till he find the correct address. Figure 8.9
shows that the operator takes the palette tagged as 007230 RFID to TB1001 by mistake,instead of taking it to TB1002 address. And the system warns him indicating that he is in the
wrong place. Operator will continue to receive this warning until he takes the palette to
TB1002.
Figure 8.8 Screen that middleware gives its first command to the operator
Figure 8.9 Wrong location screen
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And when the operator takes the palette to the correct place, he will see the correct location
screen which sends green light, then he will move for his next duty.
Figure 8.10 Correct location screen
8.1.4 Data and Evaluations Acquired as a Result of Pilot StudyAlthough it is in the beginning of a pilot stage, it is pretty successful according to the
datas acquired by the end of a month. First datas acquired in the project application done
with 80 addresses and 2 forklifts, are as follows;
- 993 out of 1000 palette placements were successful.- It is detected that failed readings are caused by the inconvenient settings of tags,
incorrect frequency adjustments and entering wrong address information. These are
also corrected.
- Decision maker position of human factor is completely abolished in palette placementsand automation is enabled.
- As it is detected that which product is in which address, probability of loosing aproduct in the stock is prevented and palette carriage actions decreased from 11minutes to 6 minutes.
- Placing a palette to a right place was detected as 820 palette per 1000 palette beforethe system is established. It can be clearly seen how high this rate is in a full-scale
storage. 0.993 palette rate acquired in the new system provided a 17.3% rate of
improvement in the productivity. It can be clearly said that, non-carrying cost caused
by not being able to find the products, is decreased at least at this rate.
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Unit cost of the tag used in the pilot practice of the system is 6 USD, and unit cost of the
reader and antennas per each forklift is 3.350 USD. In this case, tag cost for 4000 adress is
24.000 USD, cost for forklift is 100.500 USD, therefore the total cost will be 124.500 USD.
Even though the systems investment seems high at first, besides its advantages, its cost will
be stabilized, in other words, tag, reader and antennas will not bring any more cost in short
and medium terms. This can be considered as the biggest advantage of the system.
Time elapsed during the movement of the palettes for sale, shipping etc. is decreased at 46 %
rate. Without a shadow of a doubt, the biggest factor of this recovering is the abolishment of
the wasted time experienced when 1 to 9 palettes are taken down one by one because of the
misplaced palette after superposing themas this is mentioned in the problem definition.When the effect of the time gained from here to total running hours is considered, it can be
easily said that efficiency of the storage is improved.
After tire manufacturer carries out its pilot practice a bit longer, it plans to launch a location
verification practice in whole storage via RFID system. After this system, transformation of
palette barcodes into RFID tags is considered. However, besides being only in the beginning
of the planning stage in this project, some constraints such as; appropriate tag selection since
the palettes are metal, definitive integration with Cubic are deliberated. In pursuit of location
verification system, operators only duty will be driving forklifts and a complete automation
will be provided via the system which will be established in short or medium terms.
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9 DISCUSSIONS, EVALUATIONS AND RESULTS9.1 Discussions
No sooner technology develops, than new implementations on every field of industry
emerges. Nowadays, most mentioned revolution is RFID systems, particularly in logistics.
There is an increasing number of executives who would like to apply RFID systems in
their facilities, not only in the world but also in Turkey. When I was working actively in
the Nexus Informatics Industrywhich is a leader RFID executive and consultant, during
my thesis study, I have witnessed the relish of many executives. However, many of the
firms who would like to apply RFID systems do not know why and how they should apply
the system, and what would be the advantages when they apply. This is the reason of
forgetting the most important element for the RFID systems, planning stage which
provides the return of the investment to the owner within the shortest time and prevents a
failure of the project from the beginning. In order for a RFID system to be successful,
configuration steps which are told in practice should be applied one by one.
As the biggest obstacles preceding RFID systems, there are 3 issues that shines out;
implementation difficulty, standards and cost. Although the borders are removed while
designing a RFID system, increasing cost in the challenging working conditions, required
analysis for the efficiently usage of radio frequencies and long or medium term pilot
studies should be planned before establishing the system.
There is still no world-wide accepted standard exists concerning RFID systems. Each
country determines its own frequency and power emission values. Even though it does not
pose a problem in local implementations, standard space causes serious problems in
international implementations.
Cost factor can be the biggest obstacle preceding the improvement of RFID systems.
Whereas barcode printing is not seen as a cost factor nowadays, passive tags whose usage
is most common are in the price range of 0.15 1.00 USD. Besides, reader and antenna
costs are pretty high when it is compared to barcode systems.
In addition, notions like safety and right to privacy should be regarded.
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9.2 Evaluations and ResultsBesides from its disadvantages, RFID systems also has lots of advantages. As it is
mentioned in the study, tracking in product level, flexible and wide data storage, real-time
multi data transfer are the issues inure to the benefit of the facilities. One of the worlds
leader tire manufacturer and Turkeys leader logistics firm is analysed in the study and
their advantages acquired via RFID systems are seen clearly. High investment costs made
in the beginning are observed to have gainings such as; speed, flexibility, productivity,
abolishment of human factor/automation, customer satisfaction and cost reducement in
time. Also, when the features of RFID sysrem components increase via research and
development, their prices are tended to decrease.
Researches made show that RFID market size which is 5 billion USD nowadays, will
increase approximately 550 % only 10 years later.
Studies still being carried out shows that RFID studies will be an unchangeable notion not
only in industrial issues, but also in our daily lives. In every field we benefit from radio
frequency technology; from passports to credit cards, from cell phones to automobiles.
RFID systems which are seen as a destructive technology on barcode systems as of today,
is only in a structure compatible with barcode systems yet. It is right to tell that barcode
systems will be replaced by RFID systems in near future with reducing the prices of RFID
components, an increase in the number of experts in the system configuration and creating
a specific international standard. Disadvantages which are removed by the highlighted
improvements and with its advantages, it can be considered that RFID systems will be the
most important technology affecting our near future.
When scarcely each one of its two projects is applied in logistics and supply chain
management is considered, it can be said that RFID technology will be a standard in these
fields and the one who applies the active system will succeed.
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INTERNET REFERENCES
Alien Technology
C-Net
ElborgXRF
FEIG Electronics
EPCGlobal International
EPCGlobal Trkiye
GS1 International
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