From Ford to Fahrvergnügen, RFID Expands the Opportunity to Streamline Production and Lower Manufacturing Costs

In 1885, Karl Benz built the first car run on an internal combustion gasoline engine and began the production of automobiles in 1888.  In 1908, the Model T was introduced by the Ford Motor Company, followed by the introduction of the assembly line method of mass production.  Henry Ford’s commitment to streamlining production and lowering costs continues in the automotive industry today, which has more challenges and complexities than ever before.

With components supplied by more than 4,000 suppliers and complex processes like subassembly procurement and pre-delivery planning, automobile manufacturers are challenged with maintaining a competitive edge.  Manufacturers continuously need to find new ways to improve material flow, optimize planning, and streamline the transport process.  Today, RFID is playing a crucial role in addressing these challenges.

With this week’s 100 Uses of RFID program focusing on the transportation market and having been a Volkswagen owner for many years, I have a personal interest in covering Volkswagen’s use of RFID.  With their dedication to manufacturing quality and the creative ways they differentiate their brand, I’m not at all surprised by Europe's leading vehicle manufacturer’s use of RFID to drive improvements into their supply chain and manufacturing processes.

To improve its material logistics operations and implement an integrated, paperless production and logistics chain, Volkswagen has partnered with IBM.  According to an IBM announcement, VW is driving to become the first vehicle manufacturer to make daily use of RFID in its supply chain and manufacturing processes.  Highlights of VW’s use of RFID include:

• Parts suppliers are applying RFID tags to shipping containers carrying auto parts destined for Volkswagen
• Data from the tagged containers is automatically collected by RFID Readers at key locations throughout the supply chain including supplier shipping areas, various transportation points, parts receiving areas at Volkswagen, during storage, and on the assembly line
• The same RFID system is used to ensure that all empty containers are returned to Volkswagen’s suppliers

Given the size and complexities of the automobile supply chain and manufacturing process, companies like Volkswagen are implementing RFID to automate key areas of their operations.  Do you expect more automakers to implement similar applications to compete with the lemons coming off of the production line?  Let us know your thoughts.

Temperature Tracking in Real-Time for Sensitive Shipments

Admit it. In addition to laughing at the humor of this Nextel commercial, you found interesting how easy it was to know inventory levels, track a shipment and its ETA.  That was a few years ago, and today, people have come quite accustomed to knowing, at any given time, where their package is and when it will get to its destination. And a late delivery is not an option.

But in some industries, speed of delivery isn’t the priority – or at least not the only priority. Temperature is important too. Pharmaceutical companies are painfully aware of the need to track temperature because the United States Food and Drug Administration (FDA) requires that they guarantee acceptable temperatures of drugs in transit. Having had to carry Epi-Pen myself, I fully understand that temperatures that are both too high and too low will render them useless. And that’s a scary thought if the only remedy to anaphylactic shock isn’t going to work because of something that is easily within my control. But is it easily within the control of the pharma companies?

They have many, many more potential pitfalls than the customer who needs to be aware of where he’s storing his prescription drugs. They are dealing with transporting drugs through different climates, as well as the complex path of the deliveries which could involve handoffs between transit and temporary storage points. Envision a line that leads from the factory to the product’s ultimate destination. Along this line are supply chain “checkpoints,” where the shipment can either change from road to air, for example, go into storage or go through some other status change. As it moves from one leg of the journey to the next, the environment around the package changes.

Among other shipping companies, DHL has had to figure out how to manage these challenges.  In addition to the FDA mandate, DHL received requests from pharmaceutical customers to offer more options for temperature-controlled logistics. The initial method to meet that need was to use specialized, highly insulated containers that would maintain the desired temperature range. This method proved to be effective, but very costly. It added weight to the shipments and required more packing time making it economically impractical on a large scale.

That’s where RFID came in. As quick background, Deutsche Post World Net (DPWN), the parent company of DHL, formed the Technology and Innovation Management (TIM) Group. Led by its director, Dr. Keith Ulrich, the TIM Group formulated a plan to use RFID technology to track the temperature of shipments at various points from departure to arrival. IBM Global Business Services mapped out the framework which included where and when readings should occur. For RFID expertise, the team engaged the IBM Sensor and Actuator Solutions organization and IBM business partners whose products use RFID technology to track the freshness and temperature integrity of goods.

The RFID system is designed to check and report the temperature of the shipment at every supply chain checkpoint, so DHL knows if there is a problem before the shipment even reaches the airport. That way, DHL can stop the shipment and initiate a new one, minimizing the impact on the customer. In a nut shell, real-time temperature monitoring provides pharmaceutical manufacturers with greater control of their distribution processes. And because it can be delivered at relatively low cost and delivers strong value to the customer, DHL’s first-of-a-kind solution serves as a competitive differentiator.

With this type of solution, I think I’d entrust my Epi-Pens to DHL. How about you?

RelayRides Provides Access to Your Neighbor’s Car with RFID

This summer on the streets of Cambridge, MA, a few well intentioned hawkers were handing out nicely printed postcards with information about what appeared to be some kind of local ride share offering.  A commuter from well outside of Cambridge, I stuffed the card in my bag and didn’t pay it much attention.  It wasn’t until I read a recent article published in Scott Kirsner's Innovation Economy column in the Boston Globe that I made the connection. 

RelayRides, the business being marketed on the post card and the subject of Kirsner’s article, is a Cambridge based start-up that matches people who need a car for local transportation with people who own underutilized cars and want to earn a little money by lending them out.  Marketed as person-to-person or neighbor-to-neighbor car-sharing, RelayRides puts a twist on car-share services by getting car owners to share their vehicles with perfect strangers.  In addition to facilitating the transaction and insuring the drivers, RelayRides also installs the necessary technology in each car – including an RFID sensor that unlocks the doors when a RelayRides membership card is swiped over the windshield.

Car sharing in Europe began decades ago and started to catch on in the United States about 10 years ago. ZipCar, which owns a fleet of vehicles instead of using other people’s cars, is a leader in the car share market with about 325,000 members.  According to an article in The New York Times, ZipCar is experiencing increasing competition from small regional car sharing services, presumably like RelayRides, and from programs offered by well known rental companies like Connect by Hertz and Enterprise WeCar. 

With Connect by Hertz claiming most of its 10,000 members participating in programs offered at universities and ZipCar claiming to have cars on 140 campuses, the education market seems to be a prime target for their programs.  The growing number of hybrid and electric cars entering the market also seems to be a natural fit for car-share programs – lending to analyst forecasts of membership growth to two million by 2013.

What do you think?  Would you participate in a car-share program with your own car?  On a larger scale, what are your thoughts on the combination of RFID-enabled automobile access for car-share programs, RFID-enabled electric car charging stations, and contactless payment methods?  They seem to be making for an interesting emerging transit and commuting infrastructure. 

Schools Out, Do You Know Where Your Child Is?

“4-year-old left on school bus”.  Headlines like this one from the September 3, 2010 issue of the Joliet, IL Herald-News seem to be repeated several times every year.  Imagine the panic experienced by a four year old who thought they were going home, but find themselves in the bus parking lot hours later.  Imagine the feeling a parent has when their child does not get off the bus at their designated stop.  Not to mention the resulting calls for the resignation of otherwise responsible school bus drivers and law suits filed against schools.

To help avoid frightening and potentially costly mistakes like these, several school systems have deployed or are considering RFID-enabled solutions to help monitor children when they are traveling to and from school on busses.  Through the combination of RFID tags placed on students' backpacks and equipping school busses with RFID readers, schools can monitor student movement and automate in-transit attendance.  By combining the data form RFID readers with data from GPS tracking devices that are already installed on most busses, school administrators can look up the ID number of a specific student, find out what bus they boarded, the location of that bus, and whether they exited the bus or not.  Some systems even send text alerts to parents, letting them know when their child gets on and off a bus and provide an online view of the busses while en route.

Privacy Concerns

The adoption of RFID by the education markets comes with privacy concerns.  Some parents object to electronically tracking their children’s whereabouts, suggesting that it might compromise their privacy.  Despite the fact that passive RFID tags carry little information about the person carrying them and are unable to transmit signals over long distances, these concerns are well founded and must be addressed by solution providers and schools alike.

With the right privacy safeguards in place, in emergency situations or as part of a standard transportation attendance process, RFID-enabled solutions can help schools do more efficiently and effectively what they’re already doing manually.  And, in the case of tracking children on school busses, puts parents' nerves at ease.

For examples of schools implementing RFID solutions to track students on busses, check out the following articles:

Technology Tracks Schoolbus Kids

Indian Schools All Set to Implement RFID and GPS Based Tracking System

Your Child Is Now Safe with RFID Equipped School Buses

Would you be open to your child’s school implementing an RFID-enabled system to monitor and report your child’s whereabouts?   While mistakes happen, I can’t think of one parent, teacher, or school administrator who would want to be caught up in the headlines.

RFID Lends Precision to Fighter Jet Refueling

We’ve seen how RFID can be used for on-board parts tracking in the plane industry, primarily to streamline aircraft configuration, maintenance and repairs. But the military has found a way to use RFID to improve in air refueling.

When an F-16 Fighting Falcon approaches a KC-135 for fuel, the receiver aircraft is manually tracked by the Boom Operator. The information tracked for the receiver plane includes tail number and squadron and must either be visually identified or communicated by radio. During night operations and radio silence situations, this can be complicated. And when visual identification and communications are hindered, it takes longer for the KC-135 crew to accurately log the aircraft and fuel information. Adding to that complexity is manually entered information which can be inaccurate and thus costly.

The Air Force Flight Test Center constantly conducts flight tests and gathers data to maintain America's tactical dominance in the sky. Along with that, the AFFTC looks to improve the Air Force's efficiency. The KC-135 Automatic Receiver Aircraft Identification (ARAI) testing aims to do just that.

The ARAI is to be installed on KC-135 tankers to make the air-to-air refueling to a receiver plane more efficient and economical. Phase 2 testing for the ARAI began at Edwards Air Force Base, which included a flight test using an NKC-135 test tanker installed with ARAI and an F-16 Fighting Falcon equipped with RFID tags.

The NKC-135 will use its ARAI antennas to scan the F-16 to authenticate it and accurately gauge the amount of fuel transferred. The data that the ARAI retrieves is logged into a computer aboard the tanker. Accurate information is important because when an aircraft is refueled by a KC-135, the plane's squadron is responsible for the fuel cost. The Air Force is now able to budget for their fuel needs and costs more efficiently.

Millions of dollars can be lost every year because of unaccounted for fuel tracking or fuel tracking that is allocated incorrectly. When there is no communication between aircraft, it becomes necessary to estimate. The RFID-enabled process lets the boomer focus on what's important - refueling the aircraft and accomplishing the mission.

Transportation manufacturing industry relies more and more on RFID

Based upon the uses of radio frequency identification and sensing (RFIDS) we’ve explored during our 100 Uses of RFID program so far, such as asset tracking and automobile telematics, you have to wonder if RFID would have helped Neal Page get home to Chicago any faster in Planes, Trains & Automobiles.  (OK, you may not think of this, but we do since we love this space so much.)

If the car rental company that lost Neal’s reserved car in St. Louis had used RFID to track its fleet, would the car have been there, sparing him the expletive-laden tirade and allowing him to get home?  Would the car that Del Griffith successfully rented have had sensors that would have detected Del’s lit cigarette, keeping it from becoming a charred convertible?  Would the train that broke down in St. Louis been in better condition if RFID helped ensure a higher quality manufacturing process to begin with?

Of course, this classic movie wouldn’t have been as funny or successful if these scenarios played out, but we ask because these are all ways that RFID is being used by the transportation manufacturing industry.  Today, we continue the 100 Days of RFID by kicking-off a three-part series on this market.

Planes

Airplane manufacturers use RFID heavily in managing its supply chain.  Given the long, complex manufacturing time for a commercial jet, with millions of parts, Boeing and Airbus have used RFID for parts tracking and inventory control for over six years.  That use is now evolving from supply chains and assembly plans to the tracking of parts onboard the aircraft in use by airline fleets.

Boeing is using RFID tags on its new 787 Dreamliner, which will see first shipments in use by the end of this year.  The Dreamliner has tags affixed on its “maintenance-significant parts,” while Airbus’ forthcoming A350 (due in 2013) will use RFID on 1,500 of its parts for what the industry refers to as “airborne RFID.”

The use of RFID tags on these parts gives airlines the ability to track and monitor avionics and other parts after they've been installed on the aircraft. Information gleaned from the tags will support aircraft configuration management and line maintenance, repair shop optimization and life-limited parts monitoring. Consequently, the fast maintenance turnaround facilitated by RFID can translate into improved on-time performance.

Trains

In the train market, a new and very interesting application of RFID is emerging.  Bombadier, which many people know as the manufacturer of Leer jets, also is the number one manufacturer of passenger rail equipment.  Bombardier also runs a $1 billion services business that operates and maintains 8,000 rail vehicles under contract around the world, including the MBTA commuter rail service here in Boston.  To help it grow its existing business in this area, the company is developing a new set of products and services leveraging RFID.

For example, the track on which trains run, must be maintained and visually inspected for defects every 2-3 days.  For the most part, this inspection is done manually by transit workers walking along the track looking for problems, putting them in harm’s way.  As a result, it saw an opportunity for a new RFID-based system called TrackSafe. With the system, track workers wear vests containing RFID tags that automatically link to readers installed approximately every 500 feet along the track.  The readers are connected to a warning light and speaker cluster designed to activate whenever a train approached a construction or maintenance area. Train conductors, alerted to the workers' presence, would instantly know that it was time to slow down and proceed with caution, while workers would be alerted to oncoming trains.

A challenge it had when offering the system, which is not uncommon to RFID applications in general, is the objection among track workers that they would be monitored for the wrong reasons.  To overcome this challenge, Bombardier applied the concept of “sketching the user experience” created by Microsoft product visionary Bill Buxton.  This involves understanding human-computer interaction in order to design technology-driven products that are accepted and effectively used.

Automobiles

 RFID in the automobile industry has seen several applications going back to the early days of key fobs, to more recently the integration in the factory, for tracking parts containers across far-flung supply chains and for yard management in vehicle processing centers.

But getting back to our Planes, Trains & Automobiles movie reference, based upon very recent increases in the use of RFID by car rental companies, the days of Neal Page’s lost car may be coming to an end.   Thanks to two advances in RFID technologies, rental companies now can tag entire fleets and use RFID to better manage them from an inventory and security perspective. 

1. Smart labels – Low-cost RFID tags embedded in windshield stickers can be quickly and cost effectively affixed to rental cars.
2. UHF readers – The improved read range and performance of today’s UHF readers allow rental cars to be read as they are being driven off the lots, relaying the information instantly to software systems tracking the availability of vehicles.

All of this helps the rental operation streamline its inventory management, improve employee accountability and reduce labor and equipment – not to mention spare its rental agents from expletive-laden tirades from customers!

Computer Program and RFID-Enabled Toys Designed to Help Preschoolers Learn Faster

This post was sourced from Twitter with credit going to @zanderliving.  The tweet linked to a recent blog article from Trridev Labelss Mfg. Co, a provider of automation solutions and barcoding equipment, and struck a chord with me as so many kids are on their way back to school this month. 

As teachers prepare their classrooms and lesson plans, imagine the extra care taken by those who are planning for rooms full of kids with special needs.  A group of researchers are hoping to make the transition from summer fun to structured classroom a little easier for deaf children by developing an RFID-based system that combines RFID-enabled toys and a computer program to teach sign language.

The Trridev Labelss blog article is posted below:

Thanks to a computer program and RFID-enabled toys, preschoolers learn faster

A group of researchers in the United States are developing a system that uses RFID to teach sign language to very young children.

While there are a whole variety of computer-based sign language learning programs, none of them are very well adapted to the special learning needs of 3 to 5 year olds. The professors and researchers in question have created a system that combines toys and a computer to make sign language more real and more understandable for preschoolers and their parents and teachers.

RFID tags are embedded into several dozens toys, each representing an airplane, dog, cat, car, house, boat and so forth. When a child brings one of the toys up to an RFID reader situated near the computer, the computer screen automatically shows a video of a person demonstrating that item’s sign, as well as several other images of that item. The program also displays the printed word on the screen and speaks the word out loud, for the benefit of parents or educators who can hear. 

The importance of starting to learn any language, including sign language, as early as possible in childhood is very well known. By allowing educators to link actual objects that can be seen and held with their sign, RFID is helping make it easier for very young deaf children to build a solid foundation in learning.

With technology in the classroom changing so rapidly, it is heartening to see that innovation is reaching children of all learning abilities.  Now, with new clothes purchased, school lunches packed, and an early morning routine re-established - its back to school.

Feel free to share your experience with technology in the classroom below.  How else could RFID be used to help students learn and teachers teach?

Trridev Labelss cited http://www.discoverrfid.org/ as the original article source.

Low Cost, Item-Level Tagging for Package Verification, Work in Process, Product Authentication, and More

One major milestone achieved by the RFID industry over the last 10 years is its more affordable price tag.  RFID tags in particular used to cost about $5.00 each.  Now they cost pennies each.  We’ve celebrated the innovative uses of RFID in this blog, many of them made possible because deployments are easier on the budget, including lower tag cots.  Now it’s time to recognize the positive cost impact made by RFID printers/encoders.   More specifically, products from ThingMagic partner Zebra Technologies, designed for organizations with high-volume, mission-critical or specialty labeling applications.

Zebra recently announced the R110Xi4, a new high-performance RFID printer/encoder which is fully integrated with the ThingMagic Mercury5e embedded module for UHF read/write capabilities.

The R110Xi4 addresses the growing market for high-volume, item-level tagging and the recognized market shift from compliance-based tracking to more item-level tracking applications; such as retail item tagging, package verification, work in process, product authentication, document tracking and healthcare specimen tracking, to name a few.  In addition to item-level tracking, the R110Xi4 streamlines business improvement and supply-chain management applications like asset tracking and inventory management across retail, manufacturing, healthcare and distribution channels.

In the spirit of lower cost RFID tags, Zebra’s RXi4 overcomes one of the largest barriers to RFID adoption – media cost – by up to 10 percent. Here’s how.

It simplifies set up because the auto-configuration enables encoding of a variety of different RFID tags.  It also cuts cost per label, requires fewer media-roll changes and saves time with faster throughput by encoding RFID inlays that are spaced closer together (.6"/16 mm).  The RXi4 can detect the RFID inlay position within the label and automatically configure the printer/encoder without having to manually calibrate for the inlay – ensuring tag accuracy and saving time and money. If a tag is not encoded accurately, the tagged asset doesn’t “exist” in inventory or in transit and becomes lost, costing money and time.

But wait, there’s more.

Zebra’s Xi™ series printers are built for rugged durability, outstanding print quality, fast print speed, long life, and unparalleled reliability in demanding applications. How’s that for lower total cost of ownership?

Serving Up Soft Drinks, Freestyle

In this week’s posts we’ve covered a variety of topics related to the application of RFID in the beverage market, including beverage supply chain optimization, product authentication, inventory management and patron identification, but there’s more.  Coca-Cola recently began testing a new drink dispenser called Coca-Cola Freestyle™ that they hope will reinvent the market. This may be one of the most innovative uses of RFID and other technologies that the beverage market has seen in a while.

Innovation - Freestyle

If microdispensing and PurePour aren’t terms you are familiar with now, they will be soon.  These are but just a couple of the new technologies used in the Coca Cola Freestyle – a drink dispenser that also includes a curved metal enclosure created by the designers of Ferrari race cars and the latest in touch-screen menu technology. 

Using technologies similar to those used to deliver precise doses of drugs, a single Coca Cola Freestyle can dispense over 100 different beverages.  Through this microdosing process, drink ingredients are blended with water and sweetener and then dispensed from the machine.  Taking innovation a step further, the 30+ 46 ounce flavor cartridges in each Freestyle machine are RFID enabled, allowing Freestyle to detect its supply levels and transmit data back to Coca-Cola and the dispenser owner for re-stocking, and to report which brands of drinks are being consumed and when.

With 1.6 billion servings of Coke sold worldwide every day, one of the most interesting aspects of this system is the massive amount of real-time data it will be providing to Coca-Cola to help assess consumption trends and to improve test marketing activities.  For a view of what a dispenser analytics dashboard might look like, check out these images from SmartData Collective.

‘Like’ Coke?

The way that beverage manufacturers and retailers are connecting with their customers is also changing.  High-cost broadcast and print advertising is giving way to social networks and other methods of permission marketing to extend reach and deliver personalized messaging.

As mentioned in our post RFID and Social Networks, Coca-Cola and handful of companies including Facebook, recently teamed to host an event that leveraged RFID to bring the digital ‘Like’ to the physical world.  With over 500 million active users on Facebook and nearly 11 million who “Like’ Coke’s Facebook business page, a new way for brand owners like Coke to market to their customers is beginning to rapidly emerge.  Will a combination of RFID enabled displays, wristbands like those used at the Coca-Cola Village, and mobile devices help retailers, restaurants, theme parks, museums, and even brand owners, take “Like’ marketing beyond its virtual confines even further to the physical world?

Coke also has a Freestyle Facebook page that lists its test locations, drink flavors, and, of course, Wall comments from many satisfied customers.  This page also has many requests for Freestyle to be sent to "my" location - building awareness and demand from its virtual community of 'Friends'.  Described by Coke:

It's the ultimate beverage experience.

It's about choice.

It's the perfect pour.

It's 106 brands in one special place just for you.

Thirsty?

Combating Underage Drinking and Improving Sales with Patron ID and Point-of-Sale Wristbands

The days of recreating the background of a state driver’s license in your garage, taking a cheesy picture of yourself in front of it, slipping it into generic plastic enclosure, and sealing it with your mom’s iron are over.  Now I’m not saying that I ever did that, but I’m sure others tried and were successful in passing off a fake ID to go somewhere or do something they weren’t old enough to do.

Regardless of the method used to produce them, trying to enter a bar or purchase alcohol are probably some of the most common uses of fake IDs.  The debate over the legal drinking age has gone on for years.  Regardless of the position that you take, establishments that serve alcoholic beverages must comply with the law or face stiff penalties.  Making compliance difficult, some young people are willing to take the risk of using a fake ID despite the consequences - including driver’s license suspension, fines, and higher car insurance rates.  As a result, simply checking a person’s ID to provide access to a bar or an event where alcohol is being served is sometimes not enough. 

RFID Wristbands for Patron Identification

With over 50 years of experience developing wristband ID systems and nearly a decade deploying RFID systems, California based Precision Dynamics helps event organizers and venue owners take ID checking to the next level.  For positive age identification and verification, the Precision Dymamics AgeBand® system scans the magnetic stripe or 2-dimensional bar code of an individual’s credentials (typically a driver’s license or other ID card) and prints their name and other pertinent information on a non-transferable RFID-enabled wristband.  If they are 21 years of age or older, the system also prints “Age ID Verified 21” on the wristband.  In addition to confirming the age data on a person’s credentials and providing visible verification for venues that serve alcohol, use of the AgeBand system provides a technology advantage over mean looking bouncers – often scaring away those using fake IDs before they try to enter an event.

In addition to being used to verify patron ages, AgeBands are made of thermal material to support point of sale applications.  When used in conjunction with a specialized kiosk, the system allows patrons to load cash credit onto their RFID wristbands to support instant, automated purchases at concession stands and other retail areas.

If it’s a safe event environment and increased sales that you are after, you may want to check out Precision Dynamics SuperFest case study.  The write-up details how the system helped increase throughput at concession stands, reduce long lines, and allowed the venue to replace expensive stand-alone POS units – resulting in a 15% increase in revenues.

We welcome your comments below.