Optimizing Processes with RFID and Auto ID, 2009

Bartneck/Klaas/Schoenherr
Optimizing Processes with RFID and Auto ID

Optimizing
Processes
with RFID
and Auto ID
Fundamentals, Problems and Solutions,
Example Applications
Editors:
Norbert Bartneck, Volker Klaas,
Holger Schoenherr
Executive Editor:
Markus Weinlaender
Publicis Publishing

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ISBN 978-3-89578-330-2
Editor: Siemens Aktiengesellschaft, Berlin and Munich
Publisher: Publicis Publishing, Erlangen
© 2009 by Publicis KommunikationsAgentur GmbH, GWA, Erlangen
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Preface
Herbert Wegmann
Herbert Wegmann is the manager of the Factory Sensors Division
at Siemens AG, Industry Sector. Moreover, he is entrusted with
the management of the group-wide AG RFID initiative.
RFID – the abbreviation for Radio Frequency Identification – has a
real magic meaning. Contactless identification of all kinds of objects
with electronically writeable data carriers in the absolutely low cost
area with ranges of several meters provides an opportunity for several
new applications: the ideas range from remote control systems
for logistics centers (“internet of things”) to an intelligent refrigerator
that can automatically order goods.
However, contactless radio identification is not innovation as such
and has been in use for industrial applications for a long time now.
As a leading manufacturer of RFID systems, Siemens introduced the
first industrial RFID system to the market 25 years ago. Moby M – the
name of this first product – achieved a read distance between the
transponder and antenna of, at most, 40 mm. However, the data carriers
already had a storage capacity of 64 bytes. In the meantime,
RFID is used successfully in several areas. However, despite the dynamism
displayed by the development of RFID, it is not the only option
available for identifying all kinds of objects. Optical codes such as
barcodes – as printed on all consumer goods in supermarkets – are
admittedly seen as outdated. However, the specific advantages of the
optical processes that, for example, take effect with the 2D matrix
code, can justifiably compete with RFID systems in some of their
applications.
Technology fascinates people and is the key to economic progress.
However, technology with no application focus only follows an end in
itself. Therefore, this book takes a look at both aspects: technical
basics and successful applications. In doing so, the issue here is how
existing processes can be optimized by using RFID and optical codes,
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Preface
reducing costs, and increasing quality. Several chapters describe how
automatic identification systems can be applied in a technically reliable
and economically viable manner – from the factory floor to hospitals.
I am proud of the fact that the authors who have compiled such an
exceptional scope in terms of content are all employees at our company
or at least worked for Siemens previously for several years.
Their contributions clearly emphasize Siemens’ technological and
solution expertise for RFID and Auto ID. Therefore, my sincere
thanks go to all of the authors and the editorial team of Norbert Bartneck,
Volker Klaas, and Holger Schoenherr. Special thanks also go to
Leslie Miller, Michael LaGrega and Markus Weinlaender and Kerstin
Springer for their project management and comprehensive editorial
work.
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Contents
1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.1 Historical Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.2 Proven in several applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
1.3 Innovation as a driver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Part 1: Technical Fundamentals
2 RFID technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
2.1 What is an RFID system? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
2.2 The components of an RFID system . . . . . . . . . . . . . . . . . . . . . . . . . 25
2.2.1 Reading device . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
2.2.2 Antennas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
2.2.3 Transponders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
2.3 Classification of RFID systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
2.3.1 Passive systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
2.3.2 Semi-active systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
2.3.3 Active systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
2.4 Frequency bands and their properties . . . . . . . . . . . . . . . . . . . . . . 35
3 Optical codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
3.1 Success and limits of barcodes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
3.2 Standards regarding the 2D code . . . . . . . . . . . . . . . . . . . . . . . . . . 39
3.2.1 Technology standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
3.2.2 Application standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
3.3 Data Matrix Code features . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
3.3.1 Data Matrix Code structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
3.3.2 Codable data with Data Matrix ECC200 . . . . . . . . . . . . . . . . . . . 42
3.3.3 Error correction and security aspects . . . . . . . . . . . . . . . . . . . . 43
3.4 Application and marking methods . . . . . . . . . . . . . . . . . . . . . . . . . 44
3.4.1 Application of labels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
3.4.2 Direct marking processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
3.4.3 Verification of the Code Quality . . . . . . . . . . . . . . . . . . . . . . . . . 47
3.5 Reading systems and their properties . . . . . . . . . . . . . . . . . . . . . . 48
3.5.1 Components of a data matrix reading system . . . . . . . . . . . . . 48
3.5.2 Stationary reading systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
3.5.3 Mobile reading systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
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8
3.5.4 Physical and technical data integration . . . . . . . . . . . . . . . . . . 50
3.6 Achieve good read results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
3.6.1 Optimization of the optical conditions . . . . . . . . . . . . . . . . . . . 53
3.6.2 Minimization of the material ambient conditions’ influence 54
3.6.3 Meeting the technological requirements . . . . . . . . . . . . . . . . . 55
3.7 Outlook and new developments . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
4 System architecture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
4.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
4.1.1 Software in RFID and Auto ID systems . . . . . . . . . . . . . . . . . . . 57
4.1.2 System characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
4.1.3 Processes, applications, and marginal conditions . . . . . . . . . 58
4.2 System levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
4.2.1 Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
4.2.2 Topologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
4.2.3 Application levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
4.2.4 Edgeware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
4.3 Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
4.3.1 System interfaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
4.3.2 Communication layers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
4.3.3 Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
4.4 Data flow and data management . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
4.4.1 RFID and Auto ID data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
4.4.2 Object identification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
4.4.3 Distributed mobile databases . . . . . . . . . . . . . . . . . . . . . . . . . . 67
4.4.4 Hybrid approaches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
4.5 System management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
4.5.1 Device management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
4.5.2 Edge server management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
4.5.3 Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
4.5.4 Availability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
4.5.5 Extendibility and adaptability . . . . . . . . . . . . . . . . . . . . . . . . . . 70
4.5.6 Invoicing functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
4.6 The EPCglobal Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
4.6.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
4.6.2 EPCIS and ALE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
4.7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
5 System selection criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
5.1 Automatic identification with Data Matrix Code . . . . . . . . . . . . . . 75
5.2 “Open Loop” applications with RFID . . . . . . . . . . . . . . . . . . . . . . . . 77
5.3 “Closed Loop” applications in RFID . . . . . . . . . . . . . . . . . . . . . . . . . 78
5.4 Conclusion: both technologies complement each other . . . . . . . 80

Contents
6 Standardization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
6.1 Why is standardization important? . . . . . . . . . . . . . . . . . . . . . . . . . 82
6.2 Standardization basics for RFID . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
6.3 The central RFID standard ISO 18000 . . . . . . . . . . . . . . . . . . . . . . . 85
6.4 Further useful standards and guidelines . . . . . . . . . . . . . . . . . . . . 86
6.5 Standardization of visual codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
6.6 Standardization through EPCglobal and GS1 . . . . . . . . . . . . . . . . 89
6.7 Conclusion and forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Part 2: The Practical Application of RFID and Auto ID
7 Process design and profitability . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
7.1 The fear of bad investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
7.2 It all starts with visions and objectives . . . . . . . . . . . . . . . . . . . . . . 95
7.3 How does the company work? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
7.4 The business case for RFID . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
7.4.1 The concept of the calculation of profitability . . . . . . . . . . . . . 98
7.4.2 Procedure for RFID projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
7.5 The RFID business case in practice . . . . . . . . . . . . . . . . . . . . . . . . 101
7.6 Technology can inspire – but it must “fit” . . . . . . . . . . . . . . . . . . 103
8 Introduction to the practical application of RFID . . . . . . . . . . 104
8.1 Feasibility test / Field test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
8.1.1 Objectives of a feasibility test/field test . . . . . . . . . . . . . . . . . . 105
8.1.2 Performing the tests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
8.1.3 Results of the feasibility/field test . . . . . . . . . . . . . . . . . . . . . . 107
8.2 Solution design and pilot operation . . . . . . . . . . . . . . . . . . . . . . . 108
8.2.1 Objectives of pilot operation . . . . . . . . . . . . . . . . . . . . . . . . . . 109
8.2.2 Results of pilot operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
8.3 Roll-out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Part 3: Current Applications – from the Factory
to the Hospital
9 Manufacturing control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
9.1 The dilemma of modern competition . . . . . . . . . . . . . . . . . . . . . . 114
9.2 The production of individualized serial products . . . . . . . . . . . . 117
9.3 Autonomous production systems with Auto ID . . . . . . . . . . . . . . 118
9.4 Decentralizing production data with RFID . . . . . . . . . . . . . . . . . . 121
9.5 Technical requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
9.6 Is RFID worthwhile in Production? . . . . . . . . . . . . . . . . . . . . . . . . 123
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Contents
10 Production logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
10.1 Logistics and corporate success . . . . . . . . . . . . . . . . . . . . . . . . . 126
10.2 Processes in production logistics . . . . . . . . . . . . . . . . . . . . . . . . 127
10.3 RFID in production logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
10.4 Application examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
10.4.1 Automatic order consolidation increases efficiency . . . . . . 130
10.4.2 RFID optimizes picking for assembly provision . . . . . . . . . 131
10.4.3 Transparent processes in reusable transport trusses . . . . . 131
10.4.4 Replenishment is ensured . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
10.4.5 The matching seat for the right car . . . . . . . . . . . . . . . . . . . 132
10.5 Summary and forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
11 Container and Asset Management . . . . . . . . . . . . . . . . . . . . . . 135
11.1 Requirements for Container Management . . . . . . . . . . . . . . . . 135
11.1.1 Motivation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
11.1.2 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
11.1.3 Standardizing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
11.1.4 Technical Specifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
11.1.5 Data structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
11.1.6 Additional peripheral processes . . . . . . . . . . . . . . . . . . . . . . 141
11.2 Economic viability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
11.3 Container and Asset Management in Practice . . . . . . . . . . . . . . 142
11.4 Business models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
11.4.1 Rental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
11.4.2 Sale and repurchase model . . . . . . . . . . . . . . . . . . . . . . . . . . 146
11.5 Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
12 Tracking and Tracing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
12.1 Application areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
12.1.1 Discrete manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
12.1.2 Process industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
12.1.3 Tracking and Tracing in logistics . . . . . . . . . . . . . . . . . . . . . 152
12.2 Drivers for Tracking and Tracing . . . . . . . . . . . . . . . . . . . . . . . . 153
12.2.1 Corporate advantages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
12.2.2 Legal regulations and standards . . . . . . . . . . . . . . . . . . . . . . 153
12.2.3 Consumer protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
12.2.4 Transparency for end users . . . . . . . . . . . . . . . . . . . . . . . . . . 154
12.3 Advantages of Tracking and Tracing . . . . . . . . . . . . . . . . . . . . . 154
12.3.1 Reactive Quality management . . . . . . . . . . . . . . . . . . . . . . . . 155
12.3.2 Proactive Quality Assurance . . . . . . . . . . . . . . . . . . . . . . . . . 155
12.4 Tracking and Tracing in practice . . . . . . . . . . . . . . . . . . . . . . . . . 155
12.5 Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
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13 Optimization of Supply Networks . . . . . . . . . . . . . . . . . . . . . . . 158
13.1 Increasing variety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
13.2 Change of the demands on business processes . . . . . . . . . . . . . 159
13.3 New business processes require new technologies . . . . . . . . . . 161
13.4 Advantages of RFID employment across the board . . . . . . . . . . 162
13.5 Further development options . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
14 Vehicle logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
14.1 Special requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
14.2 Technical basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
14.3 Application scenarios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
14.3.1 Utilization at automobile groups . . . . . . . . . . . . . . . . . . . . . . 170
14.3.2 Fleet management for public local transport . . . . . . . . . . . . 172
14.3.3 Dock and yard management . . . . . . . . . . . . . . . . . . . . . . . . . . 174
15 RFID at the airport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
15.1 Processes in airport logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
15.2 Areas of use for RFID in airport logistics . . . . . . . . . . . . . . . . . . 180
15.2.1 Process optimization on the airside and landside . . . . . . . . 180
15.2.2 RFID on container transport container transport systems . 181
15.2.3 RFID BagTag . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182
15.2.4 RFID-supported servicing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
15.2.5 Improvement in the catering area . . . . . . . . . . . . . . . . . . . . . 184
15.2.6 RFID in Cargo Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
15.2.7 Advantages due to RFID . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186
15.3 Perspectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186
16 Postal automation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
16.1 Auto ID in postal logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
16.2 RFID – the innovative Auto ID technology . . . . . . . . . . . . . . . . . 191
16.2.1 RFID-based application systems . . . . . . . . . . . . . . . . . . . . . . . 193
16.3 Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
16.3.1 Printable transponders with polymer technology . . . . . . . . 196
16.3.2 RFID transponders with visual, readable information . . . . 196
16.3.3 “Internet of things” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
16.3.4 RFID in future postal logistics . . . . . . . . . . . . . . . . . . . . . . . . 197
17 RFID in hospitals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
17.1 Potential of RFID in the health sector . . . . . . . . . . . . . . . . . . . . . 198
17.2 Reference projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199
17.2.1 Jacobi Medical Center and Klinikum Saarbruecken . . . . . . . 199
17.2.2 MedicAlert . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
17.2.3 “Klinikum rechts der Isar” . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
11

Contents
17.3 The economical value of RFID . . . . . . . . . . . . . . . . . . . . . . . . . . . 204
17.4 RFID in the future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204
17.5 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
Part 4: How to proceed?
18 RFID – printed on a roll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210
18.1 Protection of trade marks with printed electronics and RFID . 211
18.1.1 Trade mark protection for flawless mixtures . . . . . . . . . . . . 211
18.1.2 Dine without disgust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212
18.1.3 Identifiability creates clarity in the supply chain . . . . . . . . 212
18.2 Technological basics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
18.3 Possible solutions using printed RFID . . . . . . . . . . . . . . . . . . . . 215
19 RFID and sensors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
19.1 Motivation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
19.2 Technical basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
19.2.1 Schematic structure of RFID sensors . . . . . . . . . . . . . . . . . . 218
19.2.2 Decentralized sensor data storage . . . . . . . . . . . . . . . . . . . . 219
19.2.3 Systems available . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
19.2.4 Central sensor data storage . . . . . . . . . . . . . . . . . . . . . . . . . . 222
19.3 Initial applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223
19.3.1 Temperature monitoring for blood preserves . . . . . . . . . . . 223
19.3.2 Quality assurance for worldwide container transports . . . 224
19.4 Possible future applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
19.4.1 Temperature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
19.4.2 Temperature and relative air humidity . . . . . . . . . . . . . . . . 225
19.4.3 Acceleration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225
20 RFID security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
20.1 Data protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
20.1.1 Personal profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228
20.1.2 External attacks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228
20.2 Information security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230
20.2.1 Protection of saved data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230
20.2.2 Protection of data transmission . . . . . . . . . . . . . . . . . . . . . . . 230
20.3 Classic protection measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
20.3.1 Symmetrical encryption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
20.3.2 Problems in the use of symmetrical encryption . . . . . . . . . 232
20.4 Protection against complex threats . . . . . . . . . . . . . . . . . . . . . . 233
20.4.1 Creation of RFID clones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233
20.4.2 Protection measures by means of certificate-based
solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234
12

Contents
20.4.3 Asymmetric cryptography and PKI . . . . . . . . . . . . . . . . . . . . 235
20.4.4 RFID and PKI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
20.5 Security in RFID standardization . . . . . . . . . . . . . . . . . . . . . . . . . 236
21 Epilogue: En route to the “internet of things” . . . . . . . . . . . . 238
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
Editor and authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252
13

1 Introduction
Holger Schoenherr
The effort put forth to clearly and unambiguously describe objects
and persons in our vicinity is as old as humankind. Names are a central
element of all cultures and languages and are the root of our personal
identity. Names create a basis for the targeted exchange of information:
they form an access index for a specific quantity of information
about an individual or item. Names can, therefore, be defined
as information that is allocated to a person, an item, an organizational
unit, or a term in turn enabling its/their identification and individualization.
The machine readability of the name and its symbolization play a central
role in the automation of business processes. Therefore, innumerable
items bear machine-readable individual descriptions such as
plain text, barcodes, or electronically stored information: goods on a
supermarket shelf, post consignments, machine parts, workpieces,
transport containers, or ID card documents. Automatic identification
includes the assignment, allocation, transmission, and processing of
these descriptions. The results are then available for informational
purposes, further analyses, statistics, control tasks, and for decisionmaking.
It is essential that the processes and conditions from the real
world are directly depicted in the world of information systems (IT).
This results in enormous advantages for the entire value-added chain
from production via logistics to the consumer.
Today, optical codes are the most common with an estimated share of
75 % of the total occurrence of identification systems. Symbols are
captured by scanners that beam the barcode and measure the light
reflected. The information included is decoded and processed by IT
systems. In addition to the reflection principle, there are also scanners
that function similarly to a digital camera. A world without optical
codes is hardly conceivable any more. In the meantime, there are
some 50 common specifications that are structured in a one-dimensional
or multidimensional way, depending on their application, in
which they require differing amounts of space and vary in their stor-
14

1 Introduction
age capacity. Billions of objects are marked in this manner; prominent
examples include the barcodes on the articles in supermarkets.
However, 2D and Data Matrix Codes have been established in industrial
manufacturing processes. The reasons for this are the high storage
density, robustness, and attachment options on a multitude of
surfaces. A detailed explanation of the current state of the technology
is covered in Chapter 3.
In addition to optical systems, Radio Frequency Identification (RFID)
also plays a decisive role. The Scottish physicist James Clerk Maxwell
(1831-1879) is recognized as the most important pioneer of this radio
technology. When he postulated “Maxwell’s equations”, named after
him, he did not suspect the speed at which radio technology would
expand during the subsequent centuries (Fig. 1.1). In addition to other
excellent scientists such as Heinrich Rudolf Hertz and Guglielmo
Marchese Marconi, Maxwell was largely responsible for providing the
basic contribution to the description of the entity, spread, and transmission
of electromagnetic waves. The phenomenon of transmitting
signals through the “airwaves” enabled humankind to push forward
to new communication dimensions: the radio age had commenced.
However, also in view of the huge steps forward, the idea of tiny, radio-emitting
devices on items was dismissed as utopia up until well
into the 20 th century.
Since 2000, RFID has gained a high level of recognition, although this
technology has already established and proven itself for several years
in industry and company logistics. This has to do with the storing of
information directly on physical objects using mobile data carriers.
The data can then be read and written wirelessly.
Fig. 1.1 With the equations named after him, James Clerk Maxwell also laid
the foundations for RFID (Photo: Pixtal)
15

1 Introduction
1.1 Historical Development
What use does wireless communication with items have? One response
was born during the Second World War. In unclear air-to-air
encounters, one’s own aircraft and the enemy’s aircraft were frequently
confused, which resulted in fatal consequences. That is why
scientists from the US Navy research laboratory (NRL) as well as British
experts started working on a system to distinguish allies and enemies
in 1937. When the radar signal from the ground station strikes
a device that is located onboard it responds with a code and transmits
it to the interrogator ground station’s radar frequency. The analysis
of this information enabled the identification of all aircraft, in turn
distinguishing between allies and enemies. Because the device transmits
and responds, it was called the transponder, which is a description
that has been maintained up to present times for the RFID data
carriers. The further-developed forms of the transponder are now onboard
all aircraft today and are essential for air traffic control as well
as the effective management of flight progress (Fig. 1.2).
With this view, we have approached the most important aspects of
RFID. Communication is wireless, in which there is no need for a visual
connection.
No manual operation is required, in which the information that was
previously stored is transmitted. Processes that to date were complex
and not transparent have become transparent as a result. On the other
hand, this provides the opportunity for a targeted exertion of influence.
Admittedly, the first transponders were as large as a suitcase, correspondingly
heavy and were high energy consumers. Developments in
the field of transmission technology, integrated circuits, and semiconductor
technology soon made them significantly smaller and at
the same time this led to higher performance transponders. At the
Fig. 1.2 The basic principle of RFID is still used for the identification of aircraft
today. This simple transponder can transmit a four-digit code as well as
the aircraft’s altitude (Photo: Garmin Ltd.)
16

1.1 Historical Development
Fig. 1.3 We can no longer envisage today’s commerce without barcodes – as
shown here at a modern scanner checkout counter. (Photo: Wincor Nixdorf)
outset of the 1970s, article surveillance systems were introduced in
sales rooms. To begin with, single-bit transponders were used, in
which, technically speaking, they were simple LC elements that only
displayed their presence in the read field. If a customer “forgot” to
pay for an article, a high-pitched beep reminds them when passing
through the scanner gate at the exit. Such devices are installed in virtually
all department stores nowadays.
At about the same time, barcodes were implemented as an optical
identification system for commerce. In 1974, Wrigley’s chewing gum
was the first product marked with a barcode that was machinescanned
in supermarkets. The triumphal march of the barcode and
standards connected with it such as the European Article Number
(EAN) were inexorable (Fig. 1.3). Therefore, the barcode only needed
a little less time for wide scale market penetration than RFID, because
the first barcode patent was already applied in the USA in 1949.
At the beginning of the 1980s, applications for marking livestock arrived
and consequently the use of RFID for individualization spread.
As opposed to article surveillance systems, a comparatively large
memory is required for these transponders, enabling the storage of
data such as an unambiguous number or the animal’s date of birth.
The USA and Norway developed RFID-based toll systems. RFID was
also introduced in production work for manufacturing controlling.
The first industrial RFID systems, such as Moby M from Siemens,
were still designed as active components from a device-related view-
17

1 Introduction
Fig. 1.4 Siemens has provided RFID to industry for 25 years: on the left-hand
side “Moby M” from 1983, and on the right-hand side the current Simatic
RF300 system.
point (Fig. 1.4), for which a battery provided the energy that was required
to operate the internal circuit elements of the transponders.
Despite this, the range was only a few centimeters.
With the foundation of the AutoID Lab at the Massachusetts Institute
of Technology (MIT), a new chapter in the history of RFID technology
was opened. RFID literally became the synonym for automatic identification
and for the automatic transparency of logistical processes.
The terms “internet of things” and “RFID” have been inseparably connected
since then. The target: a global solution for the comprehensive
tracking of articles based on a biunique number. All articles according
to this approach are equipped, by the manufacturer, with an RFID
transponder, in turn enabling automatic recording all along the supply
chain. The data gained reflects the status of the full supply chain
at all times and thereby enabling its comprehensive optimization.
This concept is based on very low cost and at the same time high-performance
disposable transponders, the so-called Smart labels with
sufficient memory and a range of several meters.
Furthermore, a global data standard – the Electronic Product Code
(EPC) – and a global IT system for the provision of individual product
information are defined.
1.2 Proven in several applications
Auto ID and RFID are effective as backbone technologies for the future
global economy. There are various reasons that make wide scale introduction
a necessity. Therefore, the worldwide export of articles
18

1.2 Proven in several applications
grew four times faster than production in 2005, when measured related
to the gross national income (GNI). Added value cycles spread
out worldwide, in turn adapting to the changing market requirements
highly dynamically. Competition among companies is global;
static supplier relationships give way to dynamic sourcing, which is
controlled via the Internet. Therefore, for example, in the automotive
industry the manufacturers’ own real net output ratio will drop from
35 % in 2006 to 25 % in 2015. However, the structure of added value
changes. The deliveries to date predominantly consisted of similar
type components. However the trend now is towards knowledgebased
supplies. In addition to automotive engineering, the aircraft industry
also exemplifies this. Here, complete segments or assemblies
are delivered prefabricated. Agility, fast reaction times, and the ability
to react flexibly to the end manufacturer’s changes form the basic
requirements of all suppliers. Finally, the customers’ requirements
regarding the products’ increase – similar articles that are “mass produced”
become less and less accepted, especially for high-price technological
articles. This development towards “mass customization”
requires vast consistency of the processes – from design to production.
The logistics chain also plays a decisive role. Deliveries must arrive
at the customer’s location as was ordered and be coordinated
with precise timing in the correct order – only in this way is it possible
to realize the just in time and just in sequence concepts. The systems
for automatic identification are also essential here.
Wireless automatic identification is already “state-of-the-art” for production
technology in many cases. Automatic control of the production
processes based on individual object data is the focus for these
applications. For example, spray robots in automotive engineering
are controlled dependent on the car body shape (e.g. cut-out for a
sunroof) (Fig. 1.5). In brief: the products bear all the information for
their processing and assembly. This enables the implementation of
fully new, decentral manufacturing controlling concepts. The automatic
recommencement of manufacturing using the status information
that is directly stored on the workpiece is a further advantage.
The data carriers that are used are robust and move in closed loops
with the workpieces or workpiece carriers. At the end of a run, the
data are saved, the transponder is deleted, and then sent into the next
circulation. If the number of runs increases, the cost share of a transponder
per run is naturally reduced. Therefore, such applications often
pay off within less than two years.
Foodstuffs, drugs, and technical components are three completely
different application areas. For example, the full integrity of the pro-
19

1 Introduction
Fig. 1.5 Where vehicles are painted in the automobile industry, RFID has
shown to be “state-of-the-art” for several years now. (Photo: Duerr AG)
duct is essential within the pharmaceuticals supply chain. It must be
guaranteed that the correct and, above all, original drug is provided
to the patient. The term “E-Pedigree” describes the “electronic family
tree” of such products. Moreover, gapless proof of the origin and stations
of the supply chain will become compulsory in the future. This
is only possible if automatic identification technology is used. The 2D
code is favored at item level and RFID at the box and pallet levels.
However, current experiments in the pharmaceuticals industry are
also directed at testing the performance capability of RFID at item level.
One reason for this is that RFID could also be used as an electronic
authentication certificate.
Furthermore, the administration of assets is one of the most promising
areas for the application of RFID. Here, above all, it is a question
of the stock optimization of the transporter wagons, circulatory containers,
and tools required. On the one hand, sufficient quantities of
these assets must be available in order to be able to produce and supply.
On the other hand, assets are fixed capital with no direct yield, in
turn making it desirable to strive for the lowest possible stock.
Thanks to RFID, the life cycle can be reconstructed without a gap and
for assets that leave the area of accessibility of a company with a clear
statement that can be made as to where an asset is located. In addition,
thanks to the RFID transponders on various objects, it is also
possible to add further processes to RFID-supported asset management,
and thereby further increasing the profitability of this respective
solution.
20

1.3 Innovation as a driver
Moreover, numerous specialized RFID and Auto ID applications can be
found in individual industries. The identification of patients in the
healthcare sector, management of supply logistics for automobile
manufacturers, or controlling luggage transport platforms at airports
are just some selected examples.
1.3 Innovation as a driver
The history of automatic identification is marked by constant innovation.
All new developments enable new applications. However, at the
same time restrictions such as the read rate remain. Things that we
could not possibly dream of 10 years ago are a reality today. Additionally,
today’s problems are resolved tomorrow, by using elegant solutions.
Technologists and scientists work on varied topics of which
three should be emphasized here.
One of the most important objections to the mass use of RFID transponders
today is the data carrier costs. One possible approach to the
solution to this is the use of printed electronic circuits. The materials
that are used are polymers with semiconductor properties. The advantage:
the integrated circuit of an RFID data carrier can be produced
in just one single process step. That saves on costs and
smoothes the way for transponders in the 1 cent range.
The enrichment of RFID with additional functions results in a new dimension
of applications. Today, sensors for recording ambient parameters,
such as temperature, pressure, and acceleration are already
combined with RFID transponders. These are the first three
steps to autonomous, intelligent systems that interact with their environment.
We envisage transponders in the future that make decisions
independently that are based on ambient data.
Within the course of decentralization and mobilization of information,
fully new aspects of data security become increasingly important.
If, for example, RFID transponders are used as an authentication
proof for drugs, it must be technically impossible to copy the microchip
included. The use of asymmetrical cryptography in passive lowcost
transponders is beneficial here.
However, the inventiveness of engineers and scientists is not merely
restricted to the radio protocols or the chip design. On the contrary,
the promising linkage of a long range and acceptable storage capacity
along with the lowest transponder prices also make fully new archi-
21

1 Introduction
tecture in production and logistics systems conceivable. The key word
“internet of things” makes the exact direction clear: towards distributed,
autonomous systems that do without a central control component,
which is similar to the Internet. The mobility of the data
achieved by Auto ID and RFID forms the basis of a new development
step in the design of those complex systems that are increasingly affecting
our lives.
22

Part 1
Technical Fundamentals

2 RFID technology
Dieter Horst
The abbreviation RFID has also been current outside professional circles
for a few years. The massive spread of these systems in trade and
logistics and not least the hype triggered by UHF-RFID helped the
term on its way to the IT press and even to daily newspapers. But what
does this term actually mean?
2.1 What is an RFID system?
RFID stands for Radio Frequency Identification – unfortunately, this is
not very meaningful. Therefore, I propose the following definition:
24
An RFID system comprises of at least one reading device and one
mobile data storage unit that can be read contactlessly by a reading
device using a high frequency transfer procedure.
Reader device
Transmitter
Receiver
Data
Energy
Data
Fig. 2.1 Illustration of an RFID system
Transponder

2.2 The components of an RFID system
Even if the term Reader purely indicates reading alone, reading devices
can generally also write in practice. All RFID systems have a common
factor: the data are transferred using high frequencies, that is to
say, by using electromagnetic waves. In several cases, even the energy
required for reading or writing the data storage unit is also transferred
and thereby reduces the manufacturing expense for the transponder
to a minimum.
Various terms are used in connection with the processing of transponders,
which provide information about the application:
• Identification: Here we mean the recognition of a transponder,
the simplest variant of an RFID system. Often, read-only systems
for which the transponder manufacturer allocates a series number
(ID) that is linked by the user to the object to be identified.
• Mobile data storage unit: This form of identification can frequently
be found among industrial applications. The principle is
that all the important data are saved and updated as required in the
transponder and, therefore, on the object to be identified. For this
purpose, an RFID system is required that on the one hand enables
writing and reading, and on the other hand provides a larger data
volume. The user memories here are all in the region of several 10
Kbytes, which is more than sufficient for many practical applications.
• Locating: A special type of the RFID system is used to locate objects
(Real Time Location System, RTLS). These systems’ decisive property
is the provision of location information for an object (in addition
to its identification). However, the determination of the location
information is technically rather expensive.
2.2 The components of an RFID system
2.2.1 Reading device
There are several synonymous terms for the RFID reading device:
Read-Write device, Scanner, Reader, and Interrogator. The terms
scanner and reader should not be taken too literally as the devices can
normally also write.
The reading device has the task of accepting commands from the
higher-ranking controller and executing them independently. Fig.
2.2 shows the most important reader components.
25

2 RFID technology
Interfaces
Fig. 2.2 Block diagram of a reading device
Digital part
Generally, a microcontroller takes over the control of the reading device.
The processing power can differ widely here, varying from an 8bit
microcontroller via digital signal processors (DSPs) or programmable
logic (FPGA) up to a 32-Bit processor with a real-time operating
system. Here it becomes apparent that reading devices frequently
deal with far more complex tasks than merely reading a transponder.
Finally, the application decides what performance capability is required.
Analog part
Considerable parts of the robustness and performance capability of
an RFID reading device are determined by the analog circuitry. The
response signals from transponders are nearly always very weak.
Therefore, a high-performing receiver that can deal with both weak
signals and various interferences is the centerpiece of a good reader.
The transmission signal is also generated in the analog part. At the
same time, it is important to ensure that the transmitter provides a
signal that is as “clean” as possible, i.e. free of phase noise and spurious
emissions. This is important for the performance capability,
avoidance of disturbances, and adherence to legal stipulations. The
transmitter must also be thermally stable and robust: for example,
the removal of the antenna during operation must not cause damage
to the transmitter. The transmitter output can be up to 10 W.
Interfaces
The major task of RFID reading devices is communication. Therefore,
they often have several interfaces (Fig. 2.3):
26
RS-232
Ethernet
Dig. I/O
LED
Digital part Analog part
μC
FPGA
DSP
RAM
FLASH
Transmitter
Receiver

2.2 The components of an RFID system
• Serial interfaces (RS232, RS422) are the most common. They are
necessary to connect the device to a PC or a programmable logic
controller control (mostly via multifunctional communication
modules).
• The Ethernet interface is becoming increasingly common, whether
as the standard variant that is known from the world of IT or as a
robust industrial version with real-time capability. Especially in
logistics, the Ethernet is highly significant as it integrates particularly
easily into IT systems.
• Digital inputs are frequently used to trigger a read process, for
example, by using proximity switches, infrared sensors, and photoelectric
barriers. This can minimize the mutual disturbances as the
reader only transmits if a transponder is nearby. It is also, therefore,
possible to increase the maximum passage speed of the object
as the reading device can execute the read process without any
time delay.
• Digital outputs are important for RFID access control systems (activating
the opener) and logistics applications (traffic lights to indicate
a successful read process). A digital output should be robust,
able to cope with short circuits, and provide some output power, in
turn enabling the desired devices to be connected.
• LEDs can also be regarded as an optical interface. When commissioning
or troubleshooting, it is rather useful if certain conditions
such as “Transponder in the field” or “Communication error” are
displayed directly on the device.
Fig. 2.3 Interfaces on an RFID reading device
27

2 RFID technology
2.2.2 Antennas
All RFID readers have one antenna or more. They serve to emit the
transmission output in a suitable manner and to record the transponder
signal and supply it to the receiver. In some cases, separate antennas
are used for transmission and reception. However, normally just
one that fulfills both tasks is deemed sufficient.
The style and shape of the antennas are as varied as the areas of use
for RFID. The major factors are the desired application (e.g. required
reading distance, grouping ability), the required protective category
(e. g. resistance to dust, water, temperatures, shock/vibration), the
data carriers used, and their storage capacity as well as the RFID technology
and frequency used. Fig. 2.4 demonstrates the considerable
differences: in the background there is an antenna for 13.56 MHz,
which is used to identify up to 44 crates in a gate configuration. On
the other hand, the small handheld write and read device Simatic
RF310R with an internal antenna reads a data carrier that is only the
size of a button.
Normally, the antenna is connected to the reader via a 50 Ohm coaxial
cable. When the devices are installed and operated, always ensure
careful handling of the antenna cables, as bends or crushing will
change their impedance, causing excessive attenuation and can in the
end reduce the performance of the RFID system.
Fig. 2.4 Comparison of the HF systems Simatic RF310R
with Moby D ANT NF (in the background)
28

2.2.3 Transponders
2.2 The components of an RFID system
There are several terms that describe the RFID data storage unit: mobile
data storage unit (MDS), tag, label, Smart label, and radio label.
Its actual task is best described by using the made-up word transponder.
It consists of the English verbs “transmit” and “respond” and describes
the property of the RFID data storage unit, responding to inquiry
signals. Only very few systems differ from this principle and
transmit actively without requests. The simplest form of transponder
consists of a chip and an antenna. More complex forms use external
memory and further additional circuits, depending on the requirements.
Fig. 2.5 A selection of various transponders
Communication between the reading device and transponder takes
place via the so-called air interface, which determines exactly how
and with which commands the data exchange takes place. Air interfaces
are often standardized in order to make the products of various
suppliers interoperable (cf. Chapter 6). The great variety of transponder
models is shown in Fig. 2.5. The large, heat-resistant transponder
MDS U589 is illustrated on the top left-hand side. It weighs 600 grams
and can handle temperatures of up to 220° C (cyclic). In contrast to
this, the only 10 × 4.5 mm large “Pill” is illustrated at the front center,
a tool data carrier that can be installed flush in metal, e.g. for the
identification of milling heads in tool machines.
29

2 RFID technology
2.3 Classification of RFID systems
2.3.1 Passive systems
For passive RFID systems, the transponder does not have its own energy
source: energy is fed to most systems externally. Normally this
takes place via high-frequency transmission, in rare cases also via
light, sound, pressure, temperature, or other mechanisms. Special
models of passive systems require no energy at all, in which they are
simply based on physical effects.
While the development of a high-performance passive transponder
requires quite some effort, this principle provides a number of advantages:
• It is easy to produce the transponder (only a chip and an antenna
are required)
• They have a virtually unrestricted life cycle and are service-free
(no battery)
• They can be extremely miniaturized
• Very low costs are possible (to the order of < 0.10 euros)
Systems with inductive coupling in the LF/HF range
The oldest RFID systems are based on energy transfer via a high-frequency
magnetic field with inductive coupling, i.e. using the transformation
principle. Fig. 2.6 shows the principle: The transmitter in
the reading device drives current through the antenna coil, thereby
creating a high-frequency magnetic field. Alternating voltage is produced
in the transponder coil by induction and is available for operating
the transponder chip after rectification. Data is transferred to
the reader via load modulation. At the same time, a resistive load is
switched to the antenna coil in the transponder according to the modulation
of data. This results in a voltage drop at the reader’s transmission
coil – albeit minimal – can be detected and analyzed in the reader
electronics (receiver).
The frequencies that are usually used are 125 kHz (LF) or 13.56 MHz
(HF), as these bands are especially attractive combined with the high
permissible output power and they can be used worldwide. Read
ranges in excess of one meter can be accomplished. However, at the
same time large antenna coils are required (e.g. 60 × 80 cm), which
30

2.3 Classification of RFID systems
Resonant
Transmitter Antenna circuit Tag chip
~
Receiver
Fig. 2.6 Inductive coupling
Inductive coupling
definitely creates a problem for some applications. It is necessary to
resort to different technology such as UHF in this case.
Their easily predictable field behavior is a frequently underestimated
property of inductive systems. This is important if it comes down to
reading transponders in a defined range. As the reader’s magnetic
field drops very rapidly at increasing distances (with the third exponent),
on the one hand there is a really small transitional range
(where the transponder is still or no longer recorded), and above all
not overshooting. This makes the technology very interesting for industrial
applications if, for example, several readers are installed in
assembly lines within a restricted space. Mutual disturbances and
overshooting are virtually excluded, making the systems extremely
reliable.
Systems with electromagnetic coupling in the UHF range
Whereas the UHF range (300-3,000 MHz) used to be more or less
exclusively dominated by active or semi-active systems, passive RFID
transponders have also been on the market since around 2003. Philips
(now NXP Semiconductors) was one of the forerunners with the
UCODE family, which was standardized in ISO 18000-6 at a later date.
Further products from various manufacturers followed suit, enabling
the passive UHF system technology to spread fast. The introduction of
RFID in large business groups’ supply chains had a significant influence.
Logic
31

2 RFID technology
Fig. 2.7 Passive UHF RFID system
As opposed to the inductive systems where the magnetic field component
is primarily used, the passive UHF systems are characterized by
genuine electromagnetic coupling: both electrical and magnetic components
are emitted. In order to be able to achieve ranges of five
meters and more, a transmission output of 2 watts or more is required
(regionally restricted by legal regulations). Normally, a dipole
antenna is used in the transponder that couples in the wave and feeds
the signal to the chip where it is rectified and provides current (Fig.
2.7). The achievable energy is very low, making modern, low-power
circuit designs necessary in order to be able to use the principle at all.
The transponder’s response signal is transmitted to the reader via
modulated backscatter. At the same time, the chip varies the antenna’s
impedance in the modulation cycle and its reflection properties
as a result. Therefore, effective data transfer takes place by reflecting
the signal that is transmitted. The reader must transmit an unmodulated
signal (CW, continuous wave), while the transponder responds.
Systems with inductive coupling in the UHF range
The magnetic field component is also used in the UHF range by a new
technology. The term Near Field Communication (NFC) is often used,
indicating the use of the near field, which is similar to the inductive
systems in the LF range. Observe the danger of confusion with the
data transmission standard NFC, which is based on an RFID air interface
(ISO 14443) [1]. Several advantages are achieved by using inductive
coupling, such as non-sensitivity to water and a clearly limited
32
DSP
UHF reader device
~
Transmission signal
Receive signal
Antenna
Transponder
Antenna,
e.g. dipole,
length typ. λ/2
~ 15 cm
Chip

2.3 Classification of RFID systems
field, which are “paid for”, however, by an extremely low range (a few
decimeters).
Application is simple. The antennas from the reader and transponder
must be arranged in an optimized manner for the magnetic component.
Normally, small Loops are used. Fig. 2.8 shows a typical arrangement
form for a near-field transponder. You can clearly recognize
the loop as the antenna for the magnetic component, but also as
the so-called shortened dipole (meander-shaped structure) through
which the transponder can also be read over greater distances.
Fig. 2.8 Near-field-transponder (Photo: NXP Semiconductors)
The major use of the near-field transponders is for so-called item-level-tagging,
or in other words for equipping individual products with
RFID transponders (e.g. drugs packaging). The inductive technology
also enables detection of the transponders on difficult materials such
as metal (blister packaging). Separation during the read process is a
further advantage because overshooting rarely occurs. This is required,
for example, if used in cashier systems.
Single-bit transponder
Probably the oldest form of passive tagging can be found in anti-theft
systems. It consists of a simple parallel resonant circuit and is read by
the reading device as it varies the transmission signal over a small
range, determining the voltage change for the antenna at the tag’s
resonance frequency: a simple, but effective process. The tag’s information
content is limited, but it suffices for its respective purpose.
33

2 RFID technology
2.3.2 Semi-active systems
For semi-active RFID systems, the transponders require a battery as a
power supply. However, they do not use it for active transmission.
These systems are interesting if the higher requirements of the application
cannot be met by passive systems, e.g. a higher range or additional
functions that require more energy than can be provided by the
field. Unfortunately, this coin has another side: semi-active systems
are always more expensive than passive systems, have a restricted
life-cycle, and also have a less favorable environmental balance because
the battery normally must be disposed of as hazardous waste.
Furthermore, the battery often cannot be replaced.
Simple systems
Systems using the technology of the semi-active transponder were already
available several years ago. The simplest of these has a very
simple logic circuit that has a very low power consumption and is constantly
supplied with energy by the battery. Its only purpose is the
uninterrupted modulation of the antenna with the bit pattern to be
emitted. If the transponder reaches a high-frequency query signal
(generally in the UHF range), this pattern is reflected by backscatter
and analyzed in the reading device. As this process requires hardly
any power, even small batteries can be used for several years. Depending
on the complexity, this can bridge a distance of several meters.
However, this advantage has diminished with the advent of passive
UHF systems, in which such systems are becoming less significant.
Complex systems
The use of an additional energy source on the transponder makes
more sense if a considerably broader scope of system performance is
required. For example, this can be necessary in order to provide large
storage capacity for achieving high data transfer rates with particularly
robust transmission or for combining RFID with additional sensors
for measuring environmental factors, such as temperature, pressure,
and acceleration (cf. Chapter 19).
Moby U from Siemens is a particularly efficient semi-active system. It
was especially developed for the industrial market, in particular automobile
production and has performance characteristics that cannot
be realized with a passive system. Its active range limiter is a unique
feature. Virtually all UHF RFID systems (both active and passive) over-
34

2.4 Frequency bands and their properties
shoot, which can lead to considerable problems in industrial and logistical
processes. Moby U enables the user to parameterize the desired
reading range in steps of 0.5 m. Transponders that are further
away are ignored. Otherwise, only locating systems (RTLS) for which
the analysis of the localization data that can be used to eliminate
overshooting can offer similar advantages.
2.3.3 Active systems
Only very special requirements necessitate the use of genuine active
systems. If even more performance is required than for semi-active
systems, active transmission must take place. At the same time, active
transponders are fully powered by one battery. They generate their
own transmission signal, which is actively emitted to the reading device.
The known users of this kind of RFID systems include locating systems
(RTLS) whose major task is both the identification and determination
of the location of an object.
2.4 Frequency bands and their properties
The term RFID already implies one of its most important characteristics,
namely the use of radio frequency to fulfill the identification
task. The spectrum of the electromagnetic waves, however, is very
wide; the frequencies that are used for communication can range
from a few kHz to approx. 100 GHz. As these frequencies have differing
properties and, therefore, influence the functionality of RFID systems
decisively, “the” RFID system with “that” frequency does not exist;
instead, several realizations have become established. As the use
of radio transmitters – which RFID systems are counted as – are governed
by mandatory regulations from national authorities, you must
check whether the frequency is approved in the country of use and a
valid permit is available before commissioning an RFID device. The
CE-mark is important in Europe, the FCC ID in the USA (both are normally
printed on the device). If you have any doubts, contact the manufacturer
before switching the device on. If the regulations are violated,
you may interfere with vital frequency bands (such as rescue services).
The most important frequency bands for RFID and its properties are
briefly listed below.
35

2 RFID technology
Low frequency: 9-148.5 kHz
This range is intended for the so-called inductive applications; the interesting
range for inductive RFID systems is around 119-135 kHz as
very high field strengths are permissible there. In particular, systems
for the identification of animals can be found in this range. However,
automobile immobilizer systems also utilize this frequency. The high
ranges in excess of one meter that can be realized in this area are positive.
However, its proneness to disturbances near electrical engines,
switching power supplies, CRT displays, and other sources of interference
which cause the emission of a relatively low-frequency disturbance
spectrum.
High-frequency: 13.56 MHz
This spectrum, which is only 14 kHz wide, is highly popular among
inductive RFID systems because the high maximum field strength
makes large ranges possible. However, the simple antenna design is
also advantageous (only a few turns) on the reader and transponder
sides. Only very heavy interferences normally result in disturbances
at 13.56 MHz. The only downfall is the size of the antennas. Fig. 2.4
makes it clear of the size that is necessary in order to achieve larger
ranges.
Ultra-high frequency: 865-868 MHz
This spectrum, which has been available in Europe for a few years,
has reached high significance in the meantime. This is due to the attractive
passive UHF systems that are operated in the frequency band.
Especially the high permissible output power of 2 W ERP in Europe or
4 W EIRP in the USA makes options possible that were only open to the
semi-active systems (at corresponding high costs) before the frequency
spectrum was released.
The fact that this band cannot be used worldwide is a disadvantage to
a certain extent. Therefore, the US equivalent is 902-928 MHz and the
Japanese spectrum is established at 952-954 MHz. This increases
technical expenditure as well as the costs for certification and approvals
for the reading devices. On the other hand, transponders can be
designed using broadband, in turn enabling their international use.
36

Microwaves: 2400-2483.5 MHz
2.4 Frequency bands and their properties
Although this classical “microwave” band has many users (including
WLAN), it is also attractive for RFID. The high bandwidth is the most
important advantage, as it enables radio technology that cannot be
realized in other spectrums. Therefore, the signals fluctuating due to
interference (fading) can be avoided. Very high bit rates and the measurement
of propagation time between transmission and return (e.g.
for RTLS) are also possible. The low output power that is deemed permissible
is disadvantageous and normally results in the transponders
having to be equipped with batteries.
References
[1] Jari-Pascal Curty et.al.: Design and Optimization of Passive UHF RFID Systems.
Springer 2007
37

3 Optical codes
Kirsten Drews
For some 40 years, there has been a constantly increasing requirement
to label items in industry and trade with automatically readable
markings and, therefore, to enable identification during the course of
the entire production process and the supply chain up to the end customer.
3.1 Success and limits of barcodes
The greatest success so far was the linear codes (also: 1D codes, Barcodes),
for example, the EAN codes on sales packaging. However, barcodes
display some very distinct restrictions, maintaining the need
for further developed technology:
• Analog data encoding (measurement of the bar widths and
spacing)
• High space requirements, above all for the width for larger data
quantities
• Use of labels that are necessary or a restriction on printing on
paper or plastic
• Poor data security
• Reading that is only possible from one direction or omni-directional
scanning that is only possible with expensive additional
measures.
In addition to the developments in the field of radio technology
(RFID), optical encoding technologies were also researched further.
Piled linear codes, such as PDF417 or Codablock, or the even more
effective two-dimensional digital codes (also the so-called Matrix
codes, 2D codes), can achieve the following objectives:
• Reduction of required space
• Simplification of omni-directional reading
38

3.2 Standards regarding the 2D code
• Tolerance regarding low contrasts due to digital encoding
(binary code)
• Increasing the codable data volume and
• Increasing the read security by employing high-performance
error correction processes.
Moreover, processes were found to apply matrix codes directly to the
workpiece by using various different effective marking processes.
This hindered loss of the codes, ensuring high robustness against external
influences during the product’s life cycle. This saves also the
cost for the label application. The term Direct Part Marking (DPM) was
established for this direct marking of the workpieces and merchandise.
3.2 Standards regarding the 2D code
According to a study by the Fraunhofer-Institut [1] covering nearly
100 companies in Germany, standards have a particularly high standing
for users of Auto ID technology as they ensure the free availability
of a technology on the market at reasonable prices, comparability of
components, and their compatibility above and beyond company
boundaries and continents.
NASA proved to be a driver of the technology for several years.
Research took place in collaboration with manufacturers of marking
and coding processes in the Symbology Research Center in Huntsville,
Alabama, which was jointly founded by NASA and CiMatrix Corp.,
Massachusetts in 1997 within the scope of a “Space Act Agreement”.
The focus was to find a highly compact and secure marking solution
that does not use labels. Two NASA documents were the result of these
activities, the “Standard for applying Data Matrix Identification Symbols
on Aerospace Parts” (NASA-STD-6002) and the manual “Application
of Data Matrix Identification Symbols to Aerospace Parts using
Direct Part Marking Methods/Techniques” (NASA-HDBK-6003).
3.2.1 Technology standards
However, the essential organization for standardization of 2D codes
just as for RFID technology is the international specialists’ association
AIM Global (Association for Automatic Identification and Mobility). In
addition to several known barcodes, in the meantime nearly ten dif-
39

3 Optical codes
Fig. 3.1 Examples of 2D codes: QR Code (a), Data Matrix ECC200 (b), and
Aztec Code (c)
ferent 2D codes have been standardized by AIM. These include the
code types Aztec, QR code, Maxi code, Dot code A, Code one, and the
Data Matrix Code in the ECC000-140 and ECC200 variants (Fig. 3.1).
You can also download code specifications for several stacked barcodes
and combined code types from the AIM website (www.aimglobal.org).
Data Matrix ECC200 has been implemented the most so far.
3.2.2 Application standards
In addition to the technical standards, several applications are also
based on the Data Matrix Code.
On the one hand, subsequent to NASA’s activities, the US Department
of Defense, DoD, has decided to prescribe a binding requirement on
its suppliers that all expensive, serialized, inventoried expendable
components that are decisive for the use or placing of an order are
identified with coded data content according to the prescribed regulations
based on the Data Matrix Code ECC200. This specification is
known as the UID (Unique Identification) MIL-STD-130 and is being
introduced worldwide following several additions to the specification.
Also the Data Matrix Code ECC200 contains a unique identifier
worldwide.
On the other hand, Data Matrix Code was approved by GS1 as an additional
option for use as an EAN code. The so-called EAN Data Matrix is
viewed as especially appropriate for use on small items, for example
in the jewelry or cosmetics sectors.
In the healthcare sector, the EHIBC (European Health Industry Business
Communication Council) and GS1 force the use of different processes
when standardizing the coding standards, each of which pro-
40
a) b) c)

3.3 Data Matrix Code features
vides alternatives to using barcodes, matrix codes, and RFID. At the
end of 2007, GS1 reported that the European medical technology association
EUCOMED decided to adopt the GS1 coding – a combination
of EAN 128 and the EAN Data Matrix.
3.3 Data Matrix Code features
Matrix codes consist of similar-sized elements or cells and a search
pattern. The data are coded in the binary depiction as dark or bright
cells as opposed to barcodes where the spacing between as well as the
width of the lines is decisive for their respective meaning. Matrix
codes can also still be interpreted in case of slight contrast differences.
The different matrix codes vary in several of their parameters, e.g.
fixed or variable size, error correction options, the type of search pattern,
the cell form or codable data quantity, and in the symbol sets
that are supported.
3.3.1 Data Matrix Code structure
The objective of developing the Data Matrix code was to create a dynamically
changeable code in terms of its size (dependent on the
space available), the resolution of the marking process and the reading
conditions, and with reference to a square or right-angled format.
Furthermore, the code should enable the storage of high data quantities
within the smallest possible space.
This was achieved by designing the search pattern for finding the
code fast as well as simultaneously functioning as an indicator for the
number of cells, columns, and the size of the matrix elements. This
made the code size scaleable as desired (resolution-dependent). At
the same time, you can select either a square or right-angled form of
depiction. For better structuring and readability, the search patterns
are re-inserted above a certain data quantity, forming a basic pattern
by combining 4 × 4 or 16 × 16 Data Matrix Codes.
The L-shaped finder border (Fig. 3.2) serves to detect the location of
the code quickly in the image after image recording by using a search
algorithm. At the same time, the code can be at any position in the
image. Following this, the frequency pattern is determined by using
the opposite pattern of the alternating border regarding what num-
41

3 Optical codes
Finder border,
solid border
Fig. 3.2 Data Matrix code structure
ber of rows and columns are to be expected in the data area, and also
determining, therefore, the size of the cells. By default, the code is
depicted in black on a white background. However, an inverse depiction
with white on a black background is also permissible.
The standard requires a quiet zone of one cell’s width minimum
around the code in order to cleanly separate the code and background.
The number of columns and lines ranges from a 10 × 10 matrix
to a maximum of 144 × 144 columns and lines. The largest rectangular
version has 16 lines and 48 columns. The majority of Data Matrix
codes that are used is in the region of up to 48 × 48 cells.
One of the Data Matrix’ special strengths is that the code can be applied
to a part directly using various marking processes, that is to say,
without a label. However, the standard’s requirements here can very
often not be adhered to without incurring very high costs. Therefore,
the actual directly marked codes seldom correspond 100 % to the
standard. Depending on the form of the background, for example
concave or convex, distortions occur. The marking systems are not
set ideally or the backgrounds are not prepared accordingly, in turn
resulting in cells that are too large or small or create scratches and
changes to the background color. Moreover, it is a special challenge to
read 2D codes with an image processing system that must tolerate
additional influences, e.g. material reflections, trapezoid-shaped distortions
due to sloping angles of viewing or shadows that are cast by
uneven surfaces.
3.3.2 Codable data with Data Matrix ECC200
Data Matrix Codes support a wide range of coding schemes that also
determine the codable data quantity.
The coding schemes available are ASCII, Text, C40, ANSI X12, EDIFACT,
and Base 256. The use of special code words enables switching
between the symbol sets or to special coding, such as the EAN Data
42
Data area
Alternating border

3.3 Data Matrix Code features
Matrix. As for the code word 232, the data structure of the Data Matrix
code would correspond to the EAN 128 Standard.
Table 3.1 Quantity structure of the codable characters for Data Matrix ECC200
Number:
Lines × Columns
Figures 0-9 Alphanumerical
(0-9, a-z, spaces)
The QR and Aztec 2D codes also enable the coding of a similar data
quantity and are, therefore, equally suitable for data management on
an object as in data matrix. This distinguishes these codes clearly
from the barcodes that have the primary task of coding an identifier
and the recourse to a centrally held database that is associated with it.
2D codes, therefore, push forward into the area that is typically an
RFID technology strength, namely remote carrying of data on the object.
However, a considerable advantage of the RFID technology is that
the data carriers can be re-written several times over.
3.3.3 Error correction and security aspects
8 bit ASCII
(byte 0-255)
10 × 10 6 3 1
48 × 48 348 259 172
144 × 144 3116 2335 1556
One of the most fundamental differentiation features between 2D
codes and barcodes is their far-reaching capability to recognize errors
and to correct them. This capability is also described by using the
term ECC for “Error Correcting Code”. It is already possible to correct
the Data Matrix codes ECC000 to ECC140 to a certain extent. However,
ECC200 is the only Data Matrix code that utilizes the powerful Reed-
Solomon (RS) algorithm for error recognition and correction.
One of the RS process’ particular strengths is that it also provides
good results in case of burst or block errors. This is practically relevant
because, despite the data bytes being spread over the entire data
field in case of the soiling of the code, several bits belonging to a character
are affected together. Consequentially, the data coding for the
Data Matrix code includes redundancies.
A 10 × 10 Data Matrix code as such already requires five error bytes
for coding three data bytes, but can then correct more serious faults
on more than 50 % of the data field. The data to error bytes ratio improves
considerably for larger codes. However, it is always ensured
43

3 Optical codes
that up to 28 % of the data field can be faulty without an incorrect
reading resulting. We must observe that smaller faults of the finder
and frequency edge can also result in non-reading as they are not included
in the error correction process. In this case, the ability to compensate
for such errors primarily depends on the reading capabilities
of the camera systems.
2D codes also meet high demands pertaining to data consistency and
availability with their direct marking options. Mechanically effective
marking processes also ensure that towards the end of a product life
cycle, the code can be found and remains readable. In cases where
labels or RFID tags have failed, for example with medical instruments
that are sterilized hundreds of times over, 2D codes have proven their
suitability.
In the future, a fully different kind of security view should not remain
unobserved in the eyes of industry. If the availability of appropriate
reading devices was still a restricting factor in the past due to relatively
high prices, nowadays several mobile phones with a camera and
decoding algorithms can easily be re-equipped as 2D code reading
systems. Hacker attacks and unauthorized access to company data are
simplified due to this. Therefore, it makes sense to utilize cryptographic
processes for security in those cases involving sensitive data.
3.4 Application and marking methods
3.4.1 Application of labels
Generally, printing a label under controlled conditions leads to print
results closer to standards and comparatively high contrasts. This
considerably simplifies the requirements of the reading systems,
making the respective use of inexpensive devices possible. A further
advantage of labels is that the material properties as opposed to some
mechanical marking processes are not changed. However, robust, durable
availability requires expensive label material.
In particular when dealing with high quantities, the cost for highquality
and at the same time reasonably durable labels play a significant
role. In this case, it is worthwhile to check for alternative options
for direct marking of objects.
44

3.4.2 Direct marking processes
3.4 Application and marking methods
Initially, it has to be checked if the object to be marked changes its
mechanical sturdiness due to the marking process. If this is the case,
e.g. for heavily burdened workpieces or very thin materials, then
some processes such as drilling or laser etching by removal cannot be
used. Furthermore, the material must basically be suitable for the
marking means selected. The manufacturers of the marking devices
with their extensive experience with most of the materials are the appropriate
partners for analyzing suitable materials. Alternatively, we
recommend carrying out respective tests. Below we have selected
some of the many possible methods for direct workpiece and product
marking.
Printing
Direct marking using inkjet printing has stood the test of time on
many different materials such as paper and cardboard packaging and
collapsible boxes, wood, cork, ceramics, stone, and some metals. As
the ink is only applied to the surface of the material, the marking has
no effect on the material properties.
High-performance thermotransfer printers that transfer the ink to
the material via an ink ribbon, which is systematically heated, offer
an alternative to inkjet printers. Although these printers do not permit
such high material speeds, they are nonetheless suitable for matrix
codes due to their high resolution. Laser printers, which are familiar
to us from their use in our offices, also meet the requirements
for printing 2D codes. However, they are primarily used for document
management when printing on paper.
Laser labeling
The best known process for laser use is engraving, which changes the
surface of the object mechanically by material removal. The high-impact
laser beam evaporates the material in a controlled manner. A
cavity is formed that is made visible, rich in contrast, by using corresponding
lighting. The throw-off created (material protrusions) on
the sides of the engraved groove are critical as they hamper the code’s
homogeneous illumination.
With laser etching, the uppermost layer of several material layers is
removed under laser exposure. In as far as attention was paid to a
45

3 Optical codes
good contrast between the covering layer and the base layer, an easily
readable marking is thereby created. This process is used on circuit
boards and special plastic labels that are suitable for use with this laser
process.
The color change to the material when heated is used by tempering
during heat treatment. Without too strong of an effect on the material,
the color change is utilized for marking, especially on metal. As
opposed to engraving, this process does not create any cavities in the
surface and is, therefore, well-suited for use with objects that must be
kept sterile. However, such marking only remains durable if the material
is not heated further because the marking can degenerate.
Especially all when working with plastics, a controlled color change is
desired. A suitable doping of the plastic material with the impact of
the laser can achieve targeted color combinations and high contrasts.
If plastic is prepared accordingly, the laser can also make an embossed
marking by foaming material fractions. However, this results
in fuzzy edges between the light and dark cells and can only be used
successfully for large format codes.
The flexibility and suitability of laser marking only has one disadvantage
– the purchase costs for a laser marking system are high compared
to other methods and only pay-off, if there are high quantities
of the products to be marked.
Pin marking
Pin marking technology, which is relatively stress-free for the material,
is also cheap to purchase as opposed to laser marking (Fig. 3.3).
This method strikes a hard metal pin against the material with an upwards
and downwards movement, providing a sequence of interconnected
craters. Dotpin marking can also be used for hard metals without
any problems. The low costs and speed are comparable to laser
marking, which make this marking technology for matrix codes highly
attractive. The craters created during pin marking are circularshaped
and the displaced material is deposited at the edge of the crater
in a small mound. This form leads to special challenges for reading
devices as the shadows cast by the craters can sometimes be seen
as rings (to their special form also known as “donuts”) and can, sometimes
be seen as half-moon-shaped crescents or if the base of the crater
is fully reflected, as small, bright dots in the image. Not all code
reading systems are capable of recognizing and decoding such codes
reliably.
46

Fig. 3.3 Effects of the lighting for pin-marked codes
(left to right: 2 × dark field variants, diffused direct light)
Further alternative marking methods
3.4 Application and marking methods
The processes of scribing, drilling, and etching have a major effect on
the material. When drilling, take into account that the undefined
backgrounds in the drilled holes can trigger rather demanding read
tasks.
3.4.3 Verification of the Code Quality
Testing the successful application of the code subsequent to marking
is decisive for a stable process. As the quality of nearly all codes deteriorates
during the life cycle, it is advised to start with the best possible
code quality. The high-performance reading systems then serve
as a security reserve for unexpected events or deteriorated codes, in
turn guaranteeing process stability even under conditions that become
less favorable. In order to achieve this, we recommend using a
verification system directly after application of the marking.
During the course of this verification, a code reading system carries
out measurement of the code quality under constant conditions with
regard to mounting and lighting arrangement, based on various parameters.
These parameters are defined in several international standards.
Each of the parameters is allocated to a quality level from A
(excellent quality) to D (poor quality), or F (inadequate quality). The
target is to stabilize as many as possible of the parameters on level A
or B, with isolated exceptions in C. Quality D or F codes should not be
channeled into the process.
As well as recognizing that the marking process is possibly not appropriate
for the material, the settings for the marking devices can
also be optimized by using the values provided. If there is a sufficient
understanding of the marking technology, required servicing measures
for the marking systems can even be deduced from the worsen-
47

3 Optical codes
ing of certain parameters, e.g. a necessary tool change for a pin
marker.
3.5 Reading systems and their properties
3.5.1 Components of a data matrix reading system
Code reading systems include the following components:
• Camera unit consisting of a lens, sensor, and image capturing unit
• Lighting
• Controller unit, consisting of process and communication
interfaces
• Housing and physical connection technology.
Depending on the task, these elements can vary widely with regard to
their construction form and integration. You can see this immediately
when comparing stationary code reading systems and manual
reading systems. However, you can also find very small reading systems
among the fixed mounting systems (stationary code reading
systems), where fix-focus lenses, some LEDs such as lighting, and the
entire image capturing and processing unit as well as a communication
interface are integrated into the housing. There are modular systems
at the other end of the scale that can be supplemented flexibly
with matching lighting and lenses and offer various communication
interfaces. Whereas some of the devices are mainly suitable for uncomplicated,
high-contrast applications, the other products are used
in the area of demanding direct marking, e.g. in the automotive and
aviation industries.
3.5.2 Stationary reading systems
The use of stationary reading systems enables fully automatic data
collection without constant monitoring or operation by a person.
These fixed installed reading systems are used in several form factors:
As PC-based image processing systems, intelligent cameras with
a compact design, or with a remote camera head. We still must distinguish
between the image processing systems that support the reading
of matrix codes as a side function and pure code reading systems
with a SW user interface that is exclusively optimized for the parame-
48

3.5 Reading systems and their properties
terization of the code read task. Moreover, there are still variants that
are designed as verification systems.
Compact code reading systems are the largest market segment for
reading Data Matrix Codes. Fix-focus position lenses, lighting, and an
analysis device are combined in one casing. The devices frequently
offer a default parameter setting, making it possible, as it were, to
demonstrate the reading capability for codes directly out of the box.
At the same time, the user is supported by installed focusing and target
aids, which also make installation on-site easier.
As the demands of the reading task increase for direct markings or
critical installation situations for which the read distances are not
covered by fixed lenses, compact structured reach their limits, which
also cannot be overcome by optimal parameter settings. The more
flexible modular code reading systems enable the free selection of
the lens and, therefore, a high degree of freedom regarding the distance
to the object and the size of the read window. Furthermore, the
lighting is offered as an externally connectable unit that can then, for
example, also be positioned at a specific angle to the reading device in
order to avoid total reflection (Fig. 3.4).
In line with the trend to miniaturize, sub-compact reading devices
with dimensions not exceeding 60 mm in any direction have also
been available for a few years now. In most cases, these devices are
derived from the HW technology of manual reading devices. How-
Fig. 3.4 When reading from needled Data Matrix Codes on cast iron,
we recommend using contrasting lighting (Photo: W. Geyer)
49

3 Optical codes
ever, the result is the restriction of reader performance to more or
less unproblematic codes and installation situations. But, as the experience
of users leads to constantly better marked codes, these readers
will also be used for directly marked codes. The compactness of the
devices goes along with limited communication options or external
interface converters, making the costs of the solution as a whole,
higher.
3.5.3 Mobile reading systems
If it is not possible to ensure that the same or a similar part can always
be read in the same position in an identification application with 2D
codes, the option of using a mobile reading system is available. The
flexibility of these systems is advantageous. However, they always require
an operator. Manual systems for reading 2D codes must include
CCD array sensors and are frequently equipped with complex lighting
mechanics, which also enable the reading of low contrast direct
marks.
Inexpensive systems that use a few LEDs for lighting are available on
the market for reading 2D codes on paper and labels. Most of these
devices can also read 1D codes and stacked codes. The restriction here
is often that the code is too wide due to the rectangular shape of the
image window. Occasionally combined systems can be found that
overcome this problem by using a scanner as well as a CCD matrix
camera to read the barcodes.
In order to read directly marked 2D codes successfully, a lighting concept
is required that adjusts and optimizes the light. Reading devices
that are available on the market use variable lighting for this purpose,
which is changeable between light-field and dark-field lighting
and also the so-called “light pipes”, which utilize the reflecting properties
of materials to supply light evenly from the sides.
3.5.4 Physical and technical data integration
The decision to use Auto ID technology never indicates only a locally
restricted application – it is always accompanied with a far-reaching
change to the IT processes and data management. In particular, in
case of logistics applications such as the organization of the materials
flow to manufacturing, the technology quickly jumps over company
limitations and requires the integration of customer and supplier
data. Local use of the coded information only suffices for closed
50

3.5 Reading systems and their properties
manufacturing processes. However, this is increasingly viewed as
wastage as, once applied, a 2D code is available for the entire product
life cycle.
Stipulations must take various viewpoints into consideration for successful
integration. Some of these go beyond the requirements of
RFID systems:
1. Should data management take place on the object (large code) or
should the code only include an identifier and further data be kept
centrally?
2. Should the code be used for process control or for documenting
product tracking?
3. Should the connection to the main level take place via a programmable
logic controller (PLC) or an IT system?
4. Do images of the codes or possibly also only fault patterns have to
be archived or is short-term availability from the reading device’s
memory sufficient?
5. Should display functionality be provided for the system operator?
The most important interfaces are the connections to the other automation
landscape participants (machine-machine-interface) and the
user interfaces (man-machine-interface), which is briefly discussed
below.
Application communication interfaces
Due to the limitations of barcodes, central data management is the
standard for several logistics applications where the Data Matrix Code
replaces a barcode. When simply upgrading a barcode scanner, connection
via a serial RS232 interface often suffices. On the one hand,
the code strings can be passed on securely via this interface and the
reading device can be parameterized at the same time. The USB interface
has similar significance. However, this assumes a PC as its communication
partner.
Normally, bus systems such as Industrial Ethernet or RS485 with the
Profinet, Ethernet-IP, or Profibus DP protocols are already in use in
the production environment. To reduce complexity, the existing bus
systems are also used for connecting the code readers. Due to the
high bandwidth, Industrial Ethernet is the top choice for the data-intense
transmission of images. There are also systems available on the
51

3 Optical codes
market which allow data separation: parameterization and image
transfer are transmitted to PCs via Industrial Ethernet and the process
data are transmitted to a PLC via Profibus. In particular, if parts
identification via a matrix code triggers the next processing steps,
this solution can be optimal regarding the total costs.
Operator interfaces
The concepts used for the available code reading systems vary widely
with regard to the operator interface. Most systems are supplied with
parameterization software that is used to make initial system settings
and in case of any faults. Many suppliers assume that code reading
systems are used as barcode scanners for which also no image is required
by the user during operation. Some devices provide considerably
more comfort. A monitor can be connected via the integrated
VGA interface to display the camera images and other analysis data –
a function that is especially important in case of recognition problems.
This incorporates correspondingly powerful analysis software
that must become more intelligent with the fewer parameters provided.
Integrated Web servers provide the option to operate the devices
without using additional programs.
3.6 Achieve good read results
The target of all identification tasks is to capture the data from all of
the objects to be identified within as short a period as possible and
fault-free. The Auto ID technology supports in this respect the avoidance
of errors (for example, transmission errors in case of manual
data capture) and also implementing secure reading. At the same
time, a reading rate of 100 % is sought.
In industrial and logistical applications, non-reading that is reported
is far preferable to unnoticed faulty reading, because in case of the
non-reading, the object that is in question can be phased out and subsequently
recorded manually. On the other hand, faulty reading causes
incorrect data stocks and even, possibly, brings production to a halt.
For practical applications, the requirements of the read rate normally
fluctuate between 99 % and 99.99 %. In its implementation, this
means that the users accept non-reading of 100 per 10,000 parts, depending
on how high the costs are for manual intervention and on
the value of the marked objects.
52

3.6.1 Optimization of the optical conditions
3.6 Achieve good read results
The use of a CCD camera for reading codes makes a relatively high
degree of flexibility possible with regard to system installation. Neither
the reading distance nor the angle are pre-defined statically and
can, therefore, be optimized using the total optical system consisting
of the sensor, lens, and lighting. However, the most important target
is always to achieve a high read rate and this requires the observation
of certain recommendations and framework conditions.
The following criteria basically have a positive effect on high read
rates and short decoding times:
• Quality of the codes (contrast, adherence to standards (quiet zone,
uninterrupted finder and alternating borders, and cell shape)
• Low distortion due to placing the reading device as vertically as
possible to the object’s surface and the code
• Reflection-free and homogeneous code background
• Stable positioning, above all with regard to the rotation of the code
in the image window (several reading devices permit restriction of
the search window and angle via parameters, thereby restricting
the duration of the search)
• Matching code size and camera resolution ratio. A ratio of at
least 5 × 5 pixels per matrix cell has proven ideal for secure
read results.
Generally, the requirements are not excessively stringent for reading
printed or laser codes on paper, labels, or other “cooperative” surfaces
on which good contrasts and codes conform to the standards can
be achieved. Therefore, mostly compact reading devices with integrated,
ring-shaped lighting have become established for these reader
tasks. Mostly these devices also have fixed focal lengths or socalled
fixed focus lenses, stipulating the distance and image window
size within a narrow scope.
The direct marks for which the above-mentioned optimized ratios
cannot be achieved pose a greater challenge. The following measures
can be employed to improve the read results:
• Calculation of the optical system for a accurately focused image
and the optimum code size for the selected field-of-view. This often
results from the possible positioning accuracy of the code, which
can fluctuate widely between the applications, and where its
improvement may cause rather high costs for mechanics.
53

3 Optical codes
• Optimization of the uniformity of the code and the contrast via a
material and distance-dependent lighting concept.
• Minimizing the optical distortion due to positioning the camera as
vertically as possible while observing any possible reflections. A
slight angle of 10 to 20 degrees has often proven ideal, especially
when using the integrated lighting as total reflections can occur
here.
Fig. 3.5 The influence of illumination on contrast and readability of a laser
2D code (left-hand side: Ring light, right-hand side: Diffused axial lighting)
Depending on the state of the code with reference to mechanical material
changes (protrusions or material removal) as well as the roughness
and reflectivity of the material can become highly challenging
with regard to lighting techniques. Fig. 3.5 shows some of the effects.
3.6.2 Minimization of the material ambient conditions’
influence
The material initially does not influence the sensory recording in case
of an optical system (although the reflection properties of the material
must be taken into consideration), as opposed to radio technology,
which might be affected by water or metal in the surroundings. However,
soiling of the lenses or the object due to dust or oil can influence
the reader’s success in the long-term. You can only protect them
against insidious, worsening read rates with corresponding protective
methods and regular cleaning if a fundamental elimination of the
problem is not possible.
You must also take into consideration for all identification applications
that the quality of the code tends to deteriorate during a multilevel
production process with possible intermediate periods of storage.
For example, we would like to refer to slight rust traces that may
54

3.7 Outlook and new developments
dramatically change the reflection properties of the object after a
storage phase. We can only control such effects by analyzing the process
in detail, the parts concerned, and the conditions, which must be
observed with foresight.
Generally speaking that isolated non-reads that occur provide highly
demanding challenges to the diagnosis functions of a reading device.
As a minimum, a reading device should provide the opportunity to
save errorneous images including the read parameters used and time
stamps. At the same time, it is then also possible to reconstruct effects
such as a time-dependent change of ambient light.
3.6.3 Meeting the technological requirements
When working with matrix cameras, inadequate positioning of the
code and resulting in a code outside of the camera’s field-of-view is a
common error source. Therefore, when selecting a code reading system,
the performance properties, the integration into an automation
system and mechanics should also be observed. The following questions
should be answered:
• How precisely can I position and what size must the field of view
be? Might I need a higher camera resolution?
• How many parts must be read per second? Do I need especially
high-performance reading devices or special parameter settings by
more accurate definition of code type and orientation, in order to
achieve faster reading results?
• How can I trigger image capturing? Can I distinguish the objects in
such a manner that a trigger signal can be created by a proximity
switch? Or do I require a self-triggered image acquisition where a
code is continually searched for in the image (which indicates the
need for a high-performance system)?
The answers to these questions have a considerable influence on the
selection of the reading system that is appropriate for the respective
application.
3.7 Outlook and new developments
Following the first years of careful testing, matrix code technology
has developed to become a recognized alternative to barcodes and
RFID in the meantime. At the same time, common efforts of recent
55

3 Optical codes
years by industry and suppliers in the area of standardization have
led to growing trust and a common understanding of the correct application
of the 2D code and, in particular, the Data Matrix code.
With the expansion of the application areas and number of uses,
there is a current trend in the use of budget systems, above all for
unproblematic marks. Moreover, the increased performance capability
of processors, along with further efforts to improve analysis software,
has reduced the risk of unread codes.
The selection of code formats in the 2D range does not stand still with
the standardized codes. New applications and requirements drive innovation
forward and new code types are developed, which could become
tomorrow’s standard. In the meantime there are codes on the
market with an external form that can adapt flexibly to the space
available and codes that, in addition to the pure information, also
contain security features for product authentication.
Standardization, innovative progress, and the specific properties of
Data Matrix codes and other 2D codes such as low space requirements,
minimal costs for marking, and non-sensitivity pertaining to
environmental influences will ensure 2D codes’ long-term place
among the important Auto ID technologies.
References
[1] Fraunhofer-Institut für Materialfluss und Logistik (IML): Marktbefragung
April 2004
56

4 System architecture
Peter Schrammel
RFID and Auto ID systems provide computer systems with access to
the physical world of things. This means that relevant data can be automatically
recorded directly at the object location, thereby enabling
process control and optimization. The mobility of real objects largely
requires a spatial distribution of the infrastructure requiring management.
The recorded data must also be preprocessed in order to
extract their business benefit. This chapter deals with the requirements
and solutions regarding the architecture, data processing,
management, and operation of these systems.
4.1 Overview
The architecture of a system is understood as the totality of components
(hardware and software) as well as their arrangement and interaction.
The architecture specifies the important properties of a system,
thereby determining its options and limits. On the other hand,
the architecture concept depends on the required properties of the
system. In RFID and Auto ID systems, these are particularly determined
by the characteristics of the realizable business processes.
4.1.1 Software in RFID and Auto ID systems
An RFID or Auto ID application is nearly always an automated system
that displays and supports the business process. It spans all the system
levels (Fig. 4.1), from objects equipped with transponders to the
device infrastructure, Edgeware to the business logic, i.e. right up to
the display of local, company-wide, and sometimes even cross-corporate
business processes.
57

4 System architecture
Fig. 4.1 System levels in RFID and Auto ID systems (comp. [1])
4.1.2 System characteristics
In RFID and Auto ID systems, we distinguish between closed and open
systems. In closed systems, the objects are only recorded within an
institution to stay there or keep returning back to them. An open system,
on the other hand, permits utilization by many users for their
own application; the object flow is usually not a circuit. Therefore, the
transponder on a car chassis could, for example, be used by the manufacturer
for production control, by the dealer for inventory purposes,
and by a commercial customer for the administration of the car
fleet.
A further characteristic is the type of interaction between the system
and object. This take place, for example, on an assembly line or
through manual handling such as during the inventory of IT equipment
with a mobile recording device.
In central systems, the business logic takes place centrally; one example
is a pet register with which veterinarians and authorities can ascertain
information on the animal and owners by reading the injected
transponder. Such a system is organized locally, when this information
is stored on the transponder and could be read offline anywhere.
Decentral systems are applied wherever local processing and control
are required, which a central system can no longer cope with, for example
in an automation system.
4.1.3 Processes, applications, and marginal conditions
The process flow in a typical RFID application (Fig. 4.2) first requires
the initialization of the transponder. This is achieved by optically and
electronically programming and issuing them with a unique number,
which is also affixed to the object. The now uniquely identified object
then passes the various identification points in the process such as
58
Inter-enterprise level
Enterprise level
Process level
Access level
Device level
Object level

4.1 Overview
goods shipment, for example. At the end of the life cycle, the transponders
in some systems can be detached from the object and destroyed.
As the physical environment (metal, liquids, antenna alignment,
etc.) influences the transponder’s reading quality, other technical
and organizational measures are required apart from the optimization
of the RFID hardware, which need to be coordinated by the
entire system.
Initialization Equipping Palletization
RFID
printer
Disposal
RFID
cash till
Sales
Fig. 4.2 Typical RFID process in Logistics
Inventory
Goods shipments
Goods entry
The concrete requirements of the system depend on the properties of
the application, whether only tracking or real-time control takes
place, for example, or the size of the recordable units at goods receipt
or whether only manual recording takes place with a mobile recording
device. However, RFID-supported processes do not only take place
within a company but can also be designed to overlap with business
partners. The tracking of goods transport, for example, is a globally
distributed process that not only involves suppliers and customers
but also logistics and transporting companies as well as institutions
such as customs, banks, and insurance companies. A further requirement
is contained in the question of who is to receive what information
when, in what form, and how fast.
59

4 System architecture
4.2 System levels
RFID and Auto ID systems are usually hierarchically structured. The
data volume decreases from the bottom upwards, while the latency
period increases. Many fast reacting systems perform preprocessing
in the lower levels, so that the higher levels are only confronted with
the information actually required for the fulfillment of their tasks.
Then again, central monitoring, remote administration, and optimization
are also required.
4.2.1 Components
An RFID system consists of a multitude of components:
• transponders
• RFID devices such as RFID readers or RFID printers
• automation devices such as programmable logic controllers (PLC),
signal lights, photoelectric barriers, and other sensors
• mobile reading devices (PDAs, handhelds) for executing
mobile applications
• network and communication structure
• Edgeware such as a component of RFID middleware, which
abstracts the subjacent hardware landscape and provides an
interface for recording and writing data, for data preprocessing,
and device maintenance
• Edge servers for Edgeware and local business logic processes
• The actual middleware serves transparent, secure data distribution
in the corporate network.
• Enterprise Resource Planning (ERP) systems are responsible for
the secondary processes. They maintain all the information
required for the execution of central business logic.
• There are often RFID repositories between ERP und Edge servers,
in remote systems for performance reasons or as an interface to
external systems.
• Clients such as interfaces to human users
• External interfaces for the connection to further systems
60

4.2.2 Topologies
4.2 System levels
The system topology describes the arrangement of these components
in the system. Fig. 4.3 shows the topology of a globally distributed
RFID system. Such a decentral system consists of a local infrastructure
at every location, which is maintained and controlled by an Edge
server, which in turn represents the gateway to the central system.
Remote data processing is offset by local system administration. The
simplest architecture can be achieved with a local system, consisting
of (mobile) RFID reading devices and transponders with all the required
information only (data-on-tag).
Mobile RFID reading devices assume a special status because they can
fulfill various tasks in the system. Apart from a purely offline system,
Admin
client
Local
client
RFID
printer
Company A, Vienna headquarters
Company A, location 2:
Shanghai
RFID
reader
Business
clients
SPS
LAN
LAN
Company A, location 1:
Amsterdam
LAN
RFID
reader
DB server
Application
server
Edge
server
RFID
reader
Internet
VPN
Fig. 4.3 Globally distributed RFID system
EdgeEdgeserverserver
Internet
Company A, location 3:
Hamburg
LAN
Company B,
London headquarters
WLAN
Signal lamp
Photoelectric barrier
Application
server
RFID
reader
Mobile
RFID
reader
61

4 System architecture
online application is also possible during which only the Edgeware
and a client are located on the MDE for operator information purposes,
while the local business logic is executed on a stationary Edge
server.
4.2.3 Application levels
In RFID and Auto ID systems, the application logic is located at all levels
(Fig. 4.4), as tasks should always be performed on the lowest level
possible. This already starts at the transponder: if an RFID has a sensor
function, for example, then it makes sense that the transponder
itself executes algorithms for the filtering, evaluation, and storage of
environment measurement data in order to reduce the communication
volume via the air interface to the greatest possible extent [2].
The reader often allows for the prefiltering of recorded transponders
(transponder access) so that only data, in which it is actually interested,
are registered on the Edge server in the first place.
Edgeware (device access) consists of several levels: the readers are
controlled at the lower levels, just as in the activation and deactivation
of the RF field, for example. Transponder recognition and further
commands for communication with the individual transponders are
initiated from the levels above. Then, the read-in raw data have to be
transformed into higher data types or the writable data coded into
binary format. The final step is comprised of filtering and aggregation
operations. The real-time control functions are displayed in the
local business logic on this basis.
Security
Fig. 4.4 Application levels in RFID systems
62
Monitoring
Administration
Business clients
Central business logic
RFID repositories
Local business logic
RFID data access
RFID transponder access
RFID transponder logic

4.2 System levels
Data distribution to the local business logic and external systems
takes place at the middleware level. This level is usually carried out as
a repository where the data are persistently stored. Information users
periodically retrieve new data (Pull Principle) or are informed of new
data (Push Principle).
The local business logic executes the processes that are displayed in
an ERP system (Enterprise Resource Planning) and provides interfaces
to clients for controlling and monitoring processes. Cross-level
topics include security and management functions such as system administration,
monitoring, and configuration.
Apart from the functionality of communication with the transponders,
so-called “intelligent” RFID readers have become a trend, whereby
Edgeware and even sometimes the local business logic run on a
remote controllable device.
4.2.4 Edgeware
Edgeware is responsible for device and transponder access, thereby
separating the business logic from interaction with the hardware. The
Edgeware reduces the data volume (e.g. with processing rules) and
only transfers compressed information to higher levels [3]. RFID system
application standards were developed for the interface to the
business logic, headed by the EPCglobal Application Level Events
(ALE) Interface [4]. Important Edgeware concepts are the abstractions
of the physical reading devices to logical devices. This allows the business
logic to request data from “goods receipt” for example, without
having to know the number of real RFID reading devices installed
there or the manufacturer of these readers. This enables the regrouping
or exchange of RFID components without changes to the business
logic.
The interface to the business logic can either be event-based, i.e. the
business logic reacts to events generated by the Edgeware, or it is controlled
by the application, i.e. it actively starts operations via the
Edgeware.
A further Edgeware task area is raw data processing (e. g. filtering of
duplicate, unimportant, or incorrect events), the aggregation of transponder
data (e.g. of cartons on a pallet or the articles in a carton) and
the derivation of additional information (e.g. the direction of movement
or the number of objects). Stored data must be interpreted and
the writing processes automatically verified. Events must also be
63

4 System architecture
temporarily stored if they cannot be immediately processed by the
business logic.
4.3 Integration
RFID and Auto ID systems are not independent systems; they usually
require connection to existing systems resulting in external system
interfaces. A large number of various devices within a dynamic system
landscape is a challenging integration task.
4.3.1 System interfaces
System interfaces are communication channels to existing further
systems. On the lower levels, these are interfaces to real-time interaction
(e.g. with an automation system) for local sensors or displays as
well as to interaction with users. Control of these interfaces should
not take place via the direct business logic but rather via the
Edgeware. Typical external interfaces at higher levels are existing databases,
SMS gateways, and banking interfaces in RFID based payment
systems such as electronic tickets. System interfaces at the enterprise
level include reporting functions and customer web portals.
4.3.2 Communication layers
Not all protocol stacks of communication systems that are applied in
RFID systems are persistently standardized. However, the properties
of proprietary interfaces must be transparent for the levels above.
This is still simplest with the air interface between RFID reading devices
and transponders in order to ensure interoperability with transponders
from different manufacturers. The application layer can be
extended by the manufacturer specifications to implement additional
functions. This can usually be achieved by positioning the transponder
protocol externally via the reader protocol in such a way that the
Edgeware can generate any commands that the RFID reader then
sends to the transponder unchanged.
Proprietary application protocols are exchanged between the RFID
reading devices and Edge servers. Therefore, each device type must
have its own protocol module (driver) in the Edgeware. Similarly, the
application interfaces to other devices at the device level are nearly
64

Application
Presentation
Session
Transport
Network
Data link
Physical layer
Fig. 4.5 Example of communication layers (BL: Business logic)
4.3 Integration
always proprietary. RS232 or Ethernet but also USB and WLAN are increasingly
used at the lower protocol levels.
Interfaces based on web services count as “state-of-the-art” for communication
between higher layers. Standardized protocols of the application
layer between the data and process levels would be, for example,
the Application Level Events (ALE) acc. to EPCglobal.
Fig. 4.5 shows the example of a section through the communication
levels of an RFID system.
4.3.3 Technologies
Central BL Local BL
e.g. SOAP
Web service
e.g. TCP / IP /
Ethernet
Enterprise
systems
e.g. UART / RS232
Edge
servers
e.g. proprietary
RFID reader
protocol
RFID
SLG
e.g.
ISO / IEC 15693
Transponder
Many technologies could be considered for the integration of components
and the connection of external systems. If RFID reading devices
are directly involved in an automation system, in which activation
modules will be available that, as protocol converters, enable the connection
of, for example, RS422 to Profibus. These modules also fulfill
various Edgeware functions such as, for example, the system’s controlled
startup. Edgeware such as Simatic RF Manager enables a connection
not only to the automation but also to IT systems. OPC (Object
Linking and Embedding for Process Control) is widespread as an application
layer in automation technology.
Mobile devices communicate whether in batch operation via docking
stations or wireless via WLAN or Bluetooth. USB or RS232 is usually
used for a cable connection.
65

4 System architecture
Proprietary XML messages directly via TCP, XML, or CSV files via FTP
or also remote calls via CORBA are still used for the connection of existing
systems. Otherwise, the connection of external systems either
takes place via SQL, if these are databases, or via web services if these
are applications. Java and .NET have asserted themselves for business
logic programming purposes and distinguish themselves with their
extensive platform independence.
In most instances, modern web technologies allow the replacement of
independent Thick Client Applications with web applications. This
holds considerable maintenance advantages, as own software does
not need to locally installed – it simply requires a web browser. Finally
yet importantly, this significantly reduces the requirement of client
resources and processing power.
4.4 Data flow and data management
Process control and subsequent evaluations require the maintenance
of far more data in the RFID and Auto ID system than the actual transponder
ID. This section describes exactly which data flow within a
system such as this and for what purpose, the origin of data, the point
in time at which they are created, and which concepts are available to
support the management of these data through the system architecture.
4.4.1 RFID and Auto ID data
The central identification characteristic is the unique identifier (UID)
that is, depending on the technology, either assigned by the manufacturer
or independently generated from a reserved number range.
This is uniquely linked to an object during the application of the transponder.
Caution is required when using a transponder for several
objects during its life cycle or if several transponders are linked to the
same object: this contradicts the basic principle of unique object
identification with considerable disadvantages for e.g. database access.
Object description data contain information on the type of object, to
what other objects it belongs or what other objects it entails and what
properties it has. These data stem from the Enterprise system and are
linked during UID initialization and/or written to the transponder.
66

4.4 Data flow and data management
Tracking data include the time stamp and recording location. These
stem from the system configuration or from a timer and are linked to
the UID during every recording. The triple combination of UID, time,
and location represent an elementary recording event to enable the
tracking of an object along its way. These tracing data correspond to
normal tracking data, the difference being that the information of a
tracked object can be stored on the transponder itself.
Ambient data such as temperature are either recorded by the transponder
itself and read out during recording or measured with additional
sensors and linked to an event via the Edgeware. The process
data include all the information on the process step where the event
occurred, i.e. why the object is recorded by whom and the status in
which it currently is. These data are read from the system configuration
or via clients.
Further information can then be derived from these basic data such
as stopping time, throughput time, direction recognition, and the
number of objects in aggregations.
4.4.2 Object identification
In many RFID systems the transponders only serve for the identification
of objects; all the information linked to the object are contained
in a database. With this “minimalist” approach the RFID transponders
purely serve as a barcode replacement [5]. The advantages of such
systems are low transponder costs, rapid reading processes, and the
elimination of writing processes (with the exception of initialization).
The disadvantage is that even local business processes always require
online connection to the backend system (data-on-network).
Their area of application is logistics, for example, where it is a matter
of automatic recording and especially bulk recording at gates and
conveyor belts requiring high reading speed. One example would be
the determination of all articles in a carton or all cartons on a pallet.
4.4.3 Distributed mobile databases
The reverse paradigm is to store all the data required for local business
processes in the transponder memory (data-on-tag). The transponder,
therefore, turns into a mobile database itself – data are
transferred at the object level via physical movement. The disadvantages
here are the longer reading times and writing processes.
67

4 System architecture
This principle is predominantly applied in closed systems, for example
in automation or in those systems where individual recording and
manual object manipulation prevail. An online connection is not required,
thereby saving costs for a WLAN infrastructure or mobile radio
transmission for mobile devices. The transmission of data to
downstream systems is time delayed. One problem, however, is the
transport of meta information, as all communicating devices need to
know how the stored data must be interpreted.
4.4.4 Hybrid approaches
A compromise is to route data into the database not only as so-called
virtual transponders but also to (partially) store them on the transponder
[6]. Business processes can thus be executed online as well
as offline. A problem is that special measures need to be taken to keep
the data consistent, as these may possibly be modified by two places
simultaneously.
4.5 System management
An RFID or Auto ID system often consists of hundreds of components
who all need to be configured, monitored, maintained, and protected
from unauthorized access. A system such as this must, therefore, provide
functions that support the total operation.
4.5.1 Device management
The device level requires sophisticated management in order to enable
the configuration of the device landscape. For instance, RFID
reading devices require the setting of various communication parameters
and a location, i.e. a logical device.
The device status then has to be monitored during operation to allow
the detection of a failure. This usually takes place via so-called heartbeat
messages, which are either regularly sent to the system or queried
by the system. During a failure, this allows switching over between
redundant devices or to initiate the removal of defect by service
staff. The exchange of components requires Plug’n’Play abilities
to enable smooth replacement even during ongoing operation. The
system must automatically re-incorporate and configure the new device
into the system.
68

4.5 System management
Finally, updating the device’s firmware is of large significance. It is
unimaginable to have to manually install a new firmware version in
thousands of devices from Paris to Tokyo! Coordination of implementing
the updates is usually the task of the Edge server.
4.5.2 Edge server management
Edge servers are mainly used for remote device maintenance. However,
software (Edgeware and local business logic) must also be distributed
on the Edge servers themselves. The challenge with larger updates
is to ensure that not all Edge servers start the update simultaneously,
thereby overloading the central server. In order to also
achieve sufficient error tolerance in Edge servers, it would be expedient
to execute these in active-active operation. If one computer fails,
the second computer can adopt the procedures of the first until the
former – if possible – resumes operation.
An important point is error diagnosis in RFID systems. Log files and
error handling for the devices are managed in the Edge server and
can be remotely evaluated. During the search for an error the process
must be – sequentially and contextually – traceable to each individual
reading process.
Similar to RFID reading devices, Edge servers also require monitoring
of the current status, whereby additional parameters such as CPU capacity,
memory allocation, reading rates, and reliability of the maintained
devices are also usually required to maintain the desired level
of the “Quality of Service” (QoS).
4.5.3 Security
Security is an important requirement for systems, especially in the
case of sensitive (business) data. Transmission between Edge servers
and the Enterprise server, therefore, takes place via a Virtual Private
Network (VPN) on the Internet. Communication with business partners
usually also takes place along these lines. HTTPS (Secure Hyper
Text Transfer Protocol) is used for web services.
System-wide user administration is generally required, which not
only conducts user authentication at the terminals but also accepts
the system components reciprocally. Access control is, however, only
poorly pronounced so far. Protection of IT systems at higher levels is
network-technically solved with firewalls. Although access authoriza-
69

4 System architecture
tion is also required at the transponder level it is seldom applied. A
new approach is represented by the implementation of strong cryptographic
algorithms in passive transponders (see Chapter 20).
4.5.4 Availability
Availability and system stability are decisive for all automatic control,
in which a system failure would lead to considerable costs (for example,
in production systems).
Apart from the redundancy of RFID devices and servers, securing
communication connections is of large significance. The Edge server
must be able to temporarily store the data transmitted to the central
system as well as caching the data required by the central system to
process the local business data to the greatest possible extent (offline
ability). In case of non-availability of the central system, this would at
least enable temporary local operation. These abilities are especially
required for handhelds, which either only work offline or are only occasionally
connected due to unavailability of the radio connection.
These measures also relieve the central system by locally buffering
larger data volumes that are not real-time relevant and transmit them
to the central system with a time delay.
Error tolerance is also an important aspect for the lowest level. Reading
errors, for example, must be compensated for by an error-tolerant
and correcting Edgeware, if possible.
4.5.5 Extendibility and adaptability
Adaptability, open interfaces, and plug’n’play ability are all important
for the configuration and modification of an RFID or Auto ID system,
as these often have to be adapted to the changeable requirements
of a company. The software architecture must, therefore, be
structured in such a way that even radical changes can be reacted to
in a flexible way. It could emerge, during pilot operation for example,
that the HF technology for the application is unsuitable and that UHF
is needed instead. Such a change should not result in the new development
of the software but should rather be solvable with a few
changes to the configuration. A similar change applies for the application
of transponder types from various manufacturers or in the
case of different protocols, reading devices, communication interfaces,
or data models.
70

4.5.6 Invoicing functions
4.6 The EPCglobal Network
A new approach for the application of RFID or Auto ID system is to
provide operation as a service for other companies (compare Chapter
13). Utilization of the system is then invoiced via defined performance
parameters such as the number of reading events. The systems
must provide a function in this regard, enabling invoicing according
to transactions, events, transponders, or processes.
4.6 The EPCglobal Network
The EPCglobal Network [7] is a standardization initiative for the development
of industrial standards for a global network, helping trade
partners to monitor all the products that are equipped with an RFID
based Electronic Product Code (EPC) and enabling the exchange of
product-related information.
4.6.1 Overview
The component interfaces of the EPCglobal Network are defined by a
series of interrelated standards. Fig. 4.6 shows a part of the components
of the EPCglobal Network and their classification in the application
levels of the reference model.
Central BL
Repository
Local BL
Edgeware
Devices
Transponder
EPCIS Accessing Application ONS
EPCIS Query IF
EPCIS Repository
EPCIS Capture IF
EPCIS Capturing Application
Application - Level Events IF
Filtering & Collection
EPC Tag Specification
RFID-Transponder
RFID Reader
Reader Management
Reader Protocol Reader Management IF
Fig. 4.6 Components in the EPCglobal Network (compare)
71

4 System architecture
Basically, the EPCglobal Network is designed to be decentralized; each
company operates its infrastructure and administrates its EPC data,
i.e. there is no central data maintenance.
4.6.2 EPCIS and ALE
The EPC Information Service (EPCIS) serves the exchange of information
on products and product movements. The Object Naming Service
(ONS) enables an enquiry on who is responsible for which EPC. The
EPC data can then be queried from the responsible EPCIS repository.
It must, of course, be specified who may query which information via
the Query interface. The typical information stored in an EPCIS repository
are the EPC itself, production data such as batch number, production,
and process data; transport data such as order and delivery
notes; product status in process steps and during transport – everything
in connection with venue, time, and ambient information.
An important architectural element of the EPCglobal Network is the
separation of data recording from the business logic through the Application
Level Events Interface (ALE). This interface abstracts the
functions that are used for detecting the RFID transponders, the collection
of data over a certain period, data filtering and grouping and
counting of transponders. The concept of the logical devices enables
the separation of the business logic from the actual hardware infrastructure.
In a so-called Event Cycle Specification via the ALE interface,
the application discloses how and which data must be recorded.
This can be achieved by the single storage of specifications and polling
or based on so-called subscriptions. The Event Cycle Specification
defines the start and stop conditions of the recording (a specified duration
of time, for example), the required stability of the number of
transponders in the field, trigger conditions as well as the type and
scope of the returned reports (required filter operations, groupings,
and counting).
4.7 Summary
RFID and Auto ID systems enable data to be linked to an individual
object. These, usually mobile, objects run through an often globally
networked infrastructure, thereby controlling the business processes
with the help of a sophisticated software system.
72

4.7 Summary
The processes and requirements for Auto ID and RFID are basically
identical: integration in processes, processing of large data volumes,
high availability, security and management functions diagonally
across all system levels, remote administration of the infrastructure
and process logics as well as extendibility and plug’n’play abilities.
However, due to higher reading rates and more complex interaction
in RFID systems, the high requirements for such a system become all
the more clear. This is what enables the utilization of the manifold
options provided by the RFID transponders.
A clearly structured system architecture with the specified properties
is the prerequisite that RFID or Auto ID can actually fulfill their tasks
in the business processes in order to achieve the expected process improvements
and economic advantages during everyday operation.
References
[1] See EPCglobal Inc: The Application Level Events (ALE) Specification.
Sept. 2005. Available at: http://www.epcglobalinc.org/standards/ale/
ale_1_0-standard-20050915.pdf
[2] See F. Thiesse: Architektur und Integration von RFID-Systemen. In: Das
Internet der Dinge – Ubiquitous Computing und RFID in der Praxis.
Springer, 2005.
[3] See B. Prabhu, X. Su, H. Ramamurthy, C. Chu, R. Gadh: WinRFID –
A Middleware for the enablement of Radio Frequency Identfication
(RFID) based Applications. University of California, Los Angeles, Wireless
Internet for the Mobile Enterprise Consortium, 2005. Available at:
http://www.wireless.ucla.edu/rfid/winrfid/
[4] See http://www.epcglobalinc.org/standards/ale/ale_1_0-standard-20050
915.pdf
[5] See S. Sarma, S. Weis and D. Engels: RFID Systems and Security and Privacy
Implications. In Proceedings of the International Conference on
Security in Pervasive Computing, Boppard, pages 454-469, Mar. 2003.
[6] See C. Floerkemeier, M. Lampe: RFID middleware design – addressing
application requirements and RFID constraints. In: Proceedings of the
joint conference on Smart objects and ambient intelligence: innovative
contextaware services: usages and technologies, Grenoble, pp. 219-224,
2005.
[7] See http://www.epcglobalinc.org/standards/architecture/architecture_1_2framework-20070910.pdf
73

5 System selection criteria
Peter Hager
Whether in classical production controlling, consistent supply logistics,
or tracking batches or products – the identification technologies
Data Matrix Code (2D code) as well as RFID distinguish themselves
from the Barcode (1D code) through their high data security as well as
their use in rough industrial surroundings. On the one hand, solid
basic knowledge of the technological differences between the Data
Matrix Code and RFID (Table 5.1) is important for product selection.
Table 5.1 Important features of the identification technologies
Data Matrix Code and RFID
Criterion Data Matrix Code RFID
Principle Optical recognition Radio transmission
Visual connection Required Not required
Reach Low to medium Low to high
Sensitive regarding In part, reflections In part water, metal
Direct marking Possible Not possible
Price for labels Very favorable Favorable
Information density High Very high
Change to the data Not possible Possible
Grouped recording Not possible Possible
On the other hand, the determination of the user requirements also
requires the observation of the process and the process environment.
Special attention must be given to the following for the selection of
the most appropriate identification technology:
• strengths and weakness of the respective technology
• unique marking or repetitive writability
• reuse of the data carrier in the process chain
74

5.1 Automatic identification with Data Matrix Code
• material and properties of the markable products
• available space for marking
• ranges or recording distances
• environmental influences such as light conditions, ambient
temperatures, or dirt
whereby in practice the user must include several criteria mirrored in
the application as well as weighted selection criteria.
5.1 Automatic identification with Data Matrix Code
Typical applications of using the Data Matrix Code are parts consisting
of metal, ceramics, plastics, and glass applied in vehicle gear boxes,
flat module groups, ink cartridges, or medical instruments.
The Data Matrix Code can even be applied where there is limited
space for marking on the product, i.e. electrical components or circuit
boards. Apart from the identification number, the Code can also be
used to permanently store production specifications and measurement
data on the workpiece through all the processing steps, whereby
even 25 % soiling or damage of the data field could enable the secure
read-out.
Important criteria for the application of the Data Matrix Code are:
• small to medium sized data volumes
• permanent marking directly on the object
• interfering metal or water in the environment
• high quantities
• firm fixation of the recordable object
• integration in automation and IT
The Data Matrix Code can be attached in various ways – whether
through inkjet or thermotransfer printing or via laser, matrix printing
or press cut. With a memory capacity of more than 100 bytes, the
Data Matrix Code allows the recording and evaluation of extensive
product data, whereby the code must be positioned in the exact center
of the reading device – usually a CCD or CMOS matrix camera. The
respective selection of sensor, lens, and lighting achieves stable reading
rates even in difficult lighting conditions or low contrast also near
75

5 System selection criteria
metal surfaces or metal objects. Ranges of several meters are even
possible under strong lighting.
If the Code is applied for production control, e.g. if the type of workpiece
processing is stored directly, the connection to industrial bus
systems such as Profibus or Industrial Ethernet or the connection to
programmable logic controllers (PLCs) becomes imperative: respective
SW components should be available for data communication with
the Code reading devices. The adjustment of Code data with the actual
processing data – these are usually contained in a production planning
system – requires direct communication with IT systems.
The application of direct marking requires observation to the four
process steps Mark, Verify, Read, and Communicate (MVRC®, Fig.
5.1). First the marking process that is most suitable for the respective
supporting material is selected. Then, the code is verified with an internal
reading device and improved, if required, to ensure the code’s
quality at the process start. Therefore, the secure reading of the code
is also ensured under difficult processing conditions. The recorded
data are then transferred to the superimposed IT system in the
matching format via the respective communication interfaces.
Direct
marking
with 2D code
Fig. 5.1 Direct marking with Data Matrix Code – the MVRC principle
ensures high code quality
When applying RFID, we distinguish between two application principles
– one-off use of the data carrier and the continuous reuse of the
data carrier.
76
Production
Verification
of the
2D code
Reading and
transmission
of the 2D code

5.2 “Open Loop” applications with RFID
5.2 “Open Loop” applications with RFID
RFID systems are increasingly used along the logistics supply chain as
they provide new qualities regarding goods security, goods availability,
or reduced logistics costs through fast and safe recording during
goods receipt and shipping. The data carriers, mostly the so-called
Smart Labels, are used once off and permanently remain on the object
along the entire supply chain. The lowest possible label price is
appropriately important (Fig. 5.2).
Production Central warehouse Department store
Important criteria for Open Loop applications are:
• small data volumes,
• standardized data filing,
• bulk recording,
• high quantities,
• variable fixation of the recordable objects and
• integration in IT.
Cartons or external
packaging with
RFID
Fig. 5.2 “Open Loop” applications – the data carriers are used only once
along the entire supply chain
The Smart Labels have very reduced data capacity and usually provide
only one identity number (ID). The RFID system reads these out
and determines the actual information with the help of superimposed
database systems, such as the nature of the product and its respective
serial number or the destination venue for the goods. The
electronic product code (EPC) has established itself as a standard, as
77

5 System selection criteria
its 96 Bit enable a globally unique number system. Therefore, external
packaging or cartons, for example, can be provided with a unique
identification.
As the information is obtained via the network – the so-called “Dataon-Network”
concept – the simple integration of the RFID systems in
the IT world (e.g. ERP systems) is an important prerequisite. To
achieve optimum performance, the synchronization of several readers
as well as the filtering and preprocessing of the RFID data via RFID
middleware would be of advantage.
The RFID systems require ranges of several meters to enable the thoroughfare
of forklifts between the antennas during the shipping and
receiving of goods. Secure recording of the objects during varying
transponder alignment must also be ensured. Many transponders
have to be reliably recorded simultaneously (bulk recording), if for
example one pallet has a large number of marked cartons.
5.3 “Closed Loop” applications in RFID
This classic form of RFID application has been used in production and
material flow control for many years and enables the economical production
of configurable serial products such as contactors, PCs,
household goods, or automobiles. The data maintained locally on the
transponder directly support the control of process and testing steps.
The data are reused after the production cycle by being channeled
back to the production line after having been provided with new data.
The transponder price, therefore, plays a subordinate role.
The important criteria for Close Loop applications are:
• data changeability,
• medium to large data volumes,
• small to medium quantities,
• robustness of the data carrier,
• firm fixation of the recordable object and
• integration in automation and IT.
RFID systems with a small range are applied in most track-guided
conveyor systems, as only the tag that is routed immediately past the
antenna is to be read. In this case, RFID not only ensures unique iden-
78

5.3 “Closed Loop” applications in RFID
tification but the data locally maintained on the transponder also directly
support the control of processing and testing steps. Apart from
production instructions, the tags with up to 64 Kbyte memory also
contain quality information that is updated after every processing
step. This enables the development of remote automation structures,
which clearly reduce the effort required for local data maintenance,
as the required information is available in real-time at the processing
stations without requiring a connection to the IT system.
The robustness of the RFID components to environmental influences
is also of great significance for fault-free operation in industrial applications.
Special protection against dust, liquids, or chemicals as
well as heat resistant versions for temperatures above 200° C must be
provided depending on the respective application.
An important prerequisite is the simple integration in automation,
for example via Bus systems such as Profibus or Industrial Ethernet,
with programmable logic controllers (PLCs). If the respective SW
components are available in PLCs for data communication with the
RFID reading devices, programming is simplified significantly. The
close interaction of the RFID system and the PLC also ensures the automatic
restart of the entire system after a failure.
In Intralogistics applications, pallets or circulatory containers such as
pallet cages or EGB boxes are marked with RFID transponders instead
of workpiece carriers (Fig. 5.3). These are provided with a unique
identification and can be automatically registered and administrated
in a superimposed IT system. This allows for the respective transparency
in the goods and material flow and enables optimization ap-
Production
Workpiece
carrier
with RFID
Intralogistics
Pallets or
pallet cages
with RFID
Fig. 5.3 “Closed Loop” applications – the data carriers are reused often,
especially in production automation as well as the intralogistics between
partners
79

5 System selection criteria
proaches for moveable investment goods. The respective design of
the RFID tags also allows for secure recording on metal objects. It is
here that wide RFID system ranges are also required, so that a forklift
can comfortably fit between the antennas for the shipping and receiving
of goods.
5.4 Conclusion: both technologies complement
each other
If one looks at the entire production process, both technologies are
already being applied today (Fig. 5.4). Therefore, semi-finished parts
in pre-production, which are directly processed with a Data Matrix
Code according to their coding, are drilled or milled for example and
then routed to final assembly.
Fig. 5.4 Application of both technologies by using the respective
advantages in the production process
This assembly line is controlled with RFID. The transponder is attached,
for example, to a workpiece carrier and contains all the production
specifications or quality data. The RFID data are read out at
every assembly station and updated after processing. The entire assembly
cycle is thereby recorded on the data carrier.
80
Goods entry
Pallets or
pallet cages
with RFID
Prefabrication Final assembly Goods shipments
Direct
marking with
2D code
Direct
marking with
2D code
Workpiece
carrier
with RFID
Pallets or
pallet cages
with RFID

5.4 Conclusion: both technologies complement each other
At the end of the assembly line the finished product receives its individual
identification via direct marking with a Data Matrix Code and
the RFID data are transferred to the Production Planning System. This
also ensures unique product identification any time after delivery as
well as its allocation to the production data.
Apart from the technology selection, the selection of the right provider
is also significant. The emphasis on an extensive technology and
automation competence should be especially coupled with objective
advice. Further important criteria are an extensive product portfolio
that contains both technologies and is able to be easily integrated at
the automation and IT levels, as well as long-term and extensive experience
in the realization of projects.
81

6 Standardization
Gerd Elbinger
Standardization is regarded as an important aid for thinning out the
jungle of the various RFID systems and identification processes. Although
the technologies have been applied on a daily basis for years
now, RFID in particular has been regarded as the domain for creative
radio specialists developing individual solutions for a long time.
6.1 Why is standardization important?
The application of RFID has always required the observation of certain
rules. In Germany, one referred to the postal regulation “NömL”
(Nicht-öffentlicher mobiler Landfunk = dedicated use of), as this enabled
the formal legal utilization of RFID systems. The introduction of
CE marking for industrial products in Europe required a binding declaration
of conformity as confirmation for adherence to the relevant
standards and regulations. This created clarity regarding the approval
regulations: the specifications of the ETSI (European Telecommunications
Standards Institute) as applied for RFID. The first standards
were created for RFID systems for identification in close-up ranges at
13.56 MHz (ISO/IEC 14443).
The benefit of cross-corporate standards was also soon recognized for
goods logistics and material flow chains. Uniform and continuous
processes bear considerable advantages for customers, operators,
and suppliers:
• improved customer acceptance
• increased competition through comparability
• “Second Source” purchasing is made possible and reduces
dependence
• investment security for customers and manufacturers
• open systems enable global application
82

• continuity along the entire supply chain
• realistic prices due to a broader range
• concentration on a few basic technologies
6.2 Standardization basics for RFID
• strengthening of your position towards the regulation authorities
As long as the application of RFID systems is limited to one area, such
as a production plant with closed transponder cycle, for instance,
standardization can be neglected. This is a completely different matter
when cross-corporate processes and objects or material movements
have to be automated and monitored with RFID in open supply
chains. In this case, reading devices and transponders from various
manufacturers have to cooperate easily. The generally binding rules
must be specified and maintained.
6.2 Standardization basics for RFID
Especially for RFID, the path to standardization was difficult. As technologies
in various frequency bands abounded, it was very important
to integrate and unify the existing RFID processes into one rule. This
gave rise to ISO/IEC 18000 as the definition of a standard for the air
interface between the reading device and transponder for goods
identification purposes, whereby already existing standards were
considered and integrated.
The basis for the specification of transmission frequencies is formed
by the respective nationally valid and governmentally prescribed regulation
provisions. Radio waves reach far and cross borders. Therefore,
an international harmonization of transmission frequency utilization
was inevitable. In Europe, this is achieved by the CEPT (European
Conference of Postal and Telecommunications Administrations).
The CEPT is the umbrella organization for the unification of
postal and telecommunication procedures in cooperation with the
regulating authorities of the individual member states. The use of
frequency bands and their conditions of use are developed and recommended
by the CEPT: implementation is performed by the member
states (Fig. 6.1).
The actual detailed work is carried out by ETSI (European Telecommunications
Standards Institute). ETSI is a non-profit organization
with the objective of creating, defining, and publishing uniform standards
for telecommunication in Europe. To some extent, the organi-
83

6 Standardization
zation is the executive institution for the superimposed CEPT. ETSI
provides a detailed specification of which frequency may be used with
which parameters and limit values (e.g. capacity, bandwidth, modulation,
and others). In the US, ETSI corresponds to the FCC (Federal
Communications Commission).
Field
Strength
dBμA/m
Fig. 6.1 Frequency division by CEPT for Short Range Devices – this
includes RFID – with schematically spread emission values. The ISO
standards for the RFID air interfaces have been specified according to
ISO 18000, which are suitable for the ISM frequencies.
The assignment of frequencies is the responsibility of individual
states who can sell or license usage rights (as was the case with the
assignment of the UMTS frequencies in Germany in 2005), with the
exception of only a very few, license free frequency bands, which may
be used free of charge for general industrial, scientific, or medical
purposes (ISM frequency bands: industrial, scientific, and medical).
In order not to have to pay license fees for RFID use, we took the standardization
of RFID frequency bands on ISM frequencies as a standard.
The UHF frequencies 865-868 MHz, to whom special significance is
ascribed for the use of RFID in logistics chains, were only released for
use with RFID systems in 2004.
84
Inductive near field coupling Electromagnetic shaft
Permissible disturbance level
5 1 2 5 1 2 5 1 2 5 1 2 5 1 2 5 10
10 5 Hz
100 kHz
EN 301 489 – EMC for Short Range Devices
EN 300 330 EN 300 220 EN 300 440
ISO 18000-2 ISO 18000-3
10 6 Hz
1 MHz
10 7 Hz 10 8 Hz 10 9 Hz
1 GHz
Permissible emission values according to CEPT
Europe
EN 302 208
ISO 18000-7
ISO 18000-6
ISO 18000-4
USA
Frequency
Power
Emission
mW EIRP

6.3 The central RFID standard ISO 18000
6.3 The central RFID standard ISO 18000
The attractive ISM frequency bands were increasingly allocated with
RFID standards and defined in detail based on the ETSI approval regulations.
This venture was largely implemented in 2004 and led to
ISO/IEC 18000 Part 1 to 7 – Definition of the air interface for the identification
of goods, which specified the important operation parameters
such as transmission frequency, bandwidth, modulation, and
data coding.
The following list shows an overview of the current status:
• ISO/IEC 18000-1 General section with superimposed specifications
• ISO/IEC 18000-2 Transmission frequencies below 135 kHz
• ISO/IEC 18000-3 Transmission frequency 13.56 MHz
• ISO/IEC 18000-4 Transmission frequency 2.45 GHz
• ISO/IEC 18000-5 Transmission frequency 5.8 GHz (withdrawn)
• ISO/IEC 18000-6 Transmission frequency in the UHF range
(860 to 960 MHz)
• ISO/IEC 18000-7 Transmission frequency 433 MHz
The fact that this not only created one standard but many is due to the
strongly varying physical properties of the different frequency ranges.
In addition, a natural selection process will take place in time, during
which many presumable standards will prove to be unnecessary
or obsolete. There is an evaluation of the various parts of the ISO/IEC
18000, in which ISO standards are to take place at this stage for the air
interface of RFID systems.
Although ISO/IEC 18000-2 in the frequency range up to 135 kHz –
generally called LF “low frequency” – may be old, it is by no means
outdated. In machine construction, and especially in tool identification
and identification of metal objects, this frequency provides important
advantages. Ferrite cores or ferrite foils can be used to help
control the disadvantageous influence of transmission properties
through metal. The RFID systems in this frequency band are, therefore,
extremely robust. However, this is only achieved at the price of
slow data transmission.
The frequency band 13.56 MHz – generally known as HF “high frequency”
– is the selection compromise wherever small to medium
85

6 Standardization
reading ranges are required. This frequency band is globally available
as a uniform ISM frequency. Efficient solutions can be realized
for normal identification tasks in production and along the conveyor
route. Communication is fast, secure, and, regarding field geometry,
homogeneously and clearly delineated.
The UHF band acc. to ISO/IEC 18000-6 is currently the most important
standard in the long range. Extremely cost efficient, passive transponders
(Smart Labels) and, at the same time, extremely fast data
transmission at distances over 5 meters and bulk recording ability of
several hundred tags are the properties that have awoken great hope
in this new standard. This is, however, gained with high transmission
power, inhomogeneous fields, and overshooting that makes practical
use more difficult.
Not to forget the frequency band at 2.45 GHz with a bandwidth of 82
MHz. Very small tag antennas and extremely high transmission rates
are both possible here. However, WLAN and Bluetooth installations
are competitors to RFID.
6.4 Further useful standards and guidelines
The ISO standard 18000 describes the basic technical conditions and
operation parameters for RFID systems in the respective frequency
bands. To ensure that these are adhered to as well as to safely guarantee
the interoperability of the components from different manufacturers,
corresponding testing procedures were created and published
in the form of “Technical Reports” (TR):
• ISO TR 18046 Testing methods for the review of the performance
characteristics of reading devices and transponders.
• ISO TR 18047 Testing methods for the review of conformity with
air interface standards acc. to ISO 18000-2 to 7.
The standard not only pays the required attention to the technical efficiency
but also to the health of the people, whereby the basis is
formed by ISO standards EN 50357 and EN 50364. It ensures that, despite
all the requirements regarding performance, delivery rate, and
range, humankind is protected from any danger. Assurance requires
the specification of measurement methods and limit values. The thermal
effect of electromagnetic radiation on the human body is used as
a basis. The limit values refer to the incorporated performance of the
86

6.4 Further useful standards and guidelines
respective body part, measured as an SAR unit (SAR: specific adaption
rate in W/kg). Apart from performance and distance, the transmission
frequency is also important for evaluation.
Further supplementary standards must still be mentioned in this
connection:
• ISO/IEC 14443 Proximity Smart Cards 13.56 MHz; Electronic
ticket, closed wallet, goods receipt slip, and
logistics
• ISO/IEC 15693 Vicinity Cards and Smart Labels 13.56 MHz;
incorporated in ISO 18000-3 Mode1
• ISO/IEC 15961 Communication of identified goods data; display
of data as objects, user interface (API), data protocol
to reading device, and data exchange with
the host system
• ISO/IEC 15962 Identification of goods with RFID; interpretation
of transponder data, function and data coding;
display of transponder data
• ISO/IEC 15963 Unique identification; unique manufacturer
identification for clear distinction of tags
Standards ISO/IEC 15961 and ISO/IEC 15962 specify data protocols
and the structure of data and orders for the exchange of RFID data.
They also describe the interface parameters and orders for application
and the data management from the application down to data
storage in the transponder. ISO/IEC 15963 supplements this by the
uniform marking of ISO transponders.
Although some standards refer to ISO/IEC 18000, they also define the
appropriated application standards. It is here that it applies from the
attachment to the data format and from the tag size to the technical
implementation:
• ISO/IEC 17358 Application requirements
• ISO/IEC 17363 Freight containers
• ISO/IEC 17364 Reusable transport unit
• ISO/IEC 17365 Transport unit
• ISO/IEC 17366 Product packaging
• ISO/IEC 17367 Product tagging
87

6 Standardization
There are many more RFID standards, such as animal identification,
which is one of the oldest of all.
6.5 Standardization of visual codes
Apart from RF identification, visual identification with the use of barcodes
has already existed for a long time. While the one-dimensional
1D barcode is often still designed for manual recording, the introduction
of two-dimensional visual codes also enabled more efficient automatic
recording (compare Chapter 3).
As the use of barcodes was still fixed on open, cross-corporate goods
distribution processes, standardization has always played a decisive
role. Therefore, not only the symbol sets are standardized but also
the coding via bar symbols, i.e. how a recognizable symbol is displayed.
This includes the light/dark variations as well as the bar/gap
ratio.
For 1D barcodes, which are predominantly used for simple identification
with reduced information contents, the following allocation can
only be made in part according to Table 6.1. The two-dimensional
barcode, especially the Data Matrix Code, distinguishes itself through
higher data density, simpler and more secure readability, and higher
recognition reliability. For code type ECC 200, there is standard ISO
16022, which defines the basic structure, code structure, and display:
• ISO/IEC 16022 International Symbology Specification DMC
This standard is actually based on code creation in printing technology
and builds upon quadratically arranged contrast information,
Table 6.1 Overview of barcode standards
Standard Model Code extent Applications
EN 797 EAN 8.13 10 digits Trade, cash systems
EN 797 UPC A,E 10 digits Trade, cash systems
EN 799 Code 128 128 symbols (ASCII) Industry, product identification
EN 799 UCC/EAN 128 (extension
of EN 799)
35 symbols/characters Trade, Industry
EN 800 Code 39 43 symbols
(alphanumerical)
Production, material flow
EN 801 2/5 Interleaved 10 digits Pharmaceutical products,
transport technology
88

6.6 Standardization through EPCglobal and GS1
which is applied in lines and columns. The following standards are
also available for more detailed specification:
• ISO/IEC 15415 2D Print Quality
• ISO/IEC 15418 Symbol Data Format Semantics
• ISO/IEC 15434 Symbol Data Format Syntax
In this case, ISO 15415 is of particular significance, describing the criteria
for printing quality. It ensures that a code is reliably recognizable.
A further characteristic of the Data Matrix Code ECC 200 is based on
punctiform coding points, or so-called “dots”. This characteristic is
used wherever the code is not applied with printing technology but
rather with needle embossing, drilling, or laser engraving directly on
the identifiable object (Direct Part Marking, DPM). Unfortunately ISO
15415, designed for printed DMC, can only be used in a limited manner.
AIM, therefore, defined an additional DPM quality guideline for
round coding points, which also formulates the lighting requirements.
Due to its high data volume, the Data Matrix Code is also suitable for
goods’ identification with the Electronic Product Code (EPC). Therefore,
an extremely cost efficient alternative to RFID technology is
available for the EPCglobal data strategy.
6.6 Standardization through EPCglobal and GS1
Not only is the physical recording of goods identification significant
for the utilization of automatic identification in the global goods flow,
but also the local assignment and interpretation of data contents. Organizations
such as EAN (European Article Number) and UCC (Uniform
Code Council) attempted to uniformly specify the data contents
of barcodes and to maintain the number bands. The commercial EAN
codes are an excellent example, as they enable unique article and
manufacturer allocation with only a few bytes.
The unification and continuous goods’ identification are, therefore, a
fundamental requirement for the functional merchandize management
processes and steering of commodity flows. This task is currently
internationally realized by the GS1 organization. It was created
by the fusion of the European EAN International and American UCC,
89

6 Standardization
whereby, not only the barcode was adopted for goods’ identification
purposes, but also the RFID technology with the specifications from
EPCglobal.
The GS1 and its national associations regard themselves as a competence
and service center for cross-corporate business processes. This
is achieved by the uniformity of goods’ identification and the exchange
of associated information. To ensure this service, the GS1 associations
globally allocate and maintain number bands for the
unique identification of goods and packaging units. The important
basic principle here is that only a superimposed definition, the allocation
and maintenance of globally valid code structures, and code
number bands could ensure the goods’ supply chains and the tracking
of goods. Because only the uniqueness of the identifying code enables
the correct access to the product data in the global network of
goods identification.
Of course the activities of GS1 go hand in hand with standardization
efforts. The important basic elements here are:
• Barcode (EAN)
• RFID (EPCglobal)
• Electronic data exchange/E-Business (EDI).
6.7 Conclusion and forecast
Standardization and specification ensure the openness of process
and supply chains as well as the interoperability of tools. Telecommunication
regulations are specifications to protect other frequency users,
especially private and public services such as radio, TV, and mobile
phones. The standardization of RFID ensures that transponders,
reading devices, and IT components from different manufacturers in
open distribution processes can be applied together.
However, there is a discrepancy between diversification and standardization,
and between innovation and regulation. Every manufacturer
will attempt to develop competitive advantages through more
performance or innovative technology. Diversification and innovation
drive technology towards new efficiency, thereby increasing the
respective efficiency of applications. To achieve this, one needs as
much standardization as necessary and as much diversification as
possible.
90

6.7 Conclusion and forecast
However, the standardization process also requires vigilance. Providers
may be tempted to use a one-sided formulation of standards in
order to protect their proprietary technology or to market patent licenses.
This reverses the sense of standardization as this would promote
distortion of the competition.
Despite these qualms, the recording and control of increasingly enormous
global commodity flows is only possible with standardization.
As RFID is the technology that will achieve all of this in an economically
justifiable form, it must generally recognize the valid specifications
and standards.
91

Part 2
The Practical Application
of RFID and Auto ID

7 Process design and profitability
Peter Segeroth
“RFID?! Is that still worth our while?” This, or a similar, question could
summarize the reaction of many decision makers regarding the introduction
of RFID technology into their operative processes. This
statement is confirmed in survey results; the doubts in the economic
success of RFID predominate. The decision-maker level, therefore,
generally doubts the profitability of RFID applications. Apart from
further factors, the high costs of RFID transponders are listed as a
main argument. Although these are said to be on a steep descent – as
can be read in publications on the topic – the application would only
be worthwhile from 0.05 euros per transponder.
7.1 The fear of bad investment
The fate of spotlighting the introduction of new information technologies
primarily as cost causers and less as beneficial technology does
not only concern RFID technology. There is a relatively low acceptance
for new technology due to the frequent lack of transparency of the
qualitative and especially quantitative benefits . In short: the lack of a
business case.
An economic feasibility study (Business Case) serves the company for
decision making and investment planning purposes. It concerns the
answer to the question: “What’s left on the line for me and how do I
avoid bad investment?” Before an investment, e.g. in RFID technology,
the company has to first analyze its objectives and problems, conduct
Fig. 7.1 The path to the RFID Business Case
94
Target
analysis
Problem
analysis
Looking for
alternatives
Investment
appraisal

7.2 It all starts with visions and objectives
the actual investment appraisal, and use the results to make its respective
decision (Fig. 7.1).
Keeping to these steps will provide the company with the required
transparency before the introduction of RFID. Speculations on high
prices for RFID transponders and on a reduced benefit are quantified
and determined. The company receives a well-founded basis for its
investment decision.
7.2 It all starts with visions and objectives
The basis for the successful implementation of RFID projects is the
existence of corporate vision and objectives. Usually, these were already
defined by the companies in a strategic planning process or can
be defined with external help – before the introduction of RFID technology.
The definition process depends on the company’s current situation.
Regarding the introduction of RFID technology, which refers
to a concrete application area, it would be advisable to develop the
relevant and critical business fields and business processes within
the scope of the target analysis and to concentrate on these. In other
words, the introduction of RFID could initially be limited to production,
for example. In this case, further business fields or processes
remain unconsidered.
This first definition phase usually proceeds with the following steps:
1. Creation of a profile of the current as-is situation
2. Definition of the corporate vision
3. Specification of performance objectives
4. Specification of business process objectives
5. Identification of the vision’s effects on the company
6. Prioritization of business fields and business processes
The following questions are answered during the creation of the profile
on the current as-is situation and the definition of the corporate
vision:
• Is today’s business also tomorrow’s business?
• Can changes in customer requirements be expected?
• What do we have to do today in order to be successful tomorrow?
95

7 Process design and profitability
• How can today’s market position be extended and safeguarded?
• Do we utilize our market position or are our profit reserves
sitting idle?
• Where does the company want to be in 5 years? (analysis and
reality check of long-term planning)
The specification of business process and performance objectives
entails topics such as:
• Improvement of business process performance
• Utilization of the economical and/or functional advantages of
new technologies
• Utilization of systems that are optimally aligned to their specific
application purpose
• Utilization of systems with high reliability.
A final task during the prioritization of business fields (primary business
processes) is the analysis and definition of those business fields
(subdivisions) that are particularly predestined for the application of
RFID.
This top-down approach shows that the challenges for the company
and the resulting measures are the basis of a company change. The
application of the RFID technology is linked to the analysis results of
the individual business fields.
7.3 How does the company work?
For RFID projects, we recommend a top-down (from rough to detail)
approach to the Actual Process Analysis. During a first work meeting,
which is to be moderated by decision makers and practitioners from
the various business fields, the business processes are developed in a
clear form – e.g. per business field. The result (Fig. 7.2) provides the
participants an overview of the input, output, and process participants
and enables the initial planning of the RFID scenario within the
analyzed business process.
The next step includes the detailing of business processes with a process
sequence performance model (Table 7.1). This is created in consideration
of the time, costs, quality, and other measured quantities
(e.g. capital employed, the number of required employees). There-
96

Organi -
zation
Functions
Input
Output
Appli -
cation
Management V
Foreman
7.3 How does the company work?
Fig. 7.2 Exemplary actual display of the business process “parts production”
fore, the current objectives and those for future business process performance
(target concept) are compared.
Future business process performance can either:
• contain values stemming from the best practical experience (Best
Practice of, for example, competitors or business partners) or
• contain values based on the improvement of business processes
through the use of RFID technology.
The input from the business process Actual Analysis and the business
process performance model represent the basis for the draft of an improved
business process, in which RFID technology has already been
taken into consideration.
Table 7.1 Exemplary display of process sequence performance models
Event Result Process
Thread
Customer
order
merchandise
Customer
returns
merchandise
Ship ticket
released to
warehouse
Worker
Primary
product
RFID
SAP
Database
Appl . A
App. B
D
M
Equipping
� Unfinished
primary
product
� Machine
equipped
Ship ticket
released to
warehouse
Refund
Authorization
sent to billing
Merchandise
shipped to
customer
Process analysis production
V
D
M
Preparation Attachment
of part A
� Production
data
� Production
start
Process
customer
order
Process
customer
return
Ship
customer
order
V
D
M
� Part A
� Operating
materials
Time Cost Quality Capital
now future now future current future current future
4
days
10
days
2
days
� Part A
� Part B
.25
days
$15/
order
.5 day $50/
order
.25
days
V
D
M
Attachment
of part B
� Part B
$10/
order
Intermediate
control
$15/
order
$5/
order
$5/
order
V
D
M
� Control
process
� Part C
� Quality
tested part
5 %
returns
.1 %
error
5 %
returns
V
D
M
Completion
� Pre-fab
part
.01 %
returns
.1 %
error
Quality
control
$1500/
clerk
50 days of
.01 %
inventory
returns
($50M)
V
D
M
� Pre-fab part
� Control
process
� Control
results
Pre-fab part
$4000/
clerk
– –
30 days of
inventory
($30M)
97

7 Process design and profitability
7.4 The business case for RFID
7.4.1 The concept of the calculation of profitability
Investments in new technologies are the prerequisite for the technical
progress of one’s own products as well as for increased productivity
and the ability to compete. However, they tie up capital in the longterm.
The decision to introduce RFID in the operational process of a
company is, therefore, dependent on the level of resulting capital returns
to be expected as a result of the investment. The benefits of an
investment must, therefore, outweigh its costs. However, reasons also
exist that speak for the investment even if it does not have a reasonable
chance (costs > benefit) (for example, the necessity as a supplier
to deliver goods with RFID transponders).
The profitability of an investment is calculated in a business case, that
is to say, an assessment of the figures associated with business measures
as defined in strategic planning. The additional success affected
by the investment (as opposed to business success without this investment)
is assessed here. The result of this business case is a primary
factor for management’s decision-making.
The most important merits of a business case are:
• Increased decision reliability
• Creation of the scope for decision-making: the business case
also shows alternatives.
• Creation of an overview and transparency: all relevant information
is provided.
• Creation of commitment, clarity, understanding, and comparability:
performance figures whose derivation and comparison
becomes apparent.
• Creation of a basis for the later assessment of the success of the
project and support of project controlling.
A business case is always based on assumptions: costs and benefits
are estimated, and the future development of the company, type, and
scope of use of the investment are anticipated. A residual risk of impreciseness
also remains, even after preparing a detailed, conservatively
calculated business case. Nonetheless, it provides the best, and
indispensable, decision basis for an investment.
98

7.4.2 Procedure for RFID projects
7.4 The business case for RFID
The results of the target and problem analysis provide a basis for answering
the question as to what contribution the introduction of RFID
technology will provide to the achievement of the company’s strategic
objectives.
The preparation of a business case is divided into three major phases:
derivation of costs, derivation of benefits, and implementation of the
calculation of profitability. The determination of the values (costs and
benefits) is always “risky” as it uses plan values as a total of assumptions.
Nonetheless, the derived values are decisive for the calculation
of profitability. Therefore, it is necessary to provide robust, reasoned
figures; all the values and their derivation must be documented in
writing.
Derivation of the costs
The costs of RFID projects are often limited to the RFID transponders.
The transponder price is relevant for projects with an open cycle. This
is different for projects where the transponders are re-used: the costs
for transponders here are far less significant due to the frequent circulation.
In addition to the transponder costs, all further costs must
naturally be fully derived. For this purpose, it is useful to systematically
record the costs in the categories provided (Table 7.2). We recommend
documenting all the derived costs in a table. Depending on
the scope of the project, it may make sense to go into further detail
with sub-categories.
Table 7.2 Categories for deriving the costs
External costs
(for external partners)
• Software costs
• Hardware costs
• Services costs
Internal costs
(within the company)
Investment costs
(project phase)
• RFID middleware
• RFID transponders
• RFID readers and antennas
• Server and PC
• Consultancy and project costs
• Implementation
• Miscellaneous
• Project employee costs
• Travel costs
• Occupancy costs
• Hardware and software
• Miscellaneous
Operational costs
(operation phase)
• Software, updates
• Replacement investments
(RFID hardware, IT)
• Service
• Maintenance
• Miscellaneous
• Training
• Application support
• Miscellaneous
99

7 Process design and profitability
The result that was worked out serves primarily as input for the profitability
calculation and is also used for project planning and budgeting.
Derivation of the benefit
The major benefit of using RFID is to increase productivity as well as
cost reduction by process cost reduction via process optimization and
rationalization effects. In order to simplify recording and quantification
of the full benefit of an investment, benefit categories were created
and specified in a second step (Fig. 7.3). Especially the recording
of the benefits by increased productivity takes place based on analyzed
business processes. Therefore, it is necessary to analyze every
business process as a process sequence performance model and to
determine and document the potentials. The result of the benefit observation
flows into the profitability calculation, in turn also providing
an initial estimate regarding the benefit potentials of the investment.
Benefit categories
Benefit
Fig. 7.3 Derivation of benefit
Profitability calculation
The profitability calculation compares the results of the derivation of
the costs and benefits and determines the profitability by using calculation
processes. In practice, static or dynamic processes are applied;
selection is made depending on the framework conditions of the profitability
calculation. The static processes relate to time-independent
100
Higher
turnover
Increased
productivity
Lower
operating
costs
Lower
current
assets
Increased existing
turnover sources
New turnover sources
Uniform processes
Higher degree
of automation
Cost savings
Cost avoidance
Reduction of
warehouses
Reduction of claims
Quantifiability of benefits
Quantifiable
(tangible)
Direct
Indirect
Non-quantifiable
(intangible)

7.5 The RFID business case in practice
individual values and are, therefore, relatively easy and quick to use.
However, they are less precise than the dynamic process. The dynamic
processes are of advantage when regarding the profitability of an
investment over a longer period (for example five years) and more
precise due to the consideration of the reserve discounting of the
stream of incoming and outgoing payments.
7.5 The RFID business case in practice
At Amberg Equipment Plant, which is owned by Siemens AG, RFID
systems are used for the production of switching devices. A business
case was prepared to prove the profitability of the use of RFID in manufacturing
at this works and provides the following example for the
practical implementation of a profitability calculation.
By newly developing a production line, Siemens AG followed the objective
of guaranteeing the manufacturing of a wide array of product
variants while maintaining high production quality. Production is
planned to be more flexible, of a higher quality and at lower costs
(Chapter 9).
After the production processes were analyzed, RFID and barcodes
were tested as potential technologies to define basic conditions and
assumptions for the business case. Analysis and comparison of the
benefits of both technologies provided positive results for RFID technology,
in which the qualitative benefits of RFID outweighed the use
of barcodes. The qualitative benefit of RFID in detail:
• Increased quality
– Manufacturing dates constantly updated on the RFID
transponder
– The RFID transponders are written with information from
current QA results
– Faulty components are automatically sorted out and the error
directly eliminated
– Components are returned to the assembly process following
correction
• Increased speed
– Increased throughput speed – due to “Data on tag” no data
access (“Data on network”) is necessary and, therefore, fast data
transfer
101

7 Process design and profitability
102
– Reduction of set-up time – due to “Data on tag” (writing production
data on the transponders), the production control system is
triggered directly
• Reduction of the use of IT:
– Managing without implementing a database by using “Data on
tag”
– Focusing the employees on high system availability, timely error
correction, and concluding quality assurance
The following cost estimate was implemented to quantify the benefit.
In the business case, they were compared to the cost estimation results.
The result of the cost comparison: the costs for RFID technology
of €155,000 were some €35,000 higher than for barcode technology
(Table 7.3).
Table 7.3 Barcode and RFID costs at Amberg Factory
Item Barcode solution RFID solution
Reading devices EUR 50,000 EUR 60,000
Transponder – EUR 40,000
Software (including integration) EUR 5,000 EUR 15,000
Extra IT expenses, output devices EUR 25,000 –
Proportional project costs EUR 40,000 EUR 40,000
Total costs EUR 120,000 EUR 155,000
Due to the higher quantitative benefit provided by RFID as opposed to
barcode technology – in particular, due to the increased system production
capacity – it was possible to overcompensate the approximately
€35,000 higher investment in RFID through the consequent
resulting additional profits.
As a final step, a business case was calculated for the application of
RFID technology, whereby the results of cost assessment and quantified
benefits were included in a simple (statistic) Return-on-Investment
period rule for a period of 5 years as a calculation basis (Fig.
7.4). The result: the investment in RFID technology had already amortized
in the second year of operation.

in EUROS
150,000
100,000
50,000
0
-50,000
-100,000
-150,000
-200,000
-155,000
-70,000
7.6 Technology can inspire – but it must “fit”
12,000
95,000
Year
1 2 3
Cumulative cash flow
Fig. 7.4 The investment in RFID had already amortized in the second
year of operation
7.6 Technology can inspire – but it must “fit”
Before investing in RFID technology we recommend conducting a
Business Case. Determine all the cost and benefit categories – RFID
transponders are not the “be all, end all” in the determination of the
total investment amount. The relevance of the costs for RFID transponders
depends on the character of the application (key word: open
or closed cycle).
Technology inspires and because of that one thing may not be forgotten:
the RFID technology must be suitable for the company. This
means: the knowledge of the visions, strategies, and individual challenges
of the company is the basis for successful RFID application.
103

8 Introduction to the practical
application of RFID
Michael Schuldes
The technology is available, the application scenarios are formulated,
the economical benefit is assessed – how can a vision now become
reality?
A systematic procedure has proven its worth throughout many
projects, as shown in Fig. 8.1. This model works irrespective of concrete
application and sector. The first steps – the process analysis, formulation
of the target concept, and economic feasibility study – were
already discussed in Chapter 7. Now, it is a matter of turning the analytical
results into reality.
RFID
quick scan
Fig. 8.1 The procedure for RFID introduction
The implementation of a target concept under real conditions can involve
a few surprises: during the concept, did anyone remember that
the gate for receiving goods consists of metal or that the reinforced
concrete in the ground may affect the reading result or that reading
results can be distorted by reflections, e.g. caused by transport vehicles
or containers in the vicinity? However, standard solution ele-
104
RFID
assessment
Profitability
analysis
Feasibility
test
Solution
design
Cost-benefit analysis, ROI
Process identification with RFID benefit potential
Roll-out
Realization, pilot operation
Verification of RFID technology in a realistic environment
Process analysis (ACTUAL/TARGET) and RFID solution concept
Preparation of wide
scale application

8.1 Feasibility test / Field test
ments have meanwhile been developed and tested by the manufacturers
of RFID systems. Here, the possible combinations of RFID transponders
and reading devices for certain applications are first measured,
tested, and tried in practical applications under laboratory
conditions. However, in special cases, for example under critical physical
circumstances, the wealth of experience is not sufficient. An “outof-the-box”
RFID solution does not always exist. That is why the findings
that were obtained during the course of the project must be incorporated
into the subsequent steps of the project.
8.1 Feasibility test / Field test
The risk of the introduction of RFID technology can be controlled by
specifically limiting its application to selected products, certain marking
levels, and predetermined processes. A feasibility test or field test
can also be regarded as a simulation in the broadest sense. In order to
prevent negative surprises at a very early stage, a field or feasibility
test, based on the target concept, should be the next step in the successful
implementation of an RFID project. The RFID feasibility test/
field test serves to check and adjust the technical feasibility of a previously
created RFID concept in the customer’s real environment.
8.1.1 Objectives of a feasibility test/field test
If the target concept did not include a specification of the technology
or the usable hardware based on technical and/or economic aspects,
the respective decisions will be made no later than during the feasibility
test. To ensure reliable statements regarding the application of
the selected technology, RFID testing with own commodities and in
own environments cannot be foregone. The test results are incorporated
into the usable technology and RFID components and form the
basis of the later design of the solution.
A feasibility test can be performed before a profitability calculation,
as otherwise the creation of a Return-on-Invest (ROI) may not make
sense for a solution that is technically unrealizable at a later stage.
While a feasibility test only checks whether the RFID technology can
be generally applied in the planned environment, the field test also
checks the permanent environmental effect on the planned technology.
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8 Introduction to the practical application of RFID
8.1.2 Performing the tests
A test concept accurately specifies the scope, period, objectives, and
expected results. When creating this concept together with the customer,
observe the definition of assessable test objectives. As existing
IT systems should not be interfered with at this stage, the respective
software is provided based on which test can be evaluated.
Fig. 8.2 Extensive tests show whether the metal barrels that are loaded on a
pallet influence the readability of the pallet transponder, for example.
Depending on the RFID system used, environmental influences can
have the most varied effects. The result of the tests is the optimum
attachment and alignment of the transponders to the objects as well
as the optimum installation of the antennas. The optimum attachment
point (sweet spot) is found by attaching various transponders to
different parts of the respective object (Fig. 8.2). Various attachment
options (screwing, gluing, welding, etc.), the size of the transponder,
and suitable installation points are included in the evaluation of the
test to the same extent as the applicability by employees and the influences
on the existing processes.
Some of the most important aspects in creating a feasibility or field
test are:
• Each RFID location planned in the target concept must be tested
individually. If required, alternative locations may have to be considered.
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8.1 Feasibility test / Field test
• Legal and internal security regulations must be complied with.
• When reviewing the locations, for example, ensure that all the
already existing machinery that may emit electromagnetic interferences
are switched on.
• The determination of the exact tag position on the identifiable
objects is a trial and error exercise. Every transponder position on
the object and every possible angle between the transponder and
reading device must be tested.
• Every possible packaging material must be tested, just as every
object (product) that may be inside the packaging. The contained
products may have an influence on the reading quality, e.g. coffee
packaging consisting of aluminum or cell phones with metal casing.
• Transponders are often too large to be attached to small objects, or
the objects do not feature a suitable attachment point. Then, check
whether alternative attachment options are available and practical
(e.g. a tag with a transponder).
Verification of reading speed at production belts is easy to determine
by increasing or decreasing the belt speed. Testing when transport
passes by reading devices at varying speeds (e.g. forklift in shipping
and receiving goods) at varying distances is more difficult. We recommend
a testing series over longer periods of time.
8.1.3 Results of the feasibility/field test
Probably the most important result of a feasibility or field test is the
answer to the question of whether the application of the technology
in the customer specific environment is executable as planned from a
technical and economic point of view. The test report provides information
on problems such as:
• Which RFID technology and which hardware components are best
suited to comply with the customer requirements contained in the
target concept?
• Where are the measurement points and what data flows can be
expected?
• What is the optimum attachment and alignment of the transponders
to the objects as well as the optimum installation of
the readers?
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8 Introduction to the practical application of RFID
• Which writing/reading distances can be reached?
• Does recording take place automatically or via mobile handheld
devices?
• What are the effects of RFID technology on the existing processes
and habits?
As the problems of the business processes are also analyzed in the
RFID field trials, mutually active cooperation between the customer
and RFID service provider is indispensable.
8.2 Solution design and pilot operation
The solution design phase deals with the concept and development of
an extensive solution for the customer. In other words, it concerns the
answer to the question of how the requirements as specified by the
customer can be put into practice. Unlike the feasibility or field test,
which basically concentrates on the selection of suitable hardware
and its locations or the attachment on the objects, the solution design
particularly involves the design of software integration. During this
phase it is essential to integrate the process rules into the RFID middleware,
to filter and select the data according to the workflow, and to
transfer them in a targeted manner.
Depending on the tasks, extensive pilot operation may also be expedient
in order to review the feasibility of the RFID concept by incorporating
the knowledge from the feasibility/field test into the customer’s
real environment during continuous application. This pilot implementation
requires the installation of the complete system into
the real working environment. Unlike the final roll-out, operation
and utilization of the system are reduced to manageable parts, and –
for security reasons – no complete integration into the existing IT systems
will take place (parallel operation). This will also provide the
first conclusions on the load behavior and the integration of the new
mass data as well as the effects on process control without unduly interrupting
the operational process. The testable systems are more
manageable during occurring problems, in which the detection of errors
is simplified.
The introduction of RFID technology requires the solving of a multitude
of necessary migrations. Important prerequisites are, among
others:
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• The technology must be robust and available.
8.2 Solution design and pilot operation
• The allocation of costs and benefits must be clear.
• System integration and data synchronization must have been
fully completed.
A 100 % reading rate is difficult to achieve in some applications with
the current state-of-the-art. If the recording accuracy in, for example,
the clothing industry is very high, the reading quality in other logistics
departments will strongly depend on the environment and the
identifiable object. This has to do with the fundamental laws of physics,
if a transponder is completely shielded by metal, for example. The
design of an RFID application requires the development of reliable solutions
or reversion to the provider’s wealth of experience. As a complete
RFID solution often consists of components from different partners
(software, hardware, installation, and support), the functioning
project and partner management from this project phase onwards is
also of great significance.
The expense of conducting possible pilot operation strongly depends
on the complexity and number of the respective processes. Simpler
applications often no longer require a pilot phase due to the use of
ready made components. In the environment of, for example, a complex
spare part management process with many edge processes (warranty
processes, repair cycles, scrapping, etc.), pilot operation could
take several weeks or even months.
8.2.1 Objectives of pilot operation
During the pilot phase, the achievement of the required accuracy,
data flow, and performance in the real environment are tested and
recorded over a longer period of time. Evaluation of the results then
provides a useful troubleshooting tool and serves the employees as a
document for knowledge exchange purposes. A well prepared pilot
phase provides the option of assessing the subsequent system behavior
during occurring errors as well as defining and taking suitable
subsequent measures.
Concepts for suitable software can already be developed within the
assessment, but application only takes place during pilot operation. It
is here that the interfaces to the superimposed IT systems can also be
tested. The recorded data are checked and evaluated with simple aids,
e.g. Excel, ASCII files). Then, further suppliers/customers or products
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8 Introduction to the practical application of RFID
are incorporated in increments. This makes it easy to determine any
errors that occur for which products, customers, or suppliers. Close
cooperation between the involved associations can significantly expedite
the solution to a problem. The load tests uncover any deficiency
in the business processes and further system anomalies. This can
help determine the volume of data up to which the system functions
soundly. Cooperation with the involved partners must be ensured for
compatibility reasons.
To ensure the secure and uninterrupted process of daily work during
subsequent roll-out, create emergency plans in case of error, prepare
work arounds, and define the alarm events.
8.2.2 Results of pilot operation
The solution design’s task is not only the technical solution concept of
the RFID system but also the consideration to the respective system
software’s performance requirements. What is the use of the recording
systems providing the data in real-time if the software is overburdened
with processing? The weak points could be data complexity, financial
influences, or a different understanding of how data exchange
with business partners should take place. A complete test considers
the examination of the correct transponder attachment, the
communication between the transponder reader and the connected
system, the data collection in the RFID system, and the data check.
The exchanged data going back and forth between the participating
systems, data exchange with auxiliary systems, and with trading partners
must also be reviewed. Furthermore, the work flows between
these systems should follow the entire process, from the start onwards
to the consumption of the data or product. The interfaces must
permit seamless integration between all the systems. The data flow
must follow all the processes, and the corresponding data must correspond
in every phase.
8.3 Roll-out
If the transparency regarding the economic benefit and effects on the
processes are established, the tests are successfully completed and if
a decision on the application of an area-wide RFID solution has been
made, then the final step takes the form of the roll-out. The following
partial steps must be taken with all the partners involved:
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• System integration for the existing IT and customer process
landscape
• Process Reengineering
8.3 Roll-out
• If required, involvement of further public entities or production/
logistics units (global roll-out)
• Development of a maintenance concept and support
• Employee training
A key element in every implementation is the integration of existing
systems as well as existing ERP or WMS installations. Let us not forget
that a further level is added to the system administration with regard
to data management, hardware allocation, utilization of the RFID
middleware, and the infrastructure behind the new level (e.g. new
servers, which need to be connected to the domain). Integration requires
new interfaces that have to cooperate with all the systems. At
this point it becomes clear whether all the marginal conditions in the
planning, design, and selection have been thoroughly checked and
considered.
As from a certain capacity, especially during the observation of the
entire supply chain, a final consideration should be given to whether
the operation of the complete RFID system can also be outsourced to
a service provider.
What also has to be considered
A final word on a topic that is often forgotten during the introduction
of a new technology or new processes: the employees. The employees
need to be promptly, plausibly, and positively informed about required
organizational changes due to adjusted or new processes. The
clarification of benefits and possible hazards should be conducted
openly. The installed processes must be lived according to the specified
marginal conditions, as the expected ROI may otherwise not be
realized. An important part of the introduction strategy is the creation
of a data protection guideline between all involved partners.
Experience shows that the installation of an RFID system also requires
extensive adjustment work and often a substantial amount of explanatory
support. Larger investments are required in most cases, whether
for technology or the required infrastructure (software, hardware,
and others). RFID will not become a product that the end customer
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8 Introduction to the practical application of RFID
can buy over the counter, and not even in the near future. RFID introduction
is too costly for that and also too demanding due to the “contact”
with critical business processes.
112

Part 3
Current Applications –
from the Factory
to the Hospital

9 Manufacturing control
Markus Weinlaender
“You can have it in any color as long as it’s black”: this quotation, ascribed
to the US entrepreneur Henry Ford on his famous “Model T”,
marks an important element of industrial production. The highest
possible quantity of preferably similar parts was thought to be the
key to cost optimization and the achievement of degression effects. At
Ford, the unification of production was able to accelerate manufacture:
additional paint lines or changeover times were not required
and the color black dried the fastest.
9.1 The dilemma of modern competition
But times have changed. Customers of valuable products are no longer
satisfied with a “one size fits all” version. In fact, there are a variety
of versions from various manufacturers on the market. Providers
must bring various versions of a product to the market themselves to
address all the different customer groups. Car salespeople, for example,
can select from a multitude of models; even a change in manufacturer
is easily possible with the comparable technical maturity of the
products. Market behavior has changed altogether: from a seller’s
market – where the supplier dominated the market action and asserted
their interests – to a buyer’s market, where the consumer is at the
center of all the effort.
At the same time, international competition has become dramatically
more intense. Due to modern communication media such as the Internet,
the market’s transparency has increased significantly: customers
can gather extensive information on the services and prices of
suppliers. The disappearance of trade barriers has promoted the export
of goods. Finally, the Asian and Eastern European states have
also caught up technologically: where only simple goods could once
be purchased in these areas, today’s products are on par with those
from Western industrial nations or even superior in some cases. The
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9.1 The dilemma of modern competition
triumphal procession of the Japanese electronics industry is only one
example that is also currently being repeated in China. This creates a
dual challenge for Western companies: having to react quickly and
flexibly to ever stronger differentiating customer demands while
maintaining or increasing competitiveness with regard to their own
production costs.
A possible solution approach is individualized serial products (mass
customization). This entails products that on the one hand can be
economically manufactured in industrial production (i.e. are not
manufactory products) but which, on the other hand, provide sufficient
variety options for the fulfillment of customer demands. If consistently
pursued, a supply such as this changes a company’s entire
value chain, from development to production to sales and marketing
(Fig. 9.1). Therefore, the conception of new products requires the
provision of sufficient configuration options involving basic modules
or exchangeable production steps. Sales and Marketing must also be
provided with the respective catalog and ordering systems. This concept
denotes a special challenge for production in particular, as the
classic “pre”-fabrication of serial and mass goods before the actual
order is hardly imaginable for individual products.
Offers such as these can be found in many sectors. The automotive
industry plays a precursory role: there is hardly a supplier who does
not provide their customers with a “configurator” on the Internet for
individual adjustment to one’s dream car. It is not profitable for manufacturers
to produce all the possible versions in advance – rather the
vehicles are only produced after the receipt of the order (made-to-or-
Development Sales Production Logistics
� Modularization
� Configuration
options
� Customized
product structures
� Communication
of the configuration
options
� Configurators,
interactive catalogs
� Relationship
management
� Adaptive manufacturing
processes
� A high degree of
flexibility
� Command of the
complexity
� Flexible secondary
processes, e.g.
materials flow,
purchasing
� Individual delivery
planning and
implementation
� Information systems
for transparent
logistics chains
Fig. 9.1
Special requirements for the value chain for configurable serial products
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9 Manufacturing control
der). The highlight: some manufacturers provide their customers
with the option of changing fitting details just before the respective
production step. This is made possible by efficient IT systems.
The situation is similar with renowned computer manufacturers. On
the one hand, they start a standard series that covers the mass requirements
and, on the other hand, there are sufficient users who
want to tailor their device to their own individual requirements themselves.
This is another case where preproduction is not profitable due
to the extensive version options and enormous capital commitment.
For the IT sector, this denotes a further risk: if rarely demanded variations
were stocked, this could cause price pressure on unsold devices
due to rapid technical progress to where these would only be sellable
at a loss.
Other respective examples are rare in other sectors, such as the food
industry. A few variations in taste and packaging size are typical for
this industry’s range. However, individualized serial products are
also on the rise. A prominent example is the young company
“mymuesli.com”, located in Passau, Germany (Fig. 9.2). Customers
can order their personal muesli mix on the startup’s website: according
to the manufacturer’s information, more than 70 selectable ingredients
in any random mixture lead to more than 566 quadrillion
product variations. Customers can reorder and exchange their recipes
among each other with the use of “Mix-ID”, a unique identifica-
Fig. 9.2 MyMuesli.com produces around 566 quadrillion product variations
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9.2 The production of individualized serial products
tion for every mixture. In comparison: a typical supermarket will
barely stock 20 different muesli varieties.
9.2 The production of individualized serial products
If a company dares to move from standardized to individualized serial
products, it is faced with an extensive transformation process,
which entails all the departments of the company. The individualization
of the range will increase the complexity of all the processes considerably;
at the same time, the cost position and delivery options
(time, location) must remain competitive.
This transformation process concerns, in particular, development
and production. The development division, which is hitherto aligned
with as cost efficient producibility as possible while adhering to demanded
target prices and quality, must now also achieve the objective
of individuality. For cost and time reasons, the option of the complete
development of all orderable variations can be discarded. Development
must rather revert to standardized modules, which enable
adaption through parameterization or a different combination of
modules. Certain adaptation steps are then only performed in production,
that is, after an order receipt.
There are many measures in production that enable the cost efficient
manufacture of individualized serial products. Suitable manufacturing
technologies and machinery can be applied, which enable adaptation
to every single workpiece. One example are CNC supported processing
machines, which enable the fully automatic processing of individual
pieces if accordingly integrated into the IT control systems
and interlinked in the production flow.
A second option is provided by the order related assembly of individual
products. The assembly process, for example of a customer specifically
manufactured computer, is basically similar to all other computers.
However, the installation of various components creates very
special products, depending on the order (e.g. varying memory expansion,
graphics cards, or preinstalled software packages). Order related
material flow control is also required here, which takes the individually
required product to the assembly section at the right time.
However, the reliable operation of such a factory, an assembly with a
reduced susceptibility to failure, requires new control concepts. Such
an operation no longer involves rigid machinery but rather a living
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9 Manufacturing control
organism. Meanwhile, the realization is that the decentralization of
planning and control in turn shows that a significant strategy is taking
hold. Decentralization means that decisions are made on as low
an automation hierarchy level as possible, i.e. “on site”. Ideally the
workpiece will bring all the information along to its processing without
requiring central units for individual control purposes. Finally,
this concept leads to autonomous manufacturing cells, which can
perform a certain production step independent from other units and
optimize themselves with their ability to learn.
9.3 Autonomous production systems with Auto ID
The use of flexible manufacturing stations undeniably requires the
unique identification of the respective workpiece: after all, the machine
must perform a program that is individualized for every workpiece.
The theoretical possibility of using a computer to predict each
good’s movement is hardly practically realizable: the risk of possible
deviations is too high, and the data technical effort too complex.
Various identification systems are being applied in practice. In the
simplest of cases, the product is given a process slip to take along,
which contains a record of the manufacturing program. The employees
will then set the machinery to the respective product. Obviously
this method is not particularly mature. Apart from time consuming
processing, a further problem is the high error risk. Incorrect input
or wrong machine settings can lead to considerable costs and delays.
Automatic identification systems should, therefore, be preferred. Although
a process slip can also be used in this case, the product will
only be identified via the barcode. The relevant data are called up
from a database based on the read identification number. The advantage
is in the prevention of input errors. A production order is created
in the database at the production start. The identification number is
printed on the process slip, which takes the product through production.
The identification number is read out at every station and the
machine set according to the specifications in the IT systems. However,
this organization is also not efficient as the process slips are recorded
manually, although this does seem completely sufficient for
some goods that still require a large number of manual process steps,
for example the assembly of personal computers, which cannot be
fully automated.
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9.3 Autonomous production systems with Auto ID
If the automated processing of the product is feasible, its identification
should also take place automatically. 2D codes and the respective
camera systems should be selected. In contrast to barcodes, the 2D
codes can also be attached to the workpiece itself, for example with a
laser (Chapter 3). This not only permits identification in production
but also during the entire life cycle – an important element for product
tracking (Chapter 12). This is realized by connecting the code
readers directly to the programmable logic controllers, which monitor
the production flow (compare Fig. 9.3). If a workpiece is routed via
suitable transport technology, the reader will initially recognize the
coding and provides the PLC with the read number. This in turn sends
the number of the IT system in the background and receives the information
on the manufacturing program of this workpiece. Then, it
sends a response to the database to note the changed workpiece status.
Manual processing of the workpiece is also possible, for example
with a random detailed inspection. In this case a handheld reading
device can be used to record the 2D code at the testing station and to
call up a test program.
Production control
(MES)
Automation
(Simatic S7)
Sensor level
(code reader)
Physical
processing
Cell A Cell B
Workpieces with 2D coding
Production
flow
Fig. 9.3 Order control with 2D code identification. Every workpiece is
identified with a 2D code; the processing program is queried at every line
at the production control level.
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9 Manufacturing control
Fig. 9.4 Under rough environmental conditions (e.g. car painting),
RFID provides considerable advantages to visual systems (Photo: Duerr AG)
RFID systems could replace 2D codes as an alternative. The radio technology
is insensitive to dirt of any kind. This makes it interesting for
applications for which rough environmental conditions are unavoidable.
One example would be paint robots and dips as they are applied
in automobile manufacture (Fig. 9.4). If the chassis is treated with atomized
spray or color dipped, visual codes can no longer be recognized.
An RFID transponder on the other hand will also function if
they are covered in paint. The respective casing can provide heat resistant
packaging for the transponders, which also allows their use in
baking ovens after painting. In this way the transponder can accompany
the chassis nearly through the entire production process.
Observation of the required IT architecture, however, displays a problem
in this concept. Every query of the identity number requires access
to the central database system. This requires a high degree of
availability with respective complexity. Finally, a large number of accesses
per second must be performed at maximum speed. The time
period required for the provision of data passes unused for the actual
production step. The logical development, therefore, is in decentralizing
the data in order to achieve autonomous stations from a data
technical point of view.
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9.4 Decentralizing production data with RFID
9.4 Decentralizing production data with RFID
Apart from insensitivity to environmental influence, a second advantage
of RFID as opposed to visual codes is the possibility of rewriting
the data carriers: once printed, a 2D code cannot be changed. Together
with the high memory capacity of RFID transponders (up to 32
Kbytes), remote automation architectures can be realized, which
clearly reduce the effort for local data maintenance.
The concept (Fig. 9.5): An RFID transponder with a large memory is
attached to each workpiece (or at the workpiece carrier) and stores all
the required production data such as material list, production instructions,
testing specifications, etc. These data are queried from the
production control system at the start of a production line and programmed
on the transponder. PLC controllers at the individual manufacturing
stations read these data directly from RFID readers and
use them to control the production step. Ideally the background systems
need not be queried. After the production step is completed, the
PLC can store the status and quality data on the RFID transponder before
it is transported to the next station with the workpiece.
Such a concept provides considerable advantages: the individual stations
can perform their manufacturing step autonomously. Central
Production control
(MES)
Automation
(Simatic S7)
Sensor level
(RFID reader)
Physical
processing
Initiali-
zation
Fig. 9.5 Remote production control with RFID
Cell A Cell B
Workpieces with an RFID transponder
Production
flow
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9 Manufacturing control
planning and control is only required at the start of the manufacturing
line, when the transponders are initialized. The complexity in the
automation systems and in the engineering of such factors, therefore,
decreases. Reducing complexity is equivalent to decreasing the
susceptibility to failure for the entire plant. Small production modules
are created instead of a monolithically organized block, and can
be easily operated, maintained, optimized, or exchanged.
9.5 Technical requirements
Special requirements must be fulfilled when selecting RFID systems
for remote production control: Separation of reading events, range
limitation, high memory capacity, and special integration into the automation
landscape.
One of the main differences between systems for production control
and those for logistics applications is the imperative necessity of separation.
While a gate application requires the simultaneous recording
of many transponders, e.g. during goods receipt, and thereby providing
an advantage over other technologies, in production it is more a
matter of really only recording a single transponder – namely the one
currently attached to the workpiece in the machine. Overshooting
and reflections are poison for these applications.
Finally yet importantly, the rule “as far as necessary but as close as
possible” also applies to this requirement for the system range (maximum
distance from the antennas to the RFID transponders). For example,
it is possible to apply RFID systems with a range of only a few
centimeters for track-guided conveyor routes. This excludes the possibility
of reading the next workpiece on the belt. If it is impossible to
move the antennas so close to the transponders (e.g. during final automobile
assembly), the RFID systems have to feature certain constructive
characteristics for active range limitation – a simple reduction
of transmission efficiency is insufficient due to the possible reflections.
In order to read the transponder only and immediately in
front of the reader antenna despite overshooting and reflection, the
industrial system Moby U by Siemens has realized elaborate signal
run-time measurement (RSSI) (Chapter 2).
A further difference between Production and Logistics is displayed in
the required memory capacity of RFID transponders. As a complete
production program is to be stored on the transponder in Production,
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9.6 Is RFID worthwhile in Production?
chips with 2 to 32 Kbytes have to be used here. Users in Logistics –
especially in the EPCglobal environment – are content with a mere 96
bit. As high a reading speed as possible is required at the same time.
Fast reading of the information remains a critical parameter, even if
access is accelerated by expedient memory management on the chip
(for example, if only fixed defined parts are read at a station instead
of the entire memory).
Finally, the RFID systems in Production are integrated in completely
different ways. While the logistics applications could commence
from an IT environment, the memory programmed controls such as
Simatic S7 dominate the field in the production environment. The
RFID reading devices have to be integrated into these controls so
seamlessly that the S7 programmer can easily access the RFID data
via completed components.
9.6 Is RFID worthwhile in Production?
The use of automatic identification in Manufacturing is an integral
part of a comprehensive production concept. It is, therefore, difficult
to measure the actual RFID/Auto ID ratio at such a solution in commercial
key figures.
However, if the decision has been made in favor of architecture with
autonomous elements, there is still a decision between RFID and visual
codes. There is a difference in the various costs for the infrastructure
(especially reading devices). Furthermore, the transponder costs
are significant: although the visual code also has to be purchased,
this expense is negligible when compared to the costs for the RFID
transponders. On the other hand, higher failure rates due to dirt may
have to be calculated for visual systems. An example – based on Sirius
production at the Amberg electronics production plant of Siemens AG
– clarifies when an RFID application is worthwhile (ref. method compare
Chapter 7).
Siemens produces switching devices of the “Sirius” family at its plant
in Amberg, Germany. Numerous parameters result in a large number
of possible combinations: alone the smallest switch size “S00” is
available in 1,500 possible versions. Siemens further provides a 24hour
delivery guarantee for these devices. The designers of the Amberg
production line have, therefore, realized a “Just-in-Time” production,
in which the switching devices are produced in the exactly
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9 Manufacturing control
required quantities after order receipt. Even so, the plant is fully automated,
and thereby provides consistently high quality at comparatively
low costs. In this case, the key is RFID technology.
The production line is divided into 60 processing stations, each of
which can perform one production step for the various versions: e.g.
assembly of the coil bodies or attachment of the lid plate. The devices
are assembled on a plastic workpiece carrier, which the transport
system routes through the entire production. RFID “tells” the processing
stations what to do: the workpiece carrier contains an integrated
RFID chip that bears all the manufacturing instructions and
complete parts list. This knowledge is programmed to every transponder
at the start of production. Every station has an RFID reader
that reads the data from the transponder and makes them directly
available for the Simatic control technology (Fig. 9.6). As an RFID system,
Moby I by Siemens is applied with a memory capacity of 8 Kbyte
per transponder. The result is a highly flexible production line that
could even theoretically produce individual pieces.
The application of visual identification systems and a respective database
in the background were considered as an alternative. A solution
such as this would have been less expensive for a first investment.
However, the running costs make RFID more economical. For one, the
system specific disadvantages of visual codes lead to a higher failure
Fig. 9.6 RFID supported production of Sirius switching devices at the Siemens
plant in Amberg
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9.6 Is RFID worthwhile in Production?
probability, e.g. caused by dirt on camera lenses or the codes themselves.
This reduces the line’s maximum utilization limit, while the IT
systems cost more not only in their acquisition but also in their operation.
As each production station initially queries the processing step
to be performed, the IT systems must provide the required information
in real-time and with the highest degree of availability, which
also involves solving problems such as the versioning of a type in an
ongoing operation. Although this is possible, it is more expensive
than the use of RFID in the long run. Production experts at Siemens
have established that an investment into RFID pays off in less than
two years.
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10 Production logistics
Heinz-Peter Peters
Having the right material at the right time at the right location is the
fundamental task of logistics and is an important prerequisite for the
economic success of industrial companies.
10.1 Logistics and corporate success
But what is logistics? The definition of the Bundesvereinigung Logistik
(BVL) [Confederation of German Employers] is: “Logistics entail
the holistic planning, control, coordination, implementation, and
monitoring of all the intra-corporate and cross-corporate flows of information
and goods from companies and supply chains with decisive
influence on corporate success”. Referring to intra-corporate logistics
in manufacturing companies, this leads to the subdivision of
production logistics. Their task is the planning, controlling, and
monitoring of the material flow from the receipt of goods across the
Fig. 10.1 Material and information flow in Logistics
126
Procurement
market
Requirements
planning
Logistics
Production
planning
Packaging Storage
Handling
Picking
Materials flow
Information flow
Sales
planning
Transporting
Sales market
Procurement
Production
Distribution
Suppliers logistics
logistics
logistics
Customer

10.2 Processes in production logistics
entire production process to shipping as well as – at a superimposed
level – the creation of a logistics compatible optimal material flow
control.
Therefore, the physical transport of materials and goods, i.e. concrete
packaging, storage, picking, and transporting is assigned to logistics.
Production logistics also includes the application of modern information
and communication technologies for the support of work processes,
e.g. electronic tracking of material on its way from goods receipt
to processing to shipping (Fig. 10.1). The challenge is to directly
interlink the material flow with the information flow, and thereby
supplying the transported material with the information. The following
sections describe a solution for this task through the application
of RFID technology.
10.2 Processes in production logistics
The identical requirements for companies are low stocks of raw material,
semi-finished and finished products, short throughput times,
and flexible production processes while maintaining high quality. At
the same time, the customers demand individualized products, i.e.
the ability to provide batch size (small quantities) is demanded in
production (see Chapter 9). Rapid processing of orders equals the
means for rapid production processes and these require an efficient
material flow between incoming and outgoing goods. In the division
of production logistics, this affects the production itself as well as
production associated logistics processes incoming and outgoing
goods, transport, handling, picking, and storage (Fig. 10.2).
Goods
entry
Transport
Warehousing
Handling Production
Conveyor /
Ware-
Machine Ware- Carton for
Trucks Forklift
crane or
Trucks
house
assembly house packaging
similar
Fig. 10.2 Production associated logistics processes
Warehousing
Consignment
sales
Goods
shipments
These days, production logistics is often marked by manual processes
such as manual input and information and communication systems
with local data maintenance. The delivered goods are manually recorded
at goods receipt and transported to a storage facility or a pro-
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10 Production logistics
cessing station by warehouse staff. Processing is started manually
and the results are documented by hand. These processes are work
and time intense, in which errors occur frequently, and last but not
least they cause high costs due to work effort and error removal. Although
the use of barcodes for data recording greatly reduces the
number of errors, the work effort remains the same, as identification
still has to be performed manually. Furthermore, central data maintenance
requires complex networks, which are heavily burdened by
permanent communication. The failure of the process computer or
the network leads to a complete production standstill.
An improvement of the situation is only possible through organizational
measures created by logistics compatible strategies and structures.
We differentiate between demand-controlled logistics strategies,
e.g. Just-in-sequence/Just-in-time (material is accurately provided
according to sequence) or consumption-controlled logistics strategies,
e.g. Kanban (a demand impulse is linked to a container and
triggers provision). The implementation of these solutions leads to
process improvements and has already ensured a reduction in the
throughput times and stocks. Large potential, however, is left for sustainable
material flow optimization through RFID-based solutions.
10.3 RFID in production logistics
The physical material flow of raw materials, components, partial systems,
or finished products in production logistics is always offset by a
respective information flow. The current information on the order, as
well as the condition and quality of the individual object must be as
promptly available as much as possible. Efficient material flow control,
therefore, requires the extensive transparency of the working
process in the production related logistics of material and data. RFID
technology enables moved objects to be supplied with information
and to link the material flow directly to the information flow.
The use of RFID transponders on transport aids such as boxes, pallets,
and pallet cages or on the material itself enables the real-time recording
of information during transport, whereby the RFID transponders
assume the identification of the objects as well as the remote and mobile
data storage of further information such as order data, process,
and quality data. The expected area-wide application of RFID in the
cross-corporate information and material flows and supply chains
will also lead to optimum and efficient production logistics. The RFID
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10.3 RFID in production logistics
supported logistics processes would go beyond the internal production
plant and involve suppliers and customers. Together with the
transport, the goods equipped with RFID transponders are automatically
recorded during unloading from the truck. The information is
reconciled with the orders and the supplier’s delivery note. Erroneous
or incomplete deliveries are recognized immediately. The internal
transport information is then stored in the RFID transponders.
The inward stock movement is automatically read at the storage
points. The parts are rerecorded at stock removal and specified with
transport information. The associated booking of goods takes place
automatically.
In the simplest of cases, the current delivery data are automatically
recorded at the good’s dispatch during the loading of the truck and
transferred to the customer in the form of delivery notes. Booking in
the merchandise management system also takes place simultaneously.
The typical tasks in shipment processing for the consolidation of
customer orders or the distribution of bulk orders are further optimized
by RFID.
The remote data maintenance poses fewer requirements on the information.
The communication and networks are relieves of these requirements.
This is achieved through local storage of target and routing
information on the RFID transponders attached to the commodity
or transporting aids. The goods can, therefore, communicate with the
transport technology and navigate through systems by themselves.
All of the route decisions are made directly at control level based on
the locally available data: not the control system but rather the transport
means decide on the route in cooperation with the goods and
transporting aids.
The situation can also be further improved in the already mentioned
logistics strategies. The just-in-time strategy (JIT) requires close coordination
between the supplier and manufacturer. The material order
is determined by the production sequence, but the associated material
request follows at very short notice within the hour. Wrong deliveries
would lead to a production standstill. RFID enables the largest possible
information technical integration of all those involved. Decisions
can be made quickly and immediately on-site. For the realization,
RFID transponders are attached to a transporting aid and are
written with the transport, production, and quality data. The respectively
relevant data are read out during transport along the decision
points. Interception into the material flow is possible to the end.
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10 Production logistics
Fig. 10.3 Example of a Kanban monitoring board: the board’s equipment
with RFID (left) provides a fully automated display in the automation
and IT systems (right), without the established work process having
to be changed.
During Kanban-oriented provision, the customer or consumer always
decides what is to be produced (Push or Pull Principle). Basic Kanban
elements are: only the material actually consumed is produced and
only to the consumed volume; delivery is firmly defined and the
goods are always in fault-free condition. In this case a wrong delivery
would also lead to production standstill. For more recent Kanban solutions,
the containers or the Kanban cards are provided with an RFID
transponder. The transponders or cards uniquely identify the container’s
contents. Once a container is empty, its card is inserted into a
monitoring board with an integrated RFID antenna (Fig. 10.3). The
data are automatically read and transferred to production logistics
control. Then, operator-independent and expeditious replenishment
control takes place.
10.4 Application examples
As RFID has already been applied in production control for more than
20 years (Chapter 9), the most obvious step was to extend its use to
production related logistics. A few realized projects from various sectors
and applications are described below.
10.4.1 Automatic order consolidation increases efficiency
Even if this example stems from distributions logistics, it displays the
benefit of remote data maintenance very clearly. At the mail order
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10.4 Application examples
company Quelle in Leipzig, all logistical tasks, from goods receipt
and storage to picking, packing and dispatch are processed at one distribution
center. The high number of customer orders, daily peaks of
180,000 from a range of 160,000 articles, requires flexible, fast, and
reliably functioning logistics systems. The answer is the remote control
of complex material flows from picking to a multi-level sorting
system to dispatch with the help of RFID technology. Every picking
container has an RFID transponder with the container identification,
customer order, and additional routing information stored on it. This
information is used on-site directly in the programmable logic controllers
(PLCs) for route decision purposes. It is here that the RFID
system has led to an efficient and flexible solution.
10.4.2 RFID optimizes picking for assembly provision
This example describes the batch size in production. At the hardware
manufacturer Maxdata, PC systems are produced according to customer
orders; the completed systems are not stored. The production
processes must, therefore, take place particularly quickly and reliably.
For this reason, the components and partial systems are picked
in a production warehouse acc. to orders and the completed systems
are assembled, tested, and shipped in assembly. The picking containers
were already equipped with RFID transponders, which are also
used for material flow control in picking. The serial number is stored
in the RFID transponder and therefore the picking container is linked
to the order. Goods are moved out and also past so-called “stations”,
which are set up for the picking areas. This means that containers can
overtake each other to avoid congestion. The transponder is read at
every out-station and an on-site control decides whether the goods
are to be moved in or out.
10.4.3 Transparent processes in reusable transport trusses
RFID also works reliably under extreme environmental conditions.
The Tnuva association in Israel wanted a reliable identification solution
for goods tracking in the food industry. For hygienic reasons,
plastic pallets with integrated RFID transponders were used as reusable
transport trusses. The finished goods (e.g. yogurt) went through
various process steps such as heat storage, cooling tunnels, quality
control, and storage in a cooling warehouse with 4° C. The transponders
are read in dispatch for the administration of the reusable pallets.
On the one hand, the RFID system supports the material flow in
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10 Production logistics
production and storage. On the other hand, this permits the easy realization
of product tracking to the end customer.
10.4.4 Replenishment is ensured
This example displays cross-corporate cooperation to ensure the production
supply of raw materials. Here, RFID enables a consumer-oriented
logistics strategy in the sense of Vendor Managed Inventory
(VMI).
Finsa, Spain’s largest manufacturer of chipboard and fiberboard
needed a solution for the Trans-European material supply of its
twelve production plants. Together with DSM, the supplier of the raw
material melamine, Orbit Logistics Europe GmbH denoted a specialist
for global storage logistics and VMI. The realized solution is based on
RFID technology for marking big bags as individual trusses. Unique
identification via a specific number in the Electronic Product Code
(EPC) allows for tracking back to the production batch. The commodity
flows are automated through dynamic storage and monitoring
and ensure reliable material supply. The on-site goods management
system regularly reconciles inventory data with the Orbit logistics
computer. The data are processed, the required orders are initiated,
and the commodity flows are tracked in the Orbit computer center.
This RFID application has led to significantly improved storage. Errors
were reduced and costs were lowered.
10.4.5 The matching seat for the right car
The following example once more describes the close cooperation between
the supplier and customer, and in this case the automotive industry.
It is also an example of the requirement-oriented just-in-time
logistics strategy (JIT).
At Johnson Controls, a manufacturer of vehicle seat components and
systems, RFID technology has already been successfully applied at the
plant in Bochum for many years (Fig. 10.4). Ideally there are two combined
application options: automatic recording of internal processing
data and the provision of delivery data at the customer’s goods
receipt. As a solution, a specific transporting aid has been equipped
with a transponder. The individual work stations have installed RFID
reading devices, which store all the production and quality data on
the transponder. Once ordered by the customer, the seats in goods
shipment are sorted in the right sequence for direct delivery to the
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10.5 Summary and forecast
Fig. 10.4 Johnson Control uses RFID to control vehicle seat logistics.
The RFID reader is directly integrated in the transport system (circle)
(Photo: W. Geyer)
assembly station at the automobile manufacturer. The delivery data
are written on the tag and automatically adopted in the customer’s
goods receipt. There are often only three hours between the order of
a customer-specific seat and its installation in the car. Due to the application
of RFID, the efficiency in production was able to be significantly
optimized and the partnership with the customer was cemented.
10.5 Summary and forecast
The advantages and optimization potential due to the application of
RFID in production logistics are obvious. A current survey by industrial
analysts from the Aberdeen Group has revealed that due to the
introduction of RFID technology, the best companies were able to reduce
throughput times in production by 34 % and improve their delivery
punctuality by 6 %. Furthermore, safety stocks were reduced by
four days and changeover times by 8 % [1].
A world in which all logistical objects are equipped with RFID transponders
creates the basis for the “internet of things”. The next step
is the modularization of mechanics in the material flow and the respective
programming of the IT systems in the information flow. Con-
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10 Production logistics
sistent decentralization has enabled decisions for new optimized
routes of the respective material on-site. The self-organization of production-related
logistics is accompanied by this: the material controls
the system. However, this solution can only work based on the respective
information carried on the RFID tags.
The next consistent step on this basis would then be the area-wide
introduction of RFID technology. This provides the opportunity for
cross-corporate supply networks.
References
[1] Refer to various reports and market analysis by the Aberdeen Group,
www.aberdeen.com, 2007
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11 Container and Asset Management
Jens Dolenek
Not only product quality and performance are decisive for corporate
success in today’s global competitive environment but also the manner
in which the products reach their destination. Highly detailed and
automated process and supply chains are required, thanks to which
the products quickly, efficiently, and specifically reach the desired
destination.
Reusable transport units for the material flow are used in many business
relations. These “Returnable Transport Items” (RTI) can therefore
be used several times for the exchange of goods and commodities
within a logistical network. RTI and transported goods form a
conclusive unit together with the assigned information. From the
point of origin to their final destination, the transport units can pass
through multi-tiered further processing and a complex supplier network
that is created on this basis. In order to provide consistent data
for the suppliers, sub-contractors, logistics service providers, and
end customers in such a network, it is necessary for each of these
units to be uniquely identifiable. Multisite and cross-corporate standardization
of data structures and the respective interfaces is required
to enable the interpretation and further processing of the information
of the RTI and the transported goods by all those concerned.
This approach provides RTI transparency along the entire
supply chain.
11.1 Requirements for Container Management
In the context of container management, the previously described
RTIs are generally called “containers”. The reusable transport units
can feature the following characteristics: pallets, glass bottles, barrels,
individual workpiece carriers, wagons, containers, trolleys, boxes,
folding boxes, and others (Fig. 11.1). The term “asset” expresses
the commercial significance of the RTI while simultaneously expanding
the view of assets such as tools or system parts.
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11 Container and Asset Management
Fig. 11.1 Various forms of reusable transport items (RTI)
11.1.1 Motivation
The main objective of an asset management system is to use transport
units or other assets as efficiently and economically as possible
and – in case of specialization such as Container Management – to
apply them in the specified transport and storage processes. This requires
an accurate statement on the status of each individual transport
unit. Targeted actions, which are required for the functioning of
the complete process chain, can be derived from the overall observation.
If, for example, the existing stock of load carriers is insufficient
to handle increased transport requirements, additional load carriers
will have to be included in the process.
Continuous availability of information allows for the control and optimization
of a process chain under the aspects of cycle time, quality,
quantity, and finally, the associated costs and investments. The connection
of information flow and physical material flow also helps in
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11.1 Requirements for Container Management
achieving increased process transparency, which can be used for performance
increases and cost reduction purposes.
11.1.2 Objectives
This motivation for Container Management enables the derivation of
objectives, which could be achieved with the application of the suitable
technologies.
The control of processes required extensive transparency. The required
status information on every container in this respect can be
summarized into the following categories:
• container condition and application
• movement data and times
• general management and administration.
Missing information on the container’s area of application, its current
condition (“damaged”, “requires repair”, etc.) or the exact duration
in which a container is in circulation, can lead to an information
deficit within the entire system. The completeness of the status information
of every individual RTI and their immediate availability can
thereby counteract such an information deficit.
A further objective is the storage of important data directly at the
physical unit (e.g. quality data on the container) in order to have this
available in the process directly. The combination of distributed and
local data forms the basis for a data structure with immediate connection
to the actual process. Due to the flexible programmability of tags
in RFID technology and their consistency in rough environments, the
requirement of data to be distributed directly on the object can be
safely fulfilled.
In contrast, conventional identity technologies such as barcodes and
Data Matrix Code do not provide any options for storing variable information
directly on the physical unit.
11.1.3 Standardizing
Standards and common specifications are necessary to implement a
reliable and steady flow of goods across sites and companies with a
number of participants. If, for instance, one looks at the different
types of packaging and transport of goods in a supply chain, it could
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11 Container and Asset Management
be seen as a simplified form of architecture (Fig. 11.2), which can be
sub-divided into different, defined layers.
Layer 5
Layer 4
ISO 17363
Freight Containers
Layer 3
ISO 17364
RTI - Returnable
Transport Items
Layer 2
ISO 17365
Transport Units
Layer 1
ISO 17366
Product Packaging
Layer 0
ISO 17367
Product Tagging
Fig. 11.2 Extract from the specifications with ISO-relevance in
the supply chain (Source: ISO 17364; International Organization
for Standardization)
Different requirements exist regarding materials handling and the
data associated with that on each of the individual layers. For instance,
on the item layer only product-specific data such as part numbers
or serial references are of importance. On the other hand, on the
transport unit layer super-imposed information such as package
quantities and weight of the transport unit are of relevance.
The supply chain layers are shown graphically in Fig. 11.2. Furthermore,
this figure shows the ISO specifications in which the standards
for the RFID technologies in the different layers are specified (ISO
1736x). Layers 0 to 4 cover the applications of RFID technology within
the supply chain. The ISO specification 17364 – Supply Chain Applications
of RFID – Returnable Transport Items (Layer 3) must be emphasized
specifically in the context of re-usable transport units. As the
figure shows, not all the layers need to be filled, depending on specific
products and the processes associated with them. For instance,
transport packaging (Layer 2) without a re-usable transport palette
(Layer 3) can be transported in a freight container (Layer 4).
138
Means of transport
(e.g. truck, aircraft, ship)
Container
(e.g. overseas container)
Transport
unit
Truss unit
(e.g. pallet)
Pkg Pkg Pkg
Transport
unit
Item Item Item Item Item Item

11.1.4 Technical Specifications
11.1 Requirements for Container Management
The use of different RFID technologies in different layers is not defined
uniquely in the specifications in most cases. Therefore, the use
of a specific RFID frequency depending on the specific processes and
existing environmental conditions is not specified in ISO 17364. However,
in various segment-specific and cross-industry recommendations
the use of specific frequency bands is recommended. For instance,
in the VDA Recommendation 5501 (RFID in the container management
of the supply chain/Association of the German Automotive
Industry) the use of UHF is recommended because the performance
of this technology can best cope with the demands of the relevant logistic
processes of the automotive industry.
However, trading partners can conclude bilateral agreements. It is in
this way that implementation specifications can be defined explicitly
in the relevant Trading Partner Agreements (TPA). For a complex with
universally applicable RTIs this approach does, however, represent
high administrative overheads and is inflexible for expansion.
11.1.5 Data structures
As a prerequisite for a container management system it must be ensured
that every container can be identified and that every container
has only one instance in the database of the entire system. In order to
achieve such uniqueness, universal and binding data structures for
the generation of container identifiers must be defined. The minimum
requirements for such a data structure are an enterprise identifier
or company identification number and a serial reference, which is
unique within the company identification number. These minimum
requirements are applied in the following two implementations.
International Unique Identification of RTIs (ISO 15459-5)
In order to ensure the uniqueness of the company identification
number, various issuing agencies issue numbers to companies,
which may only be used by these companies. Issuing agencies are, for
instance: Odette (OD), Dun and Bradstreet (UN) or DHL Freight GmbH
(ND) (Source: ISO – International Organization for Standardization).
Fig. 11.3 shows the structure of the data with the saved Issuing Agency
Code (IAC) and the issued Company Identification Number, CIN. In
this way, a container is assigned to one defined owner. Every contain-
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11 Container and Asset Management
N 1 N 2 N 3 N 4 N 5 N 6 N 7 N 8 N 9 N 10 N 11 N 12 N 13 N 14 N 15 N 16 … N 32
Fig. 11.3 Data structure of a unique container identification (extract) –
ISO 154595 (Source: ISO 17364)
er in the company is individually identified via a serial reference. It is
in this way that holistic database uniqueness is created for each transport
unit.
Global Returnable Asset Identifier (GRAI)
Similar to the previous concept, the GRAI data structure is used to assign
the company identification number by GS1 to the company (Fig.
11.4). GS1 is a service provider and competence center for business
processes across consumer product companies and its adjoining economic
sectors. A type for the “Asset” transport unit can be assigned as
a supplement within the identification by the managing company.
This offers the opportunity of classifying the assets, directly on the
object layer, in order to be able to control material flows depending
on the type of packaging.
Fig. 11.4 Format of GRAI identification (extract) (Source: ISO 17364)
In summary, the described data structures exclusively serve the purpose
of an identification key for a reusable transport unit. However,
actions and information can be reported to the linked IT structures
via this key. For instance, properties, contents, and movements of
the objects can be saved in and retrieved from a central database.
Furthermore, it makes sense to be able to save supplementary information
directly on the RFID transponder and thereby directly on the
object.
140
IAC
Company Identification
Number (CIN)
Global Returnable Asset Identifier
GS1 Company
Prefix
Asset Type
Check Digit
0N 1 N 2 N 3 N 4 N 5 N 6 N 7 N 8 N 9 N 10 N 11 N 12 N 13
Serial
Reference
Serial
Number
X 1 variabel X 16

11.1.6 Additional peripheral processes
11.2 Economic viability
In addition to the identification data on the container, ideally container
and material data are either beforehand or simultaneously sent to
the customer and the supplier of logistic service provider per EDI
(Electronic Data Interchange). This specifically serves the purpose of
simplifying the business processes and of verifying the feasibility of
planned material flows against real material flows. When capturing
the container identifier, the receiver of the goods can thereby check
whether they have received all or even the correct containers. In case
of deviations, discrepancies can be identified with corresponding error
messages and can be reported.
11.2 Economic viability
When is the use of RFID economically feasible in container management?
In order to be able to provide a well-founded answer to this
question an exact observation of the process in the relevant field of
application is required.
The investment for RFID-supported container management, which
comprises individual RFID tags on the objects, stationary and mobile
installation and the IT integration, must be analyzed in a focused
fashion against process optimization as a cost saving potential. These
could, for instance, be lower process margins of error and reduce
staff costs as a result of automatic identification.
If stationary installations and the IT structure are taken as once-off
costs and if investment in RFID tags on the RTIs is projected onto their
average cycle times, the investment can be shown for a defined period
of time.
Example:
A transponder on the container with a price of € 2 is read three
times per cycle. The container has a cycle time of one day.
If the life cycle of a container is taken to be 7 years (at 260 utilization
days per year), this results in a cost of € 0.11 per cycle or
€ 0.037 per reading over the entire period of time.
As this example shows, the costs of the transponder cannot be taken
to be critical. The necessary installations and IT implementation are
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11 Container and Asset Management
the real cost drivers. By taking into consideration the once-off costs
(installation and IT), the use of RFID in container management is
promising, provided that the following boundary conditions are
given:
1. Closed loop operation, where the data carriers can be re-used
during the process (see example above).
2. Highly automated processes, where the automated identification
of objects is possible (e.g. materials handling installation).
3. High number of measurement and reading positions, thereby
reducing the cost per reading (see example above).
Furthermore, the following properties of reusable transport units
serve as general decision basis for the introduction of the management
system:
1. High investment costs for special container/load carriers, which
are kept as high quality assets.
2. High loss or damage rates, which can be analyzed and eliminated
by means of creating transparency.
3. Maintenance-intensive RTI, which must be identified uniquely
during their service life, in order to be able to perform maintenance
or inspections.
11.3 Container and Asset Management in Practice
Different implementation scenarios for the identification of reusable
transport units in container management are described in the following
sections. Different targets can be pursued here, depending on the
process requirements and application.
Container inventory and Container tracking
Automatic or manual identification of containers serves for the simplification
of stocktaking processes. If the process chain is structured
consistently, so that all the movements of the container can be captured,
continuous stocktaking can be performed. This means that a
current image with all the information about the containers can be
retrieved within the process chain.
In addition, the task of continuous tracking can be accomplished. If
the requirement of continuous and complete capturing of material
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11.3 Container and Asset Management in Practice
flows has been complied with, it can be established exactly at which
point in time which container has passed a specific point or is situated
at which location. For instance, the identification at the shipping and
receiving of goods can be used to book containers that were moved to
a higher level system for goods flows.
Container controlling
The re-writable property of the RFID transponder is used in active
container controlling to save the target address and other cycle-specific
data on a per container basis. Quick and effective control of material
flows can be achieved with the data directly on the container.
For instance, in the automotive industry highly specialized cable harnesses
are transported from the supplier to the automobile manufacturer
in reusable containers. During the manufacturing of the cable
harness, production is already performed according to the specified
sequence (Just In Sequence, JIS) of the end customer. The challenge is
to control the harnesses exactly according to sequence to the installation
site, even if the sequence or the status of automobiles changes at
short notice and a different assembly sequence is required. Such
highly flexible process requirements can be implemented with an active
container controlling, where logistic fine control can be implemented
without a higher level material flow system.
On the other hand, the quality data from the intermediate work steps
of the product can be saved to the data carrier of the load carrier/container.
Content management
It is not only necessary to know the contents for the sequence-exact
supply of containers. Moreover, there are applications where more
detailed information regarding the load must be available at any
time. For instance, in the foodstuff industry, information regarding
expiration dates or production batches can be saved directly on the
container. Here too – based on information regarding the product –
focused steps and measures for further processing are initiated (e.g.
application of the FIFO principle for products with a limited shelf
life). Further central databases can be used via cross references in order
to provide a comprehensive data record for the container or
product.
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11 Container and Asset Management
Container condition
The container management system promises high benefit especially
in case of maintenance-intensive RTIs. For instance, it must be possible
for all participants within the supply chain to have an overview of
whether the relevant container is available for further utilization, or
whether it must be repaired. Peripheral processes that specify the release
or re-use can then be accomplished at defined locations, e.g. at
the owner of the reusable transport units.
Distributed validity and availability of container condition information
enables the perfect planning and controlling of service-related
actions. Depending on the specific requirements of a container management
system, the previously mentioned application scenarios can
be combined. Transparent processes are created with the functional
linking of scenarios, thereby avoiding time consuming investigations
to obtain information regarding individual containers and products.
Additional solution blocks, which contribute to the further improvement
of performance, can be implemented.
Example: Asset Management at Siemens Berlin
An application example of asset management being applied in conjunction
with a tool management system in a production environment
is shown below. Parallels to the storage and transport processes
and cost- and maintenance-intensive tools as well as reusable transport
units can be created. Knowledge regarding the current application
or storage location is needed, as well as the necessity for saving
process-related data directly on the object.
Fig. 11.5 Tool management for precision devices at Siemens PG Berlin
(Photo: W. Geyer)
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11.4 Business models
At Siemens Power Generation in Berlin (gas turbine manufacturer),
RFID technology is used to optimize tool management. The system
manages the use and storage of precision devices, which are required
for the manufacturing of various components for turbines. A higher
degree of transparency of tools and the effective utilization thereof is
achieved in this way. In order to achieve such an improvement in
quality, each of the approximately 3,500 maintenance intensive devices
of the production site were fitted with an industrial RFID transponder
(Fig. 11.5, left). Besides a unique identification number and
a plain text description, supplementary data regarding the device
quality and latest maintenance is also saved in this data carrier.
By ensuring that the production devices can only be moved at defined
entry and exit locations between various manufacturing sectors
(Fig. 11.5, right), improved inventory information is thereby
achieved. Based on this information, manufacturing planning can
plan the tools more efficiently and in a more controlled fashion. All
the tools and movement data are managed centrally in order to be
able to derive further analysis and process optimization from it.
11.4 Business models
New opportunities regarding cost accounting between the involved
partners also result from the individual identification of assets and
containers. A bilateral supply relationship between a supplier and an
end customer is assumed for the simplified explanation below.
11.4.1 Rental
In this model, the owner – in most cases the end customer or a pool
operator – makes their reusable transport units available to be used
by the supplier (filling with material). The owner is responsible for
sufficient stock within the process chain. After goods receipt of the
empties at the supplier, a rental fee is charged after an agreed processing
time. If the container was already returned to the end customer
in the meantime, the rental feel does not become due. Settlement
of the account, therefore, takes place after the period of time at the
supplier or after a number of cycles.
This business model maintains the circulation of containers because
the supplier will want to avoid unnecessary costs due to excessively
long storage of the reusable transport units. Loss or shrinkage can
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11 Container and Asset Management
be retraced based on inventory and movement accounts of the containers.
“Resting” transport units at the supplier or the end customer are accounted
for via inventory accounts. All the objects having left the
goods dispatch of a company and not yet arrived at goods receiving
of the target are booked in the movement or transit accounts (i.e.
those objects that are currently transported by the logistics service
provider). Based on a reporting system, inventory, retention times,
and handling times of containers can be shown transparently.
11.4.2 Sale and repurchase model
In the sale and repurchase model there is no permanent owner of
containers. The containers are rather “sold” at the time of dispatch.
Transfer of ownership to the supplier thus automatically happens at
the goods dispatch of the end customer. If the transport unit is sent
back to the end customer after having been filled by the supplier,
then the transfer of ownership to the end customer again takes place
with the return – similar to the supply of empties. A company (pool
operator) is responsible for the entire inventory, without becoming a
permanent owner of the containers.
The purchasing and sales processes with associated transfer of ownership
represent the business processes in this model. For the company
that is responsible for the logistical activities, the agreed repurchase
value of the containers will be different from the sales value.
This difference in value is used to cover the logistics costs. If the supplier
is responsible for the logistics activities, for instance, their container
purchase value will be lower than the sales value. Accounting
is, therefore, done concurrently with the cycle. Sales and repurchase
values are agreed contractually and can involve additional participating
companies. Container shrinkage and loss cannot be passed on in
this model and is directly for the account of the company being the
owner of the container at the time of the loss.
11.5 Perspective
If the use of an RFID-supported container management system only
represents relatively low savings potential for individual process
steps per identification point and transport process, savings are accumulated
over the service life of a reusable transport unit. Based on
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11.5 Perspective
partial use of transport units across the respective industry, e.g.
small load carriers (“KLT”) in the automotive industry, a long-term
and consistent conversion to RFID technology for transport units is
only possible based on the standards that are provided for this purpose.
It is a prerequisite for widespread acceptance of RFID technology in
container management that all the companies involved in the processes
must see an advantage for their company in the introduction
thereof. Company-specific measures can then be derived from these
potentials, which will lead to increased performance or cost savings,
which in turn will amortize the investments.
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12 Tracking and Tracing
Harald Lange
Tracking and Tracing describes the request of manufacturers and
consumers to record the history of products. The real changes of state
and location create a digital trace. This can be tracked back to the origin
of the product via each individual station: “Where is the product?”,
“Which stations have the product passed?”, and “In which condition
is the product?” In order to be able to answer these questions
for finished products, data for semi-finished products or ingredients
must also be on hand. This targeted data collection opens up new opportunities
to guarantee and prove the properties of an individual
product.
Besides for the question of Quality Assurance, capturing of actual
data offers the option of having a direct influence on production decisions.
For the costly manufacture of complex products, the question
regarding location and time is also connected to questions such as:
“Which other goods were at the same location at the same time?”
These evaluations, for instance, allow the unintended coincidence of
different chemicals in one room to be avoided.
Some prerequisites must, however, be complied with in order to be
able to completely answer the seemingly simple questions regarding
location, time, and status.
• It must be possible to uniquely identify every product at any
point in time.
• Every location where a product can be must be known.
• It must be possible to capture every status with the required
parameters; this also includes fault statuses.
• This information must be aggregated and saved, so that it is
available for evaluations and decisions.
Monitoring and documentation of the manufacturing process as well
as its traceability is performed manually in many instances and is cor-
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12.1 Application areas
respondingly expensive. Systems for the automatic identification
must be used for recording this data in order to ensure competitiveness.
Another motivation for Tracking and Tracing is the compliance with
existing legal regulations. The compliance with different national
and international specifications is an absolute prerequisite in order
to be able to offer products in the marketplace. Of course, the measures
for compliance with relevant specifications result in substantial
financial costs for producers. This gives rise to a mutual desire of consumers
and manufacturers to make the quality of products visible
and thereby to protect themselves against imitations. Especially in areas
with high security requirements such as the aviation industry or
plants for the obligatory monitoring of other sectors, Tracking and
Tracing systems have an established position.
12.1 Application areas
12.1.1 Discrete manufacturing
Discrete manufacturing is characterized by a line structure, where
each part that must be manufactured successively in turn passes different
work stations. The sequence of work stations is normally specified
in a work plan. Depending on the complexity of the product, the
level of detail of the work plan also increases.
At any point in time that is of interest during the manufacturing process
of a product, the exact location of the part is important. It can, for
instance, be in a machine or in front of a measuring station. If the
product is now named, it is quite easy to prepare a location and time
recording. This information can even be used in real-time at different
locations of the process control system. Of course, it is important to
assign the name of product that must be manufactured as early as
possible – normally before the first processing step.
It makes sense to define an end point as well as a start point in order
to obtain a better overview. In a well synchronized manufacturing
process, where every work step is exactly according to the work plan,
and where there are no malfunctions, this type of tracking can easily
be omitted. The only parameter of importance here is time. Since every
product is completed after a processing time from the start of production,
a back calculation for every location can be made.
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12 Tracking and Tracing
In practice, limitation of so-called “time windows” of a production
process only allows a rather coarse observation of the product during
the manufacturing phase. Possible malfunctions as well ever
more complex and flexible manufacturing processes do not allow for
a sufficiently exact local analysis via a time-based observation. This
necessitates the use of event-driven Auto-ID systems. Auto-ID systems
primarily have the task of assigning and detecting unique
names. In practice, RFID systems as well as Data-Matrix-Codes are
used (Fig. 12.1).
Fig. 12.1 Identification in discrete manufacturing: left RFID for a gearbox
assembly, right DMC at different workpieces (Photo left: W. Geyer)
With the aid of these two technologies it is possible to assign data to
individual products during the course of the manufacturing process.
This assignment of data is an absolute prerequisite for recording, the
individual stations in the life cycle of goods. The following sequence
results from the example of an automotive assembly line with approximately
400 cycles: The chassis of an automobile is assigned an
identification number before the first processing cycle. This number
is written to a RFID transponder, which is attached to the chassis. With
the assignment of this number the chassis is firmly linked to the virtually
existing vehicle in the manufacturing control system. Each
subsequent processing step and every part that is mounted on the
chassis can now be assigned exactly, up to the point when the vehicle
is complete.
All of the necessary data for the processing stations such as for instance
type and furnishing, as well as all the generated data such as
for instance the numbers of fitted parts and times can easily be assigned
and saved. As a result, the question “Where are you?” can be
answered at any time at the relevant locations. At the end of the as-
150

12.1 Application areas
sembly process, a finished vehicle results from the manufacturing order.
A data record has been allocated to the vehicle via the identification
number, which was assigned at the start of the assembly process.
The question “Where have you been?” can be answered with the aid of
this data record.
12.1.2 Process industry
In most cases it is not possible to see or touch products in the process
industry. The reason for this is that the manufacturing process quite
often is closed, i.e. production takes place in pipelines, units, or containers.
The properties of the products are influenced and changed by
heating, cooling, or mixing. These processes can either be continuous
or batch processes. Typical sectors are, for instance, chemical,
pharmaceutical, or food and beverages.
In order to be able to assign data at specific intermediate steps of the
production process, the exact location and time are required. As a result
of the aggregate condition, a direct description of the product is
not possible in many production steps. In order to achieve the highest
possible relevance of data (normally measuring data) to the product,
the data is virtually assigned in a supervisory or control system to the
relevant batch. For fixed installation systems, this can be accomplished
via valve positions or time windows. This enables questions
to arise about the location of the product to be subsequently answered
sufficiently and exactly.
In numerous process oriented manufacturing processes no fixed installation
of possible routes has been provided. Products are put into
containers for intermediate storage and are transported from process
step to process step. A quick and secure assignment of the product to
the container is possible with the aid of Auto ID systems. If the location
of the relevant products is known, then the allocation of additional
product-related data is also possible. This is of particular importance
for the manufacture of pharmaceutical products or foodstuffs,
because a number of samples and tests are performed during
the manufacturing process. Insights gained can quickly be made
available to the relevant production station. Especially dividing and
mixing of different charges as well as the further processing of partial
quantities can quickly result in a complex database in centralized systems.
The process of determined locations and the allocation thereof
to the product results in a comprehensive product history. For the introduction
of an E-Pedigree solution, which is planned in many coun-
151

MV camera
code control
package insert
MV camera
blister pack
closure control
12 Tracking and Tracing
Fig. 12.2 Hybrid identification in a drug packing line
tries throughout the pharmaceutical industry, this represents important
prerequisites.
In practice, the 2D code is also used besides for RFID. Hybrid solutions
are being discussed, especially in the pharmaceutical industry. In this
way, the 2D code could be used for the identification of individual
blisters, while RFID transponders would identify comprehensive
packaging units (Fig. 12.2). The high speed of packaging plants poses
a special challenge. In order to guarantee the necessary performance,
the immediate processing of visual and radio codes in a programmable
logic controller (“PLC”) of the plant is required.
12.1.3 Tracking and Tracing in logistics
“Just in Time” or “Just in Sequence” are terms referring to complex
logistical processes. It is the aim of these strategies to get the right
products to the right location at the right time (compare Chapter 10).
With the aid of Auto-ID systems goods shipments can quickly and efficiently
be distributed worldwide. It is a matter of course for all leading
logistics companies to provide their customers with information
regarding location and status of shipments in real-time. The transparency
resulting from Tracking and Tracing enables the recipient to
perform exact planning, which in turn makes it possible to reduce
stock and thereby the costs at all the levels of the manufacturing and
logistics chain.
152
ERP
Process visualization WinCC
Machine control Simotion
- Reporting system
- Operating mode management
- Shift register
Printer data
matrix code
(variable data)
MV camera verifier
(expiry date, lot
code etc.) and
data matrix code
control
Cartoning machine
RFID
RFID verifier
MV camera applicator reader device
MV camera closure writing utensil
emission control carton
control
Labeling machine
MV camera
quality
control (e.g.
security tag)
Profinet
MV camera
emission
control
Simatic machine
vision system / camera
Simatic RF RFID system
write / read device

12.2 Drivers for Tracking and Tracing
12.2.1 Corporate advantages
12.2 Drivers for Tracking and Tracing
Continuous optimization of the manufacturing processes of different
products has resulted in highly efficient manufacturing. Transparency
within manufacturing is an important factor for the development
of further potentials for improving the cost situation. This transparency
makes it possible to react very flexibly to malfunctions or order
fluctuations, which oppose optimal manufacturing. Another advantage
is the complete capturing of all the important manufacturing
data and the utilization of this data to directly influence production in
real-time. In addition, the provision of exact status information in the
Internet, e.g. manufacturing status of ordered goods, improves planning
accuracy on the customer’s side. Products that have been assigned
a unique identity offer this advantage across the entire logistical
chain and the entire life cycle of a product. In this way, recall actions
or logistics can utilize the identifications that already are on the
product, all without additional costs.
12.2.2 Legal regulations and standards
For an international exchange of goods and worldwide manufacturing,
the use of standards, e.g. for terms and numbering systems is
required. Already when generating Tracking and Tracing data, compliance
with these standards such as for the EPC scheme should be
observed. The EPCglobal initiative is supported by experiences
gained by the GS1 organization based on the assignment and management
of number systems. Manufacturers and users of RFID systems
are members. It is the objective of this initiative to create standards
for the worldwide uniform utilization of RFID.
12.2.3 Consumer protection
In the USA, the FDA (Food and Drug Administration) is the responsible
authority for the protection of public health. All the manufacturers
of drugs that are licensed in the USA must manufacture them in
plants that have been certified by the FDA. This specifically means
compliance with and application of validation specifications. Tracking
and Tracing information constitute an important prerequisite for
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12 Tracking and Tracing
the validation capability across the entire manufacturing and distribution
process of drugs, for instance.
12.2.4 Transparency for end users
The desire for healthy nourishment has resulted in an increase of the
demand for foodstuff produced in an ecologically compatible way. As
for other products, the consumer wants to be sure that the indicated
product properties are genuine. Especially-automated Tracking and
Tracing systems offer a high degree of reliability here. Relevant evaluation
programs can offer the customer the option to easily retrace
the product development process via the Internet.
12.3 Advantages of Tracking and Tracing
Quick and automatic capturing and processing of information is a
prerequisite for the direct capture and evaluation of detailed information
regarding manufacturing processes. Data quality has been
particularly improved by the automatic capturing of production data.
It is one of the primary objectives of these activities to optimally utilize
existing manufacturing capacities. The introduction of quality assurance
measures is intended to prevent errors, because besides the
potential hazard for the user, any type of error also bears the risk of
having to repeat individual production steps (re-work) or of the product
being useless (scrap).
Initially, it was attempted to detect quality deviations in due time with
the aid of suitable intermediate tests and the capturing thereof (e.g.
Job Cards). With increasing automation and the associated continued
increase of production speeds, the manual capturing of manufacturing
processes was no longer feasible in many sectors. Only the introduction
of operating data capturing systems allowed the most important
manufacturing events to be captured almost in real-time. This
made the more exact analysis of actual manufacturing procedures
possible. Allocation of the operational data directly to a product was
only possible at a reasonable cost with the aid of Auto-ID systems.
Now, quality data can also be retrieved from operational data. This is
important because current manufacturing plants quite often do not
allow direct quality control during production. By tracking products
and tracing manufacturing events, new Quality Assurance strategies
are available.
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12.3.1 Reactive Quality management
12.4 Tracking and Tracing in practice
By measuring and evaluating quality parameters after a production
run or during the product life cycle, the actual properties of products
can be established. If deviations from the set point occur, the reasons
for the deviations must be investigated. The evaluation of existing
product-related data (e.g. locations, times, or events) provides very
comfortable options of influencing the respective manufacturing parameters
in a focused way during the running of production and to
avoid a repeated occurrence of deviations.
12.3.2 Proactive Quality Assurance
An important advantage of Auto-ID solutions is that individual information
regarding products, equipment, and auxiliary systems can be
made available directly on-site – for RFID-based systems directly on
the part, and for barcode systems via a unique part ID as reference to
information in a data source or database. In this way, for instance, an
incorrect cleaning status or the violation of a time restriction can be
detected even before the relevant aggregate is used. Errors are prevented
proactively.
12.4 Tracking and Tracing in practice
Capturing of product history and status in the foodstuff processing
industry is of primary importance, especially from the point of view
of Quality Assurance and consumer protection. The following example
shows how a largely staff-independent Tracking and Tracing solution
can be structured for an egg production system.
An egg processing factory of the Grupo Leche Pascual in Spain is supplied
with eggs from a number of chicken farms. The eggs are stacked
in reusable transport containers (racks) in the chicken farm. Each of
these transport containers is furnished with an RFID tag on top. The
data of all the eggs on the rack, such as the laying time, quality, and
weight, are transferred to this RFID transponder. The egg racks are
collected from a number of different chicken farms with a truck of the
egg processor. When the racks are loaded onto the truck, the data is
transferred from the rack to an RFID reader that is installed on the
truck. The position of the vehicle is known via a GPS, so that the supplier
of every egg charge can be uniquely established and saved automatically
through the combination of RFID and GPS data.
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12 Tracking and Tracing
Fig. 12.3 Complete RFID tracing of egg products (Photo: Peters)
When the loaded truck returns to the factory upon completion of the
tour, the data of the cargo on the truck is transferred to the IT system
directly at the entrance to the factory premises. The consignment is
checked by weighing the racks after offloading the truck. Identification
of the consignment also allows automatic accounting without
any manual input. The necessary laboratory samples are taken from
the consignment at the same time. The consignment is now placed in
intermediate storage in an allocation area. The laboratory releases
the charge for further processing after evaluation of the samples. Verification
of the release is performed automatically before the processing
step. The eggs are automatically cracked and processed here.
Status data is captured automatically in the entire supply chain from
the chicken farm via the transport up to the processing operation,
without employees having to perform any identification tasks. If status
data deviate from the set point value, e.g. weight timeout or missing
laboratory release, the operator is informed accordingly. A degree
of production security is achieved with the system, which is installed
here, that is not dependent on the qualification of employees. All the
required data of the supply chain are saved in the Quality Assurance
system of the egg processor and can be allocated to finished products,
if required. This allows for retracing from the finished product nearly
to the individual chicken.
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12.5 Perspective
12.5 Perspective
Further development of the indent technologies will enable quick
and low cost identification of the product and all the components involved
in the production process in the future. Further improvement
of functions such as bulk readability for RFID as well as improved capturing
of information via visual systems will gain in importance. The
permanent integration of automatically readable coding in products
will significantly simplify the option of acquiring information in industrial
manufacturing.
As a result of the expected improvements of data quality throughout
all the sectors of the production life cycle, the aspects of counterfeiting
of products and protection of manufacturing information will become
increasingly important. The handling of enormous volumes of
arising data also requires reconsideration. A seamless transition
from the virtual world to the real world will play an even more important
role. If, for instance, a planned automobile is assembled as a real
automobile in an automobile factory from chassis, engine and
wheels, then a virtual image of the automobile is created at the same
time, consisting of events, types, and serial references. Whether the
virtual image accompanies the real automobile on a storage medium
or whether it remains in the database of the automobile factory will
not lastly depend on how successful selective data access can be organized
and authorized.
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13 Optimization of Supply Networks
Volker Klaas
Whoever buys a suit, a hard disk recorder, or an automobile today expects
a well-sorted offer of diverse options at market related, acceptable
prices to be provided by a good specialized dealer. It must be
possible to select a product for the relevant budget from different colors,
sizes of furnishings, and technical configurations, which must be
available for delivery within a short period of time or immediately. If
one looks at the parameters option diversity price and time more
closely, a number of conclusions can be arrived at.
13.1 Increasing variety
In the course of increasing individualization of offers in highly developed
markets, the diversity of product options is subject to constant
growth. Because a respectively differentiated demand is on hand, a
high degree of diversity of characteristics of a product offers a welcome
opportunity to the vendor to differentiate themselves from the
competition. The textile industry with its increasing specialization for
different target groups can be taken as an example. This applies even
more specifically to pricing. If comparable products can be offered at
a more attractive price than the competition, this presents a clear
market positioning advantage. This development can be observed almost
daily in the advertising in the electronic consumer goods industry.
The availability of the goods at the scheduled time at the scheduled
location is a prerequisite for the efficiency of the diversity of price
and supply to be a differentiating market characteristic. These days
nobody is prepared to wait for an electronic device – when the purchase
decision has been made, customers want take their new acquisition
home immediately. For textiles, the availability of standard and
seasonal articles in all colors and sizes is taken for granted. Long
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13.2 Change of the demands on business processes
waiting times have a negative influence even on complex technical
equipment such as automobiles.
These briefly sketched demands of consumers towards the vendors of
products have an immediate effect on the value-added process and
involved partners – wholesale and retail, distributors, logistics operators,
and not least the manufacturers themselves. The cooperation
of these partners in the supply chain is at the center of the observation
– in view of increasing complexity and meshing of individual
supply chains – in one supply network.
13.2 Change of the demands on business
processes
However, the complexity of supply networks increases continuously.
More and more production steps are transferred to countries offering
the preconditions for a favorable cost structure through low wage levels,
in order to be able to keep up with the constant price pressure.
This process is accompanied by increasing specialization, which leads
to further cost advantages. Both of these lead to a more emphasized
global distribution of production, with the result that the supply
chain is hardly in just one hand any more.
At the same time, services in the value-added process are outsourced
to foreign providers. For example, individual parts for automobile
doors are assembled into functional units by the logistics service provider
and instruction manuals and packaging are also assembled into
the end product (e.g. mobile telephone) as a sales unit by the logistics
service provider. In the textile sector, wholesalers or distributors frequently
take over the preparation of goods, i.e. ironing and folding
ready for sale.
These examples show a trend that will increasingly establish itself in
the coming years: On the one hand, because competition demands
become more stringent, and on the other hand because more and
more markets such as India or China are developing to higher levels
of complexity. The result is an ever closer meshing of manufacturing,
refinement, and distribution of goods. At the same time, the interdependence
of all involved parties increases. When a supply chain does
not function properly, i.e. supplying wrong goods at the wrong time
or not at all, the success of the remaining partners is threatened seriously.
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13 Optimization of Supply Networks
Interaction between supply chain partners thereby becomes more intensive
(Fig. 13.1). Raw materials, semi-finished products, and finished
products must be exchanged between individual companies
and must be processed further in due time. This is only possible if the
associated information and requirements are available “just in time”
and are transferred to the right partner at the right time. Not only the
goods flows themselves, but also the associated planning, supervision,
and control information thereby become ever more complex
and time critical.
Supplier
company
Fig. 13.1
Sample of a complex supply network in the automobile supply industry
In the electronics industry, short-term demand fluctuations must be
taken into account immediately in production, logistics, and refinement.
The rate of shrinkage must be reduced without a delay of the
logistics processes and service and return actions must be made
more effective and customer-friendly. In textile logistics, item-related
“real-time” control instruments are required in order to avoid dreaded
“out of stock” situations despite the variety and extremely complex
sales structures. Comprehensive documentation of individual stations
is of paramount importance in the automotive and pharmaceutical
industries, not least because of legal requirements (see Chapter
12).
160
Supplier / Customer relationship management
Integrated product development
Integrated logistics
Sales and Purchasing
Knowledge base
Market places and platforms on the Internet
Automobile
manufacturers

13.3 New business processes require new technologies
13.3 New business processes require
new technologies
In production and internal production logistics, a high degree of automation
is a matter of course for many years already. As soon as new
technologies of supervisory and control systems of production processes
became available, they were employed in many instances.
Competitive pressure from innovative companies gaining market
share with the adaptation of new technologies leads to other vendors
in the sector to also utilize the technical developments after a slight
time delay. For instance, Auto-ID/RFID technologies have been a matter
of course in the production environment for a number of years
(see Chapter 9). Manual control and test activities have been superseded
by automated goods and information flows in due time.
In the case of supply networks across companies, this is currently
hardly applicable. Shipping and receiving of goods are only automated
at the level of packing units by means of barcodes, if at all, but not
at the item level. Generally, costly manual sorting and picking activities
are required: Collection and further picking of a standard transport
container with textiles can currently take up to two weeks. The
logistics route is all but transparent in this case. For instance, a number
of weeks can pass while goods are on their way from the manufacturer
in Asia to a logistics center in Europe, without current status
information being available. If unforeseen delays occur, neither the
sales processes (e.g. for textiles or entertainment electronics) nor the
production processes (automobile manufacturing) can be adapted in
time. The same applies to the status of deliveries being processed by
a number of supplier or processing levels. In this case too, the principal
does not have the information regarding the current status of
their order.
A lack of transparency also applies to large parts of shop management
processes, i.e. to the tracking of the goods’ movements on the
sales floor. Items that were placed in the wrong areas can only be
traced again by means of costly manual re-work or time-intensive inventory
operations.
How should a technology be structured, which allows similar quantum
leaps in productivity in the presented logistic processes, as was
accomplished in the production environment?
Initially, the most important requirements are investment and operating
costs. If tracking of individual items or production components
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13 Optimization of Supply Networks
is required as described above, such a technical solution must be relatively
inexpensive in order to gain acceptance. Furthermore, capturing
ranges of a few meters must be possible, in order to allow for the
simultaneous, automatic capturing of individual items within a dispatch
unit, e.g. palette, during a standard logistics process such as
goods receiving, goods dispatch, or picking.
Such options have been available for some time via RFID technology
based on UHF and EPC-Gen2 standards. Technical reliability and the
field of application of such RFID labels has increased at the same rate
as their prices have decreased. If this enables the item-precise tracking
of goods flows in a supply network, this means that individual
events (changes of location or status of goods) can be captured electronically
at the time of the occurrence and that the information can
be made available to involved parties in real-time. It is, therefore, also
possible to establish a connection between the real world of global
goods movement to the global structure of information technology
for logistics processes, allowing in turn a new quality of processes
and information.
13.4 Advantages of RFID employment
across the board
In RFID-supported supply networks, information regarding businessrelated
events is available for the involved parties at the time of the
respective occurrence. Costly manual preparation and evaluation of
historic information is not required any more. Standard processes
can thus be automated and process times and costs can be reduced
drastically. In addition the error rate, which is relatively high in manual
processes, can be reduced significantly. The overall quality of logistics
processes is increased significantly, which improves market
positioning of involved companies and increases customer satisfaction.
Companies disposing of exact information regarding the receipt, dispatch,
and processing statuses of their supplies at the individual stations
of the value-added chain, are in a position to act in time in case
of exceptional situations. If such information is only available with a
significant time delay, as in the past, only subsequent reaction is possible,
which in most cases is nothing more than containment of damages.
Information provided on time enables the proactive creation of
goods buffers, which balance the delivery delays on the one hand
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13.4 Advantages of RFID employment across the board
and, on the other hand, limit resource binding to the absolutely necessary
volume. In case of short-term regional demand fluctuations,
for instance weather-dependent additional demand for textiles in certain
regions, the relevant control information can be entered into the
logistics process in due time and distribution can be adapted to the
new situation.
Another aspect relates to the control of goods flows. If it is discernable
at any point in time where own goods should be and where they
actually are, then it is possible to immediately react to deviations.
Such deviations could be weak points in the process, which are exposed
by RFID and can then be rectified. It could, however, also be
criminally based shrinkage, which can be uncovered immediately
due to the real-time information on hand, and can be curtailed as
soon as possible. Product imitations or the covert use of low quality
components are further criminal options in complex supply chains. If
the retracing of products or product parts down to the item level is
guaranteed due to RFID technology, such activities no longer have a
chance of success.
However, if individual items can be tracked in innovative supply networks
by means of RFID, then existing RFID item identification should
also be used in subsequent sales processes and shop management, as
mentioned above. By correspondingly furnishing sales areas, for instance
with RFID shelves for on the shelf goods, RFID hangers for
hanging goods or mobile capturing devices for sales staff, in-store
processes can achieve a degree of transparency that was not possible
up to now. All the movements of goods can be captured and thereby
can be controlled. Even novel processes such as RFID-based information
systems are feasible: The customer automatically receives comprehensive
information regarding the product, tips on combination
options with other products, and much more (Fig. 13.2).
Quite often, subsequent service or a customer care process follow the
sales process, e.g. in the trade of electronic consumer goods. In case
of guarantee claims, processing via identification of the product with
an attached RFID transponder is expedited. RFID-supported product
history simplifies the decision for or against further repair in case of
older products. For some business processes, there also is a unique
link between the device and the user, for instance for pay-TV receivers
or for loaned-equipment such as DSL routers or set-top boxes for digital
cable reception. Quite often such devices are found in short-term
rental business and are returned by the customer and put into circulation
again. RFID-supported assignment to the user and the link to
163

13 Optimization of Supply Networks
Fig. 13.2 If individual items are furnished with transponders, in-store
processes can also be improved: such as shown here with an RFID-based
customer information system (Photo: METRO AG).
the past utilization history of the device simplify the processing of
payment activities and required preparation. In this way, real-time information
enables optimal customer care and increases customer loyalty
to the company.
It applies to all the presented application fields of RFID technology,
that time- and item-precise capturing of actual goods movement obviously
enables significantly higher planning quality than was previously
possible with historic data. If processing times and changes in
the supply chain are known exactly per station, future processes can
be planned optimally, based on this information. Transparency and
real-time information breeds trust – both in the partner and in own
capabilities.
13.5 Further development options
Even if the advantages of RFID-supported supply networks are obvious,
they are up to now only implemented at a few companies, who
are particularly innovation-minded. The reasons for this are that the
required UHF/Gen2 technology has only been available in businessproven
form since 2006. Also, costs for this technology are quite often
regarded as too high. Finally, many companies tied up in totally dif-
164

13.5 Further development options
ferent value-added chains. An automobile supplier, for instance, does
not service only one customer, but a whole range of manufacturers.
Most textile producers or producers of electronic equipment supply
different retail chains. Therefore, it is customary that the requirements
regarding information to be exchanged are structured differently
in different supply chains. If a company were to implement
these different requirements, it would result in significant additional
costs and required resources.
If, however, the RFID technology is to be used across the board, then
it must be considered how these barriers to introduction can be removed.
One option would be for companies with high demand power
to motivate their suppliers with more or less explicitly formulated financial
sanctions to participate in RFID-supported logistics processes.
This would have the advantage of achieving a quick implementation.
However, a disadvantage is the absence of an independent motivation
for the utilization of RFID: The suppliers will furnish their
goods with RFID transponders, but will not enjoy any profit themselves
from the technology.
Another option of enhancing the introduction of the new technology
is an operating model for RFID infrastructure, made available by neutral
providers, i.e. providers who are not participating in the respective
supply chain. Similar to IT outsourcing, the operator of the installation
offers a complete operation of the RFID infrastructure, from installation
through maintenance to a communication platform for the
exchange of relevant information in the required formats. Such operating
models create the optimal conditions for the employment of
RFID in complex structures. An easy introduction to the technology is
offered to individual partners, irrespective of their IT knowledge or
existing IT resources, because the operator provides implementation
and maintenance, including 24-hour service (Fig. 13.3).
Supplier
(Asia)
Manufacturer
(Europe)
AutoID backbone ®
Logistics
service
providers
Distributor /
trade
Identification and status information regarding the goods flow
Fig. 13.3 Presentation of an Auto-ID/RFID operating model
After-sales
service
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13 Optimization of Supply Networks
This also means that the new partner, possibly changing production
sites or new suppliers, can be incorporated flexibly and on short notice.
Demand fluctuations or cost increases at individual production
sites can be taken into account immediately. Business-related information
is prepared via the communication platform in such a way
that individual companies can process it in real-time in their IT systems.
Participants in such an RFID operating model only have one
partner for the exchange and preparation of information, even if customers
or suppliers change, so that no additional dependencies arise.
Not least, the high investment barrier can be reduced significantly by
such an operating model. Instead of high initial investment costs, the
users of the operating model pay for services on a transaction- or
item-basis. This makes the investment risk clear and the arising costs
are directly linked to the utilization of the RFID infrastructure.
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14 Vehicle logistics
Marcus Bliesze, Hans-Juergen Buchard
RFID applications for the optimization of vehicle logistics are mostly
distributed over very large areas. In this case, persons as well as objects
that are furnished with data carriers need to cover great distances.
The processes in the automobile logistics are quite often complex
and contain many degrees of freedom in many instances. The spatial
and time dynamics to which processes in vehicle logistics are exposed,
require a high degree of real-time transparency. If, for instance,
the positions of all the vehicles waiting for offloading of goods
at a warehouse in the Dock and Yard Management are known at any
point in time, the allocation of free docks can be arranged in such a
way that trucks can easily shunt and thus start with offloading as
soon as possible. Transparency is also required in fixed processes, in
order to be able to identify possible optimization potentials through
statistical evaluations of vehicle movements.
14.1 Special requirements
In vehicle logistics there are markedly modified technical requirements
for RFID systems compared to other applications. The objects
are moving on open spaces and in indoor environments. Furnishing
open parking spaces with cabled RFID write and read devices is either
too expensive or is not possible at all in many instances because of
non-existent installation possibilities at parking bays. Capturing the
parking bay position of vehicles in such instances can only be accomplished
by real-time locating systems (RTLS), of which the infrastructure
is constructed around the open space.
In the past, technical solutions with which vehicles could be tracked
within production without human intervention were lacking. Initially,
manual bookings on paper with subsequent transfer to IT parking
spot management systems were performed for the relocation of vehicles,
which had left the production line and were identical on first
167

14 Vehicle logistics
sight. These procedures were time consuming and were error-ridden
due to manual inputs. The up-to-dateness of the information was always
subject to a time delay. A faulty booking invariably led to escalation
by follow-on errors, which could only be cleared by costly inventory
measures. Due to the resulting inaccuracy of the manually captured
information and lack of up-to-dateness of the captured information,
acceptance of the system was very low. This resulted in long
search times for production, for vehicles that had left the normal production
line. Long search times mean extended delivery times, unsatisfactory
date reliability, and invariably lead to higher costs.
14.2 Technical basis
Locating systems (RTLS) belong to the family of active RFID systems.
They determine the position of objects in an area at regular intervals.
RTLS data carriers send signals with a settable blink rate to so-called
RTLS access points, which form the fixed RTLS infrastructure (Fig.
14.1). The signals of the RTLS data carriers enable the RTLS-Access-
Points to generate runtime information (“LI”). It is transferred to a
central computing unit, where the runtime information of different
Movement
(time)
System
Output
Fig. 14.1 Functional concept of RTLS
168
A
Pos5
Pos4
Trigger information (ID1)
A
Run time information (LI)
T
ID1
Movement
Pos3
Run time information (LI)
Trigger-
Event
Pos2
LI LI ID1
T
Area to be covered
LI
Run time information (LI)
Run time information (LI)
Blink Blink Blink Blink Blink
Pos5 Pos4 Gate1
LI
Pos3 Pos2
A
A
LI
Pos1
A RTLS Access Point
ID..
Magnetic trigger
field (1-6 m)
T
RTLS Tag

14.3 Application scenarios
access points is used to establish the position of the RTLS data carrier
in the area on hand (Pos1 ... Pos5).
Contrary to conventional RFID gates, where the capturing of objects
only takes place at defined positions, RTLS systems work over large
areas. The position of objects can be determined at any point of the
covered area. Despite this, there are applications where it is necessary
to additionally work according to the conventional RFID gate principle.
For this purpose, RTLS data carriers are capable of detecting a
magnetic field that is emitted from so-called triggers. This field can
be parameterized for a range of 1 - 6 m. The magnetic field transmits
a trigger identification number in order to be able to distinguish between
the different triggering fields. If a RTLS data carrier detects the
magnetic field of a trigger, the transponder reads the trigger identification
number and immediately transfers it to the RTLS access points
together with its own identification number. In Fig. 14.1 the RTLS
data carrier enters a trigger field between positions three and four,
and immediately generates a message with the trigger ID to the system.
The trigger principle is used at central access control points, for instance.
Here, a boom must be opened when an authorized vehicle approaches.
Immediate reaction of the access control system is required
in order not to force the vehicle to stop.
The two functions of locating and determining the trigger location
enable the blink rate of the RTLS data carrier to be reduced to a minimum
in order to conserve battery life, while real-time reaction in certain
instances is still possible. The selection of the blink rate essentially
depends on the dynamics of the possible movement of objects
to be located.
Once the RTLS infrastructure is established and the data carrier is
fixed to the object, many utilization options are available without any
additional cost. Continuous data transmission presents a current
view of the production process and a transparent process. Any conspicuousness
during the process is detected and can be rectified.
14.3 Application scenarios
Optimal logistics processes require current information. Real-time
locating does not only offer information, but it does link information
with the current location of the object. Process transparency is in-
169

14 Vehicle logistics
creased significantly by knowing the location of the goods at the current
time.
14.3.1 Utilization at automobile groups
The Sicalis RTL system is used in all of the factories of an automobile
manufacturer for tracking vehicles in the final assembly sector. It reliably
tracks vehicles that have left the fixed sequence of the assembly
line in order to get to dispatch via various test and finishing stations
(electrical test, roller test bed, and adjustment stations). Sicalis RTL
allows for the capturing and visualizing of all the vehicle movements
in the indicated areas, halls, and open spaces as well as in factory
stores. The high degree of precision of the RTLS components of the
Moby R system makes it possible to pinpoint the parking position and
to transmit it to the further processing systems of the operator.
Fig. 14.2 RTLS transponder on the interior rear view mirror for locating
the vehicle
Vehicles that have left the assembly line, but need to be returned to
the production hall at a later stage for final completion, are furnished
with a mobile data carrier (RTLS transponder). This transponder is
fixed to the interior rear view mirror of the vehicle with a clamp (Fig.
14.2). Depending on the logical sequence, the vehicle is parked in one
of the parking lots close to production. If a vehicle is now recalled by
170

14.3 Application scenarios
the assembly finishing system, the location of the vehicle can be retrieved
or can be displayed via a web browser on the Intranet.
The use of RTLS saves on time consuming searches when trying to
find the vehicle. The finishing employee can directly access the vehicle
and bring it to finishing. Before the introduction of the RTLSbased
system a number of finishing employees were engaged in the
search of the vehicle. Especially during the run-up of a new vehicle
type there is a high demand for the postponed finishing of individual
vehicles because the finishing processes are not yet fully harmonized.
Because many thousands of vehicles are being pre-produced
for “Day X”, a substantial savings potential arises only for this instance.
By introducing a new transporter model, a utility vehicle manufacturer
also relies on RTLS technology in order to increase production
transparency, to shorten processing times, and to improve the reliability
of delivery. The radio infrastructure in the factory consists of
18 Moby-R antennas, 19 triggers, and 500 RTLS transponders.
The data carriers are parameterized in such a way that they transmit
a signal (blink) every four minutes. These blinks are received by at
least three time-synchronized and LAN-capable Moby-R antennas
Fig. 14.3 Sicalis RTL graphically shows the vehicle position on a map
171

14 Vehicle logistics
over a distance of up to 300 meters, and are transmitted via the existing
network to the processing software. A central server establishes
the current position of the data carrier, based on the lapsed time differences
of the signal between antennas (and thereby the position of
the vehicle), and saves the information in the database. The mini
transporters that are furnished with transponders at the end of the
finishing line can be located in the external parking lots in real-time
with a precision of about three meters.
The production employee uses the Sicalis RTL map application on
their PC in order to quickly locate a vehicle (Fig. 14.3). In this way the
employee obtains an overview of all the parked vehicles and can
search for a particular transporter. This information enables the employee
to collect the vehicle and bring it to the finishing process.
Since all of the vehicle movements are captured by Sicalis RTL in realtime,
the transparency of the finishing process is improved significantly.
In this way production bottlenecks and individual “long standing
time vehicles” are quickly detected. It is possible to react immediately
to the insights that were gained. The introduction of the locating
system leads to significant time savings on the processes and thereby
leads to substantial cost savings due to the absence of all the vehicle
search times.
14.3.2 Fleet management for public local transport
In public local transport, reliable compliance with schedules is an essential
factor for customer satisfaction. A well organized fleet is the
basis for date reliability and besides that it is a prerequisite for the
cost efficiency of a fleet. The central element of fleet management is
the management of schedules (Fig. 14.4). This is where the allocation
of drivers to their routes and vehicles takes place. In maintenance
management, the vehicles are prepared and maintained for the next
trip. It provides vehicle data such as the exact location, mileage, tank
Fig. 14.4 Planning components for schedule management
172
Maintenance
management
- Parking spaces
for buses
- Servicing plans
- Mileage
- Fuel fill level
- Repair times
Schedule
management
Allocation of driver
to line, vehicle and
parking space
Schedule
- Routes
- Departure times

14.3 Application scenarios
fill, and maintenance cycles as a valuable contribution to the schedule
management system. Maintenance tasks are only necessary if the
maintenance interval does not allow allocation to the shortest route
of the schedule. Allocation of vehicles to routes can now be executed
in a focused fashion.
The use of a RTLS system can supplement the automatically created
documentation with permanently available location information of
the vehicles on-site. It is, for instance, possible to make statements in
due time about when vehicles leave maintenance and can be scheduled
again. Statistical service life figures established from long-term
studies at individual work stations serve as a prediction of the processing
times of the maintenance process. Possible bottlenecks of the
process or the unfavorable arrangement of workstations are identified.
Finally, time savings on the maintenance process is achieved because
the automatic detection of parking spots allows for the quicker
location of parked vehicles. Idling times of work stations can also be
eliminated in this way.
It is possible to achieve the overall maximum flexibility of the allocation
of drivers and fleet up to shortly before departure by using RTLS.
This yields significant advantages:
• Minimized risk of failure of the allocated vehicle
• Quick reaction to failures
• Increased schedule adherence through planned collection
times of vehicles
• Increased economic viability through more even utilization
and a possible reduction of the fleet
• Targeted, demand-controlled tank filling (instead of daily filling)
through the allocation of vehicles with partially filled tanks to
short routes
• Reduction of maintenance work due to the utilization of the full
maintenance interval
• Automatic documentation of work steps.
Concrete implementation
Fig. 14.5 shows the site of a bus company. Vehicles arrive at and leave
the site via an entrance and exit furnished with an access control system,
based on RTLS. Every bus is driven into a wash bay as the first
step of the maintenance process.
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14 Vehicle logistics
Fig. 14.5 Operating site of a bus company
Subsequently, the buses are able to head for individual service stations
and the filling station, depending on what is required. The requirement
for maintenance is established by consulting the maintenance
documentation and fleet management planning system. The
parking of finished busses is preferably done in parking halls in order
to be able to immediately provide ready for use vehicles, even in winter.
Vehicles waiting for a service station are parked outside. Shortly
before the departure of a bus, the driver gets a printout in the office
with the route, bus, and location of the bus, and can thus commence
their trip in the shortest possible time.
Moby-R is again used as a locating system. Antennas were installed at
the filling station, parking halls, and parking spots and outside. Magnetic
field triggers are used at the access control system at the entrance
and exit to the site, at the washing bay, and service stations.
14.3.3 Dock and yard management
The dock and yard management system can also be optimized by
RTLS technology. This includes the optimization of traffic flow on a
factory site, access control, and allocation of loading positions. For an
Austrian automobile manufacturer, loading and offloading up to
174
Parking spaces
5
Parking spaces
5
3 Service stations
(gas station, wear
and tear, servicing,
damages)
2 Washer system
Garage for
maintenance work
Gas station
(outdoors)
Parking spaces
4
Office buildings
Parking facilities
5
Entrance / exit
1
Parking spaces
5

14.3 Application scenarios
1,800 vehicles per day must be accomplished – a logistical and organizational
challenge, not only for goods receiving, but also for factory
security, who must monitor and document every entry and exit.
Through a RTL-based vehicle control system logistics planning and
security are supported in their tasks. The clue: Instead of masses of
paper and subsequent manual input of data, RTL offers “electronic
access authorization” by a transponder.
The logistics process is shown in Fig. 14.6: Trucks first drive to a waiting
area outside of the factory in order to report to goods receiving.
The drivers receive a Moby-R transponder, which is assigned to the
truck from there on. From this point in time the loaded goods are visible
for the planner in the factory and can be accessed by a mouse
click. As soon as the planner calls for the truck, its vehicle registration
number, and the docking station appear on a large display screen. At
the same time, the truck is authorized to enter the factory. When the
truck arrives at the gate, a trigger identifies the transponder, checks
the access authorization, and opens the boom.
External
goods traffic
Container
traffic
Registration: allocation of
data carrier and waiting position
Data carrier handover,
release for exit
Unloading / loading
Delivery process
Internal
goods traffic
Works entrance
Works exit
Fig. 14.6 Processes in operational logistics
Finished
vehicle shuttle
With a fixed allocated data carrier
Permanent
access approval
When the truck leaves the factory, the system ensures that the transponder
is handed back again. For trucks loaded with vehicles to be
delivered, the system automatically displays the list of vehicles contained
in this delivery order together with detail information on the
security screen (Fig. 14.7). The security employee at the gate can eas-
175

14 Vehicle logistics
Fig. 14.7
Two RTLS triggers (circled) serve the monitoring of the factory exit
ily check the actually loaded vehicles regarding quantity, model, and
furnishing in this way. Shuttle trucks, official vehicles, or visitor vehicles
with permanent access authorization receive a personal data carrier
and can access the factory directly.
The employed Sicalis RTL system enables targeted and prioritized
control of the supply flow: Lines at the gate such as before the introduction
of the system are something of the past. Material arrives at
the offloading point “just in time”. The number of trucks on-site is
reduced. All the vehicle movements are transparently saved in the database
by Sicalis RTL. In case of damages, claims for alleged waiting
times at goods receiving, the archived transaction data can be used to
check the actual waiting times.
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15 RFID at the airport
Regina Schnathmann
For operative and economical considerations in the aviation industry,
the optimization of processes is the priority concerning top reliability
and security with simultaneous, consistent cost optimization as its
focus.
15.1 Processes in airport logistics
Increasing international competition with new participants (especially
low-budget airlines) and more stringent security regulations
alongside parallel growth in the number of passengers and airfreight
quantities have considerably influenced the framework market
conditions throughout the past few years. Innovative technologies
also provide an answer to the changed framework conditions and
future requirements that create lasting benefits both in the area of
processes and with regard to the costs. Solutions based on RFID technology
that are also being used more and more frequently at airports
are providing an important contribution.
Above all, RFID applies its strength in places where there are large
numbers of objects (Fig. 15.1). Where there are millions of passengers
with corresponding large amounts of baggage and air-freight
volume, which is always on the increase, RFID provides several advantages
for use in airports and for airlines for passenger, baggage, and
cargo logistics. The highest optimization expectations within passenger
handling are in the area of passenger tracking.
The latest figures speak of a volume of transported pieces of baggage
of approximately 2.25 billion items per year [1] with an upward trend.
The requirements resulting from this trend will not be manageable
using the technology that has been used to date. New technologies
and systems are called for that enable comprehensive, integrated
baggage management worldwide, marking the baggage clearly and
securely, guiding, tracking, following and delivering and, if neces-
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15 RFID at the airport
Access and driven
access control
Inventory localization
Fig. 15.1 RFID technology in the airport area
sary, tracing it quickly – all of this for the entire course of a passenger’s
journey.
By tracking passenger flows, airport operators hope to increase security
and improve the predictability of their processes. This would be
accompanied with the minimization of the resources used. The use of
RFID-based tickets and corresponding display systems provides the
air passenger more and current information, for example for finding
the correct departure gate or individual flight timetable changes as
well as on other data relevant to travel. Customer retention and also
customer satisfaction can be increased considerably. However, the
passengers have some reservations with regard to data protection.
In addition, in the check-in area the persons responsible for the introduction
of RFID expect automation of the sub-processes: registration,
baggage check-in, and receipt of the boarding pass to a large extent.
Ticketless flying is on the rise, especially among business travelers.
The possibility also to do without the typical boarding pass as a paper
document in the passenger process makes the use of the new technology
attractive. The data required for the current flight could be input
to the airline’s individual bonus card in the future.
178
Employee
identity cards
Baggage handling
Ticketless
flying
Check-in registration
Inventory identification
(apron vehicles, catering trolleys, pallets)
Passenger
tracking
ULD tagging
Baggage sorting
Baggage
handling
system
VIP smart cards
Cargo handling

15.1 Processes in airport logistics
The other large area of use for RFID systems is baggage transport and
its several sub-processes. Especially large-scale airports such as
Frankfurt, Dubai, and Peking transport the baggage items on kilometer-long
track systems in individual containers. Sorting systems ensure
that the baggage items are correctly discharged at the right
place. An RFID system here consists of the combination of a mobile or
stationary read-write device and the transponders on the transport
containers. When integrated in baggage management, the system can
automatically determine where the case or container is and its status
in all the transport sections. This makes goods flow transparent and
enables the complete documentation of all the baggage flows.
In particular, for baggage handling and sorting, the desire to replace
traditional barcode marking attached to baggage at check-in exists.
Although the initial costs are lower if barcodes are used, the follow-up
costs entail higher expenditure. As when you wear glasses, the barcode
scanner must be cleaned regularly at short intervals. If this is
not performed, the read rate worsens and the costs increase. According
to the latest figures, misdirection or baggage loss costs the industry
almost 24.4 billion euros per year. Cost advantages arise here
through speeding up handling and comparatively low servicing
costs. Often inefficient and expensive tracking of the baggage items
becomes redundant through the automatic and complete monitoring
of the goods flow. This, therefore, increases the entire throughput in
the logistics chain.
A further positive effect results with regard to customer benefits: the
passenger can be provided with detailed information regarding the
location of their baggage at all times. Tracking jobs when searching
for baggage becomes simpler because it is easier to reconstruct
where the baggage has been transported to. This should mean that
waiting for a mistakenly incorrectly checked-in baggage item at the
destination airport will soon be outdated. Due to the increased security
measures, it is conceivable that RFID solutions will be used as
transponders on cases upon entering airport grounds. Unattended
baggage could be removed quickly and efficiently using RFID or allocated
back to the passenger.
Currently, RFID systems are most frequently introduced for internal
company applications. Contactless employee identification cards are
used at several airports within the scope of access and entrance controls.
At the same time, RFID transponders are used to localize and
identify inventory. Examples of this include locating trolleys within
the airport building and tracking apron vehicles.
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15 RFID at the airport
As for all other RFID projects, the profitability through savings in the
process flows must initially be proven for airport applications. However,
in addition to this, security aspects play an important role when
investment decisions are made. As the business processes in airport
logistics are very clear for the specific area of airport logistics, they
can quickly be examined in detail. The major emphasis is placed on
the optimization potential by the long-term use of new technologies
and their introduction in several phases, ensuring the smooth continuation
of operations, and designing an unproblematic system
transition.
15.2 Areas of use for RFID in airport logistics
15.2.1 Process optimization on the airside and landside
Processes take place in different areas at airports: a distinction is
made between the airside and landside. The airside area includes all
the processes that take place after security checks and on the movement
areas for the aircraft. Access authorization there is highly restricted.
The landside processes take place where these restrictions
do not exist, e.g. where the terminal is, all the public roads, shops,
and hotels. Now, RFID technology is already used in several application
areas: for example, within the airport itself it is used to manage
catering trolleys. But RFID is also drawn on more and more for freight
transport. Various goods and machines must be tracked in the socalled
airside area. And ultimately, RFID systems are also used for servicing
valuable components within the transport systems. The transponders
that are used must be certified and approved by the Federal
Aviation Administration (FAA) or the German Luftfahrt-Bundesamt.
Along with baggage handling and baggage sorting, the important areas
of baggage-passenger reconciliation and the limitation of baggage
loss can be implemented using RFID systems.
Some examples of systems and applications that have been realized
at international airports or for international airlines:
• Cincinnati International Airport – Real-time flight information is
used to improve ground support functions.
• Newark International Airport – Airside vehicles are “tracked” in
order to hinder access by non-authorized persons in the protected
areas.
180

15.2 Areas of use for RFID in airport logistics
• The airline Air Canada – The catering equipment is tracked in realtime
in order to avoid loss and theft and to improve utilization.
• Hong Kong International Airport – The loading devices in the
freight area are equipped with transponders at Hong Kong International
Airport.
• Zaventem Brussels and Arland Stockholm – Baggage is transported
here in “old” and re-useable boxes that are automatically guided to
the correct loading points.
• Toronto and Vancouver Airports – Suppliers and staff can only
enter areas of restricted access through Smart Card entry controls.
• Swissair/Sabena – Zurich Airport – in order to make check-in and
access to the VIP lounge easier, approx. 70,000 “frequent fliers”
own Zürich Airport Smart Cards. Emirates Airlines offers its frequent
flier customers the possibility to use the e-gates at Dubai Airport
with their frequent flier card when leaving or entering the
country.
The major application area for RFID systems is on the landside that is
mostly observed below.
15.2.2 RFID on container transport container
transport systems
The current common equipping of logistics systems with RFID takes
place directly on the transport system containers. Instead of barcode
recognition, RFID technology is installed. Small modules with the
transponder are installed on the trays. The reader, antenna, and interface
module are located on the track system. The transponder contains
the data with the description, starting point, and target point.
RFID should in no way be seen as a mere “modern barcode” – RFID
achieves considerably more: compared to conventional technology
where the information where the container should be driven to is
provided to the system by the higher-ranking control level, this information
is already directly available on each individual container.
Therefore, the container can move faster and more securely within
the system. However, an RFID transponder is also superior in case of
short-term changes such as a gate changes as it is rewriteable (Fig.
15.2). RFID provides improved efficiency in baggage management.
Moreover, the installation of scanner gates becomes superfluous. Finally,
the read rate is far higher than for traditional barcode systems.
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15 RFID at the airport
Fig. 15.2 RFID technology in a container transport system (Photo: W. Geyer)
This reduces the total amount of misrouted baggage, in turn reducing
the baggage handling costs. RFID readers are easier to install, reliable,
resistant to errors, and more robust in “rough” surroundings.
15.2.3 RFID BagTag
The latest developments concern the identification of the baggage
items directly on the cases. The basis for this is the belt conveyor system
where the baggage items are placed loosely and are each
equipped with a so-called “BagTag”. With it, all the important and relevant
information is attached directly to the baggage. The system
components used for this purpose are based on the IATA (International
Air Transport Association) RP1740c recommendations. The
baggage items are equipped with UHF transponders here. The data is
read in real-time, processed, and provided to the superior baggage
management system.
With their Simatic RBS, Siemens has developed a reader station for
the new kind of baggage marking (Fig. 15.3). The new system was
tested using exhaustive long-term tests under realistic conditions in
the Siemens Airport Center in Germany in order to ensure functional
security and throughput for its practical application. One of its first
applications is at Wuhan Airport in China. The technology used is
easy to integrate in existing baggage transport technology. This simplifies
installation and commissioning, enables the precise planning
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15.2 Areas of use for RFID in airport logistics
of the time required for such and ensures system reliability from the
onset.
The system, which is tailored for baggage handling requirements at
airports, increases baggage management efficiency and is easy to integrate.
The read rate is considerably higher than for traditional barcode
systems: it is over 99 % under realistic conditions.
Fig. 15.3 RFID BagTag: on the left-hand side the RFID transponder in the
baggage trailer, on the right-hand side the Simatic RBS reader station
(Left photo: W. Geyer)
If we progress further with technological developments here, the reusability
of the transponders could also be an acceptable solution. In
this case, the RFID transponders would not be torn off and destroyed
after use as executed at present. Instead they would be reused several
times. A further solution would be to fully integrate the transponder
in the case. If the transponder already contained security-relevant information,
the second screening could be saved as the contents of the
case are already known. However, data protection plays an important
role here. We propose deleting all the data when leaving the airport
area. This could hinder access to the information stored.
15.2.4 RFID-supported servicing
For the service and maintenance areas of use, RFID systems are also
used to store the service history in the respective objects’ transponder.
Such marking is also worthwhile for high-value individual components
in a baggage transport system. In other words, the security
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15 RFID at the airport
for high-value products also justifies the use of RFID technology. The
important areas of use still include: maintenance and inventory
management systems and locating objects belonging to companies
such as fire protection valves, baggage trolleys, spare parts, and vehicles.
For example, at Frankfurt Airport, the fire protection valves have
been serviced via RFID for several years already. The legislators have
assigned long-term duty of proof of maintenance. The preparation of
job sheets in this connection was a challenge with regard to archiving
and also retrieving when fulfilling the obligation to provide proof.
Due to media breakage, there was also a high error quota: the order
data had to be entered in the data systems later and manually. Moreover,
no information with regard to services carried out could be
stored or attached to the fire protection valves. Therefore, it was difficult
to prove whether servicing had been carried out in an orderly
manner. With the RFID system, the service employee’s identification
card can now be directly recorded on location when servicing takes
place. The order data are provided to the employee via a handheld
device, which is connected to logging and mobile reporting back.
RFID is also used for identity card allocation and invoicing. It is, therefore,
possible to file orders directly with no media breakage and no
data loss as the data is entered once. Servicing can only be entered
after the transponder has been read into the system: therefore, proof
of the actual implementation of the work is provided.
15.2.5 Improvement in the catering area
The handling of the trolleys for passenger catering is a further area
where RFID technology is used. As established by IATA in an examination,
the total savings potential in this area amounts to nearly $470
million USD per year. What are the relevant indicators of these applications?
The area includes trolley tracking, vehicle servicing, and inventory
management – data gathering of the contents of the trolley tables.
Trolley tracking means that it is known where the trolley table is currently
located, either always or at key positions within the overall process.
On top of the information as to what is in the trolley, inventory
management of the trolleys includes data on the transponders, when
a trolley must be sent to a flight, when it must be returned to the supplier,
to the caterer or to the airline store. Here, it is important to have
a fast control of the food and drinks that have been delivered. It must
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15.2 Areas of use for RFID in airport logistics
be assured, at least for the traditional carriers who normally have a
contract with the caterers, that they are always served and that all the
flights are adequately equipped. A sophisticated selection of food and
drinks calls for good stocks of the most varied of items. Traditional
carriers do not earn any “additional money” by selling food. Quite the
opposite is true for the discount airlines: the contents and trolley
tracking are weighted differently by business partners.
For example, necessary repair work on the trolley is recorded on the
transponders. Moreover, the anticipatory servicing that is controlled
by the frequency of use, can be noted by the transponders. Airlines
and caterers see their greatest advantage in improved tracking here.
Content tracking is in the foreground of the thoughts made by authorities
and aircraft operators. Therefore, short-term advantages
due to RFID-controlled trolley servicing and content tracking are
achieved in all three process areas. For example, sample projects have
been carried-out at KLM and Lufthansa. IATA itself has made precise
process analyses in the catering area.
15.2.6 RFID in Cargo Logistics
The current air-freight figures from the Working Group for German
Airports [Arbeitsgemeinschaft Deutscher Verkehrsflughäfen (ADV)]
are increasing healthily. Similar to passenger developments, the cargo
volume is also rising steeply. In Germany alone, for example, the
air-freight volume by July 2007 rose by 4.3 % to nearly two million
tons. This trend also reflects the world market. In order to determine
precisely where the goods are, it makes sense to use RFID systems in
the cargo area. Transponders are attached to Unit Load Devices (ULD).
However, the application of RFID in all areas of logistics and warehousing
reaches beyond the aviation industry as external participants
(for example, logistics service providers) are also involved in
the process chain.
In case of goods production where the products are sent from the
production facility by overland shipment, then by air-freight and
again by overland shipment to the user’s works and where a continuous
information chain exists, it makes sense to use continuous RFID
with standardized logs and formats. Inventory management, maintenance,
and handling provide good application options for this technology
in the cargo area. Air-freight companies, therefore, frequently
have several thousand consignments per transport. In such cases, it
is an important advantage to know what goods are where.
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15 RFID at the airport
15.2.7 Advantages due to RFID
Although the barcode reading gates are cheaper to purchase than
RFID readers, they incur higher servicing costs due to their mechanical
complexity. Moreover, they have a lower reading speed than RFID
systems. Experts, therefore, see considerable cost advantages for
RFID systems in the area of baggage management when viewing processes
holistically.
What advantages do these systems offer customers? A baggage system
using RFID can be more secure for the passenger as cases are
thereby not lost. Especially with a view to the new large aircraft such
as the Airbus A380, fast passenger and freight processing are gaining
importance. While passport control processes passengers with epassports
faster, thus making check-in faster, baggage items with
RFID labels are loaded faster and more securely. The Emirates Airline
provides a concrete example of the increased comfort they offer their
passengers by using these systems. Owners of the frequent flier card
“Skywards Gold” can use a fast E-gate access at Dubai Airport.
The airport operators also profit from the introduction of RFID. The
automatic monitoring of the baggage flow decisively increases
throughput in the logistics chain, in turn lowering expenses for manual
tracking. Using RFID, the whereabouts of the baggage item could
become more transparent for the passenger. Finally yet importantly,
such a system also results in customer loyalty due to its higher transparency.
The increasing integration of the markets supports the use of RFID
systems. At the same time, the heart of the matter is to exploit the
competitive advantages by systematic recording and controlling complex
logistical interrelationships in the value-adding network. From a
purely economic viewpoint, the intensified cost and competitive pressure
on international markets supports more widespread use of RFID
systems. Above all, in applications and sectors, opportunities can be
discovered where productivity progress should be achieved through
improved automation. In total, the use of RFID will increase the transparency
of the supply chain and the transaction costs for the companies
will be reduced.
15.3 Perspectives
When developing RFID for air traffic, the focus is placed on measurable
benefits. The IATA develops special analyses, standards, and
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15.3 Perspectives
business cases for many promising applications. The analyses are
backed-up by application examples. If we look at the different airport
sizes, it becomes apparent that the greatest need to act is at the large
hubs. One focus of attention here is baggage processing and sorting
because the volume of baggage and freight incurred is rising by approx.
5-6 % per year. In order to cope with this volume, the reduction
of misdirecting and even loss of baggage is highly significant. A further
advantage: flight delays are reduced drastically by faster baggage
identification if a passenger does not show up.
RFID will also play an important role in passenger tracking. Baggage
and freight tracking und the fastest possible processing can only be
used efficiently if the passenger list is also complete and baggage and
passenger reconciliation has been successful. An electronic boarding
pass with an RFID transponder may prove to support this process.
RFID is more than just a technology for improving sorting performance
and accuracy. On the contrary, the full potential of the technology
is released if both the core processes and the supporting applications
are observed throughout the entire added-value chain and the
performance range of a system. Therefore, RFID is the key to creative
design of new applications and efficient processes.
References
[1] See SITA: 4th Annual Baggage Report, 2008
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16 Postal automation
Dr. Norbert Bartneck
Postal services are one of the largest logistics services worldwide,
considering the number of goods, letters and packages transported
as well as collected, sorted, transported between the sorting centers
and delivered (Fig. 16.1). These processes must take place at high
speed, with high quality at a favorable price and, therefore, require
optimized automation technology. Beside the mail-items as central
goods, the containers are further objects for postal logistics, and their
automatic identification is of central importance for process improvements.
Until a few years ago, primarily automation was concentrated on the
operative processes. Recently, monitoring and planning functions are
playing a more important role to increase transparency and efficiency
can further be increased. Examples of this include the administration
of stocks of transport containers, checking consignments for completeness,
checking consignments dispatched for the correct addressees,
and monitoring of the trucks on the company’s premises. RFID
offers new opportunities to record the information required regarding
the objects efficiently.
Letter mailbox
post
Counter
Preparation
of business post
and packages
Fig. 16.1 Operative processes for postal logistics
188
Collection
Abholung
Large
deliverers
Sorting
outgoing post
Ausgangs-
Sortierung
Sorting
incoming post
EIngangs-
Sortierung
International International
Delivery
office
Zustellamt
PO
boxes
Mass receiver

16.1 Auto ID in postal logistics
16.1 Auto ID in postal logistics
The marking and identification (Auto ID) of the objects to be processed
is a central topic for the automation of logistics. Automatic
identification is used to decide what particular object is being processed
or what object category and how it must be processed, for example
the direction. Such identification can have two different forms:
as information readable by humans (for example, a written address)
or as a machine-readable code (for example a barcode). Automatic
recognition takes place via optical systems or radio systems (RF readable).
However, for processes requiring manual work steps the information
should also be readable by humans.
Two forms must be distinguished in the contents of the Auto ID: on
the one hand, identification using a unique number and, on the other
hand, storage of relevant data (for example, the address of a letter).
Various Auto ID variants are used for postal logistics (Fig. 16.2):
• Text information such as the address as logistical information for
controlling mail processing or additionally attached notes such as
the sender or advance provisions. The text information can be read
automatically by using optical recognition systems.
• Linear barcode with the address as coded logistical information
(AdressCode) or with a item ID, recorded using optical reading systems.
Forwarding address
Target address
Business reply mail
Securing payment
Fig. 16.2 Various Auto ID processes at the consignment level
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16 Postal automation
• 2D barcode, being able to store a larger data quantity due to its twodimensional
structure (for example stamps).
• Fingerprint, an innovative method that uses the characteristic
visual features of a mail-item for its identification (for example, the
location and content of the address field and stamps).
• RFID transponder with passive or active technology.
All of these technologies have their specific strengths. For example,
only text information can also be read and written by humans without
additional technical devices and also attached (written). On the
other hand, barcodes are more easily machine readable and very
cheap to attach. Address codes enable processing without access to
central servers and ID codes enable multiple-stage determination of
an address (for example, first the destination location, then the road,
and then the house number). On the other hand, the fingerprint can
be applied without any additionally attached codes, meaning a considerable
advantage for business mail and print products. Last but
not least, RFID offers specific advantages such as group recording,
writability, and reading without visual line-of-sight. In general all
Auto ID technologies are used in different applications.
Mail items
Whereas letters and flats from private senders or small companies
contain their information mostly as printed text or handwritten addresses,
mail from large suppliers and packets often include additional
barcode information (linear and 2D codes). The attached address
in plain text is decoded for sorting and transferred to the sorting
machine. As all postal consignments must be sorted at least twice,
an extra code is added for simplification purposes. The fingerprint
can be used for applications where the later attachment of a barcode
is technically awkward or disturbs (the entire letter is photographed).
This is of special advantage for flats to which it is expensive to attach
a barcode later due to the wide variety of envelope design.
Containers
Today’s solutions note the information required (direction, mail type)
on labels that are attached to the containers. This information is attached
extra as a barcode for automated solutions where the containers
are transported to the processing stations using automated transport
systems. Innovative approaches to automatic container manage-
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16.2 RFID – the innovative Auto ID technology
ment use RFID technology as its strengths (group reading, no visual
contact required) can be used well here and the cost disadvantages as
opposed to a barcode are less relevant as the transponders are reused.
Trucks
Solutions used to date identify trucks and loading devices either by
using their number plate, which is the official vehicle’s number plate,
or a transport number. Similarly to container management, innovative
approaches to automatic depot and transport management use
more and more RFID technology as the high range of RFID enables
considerable process improvement.
16.2 RFID – the innovative Auto ID technology
Whereas postal logistics has successfully used barcodes for several
years, the importance of RFID technology has only been gaining
ground during the past few years. Due to the cost of the transponders,
the RFID applications’ focus is on containers and transport vehicles.
As the RFID transponders are used several times for these applications,
the question of costs plays a lesser role here than for mail
items where the transponders can only be used once. UHF technology
with passive transponders, read ranges of up to ten meters and robust
read rates has been applied for postal automation. The simplest
transponder form, the so-called Smart Labels, cost less than 0.20 euros
and is well-suited for the identification of the typical plastic containers.
On a metallic surface as can be frequently found on containers
enable sufficiently good readability. Active transponders are used
for applications that require a longer range. In this case, tags can be
used in the 2.45 or 7 GHz range, achieving ranges of 50 meters or
more.
To capture the RFID transponder information in postal applications,
various different system configurations are required, depending on
the specific requirements and the existing environment.
Capturing individual mail items in sorting systems
Sorting systems can be divided in sorting machines designed for high
throughput for large letters and flats and in material handling systems
for packets and containers. For cost reasons, RFID does not play
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16 Postal automation
a practical role for letters and flats today. Special scan gates are used
for capturing the information along the conveyor systems or RFID
tunnels that read or program the RFID transponders. They are installed
over the transport route and are capable of separating sequential
objects with a high degree of reliability.
RFID gates
As opposed to small containers that are transported over automatic
conveyor routes, the large transport containers (roll containers, pallets)
are transported manually or by using ground conveyor vehicles.
Stationary installations (RFID gates), which record the RFID transponders
as they pass through (Fig. 16.3), are suitable for applications
where the containers are transported through defined gates. The antennas
are either integrated directly in the dock doors on the sorting
center’s ramps or realized with specific constructions. In order to determine
the actual direction of transport, these gates are equipped
with additional sensors. These are often simple photoelectric barriers
that are able to determine the direction of an object moving through
a gate. RFID gates enable the simultaneous capturing of a large transport
container and the included letter boxes.
Fig. 16.3 A typical gate construction
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RFID localization
16.2 RFID – the innovative Auto ID technology
Applications that enable permanent determination of the position of
containers in a room or a plot of land require active localization
(RTLS). For simple solutions, it suffices to know that the object
searched for is in the capturing range of a reader unit. Higher-performance
systems enable the precise localization of the object by using
several receiver devices. These locating systems achieve nowadays
ranges of 50-100 m indoors and 100-200 m outdoors, with an accuracy
of one meter.
Recording using mobile readers
Capturing data by mobile readers is a common recording method in
the logistics area. The information regarding the object (packet or
container) is read by employees using an RFID handheld reader and
transmitted to the corresponding system together with further information
(for example, the measurement position, workplace, and
time).
16.2.1 RFID-based application systems
RFID technology is constantly gaining ground at the container and
load carrier levels for postal applications of which the most important
are described below.
Asset management (Asset tracking and management system)
Crucial assets are pallets and roll containers for transporting the mail
items in the postal sphere as well as Unit Load Devices (ULD) and pallets
for air cargo. The large quantity of these assets represents a considerable
value for the companies. Without systematic control, the
containers are subject to continuous loss and substantial consequential
costs. Prompt and locally suitable availability of the containers is
decisive for efficient implementation of the transport processes.
Asset management provides functions for tracking, compensation,
and maintenance of these assets, including comprehensive reporting
and high-performance event management. The basis of these functions
is the continuous recording of asset movements and the constant
inventory enabled by such, based on RFID. Normally, the containers
are moved by defined routes from the sender to the receiving
customer. The most important points on these routes are the en-
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16 Postal automation
trance and exit gates in the sorting centers or the depots where automatic
capturing of the outgoing and incoming assets can be made using
RFID gates. For this purpose, the assets are equipped with passive
UHF transponders. If the applications additionally require recording
asset movements within large halls or open-air areas, then active localization
solutions are needed.
Dock and yard management
The transport of the consignments to and between the sorting centers
is carried out by trucks, consisting of tractors and various load
carriers (trailers). Correct and efficient coordination and monitoring
of these load carriers to and in the depots requires comprehensive
systematics – using RFID as the information carrier. This includes
checking entrance approval, allocation of ramp occupancy, allocation
of the waiting and parking positions, as well as the provision of empty
trailers. RFID plays a central role in the automation of these processes.
A comprehensive dock and yard system requires the recognition
of the transport units at defined positions (for example, the entrance
to the depot or the loading and unloading ramps) as well as localization
on the entire yard. To realize this, the loading devices are
equipped with passive UHF transponders that are recorded by readers
at the access gate and the ramps. For localizing the trailers that
are on the depot premises, the loading devices are additionally
equipped with active transponders for locating purposes.
Arrival and dispatch management
A further application field where RFID technology asserts its advantages
is the delivery and distribution process in the sorting centers.
While checking the correct compilation of the delivery is interesting
upon arrival, incorrect transport destinations should be avoided
when distributing. Upon delivery, the frequently prepared list of the
letter containers as notified in advance with the consignment quantity
is used and reconciled with the information recorded by RFID at the
sorting center entrance. It can then be established whether a delivery
is complete and correct.
When the consignments are delivered, there is a risk potential of
sending them to an incorrect destination (misrouting). Misrouting
causes direct costs due to the then necessary extra transport as well
as indirect costs resulting from customer dissatisfaction. The information
provided regarding the intended direction of a transport, is
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16.2 RFID – the innovative Auto ID technology
compared with the direction allocated to the containers, thus avoiding
misrouting. The transport containers that are currently mostly
plastic have to be equipped with UHF labels or metal-compatible transponders
for an RFID-supported solution. RFID gates installed at the
entrance and exit gates are used to capture the container data of when
to transfer, which are read in bulk when passing the gate and transferred
via middleware and the integration platform of the application
software.
Mail-item tracking
Although RFID technology at mail-item level generally does not yet
play a role due to the costs involved, it is already highly significant at
quality control level. In order to ensure that quality of the processes
and to identify possible weaknesses, the run-times of the items on the
individual routes between the sender and recipient must be monitored.
Two solution concepts are used for this task: on the one hand,
a sensor-based measurement system that stores acceleration data on
an electronic test letter and enables conclusions regarding the duration
of different steps (for example, letter box, mail collector) when
these data are analyzed at the end of the transport (for example, letter
mailbox, post collector). This system works without a network-wide
infrastructure but it requires technically more complex test letters. A
future extension of the test letter will include a navigation component
to enable a time measurement as well as precise geographical tracking.
The second concept uses RFID-based test letters, which are recorded
at defined measurement points. A system such as this, for historic
reasons is fundamentally based on relatively expensive semi-passive
HF technology and is used by the international post organization
(IPC) to determine the transportation time between the national postage
companies. The on-going development and standardization of
UHF technology makes it possible in the meantime to execute network-wide
tracking using test letters, which are equipped with simple
UHF Smart labels.
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16 Postal automation
16.3 Outlook
From the innovations that are under development, three topics
should be mentioned with which we expect to achieve high additional
application potential for postal automation.
16.3.1 Printable transponders with polymer technology
One hurdle when introducing RFID technology at the consignment
level is the transponder price. We expect great progress here with
polymer technology with which we will succeed in manufacturing
RFID chips using a mass-printing process and, therefore, combining
the functional strengths of RFID technology with the price advantages
of the barcode. Chapter 18 describes the details of this technology.
16.3.2 RFID transponders with visual, readable information
As humans play an important role in the post logistics process chain,
they must be able to access the relevant control information without
needing additional technical devices. If a barcode is the information
carrier, this is achieved by printing the plain text information on the
labels next to the barcode. If the RFID transponders are written contactless,
alternative technologies are required to achieve visual readability.
Various projects are working on technologies to make the relevant
control information from the information carrier visible.
16.3.3 “Internet of things”
Chapter 21 presents a future vision of logistics, whereby RFID plays a
central role as an information carrier. Analogous to internet data, the
objective is to control goods flows as flexibly as possible using local
intelligence from the starting point to the target point. This means
that the transport systems no longer depend on a central control system
and a networked information system as the objects save the information
locally. The transport process can adapt independently and
flexibly to changing situations. The local control concepts, software
architecture, and RFID technology are worked on in large research
projects managed by the Fraunhofer Institute for Materials Flow and
Logistics (IML) and with participating industrial partners such as Siemens.
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16.3.4 RFID in future postal logistics
16.3 Outlook
Liberalization and decentralization of postal services will further increase
the requirements of postal logistics regarding productivity,
quality, and flexibility. Postal service providers offer new services
(3PL: Third Party Logistics, external logistics service providers) and
the processing of the post consignments is increasingly implemented
by a network of service providers. All of this requires a high degree of
transparency and controllability of the processes. Clear-cut interfaces
must be created with regard to responsibility and costs. This offers
opportunities for high-performance RFID solutions that will make a
considerable contribution to master the challenges to future postal
logistics.
197

17 RFID in hospitals
Thomas Jell
Headlines such as “Scissors left in patient” or “Babies swapped after
birth” keep appearing in the media. It is, therefore, not surprising
that doctors and hospitals are increasingly confronted with the demand
for more security for patients. On top of this, there are increasing
demands by patients regarding their care, which additionally
challenge the healthcare sector in times of tight budgets. Whether it
is for the identification of patients, dosage of drugs, or tracking theater
instruments and staff – with modern IT and Radio Frequency
Identification (RFID) clearly improved security and care of patients is
possible. Another aspect in favor of radio technology: Cost savings as
well as faster, simpler, and yet secure management of patient data.
17.1 Potential of RFID in the health sector
Many decision makers can hardly imagine that data exchange via radio
suffices to sufficiently and correctly care for patients. They do,
however, become increasingly aware that the use of modern IT in hospitals
can increase patient security or can even save lives. Results of
RFID pilot projects in the USA and Germany already show a huge potential
for the small chips in the health sector.
An example of this is the location of foreign objects, so-called “alien
objects”, which are left behind in the bodies of patients during operations
with an average probability of 1:3,000 to 1:5,000 despite rigorous
manual checks. In addition, this frequency rises with often unforeseen
procedures. Objects are more frequently left behind in unusual
operations and in emergency situations the risk is nine times
higher. Consistent tracking of theater equipment with the aid of RFID
transponders, as is currently being tested in the “Klinikum rechts der
Isar” in Munich, can significantly reduce this risk.
The results of a study by the action group for patient security in 2007
also call for increased use of RFID in hospitals: Because one in every
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17.2 Reference projects
thousand of the approximately 17,000 fatalities in German hospitals
could have been prevented. In the USA 44,000 to 98,000 patients die
annually due to incorrect treatment or imprecise work. Solutions
such as the RFID wrist straps that are being used in the “Klinikum
Saarbruecken” or the patient card with RFID chip used by the MedicAlert
organization in the USA, enable doctors to uniquely identify patients
and provide important information about the case history or
allergies. Mix-up of data or even people as well as drug errors can be
prevented efficiently in this manner. Hospitals can at least partially
protect themselves against economic damages and threatening loss
of their good image due to mistakes with far reaching consequences
or medical errors with the aid of RFID.
17.2 Reference projects
17.2.1 Jacobi Medical Center and Klinikum Saarbruecken
At the Jacobi Medical Center in New York, a RFID pilot project for the
identification of patients was started for the first time in 2004. Due to
the radio chips, doctors and health care staff can identify patients
quicker and easier and can access patient data easier and more securely.
The Klinikum Saarbruecken is currently successfully testing
the same solution, for which the US hospital was awarded the prize
for the best medical innovation by the Health Care Research and Innovations
Congress (HCRIC) in 2005.
In Saarbruecken, selected patients of the station for internal medicine
are participating in the project. They wear wrist straps with integrated
RFID chips on which a number is saved, which is comparable to a barcode.
Doctors and health care staff read this number within seconds
with a mobile unit, for instance a RFID-capable PDA, tablet PC, or mobile
scanner, and immediately obtain important information for drug
security such as age, weight, and size of the patient as well as their
case history and measurement and laboratory values (Fig. 17.1). Hospital
staff can then update this data during the course of treatment.
This allows a more precise and faster input and transmission of the
diagnosis, reduces error sources, saves error-prone paperwork, and
creates more time for attention to individual cases. Modern encryption
technology guarantees protection against unauthorized access.
A database with evaluation software, the electronic prescription system
by RpDoc Solutions, verifies the correct allocation of drugs,
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17 RFID in hospitals
Fig. 17.1 Reading patient data with a RFID-capable PDA within seconds.
based on the saved information. This ensures that the right patient is
administered the right dosage of the drug at the right time in the
right way. In case of an error, the system switches to red and explains
the reason. This intelligent helper can save lives – for instance, in cases
of illnesses such as kidney insufficiency, where even small wrong
dosages can be fatal. Besides for increased security, the expert program
offers another advantage: It knows the exact composition of the
prescription and calculates the exact price of the drug per patient per
day. If possible, the system then recommends cheaper equivalent generic
drugs in order to save costs.
Another advantage for patients is that they can make enquiries themselves.
They can, for instance, enquire their state of health via an information
terminal. This includes blood pressure, weight, treatment,
and discharge dates. Furthermore, they have the option of informing
themselves regarding the diagnosed illness and common types of
therapy in many different languages.
17.2.2 MedicAlert
Siemens IT Solutions and Services together with MedicAlert in the
USA are testing the use of RFID, in order to improve the emergency
treatment of patients. The non-profit organization is a reliable part-
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17.2 Reference projects
ner for the secure management of patient files and allows the exchange
of medical information between patients and service providers.
Up to now the approximately four million members were wearing
a necklace with a medal onto which the identity of the bearer was engraved.
Emergency staff then had access to the most important medical
data via a 0800 telephone number.
Since the end of 2006, some 3,500 MedicAlert members have been
furnished with a plastic card with an integrated RFID chip. This allows
smoother access to important information such as one’s general medical
condition, case history, or allergies. This is of cardinal importance
for emergency treatment of patients. Information about the patient’s
doctor and closest relatives can also be lodged online with MedicAlert.
Emergency staff can identify the person within seconds via a PDA
with RFID reader, even through one’s clothing or the wallet. Therefore,
from an information technology point of view, nothing is in the
way of optimal and safe treatment at the site of an accident.
When admitted to the California State University Hospital, the patient
passes two RFID readers installed at the entrance to the emergency
ward. After the RFID card has been read, they automatically establish
a secure connection to the comprehensive MedicAlert database. Hospital
staff members thereby immediately have comprehensive information
at their disposal to treat the patient. From a technical point of
view the patient card of MedicAlert is comparable to the German
health card, whereby its implementation in the USA was many times
faster. While advantages and disadvantages as well as data privacy
legislation is still debated in Germany, the value of the RFID chip card
has already convinced many Americans: Uncomplicated access to patient
data expedites the diagnosis, avoids test repetitions for already
diagnosed illnesses, improves the chances of detecting hidden illnesses,
and improves the quality of care and security standards. Concerns
regarding data privacy were solved quite simply: Patients enter
the data for their files themselves via a web portal and the card reliably
takes over the identification. If necessary, a doctor is available for
assistance.
17.2.3 “Klinikum rechts der Isar”
The “Klinikum rechts der Isar” (University hospital on the right hand
side of the river Isar) of the Technical University of Munich is currently
investigating the potential of RFID technology together with Siemens
at different levels – from tracking of abdominal covers to over-
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all theater management, also involving suppliers. The objectives are
multi-layered: Besides for a higher level of security for patients, the
hospital aims for more exact planning of resources and operation
procedures as well as optimized logistics. The workgroup “Minimalinvasive
Interdisciplinary Therapeutic Intervention” (MITI) officially
started a RFID project in March 2007 after two years of preparatory
work, which is intended to run until 2010 for this purpose.
Two aspects are in the foreground in the theater of the future: To minimize
patient suffering as much as possible as well as to improve and
expedite all the work procedures (Fig. 17.2).
Fig. 17.2 RFID could soon reduce the risk of errors during operations
In the first step, MITI managers and the superintendent Prof. Hubertus
Feußner along with his colleagues will investigate how abdominal
covers can be tracked during an operation. Each abdominal cover is
fitted with a transponder consisting of a micro chip with a copper or
aluminum antenna. The readers required for reading the chips are
situated directly underneath the instrument side board, underneath
the operating table and in the container for used abdominal covers.
Abdominal covers can be identified uniquely via the chip code.
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17.2 Reference projects
The “Klinikum rechts der Isar” profits in a number of ways through
the use of radio chips: On the one hand, each of the abdominal covers,
which can be reused up to 20 times, can automatically be sorted and
replaced after the specified maximum number of cleaning and disinfection
processes. This life cycle management will be the task of the
laundry and is to be implemented for operation in 2008. On the other
hand, it can be verified automatically how many used abdominal covers
are in the container and how many are on the side board.
If this number deviates from the initial count, the system triggers an
alarm on a theater monitor. Normally, two employees always manually
count and verify all the operating utensils before and after an operation.
RFID can in the future present another security factor and reduce
the risk of error.
In a second phase of the project, MITI will furnish theater staff with
transponders in order to exactly track their movements at the workplace.
This will allow a workflow prediction, which will lead to the
highest degree of efficiency and security. The RFID system could for
instance recognize when an operation nears its end and then automatically
trigger processes: Theater staff and the anesthetist are informed
that the next patient must be prepared for the operation. This
system could in the same way detect unforeseen procedures and call
for support. Scenarios such as these serve both the security of patients
and an optimal utilization of resources and have a positive effect
on the cost structure of the hospital.
Doctors and theater staff attach an identification card with a RFID
transponder in the frequency range of 868 MHz for purposes of tracking
presence and roles. No personal data is stored on the card, only
role-related information such as “operating doctor” or “anesthetist”
is entered. Thereby, potential criticism regarding data privacy is already
curtailed. Antennas in the room register the movement of theater
staff and transmit this data to the reader. After completion of the
operation, each team member returns their card. Capturing of each of
the actors when entering or leaving the theater provides valuable information
regarding the phases of the operation.
In order to further increase the security of the patient during operations
and to prevent unnecessary suffering, the MITI team has further
visions for the future: Fitting of theater instruments such as needles,
scissors, and clamps with tags. Here, one would have to wait until
suitable chips (acceptable size, temperature resistance, etc.) are available
on the market. From a financial point of view the use of RFID is
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17 RFID in hospitals
viable for the hospital: On average, costs of USD 90,000 arise for an
abdominal cover that was left behind, if patients submit claims.
17.3 The economical value of RFID
Regarding the use of RFID in the environment of patient processes,
there will always be potential for technical improvement. Despite
that, the current state of development is such that it allows worldwide
marketing of RFID solutions in the health sector. The challenge is in
convincing the responsible persons in hospitals of the economical
value of radio technology and of achievable return on investment
(ROI). Experts assume that hospitals can expect savings of single figure
millions just by the reduction of drug errors with RFID. Besides
for increased patient security, tracking and tracing of abdominal covers
and theater staff can improve the economic viability of hospitals
and relieve employees. In view of all these aspects, the substantial
RFID investment could be amortized within a foreseeable period.
Hospitals with maternity wards will in the future not be able to avoid
the introduction of RFID technology for the sure identification of
newly born babies because of economic reasons. In order to gain parents-to-be
as customers, they must be convinced of the quality of care
for their offspring in the hospital. This includes keeping the risk of a
baby mix-up as low as possible – and RFID makes this possible.
17.4 RFID in the future
Not only the abovementioned RFID projects in the health sector
sound promising in view of improved patient processes. For the
planned introduction of a full RFID identification system, also for the
tracking of persons, for instance in the Imaging Science Institute (ISI)
in Erlangen, Siemens, together with its partners, is developing new
solutions for the improvement of patient security in 2008. In addition,
all the involved parties continuously improve successfully implemented
solutions.
Radio range
For instance, the company successively improves radio range. Currently,
the read-out of the standard radio chips at a frequency of
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17.4 RFID in the future
13.6 MHz, and mobile readers up to a range of 15 cm, functions very
well. However, radio radii of up to one meter are requested by users.
Only then can RFID chips of highly contagious patients be written
and read without a problem and without the risk of infection.
Dosage of drugs
The Munich researchers also focus on innovation in order to improve
drugs and with that patient security. An automatic dosage unit could
be coupled to the expert system in order to reduce error sources in
the dosage of drugs. It would fill the exact ration of drugs into a
pouch fitted with RFID for every patient. When the drug is administered
to the patient, the data on the package is compared with that of
the recipient for the last time. In this way it is ensured that every patient
is taken care of properly. Because of the relatively high transponder
prices for this application, the efficient use of this solution is
currently not yet possible. The use of cheaper polymer chips (see
Chapter 18) could be a breakthrough.
Monitoring of blood preserves
Various Siemens sectors as well as a consortium of scientists and
technologists are profiting from the development of a new solution
for blood bags, which is based on RFID chips. Here, blood preserves
were fitted with RFID tags. The system monitors the blood along the
entire transfusion chain, “from artery to artery” – i.e. from the donor
through processing, distribution, storage, to transfusion. Fitted with
active transponders, the radio technology can trace the route of a
blood product and a mix-up is virtually impossible.
In addition, RFID has a temperature sensor that monitors the cold
chain continuously and completely. Medical staff can immediately
transmit product-specific defects to the reporting system, the “Hämovigilanz-Register”
register via a web-based application. The register
documents all the reported incidents with collected and processed
blood products.
Temperature monitoring is very complex, because differing temperature
profiles must be maintained within the transfusion chain. The
RFID technology used here must resist different production processes
such as pasteurizing or centrifuging. At the “University Clinic for
Blood Group Serology and Transfusion Medicine at the Medical University
of Graz” [“Universitätsklinik für Blutgruppenserologie und
Transfusionsmedizin der Medizinischen Universität Graz”], passive
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17 RFID in hospitals
Fig. 17.3 Blood bag with RFID chips
RFID labels were subjected to an endurance test for the first time. The
chips, which were fixed to blood bags, had to survive a sterilization
and pasteurization process as well as centrifuging at up to Mach
5,000. The blood bags were then supplied to the blood bank and were
used there in a routine processing and hospital environment.
Among others, proven and reliable chip, sensor and battery technologies
are required for the use of RFID transponders with temperature
sensors, which were developed and tested by “Schweizer Electronic
AG” in Schramberg. The active RFID labels resulting from the test
phases are currently being checked by the blood bag manufacturer
MacoPharma according to specific criteria, which are decisive for the
blood bank. After completion of the project in the blood bank of the
University of Graz, which is planned for the end of 2008, registration
with national and international authorities will be examined.
RFID monitoring of risk patients
Siemens plans to improve the quality of life of risk patients, such as
dementia sufferers, in the future with RFID wrist straps. As an alternative
to closed stations and institutions, the special wrist straps can
be used, which will trigger an alarm when a specific area is exited.
Patients can then move around freely, but institution staff is informed
in due time if an “escapee” must be taken back to the room.
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17.5 Conclusion
17.5 Conclusion
In view of the already implemented RFID projects for patient security,
it can be stated that the quality of treatment of patients and their security
enjoy a very high priority, from a technical point of view. However,
since the development of RFID technology for the health sector
is still in its infancy, the sector can expect numerous novelties in the
next few years.
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Part 4
How to proceed?

18 RFID – printed on a roll
Wolfgang Mildner
In a joint venture of Siemens AG and the Leonhard Kurz Stiftung and
Co. KG, called PolylC, RFID will in the future be manufactured according
to a new principle: By means of a roll-to-roll procedure, polymer
printed electronics are to be produced quickly and efficiently. The
electronics are thin and flexible and can easily be integrated into
products (Fig. 18.1). The new manufacturing process promises significantly
lower costs for RFID transponders. The basic technology of
printed electronics, with the application of new materials and new
manufacturing procedures, allows for the use of electronics (especially
of RFID) in areas where this seemed to be impossible up to now
for reasons of cost or space.
Fig. 18.1 PolyID®, a printed RFID transponder (Photo: PolyIC)
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18.1 Protection of trade marks with printed electronics and RFID
18.1 Protection of trade marks with printed
electronics and RFID
Printed electronics creates new solutions for one of the burning problems
in the consumer market: The ever increasing number of imitation
products can be combated better with electronic and optical
identification and authentication. In principle, everything seems to
be quite easy: Manufacturers and distributors of quality products of
any kind want to optimize internal processes, minimize costs, and establish
their reputation and market position by means of flawless
goods. End users expect flawless and authentic products for their
money, which they can trust in every respect without reservation.
Unfortunately, reality is somewhat different at times. Almost not a
single day goes by without the media reporting about product imitations
or risks through spoiled foodstuff and drugs. The one aspect
causes economical damage that can hardly be expressed in figures
any more, while the other on top of that threatens the health if not
even the lives of those involved. The example of the pharmaceutical
and foodstuff industry will subsequently show which demands are
made by the economy for an optimal production and distribution
chain.
18.1.1 Trade mark protection for flawless mixtures
Medical progress is not least noticeable in the multitude of drugs,
with which illnesses can be successfully combated, which a few decades
ago inevitably led to the death of the patient. The more specialized
the drug is and the higher the development cost was, the higher
the price of the drug must be in the end. Unfortunately, expensive
pharmaceutical products do not only have an influence on the health
of patients, but also on the greed of those dealers trying to penetrate
the lucrative market with cheap imitations.
With dangerous results in many ways: Preparations without an active
ingredient are ineffective and can have the same fatal results such as
over doses. The risk is, if the patient or the treating doctor does not
recognize a drug, which on face value looks flawless, to be an imitation.
The manufacturer of the real product suffers turnover losses
and is at peril of being made responsible for the damages caused by
the imitation drugs. For them, it is essentially important to exclude
all manipulation possibilities as far as possible on the long road from
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the production line to the end user. Costly packaging and optical
“seals of genuineness” alone do not suffice any more.
18.1.2 Dine without disgust
Complete traceability of the distribution chain to a high degree is also
desirable in the food sector – whether to fully withdraw contaminated
batches from circulation or to stop sellers from selling bad food.
Moreover, it is important that quality controls for perishable goods
find the root cause of any faults incurred without delay and to dispel
them where they occur. All investments that contribute effectively to
the localization of hitherto unknown problematic areas here will payoff
within the shortest of periods.
18.1.3 Identifiability creates clarity in the supply chain
If it makes sense for delicatessens, it can also be of great use to other
branches. From the clothing industry to automobile manufacturing,
all the producers have vital interest in protecting their quality brands
when it boils down to it (brand protection) and to protect themselves
against freeloaders (anti-counterfeit). Nobody can or wishes to manage
without doubt-free identifiability of produce and complete quality
control these days! Moreover, effective optimization methods are
looked for everywhere in cost-intense logistics in order to be able to
continue to survive against competitors (Supply Chain Automation).
These equally high and legitimate requirements can only be met
through a so-called “intelligent” seal of approval, which on the one
hand is cheap and, on the other hand, could only be copied at unattractively
high expense. If namely an individual pill box and the individual
packaging for the fillet of salmon can be unambiguously identified
as originals, manipulation possibilities can be prevented to a
large extent and any possible quality gaps revealed.
Technical evolution is still in progress here: however, at the end of
this development chain that will finally be advantageous to the end
consumer, only individual numbering at the single item level can result,
otherwise known as “Item Level Tagging”, with a unique Electronic
Product Code (EPC). In cases where virtually one hundred percent
authentication proof is provided or even transparent traceability
in the production chain is to be guaranteed, proven processes such as
barcodes and holograms reach their principle-causes limits: new
technologies must now pave the way to a secure future (Fig. 18.2).
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18.2 Technological basics
Fig. 18.2 Wine bottles with an integrated PolyID® tag (Photo: PolyIC)
18.2 Technological basics
The options described for printed electronics and, therefore, printed
RFID come into being by using new types of plastic, so-called organic
semiconductors (one example of this is P3HT – Poly-3-hexylthiophene).
These semiconductors are soluble and hence suitable for
use in printing machinery. Further fitting materials are required for
conductive and insulating structures in order to build up transistors
and other standard components in a respective layer composition and
to build up further standard components such as diodes, capacitors
etc. The new semiconductors are actually easy to use compared to
common silicon but their performance capability is considerably restricted
(a factor of approx. 1,000 times lower). Therefore, the integrated
circuits cannot be as high performance or complex as conventional
electronics. Therefore, simpler electronics are produced that
for this reason are cheaper and available as a mass product (Fig.
18.3).
Integrated circuits are established to implement the RFID function by
using these basic elements. Here, PolyIC demonstrated the first working
integrated circuits using this basis and can also produce them in
a roll-to-roll process in the meantime.
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18 RFID – printed on a roll
Fig. 18.3 Laboratory printing machine for printed semiconductors
(Photo: PolyIC)
The production process used for this consists of a combination of several
different processes, each of which realizes the respective layer
specifications required (layer thicknesses, resolution of the structures,
registration precision, etc.). The first generation of a production
process will be further simplified and optimized in the future.
However, it already meets the minimum speeds of 20 meters per
minute, as an effective production method.
The technology is also called polymer electronics or organic electronics
as polymers or organic materials are used. At the same time, RFID
is only one of the many options that can be realized using printed integrated
circuits. Other circuits for connecting sensors or displays
provide interesting future applications for intelligent packaging with
a self-monitoring function which can also display the test results.
Thus, for example, intelligent milk cartons that monitor their own
shelf life or their whereabouts in the cold chain will result in greater
consumer security in the future.
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18.3 Possible solutions using printed RFID
18.3 Possible solutions using printed RFID
The solution to the problems and requirements as explained here is
RFID. Where up until now we have had to hold optical reading devices
to record each individual product, RFID systems can read out a far
wider scope of data (or simply the message “I am genuine”) from a
greater distance and, if required also through the product itself from
the applied “tags” in the future (Fig. 18.4). This is executed considerably
faster, with far fewer errors and is more manipulation-proof than
it has ever been so far!
Fig. 18.4 Example of a printed entrance ticket with a printed advert –
a so-called “Smart object” (Photo: PolyIC)
Here, we must emphasize that printed RFIDs and Smart Objects that
are manufactured based on printed polymer electronics by no means
compete in any way at all with proven silicon technology. On the contrary,
the production-specific properties make printed RFIDs and related
products an ideal supplement to the “hard” chips:
• Flexible and malleable and also very thin integrated circuits also
make attachment to soft items, to date not able to be labeled, possible.
• Automatic provision in manufacturing lines can be retrofitted.
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18 RFID – printed on a roll
• Negligible piece costs enable the exploitation of new markets, for
example also and especially for low-vale mass products.
• High universality, customer-specific adaptation to each area of
application (also for cheap giveaways and single-use test devices).
Using modern print systems, it is now possible to produce active and
“intelligent” integrated circuits and that virtually free. Johannes
Gutenberg would not have dared dream that five-and-a-half centuries
after his groundbreaking invention of book printing with movable
letters that a new print revolution is in the process of “conquering”
the world and improving everybody’s lives.
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19 RFID and sensors
Georg Schwondra
When observing RFID applications that track the movement of an object,
for example within its supply chain (see Chapter 12), the requirement
to record and save additional ambient parameters arises frequently.
This, for example, enables the adherence to temperature
limits to be clearly depicted on the time bar. The link with logistics
data enables the tracing of the person responsible in the supply
chain.
19.1 Motivation
The ambient parameters or influences that can be recorded together
with RFID include temperature, relative humidity, and pressure. If
you want to monitor air humidity, this only makes sense combined
with the temperature as air humidity is temperature-dependent. Isolated
events that can cause damages to industrial goods are detected
by monitoring the parameters of acceleration and vibration. In any
case, you must define the areas and accuracy with which the parameters
are to be tracked in advance. The sensors are then selected according
to these requirements.
Due to structural complexity, “RFID sensors” are more expensive than
simple, passive RFID chips. The application is always attractive if reuse
is possible as the then higher transponder price can be written off
over the amount of re-use. In order to ensure the return of the transponders,
an incentive system (such as a deposit system) must be created
for everybody involved along the supply chain.
The definition of the identification point where the RFID sensors are
attached and later detached from the monitored product is especially
significant. At the same time, process design should pay special attention
to these process steps creating as few additional costs as possible.
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19 RFID and sensors
The implementation of solutions with RFID sensors enables the design
of new business models. For example, this enables the clear allocation
of an accident to the person who actually caused it. In turn, this
means that insurance payments can be saved (leads to a long-term
reduction of insurance premiums) or the person responsible can be
held liable.
19.2 Technical basis
Basically, we can define two groups of RFID sensors:
• Sensor transponders with an internal memory for the decentral
storage of the ambient data.
• Sensor transponders without an internal memory are centralized
storage of the ambient data.
19.2.1 Schematic structure of RFID sensors
RFID sensors are realized using a discrete structure as a microcontroller,
field programmable gate array (FPGA), or ASIC implementation.
In all cases, the sensors require an energy supply for operation (a battery
or a storage battery). Fig. 19.1 shows the schematic structure.
Fig. 19.1 Schematic depiction of an RFID sensor
Communication with the RFID reader via the air interface is realized
via the analogue and digital front end. The microcontroller governs
the EEPROM memory, controls the sensor, and analyzes the sensor
data according to parameterization. Should a precise time base be required
by the system over long periods of time, a quartz element is
218
Sensor
EEPROM
Quartz
Microcontroller
Battery
Digital
Frontend
Analog
Frontend
A
n
t
e
n
n
a

19.2 Technical basis
necessary. The battery provides electrical power for the microcontroller
and sensors. Normally, the front end works when the battery is
drained. Preferably standard devices are used as RFID-readers in order
to utilize any existing infrastructures. The RFID sensors are addressed
by the reading device via so-called custom commands, i.e.
pre-defined protocol extensions of the respective RFID standard.
These custom commands currently still differ from sensor to sensor.
19.2.2 Decentralized sensor data storage
This category of RFID sensors has an EEPROM memory in which the
measured ambient parameters are filed with a time stamp. The RFID
sensor can be initialized via the radio interface as follows:
• If cyclically re-used, the memory is deleted.
• The logging mode is defined (you can normally select between
recording a full curve, an out-of-range curve, or a surface integral).
• The logging interval is defined.
• The user-specific starting data is saved and logging started.
Following this step, the RFID sensor begins with periodic measurement
and, as necessary, recording the ambient parameters (depending
on the logging mode selected and ambient data measured). These
data can then be read out at the identification points and reconciled
with data from the central system. It is also possible to adapt the logging
parameters.
19.2.3 Systems available
Three products from different suppliers are introduced below as examples
of the approaches available today.
SEAGsens
The SEAGsens, a product from Schweizer Electronic AG (http://www.
schweizerelectronic.ag), was developed in its original form for temperature
monitoring blood bags “from vein to vein” (Fig. 19.2).
The discretely structured sensor system was developed by Schweizer
Electronic AG together with Siemens as a platform, in order to account
for short-term product diversification with regard to other sen-
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19 RFID and sensors
Fig. 19.2 SEAGsens-transponder (Photo: SEAG)
sors and different product geometries. The electronics and integrated
circuit design was developed by the Institute for Applied research at
the University of Offenburg [Institut für Angewandte Forschung der
Hochschule Offenburg]. Table 19.1 shows the most important performance
data.
Table 19.1 Platform specification for the SEAGsens
Properties SEAGsens
RFID technology 13.56 MHz, ISO 15693 compatible
Multiple re-usability Yes, > 5 years
Power supply Round cell battery CR 2430, 270 mAh,
Dimensions 69 × 58 × 6.3 mm
Measurement range –30° C to +60° C
Recordable parameters Temperature, relative humidity, pressure, acceleration,
and vibration
Analysis modes Full curve, overlap curve, and surface integral beneath
the overlap curve
Memory capacity 64 Kbytes = > 15,000 measurement values
Measurement intervals Freely selectable: 5 seconds to 4 hours
Measurement accuracy Temperature: tolerance ±0.5°C
(between 0°C and +70°C)
Rel. air humidity: tolerance ±2 %
(between 10 % and 90 %)
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VarioSens
19.2 Technical basis
The KSW-VarioSens®, a product from KSW Microtec AG (http://www.
ksw-microtec.de), is an ASIC implementation of a sensor transponder
(Fig. 19.3). The product is available as a flexible label with an integrated
temperature sensor in credit card format. The power supply is
a wafer-thin environmentally friendly battery for insertion. The KSW-
VarioSens® can store up to 720 temperature values and has an extra
memory area for user data. As quartz was not used due to ASIC implementation,
its timer precision is approx. 5 %.
Fig. 19.3 KSW-VarioSens (Photo: KSW)
Jilg parquet sensor
The “Jilg parquet sensor” was developed by the companies Jilg and
Tricon and is currently available as a prototype. Jilg produces and lays
parquet flooring and seeks to manage its customers’ warranty claims
by analyzing the environmental data. For example, the flow temperature
of the heating must be limited for parquet floors with underfloor
heating, otherwise the parquet floor will “distort”. When the parquet
floor is laid, a sensor is also installed and analyzed as required (customer
claims).
By installing this sensor in the parquet flooring, Jilg can reconstruct
whether the damages have were caused by exceeding the permissible
heating temperature or a material fault in case of warranty claims.
Moreover, the installation of this sensor makes it possible to determine
whether a wooden floor damaged by humidity has been damaged
by air humidity being too high (structural damp) from above or
by rising damp (diffusion) from below.
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19 RFID and sensors
19.2.4 Central sensor data storage
Systems in this category distinguish themselves because the EEPROM
memory is missing on the sensor transponder. The data are transmitted
to the central system via the radio interface at the point in time of
measurement. This assumes that the RFID sensor is always in the reception
field of a reading device. Therefore, this category of transponder
is normally cheaper to realize as the requirements of the microcontroller
required are considerably lower.
ZOMOFI, an active 2.45 GHz system, is one example of this. By using
ZOMOFI, reaches of up to 160 m outdoors and up to 80 m in closed
rooms can be achieved (Table 19.2). Transponders with temperature
or acceleration sensors are conceivable, for example as sensors (Fig.
19.4).
Table 19.2 Excerpt from the ZOMOFI specifications
Properties ZOMOFI
RFID technology 2,400 GHz ~ 2,483 GHz
Memory capacity 112 bytes
Battery life Typically 20,000 write cycles or 1 year
(maximum life cycle dependent on the concrete
application conditions)
Working temperature range IEC 60068-2-14 (Na)
– Operation: –10°C to +55°C
– Storage: –20°C to +70°C
Transponder dimensions Credit card: 54 × 85.5 × 4 mm
Domino: 31 × 90 × 10.5 mm
Fig. 19.4
Transponder with a removed temperature sensor (laboratory sample)
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19.3 Initial applications
19.3.1 Temperature monitoring for blood preserves
19.3 Initial applications
Blood preservations (erythrocyte concentrate) are becoming an even
scarcer resource with limited storability due to decreasing readiness
to donate and increasing exclusion criteria (the age pyramid, improved
diagnostics, etc.). Once donated, the blood preserves must be
stored in controlled temperature ranges (Fig. 19.5).
Fig. 19.5 Temperature profile to be maintained for blood preserves in Austria
If there are variances in these requirements, the blood preservations
must be thrown away. In Austria alone, blood preservations to the
value of one million euros per year are thrown away due to incorrect
handling or the non-monitoring of the cold chain whereby the price
of a single blood preserve is 120 euros in Western Europe. On top of
this, there is the ethical aspect that a product that may save lives,
which is regularly called for through donation appeals, has to be discarded.
Today, the products are monitored at refrigerator or box levels using
temperature loggers until they are delivered and stored in the blood
bank (storage in hospital). As of the point in time when the product is
handed over to the ward or the operating theatre, monitoring no
longer takes place and the products can also no longer be returned,
even if not used.
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In order to find a solution, the companies Schweizer Electronic AG,
MacoPharma International GmbH, and Siemens AG established a consortium
together with the University Clinic for Blood Group Serology
and Transfusion Medicine [Universitätsklinik für Blutgruppenserologie
und Transfusionsmedizin] in Graz and developed a temperature
monitoring transponder and a clinical application. It meets the following
requirements:
• The course of the temperature of the blood preserve must be completely
monitored from the donor’s vein to the recipient’s vein.
• The electronics must survive the centrifugation process
(up to the 5,000-fold multiple of gravity) that is required
for blood production.
• The operating costs per use must be very low.
This solution has been undergoing clinical testing since the start of
2008. Following this, the respective approvals are planned, meaning
that the system can still be introduced commercially in 2008.
19.3.2 Quality assurance for worldwide container transports
A petroleum processing company is currently evaluating the use of
RFID sensors with temperature and relative air humidity monitoring
in order to secure the quality of air humidity-sensitive plastic granulate
on worldwide container shipping transport. On the one hand, the
analysis is intended to provide a data basis for the required quantity
of absorber material, depending on the destination and season and,
on the other hand, it makes possible the identification of the causer in
case of claims.
19.4 Possible future applications
19.4.1 Temperature
Further potential applications for RFID and temperature logging are
apparent in logistics for meat and deep-frozen products. Here, the
general public is exerting increasing pressure on the provision of
transparency and traceability in the logistics chain. Today’s identity
systems within the meat processing industry enable a clear inference
from the purchased product back to the producing company. Today, it
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19.4 Possible future applications
is not possible to make a statement as to whether temperature regulations
have been observed within the scope of producing and distribution
logistics.
For expensive wine, temperature monitoring is as an important topic
as for worldwide distribution logistics for the temperature-sensitive
pharmaceutical products such as vaccinations. In the latter case, exceeding
or a shortfall of the storage temperature may lead to the vaccination
loosing its effect.
Beer barrels are often given to event organizers by the breweries as
goods on sale or return. If a barrel is not used and left in the sun, it is
theoretically possible that the beer will spoil. Sometimes the brewery
takes the beer back and delivers it to another customer who correctly
complains. Temperature monitoring at barrel level enables exceeding
the temperature to be determined in good time, to avoid “recirculating”
it and charging the causer the damages.
19.4.2 Temperature and relative air humidity
Especially for fruit and vegetables logistics and flower imports, the
monitoring of environmental conditions is an interesting topic. The
durability of the goods here is basically dependent upon the temperature
and air humidity profile.
A further application that is noteworthy is lending works of art. In
particular, old art treasures such as papyrus rolls and paintings are
highly sensitive to the ambient conditions during transport and exhibition.
Museums have already had initial thoughts to equip such
works of art for exhibitions with corresponding sensors in order to
monitor the contractually guaranteed storage conditions and, as necessary,
to carry out restoration work directly after the works of art are
returned.
19.4.3 Acceleration
The use of acceleration sensors is conceivable, for example for transport
logistics for large transformers. These transformers have a six or
seven figure value in euros and are highly sensitive to acceleration
(being dropped) due to their ceramics insulation. Today, transport
damages can often only be established after the installation of the
transformer in the system as mostly breakages in the ceramics insu-
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19 RFID and sensors
lation are not visible. The same applies to those components that are
sensitive to being dropped in the automobile and machine manufacturing
industry.
A further potential application is in the area of load securing for
trucks. The packaging is normally dimensioned for a specific nominal
load and acceleration according to specifications. If emergency
braking takes place, it is possible that these specified values are exceeded
and consequently the packaging and contents are damaged.
In case of damages, it is important for the person responsible for
packaging to be able to prove that the permissible acceleration values
were exceeded in order to clarify the question of liability.
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20 RFID security
Dr. Stephan Lechner
The widespread use of RFID has also resulted in radio labels advancing
to security-relevant areas of application in the meantime. Not
only is the new technology used by libraries and supermarkets, it is
also used as access control for buildings, for identifying livestock, for
container tracking, as well as in many other areas and has established
itself against the barcode and other methods. These applications raise
security questions that can be split into two categories: data protection
and information security. Whereas personal data and the question
of tracking and profile formation by the unauthorized capturing
of RFID transponders are predominant in the area of data protection,
information security deals with comprehensive protection against
manipulation and unauthorized access to saved or transmitted data.
20.1 Data protection
Data protection reservations against the use of RFID are basically
against unnoticed and unwanted capturing of the transponders. Due
to its technical functioning principle, a passive RFID transponder
starts working as soon as its antenna induces the required operating
power. Activation that takes place in this manner may happen unnoticed
as opposed to the comparatively conspicuous readout of a barcode
as no direct visual contact must exist between antenna and
transponder. In this way, data can be collected that provides information
regarding the owner’s personal matters and is, therefore, subject
to the pertinent data protection regulations.
However, basically we must observe that the function principle and
areas of application for RFID include an uncomplicated readout as a
key performance feature and that without this property the use of
RFID would often neither make sense nor be economical. The demand
to provide a control option by the user is, therefore, difficult to realize.
In particular the collection of data from several RFID transpon-
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20 RFID security
ders to prepare a personal profile is significant for a further analysis
of the problems.
20.1.1 Personal profiles
A readout of RFIDs at the point of sales always includes the option of
profile formation: for example, the combination of goods in a shopping
cart could be analyzed at a supermarket checkout, in which this
can also provide information referring to the purchaser’s personal
matters. The customer could be identified via a customer card or an
RFID-based identity card. The information saved in the transponder
can also be read out after payment and this could contribute to profiling
and identifying the respective owner.
However, these observations are basically also valid for barcodebased
scanner cash registers and electronic means of payment. If the
customer or discount cards are used, the user even explicitly agrees
to this connection.
Nonetheless, this difficulty has made voices grow louder and louder
in the past, calling for the deactivation or destruction of RFID transponders
after selling the respective goods. Technical methods for
implementing such measures within the scope of predetermined mechanic
or electronic deactivation are definitely available. However,
market introduction has not yet taken place. The data protection debate
on RFID has only been able to slow down the triumph of the technology
but unable to stop it. The further development of the RFID
market will nonetheless be determined to a large extent by the way
the much discussed security problems are addressed.
20.1.2 External attacks
Unauthorized reading of RFID transponders has repeatedly been
evaluated critically by the press and technical publications. For instance,
it is being discussed to what extent RFID could be abused in
passport control in order to positively identify a potential assault victim
and then to attack it. However, the German passport with RFID
was conceptualized in such a way that the document must be opened
before reading the RFID is possible. (Fig. 20.1). On the other hand, a
diversity of organizational measures ensures that manipulation can
be excluded to a large extent. This has significantly improved the security
of this RFID application.
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Chip in the
passport cover
Symbol for
an electronic
passport book
20.1 Data protection
Fig. 20.1 A security-critical application: The electronic passport with
an RFID chip (Photo: German Federal Ministry of Internal Affairs)
Regarding technology, different standards and radio frequencies
have been defined for RFID, which, among others, have an influence
on reading distance. Both the limitation of the reading distance
through targeted interference (“Denial of service” attack) and the increasing
of reading distances for unauthorized reading are of importance
from a security point of view. The capabilities of an RFID transponder
cannot be significantly influenced by read attempts with manipulated
readers with increased power or sensitivity. Consequently,
the use of a sensitive reader does not automatically achieve longer
communication distances. Even for a very sensitive receiver of the
reader, it must be considered that the information sent by the RFID
quickly becomes unusable due to interference.
The German Federal Office for IT Security launched a study in 2006
[2] to investigate at what distances RFIDs could be read under laboratory
conditions, and arrived at surprising results. Reading distances
of up to two meters (for HF transponders) could easily be achieved
with minor signal quality constraints that led to the speculation that
longer distances could be reached in the future. When taking a closer
look, however, it must be stated that boundary conditions for such
measurements also play an important role. In the test, the antennas
of readers and RFID were exactly aligned, which would be very difficult
to achieve under real conditions. Mutual misalignment leads to
severe deterioration of the results.
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20 RFID security
20.2 Information security
Not only undetected reading is a problem when using RFIDs, but also
possible manipulation of stored data. Therefore, some RFIDs are already
furnished with additional characteristics for the application in
security environments.
20.2.1 Protection of saved data
The data that is saved on an RFID is protected against direct access by
a number of security systems. Besides for storing the data in the protected
EPROM or EEPROM areas (Electrically Erasable Programmable
Read Only Memory) of the chip, the data can also be deleted in case of
unauthorized physical manipulation. To bypass such protection measures
requires a lot of effort, good knowledge of electronics and semiconductor
manufacturing, as well as elaborate measuring equipment
and analyzing tools. Hardware-based protection measures will, therefore,
not be dealt with any further here. Further information on the
topic can for instance be found in the relevant report of the German
Federal Office for IT Security [3].
Besides for physical protection of data against unauthorized capturing,
there is the possibility of data encryption in order to limit unauthorized
access. In case of encrypted data, no conclusions can be
made regarding its contents, even if an attacker managed to access
the data. Since the principles of cryptography apply to both saved
data and data transmission, the relevant technologies will be briefly
addressed in the following section.
20.2.2 Protection of data transmission
For special security environments there is the option for the encryption
of data during radio transmission, whereby only authorized
readers can retrieve the contents of transponders. A differentiation
must be made between a purely mathematical-cryptographic encryption
and “masking” or “scrambling” of data, which in comparison
with strong encryption do not offer sufficient protection against a targeted
attack. Data scrambling is nothing more than a rearrangement
of the data and can normally be reversed without much effort by
means of mathematical software packages.
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20.3 Classic protection measures
20.3.1 Symmetrical encryption
20.3 Classic protection measures
Effective securing of stored or transmitted data is possible by means
of symmetric cryptographic encryption. The central element of this
encryption is a secret key, which is shared between the sender and the
recipient as a mutual secret. Typically, this key corresponds to a bit
sequence, which serves as an input to a mathematical encryption procedure.
Since the sender and recipient of a message use the same key,
it is called symmetric cryptography.
RFID systems with symmetrical encryption procedures are available
on the market for security-critical applications. The following must be
taken into consideration: The secret key, which is only known to the
sender (RFID) and the recipient (reader), must be protected against
unauthorized access. If the secret key were to be compromised (i.e.
disclosed), an attacker could pretend to be an authorized user.
Depending on the applied cryptographic procedure and the required
level of security, key lengths of 128 to 2,048 bits are regarded to be
sufficient. The length of the cryptographic key must be sufficient to
protect the system against computer-supported testing of all the possible
keys (brute force attack). The basic principle is that longer cryptographic
keys offer significantly higher security. Since mathematic
and cryptographic methods are being developed over time by scientific
specialists, it is advisable to choose a longer rather than shorter
key in case of doubt.
Not only the key, but also the stability of the employed algorithm (i.e.
of the cryptographic procedure) is of vital importance for the security
of encrypted data. Cryptographic procedures can be publicly known
in detail without the security of the system being at risk, because the
security is based entirely on the secrecy of the key in case of stable
algorithms. Only if a procedure has been cracked by so-called cryptoanalysis,
it should no longer be used. For instance, the Data Encryption
Standard (DES), which was developed in 1977 by IBM, is regarded
as unsecured, but still used in many systems in its secure triple version
3DES (“Triple-DES”). The successor algorithm AES, “Advanced
Encryption Standard”, which emerged as the winner in October 2000
in a competition of the technology association and is based on the
Rijdael procedure, is the essential, generally acknowledged procedure
for symmetrical encryption.
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20 RFID security
Many products do, however, contain proprietary procedures, which
are not disclosed due to security reasons. This principle of “security
by obscurity” is often rated as less than reliable because the stability
of the cryptographic procedure must be rated higher if the technology
association does not succeed in cracking the procedure, even after
a long time. In military environments, on the other hand, nearly only
secret algorithms are used. Despite this, it can be assumed that the
construction of such “new” procedures is quite often achieved by
means of focused variations of known and published algorithms, in
order to utilize an acknowledged stable mathematical construction. A
basic new construction of cryptographic procedures without the involvement
of the cryptographic expert community requires very extensive
mathematical knowledge and years of practical experience,
but always contains a high risk of undiscovered weak points.
20.3.2 Problems in the use of symmetrical encryption
Security-critical application fields of RFIDs have for years been addressed
by special solutions and products based on symmetrical encryption.
The secret key is saved in the secure storage area of the
RFID. Applied algorithms are parameterized in such a way that a special
reader is required to recognize the encrypted communication of
the RFID.
Saving the secret key in the reader has the disadvantage that in this
case the device must know the keys of all the RFID transponders with
which it will have contact during the course of its activity. Since the
secret keys of the RFID transponders represent sensitive data, the
reader must additionally be protected against unauthorized access –
especially against physical dismantling – with a lot of effort.
Therefore, readers are often furnished with an online data link to a
central database, where the secret keys of the RFID transponders are
saved. The verification of a transponder can now be accomplished via
secure transmission procedures, supported by a database, without
the reader getting into contact with sensitive data. The necessity of
physical protection no longer exists in this constellation. However,
this advantage is diminished by the requirement of an online link.
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20.4 Protection against complex threats
20.4 Protection against complex threats
While IT security is normally characterized by the three terms confidentiality,
integrity, and availability, its application towards RFID scenarios
is quite complex.
The confidentiality of data can be compromised by unauthorized access
during saving on the RFID tag or in the reader or on the transmission
route, where encryption procedures are normally employed
as a counter measure.
The integrity (intactness) is threatened by undetected manipulation
of the data on the RFID tag, on the radio route or in the reader, where
digital signatures or encryption mechanisms and authentication and
access control are employed as a counter measure.
The availability of data can be threatened by a multitude of attacks,
for instance the physical manipulation of RFID antennas, interference
signals by radio transmitters, deliberately created requests to the
readers or by interruption of the online link of readers. In case of artificially
created overload, the regular service is no longer provided,
causing corresponding attacks on the availability to be summarized
under the term of “Denial of Service” attack.
Before security measures for complex systems are decided upon, it is
therefore necessary to carry out a comprehensive threats analysis,
followed by the risk analysis of the RFID application area concerned.
In its simplest case it may result that no security measures are required,
because existing risks are low and would not justify the cost
of additional protection measures. Without claiming to be exhaustive
the following section is intended to provide a short representation of
a real threat scenario for RFID systems.
20.4.1 Creation of RFID clones
The identity of a RFID transponder is determined by the data saved on
the transponder, which contain a world-wide unambiguous representation
of, among others, the manufacturer, item number, and serial
number, based on the globally standardized structure of the EPC
(electronic product code). In many application fields it is not required
to protect these data, resulting in the communicated data being readable
as plain text on the transmission route. This does, however, also
mean that unauthorized eavesdropping on data by third parties is
possible (even if it is only possible at short distances during the read
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20 RFID security
process) and especially that data can actively be retrieved by third
parties (with an own reader).
After successful eavesdropping or retrieving of the identity data of a
RFID transponder, these data can be saved in the attacker’s reader and
can later be transferred to another RFID, by which a clone (duplicate)
of the original transponder is created in the logical sense. As soon as
the data has been disclosed, an arbitrary number of clones can be created
at any point in time. In some application fields this is not critical:
The technical effort of cloning is not justifiable for the attacker if only
the label of a can on the shelf of a Supermarket can be duplicated.
However, in other cases the effort could be worthwhile: Drugs of
which the genuineness is proven by RFID, expensive clothing that is
protected against product piracy by RFID, or simply company access
cards or access cards to official buildings, pose a high risk of abuse.
The best protection against cloning of RFID chips is offered by encryption
procedures that prevent attackers from eavesdropping on the
transmission route. This requires readers and transponders to be capable
of handling the special encryption technologies. The oftenpraised
protection by a check of the serial number (UID) of an RFID
transponder, however, is questionable. In the meantime, imitations
are being produced so professionally in product piracy that existing
and legitimate product codes get into circulation by means of the
abovementioned cloning processes. They can often not be identified
as initiations by means of cross-checking against a manufacturer database.
20.4.2 Protection measures by means of certificate-based
solutions
In security-related environments, similar demands are made on RFID
systems as on ISO chip cards (so-called Smart Cards), which have
been widely established as identification method. The RFIDs, which
feature lower in storage and processor performance, have the advantage
of flexibility, lower space requirement, and significantly lower
cost, which qualifies them for some application fields that remain inaccessible
for chip cards. High security requirements result in the
field identification of documents and individual objects (item tagging)
as well as in the field of identification cards and passports.
Such requirements can be solved by means of certificate-based procedures
(Public Key Infrastructure, PKI) for ISO chip cards, which are
based on asymmetrical cryptographic procedures.
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20.4.3 Asymmetric cryptography and PKI
20.4 Protection against complex threats
Contrary to symmetric cryptography, where the sender and recipient
of messages must use the same key, asymmetric cryptography has
also established itself in products since the 1980s, whereby each of
the participants disposes of two different keys, which operate mutually
inverse. The RSA procedure is one of the most well known algorithms
of this type, with a decided advantage above the symmetrical
procedures: The private key of every participant is supplemented by
an associated public key, which is not security-critical and through
which no conclusions about the private key can be made.
Therefore, the procedure is very elegant: Before sending a message,
the sender encrypts the data with the public key of the recipient in
such a way that only the recipient can decrypt the message with his
associated private key. The principle can, however, also be employed
reciprocally, whereby the sender (additionally) encrypts the message
with his own private key, thereby proving that only they can be the
originator of the message. This origin is verified by the recipient via
the freely accessible public key of the sender. This proof of authenticity
is referred to as a digital signature.
In order to protect public keys against forgery, they are again digitally
countersigned by higher level authorities (Certification Authorities,
CAs). However, the public keys of CAs must also be protected, which
subsequently leads to a tree-like hierarchical CA structure, at the root
of which the so-called root-CA is situated, whose public keys must be
protected by physical measures e.g. transmission by trusted messengers
to lower level CAs). The structure of CAs, associated RAs (Registration
Authorities), and public and private keys is referred to as Public
Key Infrastructure (PKI).
Digitally signed data of a special format – similar to manually signed
documents – are also referred to as certificates. The internationally
acknowledged X.509 certificate standard contains fields for validity
dates and the issuer of the certificate, besides of the identity of the
signatory. In order to control the time – wise but compromised validity
of certificates in a PKI (e.g. after the discharge of a user), a recall
mechanism is normally used via Certificate Revocation Lists (CRL).
20.4.4 RFID and PKI
The rather complex structure of a PKI based on chip cards is quite
common and provides a high degree of security, combined with the
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20 RFID security
elegant option of reviewing certificates everywhere and at any time.
In contrast to symmetrical encryption procedures, a reading device
that only uses public keys requires neither online connection to the
central database nor any particular protection against manipulation.
Unfortunately, the passive RFID transponders currently available on
the market have neither sufficient computer power nor memory capacity
for the implementation of a standardized PKI. However, the
first results are available from industrial research that successfully
simulated asymmetric cryptography on passive RFIDs beyond the
X.509 standards, whereby the design of mathematical-cryptographic
security is no weaker than the standard, but global compatibility on
the use of the classic X.509 certificate currently remains reserved for
the chip cards and the PC based solutions.
However, the future allows us to expect that the PKI procedures and
certificates currently known in browsers and chip cards also permit
the standardized transfer to RFIDs.
20.5 Security in RFID standardization
In contrast to the standardization of RFID communication, the standardization
of RFID security has not proceeded far in 2008. Various
working groups in ISO or EPCglobal (compare Chapter 6), which supports
the electronic RFID product code EPC, have only just started to
address the security issue.
Proprietary solutions are currently dominating the market, predominantly
determined by RFID systems, which work based on standardized
communication protocols without any noteworthy security characteristics.
Especially the globally standardized ability to communicate,
which is a decisive factor for the rapid spread of RFID, also represents
a security risk: unprotected RFID communication can easily
be intercepted and unprotected RFID transponders and be recorded
and read from any reading device working within the specified parameters.
From today’s point of view, it is very questionable whether the security
aspects will become a default feature for RFID solutions. On the one
hand, the principle of integrated security has predominantly asserted
itself on the information and communication market, on the other
hand there are still many legacy information technologies still existing
today, whose security concepts do not comply with today’s state-
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20.5 Security in RFID standardization
of-the-art. Similar is expected for RFID trends. Ever more efficient
platforms will enable more complex security measures. However, the
decision on how much security is required by RFID is finally made by
the market. Considering the slow progress of standardization, the
high cost pressure for semiconductor manufacturers and a multitude
of application areas with little or very little security requirements,
area-wide facilitation of RFID applications with compatible security
characteristics cannot be expected even after completion of the relevant
standardization work. The long, successful history of the barcode,
which in comparison to RFID hardly contains opportunities for
a secure concept, also supports this assessment.
Due to its cost advantages and due to the more flexible physical design,
RFID could develop into serious competition for chip cards and
the resulting PKI in special security environments, even if the previous
results on the application of PKI on RFIDs exist only in the research
field and are not yet available on the market as a product.
References
[1] e.g. Germany's Bundesdatenschutzgesetz, http://www.gesetze-im-inter
net.de/bdsg_1990
[2] Thomas Finke, Harald Kelter: Bundesamt für Sicherheit in der Informationstechnik
(BSI); Radio Frequency Identification – Abhörmöglichkeiten
der Kommunikation zwischen Lesegerät und Transponder am Beispiel
eines ISO14443-Systems, http://www.bsi.de/fachthem/rfid/Abh_RFID.pdf
[3] See Bundesamt für Sicherheit in der Informationstechnik, Risiken und
Chancen des Einsatzes von RFID-Systemen, SecuMedia Verlagsgesellschaft
237

21 Epilogue: En route to the
“internet of things”
Dr. Stefan Key
Logistics – a central component of the supply chain
Logistics actually has a simple task: commodity transport from A to B
with the optimum use of all the required resources. This often requires
a sophisticated concept, for example when books have to be
delivered within 24 hours. The coordination of the most varied commodity
flows, the picking of new dispatches, or interim storage are all
logistics components. The important objectives of logistics entail the
timely arrival at the customer and the optimum, cost-efficient coordination
of all processes with minimum expenditure (according to the
Just-in-Time principle). This prevents, e.g. highly sensitive goods
such as drugs or technical devices from being exposed to unnecessary
transport routes. Environmental protection also plays an increasing
role.
Even if logistics in the supply chain is only visible at the end, during
the dispatch of the produced goods to the customer, it would be
wrong to believe that respective considerations on logistics only need
to be made at this point in time. Real Supply Chain Management
means the coordination of all the value-added steps with the required
logistics. Siemens already started this many years ago with its own
processes, in which the supply is observed in reverse. This changes
logistics from a Push to a Pull system. An excellent example for this
Push concept is the Siemens plant for medicinal computer tomographs
in Forchheim. Here, the suppliers can monitor their own parts
stock and replenish them promptly as required.
However, if logistical aspects are ignored, this would cause significant
difficulties. Optimized logistics should, therefore, already be included
at the start of a new product family or during the development of
a new market segment in order to create an optimized total process.
For Siemens’ new Open Mail Handling System (OMS) – a real postal
factory for sortation of flats, magazines and catalogues – logistics re-
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21 Epilogue: En route to the “internet of things”
quirements were taken into account already at the time of system design.
This system is so complex that it can no longer be built at our
plants and subsequently be delivered to the customers in the usual
manner. Therefore new logistics concepts had to be developed early
on. An efficient logistics could otherwise only be realized with enormous
costs and high costs.
The companies – shipping services and manufacturers – are very well
aware of the decisive role played by logistics. Globalization gives rise
to ever more receiving and delivery networks. However, there is still
large potential for logistics optimization. The use of information
technology is the most important lever. The whole logistics chain together
with it’s data can be integrated by a common IT backbone:
Suppliers, services and customers will be integrated. This IT integration
serves to prevent errors that would otherwise lead to considerable
costs and a lack of quality. At the same time, logistics processes
are subjected to considerable dynamics. Destinations change as do
supplier and supply routes. Alternatively, delivery difficulties and
stops occur for the most varied reasons. Here, IT systems can also
help to manage the changes.
Meanwhile, globalization with global procurement, highly transparent
sales channels in the Internet and the increased consumer demands
for individual products make it nearly impossible to statically
describe the optimum route or the optimum network. For example,
the PCs required for our systems may be supplied by IBM the one day
or by HP on another day – depending on the range, availability, and
requirements. Proceeding globalization thus leads to better quality at
constant prices or the same quality at lower prices. Globalization also
contributes to further progress in the productivity of the economy.
A further shift is caused by the Internet platform. Let us revert to the
example of books: books used to be sent from the wholesaler to the
dealers and predominantly collected by the end customer themselves
(a) (b) (c)
Fig. 21.1 Changes in logistical networks
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21 Epilogue: En route to the “internet of things”
(Fig. 21.1a). Today, online portals such as Amazon.com have to send
individual books to the customer, which signified a considerable increase
in the number of shipments (Fig. 21.1b). The development of
these online dealers to sales platforms has even resulted in random
networks, because anyone can buy and sell (Fig. 21.1c). Now, Amazon.com
is merely the center of a virtual network, functioning as
sales opportunity, sales room, and payment system.
The data model architecture as a critical system parameter
These business models require a highly developed IT infrastructure.
The intelligence contained in the IT systems is the key to command
the resulting dynamics and variety. With regard to the control of logistics
processes, the performance capability of the architecture,
however, is significantly determined by the selected data model: must
the logistics objects only be identified and all relevant data be maintained
in a database (centralized data storage) or must they be stored
on the dispatch objects themselves with suitable Auto ID technologies
(decentralized data storage)?
The advantage of decentralized data storage directly on the logistics
objects is that real-time networks are no longer required. Let us look
at an assignment system for letter post: here the barcode not only
contains a reference that has to be initiated via a database but also the
complete recipient address. The destination has to be determined
within just five seconds during sorting. If the network is overloaded,
something that can never be excluded from the Internet, the letters
then get diverted into the reject container for subsequent manual
processing – the sorter goes into a standstill within minutes and the
entire postal process is confused. Purely central approaches are also
not only dangerous for reasons of possible failures but also due to
increasing commodity flows. A complexity problem arises.
On the other hand, centralized architectures enable last second
changes. Detailed information on the current network structure and
its performance is also available. This forms an optimization basis.
Logistics systems are extraordinarily expensive ventures and required
continuous optimization, something that is far easier with local
structures.
Apart from the suitable IT architecture, modern logistics relies on
Auto ID technologies in order to identify logistical units – letters,
packages, pallets, and containers. Logistics requires eyes and ears,
that is, sensors such as barcode readers or RFID systems as a basis for
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21 Epilogue: En route to the “internet of things”
automated control. For example, barcodes are used to provide the
shipment with information such as the destination or customer information
(e.g. in direct marketing with Customer Response coding).
The 2D code here is obviously superior to the classic barcode because
information density is considerably higher. 2D can also be used to
store security relevant information on the shipment, e.g. for postage
invoicing purposes.
Therefore, our integrated concept initially works decentralized with
information available in printed codes. However, should the (extensive)
barcode not be available or only partially readable, enabling
identification only, then the centralized system takes over. This central
component is normally a monitoring system performing the required
optimization.
RFID provides an extraordinarily important addition to this architecture.
The most important advantages of RFID compared to barcodes
are transponder writability and groupability. If a barcode needs to be
updated, this can only be done by printing on a further barcode,
whereas an RFID transponder is simply reprogrammed. This is important
because logistics always entails many changes (e.g. in the
destination or routing). If the barcode of a shipment contains wrong
information (or has changed in the meantime), the barcode becomes
obsolete. Therefore, subsequent changes to the data stored on the
RFID chip are of the greatest significance. The groupability enables
the use of RFID to record a box with 100 dispatches in a single working
step – if barcodes were used, this would have required the individual
scanning of every single letter or package.
Economical application of RFID
However, the introduction of RFID is still hindered by three limitations
currently. On the one hand, this is the read rate, which is a purely
technical problem that will be dealt with satisfactorily in the coming
years. Moreover, it is a fact: also a barcode cannot always be read
100 %, for example if it is soiled. The second problem is the transponder
price. Once RFID transponders really become printable (polymer
transponders, cf. Chapter 18) and the costs are only in the cent range,
RFID will fully replace the barcode. Today, there are already application
areas where it is worthwhile using RFID – this book reports on a
small selection of such success stories. At the same time, the economical
use for letters is not possible yet. The price war in this area between
the postal services providers is too fiercely fought – one or two
241

21 Epilogue: En route to the “internet of things”
cents cost advantage per consignment is significant. Finally yet importantly,
a further problem is posed by the international standardization
of both the frequencies and the data model. A specific data
model is required practically for each domain, which is similar to today’s
barcode development that is developed to be differentiated. The
standardization of the IT interfaces, especially in the middleware area,
goes hand in hand with this.
There are two approaches to improve profitability: the first option is
to re-use the transponders. Today, for example we are working on the
use of RFID for baggage handling, where each case is equipped with
an RFID label (Chapter 15). This label is torn off upon arrival and destroyed.
It would actually be far cleverer to use the transponder for
the next flight, for example by integrating it into a case. The second
approach is to use the RFID transponder for additional process steps
such as saving security-relevant information, for example. Thus, the
second screening could be saved as the contents of the case are already
known. RFID integrated as a fixture in cases to improve flight
security could become an amazing application.
Further business cases are for the taking everywhere where the costs
for RFID and also the readout costs are a small proportion of the value
of the product. If, for example, a baggage or letter sorting system
costs hundreds of thousands anyway, it is really without problems to
plan RFID at an appropriate location right from the start. This is definitively
also applicable to the distribution industry. Moreover,
when ensuring product security, there are application scenarios:
complete monitoring may reduce losses in logistics, for example for
luxury articles such as watches. New marketing options such as intelligent
cross-selling are possible in business. Service processes also
profit from RFID: if products are returned today, an employee must
key in long serial numbers with corresponding error risks. If you
have ever stood in the claims line in an electronics shop, you know
very well how long it can take to identify and allocate a product unequivocally.
Finally yet importantly, RFID provides the opportunity to
optimize all the service provision processes associated with a highvalue
product.
However, in reality we must determine that the implementation of
RFID is running slower than was expected by many market observers.
The problem is: the use of RFID requires ample investment in the required,
area-wide infrastructure. It is not a technology that can be
gradually realized systematically. At Deutsche Post, for example, all
83 letter sorting centers would have to be equipped, each letter sort-
242

21 Epilogue: En route to the “internet of things”
ing center perhaps with 20 delivery gates. On the other hand, in particular
the logistics service providers have already achieved a high degree
of automation: the expensive existing systems would have to be
re-equipped at high costs. For RFID, this means that a successful introduction
on a large scale is only to be expected with the next automation
level. If new machines are purchased, it is no problem to
switch to RFID. These investments, which have already been made,
are the only reason why hybrid solutions are talked about at all. It is a
fact that the barcode and RFID will co-exist during a transitional period
of ten years.
En route to “internet of things”
However, RFID also allows for completely new approaches possible.
The concept of “internet of things” is an outstanding example of cooperation
between Siemens, Professor Michael ten Hompel, and the
Fraunhofer Institute for Materials Flow and Logistics (IML). The reason
for our involvement: in order to develop a logistical system such
as a baggage transport system for a large airport, considerable expenses
are incurred due to the enormous complexity. This enormous
complexity can only be mastered by a decentralized system. Moreover,
central systems are more prone to disturbances. Why does the
Internet work so well? Because it is decentralized. Why is it decentralized?
Because it was originally a military system and, therefore, was
not allowed to be vulnerable. However, the vulnerability for optimization,
cost, and quality reasons has considerable significance. “Internet
of things” always follows this remote approach. The individual object
(item) in the “internet of things” knows where it must go on its
own accord. Furthermore, it can communicate the route it must take
locally. Just as for E-mails if the route is not pre-planned and is developed
from server to server.
Let us take a baggage handling system at a large airport as an example
(Fig. 21.2). If there is central architecture, the central computer
will always know where every case is and determine the route for every
branch. For this purpose, considerable data quantities must be
pumped through the system on high-performance network cables. If
a switch is disturbed or a case jammed, a diversion must be switched
and this may well be five switches further back as the station directly
before the disturbance has no chance at all to reach the correct destination.
Such disturbances are dealt with automatically in “internet of
things”. The advantage: it is all possible at considerably less expense,
both on the software side and the hardware side to achieve the same
243

21 Epilogue: En route to the “internet of things”
Fig. 21.2 “Internet of things” could already soon optimize the
processes at the airports (Photo: Werner Hennies/FMG)
effect as with the current architecture. The first simulations carried
out by our experts using data from a real airport proved the feasibility
of the concept in principle. “Internet of things” is thus no longer a
utopian dream but rather a realistic alternative draft to today’s large
central systems.
However, “internet of things” must still prove how such a decentralized
system is able to realize the necessary control and quality assurance
mechanisms. A superordinated level will also remain necessary,
even if it may well enjoy a considerably leaner form. This central component
no longer works in real-time. However, it can measure the service
quality continuously and calculate the appropriate optimization
from this data.
In ten years, there will definitely be sectors that use RFID comprehensively
even if not all branches of industry will be ready. The global
logistics network will become more flexible as a consequence and enjoy
the considerable advantage: the customer is provided with the
same quality at a higher speed and at substantially lower costs. The
use of resources for a defined service quality will also drop, making
an important contribution to the protection of global resources and
the climate. RFID will create a unified language in the world of logistics,
independent of the source or target of a consignment.
244

Bibliography
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Hans-Joerg Bullinger, Michael ten Hompel (Eds.): Internet der Dinge.
Springer 2007
Jari-Pascal Curty, Michel Declerq, Catherine Dehollain, Norbert Joehl:
Design and Optimization of Passive UHF RFID Systems. Springer 2007
Klaus Finkenzeller: Rfid Handbook. Fundamentals and Applications in
Contactless Smart Cards and Identification. Wiley, 2 nd Edition 2003
Werner Franke, Wilhelm Dangelmaier: RFID-Leitfaden für die Logistik –
Anwendungsgebiete, Einsatzmöglichkeiten, Integration, Praxisbeispiele.
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Processes. Wiley 2008
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of Complex Products, Services and Software. Springer 2005
Bernhard Lenk: Data Matrix ECC 200, Monika Lenk Fachbuchverlag 2007
Michael ten Hompel, Hubert Buechter, Ulrich Franzke: Identifikationssysteme
und Automatisierung. Springer 2008
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Dylan Persaud: Are you tuned into RFID? – A how-to guide for RFID Implementations.
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ROI – A Practical Roadmap to Success. J. Ross Publishing 2006
Herbert Ruile: Gläserne Prozesse – RFID-Einsatz in betrieblichen Abläufen.
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Martin Strassner: RFID im Supply Chain Management. Deutscher Universitätsverlag
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2005
246

Editor and authors
Dr. Norbert Bartneck
Dr. Norbert Bartneck is the Competence Center RFID
manager at Siemens AG Mobility Division. He is responsible
for RFID-based logistical solutions with a
main focus on postal and airport logistics. Norbert
Bartneck studied Electrical Engineering at the Technical
University Darmstadt and obtained his doctorate
at the Institute for Communications Engineering
at the Technical University Braunschweig.
Volker Klaas
Volker Klaas is the Competence Center Auto ID/RFID
manager at Siemens AG, IT-Solutions and Services.
He is a member of the RFID working circle at BITKOM
and in the EPCglobal EAG. During his career, he has
gained substantial experience in the management
of sales, consulting, and project management areas.
Volker Klaas studied Economics and Business Administration
at the Bergische Universität Wuppertal.
Holger Schoenherr
Holger Schoenherr is the Competence Center RFID
manager at Siemens AG, Industry Automation Division.
He is an AIM Germany board member. During
his work in various positions at Siemens, he gained
a wide scope of experience in engineering and the
management of large IT and automation projects.
Holger Schoenherr studied Automation Technology
at the Technical University Chemnitz.
247

Editor and authors
Marcus Bliesze
Marcus Bliesze studied Electrical Engineering at the University of
Erlangen-Nuremberg. Following this, he worked in the areas of research,
development, and product management in the field of Real-
Time Locating Systems (RTLS) and RFID. His vocational ports of call
include the Fraunhofer Institute for Integrated Circuits, Cairos Technologies
AG, and Siemens AG.
Hans-Juergen Buchard
Hans-Juergen Buchard studied Computer Science at the University of
Paderborn. He has worked on automation tasks in the automobile
and logistics industry at Siemens AG for several years.
Jens Dolenek
Jens Dolenek is a consultant for the automobile and supplier industry
at the RFID Competence Center at the Siemens AG Industry Automation
Division. His work includes the development of new types of RFID
utilization concepts in this sector. Jens Dolenek studied Electrical and
Automation Technology at the University of Applied Sciences Darmstadt.
Kirsten Drews
Kirsten Drews has worked at the Siemens AG, Industry Automation
Division in Nuremberg since 1991. She is responsible for product
management of the Simatic Machine vision products. Mrs Drews
holds a degree in Industrial Engineering.
Gerd Elbinger
Following his studies of Communications Engineering at the University
of Applied Sciences, Gerd Elbinger worked in the development
departments of well-known companies and managed and implemented
development projects in the control and automation areas.
Since 1995, he has been responsible for product management for
RFID systems at Siemens.
Peter Hager
Peter Hager is the Head of Marketing Management for Simatic sensors
at Siemens AG, Industry Automation Division. After studying Communications
Engineering he worked as a hardware and software
248

Editor and authors
developer at Siemens in Munich as well as managing projects for
high-frequency recording systems.
Dieter Horst
Dieter Horst is the manager of RFID hardware development in the Factory
Sensors Segment at Siemens AG, Industry Automation Division.
In addition to his tasks in the area of research and development, he
also works on various standardization committees at DIN and ETSI.
Dieter Horst is a Communications Engineering graduate from the
University of Applied Sciences Regensburg.
Thomas Jell
Thomas Jell is Head of Department and Senior Principal Consultant at
Siemens AG, IT Solutions and Services. He also executes management
consulting and projects in the areas of Mobile Business Solutions,
RFID-based and Embedded Systems, Supply Chain Management, and
Intelligent Label (RFID) Systems. Thomas Jell is the author of the book
“Objektorientierte Programmierung in C++” and the editor of the
book “Component based Software Engineering”. He is an honorary
member of the ComponentWare Consortium and a founder of the
LICON Logistic Consortium.
Dr. Stefan Keh
Dr. Stefan Keh leads the Siemens business unit Infrastructure Logistics,
the world market leader in postal and parcel service automation
as well as baggage and cargo handling. In his carrier Stefan Keh
acquired significant experience in development and sales of automation
and software solutions. He held various executive positions
within Siemens and other companies. Stefan Keh holds a master
degree and a PhD in physics; he got his education at the universities
of Wuerzburg, Stony Brook, Hamburg, Stanford and the research
institutes DESY in Hamburg and CERN in Geneva.
Harald Lange
Harald Lange was responsible in the Siemens AG RFID Competence
Center, Industry Automation Division as an industry consultant for
the pharmaceuticals, chemistry, and foodstuffs sectors and worked
out and implemented RFID-based applications in these industries.
Harald Lange is a graduate engineer, specialized in the field of energy
conversion engineering.
249

Editor and authors
Dr. Stephan Lechner
Dr. Stephan Lechner is a Doctor of Cryptology with more than 18
years’ experience in IR security. He managed central security research
at Siemens AG from 2002 to 2007. He is a member of several
national and European security committees and a certified information
security expert (CISSP). He has been the director of the Institute
for Security and Protection of Citizens of the European Commission
since November 2007. Dr. Lechner studied Mathematics at Gießen
University.
Wolfgang Mildner
Wolfgang Mildner has been the managing director of PolyIC GmbH
and Co.KG, a joint venture between Siemens AG and Leonhard Kurz
GmbH, since 2004. PolyIC develops technologies for printable electronics,
focusing on RFID transponders. He is the chairman of the
Organic Electronic Association/VDMA. Wolfgang Mildner read Informatics
at the Technical University Erlangen.
Heinz-Peter Peters
Heinz-Peter Peters works as an industry consultant for transportation
and logistics in the RFID competence center at Siemens AG
Industry Automation Division, and is responsible for elaborating
RFID solution concepts for airports/airlines and aerospace, logistics,
and postal services. He works in several committees, for example
IATA (International Air Transportation Association). Heinz-Peter
Peters studied Electrical Engineering at the Lower Rhine University
of Applied Sciences.
Regina Schnathmann
Regina Schnathmann has been working on RFID for several years at
Siemens AG. She has been responsible for worldwide communication
activities such as a key account manager for airport and postal automation
at Siemens AG since 2006. Mrs. Schnathmann attended Business
Studies at Otto-Friedrich University in Bamberg.
Peter Schrammel
Peter Schrammel is a systems architect for RFID solutions at Siemens
AG, IT Solutions and Services in the area of program and system
development. Since his studies of Computer Science at the Vienna
University of Technology and the Ecole Polytechnique Fédérale de
250

Editor and authors
Lausanne, he has worked intensely on RFID systems. His work focuses
on design and development of RFID systems and components.
Michael Schuldes
Michael Schuldes is a Senior Process Consultant at Siemens AG, IT
Solutions and Services in Munich. He advises companies on the topic
of transport and logistics as well as Supply Chain Management.
Michael Schuldes has many years’ experience in designing and piloting
projects for the optimization of processes using RFID technology.
He studied Mechanical Engineering in Munich.
Georg Schwondra
Georg Schwondra is responsible for RFID solutions in the area of program
and system development at Siemens AG, IT Solutions and Services.
In this function, he is responsible for product development,
platform development, and solution projects in the RFID sector.
Georg Schwondra studied Industrial Electrical Engineering and Control
Technology at the Vienna University of Technology.
Peter Segeroth
Peter Segeroth is a senior consultant in the Siemens AG, IT Solutions
and Services Center of Competence for Auto ID/RFID. His extensive
experience includes project management, process analysis, and profitability
analysis for large IT projects. Peter Segeroth studied Business
Administration at the University of Applied Sciences in Cologne.
Markus Weinlaender
Markus Weinlaender is the marketing manager of the Competence
Center RFID at Siemens AG, Industry Automation Division and coordinates
the marketing activities for the Group-wide RFID initiative
by Siemens. He is a graduate of the Siemens Technical Academy in
Erlangen in the special field of data and automation technology and
studied European Business Administration at the EFH Hamburg.
His book “Entwicklung paralleler Betriebssysteme” was published
in 1994.
251

Index
2D code 38, 119, 190
A
Acceleration 217
Activation modules 65
Active systems 35
Actual Process Analysis
96
Advanced Encryption
Standard (AES) 231
AIM website 40
Air Canada 181
Airside 180
ALE 72
Alternating border 41
Ambient data 67
Ambient parameters
217
Anti-counterfeit 212
Anti-theft devices 33
Application Level Events
Interface (ALE) 72
Architecture 57, 240
Arland Stockholm 181
Assembly 117
Asset management 136,
193
Asymmetric cryptography
235
AutoID Lab 18
Automation hierarchy
118
Automobile industry
167
Automotive industry
115, 132, 150
Availability 70, 233
Aztec code 40
B
Backscatter 32
Baggage handling system
243
252
Baggage transport 179
BagTag 182
Barcode 38, 74, 118,
128, 189
Benefit 100
Blood preserves 205,
223
Boxes 135
Brand protection 212
Business case 94, 242
Business models 145
Business processes 57,
95
C
Calculation 100
Camera unit 48
Capability 191
Capacity 28
Capital 98
Cargo Logistics 185
CCD camera 53
CE marking 82
Central architecture
systems 58
Centralized architecture
240
CEPT 83
Certificate 234
Chain 217
Chemical industry 132,
151
Cincinnati international
airport 180
Cold chain 205
Communication modules
27
Communication parameter
68
Confidentiality 233
Configuration 68
Consumer goods industry
158
Container management
135
Container tracking 227
Containers 135, 190
Control 227
Controller unit 48
Cost estimate 102
Cost optimization 114
Costs 94, 123
Coupling 30
D
Data Encryption Standard
(DES) 231
Data Matrix Code 38, 74
Data protection 227
Data-on-network 67
Data-on-tag 67
Decentralization 118
Decentralized data
storage 240
Degression effect 114
Direct Part Marking
(DPM) 39, 75
Distribution logistics
130
Dock and Yard Management
167, 174, 194
E
EAN 38, 89
ECC200 42
Economic viability 141,
204
Edge servers 60
Edgeware 60
EDI 90, 141
Electromagnetic coupling
31
Electronic passport 229
Electronics industry
116, 131, 160
Emirates Airlines 181

Encryption 230
Enterprise Resource
Planning (ERP) 60, 78
EPCglobal 71, 89
E-Pedigree 151
ERP systems 78
Error Correcting Code
(ECC) 43
Error diagnosis 69
Ethernet 27, 51
European Article Number
(EAN) 38, 89
European Conference of
Postal and TelecommunicationsAdministrations
(CEPT) 83
F
FDA 153
Feasibility test 105
Federal Aviation Administration
(FAA) 180
Field test 105
Finder border 41
Fingerprint 190
Finsa 132
Firmware 69
Fleet management 172
Flexible manufacturing
stations 118
Food industry 116, 131,
224
Food stuff industry
151, 211
Ford, Henry 114
Frankfurt Airport 184
Freight 177
G
German Federal Office
for IT Security 229
Global Returnable Asset
Identifier (GRAI) 140
Goods receipt 127
Groupability 28, 241
Grupo Leche Pascual
155
GS1 40, 89, 140
H
Healthcare 198
Heartbeat messages 68
High-frequency 36
Hong Kong international
airport 181
Hybrid solutions 243
I
IATA 182
Identification 25
Imaging Science Institute
(ISI) 204
Individualized serial
products 115
Inductive coupling 30
Industry 177, 212
Information security
227
Infrastructure 57, 123
Integration 64, 111,
239
Integrity 233
Interface 26, 29, 51, 64
International unique
identification of RTIs
139
Internet of things 18,
133, 196, 243
Internet platform 239
Investments 98
Inward stock movement
129
ISI 204
ISO/IEC 18000 83
IT backbone 239
IT systems 109
J
Jacobi Medical Center
199
Johnson Controls 132
Just-in-sequence 128
Just-in-time 128
K
Kanban 128, 130
Klinikum rechts der Isar
201
Klinikum Saarbruecken
199
KSW-VarioSens 221
Index
L
Landside 180
Laser etching 45
Lighting 47
Localization 193
Locating 25
Locating systems (RTLS)
35
Location 198
Logging 219
Logistics 126, 238
Low frequency 36
M
MacoPharma 224
Made-to-order 115
Mail items 190
Mail-item 195
Maintenance 172, 183
Maintenance concept
111
Manipulation 230
Manufacturing 149
Manufacturing technologies
117
Mass customization
115
Maxdata 131
Maxwell, James Clerk
15
MedicAlert 200
Memory capacity 122
Microwaves 37
Middleware 60
Mobile data storage unit
25
Moby U 122
Moby I 124
Moby M 17
Moby R 170
Models 29
MVRC 76
N
Near Field Communication
(NFC) 32
Newark international
airport 180
253

Index
O
Object description data
66
Object identification 66
Object Naming Service
(ONS) 72
Odette 139
Open Mail Handling System
(OMS) 238
Operating model 165
Optimization 100
Option diversity 158
Orbit Logistics Europe
132
P
Pallets 131, 135
Partner management
109
Passive systems 30
Patient files 201
Patient security 198
Patients 198
Pharmaceutical industry
152, 211, 225
Picking 131
Pilot operation 108
Polymer 196, 210
Polymer technology
241
Postal logistics 188
Pressure 217
Printed electronics 211
Printing 45
Process 74
Process data 67
Process industry 151
Process reengineering
111
Process sequence performance
model 96
Process slip 118
Processing 48
Product imitations 211
Production 114
Production data 121
Production logistics
126
Production process 131
Productivity 100
Profibus 51, 65
254
Profitability 94, 242
Programmable Logic
Controller (PLC) 27,
76, 119, 152
Project 104
Protection measures
230
Public Key Infrastructure
(PKI) 235
Public local transport
172
Push principle 130, 238
Q
QoS 69
QR code 40
Quality assurance 148,
155
Quality management
155
Quality of Service (QoS)
69
Quantify 102
Quelle 131
R
Radio Frequency Identification
(RFID) 24, 74,
120-121, 128, 178, 190,
198, 210
Range 122
Rate 52
Reader 25
Reading distance 28
Reading rate 109
Real-Time Locating Systems
(RTLS) 167
Relative humidity 217
Repair 163
Requirements 74
Returnable Transport
Items (RTI) 135
Return-on-Invest (ROI)
102, 105, 204
Reusable transport
trusses 131
Reusable transport unit
135
RFID 24, 74, 120-121,
128, 178, 190, 198, 210
RFID clones 233
RFID gates 169, 192
RFID reading device 25
RFID systems 34
ROI 102, 105, 204
Roll-out 110
Roll-to-roll process 213
Routing information
129
RS232 27, 51, 65
RS422 27, 65
RS485 51
RTI 135
RTLS 35, 167
RTLS-Access-Point 168
S
SEAGsens 219
Security 69, 227
Semi-active systems 34
Sensors 192, 217, 221
Separation 122
Service 183
Shipping 127
Sicalis RTL 170
Siemens 123, 144, 238
Simatic RBS 182
Simatic RF Manager 65
Solution design 108
Standardization 236
Standards 82
Supply chain 238
Supply chain networks
139, 159
Supply network 212
Swissair/Sabena 181
System stability 70
Systems 30, 34-35, 181
T
Target analysis 95
Target concept 97, 104
Technology 46
Temperature 217
Temperature sensor
205
Test concept 106
Theater equipment 198
Tnuva 131
Tool management 145
Toronto airport 181

Tracking and tracing
148
Trade 161
Training 111
Transformation process
117
Transponder 16, 29
Transport technology
129
Trolleys 135, 180
U
Ultra-high frequency
36
Uniform Code Council
(UCC) 89
Unique Identification
(UID) 40
Unit Load Devices (ULD)
185
USB 65
USB interface 51
V
Value chain 115
Vancouver airport 181
Variety options 115
VDA 139
Vehicle control system
175
Vehicle logistics 167
Vendor Managed Inventory
(VMI) 132
Version variety 114
Vibration 217
Index
W
WLAN 65
Workpiece carrier 121,
135
Wuhan airport 182
X
X.509 236
XML 66
Z
Zaventem Brussels 181
ZOMOFI 222
Zurich airport 181
255