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5th October 2010
Presented by
Carlo K Nizam Head of Value Chain Visibility and Auto-IDAIRBUS
Airbus Executive Overview
Value Chain Visibility & Auto-ID
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MACRO CHALLENGES
• 18 design/manufacturing/assembly sites across the world
• Exchange rate pressures
• New aircraft programmes (A380, A400M, A350, tanker/transport)
• Production rate increases
• Power 8+ programme
• Clear focus on enterprise eco-efficiency
Constant pressure for continuous improvement and innovation
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Why Increase Visibility? Why RFID?
Business Savings EBIT, Cash, Cost Avoidance
Visibility Information about working, not working
Measurability Where is it working, not working?
Improve the way of workingBusiness Process
RFID, Bar Codes etc. Accurate and efficient information
Quick winsthrough data automation
Long term winsthrough structural
process transformation
Improving visibility is a pre-requisite to improve the “way of working” and deliver business savings
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Visibility, Measurability and SavingsThey are all connected
All business savings come from improving a “way of working” i.e. process
Level of visibility and measurability determines level of process improvement
RFID can help improve level of visibility and measurability savings
Improved Accuracy Control Efficiency of Processes
Improved Business Savings
Manual based visibility with low measurability (e.g. manual data entry)
Semi-automated visibility with increased measurability (e.g. bar code)
Automated visibility with high level of measurability (e.g. RFID )
The level of visibility and measurability determines the level of savings possible; RFID is an promising enabler to increase this level of savings
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RFID + PROCESS MONITORINGEnables Process Improvement
RFID
Automation↑ Productivity
↑ Quality
↓ Cycle time
+
Real time reporting↑ Process Optimisation
↓ Identify Variations
↓ Automated Alerts
Process Monitoring
RESULT = Leaner and more competitive business processes
Set Alert parameters for process
steps
Set Alert parameters for process
steps
Monitor performanc
e against targets
Monitor performanc
e against targets
KPI trend and
prediction
KPI trend and
prediction
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CROSSROADS & DECISION TIMEThe situation pre-corporate programme
Collection of 15 independent projects
Fragmented approach; multiple standards, solutions and vendor landscape
Creation of multi-function Auto-ID Steering Committee
Company strategy, consolidation and prioritisation of activities
Agreement to develop a harmonised approach and solutions for deployment
Analysis of benefits, pilot proof points, bottom up business cases, industrialisation
Selection of standard solutions and services for Airbus/EADS
Clear pull from internal/external customers ONE Airbus approach : it works!
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Company approach to improve business processes through better visibilityScope is focused on big picture; Airbus value chain not functional silosRFID is seen as a key enabler to improve visibility & business processes
Airbus is taking an integrated and value chain approach for the potential application of Auto-ID across its business processes
Logistics & Distribution
Assembly LinesAirbus Suppliers Customer in Service
Transport Logistics Take Off
What is Value Chain Visibility and Auto-ID?
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Warehouse Logistics and Inventory Management
Generic Asset Tracking (Containers, Spares, Tools, Jigs)
Global Transport Network
As-Built Configuration Management and Attestation
Tool Loans and Consignment Stock
Luggage operation
Cargo operation
Catering operation
As-Flying Configuration Management Processes
Optimized Maintenance Repair & Overhaul Process
Logistics & Distribution
Assembly LinesAirbus Suppliers Customer in Service
Transport Logistics Take Off
Suppliers Logistics Distribution
ManufacturingAssembly
CustomerServices Airline MRO &
Services
NON-FLYABLE VISIBILITY FLYABLE VISIBILITY
VALUE CHAIN VISIBILITYTwo categories of Visibility
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Strategic BenefitsReal time visibility and automatic update of events across the value chainUnprecedented high level of information accuracyMove to a digital “fly by wire” supply chain
Process BenefitsMore efficient automated processes shorter cycle times less inventoryIncreased accuracy & control of business operations less non conformitiesIncreased traceability of part life cycle less paper, less time lower costsMore automation Less manual intervention Improved labour productivity
Business BenefitsReduction in Inventory & Capital AssetsIncreased Labour Productivity and lower Cost of Non Quality
RESULT = Leaner and more competitive business processes
Supply Chain
• Real time delivery confirmation
• Global automated transport tracking
• Improved demand stability
• Increased visibility of inventory
Logistics/Distribution
• Automated data entry and tracking
• Faster processes, less inventory
• More accurate inventory, stockchecks
• Improved inventory management
Assembly
• Automated data entry
• More accurate & efficient configuration
• More accurate & efficient attestation
• Faster cycle times
Airlines/MROs/Suppliers
• Simplification of as flying configuration
• More efficient/effective lifecyle mgmt
• Faster repair turnaround process
• Automated ULD/baggage/catering tracking
Reduce productioncost of aircraft
Reduce productioncost of aircraft
Reduce operatingcost of aircraft
Reduce operatingcost of aircraft
BENEFITSIncreasing Visibility Through RFID
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DIFFERENT TYPES OF RFIDTotal Lifecycle Traceability
Value Chain Visibility and Auto-ID Programme
Non-Flyable Flyable
Release 3Release 2Release 1
Logistic Distribution Manufacture Assembly Lifecycle of parts Cargo
Supply Chain Tracking(3PL Centre, Toulouse)
Warehouse Logistics(3PL Centre, Toulouse)
Inventory Management(A380 FAL, Toulouse)
Distribution Tracking(A380 FAL, Hamburg)
Global Transportation (Beluga Hamburg Station)
Work In Progress (Hamburg, St Nazaire, Broughton)
AS BUILT Config Mgmt (LR FAL, Toulouse)
Tool Tracking/Calibration (A400M, Filton)
Cabin Configuration (Airline 1)
Payload Tracking(Airline 4)
Repair Shop Processes (Airline 2)
Spares Logistics/ FHS (Airline 3)
RFIDshipping
labels
RFID Containers
RFIDonjigs
RFID on partsRFID
ontools
RFID onassets
There is no one size fits all solution
Different RFID enablers are used for different processes
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DIFFERENT TYPES OF RFIDIntegrated into a standard corporate s/w platform
Value Chain Visibility and Auto-ID Programme
Non-Flyable Flyable
Release 3Release 2Release 1
Logistic Distribution Manufacture Assembly Lifecycle of parts Cargo
RFIDshipping
labels
RFID Containers
RFIDonjigs
RFID on partsRFID
ontools
RFID onassets
Device Interfacing & Data Event ProcessingDevice Interfacing & Data Event Processing
Business & Infrastructure Monitoring and ReportingBusiness & Infrastructure Monitoring and Reporting
Business Process Mapping & Legacy System IntegrationBusiness Process Mapping & Legacy System Integration
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RELEASE 1 – NON FLYABLE PILOT Warehouse Logistics
RFID Printer
RFID Readers
Motion SensorRFID Antennae
SCOPE
Warehouse Logistics and Inventory Management
RFID enhanced shipping labels on delivery boxes
BENEFITS
100% Automated Data Entry
Goods Receipt, Inspection, Move/Pick, Inventory Mgmt
75% Reduction in physical handling time
↑ Labour Productivity, ↓ Inventory
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RELEASE 1 (NON FLYABLE) Distribution
Main Deck
Upper Deck
Lower Deck
Floor Deck
LiftFurnishing Hangar
RFID Reader (Identification points)
Each Dock has 11 Read Points (5 on the Left, Right and 1 centre). There are 6 docks in total on the A380 Final Assembly Line
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RELEASE 1 (NON FLYABLE)Distribution
RFID Tag RFID Antennae
Motion SensorsRFID Reader
Error Light
Scope
750 Material Delivery Units (MDUs) containers per A380
Automated life cycle tracking of MDUs from 3PL to FAL
BENEFITS and STATUS TODAY
Streamline processes; right place, right time, first time
Reduce containers by 8% compared to manual process
Pilot Phase Over – Now in Production, 4500 containers
100+ RFID Reader Installations
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RELEASE 2 (NON FLYABLE)Global Transportation
BENEFITS
Automated Jig Tracking
Avoidance of delays and manual checks
Optimised Beluga Flight Schedules
STATUS
Pilot - Completed
Industrialisation - Completed
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RELEASE 2 (NON FLYABLE)Tooling Management
BENEFITS
Automated tools booking in/out and workers association
Optimised maintenance and calibration cycles
No tools search time, less work stoppage
STATUS
Pilots – Completed
Industrialisation – Completed
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RELEASE 2 (NON FLYABLE)Configuration Management
Business and Economy Class Seats and Life Vests
Tagging
Seats
LifeVests
Seats
Locations Tagging
LifeVests
BENEFITS
Automated and Digital Attestation Process
Faster Cycle Time and Reduced Paperwork
Improved Configuration Management
STATUS
Pilot - Completed
Industrialisation – Completed
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RELEASE 2 (NON FLYABLE)Work in Progress (WIP)
Green dots are the tools moving in 3D and in real-time with accuracy of 15cm
Wing Assembly Centre
BENEFITS
Automatic and real-time visibility of industrial processes
Automatic monitoring of processes and variations
Key enabler for Lean Improvements
STATUS
Pilot - Completed
Industrialisation – Completed
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RELEASE 3 (FLYABLE)Current Status
Use Case Studies4 opportunity studies completed with airline customers and MRO partners All payback within 12 months, strong savings (up to multi-million €/year)
A350 XWB RFID Part Marking Specifications Distributed to Airbus suppliers in 2008, based on approved standardsWorking with suppliers to deploy RFID solutions for part marking
Aerospace RFID Standards FinalisedATA Spec 2000 for data structure and high memory managementSAE AS5678 for performance minima, test conditions and robustness
The introduction of RFID part marking on A350 XWB will help enable customers reduce their maintenance costs
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NEXT STEPSEADS and Beyond…
EADS Parent GroupExpansion across multiple business units within EADS Group Projects re-using Airbus processes, solutions, contracts and vendorsRe-use of standards : Faster, cheaper and better
Airlines Airbus : catalogue of benchmark RFID processes across aircraft lifecycleNot limited to Airbus; generic and applicable to all players in the industryApproached by number of airlines to develop and deploy projectsOne project already completed, others underway
Airbus catalogue of standard processes and solutions is providing value to multiple actors across the value chain
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Summary
Airbus recognises RFID as a key enabler for improving processes
Airbus is taking an integrated & end to end approach to the use of RFID across all business processes through a single corporate programme
Airbus is actively working with airline, supply chain and industrial partners to develop an approach that maximises benefits to all actors
Airbus is working with major industry players, standards bodies and authorities to ensure inter-operable RFID solutions
Airbus is using RFID as a BUSINESS RADAR to help build a DIGITALand FLY BY WIRE view of the supply chain and its business operations
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© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
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