Team #1 L O L C H R I S T M D A N I E L L E N 10/30/11 A I R B U S European aircraft manufacturer Major delays completing its A380 Implemented the biggest private sector RFID deal ever http://youtube/m2Dka1B1KVk?t=18s 2 Airbus was looking for the way to: increase productivity reduce cost make its production process more efficient. 3 RFID What is it? ◦ Radio Frequency Identification How does it work? 4 RFID is using as a business radar ◦ let (them) see what's going on faster and in real time so (they) can make the right decisions faster." (Gaudin, 2008) 5 Airbus uses RFID in: Minimize unplanned maintenance and detect malfunction early Manage and reduce airline parts inventories Manage and reduce airline parts inventories Ensure that the correct part is being used in the right place Mechanics can access document, task, and parts data, and locate and track approved spare parts in real time Identify and track tool location, usage history, and repair requirements 6 a reduction in inventory, capital assets and stock reconciliations increased labour productivity supplier monitoring improved supplier delivery performance reduce their costs of production, maintenance and inventory reduced 8% incorrect deliveries 7 Opportunities: increase productivity reduce costs make its production process more efficient Boeing Competition 8 RFID: a) Software infrastructure b) Readers c) Tags Turban, E., & Volonino, L. (2009). Information Technology for Management. Hoboken, NJ: John Wiley & Sons Inc. 9 Conference held April 16-18, Las Vegas, Nevada won the best company RFID implementation award at the 2008 U.S. held April 16-18. - comprehensive approach to deploying RFID company-wide, its pilot & implementation results, and its focus on delivering quick value to the company and its value chain partners. - http://www.airbus.com/newsevents/news-events-single/detail/airbus-wins-radio-frequencyidentification-rfid-award/ 10 An RFID is a system that transmits the identity of an object or person wirelessly, using radio waves RFID’s can be used for ◦ ◦ ◦ ◦ ◦ Supply chain management Membership admission/access control Work in Progress (WIP) Vehicle Tracking Asset Tracking The warehouse workers of Airbus will be supported by the implementation of RFID’s 11 Airbus implemented process-improvement projects involving RFID’s ◦ Will help to track parts inside warehouse, as they move from one region to another, and as they are built into the aircraft • Because RFID’s cost more than $1 per tag, Airbus uses them only on rolling cages, pallets, cases, and high cost parts 12 http://www.airbus.com/support/material-logistics/ 13