AIRBUSAIRBUS 10/30/11

European aircraft manufacturer Major delays completing its A380 Implemented the biggest private sector RFID deal ever 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 Identication 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: 6 Minimize unplanned maintenance and detect malfunction early Manage and reduce airline parts inventories Mechanics can access document, task, and parts data, and locate and track approved spare parts in real time Manage and reduce airline parts inventories Ensure that the correct part is being used in the right place Identify and track tool location, usage history, and repair requirements

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 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. identification-rfid-award/ 10

An RFID is a system that transmits the identity of an object or person wirelessly, using radio waves RFIDs 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 RFIDs 11

Airbus implemented process-improvement projects involving RFIDs Will help to track parts inside warehouse, as they move from one region to another, and as they are built into the aircraft Because RFIDs cost more than $1 per tag, Airbus uses them only on rolling cages, pallets, cases, and high cost parts 12

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