Team #1

AIRBUS

LOL

C H R I ST M

D A N I E L L EN

10/30/11

2

European aircraft manufacturer

Major delays completing its A380

Implemented the biggest private sector RFID deal ever

http://youtube/m2Dka1B1KVk?t=18s

Company Background

3

Airbus was looking for the way to: increase productivity reduce cost make its production process more efficient.

Business challenge

4

RFID What is it?

◦ Radio Frequency Identification How does it work?

Technical solution

5

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)

Technical solution

6

Airbus uses RFID in:

Technical solution

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

7

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

Technical solution result

8

Opportunities:

increase productivity

reduce costs

make its production process more efficient

Boeing Competition

1. What are the drivers of the RFID project?

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RFID: a) Software infrastructure

b) Readers

c) Tags

Turban, E., & Volonino, L. (2009). Information Technology for Management. Hoboken, NJ: John Wiley & Sons Inc.

2. Information technologies cited and related to implementation?

10

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-frequency-identification-rfid-award/

Airbus wins radio frequency identification (RFID) award

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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

3. What categories of people will be supported by the RFID?

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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

5. What are the performance management implications?

13http://www.airbus.com/support/material-logistics/