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25th October 2012
Carlo K Nizam
Presented by
Carlo K Nizam Head of Value Chain Visibility and Auto-ID
Airbus Executive Overview
Value Chain Visibility & Auto-ID
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Carlo K Nizam Page 2
AGENDA
Airbus Corporate Challenges
Introduction to Visibility
The Value Chain Visibility Programme
Examples of industrial projects
Key Updates
Q & A
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Carlo K Nizam Page 3
MACRO CHALLENGES
• 18 design/manufacturing/assembly sites across the world
• Exchange rate pressures
• New aircraft programmes (A380, A400M, A350, A320 NEO)
• Production rate increases
• Power 8+ programme, EBIT pressures
• Clear focus on enterprise eco-efficiency
Constant pressure for continuous improvement and innovation
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Carlo K Nizam Page 4
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 working Business Process
RFID, Bar Codes etc. Accurate and efficient information
Quick wins
through data
automation
Long term wins
through
continuous
improvement
Improving visibility is a pre-requisite to improve the “way of working” and
deliver business savings
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Carlo K Nizam Page 5
Visibility, Measurability and Savings They 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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Carlo K Nizam Page 6
Strategic Benefits
Real time visibility and automatic update of events across the value chain
Unprecedented high level of information accuracy
Move to a digital “fly by wire” supply chain
BENEFITS Increasing Visibility Through RFID
Process Benefits
More efficient automated processes shorter cycle times less inventory
Increased accuracy & control of business operations less non conformities
Increased traceability of part life cycle less paper, less time lower costs
More automation Less manual intervention Improved labour productivity
RESULT = Leaner and more competitive business processes
Business Benefits
Reduction in Inventory & Capital Assets
Increased Labour Productivity and better avoidance of Costs
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 production
cost of aircraft
Reduce operating
cost of aircraft
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Carlo K Nizam Page 7
RFID + PROCESS MONITORING Enables 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
Monitor performance
against targets
KPI trend and
prediction
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The VCV Programme The Business Radar Concept
+ = Accurate
Streamlined
Efficient operations
RFID + = Accurate
Streamlined
Efficient operations
RFID = Airbus Business Radar
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Carlo K Nizam Page 9
CROSSROADS & DECISION TIME The birth of the corporate programme
MULTI-DIMENSIONAL CONVERGENCE
ONE Airbus approach : it works!
Pre-Value Chain Visibility programme (<2007)
Collection of 15 independent projects
Fragmented approach; multiple standards, solutions & vendor landscape
Post Value Chain Visibility Programme (2007+)
Creation of multi-function Auto-ID Steering Committee
Company strategy, consolidation and prioritisation of activities
Agreement to develop a harmonised approach/solutions for deployment
Selection of standard solutions and services for Airbus/EADS
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Carlo K Nizam Page 10
Company approach to improve business processes through better visibility
Scope is focused on big picture; Airbus value chain not functional silos
RFID is seen as a key enabler to improve visibility & business processes
Airbus is taking an integrated and value chain approach for the
application of Auto-ID across its business processes
Logistics &
Distribution Assembly Lines Airbus Suppliers Customer in Service
Transport
Logistics Take Off
What is Value Chain Visibility and Auto-ID?
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The VCV Programme Total Lifecycle Visibility
Value Chain Visibility and Auto-ID Programme
Non-Flyable Flyable
Logistic Distribution Manufacture Assembly Inservice lifecycle 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 (A380 Hamburg, St Nazaire, Broughton)
Config Mgmt + Attestation (LR FAL, Toulouse)
Tooling Management (A400M, Filton + SA Flowline, Broughton)
Cabin Configuration (Airline 1)
Payload Tracking (Airline 4)
Repair Shop Processes (Airline 2)
Spares Logistics/ FHS (Airline 3)
Each of these boxes is an RFID Process Lighthouse
The area in brackets is where the first lighthouse was deployed
A350 XWB : 3000 parts are being delivered with RFID that will enable these processes
The portfolio of RFID process “lighthouses” already deployed in multiple business areas can benefit all industry sectors
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Carlo K Nizam Page 12
DIFFERENT TYPES OF RFID Total Lifecycle Traceability
Value Chain Visibility and Auto-ID Programme
Non-Flyable Flyable
Logistic Distribution Manufacture Assembly Lifecycle of parts Cargo
There is no one size fits all solution
Different RFID enablers are used for different processes
RFID
labels
RFID
Containers RFID
jigs
RFID on parts
RFID
tools
RFID on
assets RFID
jigs
RFID
tools
RFID
labels
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Carlo K Nizam Page 13
DIFFERENT TYPES OF RFID Integrated into a standard corporate s/w platform
Value Chain Visibility and Auto-ID Programme
Non-Flyable Flyable
Logistic Distribution Manufacture Assembly Lifecycle of parts Cargo
RFID
shipping
labels
RFID
Containers
RFID
on
jigs
RFID on parts
RFID
on
tools
RFID on
assets
Device Interfacing & Data Event Processing
Business & Infrastructure Monitoring and Reporting
Business Process Mapping & Legacy System Integration
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Carlo K Nizam Page 14
NON FLYABLE Tooling Management : A400M Wing Assembly Line, UK
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
EXPANSION : 65,000 Tools UK and Germany
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NON FLYABLE Tooling & Logistics Management : A350 FAL, Toulouse
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Real-time localisationLocalising a Business Item
LAST SAP UPDATE 20/01/2011 17h15
POSITION DESIGNATION
+
CORDON MÉTALLIQUE*
3121
3120 Cordon métallique couteau court
Cordon métallique couteau longP30Y_L79_SOU
P40B_G30_SOL
3121
3120
P30X P30YP47 / P59
P4
0B
P4
0A
M5
5
P50A
P
50B
M50
EQT NB
Business ItemSort by Item shadowed Maintenance status
BENEFITS
Automated tools booking in/out
No tools search time, less work stoppage
Automated logistics tracking
STATUS
Pilots – Completed
Industrialisation – EIS Dec 2012 (175+ sensors)
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Carlo K Nizam Page 16
NON FLYABLE Configuration Management : A330 FAL, Toulouse
Business and Economy
Class Seats and Life Vests
Tagging
Seats
Life
Vests
Seats
Locations Tagging
Life
Vests
BENEFITS
Automated and Digital Attestation Process
Faster Cycle Time and Reduced Paperwork
Improved Configuration Management
STATUS
Pilot - Completed
Industrialisation – Completed
EXPANSION : A320, A380 + A350 Final Assembly Lines
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Carlo K Nizam Page 17
NON FLYABLE Visibility of Industrial Processes (VIP) : A380 Assembly Sites
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
Project - Completed
EXPANSION : All A380 Assembly Sites
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Carlo K Nizam Page 18
FLYABLE : CURRENT STATUS In-Service Configuration, Repair and Maintenance
Reminder of Scope
A350 XWB target is 3000 parts / 700 part numbers per aircraft
All parts that are serialised, line replaceable, repairable or with a life limit
Why is Airbus doing this?
Strong confirmed interest from 34 airlines/MROs
Validated studies with airlines/MRO confirm multi €M savings per actor
First A350 XWB: Technology Maturity and Readiness Tests
RFID parts for MSN 1 have been delivered by OEMs + successfully tested
All involved OEMs are on track for first customer aircraft (MSN 4)
The use of RFID part marking on A350 XWB will help enable
benefit for all actors across the value chain
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Carlo K Nizam Page 19
FLYABLE : NEXT STEPS In-Service Configuration, Repair and Maintenance
Continue support to supply chain partners
Interoperability assessment of multiple RFID system components
Chips, tag, readers and software
Guidance and Support to Airlines
Answer customer questions and provide early adopter support
Share Airbus experience and guide technology use cases
RFID Beyond A350 XWB deployments
Decision taken to expand RFID tags on parts on all Airbus aircraft
Life-vest & seats across Airbus fleet (2013)
1st aircraft manufacturer to introduce RFID on its aircraft A350 XWB
1st aircraft manufacturer to introduce RFID across fleet A320/330/380
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Carlo K Nizam Page 20
Value Chain Visibility Airbus, EADS and Extended Enterprise
Airbus processes are providing value to multiple actors across
the value chain within and outside aerospace
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Carlo K Nizam Page 21
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 DIGITAL
and FLY BY WIRE view of the supply chain and its business operations
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Carlo K Nizam Page 22
© AIRBUS S.A.S. All rights reserved. Confidential and
proprietary document.
This document and all information contained herein is the sole
property of AIRBUS S.A.S.. No intellectual property rights are
granted by the delivery of this document or the disclosure of
its content. This document shall not be reproduced or
disclosed to a third party without the express written consent
of AIRBUS S.A.S. This document and its content shall not be
used for any purpose other than that for which it is supplied.
The statements made herein do not constitute an offer. They
are based on the mentioned assumptions and are expressed
in good faith. Where the supporting grounds for these
statements are not shown, AIRBUS S.A.S. will be pleased to
explain the basis thereof.
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