airbus global overview - rfidjournal.net executive overview ... (a380, a400m, a350, a320 neo) ......

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25 th 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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Page 1: Airbus Global Overview - rfidjournal.net Executive Overview ... (A380, A400M, A350, A320 NEO) ... Summary Airbus recognises RFID as a key enabler for improving processes

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

Page 2: Airbus Global Overview - rfidjournal.net Executive Overview ... (A380, A400M, A350, A320 NEO) ... Summary Airbus recognises RFID as a key enabler for improving processes

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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

Page 3: Airbus Global Overview - rfidjournal.net Executive Overview ... (A380, A400M, A350, A320 NEO) ... Summary Airbus recognises RFID as a key enabler for improving processes

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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

Page 4: Airbus Global Overview - rfidjournal.net Executive Overview ... (A380, A400M, A350, A320 NEO) ... Summary Airbus recognises RFID as a key enabler for improving processes

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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

Page 5: Airbus Global Overview - rfidjournal.net Executive Overview ... (A380, A400M, A350, A320 NEO) ... Summary Airbus recognises RFID as a key enabler for improving processes

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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

Page 6: Airbus Global Overview - rfidjournal.net Executive Overview ... (A380, A400M, A350, A320 NEO) ... Summary Airbus recognises RFID as a key enabler for improving processes

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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

Page 7: Airbus Global Overview - rfidjournal.net Executive Overview ... (A380, A400M, A350, A320 NEO) ... Summary Airbus recognises RFID as a key enabler for improving processes

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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

Page 8: Airbus Global Overview - rfidjournal.net Executive Overview ... (A380, A400M, A350, A320 NEO) ... Summary Airbus recognises RFID as a key enabler for improving processes

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The VCV Programme The Business Radar Concept

+ = Accurate

Streamlined

Efficient operations

RFID + = Accurate

Streamlined

Efficient operations

RFID = Airbus Business Radar

Page 9: Airbus Global Overview - rfidjournal.net Executive Overview ... (A380, A400M, A350, A320 NEO) ... Summary Airbus recognises RFID as a key enabler for improving processes

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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

Page 10: Airbus Global Overview - rfidjournal.net Executive Overview ... (A380, A400M, A350, A320 NEO) ... Summary Airbus recognises RFID as a key enabler for improving processes

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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?

Page 11: Airbus Global Overview - rfidjournal.net Executive Overview ... (A380, A400M, A350, A320 NEO) ... Summary Airbus recognises RFID as a key enabler for improving processes

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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

Page 12: Airbus Global Overview - rfidjournal.net Executive Overview ... (A380, A400M, A350, A320 NEO) ... Summary Airbus recognises RFID as a key enabler for improving processes

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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

Page 13: Airbus Global Overview - rfidjournal.net Executive Overview ... (A380, A400M, A350, A320 NEO) ... Summary Airbus recognises RFID as a key enabler for improving processes

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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

Page 14: Airbus Global Overview - rfidjournal.net Executive Overview ... (A380, A400M, A350, A320 NEO) ... Summary Airbus recognises RFID as a key enabler for improving processes

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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

Page 15: Airbus Global Overview - rfidjournal.net Executive Overview ... (A380, A400M, A350, A320 NEO) ... Summary Airbus recognises RFID as a key enabler for improving processes

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Carlo K Nizam Page 15

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

Page 17: Airbus Global Overview - rfidjournal.net Executive Overview ... (A380, A400M, A350, A320 NEO) ... Summary Airbus recognises RFID as a key enabler for improving processes

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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

Page 18: Airbus Global Overview - rfidjournal.net Executive Overview ... (A380, A400M, A350, A320 NEO) ... Summary Airbus recognises RFID as a key enabler for improving processes

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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

Page 19: Airbus Global Overview - rfidjournal.net Executive Overview ... (A380, A400M, A350, A320 NEO) ... Summary Airbus recognises RFID as a key enabler for improving processes

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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

Page 20: Airbus Global Overview - rfidjournal.net Executive Overview ... (A380, A400M, A350, A320 NEO) ... Summary Airbus recognises RFID as a key enabler for improving processes

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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

Page 22: Airbus Global Overview - rfidjournal.net Executive Overview ... (A380, A400M, A350, A320 NEO) ... Summary Airbus recognises RFID as a key enabler for improving processes

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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.

AIRBUS, its logo, A300, A310, A318, A319, A320, A321,

A330, A340, A350, A380, A400M are registered trademarks.