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21 st February 2012 PAC Presented by Paul-Antoine Calandreau (Airbus) Value Chain Visibility and Auto-ID Flyable RFID project manager Airbus Executive Overview Value Chain Visibility & Auto-ID
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Value Chain Visibility and Auto-ID Flyable RFID project … Supply Ch… · MACRO CHALLENGES • 18 design/manufacturing/assembly sites across the world • Exchange rate pressures

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Page 1: Value Chain Visibility and Auto-ID Flyable RFID project … Supply Ch… · MACRO CHALLENGES • 18 design/manufacturing/assembly sites across the world • Exchange rate pressures

21st February 2012

PAC

Presented by

Paul-Antoine Calandreau (Airbus)Value Chain Visibility and Auto-IDFlyable RFID project manager

Airbus Executive Overview

Value Chain Visibility & Auto-ID

Page 2: Value Chain Visibility and Auto-ID Flyable RFID project … Supply Ch… · MACRO CHALLENGES • 18 design/manufacturing/assembly sites across the world • Exchange rate pressures

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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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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 workingBusiness Process

RFID, Bar Codes etc. Accurate and efficient information

Quick winsthrough data automation

Long term winsthrough

continuous improvement

Improving visibility is a pre-requisite to improve the “way of working” and deliver business savings

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Visibility, Measurability and SavingsThey 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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RFID + PROCESS MONITORINGEnables 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 ProgrammeThe Business Radar Concept

+ = AccurateStreamlined

Efficient operations

RFID + = AccurateStreamlined

Efficient operations

RFID = Airbus Business Radar

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CROSSROADS & DECISION TIMEThe situation pre-corporate programme

Collection of 15 independent projects

Fragmented approach; multiple standards, solutions and vendor landscape

Creation of multi-function Auto-ID Steering Committee

Company strategy, consolidation and prioritisation of activities

Agreement to develop a harmonised approach and solutions for deployment

Analysis of benefits, pilot proof points, bottom up business cases, industrialisation

Selection of standard solutions and services for Airbus/EADS

Clear pull from internal/external customers ONE Airbus approach : it works!

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Company approach to improve business processes through better visibilityScope is focused on big picture; Airbus value chain not functional silosRFID is seen as a key enabler to improve visibility & business processes

Airbus is taking an integrated and value chain approach for the potential application of Auto-ID across its business processes

Logistics & Distribution Assembly LinesAirbus Suppliers Customer in Service

Transport Logistics Take Off

What is Value Chain Visibility and Auto-ID?

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The VCV ProgrammeTotal Lifecycle Visibility

Value Chain Visibility and Auto-ID Programme

Non-Flyable Flyable

Release 3Release 2Release 1

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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DIFFERENT TYPES OF RFIDTotal Lifecycle Traceability

Value Chain Visibility and Auto-ID Programme

Non-Flyable Flyable

Release 3Release 2Release 1

Logistic Distribution Manufacture Assembly Lifecycle of parts Cargo

RFIDshipping

labels

RFID Containers

RFIDonjigs

RFID on partsRFID

ontools

RFID onassets

There is no one size fits all solution

Different RFID enablers are used for different processes

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DIFFERENT TYPES OF RFIDIntegrated into a standard corporate s/w platform

Value Chain Visibility and Auto-ID Programme

Non-Flyable Flyable

Release 3Release 2Release 1

Logistic Distribution Manufacture Assembly Lifecycle of parts Cargo

RFIDshipping

labels

RFID Containers

RFIDonjigs

RFID on partsRFID

ontools

RFID onassets

Device Interfacing & Data Event Processing

Business & Infrastructure Monitoring and Reporting

Business Process Mapping & Legacy System Integration

Page 12: Value Chain Visibility and Auto-ID Flyable RFID project … Supply Ch… · MACRO CHALLENGES • 18 design/manufacturing/assembly sites across the world • Exchange rate pressures

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RELEASE 1 (NON FLYABLE) A380 Final Assembly Line (FAL), Hamburg

Main Deck

Upper Deck

Lower Deck

Floor Deck

LiftFurnishing Hangar

RFID Reader (Identification points)

Each Dock has 11 Read Points (5 on the Left, Right and 1 centre). There are 6 docks in total on the A380 Final Assembly Line

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RELEASE 1 (NON FLYABLE)A380 Final Assembly Line (FAL), Hamburg

RFID Tag RFID Antennae

Motion SensorsRFID Reader

Error Light

Scope

750 Material Delivery Units (MDUs) containers per A380

Automated life cycle tracking of MDUs from 3PL to FAL

BENEFITS and STATUS TODAY

Streamline processes; right place, right time, first time

Reduce containers by 8% compared to manual process

Pilot Phase Over – Now in Production, 4500 containers

100+ RFID Reader InstallationsEXPANSION : A320 Final Assembly Line

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Carlo K Nizam Page 14

RELEASE 2 (NON FLYABLE)Tooling Management

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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RELEASE 2 (NON FLYABLE)Tooling Management

BENEFITS

Automated tools booking in/out

No tools search time, less work stoppage

Automated logistics tracking

STATUS

Pilots – Completed

Industrialisation – EIS April 2012 (175+ sensors)

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RELEASE 2 (NON FLYABLE)Configuration Management

Business and Economy Class Seats and Life Vests

Tagging

Seats

LifeVests

Seats

Locations Tagging

LifeVests

BENEFITS

Automated and Digital Attestation Process

Faster Cycle Time and Reduced Paperwork

Improved Configuration Management

STATUS

Pilot - Completed

Industrialisation – Completed

EXPANSION : A320 and A380 Final Assembly Lines

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RELEASE 2 (NON FLYABLE)Visibility of Industrial Processes (VIP)

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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RELEASE 2 (NON FLYABLE)Visibility of Industrial Processes (VIP)

EXPANSION : All A380 Assembly Sites

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RELEASE 3 (FLYABLE)Current Status

Use Case Studies4 opportunity studies completed with airline customers and MRO partners All payback within 12 months, strong savings (up to multi-million €/year)

A350 XWB RFID Part Marking Specifications Distributed to Airbus suppliers in 2008, based on approved standardsSuppliers deploying RFID solutions for part marking

Aerospace RFID Standards FinalisedATA Spec 2000 for data structure and high memory managementSAE AS5678 for performance minima, test conditions and robustness

The introduction of RFID part marking on A350 XWB will help enable customers reduce their maintenance costs

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A350 XWB – RFID scope

Primary target is the parts answering all the following criteria:

Serialized partsLine replaceable partsRepairable or with a life limitMean Time Between Unscheduled Removal below 60 000 flight hours

A350 XWB – SuppliersSuppliers on board RFID projectRFID tags specifications in suppliers contract

More than 3000 parts targeted(~600 Part Numbers)

PAC

A350 XWB: first aircraft using RFID technology

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A350 XWB – RFID technology

Technology chosen:Ultra High Frequency (UHF) RFID tagPassive tags (no power supply)Low and high memory tagsSpecial packaging for aircraft environment:

Temperature, pressure, vibration,shock, humidity, flammability,...

Airbus selected supplier for high memory tags

PAC

Technology adapted to aircraft needs & constraints

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A350 XWB – RFID technology

High-memory tags for repairable equipments:At least 12 years of maintenance recordsReading range: 0.5 to 1m

Low-memory tags for non-repairable parts with a limit of validity:No part history (expiration date)Reading range: 5 to 10 m

PAC

The right technology for the right part

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NEXT STEPSEADS and Beyond…

EADS Parent GroupExpansion across multiple business units within EADS Group Projects re-using Airbus processes, solutions, contracts and vendorsRe-use of standards : Faster, cheaper and better

Airlines, MROs and External Organisations Airbus : catalogue of benchmark RFID processes across aircraft lifecycleNot limited to Airbus; generic and applicable to all players in the industryApproached by number of companies to develop and deploy projectsTwo projects already completed, three more in progress

Airbus catalogue of standard processes and solutions is providing value to multiple actors across the value chain

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Airbus maintenance operations with RFID for A350(e.g. FHS-TSP)

A350 solutions & services(e.g. configuration tracking)

VCV foundation for services to airlines

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Non-Flyable projects

Consulting servicesSpecific airlines process solutions pre-A350

(e.g. repair cycle tracking)

General logistics(e.g. in/out or internal)

Tooling Loose equipment(e.g. life-vest)

VCVNon-Flyable

scope

Re-usepre-A350

Customizedservices

Growingaddedvalue

Airbus to leverage experience and volume (non-flyable) to propose packaged & scalable solutions & services to Airlines and MROs

PAC

Transportation(e.g. Container tracking)

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Standardisation situationProduct breakdown structure view

PAC Page 25

Tags hardware Tags data Readers

hardware Software Interoperability

Tags on parts

SAE AS5678(published)

ATA Spec 2000

(published)COTS Competitive

Airbus lab(on-going for June 2012)

Tags on parts boxes ? ? COTS Competitive ?

Tags on ULDs

IATA(on-going)

IATA(on-going)

COTS(tbc)

Competitive(tbc) ?

Tags on tools

?(internal ?)

?(internal ?)

COTS(tbc)

Competitive(tbc) ?

Tags for internal logistics

Internal ? Internal ? COTS(tbc)

Competitive(tbc) ?

Is this view shared by the group ?What is the priority ?

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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 DIGITALand FLY BY WIRE view of the supply chain and its business operations

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PAC Page 27

© AIRBUS S.A.S. All rights reserved. Confidential andproprietary document.

This document and all information contained herein is the soleproperty of AIRBUS S.A.S.. No intellectual property rights aregranted by the delivery of this document or the disclosure ofits content. This document shall not be reproduced ordisclosed to a third party without the express written consentof AIRBUS S.A.S. This document and its content shall not beused for any purpose other than that for which it is supplied.

The statements made herein do not constitute an offer. Theyare based on the mentioned assumptions and are expressedin good faith. Where the supporting grounds for thesestatements are not shown, AIRBUS S.A.S. will be pleased toexplain the basis thereof.

AIRBUS, its logo, A300, A310, A318, A319, A320, A321,A330, A340, A350, A380, A400M are registered trademarks.