19th October 2011
Presented by Carlo K Nizam (Airbus) Head of Value Chain Visibility and Auto-ID
Airbus Executive Overview Value Chain Visibility & Auto-ID
Carlo K Nizam
MACRO CHALLENGES • 18 design/manufacturing/assembly sites across the world • Exchange rate pressures • New aircraft programmes (A380, A400M, A350, A320 NEO) • Production rate increases
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• Power 8+ programme, EBIT pressures • Clear focus on enterprise eco-efficiency Constant pressure for continuous improvement and innovation Carlo K Nizam
Page 2
Why Increase Visibility? Why RFID? RFID, Bar Codes etc.
Quick wins through data automation
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Long term wins through continuous improvement
Accurate and efficient information
Ï Visibility
Information about working, not working
Ï Measurability
Where is it working, not working?
Ï Business Process
Improve the way of working
Ï Business Savings
EBIT, Cash, Cost Avoidance
Improving visibility is a pre-requisite to improve the “way of working” and deliver business savings Carlo K Nizam
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Visibility, Measurability and Savings They are all connected
Improved Accuracy Control Efficiency of Processes
Automated visibility with high level of measurability (e.g. RFID )
Improved Business Savings
Semi-automated visibility with increased measurability (e.g. bar code) Manual based visibility with low measurability (e.g. manual data entry)
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
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 Æ savings The level of visibility and measurability determines the level of savings possible; RFID is an promising enabler to increase this level of savings Carlo K Nizam
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RFID + PROCESS MONITORING Enables Process Improvement RFID
Set Set Alert Alert parameters parameters for for process process steps steps
Process Monitoring
+
Monitor Monitor performanc performanc ee against against targets targets
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
KPI KPI trend trend and and prediction prediction
Automation
Real time reporting
↑ Productivity
↑ Process Optimisation
↑ Quality
↓
↓ Cycle time
↓ Automated Alerts
Identify Variations
RESULT = Leaner and more competitive business processes Carlo K Nizam
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BENEFITS
Increasing Visibility Through RFID Strategic Benefits Supply Chain
Logistics/Distribution
•Real time visibility and automatic update of events value chain Real time delivery confirmation • Automated dataacross entry andthe tracking •Unprecented high leveltracking of information accuracy Global automated transport • Faster processes, less inventory •Move to a digital “fly by wire” supply chain Improved demand stability • More accurate inventory, Èstockchecks • Increased visibility of inventory
Process Benefits
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
• Improved inventory management
More efficient automated processes Æ shorter cycle times Æ less inventory Reduce Reduce operating operating Reduce Reduce production production Increased accuracy & control of business operations Æ of less non conformities cost aircraft cost of aircraft cost cost of of aircraft aircraft Increased traceability of part life cycle Æ less paper, less time Æ lower costs Assembly More automation Æ Less manual intervention ÆAirlines/MROs/Suppliers Improved labour productivity
• Automated data entry
• Simplification of as flying configuration
• More accurate & efficient configuration
• More efficient/effective lifecyle mgmt
Business Benefits
More accurate & efficient attestation •Reduction in Inventory & Capital Assets• Faster repair turnaround process Faster cycle times • Automated ULD/baggage/catering tracking •Increased Labour Productivity and better avoidance of Costs
RESULT = Leaner and more competitive business processes Carlo K Nizam
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CROSSROADS & DECISION TIME The 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
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
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! Carlo K Nizam
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What is Value Chain Visibility and Auto-ID?
Logistics & Distribution
Airbus Suppliers Transport Logistics
Assembly Lines
Customer in Service
Take Off
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
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 potential application of Auto-ID across its business processes Carlo K Nizam
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The VCV Programme
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
The Business Radar Concept
RFID
+
=
+
=
RFID = Airbus Business Radar
Accurate Streamlined Efficient operations
Accurate Streamlined Efficient operations
The VCV Programme Total Lifecycle Visibility
Value Chain Visibility and Auto-ID Programme Non-Flyable Release 1
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Logistic
Flyable Release 2
Distribution Manufacture
Release 3
Assembly Inservice lifecycle
Cargo
Supply Chain Tracking
Global Transportation
Cabin Configuration
(3PL Centre, Toulouse)
(Beluga, Hamburg Station)
(Airline 1)
Warehouse Logistics
Work In Progress
Repair Shop Processes
(3PL Centre, Toulouse)
(A380 Hamburg, St Nazaire, Broughton)
(Airline 2)
Inventory Management (A380 FAL, Toulouse)
Tooling Management
Spares Logistics/ FHS
(A400M, Filton + SA Flowline, Broughton)
(Airline 3)
Distribution Tracking
Config Mgmt + Attestation
Payload Tracking
(LR FAL, Toulouse)
(Airline 4)
(A380 FAL, Hamburg)
The portfolio of RFID process “lighthouses” already deployed A350 XWB the : 3000 parts are being delivered in with Each of these boxes is an RFID The area in brackets is where RFID that will enable these processes multiple business areas can was benefit all industry sectors Process Lighthouse first lighthouse deployed
DIFFERENT TYPES OF RFID Total Lifecycle Traceability
Value Chain Visibility and Auto-ID Programme Non-Flyable
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Release 1
Flyable Release 2
Logistic
Distribution Manufacture
RFID shipping labels
RFID Containers
RFID RFID on on jigs tools
Release 3
Assembly
Lifecycle of parts
RFID on parts
Cargo RFID on assets
There is no one size fits all solution Different RFID enablers are used for different processes Carlo K Nizam
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DIFFERENT TYPES OF RFID
Integrated into a standard corporate s/w platform Value Chain Visibility and Auto-ID Programme Non-Flyable Release 1 Logistic
Flyable Release 2
Distribution Manufacture
Release 3
Assembly
Lifecycle of parts
Cargo
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Business Business & & Infrastructure Infrastructure Monitoring Monitoring and and Reporting Reporting Business Business Process Process Mapping Mapping & & Legacy Legacy System System Integration Integration Device Device Interfacing Interfacing & & Data Data Event Event Processing Processing
RFID shipping labels Carlo K Nizam
RFID Containers
RFID RFID on on jigs tools
RFID on parts
RFID on assets
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RELEASE 1 (NON FLYABLE)
A380 Final Assembly Line (FAL), Hamburg
Lift Furnishing Hangar Upper Deck Main Deck Lower Deck
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Floor Deck
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
Carlo K Nizam
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RELEASE 1 (NON FLYABLE)
A380 Final Assembly Line (FAL), Hamburg Scope 750 Material Delivery Units (MDUs) containers per A380 RFID Reader Automated life cycle tracking of MDUs from 3PL to FAL Motion Sensors
Error Light
BENEFITS and STATUS TODAY Streamline processes; right place, right time, first time © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Reduce containers by 8% compared to manual process RFID Tag
Antennae Pilot Phase Over – Now RFID in Production, 4500 containers
100+ RFID Reader Installations EXPANSION : A320 Final Assembly Line Carlo K Nizam
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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
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
STATUS Pilots – Completed Industrialisation – Completed EXPANSION : 65,000 Tools UK and Germany
Carlo K Nizam
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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 Real-time localisation
STATUS
Localising a Business Item P47 / P59
P50B P50A
Pilots – Completed
3120
P40B
CORDON MÉTALLIQUE*
POSITION
EQT NB
DESIGNATION
P30Y_L79_SOU
3121
Cordon métallique couteau long
P40B_G30_SOL
3120
Cordon métallique couteau court
Industrialisation – EIS April 2012 M55
P40A
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
P30Y
M50
3121
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
P30X
+ LAST SAP UPDATE 20/01/2011 17h15
Sort by
Carlo K Nizam
Business Item
Item shadowed
Maintenance status
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RELEASE 2 (NON FLYABLE) Configuration Management BENEFITS Seats
Automated and Digital Attestation Process Faster Cycle TimeSeats and Reduced Paperwork Life Improved ConfigurationVests Management
Life Vests
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
STATUS
Pilot - Completed Business and Economy Industrialisation – Completed
Locations Tagging
Class Seats and Life Vests Tagging
EXPANSION : A320 and A380 Final Assembly Lines Carlo K Nizam
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RELEASE 2 (NON FLYABLE) Visibility of Industrial Processes (VIP) BENEFITS Automatic and real-time visibility of industrial processes Automatic monitoring of processes and variations Key enabler for Lean Improvements Green dots are the tools moving in 3D and in real-time with accuracy of 15cm
Wing Assembly Centre
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
STATUS Pilot - Completed Project - Completed EXPANSION : All A380 Assembly Sites Carlo K Nizam
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RELEASE 2 (NON FLYABLE)
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Visibility of Industrial Processes (VIP)
EXPANSION : All A380 Assembly Sites Carlo K Nizam
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RELEASE 3 (FLYABLE) Current Status
Use Case Studies 4 opportunity studies completed with airline customers and MRO partners All payback within 12 months, strong savings (up to multi-million €/year)
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
A350 XWB RFID Part Marking Specifications Distributed to Airbus suppliers in 2008, based on approved standards Suppliers deploying RFID solutions for part marking Aerospace RFID Standards Finalised ATA Spec 2000 for data structure and high memory management SAE 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 Carlo K Nizam
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NEXT STEPS
EADS and Beyond…
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EADS Parent Group Expansion across multiple business units within EADS Group Projects re-using Airbus processes, solutions, contracts and vendors Re-use of standards : Faster, cheaper and better Airlines, MROs and External Organisations Airbus : catalogue of benchmark RFID processes across aircraft lifecycle Not limited to Airbus; generic and applicable to all players in the industry Approached by number of companies to develop and deploy projects Two projects already completed, three more in progress
Airbus catalogue of standard processes and solutions is providing value to multiple actors across the value chain Carlo K Nizam
Page 21
EXAMPLES of EADS BU Projects
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Process
Airbus
Eurocopter
Astrium
Cass
Warehouse Logistics
X
X
X
X
Asset Tracking
X
X
X
Transport Tracking
X
Tooling Management
X
X
WIP Tracking
X
X
Industrial Vehicle Management
X
Foreign Object Damage (FoD)
X
X
Configuration Management
X
X
Maintenance and Repair
X
External Services
X
X X
X X
X
All projects re-use Airbus processes/solutions/contracts/vendors Carlo K Nizam
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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 S.A.S. All rights reserved. Confidential and proprietary document.
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
Carlo K Nizam
Page 23
© 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 S.A.S. All rights reserved. Confidential and proprietary document.
AIRBUS, its logo, A300, A310, A318, A319, A320, A321, A330, A340, A350, A380, A400M are registered trademarks.
Carlo K Nizam
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