Advanced Logistics Systems Using RFID Jon Bonnell April 14 th, 2011
Agenda 1. Company Overview 2. Business Challenges 3. Solution Overview 4. Deployment Methodology 5. Business Case Summary 6. Lessons Learned
Company Overview Vector Aerospace - Engine Services Atlantic is a leading global provider of MRO services for gas turbine engines for business and general aviation, regional airline and military fixedwing aircraft Recognized for industry leading turn-around-times (TAT) and customer service MRO ranging from routine maintenance to complete complex overhauls including parts refurbishment Parts management and distribution
Project Purpose Track and manage the movement of engine repair parts as they travel throughout the facility for Maintenance, Repair, and Overhaul
Business Challenges 1. Confirming part locations 2. Auditing part history 3. Opportunity to improve on-time delivery to customer 4. Greaseboard planning and build date scheduling
Why RFID? Automated data collection (reducing manual data entry) Technology that would not interfere with facility, facility equipment, and customer parts Scalable: Immediate closed loop benefits but scalable to enable customer and partner solutions Cost effective, identifiable ROI Instant reporting: Part locations, dwell time, WIP data, scheduling, exception handling
Solution Overview 1. After speaking with several solution providers, engaged with IDBLUE out of St. John s, NL 2. Solution comprised of both UHF and HF technology, along with both mobile and fixed readers 3. Provides end-to-end engine part visibility
Mandatory Considerations 1. Goal was to improve operations while minimizing impact on as-is processes 2. Account for complex regulatory compliance measures felt in the aerospace industry 3. Account for facility health and safety measures
RFID Hardware Locations
Hardware Details No RFID Equipment - Description 1 Printer Zebra R110Xi 2 Fixed Readers Alien ALR-9800, Alien ALR-9611, Bluebean mounting portals 3 Desktop antennas Alien 9650 4 5 Long-Range Mobile Readers Motorola MC 9090 Near-Field Mobile Readers IDBLUE R8.HF Location & Purpose Location: Next to the inspection area Purpose: Creation of work order, routers, and tags Location: Through out the facility Purpose: Capture movement of parts at various work stations Location: Various workstations Purpose: Capture movement and dwell time of parts Location: Assembly where engine is built Purpose: Status update and tag decommission Location: Shop area Purpose: Confirmation of tool for repair work
Solution Architecture
Repair Parts Process Process: 1. Tag applied to work order at Inspection (based on activity performed business as usual ) 2. Part is read instantaneously as it moves through out the facility 1 2
Integrated RFID Selection of correct tools to perform repair work Benefits Tool selection and verification Tool utilization Risk reduction Program management
Solution Overview Embed in metal HF tags Mobile Reader IDBLUE R8.HF Research and Development Read Rate Balancing testing
Repair Parts Process 4 3 1 2
Deployment Methodology Implement Implement Full Adoption Pilot Testing Pilot Plan Plan Plan Proof of Concept Expansion Integration Technology Focus RFID Enablement Mandate Compliance Physical/mechanical challenges Subset of Assets Process Focus Data Analysis Identify Process Change Opportunities Asset roll-out ROI Confirmation Integration Focus Information Sharing End-to-end RFID Rich data Full facility roll-out
Solution Capabilities 1. Parts Traceability Parts History
Solution Capabilities Exact Part Location Part Dwell Times
Solution Capabilities 2. Real Time Messaging and Alerting
Business Case Summary Planning/Scheduling On-time Delivery Machine Utilization Production Planning Priority Part Movement Traceability Part History Manual Process Dependency Operational Efficiencies Parts Location WO Location Cart Location Part Accuracy Kitting Report Parts Alerts Process Visibility
Business Case Overview 1. Improve on-time delivery by 4% Increased part movement visibility and alerting Reduce part dwell, improved planning and forecasting 2. Labour Savings 32% savings specific to Planning and Scheduling 31% savings specific to verifying Parts Location 3. 27% Overall Operational Efficiency gains
Business Case Overview 4. 76% decrease in requirement for manual data entry 5. Total solution break-even between 18 22 months 6. Definitive soft benefits including improved: Customer satisfaction Employee satisfaction Maintain position as innovation leader
Cumulative Net Benefits ROI Realized
Lessons Learned 1. Focus on a specific application and see it through to ROI achievements 2. Prove the business case, not the technology 3. Buy-in from operations is key, but don t start the RFID-parade too early
Lessons Learned 4. Data integration is key; however don t dismiss a standalone system 5. It s more than just the value of the asset, it s the value of the entire business process 6. Acquire a solution versus readers, tags, portals, software, etc.
Contact Information If you have any questions, please contact: Vector Aerospace IDBLUE Jon Bonnell Process Development Engineer 902.888.4719 jonathon.bonnell@vectoraerospace.com www.vectoraerospace.com Jeff Brown Vice-President Services 709.699.9021 jeff.brown@idblue.com www.idblue.com