Airbus improves productivity with RFID

Introduction

In order to face competition with Boeing, Airbus is implementing a new technology called the RFID system. This assignment will try to answer some questions related to the implementation of a new processing system within the organization. It is fundamental to understand how a new information technology can change the efficiency of the organization, and how that will affect people and business. It will also be useful to understand the issues and the steps the management level will have to face in order to achieve corporate goals and create an efficient strategy.

1. What are the drivers of the RFID project?

By using Radio Frequency Identification (RFID), Airbus wants to improve its productivity and face competition with the ever-increasing Boeing Company.
RFID is a wireless system whose purpose is to automatically identify and track tags attached to objects. This technology, used in manufacturing and in airplane maintenance, is a great opportunity for Airbus to reduce its production costs (by making its production process more efficient). RFID will replace some bar codes and offers 3 main advantages: a quick tracking of where items are in real time, finding extensive information about items and enabling quick inventory taking of items. However, Airbus is still using bar codes seeing tag prices remains high (1$).
Here is an example of how RFID can be used by Airbus: crewmember walking down the aisle with an RFID reader, taking inventory and uncovering soon-to-expire equipment in minutes instead of hours, which would have been spent removing vests stored under seats, and reading dates. The supply chain and logistic process will be improved by reducing time spent searching for parts, reducing inventory and improving the productivity.
Furthermore, according to Carlo Nizam of Airbus, RFID improves the