Higher Performance Through RFID in Aerospace and Defense
A New Opportunity in Aerospace and Defense
The recently released United States Department of Defense (DoD) policy on RFID, coupled with similar mandates from retail giants such as Wal-Mart, Target and Best Buy, has awakened the aerospace and defense (A&D) industry to the fact that virtually every enterprise within the A&D industry supply chain will either need or want to adopt RFID as an integral part of their business model.
The evolving electronic product code (EPC), unique identification (UID) and RFID standards, and the forthcoming commercial and DOD mandates have accelerated the proliferation of this new technology throughout the A&D industry sector perhaps faster than any previous technology of its kind. There are many opportunities for A&D companies to make incremental strategic investments in RFID beyond compliance that may provide near-term benefits and help prepare for the future.
A Call to Action: Exploiting the Burning Platform of Compliance
Looking back at recent history, aerospace and defense companies have been compelled to invest in new technologies and business capabilities when confronted with a burning platform. Some prominent examples include:
- New emerging technology (Internet 1990s);
- Mandates from the customer (10-key elements 1980s); and
- Risk avoidance (Y2K).
In each of these cases, companies took advantage of otherwise costly initiatives to make strategic investments that radically improved their financial and operational effectiveness. Many of these investments, such as enterprise resource planning systems replacement, were already planned but were accelerated to meet a new and more aggressive deadline (10-key elements and Y2K). Others, like e-commerce, were new investments that companies sought to exploit to provide better service to their customers and, at the same time, reduce cost.
RFID has become the latest potential game-changing technology. Recognizing the potential and future capability of this technology, the DoD has now issued its first policy of RFID compliance to defense contractors the first part of which it required to be in place by January 2005.
United States Department of Defense RFID Mandate
The use of RFID in the DoD supply chain has the potential to provide real benefits in inventory management and asset visibility and interoperability in an end-to-end integrated environment. RFID encapsulates the data accuracy advantages inherent in all types of automatic identification technology. Additionally, RFID is a totally nonintrusive methodology for data capture (requires no human intervention); a non-line-of-sight technology; and a technology that may possess both read and write options within the same equipment item.
On July 30, 2004, the Acting Undersecretary of Defense for Acquisition, Technology and Logistics signed a memorandum outlining policy for the use of RFID within the DoD. The strategy calls for taking maximum advantage of the inherent life cycle asset management efficiencies that can be realized with the integration of RFID throughout the DoD.
The new policy addresses two general types of RFID tags: active, which contains an internal power source enabling the tags to hold more data and has a longer read range; and passive, which does not contain any power source, holds a minimum amount of data and has a shorter read range.
- The policy directs the adoption of specific business rules for the active, high-data capacity RFID currently used in the DoD operational environment to ensure continued support for ongoing combatant commander in-transit visibility requirements and operations.
- The policy states that the DoD will be an early adopter of innovative, passive RFID technology that leverages the EPC and compatible RFID tags. The policy requires suppliers to put passive RFID tags on the lowest possible piece part/case/pallet packaging by January 2005.
The DoD supply base is currently moving forward to comply with the current policy of passive tagging at levels 1-3. It is anticipated that future DoD policy updates may include requirements at the item level (0), which will drive additional value and opportunities throughout the supply chain.
Beyond Bar Code Replacement
RFID has often been characterized as a replacement technology for bar coding. While this certainly may be achievable, RFID offers some distinct advantages and differences from bar code technology, in that the products themselves are able to communicate with their environment without direct human intervention. This enables frequent and efficient association and movement of materials, containers and transport vehicles in a manner that provides real-time visibility and control.
Labor Efficiencies
Proximity reading of multiple RFID tags without human interaction enables large-volume throughput of goods either individually or aggregated in cases, pallets or truckloads, even as they are in motion.
Data/Process Quality
Replacing human interaction reduces errors such as misreads and wrong labels scanned. The unique product identification within the tag improves traceability and integrity by differentiating each instance of a product. Since products are now able to directly interact with their physical locations, they can facilitate their routing through manufacturing processes, warehouses and transportation vehicles, across multiple enterprises to the point of consumption. Data quality is radically improved across the entire supply chain.
Real-Time Event Management
RFID provides the ability to capture and process high volumes of product-related events to facilitate real-time, tactical decision making. Every time a product is moved, received, issued or loaded on a truck or aggregated with other products in a vehicle or container, it constitutes a business event that can be captured and processed. Managing high volumes of real-time events enables new and highly responsive business processes. The latency problems associated with bar codes such as products arriving at a location but not being scanned immediately are virtually eliminated.
Knowledge Acquisition by Listening to the Product
RFID improves the capability to capture relationships between products and also with their environments based on their physical proximity. An RFID-tagged product that contains RFID-tagged components can identify and maintain its own configuration record. Processing larger amounts of RFID-acquired data from multiple sources can help characterize the behavior of various links in the supply chain; identify trends and needs; and create a knowledge base that identifies process inefficiencies, avoids potential problems and improves product forecasting.
Barriers to RFID Investment
Even though the DoD has issued a policy and direction regarding RFID and there are analogous mandates from non-DoD commercial retailers and manufacturers, there is a reluctance to make further non-mandated RFID investments. Many A&D companies are hesitant to make further non-mandated RFID investments due to:
- Short-term focus on required efforts to meet short-term compliance deadlines;
- Lack of an understanding of the technology itself, its capabilities and the size and nature of the required investment;
- Lack of a clear business case for potential RFID applications;
- Fear that RFID standards and technology might advance at a rate that could make a substantial near-term investment obsolete;
- Fear that the detail specifications supporting the DoD mandate are still evolving and that change may be forthcoming;
- Recognition of many current issues with the technology itself;
- Recognition that most of the real value of RFID is at item-level tagging where technical and cost issues escalate, such as difficult-totag parts and required DoD drawing changes; and
- Belief that many of the potential RFID applications could be implemented in some form with alternate technologies that would carry less technical risk in the short term.
Making the Value Investment
Identifying and realizing the benefits from RFID requires a process of objective assessment, strategy development and realistic incremental investments that provide early returns while building the infrastructure and core capabilities required for the more strategic, game-changing applications.
Leveraging the Short-Term Compliance Initiatives
While many companies are focused on short-term compliance initiatives, many of these projects can be expanded incrementally to begin to build more comprehensive RFID-enabled solutions in high-value opportunity areas of the business. Realizing short-term benefits from these solutions can offset the cost of compliance and provide a learning and experience base for future RFID initiatives.
RFID Technology Evolution
RFID technology will continue to evolve toward lower-cost components and increased capability, reliability and performance. This is particularly true of RFID tags that represent the largest recurring cost of RFID solutions. Standards for RFID, EPC and UID will continue to mature and gain global acceptance. Taking this into account will make RFID business cases more economically attractive.
Pathway to Value From RFID Solutions
There are several actions that A&D companies can and should undertake in the short term to address the challenges and opportunities of RFID:
Learn the basics Acquire knowledge and learning related to RFID technology, standards, mandates and trends. Understand who the major players are in hardware, software and services, and what they have to offer. Educate a broad share of the enterprise organization. Identify potential stakeholders and champions.
Identify the opportunities Conduct workshops to identify potential RFID applications. Involve potential stakeholders from all areas of the business. Work with key suppliers, partners, customers and knowledge experts to understand and define potential RFID solutions that are synergistic and where value and benefits can be shared.
Develop a business case Identify the top one or two RFID applications and develop a comprehensive business case that clearly outlines the scope and size of the investment and defines the measurable benefits.
Pilot the technology application Develop an initial RFID application to demonstrate the technology capabilities in a real business environment and prove the business case. Select hardware, software and integration service providers. Involve suppliers and customers as applicable in a co-investment arrangement.
Plan the go-forward strategy Develop the longer-term plan for building out the pilot applications and launching additional RFID initiatives.
Coordinate activities Maintain high levels of involvement and coordinated participation across IT and business organizations within the enterprise and with key customers, suppliers and partners.
Potential Applications of RFID in A&D
In addition to the many RFID applications that are already being implemented and pursued in the commercial marketplace, there are other areas of opportunity that have unique characteristics and value potential for the A&D industry.
Aftermarket Maintenance, Repair and Overhaul Processes
Durable goods such as aircrafts, engine, systems and major components have lengthy product service life cycles that can benefit from RFID technology. Tracking and traceability through the maintenance, repair and overhaul (MRO) processes enable new efficiencies in these operations as well as increased visibility at the logistics level.
Warranty Tracking
Verification of warranty can be performed either on or prior to induction into the MRO process though RFID-enabled product traceability. For larger products, such as systems that are capable of maintaining RFID records, component-part warranties from suppliers can also be assessed at the same time, facilitating increased recovery of repair costs.
Configuration Maintenance
As products are maintained in the field and in contractor and thirdparty MRO facilities, RFID tags can be used to query configuration levels, and assess applicability and compliance with various change documents, such as service bulletins and air-worthiness directives. When RFID is applied at the depot and warehouse level, entire inventories can be electronically assessed without human intervention.
Spares Inventory and Forecasting
RFID can trigger real-time recognition of events, such as receipts, issues and movement enabling rapid replenishment, accurate usage history and improved forecasting and logistics.
MRO Induction
With the ability to store large amounts of data on active RFID tags, products themselves can send critical configuration and condition information to repair and overhaul facilities. This can reduce unforeseen parts demands prior to induction. The labor-intensive induction and inspection process can be streamlined with improved datacapture quality from tagged parts and components.
Parts Tracking and History
RFID may be used to track rotables and life-limited and time-limited parts by helping to maintain accurate records of service use, repair and refurbishment.
Reusable Containers and Fixtures
RFID tags can be applied to reusable containers and transportation fixtures to track location and movement. RFID tagging of both the product and its container/fixture can associate the product with the container/fixture that it is shipped or stored with. Scanning containers can automatically determine which contain product or are empty.
Configuration Management
RFID can provide improved tracking and traceability of product configuration as it is being assembled. By extending RFID standards and practices across the supply chain, tagged component parts and subassemblies from supplier and subcontractors can identify configuration and revision level at receipt and be tracked to the point of consumption on intermediate or end-item products.
Serial/Lot Tracking
Serial/lot tracking records can be automatically created as component parts are tagged during their fabrication, or received from suppliers with RFID tags applied. As products are assembled, their serialized and lot-traceable component records are similarly related, providing an accurate and reliable configuration record audit trail.
Composites Manufacturing Example
One example of an RFID configuration lot and serial tracking application is in composites manufacturing, where lot/batch traceability of raw composite materials is required, from receipt and storage through cutting, lay-up, autoclave cure and finishing operations. Uncured composite materials such as pre-preg fabric need to be frozen. RFID tagging rolls, ply kits and lay-up tools can aid in verifying the out-time of each individual ply within the finished product.
Engineering Change Management
Where the effectivity of a released change affects product in inventory or within the manufacturing and assembly process, there is a resulting labor-intensive effort to locate affected product, recycle and rework the product to incorporate the change and return it to inventory or the manufacturing process. Often this includes re-identifying the part or assembly. RFID can be used to scan inventories and work centers to locate and assess affected products and trigger the appropriate change incorporation processes. This same assessment can be performed just as easily prior to the release of the change, providing an accurate cost-of-change impact assessment. RFID readers can be used to stop parts at various physical points where their revisions are out of date, improving product integrity and control.
Kit Configuration
Another excellent application of RFID is in the tracking and management of kits, where kit contents can be scanned all together within their containers for correct parts numbers, quantities and revisions. This capability applies both to production and aftermarket processes.
Government/Customer Property Management
RFID can help reduce the cost of compliance in managing government property by providing less labor-intensive tracking of government- owned assets. Through the linking of data across the supply chain, assets can be tracked though multiple levels of consignment.
Durable Tooling
Durable tools follow a life cycle similar to products in that they are fabricated and assembled to revision-controlled drawings; individually identified (serialized); and repaired, maintained and upgraded throughout their service life cycle. RFID tagging enables automated tracking and accountability of each tool while also improving visibility and reporting.
- Tool inventory RFID tags can provide automatic tracking of issues/receipts in and out of tool cribs and in deployed locations, including in transit to and from supplier facilities and tool repair centers. Maintaining program ownership information on the tag allows physical commingling and can be used to track and control usage of tools.
- Tool repair and calibration RFID tags can be used to track tool usage and last-calibration date and automatically trigger required inspections and recalibrations based on date or number of cycles. For large tools with active RFID tags, tool cost and maintenance history can be accumulated on the tool itself as it gets repaired, refurbished and upgraded over its life cycle.
Government-Furnished Equipment/ Customer-Furnished Equipment
Application of RFID tags by the customer facilitates automated receipt and acknowledgement of the material. Further tracking is achieved through government-furnished equipment (GFE) and customer-furnished equipment (CFE) stores and acknowledgement of consumption as it is installed into the end-item product.
MRO Removals
On larger products such as aircraft, RFID can facilitate tracking of customer-owned parts and components that are removed during overhaul and repair and reassembled back into the product prior to delivery. During the MRO process, these parts are treated similarly to GFE/CFE except that they are pegged to a specific product being overhauled. In this manner, the virtual product or virtual aircraft can be tracked during the remanufacturing and rebuilding process.
Import, Export, Customs-Trade Partnership Against Terrorism and International Traffic in Arms Regulations Compliance
Customs-Trade Partnership Against Terrorism is a joint initiative between U.S. Customs and business. International Traffic in Arms Regulations is part of the code of federal regulations which controls import and export of defense articles and defense services. RFID applications can assist in the screening and control process to assure regulatory compliance, expedite export shipments and improve record keeping.
Fixed Assets
RFID-tagged ownership information on assets such as furniture, machinery and computers enables efficient management of company- and government-owned assets.
RFID Is Here to Stay
Clearly, RFID will become an integral part of the A&D industry landscape. Early adopters stand to gain the most benefits from this new technology through accelerated learning and experience.
Companies that apply more strategic thinking to RFID will be able to develop more high-value, game-changing applications and higher-performance capabilities that will help differentiate them in the marketplace.
