Aerospace manufacturing can significantly improve their operation efficiency by undergoing a system wide business analysis before implementing an RFID and IIoT program. A proper implementation of a business optimization strategy will provide immediate cost savings, capacity improvements and productivity gains. This provides not only sufficient cost savings to pay for an IIoT and RFID implementation but maximizes the ongoing benefit of such an implementation.
The ROI calculation for an IIoT and RFID program must consider all stakeholders such as IT (infrastructure and development), operations and facilities and must factor in total life cycle costs and continuous improvements enabled by these systems. If the processes within the organization are not optimized sufficiently, IIoT and RFID will, at best, mask the actual issues and result in inaccurate data or, at worst, create increased costs due to employee workarounds such as excel sheets, manual master-schedulers, outdated travelers, etc.
We will review past implementations based on highly-effective holistic approaches which analyzes how a product moves from order to deliver and each supporting activity and information system utilized along its journey. We will demonstrate how using this methodology an organization can receive on average over 20% improvements in labor productivity, production capacity and operating margin prior to financially investing in IIoT and RFID. The savings received as a result of this strategy, coupled with well-conceived plans and requirements which include implementing a supporting IIoT and RFID system, enable continuous improvements such as preventative maintenance, reduced search times, reduced audit times, big data analytics, and more.
- Assess the best approach for business optimization to maximize value
- Understand insights to the present and future of Industry 4.0
- Understand that combining operations and IIoT will provide optimal gains
Why Is It Important?
Manufacturers will benefit from knowing how to leverage business optimization to maximize the success and ROI of an IIoT and RFID program implementation.