5. What are the performance management implications?

(Relate to the book’s model.) Because it is in constant competition with Boeing, the European aircraft manufacturer Airbus is looking for every opportunity to increase productivity, reduce costs, and make its production process more efficient. One of its latest efforts is to use RFID technology in both manufacturing and maintenance of its airplanes.

The basic idea is to use RFID to track parts and tools, which are scattered over a large area. Airbus had major delays in completing its A380, the two-decker, 525-seat airplane scheduled for completion in 2007 and 2008.

Airbus hopes that RFID will become “as everyday as barcoding.”

The company experimented with the technology for three years before signing a multimillion-dollar deal with vendors to implement the technology. It also created a value cabin visibility and RFID unit to implement the biggest private sector RFID deal ever.