logo for business cases with human resources, planning and savings

Three business cases illustrating accelean’s experience in the aerospace MRO industry

 

Business Case 1 : improve planning, scheduling and production control in saturated shop

Industry : Aircraft heavy maintenance and redelivery

Company : Independent commercial aircraft MRO

Business Context

  • Growing lease-return, C-check, cabin modification and redelivery activity;
  • Lack of storage and hangar space resulting in loss in value-added time;
  • Disorganized management of aircraft projects wasting labor efficiency;
  • Unbilled hours on additional work orders; late delivery penalties…

Stakes

  • Loss of major leasing company clients due to inability to deliver as a one-stop full service shop;
  • Failure to sign-up potential airline customers for cabin modification and livery change programs;
  • Lack of profitability due to the poor utilization of resources and means of production.

Objectives

  • Implement resources planning, scheduling and production control;
  • Improve project management and shopfloor monitoring;
  • Reengineer quoting / billing processes in order to improve speed and accuracy;
  • Optimize the utilization of mechanical and painting hangars as well as of parking space;
  • Increase labor efficiency in a high wage area lacking of qualified technicians.

Project outcome

  • Implementation of resources planning / scheduling and production control IT system;
  • Overall C-check, cabin modification and painting TATs reduced by more than 30%;
  • Reduction of lost billable hours for additional work;
  • Analysis of actual hours vs standard hours and performance evaluation carried out after each project; continuous improvement now in progress.

image header for business case 1

Business Case 2 : reduce shop visit TAT to increase capacities and cut materials inventory

Industry : Aircraft engine MRO

Company : major European legacy airlines group

Context

  • Engine department confronted with a GE90/115 engine removal wall (group and outside PBH customers engines nearing completion of 2nd run);
  • Lack of floor space for new engine types (RR, GenX) in existing shops;
  • Fierce competition on CFM 56-5B and increased customers expectations.

Stakes

  • Maintain market share and revenue on CFM 56 which make up 50% of the shops’ activity;
  • Within existing constraints, increase capacities to accomodate planned shop visits of big engines, without leasing additional spare engines or affecting the airlines’ operations.

Objectives

  • Reduce TAT of shop visits (QSV and « quick turns ») by 10% to 30% depending on engine type;
  • Reduce standard exchange ratio in order to save on materials inventory (modules and parts);
  • Improve OTD to bolster customer satisfaction and justify high prices for a premium service;
  • Mobilize as many employees as possible in the project to ensure long term commitment.

Project outcome

  • Inducting lead-time dramaticaly decreased by 60% and gap between external customers and group fleet significantly reduced, forecast reliability +/- 1day rated very good by customers;
  • OTD performance increased by 100%;
  • Inventory savings objectives of x0 M€ achieved;
  • Quality index improved by 50%; with long term results yet to be measured;
  • Over 1,000 people participated actively in the project. New processes are now in a sustainability phase, the group end of project survey shows positive feed-back from employees.
  • No social unrest whatsoever.

image header for business case 2

Business Case 3 : reduce shop visit TAT to increase capacities and cut materials inventory (other activity)

Industry : Aircraft component support & repair

Company : OEM avionics part 145 shops

Context

  • Need to make room for new programs (A320 NEO, A350 B737 max..) within existing constraints and the same level of resources;
  • Steep ramp-up of military business due to middle-east operations;
  • Industrial imprint consisting of various outdated facilities located on OEM sites with intricate flows, duplicated means and resources.

Stakes

  • Failure to being ready for new programs – resulting in need for excessive spares inventory;
  • Penalties and inflated inventories of parts and components on military programs due to substandard TAT and OTD performance;
  • Smooth eventual transfer into a new, single facility, to be designed for maximum efficiency.

Objectives

  • Reduce TATs across the board, with emphasis on military product lines;
  • Increase closed loop repairs vs standard exchanges in order to save on materials inventory;
  • Improve quality of the inspection phase to reduce quote revisions, rework or beyond economical repair;
  • Increase labor efficiency in a high-wage, competitive market for qualified technicians.

Project outcome

  • New production system, specific to Part 145 operations, implemented and deployed in all shops;
  • Military TAT and OTD performances pulled up to contract specifications;
  • Reduction of « time to quote » by x days allowing for wider repair window, faster replenishment of pool and a higher proportion of closed-loop repairs, leading to asset inventory reduction of x M €;
  • Redesigned production flows, and redefined production control rules in preparation for transfer into the future new facility.