Aircraft Rotable Components - MRO Cost Models / SAP Preventive and Predictive Analytics

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A rapid repair loop is a key component of an agile supply chain. It is also one of the most direct ways to save money in high-tech, high-pressure sectors. Put differently, the only way to compensate for a sub-optimized repair loop is to spend more money on new stock.

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Aircraft Rotable Components - MRO Cost Models / SAP Preventive and Predictive Analytics

  1. 1. Aircraft Maintenance and Repair – Rotable Inventory Components “A rapid repair loop is a key component of an agile supply chain. It is also one of the most direct ways to save money in high-tech, high-pressure sectors. Put differently, the only way to compensate for a sub-optimized repair loop is to spend more money on new stock.” tdmc
  2. 2. Airline Major Cost Drivers  Airline Major Cost Drivers  Introduction to Rotable Components  Understanding the Repair Loop  Supply Chain Value Creation  Pricing Models and their Application  Smarter MRO – Deloitte  RFID Technology – MRO Management December 2013  Big Data and MRO – SAP Predictive and Preventive Analytics  Aircraft MRO Market Study to 2035 – STRAIR  Aviation growth patterns and the MRO strategy forward  Commercial Aviation MRO 2020 – IBM  MRO Survey 2014 – Oliver Wyman  AHMS – Aircraft Health Management Systems tdmc
  3. 3. T H E D ATA M I N I N G C O M PAN Y tdmc creative data intelligence strategy solutions for small, medium and corporate enterprise A N A LY T I C S D E S C R I P T I V E P R E D I C T I V E P R E S C R I P T I V E Visit us at: www.thedataminingcompany.com human interface business consulting services
  4. 4. Services include in depth analysis of your business and industry with unbiased advice to analyze and optimize your industry specific challenges for the new digital economy. Services Include: Business Assessment – Measures business health and positioning. Big Data – Are you making the most use of your data streams? Data Integrity Evaluation – Is your IT system giving you the right numbers? Data Intelligence Analytics – Extracting Business Value – What is your data worth? Data Management at Project Implementation - Is your data as clean as possible? Supply Chain Analysis and Optimization – Are you running a lean operation? Market Research Intelligence Services – What is the industry doing? White Paper Research and Intelligence – What information is important? Business Requirements – Translating for digital products? Going Digital– Optimize ROI for digital transformation? Understanding the Consumer – Ecommerce and Social Media strategy optimization. T H E D ATA M I N I N G C O M PAN Y tdmc www.thedataminingcompany.com
  5. 5. Airline Major Cost Drivers Jet Fuel
  6. 6. Airline Major Cost Drivers Heavy Maintenance
  7. 7. Airline Major Cost Drivers Component MRO
  8. 8. Airline Major Cost Drivers Financing
  9. 9. Airline Major Cost Drivers Operations
  10. 10. Airline Major Cost Drivers Sales and Marketing
  11. 11. Airline Revenue Optimization  For a comprehensive industry analysis of Airline Revenue Optimization please visit our presentation research on our website www.thedataminingcompany.com by clicking image below: Includes: • Revenue Management • Fuel Efficiency Strategies • Cabin Configuration • Seating Technology • Emerging Markets • Wing Design • Flight Dynamics and Operations • Airplane Boarding Optimization • Alternative Fuels • Technology – Flight Efficiency • Big Data – The Industrial Internet • Route / Flight Planning • Fleet Optimization • Mobile Technology • Ancillary Revenue • Retailing Opportunities Airline Revenue Optimization tdmc
  12. 12. Introduction to Rotables and the Repair Loop “It’s tougher than ever to perform MRO operations efficiently and effectively. From outside, material costs are rising. From inside, siloed processes, disparate systems, and data overload make it hard to coordinate the whole MRO process, from scheduling and forecasting to inventory management and replenishment. “ - Deloitte tdmc
  13. 13. Introduction to Rotables ROTABLE: “Is an equipment item or component that if removed from service may be repaired and returned to stores as a serviceable spare.” “If good practices in rotable management can be successfully implemented and sustained :  There can be significant cost savings and improvements in operational reliability:  Reduced stock-outs  Reduced inventory levels  Reduced repair TAT (turn around time)  Reduced early failures (increase in reliability)  Improved equipment life through defect elimination Repairable: Any component that is typically repaired and returned to service as repaired/overhauled or "as new" conditon. Engines, generators, pumps, large actuators, many electric motors, etc. Expendable: Any component that is discarded at the end of its useful life, i.e is not worth repairing or cannot be repaired or overhauled due to it's construction. Hoses, some brake components, small actuators, switches, etc. Consumable: Any component that is rendered unsuitable for reuse when it's installed. Gaskets, sealants, compression fittings, etc.
  14. 14. The Key: Optimizing the Repair Loop “A rapid repair loop is a key component of an agile supply chain. It is also one of the most direct ways to save money in high-tech, high-pressure sectors. Put differently, the only way to compensate for a sub-optimised repair loop is to spend more money on new stock.”  Rotable components can be categorized within the Repair Loop:  1. In the air (MTBF; MTBR; MTBUR)  Part is installed on an aircraft and subject to hard failure  Efficient statistical information on MTBF, MTBR, MTBUR is necessary to predict demand patterns  2. Waiting for repair (CORE)  Removed from an aircraft due to hard failure  Operator needs to ship part to “Service provider”  3. In repair (TAT)  Shop has received part and will inspect and repair/overhaul  Pricing models need to be evaluated for effective inventory evaluation and to contribute to CBH modelling  4. Waiting for use (Serviceable)  Part is now functional and waiting for demand (sitting on shelf)
  15. 15. In the Air Waiting for Repair In Repair Waiting for Use The Repair Loop CORE UNIT - Inventory may sit in Operators hangar or warehouse for longer than necessary - The longer a CORE unit takes to get through the loop, the more money will be tied up in inventory that we need to hold to meet demand patterns SERVICEABLE - The supply pattern for rotables needs efficient “transit time” for the CORE unit to move through the loop, and also the pricing , reliability and safety parameters need to be monitored for cost savings and regulatory compliance Optimizing the Repair Loop The question is: How do we keep flying at the lowest inventory costs without sacrificing the supply of mission critical components?
  16. 16. In the Air Waiting for Repair In Repair Waiting for Use The Repair Loop CORE UNIT - Inventory may sit in Operators hangar or warehouse for longer than necessary - The longer a CORE unit takes to get through the loop, the more money will be tied up in inventory that we need to hold to meet demand patterns SERVICEABLE - The supply pattern for rotables needs efficient “transit time” for the CORE unit to move through the loop, and also the pricing , reliability and safety parameters need to be monitored for cost savings and regulatory compliance The Key: Optimizing the Repair Loop The question is: How do we keep flying at the lowest inventory costs without sacrificing the supply of mission critical components? “ Optimize repair cost and inventory levels without compromising Customer Service levels ”
  17. 17. 1. In the air (MTBF; MTBR; MTBUR) Part is installed on an aircraft and subject to hard failure Optimization for Inventory “In the Air”  Efficient statistical information on MTBF, MTBR, MTBUR is necessary to predict demand patterns  RFID tags on “moving” inventory may identify where your inventory is going and the destination for your replacement part. Optimally reducing the need for buying new parts  Engineering initiatives for part reliability and value engineering will enhance “on wing” time and will reduce inventories needed on the shelf in stores  Dedicated pilot and flight engineering teams should be trained to note and report hard failures for parts as they occur for efficient repair and deployment  Big Data analytics from Aircraft HMS (Health Monitoring Systems) may predict part failures and associated system failures and enhancements for maximum uptime of revenue producing Aircraft. Use associations rules data modeling to develop rules and algorithms to determine potential part failures and remedial actions. Inventory “In the Air” Part installed on Aircraft and subject to hard failure
  18. 18. 2. Waiting for Repair Part removed from Aircraft and waiting for shipment to pass through warehouse (Open Loop) Optimization for Inventory “Waiting for Repair”  Provide incentives for Operators to ship parts to warehouse for regulatory paperwork as quickly as possible  RFID tags on “moving” inventory may identify where your inventory is going and the destination for your replacement part. Optimally reducing the need for buying new parts  Discuss and evaluate the possibility for lowering repair costs through “Pure Fixed Cost of Repair”, PMA parts incorporation, DER repairs  Properly mitigate risks associated with DOA (Dead on Arrival) , NFF (No Fault Found), and Rogue Units Evaluate the incorporation of SB (Service Bulletins) and AD (Airworthiness directives)  Optimally, repair centers with capabilites should be onsite or have regulatory compliance authority to optimize repair loop time Inventory “Waiting for Repair” Part is “CORE”; failed and waiting for repair
  19. 19. Inventory “In Repair” Repair Shop is analyzing CMM repair scheme 3. In Repair Part is now at repair/overhaul facility Optimization for Inventory “In Repair”  Supply Chain for piece parts required for repair scheme needs lean processing and availability requirements  Enhance IT systems to be able to track TAT (repair Turn Around Time) to contractual commitments and industry standards  Negotiate best T&C (terms and conditions) for piece part availability and pricing  Expedite parts as soon as possible back to Serviceable warehouse for re-use on Aircraft in Service
  20. 20. Inventory “Ready for Use” Part is Serviceable 4. Ready for Use Part is now Serviceable Optimization for Inventory “Ready for Use”  Optimize the repair loop by making certain all regulatory compliance issues have been cleared and there will be no paperwork setbacks when deploying part for service  Using advanced warehouse logistics, make certain parts are easily accessible and part is optimized for proper shelf life  Take into consideration the shelf time of LLP (life limited parts) such as seals, gaskets, and fluids  Use a FIFO (First in first out) inventory policy to optimize parts shelf life time
  21. 21. In the Air Waiting for Repair In Repair Waiting for Use The Repair Loop CORE UNIT - Inventory may sit in Operators hangar or warehouse for longer than necessary - The longer a CORE unit takes to get through the loop, the more money will be tied up in inventory that we need to hold to meet demand patterns SERVICEABLE - The supply pattern for rotables needs efficient “transit time” for the CORE unit to move through the loop, and also the pricing , reliability and safety parameters need to be monitored for cost savings and regulatory compliance The Key: Optimizing the Repair Loop Optimization involves a robust IT system that breaks operational silos and fosters open communication.
  22. 22. In the Air Waiting for Repair In Repair Waiting for Use The Repair Loop CORE UNIT - Inventory may sit in Operators hangar or warehouse for longer than necessary - The longer a CORE unit takes to get through the loop, the more money will be tied up in inventory that we need to hold to meet demand patterns SERVICEABLE - The supply pattern for rotables needs efficient “transit time” for the CORE unit to move through the loop, and also the pricing , reliability and safety parameters need to be monitored for cost savings and regulatory compliance Optimizing the Repair Loop
  23. 23. In the Air Waiting for Repair In Repair Waiting for Use The Repair Loop CORE UNIT - Inventory may sit in Operators hangar or warehouse for longer than necessary - The longer a CORE unit takes to get through the loop, the more money will be tied up in inventory that we need to hold to meet demand patterns SERVICEABLE - The supply pattern for rotables needs efficient “transit time” for the CORE unit to move through the loop, and also the pricing , reliability and safety parameters need to be monitored for cost savings and regulatory compliance Optimizing the Repair Loop
  24. 24. In the Air Waiting for Repair In Repair Waiting for Use The Repair Loop CORE UNIT - Inventory may sit in Operators hangar or warehouse for longer than necessary - The longer a CORE unit takes to get through the loop, the more money will be tied up in inventory that we need to hold to meet demand patterns SERVICEABLE - The supply pattern for rotables needs efficient “transit time” for the CORE unit to move through the loop, and also the pricing , reliability and safety parameters need to be monitored for cost savings and regulatory compliance Optimizing the Repair Loop Aircraft Health Monitoring Systems Highly Efficient Logisitcs with Regulatory Compliance Capabilities Effective TAT with Reliability & Warehousing Integration
  25. 25. System OEM suppliers •Providing complete integrated systems to Aerospace and other •Business cases built primarily on after market revenue (80:20) •Generate Revenue Aircraft OEM suppliers •Offer Aircrafts that are efficient (Fuel burn & Operating / Maintenance Costs) •Provide all encompassing service solutions for Operators •Provide training and pilots to operate the AC •Generate Revenue Supply Chain Value Creation Airline Operator •Maximize Revenue per Available Seat Mile •Minimize Costs per available seat mile ; Fuel Burn and Maintenance •Trend: Aggressive maintenance plans an integral part of RFQ •Generate Revenue Bundled Service Providers •Competitive maintenance & logistics plans to Operators •Keep AC Fleet flying at the lowest cost •Cost centers driving to profit center models •Generate Revenue MRO service providers •Offer R&OH services at the lowest cost (compete with system OEMs) •Charging framework; T&M, FC + exclus; PFCR •Specific technology will limit nose to tail offerings •May offer exchange programs for specific components •Generate Revenue
  26. 26. In the Air Waiting for Repair In Repair Waiting for Use The Repair Loop CORE UNIT - Inventory may sit in Operators hangar or warehouse for longer than necessary - The longer a CORE unit takes to get through the loop, the more money will be tied up in inventory that we need to hold to meet demand patterns SERVICEABLE - The supply pattern for rotables needs efficient “transit time” for the CORE unit to move through the loop, and also the pricing , reliability and safety parameters need to be monitored for cost savings and regulatory compliance Challenge: Synchronizing Supply and Demand Affected by: Fleet Use (Cycles and FH) Part Reliablity (MTBF, MTBR, MTBUR) Aircraft operating Environments Scheduled Maintenance Checks Geographic Positioning Maintenance Crew Expertise Supply Pattern for Rotables • Bundled Service Providers may be able to mitigate risk for Operators • There is an aggressive trend for airline opertaors to negotiate service contracts with the Aircraft RFQ • Any inefficiencies in this portion of the Supply Pattern will lead to over investment in inventory • Inefficiencies will also lead to downtime of revenue producing Aircraft Demand Pattern for Rotables Negotiate effective CBH programs Affected by: TAT – Turn Around Time Efficiency of the the part moving through the Repair Loop Regulatory Compliance processes at receiving and deployment warehouses
  27. 27. Component Repair Pricing models and their Application Few MRO entities have the analytical power and data management skills to support the systematic translation of raw data into the actionable productivity metrics needed for continuous improvement. Having that capability, an MRO organization can measure and compare performance by mechanic and by work package, allowing leading practices to be shared and effective remedial training to be targeted. Time-based data can support better sequencing of work, especially non-routine tasks. Rather than simply reacting, management can discover variations early on and develop corrective actions. - Deloitte tdmc
  28. 28. T H E D ATA M I N I N G C O M PAN Y tdmc creative data intelligence strategy solutions for small, medium and corporate enterprise A N A LY T I C S D E S C R I P T I V E P R E D I C T I V E P R E S C R I P T I V E Visit us at: www.thedataminingcompany.com human interface business consulting services
  29. 29. Services include in depth analysis of your business and industry with unbiased advice to analyze and optimize your industry specific challenges for the new digital economy. Services Include: Business Assessment – Measures business health and positioning. Big Data – Are you making the most use of your data streams? Data Integrity Evaluation – Is your IT system giving you the right numbers? Data Intelligence Analytics – Extracting Business Value – What is your data worth? Data Management at Project Implementation - Is your data as clean as possible? Supply Chain Analysis and Optimization – Are you running a lean operation? Market Research Intelligence Services – What is the industry doing? White Paper Research and Intelligence – What information is important? Business Requirements – Translating for digital products? Going Digital– Optimize ROI for digital transformation? Understanding the Consumer – Ecommerce and Social Media strategy optimization. T H E D ATA M I N I N G C O M PAN Y tdmc www.thedataminingcompany.com
  30. 30. Turn Around Time R&OH Cost Safety & Reliability In Repair Providing cost protection and budget predictability to aircraft operators Allowing operators to focus on their Core business activity Rotable Inventory Repair Loop Cost Parameters Bundled Service Providers
  31. 31. R&OH Cost • Usually highest risk for Repair Pricing • Hourly rates may not be competitive • Material discounts may not be competitive Time & Material • Variable pricing • No current/future benchmark • Selling price to market may not be profitable • Profit margins • Spend Budget Fixed Cost Plus Exclusions • Attempts to revert cost volatility risk to supplier • Allows PO deployment with Fixed Price • Easier to manage budgets for PL • Creates benchmarks for future reference Pure Fixed Cost of Repair Rotable Inventory Repair Loop – Pricing Models
  32. 32. • Usually highest risk for Repair Pricing • Hourly rates may not be competitive • Material discounts may not be competitive Time & Material Upon Reception of LRU: Repair Shop will : - Disassemble as per CMM - Analyze parts requirements for R&OH - Send a detailed quote including parts requirements and labour hours required - Quote received by Logistics is approved Pricing Models – Time & Material
  33. 33. Pricing Models – Fixed Cost plus Exclusions • Variable pricing • No current/future benchmark • Selling price to market may not be profitable • Profit margins • Spend Budget Fixed Cost Plus Exclusions Upon Reception of LRU: Repair Shop will : - Disassemble as per CMM - Analyze parts requirements for R&OH - Determine which parts are in scope / out of scope - Send a detailed quote including which agreed upon repair scheme price to be used - Quote received by Logistics Agent to be checked against pricing agreement and approved
  34. 34. • Attempts to revert cost volatility risk to supplier • Allows PO deployment with Fixed Price • Easier to manage budgets for PL • Creates benchmarks for future reference Pure Fixed Cost of Repair Upon Reception of LRU: Repair Shop will : - Disassemble as per CMM - Analyze parts requirements for R&OH - Send a detailed quote along with the fixed price that has been negotiated contractually - Quote received by MLA to be checked against pricing agreement and approved Pricing Models – Pure Fixed Cost of Repair
  35. 35. Deloitte - Strategies for smarter MRO Sometimes, it’s best to begin at the end. What’s the ideal state for maintenance, repair, and overhaul operations? An appropriate answer is an integrated approach in which processes, people (including OEMs, third-party providers, and vendors), and technology are connected, each component of the whole process finely tuned and coordinated to achieve optimal reliability for the lowest possible cost. - Deloitte tdmc
  36. 36. Reports and Industry Analysis Strategies for Smarter MRO- Deloitte
  37. 37. Reports and Industry Analysis Strategies for Smarter MRO- Deloitte The Five Strategies – Key Takeaways 1. Achieve short and consistent turnaround time (TAT) using a combination of lean, Six Sigma, theory of constraints, and information 2. Improve the design and planning of maintenance 3. Reduce inventory, while increasing service levels 4. Select the right MRO IT solution and extract value from that investment 5. Craft a fact-based outsourcing strategy
  38. 38. AHMS – Aircraft Health Management Systems tdmc
  39. 39. T H E D ATA M I N I N G C O M PAN Y tdmc creative data intelligence strategy solutions for small, medium and corporate enterprise A N A LY T I C S D E S C R I P T I V E P R E D I C T I V E P R E S C R I P T I V E Visit us at: www.thedataminingcompany.com human interface business consulting services
  40. 40. Services include in depth analysis of your business and industry with unbiased advice to analyze and optimize your industry specific challenges for the new digital economy. Services Include: Business Assessment – Measures business health and positioning. Big Data – Are you making the most use of your data streams? Data Integrity Evaluation – Is your IT system giving you the right numbers? Data Intelligence Analytics – Extracting Business Value – What is your data worth? Data Management at Project Implementation - Is your data as clean as possible? Supply Chain Analysis and Optimization – Are you running a lean operation? Market Research Intelligence Services – What is the industry doing? White Paper Research and Intelligence – What information is important? Business Requirements – Translating for digital products? Going Digital– Optimize ROI for digital transformation? Understanding the Consumer – Ecommerce and Social Media strategy optimization. T H E D ATA M I N I N G C O M PAN Y tdmc www.thedataminingcompany.com
  41. 41. AHMS Aircraft Health Management System Intelligent Airline Operations Objectives of AHMS  Leverage an aircraft`s real time data within the context of operations so that one can identify and address a maintenance event before it occurs  Reduce the costs of airlines and operators due to delays and cancellations resulting from unscheduled or unpredicted events  Increase profitability, performance, customer experience, and uptime of revenue producing assets
  42. 42. AHMS Aircraft Health Management System How it came to be – The Industrial Internet Integrated Technologies  Machine learning  Big Data  Internet of Things  Machine to Machine Communications  Advanced Computing  Low Cost Sensing
  43. 43. AHMS Aircraft Health Management System Aircraft Health Monitoring - Evolution
  44. 44. AHMS Aircraft Health Management System Cost Benefits of Intelligent Airline Operations  Reduction of unscheduled maintenance  Fewer delays and cancellations  Increased aircraft availability  Enhanced on-time performance  Increased maintenance efficiency  Reduction in maintenance costs  Reduction in lost revenue costs  Spare parts inventory optimization  Provides enhanced first time fix effectiveness  Increases fuel mileage
  45. 45. AHMS – Standard feature on some Jets Aircraft Health Management System Real time Data Exchanges
  46. 46. Industry Updates and RFID Technology Radio frequency identification (RFID) technology use is quickly becoming commonplace in the aerospace industry as airlines, aerospace manufacturers and their suppliers are using tags to track and identify items as part of trading partner programs and internal materials management and MRO programs. - XERAFY tdmc
  47. 47. T H E D ATA M I N I N G C O M PAN Y tdmc creative data intelligence strategy solutions for small, medium and corporate enterprise A N A LY T I C S D E S C R I P T I V E P R E D I C T I V E P R E S C R I P T I V E Visit us at: www.thedataminingcompany.com human interface business consulting services
  48. 48. Services include in depth analysis of your business and industry with unbiased advice to analyze and optimize your industry specific challenges for the new digital economy. Services Include: Business Assessment – Measures business health and positioning. Big Data – Are you making the most use of your data streams? Data Integrity Evaluation – Is your IT system giving you the right numbers? Data Intelligence Analytics – Extracting Business Value – What is your data worth? Data Management at Project Implementation - Is your data as clean as possible? Supply Chain Analysis and Optimization – Are you running a lean operation? Market Research Intelligence Services – What is the industry doing? White Paper Research and Intelligence – What information is important? Business Requirements – Translating for digital products? Going Digital– Optimize ROI for digital transformation? Understanding the Consumer – Ecommerce and Social Media strategy optimization. T H E D ATA M I N I N G C O M PAN Y tdmc www.thedataminingcompany.com
  49. 49. Industry Updates Click to Link to Web Based Article about Parts Consolidation in the MRO industry
  50. 50. Industry Updates Click to Link to Web Based Whitepaper about RFID tags in the Aerospace Industry and the reality of How the Technology is helping suppliers
  51. 51. Click to Link to Web Based Article about Boeing and Airbus using RFID tags Tracking (RFID) devices cut costs and reduces inventory
  52. 52. Click HERE to view web article from MRO Management December 2013
  53. 53. Optimizing MRO Big Data & SAP Preventive and Predictive Analytics We’re hearing a lot about Big Data these days. Mostly it’s about organizations collecting vast amounts of customer and user data – and then trying to make sense of it to improve various business operations. The truth is Big Data is not always about highly complex algorithms. Sometimes it is simply about being able to access the information that you need at the right place and at the right time. Let’s take a look at aerospace maintenance, repair, and overhaul (MRO) operations to see how real-time information access can be just as important as complex information analysis.- Terra XML tdmc
  54. 54. T H E D ATA M I N I N G C O M PAN Y tdmc creative data intelligence strategy solutions for small, medium and corporate enterprise A N A LY T I C S D E S C R I P T I V E P R E D I C T I V E P R E S C R I P T I V E Visit us at: www.thedataminingcompany.com human interface business consulting services
  55. 55. Services include in depth analysis of your business and industry with unbiased advice to analyze and optimize your industry specific challenges for the new digital economy. Services Include: Business Assessment – Measures business health and positioning. Big Data – Are you making the most use of your data streams? Data Integrity Evaluation – Is your IT system giving you the right numbers? Data Intelligence Analytics – Extracting Business Value – What is your data worth? Data Management at Project Implementation - Is your data as clean as possible? Supply Chain Analysis and Optimization – Are you running a lean operation? Market Research Intelligence Services – What is the industry doing? White Paper Research and Intelligence – What information is important? Business Requirements – Translating for digital products? Going Digital– Optimize ROI for digital transformation? Understanding the Consumer – Ecommerce and Social Media strategy optimization. T H E D ATA M I N I N G C O M PAN Y tdmc www.thedataminingcompany.com
  56. 56. Click HERE for web Article Using Big Data to Streamline Aircraft Maintenance FACTS  In 2011 there were 7185 aircraft in the US Commercial fleet  Each aircraft must undergo a rigorous schedule of servicing CHALLENGES  Each time a plane is taken out of service for maintenance it can`t be used by the airline for generating revenue  This could translate into a revenue loss of six figures or more, per plane, per day Big Data and MRO Optimization
  57. 57. Factors Affecting Aircraft Turn Around Time  Delivering and Tracking maintenance job cards  Finding Approved Procedural Information  Tracking Completed tasks and generating related non-routines  Identifying maintenance records for individual aircraft  Selecting and procuring required replacement parts CHALLENGES  Each time a plane is taken out of service for maintenance it can`t be used by the airline for generating revenue  This could translate into a revenue loss of six figures or more, per plane, per day Big Data and MRO Optimization
  58. 58. Information access for maintenance technicians CHALLENGES  Information can be stored across multiple physical and electronic repositories  Alerts for updated / new part and procedure information are delivered inconsistently  Tracking completed work and generating the necessary signoffs Big Data and MRO Optimization BUSINESS QUESTION ? How can an aircraft MRO organization leverage Big Data technology to improve operational efficiency and minimize aircraft downtime ?
  59. 59. Big Data and MRO Optimization BUSINESS QUESTION ? How can an aircraft MRO organization leverage Big Data technology to improve operational efficiency and minimize aircraft downtime ? 1. Centralize Information: central data base must store all necessary data, with links back to source files to be sure all updates are delivered to workers in the field. All industry standard file formats ATA, S1000D, DITA, and Docbook must be supported. 2. Filter According to defined user roles: to make Big Data more approachable is to filter information according to specified user roles. By presenting the information associated with a specific operation or aircraft tail number, service technicians are better able to focus on completing the task at hand.
  60. 60. Big Data and MRO Optimization BUSINESS QUESTION ? How can an aircraft MRO organization leverage Big Data technology to improve operational efficiency and minimize aircraft downtime ? 3. Make Information Searchable: eliminate time required for service technicians to search through thousands of pages of maintenance documents and parts catalogues. Data needs to be delivered in a form more advanced than a simple viewer. Use intelligent search and and context awareness ; bookmarking, hyperlink management, and tail number effectivity to supply MRO information quickly and accurately. 4. Mobile Delivery: Integrate mobile technology into aircraft flight and maintenance operations. CHALLENGE – there is no single OS that can deliver information across all mobile platforms SOLUTION – use a web interface to make it accessible on any hardware system with an internet connection and a web browser
  61. 61. Big Data and MRO Optimization BUSINESS QUESTION ? How can an aircraft MRO organization leverage Big Data technology to improve operational efficiency and minimize aircraft downtime ? 5. CONTENT Authoring: Integrate a content authoring / publishing system into MRO data management to add value. With the capability of authoring routine and non-routine job cards directly from the data collection environment. 6. Use Consistent Structure: Model and capture data upfront to avoid separate metadata implications. The required data should be capable of being mined in any number of planned and unplanned ways. 7. Learn from Experiences: Study and improve granular events as part of CASS (Continuing Analysis and Surveillance Systems). Detect trends in failures, parts usages, non-routines and life limits. Use data to refine maintenance planning operations that support cost reductions and safety of flight operations.
  62. 62. Big Data and MRO Optimization BUSINESS QUESTION ? How can an aircraft MRO organization leverage Big Data technology to improve operational efficiency and minimize aircraft downtime ? BUSINESS BENEFITS Operator Level Benefits – access to more intelligent information means that more time is spent completing tasks than finding or processing paperwork Business Level Benefits – more efficient operations translate into reduced aircraft downtime, driving higher margins for commercial operations
  63. 63. Click for Web Article – SAP for Aerospace and Defense Leveraging Big Data for MRO Optimization Click HERE for SAP MRO Solutions Videos
  64. 64. Leveraging Big Data for MRO Optimization How it Works – SAP Predictive Analytics
  65. 65. Leveraging Big Data for MRO Optimization How it Works – SAP Predictive Analytics
  66. 66. Leveraging Big Data for MRO Optimization How it Works – SAP Predictive Analytics
  67. 67. Leveraging Big Data for MRO Optimization How it Works – SAP Predictive Analytics Click HERE for additional information on SAP Predictive Analytics
  68. 68. Click HERE for web article Analyze Sensor Data in near Real Time
  69. 69. Click HERE for Web Article research paper Data Science for Flight Operations Analysis Distributed Optimization for Aircraft Fleet Monitoring
  70. 70. Click HERE for Web Article research paper Data Science for Flight Operations Analysis Distributed Optimization for Aircraft Fleet Monitoring
  71. 71. Aircraft MRO Market Study to 2035 The global fleet is expected roughly to triple to 44,000 aircraft and the European fleet to nearly double. In spite of the shift towards larger aircraft, more than half of the aircraft in service in 2035 will be narrow bodies. This situation arises as availability of adequate flight frequencies is still judged to be critical, even in the maturing markets. - STRAIR tdmc
  72. 72. T H E D ATA M I N I N G C O M PAN Y tdmc creative data intelligence strategy solutions for small, medium and corporate enterprise A N A LY T I C S D E S C R I P T I V E P R E D I C T I V E P R E S C R I P T I V E Visit us at: www.thedataminingcompany.com human interface business consulting services
  73. 73. Services include in depth analysis of your business and industry with unbiased advice to analyze and optimize your industry specific challenges for the new digital economy. Services Include: Business Assessment – Measures business health and positioning. Big Data – Are you making the most use of your data streams? Data Integrity Evaluation – Is your IT system giving you the right numbers? Data Intelligence Analytics – Extracting Business Value – What is your data worth? Data Management at Project Implementation - Is your data as clean as possible? Supply Chain Analysis and Optimization – Are you running a lean operation? Market Research Intelligence Services – What is the industry doing? White Paper Research and Intelligence – What information is important? Business Requirements – Translating for digital products? Going Digital– Optimize ROI for digital transformation? Understanding the Consumer – Ecommerce and Social Media strategy optimization. T H E D ATA M I N I N G C O M PAN Y tdmc www.thedataminingcompany.com
  74. 74. Aviation Growth Forecast Growth Forecast of the Aviation Industry – Methodology 1. Macroeconomic forecast using US Department of Energy assumptions for GDP growth 2. Passenger traffic forecasts were derived using income and price elasticity factors 3. Demand for aircraft calculated from the passenger traffic forecast
  75. 75. MRO Worldwide Facts and Figures  Global Airline fleet will triple by 2035 to 44000 aircraft  More than half of the worldwide fleet will be narrowbody (single aisle)  This occurance arises since flight frequencies are a critical parameter for passengers and airlines  ? What does this mean for the MRO market ? * Over time the maintenance requirements per aircraft are tending to decline because each generation of aircraft is engineered to require less maintenance than the preceding generation.
  76. 76. MRO Business Issues 1. Cost Constrained Airlines Financial pressure has forced them to reduce costs resulting in outsourcing of MRO activities 2. MRO Providers Use the volume of business and specialization to lower the unit costs of work by choosing locations with lower labour costs and lower set up costs 3. MRO Function Traditional role of the MRO provider is changing to become a total support function. Airlines are looking for a one stop solution based on a long term commitment to the provider 4. Labour Lower costs in China, the Far East and South America has pushed MRO activity geographically. Service quality issues in these regions is receding.
  77. 77. Airline passenger growth to 2035 Passenger growth vs. MRO growth Since each new generation of aircraft is more sophisticated than its predecessor, thus requiring less frequent maintenance intervals, then the MRO growth in the mainstream scenario will be less than half of the traffic growth
  78. 78. Worldwide fleet growth to 2035
  79. 79. Building your MRO Strategy Considerations for MRO Strategy forward  Finding the “sweet spot” for the bulk of MRO activity for aging aircraft before they are retired or re-commissioned geographically to different parts of the world to extend their serviceable life  As fuel prices continue to climb, this will accentuate the trend for airlines to re-fleet with newer more fuel efficient aircraft. Will the aircraft they retire be readily available for their value in spare components?  There are already signs in the industry that aircraft retirement ages are reducing and it is possible that the average lifespan of an aircraft can reduce to 20 or even 15 years.
  80. 80. MRO market drivers What is the main driver of MRO operations?  Maintenance tasks are generated as a result of aircraft operations Aircraft OEM and regulators (FAA, CAA, etc) provide a maintenance planning (MPD) document for the particular aircraft type which spells out the required tasks and frequency (interval) at which individual maintenance checks need to be performed  Maintenance Intervals are affected by: Fleet flying hours Landings Cycles Calendar time
  81. 81. MRO Trends  Airlines outsource to cut costs  Major Airlines have set up their MRO operations as profit centre businesses  Since aircraft can move easily geographically suppliers are competing on an international if not global basis  Some European airlines dispatch aircraft to engineering facilities in Asia, especially modifications and D-checks  Airlines must consider the time taken to ferry aircraft to and from Asia as a major factor since it means a major loss of revenue earning days
  82. 82. New Generation variations of Aircraft require less man hours for maintenance MRO Maintenance trends for new generation aircraft
  83. 83. MRO Success Parameters  Guaranteed and minimised downtime Indirect costs of revenue loss during downtime is sometimes more important than the direct cost of the maintenance procedure  Quality / Reliability Use big data opportunities to track analytics for maximum uptime of revenue producing aircraft  Price Becomes an issue after the two above criteria are met. Most operators will pay more for quality and delivery being achieved since it will increase the uptime of revenue producing aircraft  Availability Is an issue in component and engine service scenarios since AOG will cause delays and adversely affect revenues  Financial ROI for investors / return on capital
  84. 84. The MRO Landscape – 5 Categories 1. Aircraft and aircraft System OEMs 2. Major Airlines 3. Major Airlines Subsidiaries 4. Independent MRO providers 5. Aftermarket parts suppliers/distributors MRO Classifications for Repair 1. Line maintenance 2. Component maintenance 3. Engine maintenance 4. Heavy maintenance Click HERE for full IBM Whitepaper Report
  85. 85. The MRO Component Classification 1. Avionics 2. Landing Gear and Brakes 3. Electrical Power 4. Fuel Systems 5. Hydro-mechanical Systems 6. In cabin environmental controls 7. In flight entertainment systems Component Maintenance
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  89. 89. END The goal of collaboration is a common agenda necessary to standardize the work scope and, in this way, take costly variability out of the process. In a typical case, engineers want a lot of detail, making each work order different; operations want repeatability; OEMs (original equipment manufacturers) want nothing to do with PMAs (parts manufacturing authority) and have an ideal, albeit costly, work scope in mind: these different agendas are hard to arbitrate on the fly. - Deloitte tdmc

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