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Optimizing Mro Ops Interface


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  • 1. Improving Operational Performance by by enhancing the MRO – OPS Interface. Benjamin Walther Christian Lambertus T +49 (0) 170 354 365 8 T +49 (0) 176 830 233 87 mail mail visit visit 1 | 27
  • 2. The current economic situation puts additional pressure on a vulnerable airline industry. Heft 13/2008 IATA Predicts Bigger Losses For World's Airlines The International Air Transport Association (IATA) announced a revised outlook for the global air transport industry, upping expected losses to $4.7 billion in 2009 from an earlier prediction of $2.5 billion in losses. The revised outlook reflects the rapid 2 16.07.2009 Improving Operational Performance by Enhancing the M&E – Flight OPS Interface.
  • 3. To remain competitive, it is of eminent concern for airlines to find solutions that sustainably improve efficiency. Possible solutions to improve efficiency A Downsize production B Optimize processes C Initiate cost reduction programs Optimize operating costs by adjusting Sustainable reduction of operating costs Cutting overhead costs such as long-term supply to demand. achieved through improved workflows. rents, supplier programs, etc. Process Optimization – a measure in lasting success What do you think is the best way to face the crisis in respect to long- Why do companies hesitate with realizing process optimization? term effect1? Certain amount of time required until savings strike the bottom-line. Lacking awareness of optimization potential. Process optimization require investments that have to be justified. Still process optimization is a powerful and attractive instrument because: Is your company planning to establish process optimization Process Optimization… projects1? …not only reduces costs - it ensures competitive advantages. …enables the way back to efficient operations. …saves more costs then other activities in a long term view. …works with employees - not against them. 1) Analysis Aviation Experts 3 16.07.2009 Improving Operational Performance by Enhancing the MRO – OPS Interface.
  • 4. In the past, cross-departmental synergies have not been considered when optimizing processes. Department Optimization Activities Business Objectives • Optimization of flight schedule through the Punctuality integration of additional rules to increase punctuality and profitability. Regularity Operations Control • Introduction of new concepts to increase Safety regularity and punctuality (Fleet clustering). Profitability • Improved communication with Hub Control Centers to optimize processes. • Introduction of new concepts (task-oriented On-Time Provisioning checks, split checks) to perform maintenance events more efficient and reliable. Aircraft Reliability Maintenance • Outsourcing of specific areas and services to Safety improve overall efficiency. Cost Efficiency • Implementation of new systems and processes to increase reliability and safety. This led to an optimization of internal processes but complicated the communication and processes between both parties. 4 16.07.2009 Improving Operational Performance by Enhancing the MRO – OPS Interface.
  • 5. Example 1: Scheduling of standard checks. Description Problems / Impact Check Scheduling Hangar Utilization OPS Operations Control A1 Hangar plans two checks (A1 and A2) for a specific tail Operations Control is A2 1 on two consecutive day. Information is planning on a letter based 1 forwarded to Maintenance Dept. and Maintenance on a Maintenance 2 3 A1 A2 Maintenance Dept. Is planning required checks task-based concept. A1 4 8 12 16 20 0 4 8 12 16 20 on a task based concept. A2 20.06. 21.06. Operations Control does OPS Maintenance Dept. not receive information on A1 Hangar completes A1-Check within first maintenance completed tasks of A2- A2 1 slot. Additional some task out of A2-Check are 2 also completed. Check. The second maintenance Maintenance 2 A1 A2 3 Operations Control receives finished message A1 slot cannot be adjusted 4 8 12 16 20 0 4 8 12 16 20 for A1-Check. accordingly. A2 20.06. 21.06. OPS A2 Maintenance Dept. A1 Hangar completes open tasks of A2-Check within the Inefficient utilization of A2 1 A1 3 second maintenance slot. Operations Control receives finished message maintenance slots. High opportunity costs. Maintenance 2 3 A1 for A2-Check. 4 8 12 16 20 0 4 8 12 16 20 A2 20.06. 21.06. 5 16.07.2009 Improving Operational Performance by Enhancing the MRO – OPS Interface.
  • 6. Example 2: Coordination of special events. Description Problems / Impact Workflow Maintenance Dept. Operations Control Maintenance detects a problem which has to be solved 1 within one week. Maintenance provides a - desired maintenance date. Detection of problem Verification of desired slot Operations Control Maintenance does not 2 cannot provide aircraft on desired date and makes a counterproposal. confirm proposed date. Identification Receives of counter- Counter- proposal proposal Operations Control does Maintenance Dept. not receive information on 3 fixes problem within a standard maintenance slot. completed maintenance Fixes problem in standard slot event. Provides A/C on scheduled slot Operations Control Unnecessary ground and 4 provides aircraft on scheduled date. hangar time is blocked. 6 16.07.2009 Improving Operational Performance by Enhancing the MRO – OPS Interface.
  • 7. Realizing the potential will require to readjust the four key areas of every business entity. Key Areas of Adjustment Processes Organization Vertical harmonization of workflows Identification and alignment of joint between Operations Control and operational objectives. Maintenance Department. Only a holistic transformation leads to sustainable success. Information People Introduction of communication Integration of employees to realize procedures to create an identic set of optimization potential. information on both sides. 7 16.07.2009 Improving Operational Performance by Enhancing the MRO – OPS Interface.
  • 8. Re-Engineering the M&E – OPS Interface will allow you to increase the utilization of your resources. Benefits Potential Resource Utilization Optimized utilization of fixed resources such as hangar space, maintenance bays, etc. High Resource Utilization Medium No unnecessary provision of aircraft for maintenance activities causing Low assets to lie idle. Increased aircraft availability enabling more stable aircraft rotations and High higher flexibility with regard to network operations. Operational Efficiency Medium Low Illustrative High Financial Impact Medium Low Accurately planned maintenance slot for aircraft Enhanced utilization of resources Aircraft 1 2 Maintenance bays A2 3 Hangar space 4 8 12 16 20 0 4 8 12 16 20 0 25 50 75 100 8 16.07.2009 Improving Operational Performance by Enhancing the MRO – OPS Interface.
  • 9. Efficient processes enable an airline to generate bottom-line savings. Benefits Potential Operational Efficiency Increased aircraft availability based on more accurate planning of rotations and maintenance events. High Resource Utilization Medium Prevention of unnecessary ground times for maintenance activities. Low Improved planning quality through enhanced communication and information exchange. High Operational Efficiency Medium Low High Illustration of concept Illustration harmonized planning process Financial Impact Medium Low Effort / Benefit Operations Control Maintenance Efficiency Detection Verifi- cation Effort Identificati Confir- on mation Execution Time 9 16.07.2009 Improving Operational Performance by Enhancing the MRO – OPS Interface.
  • 10. The benefits of the interface optimization will help to reduce direct costs for your airline. Benefits Potential Financial Impact Reduce costs of aircraft parking on the apron due to proper utilization of aircraft stands in the maintenance area. High Resource Utilization Medium With a more accurate planning of ground and maintenance slots, aircraft Low availability will be increased. An improved aircraft availability will help to reduce delay costs by providing High higher flexibility for OPS Control. Operational Efficiency Medium Low With enhanced planning quality maintenance delays can be reduced. High Maintenance delay costs (Example Q1 2009) Breakdown of delay reasons as of Q1 Financial Impact Medium 2009 Low Cost of one Delay 36€ Minute Maintenace Delay as 40% part of Air Carrier Delay Sample Carrier* Air Carrirer Delay 47.325 Minutes Maintenance Delay 18.930 Minutes Maintenance Delay 681.480 € Cost *) Approx. 50 Aircraft, 20.000 Flights 10 16.07.2009 Improving Operational Performance by Enhancing the MRO – OPS Interface.
  • 11. Designing the optimal business process interface requires a proven approach combined with operational experience. Project Approach & Success Factors Success factors for optimizing M&E – OPS Interface Thorough assessment of existing interface with focus on 6 1 Processes Monitoring Analysis Organization People IT. Implemen- 5 tation Project Create awareness for optimization potential to identify efficiency gaps. Approach Identify 2 problems Conduct analysis before beginning of project to… …evaluate effort Development …estimate savings potential of Define KPIs enhancements …formulate business plan. 4 3 Integrate affected stakeholders from the beginning will simplify management of change during implementation. Design processes before adjusting IT to guarantee best-fit solution. 11 16.07.2009 Improving Operational Performance by Enhancing the MRO – OPS Interface.
  • 12. For further information please contact us. Your contacts: Christian Lambertus T +49 (0)176 830 233 87 Benjamin Walther T +49 (0)170 354 365 8 12 16.07.2009 Improving Operational Performance by Enhancing the MRO – OPS Interface.