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HOW IT WORKS THE AEROSPACE AND AVIATION MRO 
SUPPLY CHAIN? 
LEADERSHIP ● INTEGRATION ●COLABORATION ● VALUE ● I NNOVATION-P...
SUPPLY CHAIN FOR AEROSPACE 
INDUSTRY 
2 
Manufacturing/ 
Assembly 
OEM 
Aerospace & 
Defense 
Industry 
MRO 
From 4 to 6 M...
What is MRO? 
3 
M Maintenance 
R Repair 
O Overhaul
THE ERP MISMATCH 
4 
Capital 
Assets 
M & R 
Inventory Products Sales 
Manufacturing 
MRO 
In the Service Delivery Managem...
5 
AIRFRAME HEAVY MAINTENANCE 
SUPPLY CHAIN
6 
Global Civil Line Maintenance Supply
MRO Supply Chain Challenges 
7 
 Lack of Functions Integration 
Source: Infosys Global MRO Market Economic Assessment
8 
Aviation MRO Supply Chain Challenges 
Poor to No Visibility 
Total Demand 
Planned Demand Input 
Maintenance Plans 
Sh...
MRO Supply Chain Challenges 
9 
Warehouse Management Inefficiencies and 
Inaccuracies 
• Support for Preventive & Predict...
MRO Supply Chain Challenges 
10 
Data Quality- Inaccurate & Incomplete 
• Asset Master 
• Inaccurate Maintenance BOM 
• M...
MRO Supply Chain Challenges 
11 
Solution: Asset Information Model 
Work 
Management 
Supply Chain 
Management 
Asset Inf...
MRO Supply Chain Challenges 
12 
 Inventory Management Complexities 
RFID and GPS 
tags 
integration cut 
costs and 
time...
MRO Supply Chain Challenges 
13 
 Fragmented Supply Base
MRO Supply Chain Challenges 
14 
Complex Procurement Processes
Gartner’s Requirements 
Inter-related Work and Supply Chain Needs 
15 
• Detailed asset registry, combined with detailed p...
16 
Aerospace Value Supply Chain Model 
System 
OEM 
Suppliers 
Provide a complete integrated 
plan to aerospace and aviat...
17 
Five Strategies for Aviation MRO Supply 
Chain Optimization 
Achieve short and consistent turnaround time combining 
...
18 
Thank You 
Presented by: 
Ramón O. Caldas Pagán 
E-Mail: ramon.caldas08@gmail.com 
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How it works the aerospace and aviation mro supply chain?

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How it works the Aerospace and Aviation MRO Supply Chain?

MRO supply chain optimization and value creation is more than a challenge for the aviation industry. It is a live or dies situation. Almost every professional in every field have a general knowledge and is familiar with an ERP manufacturing models. But for an aerospace and airliner operators this approach doesn't fit at all. In this world the service management environment products became capital assets. And capital assets have millions of moving parts, millions of points of failure, hundreds of thousands of unpredictable failures.
Be prepared and at the same time reduce inventories, time and spend it is a real challenge and requires a lot of knowledge and skills. This presentation it is a general overview of how critical and challenging are the MRO supply chains. At the same time presents how critical will be for the industry during the next 20 years and what are the strength, weakness, opportunities and threatens every supply chain professional must mastering to develop solutions and innovation.

Published in: Business

How it works the aerospace and aviation mro supply chain?

  1. 1. HOW IT WORKS THE AEROSPACE AND AVIATION MRO SUPPLY CHAIN? LEADERSHIP ● INTEGRATION ●COLABORATION ● VALUE ● I NNOVATION-PRODUCTIVITY ● SOLUTIONS Presented by: Ramón O. Caldas Pagán
  2. 2. SUPPLY CHAIN FOR AEROSPACE INDUSTRY 2 Manufacturing/ Assembly OEM Aerospace & Defense Industry MRO From 4 to 6 Million parts in an aircraft More than 3 Billions parts procured per year Spend Budget of $1,734 Billions More than 20,000 suppliers Global airline will triple for 2032 Total Support - One Stop Solution More than a half are narrow bed aircrafts The A&D sector will need to place a much higher focus on improving supply chain integration.
  3. 3. What is MRO? 3 M Maintenance R Repair O Overhaul
  4. 4. THE ERP MISMATCH 4 Capital Assets M & R Inventory Products Sales Manufacturing MRO In the Service Delivery Management environment, Products become Capital Assets to the Buyer
  5. 5. 5 AIRFRAME HEAVY MAINTENANCE SUPPLY CHAIN
  6. 6. 6 Global Civil Line Maintenance Supply
  7. 7. MRO Supply Chain Challenges 7  Lack of Functions Integration Source: Infosys Global MRO Market Economic Assessment
  8. 8. 8 Aviation MRO Supply Chain Challenges Poor to No Visibility Total Demand Planned Demand Input Maintenance Plans Shutdown Plans Field Change Orders Un-planned Demand Input Breakdown Maintenance Workorders (Based on empirical past consumptions
  9. 9. MRO Supply Chain Challenges 9 Warehouse Management Inefficiencies and Inaccuracies • Support for Preventive & Predictive Maintenance • Planned & unplanned maintenance • Breakdown → preventive → condition monitoring → predictive • Planning & scheduling process is necessary • Satisfy different demands • Reservation & replenishment capability is required • No excess inventory • Replenish just-in-time to reduce holding costs • Maintenance of Parts in Inventory • Must remain operational • Must insure stock not “cannibalized” • Environmental storage conditions • BOM and Where Used • Effective planning & scheduling of preventive, predictive, & breakdown work • Reduce overall planning time & accuracy on part identification • Reduce mean-time-to-repair • Asset Lifecycle Costs • The right information in real-time In the Air Waiting for Repair In Repair Waiting for Use
  10. 10. MRO Supply Chain Challenges 10 Data Quality- Inaccurate & Incomplete • Asset Master • Inaccurate Maintenance BOM • Master Catalog • Duplicates • Demand Integration • Work Management and Inventory • Work Management and Contract Management • Replenishment Integration • Inventory and Purchasing • Settlement Integration • Purchasing and Accounts Payable • Contract Management and Accounts Payable
  11. 11. MRO Supply Chain Challenges 11 Solution: Asset Information Model Work Management Supply Chain Management Asset Information Model
  12. 12. MRO Supply Chain Challenges 12  Inventory Management Complexities RFID and GPS tags integration cut costs and time, improve inventory track, accuracy, reduce inventory levels and monitors assets condition.
  13. 13. MRO Supply Chain Challenges 13  Fragmented Supply Base
  14. 14. MRO Supply Chain Challenges 14 Complex Procurement Processes
  15. 15. Gartner’s Requirements Inter-related Work and Supply Chain Needs 15 • Detailed asset registry, combined with detailed parts and support descriptions. • Complex inventory relationships for indirect (blue-collar MRO) goods that are associated with forecasts of planned and unplanned work. • Supply chain capability for indirect goods, with demand planning linked to maintenance and repair schedules. • Probability-based "just-in-case" rather than "just-in-time" inventory and procurement. • Supporting complex logistics for inbound material to remote locations. • Serial number tracking and tracing for equipment and parts. • Financial support via detailed cost analysis. • Extensive warranty tracking to component levels.
  16. 16. 16 Aerospace Value Supply Chain Model System OEM Suppliers Provide a complete integrated plan to aerospace and aviation Built after market revenues Generate revenues Aircraft OEM Suppliers Offer efficient, sustainable and low cost O&M aircrafts Develop encompassing services solutions for operators Aircraft T&O trainings Generate revenues Airline Operators Maximize revenues and minimize costs per available seat/mile Innovative, aggressive and competitive maintenance solutions Generate revenues Bundled Services Providers Cost centers driving profit centers business models Competitive MRO supply chain Generate revenues MRO Services Providers Exchange programs offering por specific components/sub-components Specific technology for nose to tail support Low cost R&O services Charging framework: T&M, Field Consultancy, etc… Generate revenues
  17. 17. 17 Five Strategies for Aviation MRO Supply Chain Optimization Achieve short and consistent turnaround time combining Lean Six Sigma Theory of Constraints and information (Data Science) Improve the design and planning of maintenance: Predictive- Preventive- Reactive (AHM, RCM, CBM, Data Science, etc…) Reduce inventory while increasing service level Select the right CMMS solution and maximize the value from that investment (IT MRO tool with highest ROI for your business) Design and Develop a fact-based strategic sourcing approach
  18. 18. 18 Thank You Presented by: Ramón O. Caldas Pagán E-Mail: ramon.caldas08@gmail.com Copyrighted Content

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