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Case Study MRO Automated Tool Management at HAECO


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Xerafy, the global leader and innovator of Gen2 passive UHF RFID metal tags, has been selected by Hong Kong Aircraft Engineering Company (HAECO), one of the world’s leading independent aircraft engineering and maintenance companies, to implement full tool management solutions and prevent occurrences of Foreign Object Detection (FOD).

HAECO selected Xerafy because of strong referrals from the aviation industry as well as the strong market experience and capabilities the company has demonstrated in RFID tool tracking management for MRO and FOD.

HAECO provides maintenance, repair and overhaul (MRO) services for more than 200 aircrafts each year. Since its inception in 1950, the company has continuously grown to become one of the largest players in the fast-growing global aircraft MRO market, value in excess of USD 67 billion. Over the next ten years, the Asia Pacific and China market will see the fastest and largest global MRO demand growth and spend.

With MRO companies eager to increase efficiency and productivity, HAECO’s Patrick Wong, Executive General Manager, Line Services and his teams leveraged their operational experience and best practices to identify how combining data and technology can deliver significant improvements.

Each MRO company’s mechanics use their own tools and toolboxes, and at the end of each shift the mechanics have to conduct a full inventory to ensure that they didn’t leave any tools on the aircraft. This process is typically done manually, which is both inefficient and inaccurate. The manual process can also result in duplicate or lost data, as well as inaccuracies in the tool tracking database.

The project team’s vision was to automate the inventory process using a solution with a user-friendly system interface and technology that could incorporate existing tooling and toolboxes without additional investment in new equipment. “We needed a solution that would deliver inventory checks with a single scan, quickly and with 100 percent accuracy” Wong said. “The interface had to be easy-to-use, while the wide variety of tools to track meant we wanted the flexibility to be able to tag tools and devices of any size.”

The pilot project was completed in November 2017 at HAECO’s Hong Kong main operations site, with a full tracking solution involving a mobile app connected to the company’s back-office system, to track and trace 3,200 tools using handheld RFID readers.

Using Xerafy’s solution, HAECO has reduced inventory checks from 20 minutes to less than three minutes, an 85 percent reduction that saves 17 minutes per mechanic, per day. HAECO achieved this fast return on investment (ROI) based on the time savings alone.

In addition to making the mechanics more productive, the inventory checks are more accurate and automatically reconciled with the reports. By ensuring that tools aren’t left on the aircraft, HAECO is able to reduce the possibility of foreign object damage (FOD) to its client’s aircraft.

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Case Study MRO Automated Tool Management at HAECO

  1. 1. MRO © Credit: MRO-Network Automated Tool Management Solution A Case Study of IoT for MRO with HAECO
  2. 2. More Passengers, More Planes 3.4% MRO FACT#1 Annual growth of Aircraft over 2015-2025 According to ICF’s MRO Market Update & Industry Trends
  3. 3. 19,000 New Generation © Credit: BlockChain Land MRO FACT#2 modern, fuel-efficient aircraft to enter service over 2015-2025 Aircraft According to ICF’s MRO Market Update & Industry Trends
  4. 4. Did you know? At Boeing 4maircraft parts are sourced from 20,000+suppliers © Credit: Overblog MRO FACT #3Complex Supply Chains
  5. 5. Digitization of aircraft maintenance records © Credit: Rednewswire MRO FACT#4 Tech Adoption by Airlines Leverage on software and predictive maintenance capabilities KPMG’s Aviation Industry Leaders 2018 Report
  6. 6. Growing MRO Market $96B MRO FACT#5 Size of global MRO market by 2025 According to ICF’s MRO Market Update & Industry Trends
  7. 7. Purpose To provide greater convenience to the consumer and allow CIB to perform its functions effectively. Predictive Maintenance 66%Of MRO professionals seeing predictive maintenance technology as the most prominent by 2020 65%Of respondents indicated that airlines are best positioned to benefit from predictive maintenance MRO FACT#6In Oliver Wyman’s 2015 MRO Survey Rise of
  8. 8. FODs © Credit: Aerosweep $4BAnnual costs incurred By the aerospace industry MRO FACT#7are still a thing According to thisBoeing research
  9. 9. 90 MRO FACT#8 Paper is KING of airline maintenance documentations are on paper records% According to Aviation Week
  10. 10. Leveraging on innovation to drive operational efficiency and productivity © Credit: Albuquerque Journal MRO
  11. 11. World leader in aircraft Maintenance, Repair and Overhaul (MRO) Clients include Cathay Pacific, Jetstar, United Airlines HQ in Hong Kong, with major operations in US and Greater China $1.86 billionin revenue (2017) © Credit : Greensboro More about HAECO
  12. 12. OPERATIONAL CHALLENGES in an Aviation © Credit: Unsplash 1 2 3 4 5 6 Speed how quickly can your IoT solution scan Performance on Metal Foreign Object (FOD) risk of external object intrusion Small adapted to hand tools of any size ROI time savings MROenvironment Separation during Tools checks and inventory
  13. 13. We needed a solution that would deliver inventory checks with a single scan, quickly and with 100 percent accuracy. The interface had to be easy-to-use, while the wide variety of tools to track meant we wanted the flexibility to be able to tag tools and devices of any size. Patrick Wong Executive GM Operations Support HAECO © Credit: Unsplash
  14. 14. get the link hereHOWHAECO Automated Personal Tools Controls
  15. 15. Benefit Time Saved On Inventory Checks85% 1Time Savings ROI
  16. 16. Real-Time Real-time inventorydata © Credit: Unsplash 2Benefit Visibility comprehensive reports, sophisticated data analysis and business forecasting
  17. 17. Accuracy Automated data entry and consolidation Enhanceddata availability and reliability © Credit: Unsplash 3Benefit
  18. 18. About Xerafy Xerafy brings automation to MRO workflows for Aircraft, Railways, Military and Nuclear by enabling real-time traceability and asset management. Our technology has been distinguished by EY, Frost & Sullivan, AIconics and Red Herring. Headquartered in Singapore, Xerafy operates in the Americas, EMEA and Asia Pacific regions.
  19. 19. Purpose learn more learn more learn more MRO Automation
  20. 20. Smart ToolboxSmart Crib More about MRO Energy Aviation Aviation Railways
  21. 21.