Head Base –Kelowna, BC
BC Supply Chain Council Briefing19 November 2009
Managing the Supply Chain inthe Aircraft MaintenanceIndustry
Bryan AkerstreamMaterials ManagerKelowna Flightcraft Ltd
Agenda
• History• Organization• Business Streams• Geography• Supply Chain Challenges• Supply Chain Solutions• ERP Drivers• ERP Strategic Benefits• ERP Status• Questions
Kelowna Flightcraft was founded in1970 by Barry Lapointe and Jim
Rogers. They identified that therewas a niche market opportunity in
the Okanagan for an aircraftmaintenance company. Theircompany initially performed
inspection checks, maintenance andother various tasks on assorted
small aircraft throughout theOkanagan from the back of a truck.
History
Our Company
KelownaFlightcraft
Ltd.
OntarioFlightcraft
Ltd.
KelownaFlightcraft
R&DLtd.
KelownaFlightcraftAir Charter
Ltd.
KelownaFlightcraft
Leasing Ltd.
Allied WingsProperties
Inc.
Allied WingsF.W. Inc.
Allied WingsProject
Holdings Inc.
Allied WingsInc.
Allied WingsHoldings Inc.
Business Streams
• Maintenance, Repair & Overhaul• Internal• 3rd Party
• Modifications• Avionics• Winglets• Conversions
• Convair OEM• DND SAR
• CC115 Buffalo• CC138 Twin Otter
• Flt Ops• DC10-30• 727-200• Convair 580, 5800
• Allied Wings• Grob 120A• King Air C-90B• Bell 206, 412
Heavy maintenance checks Winglet installationsCargo door installations Avionics modifications
Convair type certificate holder Fire TankersHoneywell avionics dealer Passenger & Cargo Charter
Boeing narrow bodies (727,737,757) Dash 8Convair 340,440,580,5800 Astra 1124 & 1125
Piston/turbine powered light aircraft Cessna CitationEngineering services NDT services Paint Services
Composite services Line maintenance supportField maintenance technical support Aircraft planningAPB approved vendor Bridging maintenance program
Technical review Aircraft Sales and LeasingHeavy maintenance checks Winglet installationsCargo door installations Avionics modifications
Convair type certificate holder Fire TankersHoneywell avionics dealer Passenger & Cargo Charter
Convair 340,440,580,5800 Astra 1124 & 1125Piston/turbine powered light aircraft Cessna Citation
Boeing narrow bodies (727,737,757) Dash 8Cargo door installations Avionics modifications
Honeywell avionics dealer Passenger & Cargo Charter
Our Locations
Primary Maintenance FacilitiesKelowna, British ColumbiaHamilton, Ontario
Satellite BasesVancouver, British ColumbiaCalgary, AlbertaSaskatoon, SaskatchewanWinnipeg, ManitobaThunder Bay, OntarioMontreal, QuebecHalifax, Nova ScotiaSt. John’s, Newfoundland
Legend
Allied Wings Military TrainingCenterPortage la Prairie, Manitoba
Seattle
Phoenix
New York
St. Louis
Atlanta
U.S.A.
CANADA
Supply ChainRole
• Vision
• Provide materials support that exceedsour customers expectations
• Mission
• Support our customers’ operationsthrough timely, cost effective materialssupport
Supply ChainChallenges
• Manual Systems• Paper flow backed by dated database• Difficult to analyze/troubleshoot• Errors cost
• Exponential Growth• Capacity• Experience
• 3000+ Suppliers• Aging fleet/diminishing sources• Quality expectations
Supply ChainChallenges
• Diverse Customers• Diverse Needs/Expectations• Diverse AC Configurations• Multiple Aircraft Types• Multiple Stocking Philosophies• New Age/Old Age Mix
Supply ChainSolutions
• Strategic Planning• Where are we trying to go?• How do we get there?• How do we measure progress?• Continuous Improvement
• Supplier rationalization• Strategic supplier agreements• Consolidation of repair vendors• Performance management
• Continuous Improvement• Integration
• Lawson M3 (ERP) implementation
StrategicPlanning
•Status: Ongoing• Completed:
• Vision• Mission• Environmental Assessment• SWOT
• Next: Objectives• Benefits:
• Team Building• Developing Priorities• Common goals• Evolving focus
SupplierRationalization
• Strategic supplier agreements• AGI• M&M Aerospace• Aviall• Grand & Toy• Unifirst ??
• Consolidation of repair vendors• Status• Focus
• Performance management• Delivery• Cost
ContinuousImprovement
• Re-organization• Focus on materials management• CI driven
• Purchasing Process• Stock priorities
• Re-located Receiving• Improved process flow• Decreased distractions
• Separated/Integrated Receiving/QC• Philosophy: Techs in the “box”
• Materials Cages• Challenges
ERP Drivers
• Growing Complexity in the Business• Long term IT strategy required• Accurate info required to support growth• Current system beyond capacity• Mitigate labour market shortage• Monitor contractual PIF
ERP StrategicBenefits
• Improved control of the business• Meet requirements of DND contracts• Competitiveness• Enable growth: scalable processes/systems• Alignment with industry trends• Future value of business
MM PerformanceCommitment
• What:• 95% Time Definite Delivery Standard• 24 hour to action and have visible req
status• Reduce inventory by $500K per year (3 yrs)
• How:• Improved purchasing efficiency• Integrated system – visibility• Improved analysis
ERP Status
• Acceptance testing delayed• Development on-going• Issues:
• Actual costing of Rotables• Fleet management• Version management
• Goal• Re-start Acceptance testing• Begin implementation Jan/Feb 2010• Implementation plan: flexible
Thank You
Partnered with A.P.B. for Boeing 757-200 / 300 Winglet Installations
Tel: (250) 491-5519Fax: (250) 765-2140www.flightcraft.ca
Bryan Akerstream, Materials Manager
Back-up slides
Our Facilities
• Line Maintenance• Aircraft Painting• Modifications• NDT Services
• Purolator Courier Operations• Heavy Maintenance• Mechanical & Structural• Overhaul Shop• Avionics
• 200,000 sq. ft. of hangar space• 30,000 sq. ft extension in 2008• 5 Hangars
Our Facilities
• 35,000 sq. ft of hangar space• Over 230 employees• Purolator Courier Operations• Heavy Maintenance Checks• Mechanical & Structures• NDT Services• Line Maintenance• Aircraft Painting• Can accommodate wide and
narrow body aircraft
Our Facilities
• 160,000 sq. ft. of hangar space,shops and offices
• 100 experienced staff• Services the Canadian Forces
flight training program• Operates 30 aircraft
(fixed/rotary)• Two full flight simulators
Landing Gear Overhaul
•Complete Landing Gear Repair
•Complete Overhaul
•Disassemble, Strip, Inspect &
NDT Testing .
•Plating Processes are utilized,
including Hard Chrome, Dull &
Bright Cadmiums Plate,
Anodize, Alodine and Nickel
Plating.
•Capable of OD and ID Grinding
•All performed by Certified
Technicians.
Component / Overhaul
•Rotables
•Hydraulics (including test benches)
•Fuel Supply & Control
•Cables & Flight Controls
•Structures Components
•Mechanical Components
•Avionics Components
•Wheels & Brakes
Our Experience
PrivatAir Boeing 737-800 PATS Aux. Tank install and LOPA change.
Flair Air Boeing737-400 Avionics Mods/upgrades, Bridging Inspections and
LOPA changes
Aviation Partners Boeing 757-300 Winglet Prototype.
NAC 737-200 LAP Seam Mod, Scribe Line Inspections, C Checks and Gravel Kit
Installations.
Chartright MD87 Aux Fuel Tank SFAR 88 Compliance
NWA Boeing 757-200 Winglet Installations and various Avionic & Interior
Modifications.
Iceland Air Boeing 757-200 Winglet Installations and Boeing 767-200 Bridging
Checks.
Vulcan Air Boeing 757-200 VIP aircraft C-Checks.
Sunwing Charters Boeing 737-800 Line Maintenance Contract in Toronto.
CanJet Airlines Boeing 737-500 C-Checks.
Sierra Pacific Boeing 737-200 C-Checks.
UPS Boeing 757 Line maintenance in Toronto, Hamilton & Montreal.
Dallas Mavericks Boeing 757-200 and Boeing 767-200 Avionics and Interior
Modifications
Our Achievements
KFL Notable Achievements
Convair Type Certificate Holder of 240/340/440
Partnered with A.P.B. for Boeing 757-200 / 300 Winglet Installations
Joint Venture with Conair Aerospace to build and maintain CV580 Air Tankerfor Fire Fighting role.
With Dugan Air Technologies, jointly created Quiet Wing System Stage 3 STCfor Boeing 727 aircraft.
Created drawing package and won Bolivian Military approval for T33 Avionicsupgrade and overhaul program, (different avionics upgrade program fromCanadian Military aircraft).
Created STC to Stretch CV580 by 14 feet using two 7 foot plugs and upgradeto avionics to an EFIS flight deck.
Created STC for a 122 inch cargo door for installation on CV580 aircraft
KFL Notable Achievements
Convair Type Certificate Holder of 240/340/440
Partnered with A.P.B. for Boeing 757-200 / 300 Winglet Installations
Joint Venture with Conair Aerospace to build and maintain CV580 Air Tankerfor Fire Fighting role.
With Dugan Air Technologies, jointly created Quiet Wing System Stage 3 STCfor Boeing 727 aircraft.
Created drawing package and won Bolivian Military approval for T33 Avionicsupgrade and overhaul program, (different avionics upgrade program fromCanadian Military aircraft).
Created STC to Stretch CV580 by 14 feet using two 7 foot plugs and upgradeto avionics to an EFIS flight deck.
Created STC for a 122 inch cargo door for installation on CV580 aircraft