Date post: | 27-May-2015 |
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HOW IT WORKS THE AEROSPACE AND AVIATION MRO SUPPLY CHAIN?
LEADERSHIP ● INTEGRATION ● COLABORATION ● VALUE ● I NNOVATION-PRODUCTIVITY ● SOLUTIONS
Presented by: Ramón O. Caldas Pagán
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SUPPLY CHAIN FOR AEROSPACE INDUSTRY
Manufacturing/ Assembly
OEM
Aerospace & Defense Industry
MRO
From 4 to 6 Million parts in an aircraft
More than 3 Billions parts procured per year
More than 20,000 suppliers
Global airline will triple for 2032
Total Support - One Stop Solution
More than a half are narrow bed aircrafts
Spend Budget of $1,734 Billions
The A&D sector will need to place
a much higher focus on
improving supply chain
integration.
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What is MRO?
M Maintenance
R Repair
O Overhaul
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THE ERP MISMATCH
Capital Assets
M & RProducts SalesInventory
In the Service Delivery Management environment, Products become Capital Assets to the Buyer
ManufacturingMRO
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AIRFRAME HEAVY MAINTENANCE SUPPLY CHAIN
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Global Civil Line Maintenance Supply
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MRO Supply Chain Challenges
Lack of Functions Integration
Source: Infosys Global MRO Market Economic Assessment
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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
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MRO Supply Chain ChallengesWarehouse 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
Min
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Inv
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Do
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MRO Supply Chain Challenges
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
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MRO Supply Chain Challenges
Solution: Asset Information Model
Asset Information Model
Work Management Supply Chain Management
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MRO Supply Chain Challenges
Inventory Management Complexities
RFID and GPS tags integration cut costs and time, improve inventory track, accuracy, reduce inventory levels and monitors assets condition.
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MRO Supply Chain Challenges
Fragmented Supply Base
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MRO Supply Chain Challenges
Complex Procurement Processes
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Gartner’s RequirementsInter-related Work and Supply Chain Needs
• 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.
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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
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Five Strategies for Aviation MRO Supply Chain OptimizationAchieve 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