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The statements contained herein are based on good faith assumptions are to be used for general information purposes only. These statements do not constitute an offer, promise, warranty or guarantee of performance.
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Maintenance Prognostics – Digital solutions to optimize maintenance operationsJuan D. Lopez | Program Manager, Fleet and Maintenance SolutionsSeptember 2015
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General trends in aviation
Today’s business realities
Historic profitability
Lifecycle approach
Opportunities
Reduce schedule interruptions
Increase maintenance efficiencies
Digital asset management
Summary
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General trends
Operating costs high and volatile
Technology becoming a key enablerProfitability slowly improving
Traffic growth but prices declining
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Historic profitability
Historic financial environment
Source: McKinsey & Company for IATA
0
1
2
3
4
5
6
7
8
9
10
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Aviation Industry ROIC vs WACC (%)
WACC ROIC
• Weighted Average Cost of Capital
• Return on Invested Capital
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General trendsCommercial Aviation Industry Costs
Stations(~15%)
Crew(~15%)
Fuel(~40%)
M&E(~10%)
Aircraft(~10%)
G&A(~10%)
$715B
(2014 Expenses)
Increasing operating complexity
Relentless cost pressures
Legacy information systems
Enabling information-rich airplanes
Disruptive and enabling technologies
Need for real-time information
Airlines Seeking New Levels of Operational Efficiency
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Dispatch Arrival
Airplane Introduction
Airplane Transition
En Route
Maintenance
Tech logs
Health management
Airplane and engine
technical docs
Asset management
Records management
Maintenance Optimization
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Opportunities throughout the lifecycle
Reduce schedule interruptions Increase maintenance efficiencies Digital asset management
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Opportunities throughout the lifecycle
Reduce schedule interruptions Increase maintenance efficiencies Digital asset management
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Some level setting
Technical performance measures
Schedule Reliability is expressed as a percentage of scheduled revenue flights that are not delayed or
interrupted
*Includes scheduled and unscheduled downtimes
𝐴𝑖𝑟𝑝𝑙𝑎𝑛𝑒 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑖𝑙𝑖𝑡𝑦 = 1 − 𝐷𝑜𝑤𝑛𝑡𝑖𝑚𝑒𝑠 ∗
𝑇𝑜𝑡𝑎𝑙 𝑇𝑖𝑚𝑒 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒
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Maintenance strategies
Cost is an important part of the schedule reliability equation
Schedule Reliability
Cost
HIGH
HIGH
LOW
Cost
ReactivePreventive PredictiveReactive Preventive
Predictive
HIGH
LOW
Maintenance cost vs # failures Maintenance cost vs Schedule Reliability
Repair cost
Prevention
cost
Total cost
# of Failures HIGH
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Opportunity: Airplane Health ManagementProactive use of airplane data
With AHM Real time
visibilityWith AHM, faults are known in
flight and maintenance action
planned before arrival.
AHM helps airlines to maintain their fleets in the air, on schedule and reduce schedule delays
Faults are not identified until the aircraft is on the ground. Unscheduled maintenance can cause
costly delays and cancellations
Without real time visibility
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Health management goes beyond real-time visibility
Prognostic alerts for airplane systems
Abnormal
Trend
10 -11 days
Alert
GeneratedFailure
Predicting faults and minimizing operational disruption
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Airplane SystemsMultiple systems generate performance data (pressure,
temperature, etc).
Data Availability Systems transmit data to a local data bus.
Data Collection & On
Board Processing
Central data (CMC, DFDAU) funnels and collects real
time performance data.
Data TransmissionData is transmitted to ground stations via ACARS or
Satellite.
Prognostic AlgorithmsGround station receives and processes data. Thresholds
are evaluated and Prognostic alerts are developed.
Prognostics health management value driversHardware constraints
CMC: Central Maintenance ComputerDFDAU: Digital Flight Data Acquisition Unit
Data availability and transmission are key to unleash prognostics value
Data
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Example – Pneumatics System
ATA 36 Techlog reports
~80%
reduction in
rate of delay
Before
Airplane Health
Management
Post Airplane
Health
Management
implementation
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Maintenance optimization
Opportunity throughout the lifecycle
Reduce schedule interruptions Increase maintenance efficiencies Digital asset management
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How are we doing maintenance today?
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Mechanic is by the airplane …
Mechanic is by the
airplane…
…Goes to maintenance
building…
…Logs onto multiple
systems…
…Prints job cards…
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And then goes through non-value added steps…
…Double checks for the
latest revision of
manuals…
…Goes back to
airplane…
…Fixes the airplane…
…Properly documents
the fix in a
paper record…
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Couldn’t we do this better?
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M&E mobile applications
Can mobile devices help?
Mechanic is by the
airplane…
Gets the information he
needs…Fixes the airplane…
…Up to date and
compliant in all devices…
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Opportunity: Toolbox Mobile suite
Toolbox Mobile Parts
Providing part inventory queries remotely via mobile devices
Maintenance Turn Time
A productivity solution to empower mechanics by the airplane,
organize and streamline maintenance information, and improve
visibility and collaboration
Toolbox Mobile Library
Extending and optimizing Maintenance Performance Toolbox
Library for mobile use
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Records management
…Instead of paper
records…
…Go digital
And paperless…
What about tackling a large paper challenge?
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Increases efficiency of maintenance records management • Saves time and labor costs during daily operations
• Significant savings during aircraft transition events
• Avoidance of costly fines and penalties due to incomplete records and paperwork errors
Direct maintenance and engineering labor costs savings• Faster and more efficient processing of maintenance records
• Access to all technical documents at the point of need
Opportunity: Toolbox Records module
Eases the pain during airplane transitions• Complete set of back to birth delivery documents
• Consolidated file for AD notes, repairs and overhaul
• Data regarding component repair and overhaul
A digital aircraft records system that benefits operators, lessors and MROs
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Maintenance optimizationValue proposition
Opportunity throughout the lifecycle
Reduce schedule interruptionsIncrease maintenance
efficienciesDigital asset management
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Loadable Software Airplane Parts (LSAP)
~ 30 LSAPs
> 300 LSAPs
~ 100 LSAPs
LSAPs are airplane operational
software
• Designed for electronic loading without altering the
hardware
• Managed as a “part”
• Installation is independent of the hardware part number
• Controlled as part of the airplane and configuration
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Characteristics of today’s software management environment
More sophisticated avionics, requiring
more operational software (LSAPs)
Airplane operational software
distributed only via secure internet
A comprehensive ground system has to
be established to receive the LSAPs
A comprehensive suite of
configuration, management, and
utility software has to be installed
into a ground system
A maintenance laptop with the designated
security software can be used to load the
LSAPs onto the airplane
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Imagine distributing software with traditional methods
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Opportunity: LSAP Services
The ground systems and infrastructure required for setting up e-
enabling software suite and airline implementation
The e-enabling ground infrastructureSoftware
Distribution
Manager
The suite of software required for secure receiving,
managing, and loading of LSAPs from the OEM to the
airplane
The e-enabling software suite Software
Distribution
Tools
Managing of receiving, inspection, certificates, staging and
other aspects of LSAP Library and management processes
Management of LSAPsLibrary
Manager
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Dispatch Arrival
Airplane Introduction
Airplane Transition
En Route
Maintenance
ELBPilot/Cabin Reports
Maintenance
ReleaseHosted SolutionsLoadable Software
Data Hosting Services
AHMFault Forwarding
Predictive Alerting
& Prioritization
ToolboxTech documents
Task Cards
Authoring
Structural Records
Digital Records
Mobile Mechanic Tools
Digital Records
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SummaryTechnology solution decisions come down to a financial business case
Incremental Cost
Of
Solutions
Incremental
Benefit Of
Solutions
Cost/Benefit Analysis
Each operator defines the right balance in the cost/benefit scale
FUTURE
Data Transmission Costs.
Incremental Labor to monitor
health monitoring systems
PRESENT
Hardware retrofits to enable
data availability (sensors, etc).
Hardware mobile device costs
Infrastructure costs
FUTURE
Reduced Unscheduled
interruptions
Maintenance Efficiencies
Digital Asset management
Cost Benefit
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