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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ota

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Op

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Do

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ied

up

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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

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Thank You

Presented by:Ramón O. Caldas PagánE-Mail: ramon.caldas08@gmail.comCopyrighted Content