MRO Business
Summary
Aviation Academy
—
Faculty of Technology
—
Amsterdam University of Applied
Sciences
,Content
WEEK 1 .......................................................................................................................................................5
LECTURE 1.1 ENGINE PLANNING MANAGEMENT........................................................................................................................... 5
Bird ingestion: effects for the airline .................................................................................................................................. 5
Engine Planning ................................................................................................................................................................... 5
High Thrust Rating Engine vs Low Thrust Rating Engine ............................................................................................... 5
Major elements of the long term engine planning ............................................................................................................. 5
Maintenance Reserves.......................................................................................................................................................... 6
ENGINE MAINTENANCE MANAGEMENT (S. ACKERT) .................................................................................................................... 7
Technical Drivers of Off-Wing Maintenance ..................................................................................................................... 7
Commercial Considerations of Off-Wing Maintenance .................................................................................................... 9
Lessor & Lessee Considerations of Off-Wing Maintenance .............................................................................................. 9
Flight Hour Agreement (FHA) Programs ........................................................................................................................ 10
WORKSHOP 1.............................................................................................................................................................................. 10
LECTURE 1.2 AIRCRAFT LEASING AND CONTRACTS ...................................................................................................................... 11
Contractual Obligation ....................................................................................................................................................... 11
Aviation Leasing .................................................................................................................................................................. 11
Type Aircraft Leasing......................................................................................................................................................... 12
Financial Lease vs Operational Lease .............................................................................................................................. 12
Direct purchase ................................................................................................................................................................... 13
Purchase costs ..................................................................................................................................................................... 13
Characteristics of operating leases ................................................................................................................................... 13
Operating lease costs .......................................................................................................................................................... 13
Buy vs Lease ........................................................................................................................................................................ 14
Factors Influencing the Leasing Industry ........................................................................................................................ 14
Contracts with customers .................................................................................................................................................. 14
WEEK 2 ..................................................................................................................................................... 15
LECTURE 2 GAS TURBINE ENGINE MAINTENANCE MANAGEMENT PROGRAM ..............................................................................15
KLM E&M Engine Capabilities ...........................................................................................................................................15
Maintenance Concepts ........................................................................................................................................................15
Shopvisit Proces & Workscoping ........................................................................................................................................ 17
Post Repair Activities ......................................................................................................................................................... 19
Rotating Structures & Life Limited Parts ......................................................................................................................... 19
Reliability metrics............................................................................................................................................................... 20
Key Performance Indicators & Cost Control .................................................................................................................... 20
Engine Availability Management ..................................................................................................................................... 21
Logistics: engine transportation ....................................................................................................................................... 21
Engine Operation and On Wing Monitoring ................................................................................................................... 21
List of abbreviations ........................................................................................................................................................... 22
WORKSHOP 2 ............................................................................................................................................................................. 22
WEEK 3 ..................................................................................................................................................... 25
LECTURE 4.1 DIRECT MAINTENANCE COST (DMC) .................................................................................................................... 25
What is aircraft maintenance and why should an aircraft be maintained? ................................................................. 25
Factors influencing aircraft maintenance costs: ............................................................................................................. 25
Direct Maintenance Cost (DMC) ....................................................................................................................................... 26
FH/FC impact on aircraft maintenance cost ................................................................................................................... 26
Maintenance Costs Drivers Organized ............................................................................................................................. 26
Scheduled Maintenance ..................................................................................................................................................... 27
Unscheduled Maintenance ................................................................................................................................................. 27
On-condition Maintenance (MSG 2 & 3 philosophy) ....................................................................................................... 27
Condition monitoring(msg 2 philosphy improved upon with msg 3) ............................................................................ 27
Hard Time Components (MSG 2 philosophy, improved with MSG3) ............................................................................ 27
DMC based on age .............................................................................................................................................................. 27
Direct Operating Cost (DOC) Breakdown ........................................................................................................................ 28
Direct Maintenance Cost (DMC) is 12% of the Direct Operating Cost (DOC) ............................................................... 28
Engine cost drivers ............................................................................................................................................................. 29
Engine cost factors ............................................................................................................................................................. 29
Engine shop visit drivers.................................................................................................................................................... 29
MRO Business summary PAGINA 2
, Most expensive engine parts .............................................................................................................................................. 30
WORKSHOP 3 (4) ....................................................................................................................................................................... 30
LECTURE 4.2 MAINTENANCE RESERVE & MAINTENANCE COST .................................................................................................. 31
Maintenance Reserves........................................................................................................................................................ 31
Maintenance Reserve Events ............................................................................................................................................. 32
Maintenance Reserves covers… ......................................................................................................................................... 32
Maintenance Reserve Payment Mechanisms ................................................................................................................... 32
Examples of a MR Events .................................................................................................................................................. 33
Maintenance Reserves Terms ............................................................................................................................................ 33
How to decrease and achieve the lowest possible DMC cost from a maintenance point of view ................................ 33
Various Maintenance options ............................................................................................................................................ 34
OEM, PMA, Salvage/Scavenge and Bogus parts ............................................................................................................. 34
Block Checks or Equalized maintenance? ......................................................................................................................... 35
Equalized maintenance (advantages/disadvantages) .................................................................................................... 35
WEEK 4 ..................................................................................................................................................... 35
LECTURE 5.1 FLEET SELECTION .................................................................................................................................................. 35
AirFrance-KLM Fleet Policy .............................................................................................................................................. 35
Corporate fleet as single interface between market and KLM ....................................................................................... 36
Fleet planning and Network Planning are directly connected to all central strategic airline functions .................... 36
GREAT aircraft ................................................................................................................................................................... 36
Network and Fleet Planning Goals ................................................................................................................................... 36
Fleet Planning ..................................................................................................................................................................... 37
OEM Marketing .................................................................................................................................................................. 37
Payload Range diagram: the ‘weights mechanics’ .......................................................................................................... 37
History, Trends & Facts ..................................................................................................................................................... 38
Simplicity............................................................................................................................................................................. 38
Final step: Contracting ...................................................................................................................................................... 39
Remarketing ....................................................................................................................................................................... 39
WORKSHOP 4 (5) ....................................................................................................................................................................... 39
LECTURE 5.2 AIRCRAFT PHASE IN/OUT ..................................................................................................................................... 40
Phase In process ................................................................................................................................................................. 40
Transfer into operation (Seller to New operator) ........................................................................................................... 40
Parties involved .................................................................................................................................................................. 40
Difference FAA and EASE .................................................................................................................................................. 41
The Rough Process .............................................................................................................................................................. 41
Pre-Buy inspection ............................................................................................................................................................. 42
Go-Ahead ............................................................................................................................................................................. 42
Bridging............................................................................................................................................................................... 42
Required paperwork .......................................................................................................................................................... 43
Acceptance........................................................................................................................................................................... 43
Summary ............................................................................................................................................................................. 43
WEEK 5 .................................................................................................................................................... 43
LECTURE 6.1 AIRCRAFT ASSET MANAGEMENT AND VALUE APPRAISAL ....................................................................................... 43
Asset Management ............................................................................................................................................................. 43
Aircraft Value Determination ............................................................................................................................................ 44
Full Life Concept Calculation ............................................................................................................................................. 45
Important factors for aircraft type selection ................................................................................................................... 46
Negotiating & Purchasing an aircraft process: ............................................................................................................... 46
Aircraft inspection & what to look for .............................................................................................................................. 46
WORKSHOP 5 (6) ....................................................................................................................................................................... 47
LECTURE 6.2 MRO AND AIRLINE FINANCIALS ........................................................................................................................... 47
Alpha trading Balance Sheet ............................................................................................................................................. 47
4 Methods Investment Decisions ....................................................................................................................................... 48
Cash Flow & Profit .............................................................................................................................................................. 48
Accounting Payback Period ............................................................................................................................................... 48
Accounting Rate of Return ................................................................................................................................................. 49
Economic payback period .................................................................................................................................................. 49
Net Present Value ............................................................................................................................................................... 49
WEEK 6 .................................................................................................................................................... 49
LECTURE 7 LEAN IN MRO .......................................................................................................................................................... 49
MRO Business summary PAGINA 3
, Important in a line/base maintenance environment ...................................................................................................... 49
Impact on inefficient MRO on business itself ................................................................................................................... 49
F1 Pit Stop example ............................................................................................................................................................ 50
LEAN – Process Improvement .......................................................................................................................................... 50
LEAN Thinking ................................................................................................................................................................... 50
On Waste (MUDA) .............................................................................................................................................................. 50
LEAN boils down to .............................................................................................................................................................51
Overview of LEAN ‘stuff’ in the toolkit ...............................................................................................................................51
5S .......................................................................................................................................................................................... 52
Poka Yoke ............................................................................................................................................................................ 52
Why making existing processes better? ............................................................................................................................ 52
Six-Sigma ............................................................................................................................................................................ 52
Elements of continuous improvement............................................................................................................................... 54
JIDOKA ................................................................................................................................................................................ 54
KAIZEN ............................................................................................................................................................................... 54
Poka Yoke and Mistake Proofing ...................................................................................................................................... 55
Standard work .................................................................................................................................................................... 55
WEEK 7 ..................................................................................................................................................... 55
LECTURE 8 MRO IT APPLICATION ............................................................................................................................................. 55
MRO Organizations............................................................................................................................................................ 55
MRO IT systems .................................................................................................................................................................. 55
What does ad MRO IT system do? .................................................................................................................................... 55
Line Maintenance Task with SAP (Specialist/best of breed MRO application) MRO system ...................................... 56
SDLC Phases........................................................................................................................................................................ 57
WORKSHOP 7 (8) ....................................................................................................................................................................... 57
WEEK 8.................................................................................................................................................... 58
LECTURE 9.1 AIRFRAME COMPOSITE INSPECTION MATERIAL AND REPAIR (NDT METHODS FOR COMPOSITE AIRCRAFT) .............. 58
The purpose of NDT ............................................................................................................................................................ 58
Roles and responsibilities................................................................................................................................................... 58
Approved Data .................................................................................................................................................................... 58
NDT Methods ...................................................................................................................................................................... 59
Physics of NDT .................................................................................................................................................................... 60
Challenges in NDT .............................................................................................................................................................. 60
WORKSHOP 8 (9) ....................................................................................................................................................................... 60
Phased Array ...................................................................................................................................................................... 60
Thermal ............................................................................................................................................................................... 60
MRO Business summary PAGINA 4
Summary
Aviation Academy
—
Faculty of Technology
—
Amsterdam University of Applied
Sciences
,Content
WEEK 1 .......................................................................................................................................................5
LECTURE 1.1 ENGINE PLANNING MANAGEMENT........................................................................................................................... 5
Bird ingestion: effects for the airline .................................................................................................................................. 5
Engine Planning ................................................................................................................................................................... 5
High Thrust Rating Engine vs Low Thrust Rating Engine ............................................................................................... 5
Major elements of the long term engine planning ............................................................................................................. 5
Maintenance Reserves.......................................................................................................................................................... 6
ENGINE MAINTENANCE MANAGEMENT (S. ACKERT) .................................................................................................................... 7
Technical Drivers of Off-Wing Maintenance ..................................................................................................................... 7
Commercial Considerations of Off-Wing Maintenance .................................................................................................... 9
Lessor & Lessee Considerations of Off-Wing Maintenance .............................................................................................. 9
Flight Hour Agreement (FHA) Programs ........................................................................................................................ 10
WORKSHOP 1.............................................................................................................................................................................. 10
LECTURE 1.2 AIRCRAFT LEASING AND CONTRACTS ...................................................................................................................... 11
Contractual Obligation ....................................................................................................................................................... 11
Aviation Leasing .................................................................................................................................................................. 11
Type Aircraft Leasing......................................................................................................................................................... 12
Financial Lease vs Operational Lease .............................................................................................................................. 12
Direct purchase ................................................................................................................................................................... 13
Purchase costs ..................................................................................................................................................................... 13
Characteristics of operating leases ................................................................................................................................... 13
Operating lease costs .......................................................................................................................................................... 13
Buy vs Lease ........................................................................................................................................................................ 14
Factors Influencing the Leasing Industry ........................................................................................................................ 14
Contracts with customers .................................................................................................................................................. 14
WEEK 2 ..................................................................................................................................................... 15
LECTURE 2 GAS TURBINE ENGINE MAINTENANCE MANAGEMENT PROGRAM ..............................................................................15
KLM E&M Engine Capabilities ...........................................................................................................................................15
Maintenance Concepts ........................................................................................................................................................15
Shopvisit Proces & Workscoping ........................................................................................................................................ 17
Post Repair Activities ......................................................................................................................................................... 19
Rotating Structures & Life Limited Parts ......................................................................................................................... 19
Reliability metrics............................................................................................................................................................... 20
Key Performance Indicators & Cost Control .................................................................................................................... 20
Engine Availability Management ..................................................................................................................................... 21
Logistics: engine transportation ....................................................................................................................................... 21
Engine Operation and On Wing Monitoring ................................................................................................................... 21
List of abbreviations ........................................................................................................................................................... 22
WORKSHOP 2 ............................................................................................................................................................................. 22
WEEK 3 ..................................................................................................................................................... 25
LECTURE 4.1 DIRECT MAINTENANCE COST (DMC) .................................................................................................................... 25
What is aircraft maintenance and why should an aircraft be maintained? ................................................................. 25
Factors influencing aircraft maintenance costs: ............................................................................................................. 25
Direct Maintenance Cost (DMC) ....................................................................................................................................... 26
FH/FC impact on aircraft maintenance cost ................................................................................................................... 26
Maintenance Costs Drivers Organized ............................................................................................................................. 26
Scheduled Maintenance ..................................................................................................................................................... 27
Unscheduled Maintenance ................................................................................................................................................. 27
On-condition Maintenance (MSG 2 & 3 philosophy) ....................................................................................................... 27
Condition monitoring(msg 2 philosphy improved upon with msg 3) ............................................................................ 27
Hard Time Components (MSG 2 philosophy, improved with MSG3) ............................................................................ 27
DMC based on age .............................................................................................................................................................. 27
Direct Operating Cost (DOC) Breakdown ........................................................................................................................ 28
Direct Maintenance Cost (DMC) is 12% of the Direct Operating Cost (DOC) ............................................................... 28
Engine cost drivers ............................................................................................................................................................. 29
Engine cost factors ............................................................................................................................................................. 29
Engine shop visit drivers.................................................................................................................................................... 29
MRO Business summary PAGINA 2
, Most expensive engine parts .............................................................................................................................................. 30
WORKSHOP 3 (4) ....................................................................................................................................................................... 30
LECTURE 4.2 MAINTENANCE RESERVE & MAINTENANCE COST .................................................................................................. 31
Maintenance Reserves........................................................................................................................................................ 31
Maintenance Reserve Events ............................................................................................................................................. 32
Maintenance Reserves covers… ......................................................................................................................................... 32
Maintenance Reserve Payment Mechanisms ................................................................................................................... 32
Examples of a MR Events .................................................................................................................................................. 33
Maintenance Reserves Terms ............................................................................................................................................ 33
How to decrease and achieve the lowest possible DMC cost from a maintenance point of view ................................ 33
Various Maintenance options ............................................................................................................................................ 34
OEM, PMA, Salvage/Scavenge and Bogus parts ............................................................................................................. 34
Block Checks or Equalized maintenance? ......................................................................................................................... 35
Equalized maintenance (advantages/disadvantages) .................................................................................................... 35
WEEK 4 ..................................................................................................................................................... 35
LECTURE 5.1 FLEET SELECTION .................................................................................................................................................. 35
AirFrance-KLM Fleet Policy .............................................................................................................................................. 35
Corporate fleet as single interface between market and KLM ....................................................................................... 36
Fleet planning and Network Planning are directly connected to all central strategic airline functions .................... 36
GREAT aircraft ................................................................................................................................................................... 36
Network and Fleet Planning Goals ................................................................................................................................... 36
Fleet Planning ..................................................................................................................................................................... 37
OEM Marketing .................................................................................................................................................................. 37
Payload Range diagram: the ‘weights mechanics’ .......................................................................................................... 37
History, Trends & Facts ..................................................................................................................................................... 38
Simplicity............................................................................................................................................................................. 38
Final step: Contracting ...................................................................................................................................................... 39
Remarketing ....................................................................................................................................................................... 39
WORKSHOP 4 (5) ....................................................................................................................................................................... 39
LECTURE 5.2 AIRCRAFT PHASE IN/OUT ..................................................................................................................................... 40
Phase In process ................................................................................................................................................................. 40
Transfer into operation (Seller to New operator) ........................................................................................................... 40
Parties involved .................................................................................................................................................................. 40
Difference FAA and EASE .................................................................................................................................................. 41
The Rough Process .............................................................................................................................................................. 41
Pre-Buy inspection ............................................................................................................................................................. 42
Go-Ahead ............................................................................................................................................................................. 42
Bridging............................................................................................................................................................................... 42
Required paperwork .......................................................................................................................................................... 43
Acceptance........................................................................................................................................................................... 43
Summary ............................................................................................................................................................................. 43
WEEK 5 .................................................................................................................................................... 43
LECTURE 6.1 AIRCRAFT ASSET MANAGEMENT AND VALUE APPRAISAL ....................................................................................... 43
Asset Management ............................................................................................................................................................. 43
Aircraft Value Determination ............................................................................................................................................ 44
Full Life Concept Calculation ............................................................................................................................................. 45
Important factors for aircraft type selection ................................................................................................................... 46
Negotiating & Purchasing an aircraft process: ............................................................................................................... 46
Aircraft inspection & what to look for .............................................................................................................................. 46
WORKSHOP 5 (6) ....................................................................................................................................................................... 47
LECTURE 6.2 MRO AND AIRLINE FINANCIALS ........................................................................................................................... 47
Alpha trading Balance Sheet ............................................................................................................................................. 47
4 Methods Investment Decisions ....................................................................................................................................... 48
Cash Flow & Profit .............................................................................................................................................................. 48
Accounting Payback Period ............................................................................................................................................... 48
Accounting Rate of Return ................................................................................................................................................. 49
Economic payback period .................................................................................................................................................. 49
Net Present Value ............................................................................................................................................................... 49
WEEK 6 .................................................................................................................................................... 49
LECTURE 7 LEAN IN MRO .......................................................................................................................................................... 49
MRO Business summary PAGINA 3
, Important in a line/base maintenance environment ...................................................................................................... 49
Impact on inefficient MRO on business itself ................................................................................................................... 49
F1 Pit Stop example ............................................................................................................................................................ 50
LEAN – Process Improvement .......................................................................................................................................... 50
LEAN Thinking ................................................................................................................................................................... 50
On Waste (MUDA) .............................................................................................................................................................. 50
LEAN boils down to .............................................................................................................................................................51
Overview of LEAN ‘stuff’ in the toolkit ...............................................................................................................................51
5S .......................................................................................................................................................................................... 52
Poka Yoke ............................................................................................................................................................................ 52
Why making existing processes better? ............................................................................................................................ 52
Six-Sigma ............................................................................................................................................................................ 52
Elements of continuous improvement............................................................................................................................... 54
JIDOKA ................................................................................................................................................................................ 54
KAIZEN ............................................................................................................................................................................... 54
Poka Yoke and Mistake Proofing ...................................................................................................................................... 55
Standard work .................................................................................................................................................................... 55
WEEK 7 ..................................................................................................................................................... 55
LECTURE 8 MRO IT APPLICATION ............................................................................................................................................. 55
MRO Organizations............................................................................................................................................................ 55
MRO IT systems .................................................................................................................................................................. 55
What does ad MRO IT system do? .................................................................................................................................... 55
Line Maintenance Task with SAP (Specialist/best of breed MRO application) MRO system ...................................... 56
SDLC Phases........................................................................................................................................................................ 57
WORKSHOP 7 (8) ....................................................................................................................................................................... 57
WEEK 8.................................................................................................................................................... 58
LECTURE 9.1 AIRFRAME COMPOSITE INSPECTION MATERIAL AND REPAIR (NDT METHODS FOR COMPOSITE AIRCRAFT) .............. 58
The purpose of NDT ............................................................................................................................................................ 58
Roles and responsibilities................................................................................................................................................... 58
Approved Data .................................................................................................................................................................... 58
NDT Methods ...................................................................................................................................................................... 59
Physics of NDT .................................................................................................................................................................... 60
Challenges in NDT .............................................................................................................................................................. 60
WORKSHOP 8 (9) ....................................................................................................................................................................... 60
Phased Array ...................................................................................................................................................................... 60
Thermal ............................................................................................................................................................................... 60
MRO Business summary PAGINA 4
