OCTOBER 2012 TEAMSAI©2012

Improving MRO Performance

Through Process Excellence
Presented by:

David A. Marcontell
President & COO, TeamSAI, Inc.
 What does an MRO do?
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 The MRO business cycle

– Market capabilities
– Acquire contracts
– Receive products Market Acquire
– Perform Overhaul/Repair
– Receive payment and deliver
– Repeat

 The actual ‘work’ of the

process is wholly encompassed Payment
in the Perform element & Receive
Delivery
 Performance determines
– Quality
– Delivery Perform
– Cost

October 2012 TEAMSAI©2012

 Traditionally, when performance is an issue
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 We tend to do more of what we’re already doing

– Add staff, overtime, shifts
– Hold more status meetings
– Pressure staff for results

 Traditional results
– Increased cost
– Schedule impacts
– Increased defects

 We know what we’re doing…

But HOW are we doing it???

October 2012 TEAMSAI©2012

 An Alternative Approach
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 Evaluating the details of HOW we accomplish what we do can present significant

insights to our process, and illuminate opportunities for improvement
– Harnessing these opportunities releases substantial benefits to the operation

 TeamSAI’s approach combines Lean Principles with the Theory of Constraints as

a methodology for identifying the greatest opportunity for improvement
 The key elements of our methodology include:
– Performance measurement
– Training
– Rapid Improvement Events
– Creation of a Leadership System
– Equipping the organization
to carry on the effort as a
continuous improvement strategy

October 2012 TEAMSAI©2012

 Common results
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 Identification of the real obstacles to performance

– Policies, procedures, processes, methods, equipment, travel…

 Greater understanding of the real work of the organization

– Reduced waste, improved productivity

 Rapid performance improvements of 20-50% or more

– Unprecedented gains are common

 Alignment of organizations to common, corporate objectives

– Streamlined operations

 Improved morale and interdepartmental relations

– The organization becomes a more desirable place to work

October 2012 TEAMSAI©2012

 Background Case Study – Line Maintenance
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 A large air transport operation recognized a problem in its line maintenance

operations
– Delays, Deferrals, and MELs were rising
– Out of Service aircraft numbers were increasing

 Detailed assessment revealed

– Priority given to releasing the aircraft, not accomplishing planned maintenance
– Excessively long travel distances from work assignment to aircraft (2.5 miles!)
– Little standardization
– Conflicting priorities
– High variation in work assignments, frequent re-assignments
– Little effective pre-planning or materials staging
– Last minute shuffling of work packages
– Many communications systems but difficult and poor information transfer

 In short, Line Maintenance had lost focus on actually accomplishing

maintenance

October 2012 TEAMSAI©2012

 Transformation Process Case Study – Line Maintenance
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 Involved line mechanics and

leadership from all levels and
organizations
 Combined training coupled
with rapid improvement events
 Systematically moved through a series of
events focused on identified constraints
to Line Maintenance success
– Some short and sweet
– Some long and involved
 Each event resulted in visible, tangible improvements to the operational
efficiency of the department
 Each event improved the morale of those involved and strengthened their
resolve to continue the efforts
 With each event, the number of trained and involved employees grew
October 2012 TEAMSAI©2012
 Transformation Results Case Study – Line Maintenance
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 Significant results show the power of tapping into the workforce ‘experts’ to
improve the operation …
– 35% reduction in aircraft down time for engine change
– 60% improvement in wheel/brake change
– 80% reduction in chronic cargo area damage
– $600K annual reduction with improvements in return to stock process
– 69% improvement in technician search time for equipment
– 30-60% reduction in Engineering Authorization cycle time to support specific Line
Maintenance issues

 Improving turn-around-times and dispatch reliability means it is not necessary

to create additional spare aircraft as the fleet grows
– They can purchase one less aircraft as a result with a Net Present Value of almost $39 million
– They can also plan one less lease with a Net Present Value of just over $12 million

 Less tangible but a powerful contributor

– More energized work force
– More efficient support structure
October 2012 TEAMSAI©2012
 Background Case Study – Hangar Supply Chain
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 A commercial aircraft MRO was faced with numerous issues

– Inventory was growing, with significant expenditure on consumables and expendables
– AOG activity was high
– Despite inventory growth, hangar on-time performance was poor on high value C and D checks
– Belief was that inventory did not have a significant impact on hangar efficiency

 Initial mission
– Reduce spend and inventory growth On Time Performance

 Stretch goal 100%

Percent of Checks on Time

– Evaluate potential improvements 80%
with a C Check pilot demonstration
60%
– Shipside stores
– Pre-draw materials 40%

– Consumables
20%
– Inventory control measures
0%
– Timely part request process
A A+ B C D
– C-Check cycle time Check Type

October 2012 TEAMSAI©2012

 Transformation Process Case Study – Hangar Supply Chain
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Essential questions to achieve any significant and sustainable improvement

What to What does the How to create
change? change look like? the change?

Current State Future State Transition

Process Analysis Process Definition Planning

▪ A value stream map correlated
supply chain activity to the C
Check milestone schedule
▪ Three key root problems were
identified
▪ Each root issue required
individual analysis to identify
effective resolution
▪ Analysis developed in concert
with all process owners and
users to obtain buy-in
▪ Categorized and prioritized
plans with schedules were
developed to track
accomplishment of the
changes required

October 2012 TEAMSAI©2012

 Pilot Project Details Case Study – Hangar Supply Chain
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 Pre-draw and consumables  Written procedures

 Result: Engine oil change that didn't require travel and time for needed supplies

October 2012 TEAMSAI©2012

 Transformation Results Case Study – Hangar Supply Chain
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 Pilot C-check planned for 10 days was

completed in only 8 days using fewer
man-hours than normal
 Observations and feedback:
– Pre-draw accuracy 100%
– Availability of consumables greatly improved
– Operations requested additional consumable
and expendable items be available for future checks using new ‘shipside stores’ method
– Changes to inventory tracking allowed forward staging of inventory WITHOUT charge
– Charges to inventory occurring upon consumption, triggering replenishment
– The access provided by the pilot approach to pre-draw and other materials was estimated by
operations to eliminate 4 hours of wait time per a/c zone per day
– Suggestions for modifications and expansion of the pilot concepts to other check types began
arriving daily

In the course of five weeks – and with a little help –

a struggling organization transformed itself!
October 2012 TEAMSAI©2012
 Background Case Study – Engine Module Overhaul
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 In this operation, the Inlet Fan module was the pacing constraint for the entire
shop
– Initial Turn Around Time (TAT) required for module overhaul was longer than allowed for the
engine
– Build line chronically short Inlet Fan modules – direct impact to throughput
– Ten or more modules in WIP, parallel processing, high variation
– Materials nightmare of concurrent demand and uncertain priorities
– Robbing Peter to pay Paul

October 2012 TEAMSAI©2012

 Transformation Process Case Study – Engine Module Overhaul
14

 Designed and Implemented Pulse Flow Line Rapid Improvement Event

– Pulse line designed by employee blitz team
– Standard work defined for each work position
– Build to TAKT target

 WIP control mechanisms defined

– WIP caps developed based on TAKT and Flow

 Developed Visual Status to help shop control production flow

 Co-located support staff to improve response to issues

WAS IS
October 2012 TEAMSAI©2012
 Transformation Results
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 Fixed work scope defined for each station

– Eliminated ambiguity of daily work scope
– Visual status indicated by position, details on area status boards for all to see

 Improved material flow and control

– Parts and materials unique to each station work scope kitted and delivered to a specific location
– Reduced material demand from 10 parallel WIP locations to 1 at the serial work position,
dramatically reducing stores and transportation work requirements

 Dramatically improved area performance

– Priorities are clear
– Support is immediate
– Materials are available when and where needed
– Production ‘challenges’ are greatly reduced; remaining challenges greatly clarified

Since the area reconfiguration and process improvements,

Inlet Fan modules have consistently been completed ahead of the
build line’s ability to use them.
October 2012 TEAMSAI©2012
 Summary and Conclusions
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 The transformation process appears straight forward

– Know where you are
– Know where you want to go
– Plan and prepare to move
– Transform to the New condition

 Transformation itself, however, is never simple

 Our approach is designed to infuse transformation process knowledge
– Focus on the needs of the organization – Listen!!
– Collaborative involvement from start to finish – Organization must be willing to participate!!
– High level of workforce engagement – Top down and bottom up
– Consciousness of and respect for the work place culture – Differences exist for a reason
– Teach, train, facilitate, & mentor through transformation – Don’t fish, but teach how to fish
– Lead client staff to development of their own solutions – Promote ownership
– “A man convinced against his will is of the same opinion still.” ~Benjamin Franklin

 Teaching an organization transformation skills will provide ongoing returns from

the initial effort
October 2012 TEAMSAI©2012
 17

THANK YOU!

David A. Marcontell
President & COO
TeamSAI, Inc.
404-762-7257 Ext. 105
dmarcontell@teamsai.com

October 2012 TEAMSAI©2012