AMTE 415

MAINTENANCE PLANNING AND CONTROL

ENGR. JABES A. ISOLI

INSTRUCTOR
 LESSON 7
MATERIAL PLANNING
 ORGANIZATION AND FUNCTION OF MATERIAL
 Material Planning is one of the key units within the
airline’s maintenance and engineering organization.
 It is an integral part of the maintenance and engineering
organization with oversight by accounting and finance for
expenditure.
 ORGANIZATION AND FUNCTION OF MATERIAL
 The functions of material planning are:
a) To provide parts and supplies for all aspects of the M & E
operations.
b) To maintain adequate supplies of these items on hand
and in convenient locations for quick access by
maintenance.
c) To provide adequate support to the maintenance
organization within reasonable budget constraints.
 MATERIAL MANAGEMENT
 Material, inventory, stores and logistics managements
primary function is to understand the logistics and scope
of aviation inventory management.
 These responsibilities includes:
a) Concerns about replenishment of stored parts.
b) Cost of inventory.
c) Forecasting of new and in house available inventory.
d) Realistic and physical space of the inventory.
e) Replenishment of minimum and maximum repair parts.
f) Returns and defective parts.
 MATERIAL MANAGEMENT
 These responsibilities includes:
g) Bogus parts.
h) Knowing the supply network and its demands.
i) On going process of utilizing aircraft parts.
 Material and other items needed on daily basis require a
sophisticated maintenance support operation.
 Material management positions may vary depending on
the airline’s operation.
 MATERIAL MANAGEMENT
 Material management determine the inventory needed
based on:
a) Fleet size
b) Parts utilization
c) Parts reliability
d) Vendor’s repair capability and turn around time
 STORE MANAGEMENT
 Its responsibilities are to have continuous contact with
the following:
a) Aircraft manufacturer.
b) Parts overhaul vendors.
c) Aircraft parts suppliers.
d) Vendors of hardware and software.
 MATERIAL MANAGEMENT
 Material management relies on five (5) areas in the
organization as:
a) Inventory Control.
b) Stores
c) Purchasing
d) Shipping
e) Receiving
 INVENTORY CONTROL
 Refers to a continual effort to supervise the supply,
storage, and accessibility of aircraft parts.
 It is the responsibility of the inventory control to ensure
that all necessary parts and supplies are on hand and
available at selected locations throughout M & E.
 Their purpose is to support all maintenance activities by
having adequate supply of parts and parts storage, not
being OVER or UNDER supplied, and avoiding any aircraft
on ground (AOG).
 INVENTORY CONTROL
 Inventory control monitors the following:
a) Raw Stock Material.
b) Component Repair Orders in process.
c) Keeps an accurate count of stock on sight.
d) Assures the availability of airworthy parts.
 The monitoring of the inventory system helps to keep
costs low which means that when the supply of a part
goes to its minimum target the part is ordered before it
drops to a critical level if AOG will cost more than the
normal price of the part.
 STORES
 Is responsible for issuing parts to and exchanging parts
with the mechanics.
 Is responsible for delivering parts to the work centers as
necessary and ensuring that parts and supplies that
require special storage and handling property managed.
 It routes repairable units to the appropriate maintenance
shop.
 PURCHASING
 Is responsible for the procurement of all parts and
supplies used by M & E.
 They deal mainly with suppliers and manufacturers,
attending to such things as cost, delivery, etc.
 Purchasing has primary budget control in material and
works closely with finance on expenditures and budget
matters.
 PURCHASING and INVENTORY CONTROL worked
together to AVOID AOG situations because the parts(s)
purchased in the AOG situation will be EXPENSIVE.
 PURCHASING and STORES DEPARTMENT worked
together on aircraft PARTS PURCHASES, WARRANTY, and
MODIFICATION due to COST and BUDGET.
 SHIPPING AND RECEIVING
 Considered as one of the busiest places in aviation stores
and logistics.
 They normally handle all packing and unpacking of parts
and supplies coming into and out of the airline.
 They maintain the ability to handle any inspections that
might needed relative to the shipment or receipt of
goods.
 SHIPPING AND RECEIVING
 Required qualified personnel and management since they
also send and receive dangerous goods.
 It has a responsibility to make sure that the container in
which dangerous goods will be shipped is sufficient and
the paper work is filled out correctly according to the
company’s dangerous goods policy.
 They must know the segregation process for items such as
flammable, corrosive, and temperature sensitive items as
required by the Manufacturer’s Material Safety Data
Sheet (MSDS).
 SUPPORT FUNCTIONS OF MATERIAL
 The support functions can be stated briefly as:
a) Parts Ordering
b) Parts Storage
c) Parts Issue
d) Parts Control
e) Parts Handling
 The first four (4) involve mainly parts and supply, while
the last (handling) involves the movement of parts
between the various facilities concerned.
 PARTS ORDERING
 Ordering of parts includes the initial provisioning when
new equipment and systems become part of the fleet.
 It includes reordering whenever supplies on hand drop
below a certain level.
 The components on hand and the quantity needed for
day to day operation is determined by
a) Flight schedule (number of hours and cycles flown
b) Stage length
c) Flight environment
d) Fleet
 PARTS ORDERING
 The location of where the maintenance is done also
affects the stock levels that causes necessity on additional
parts and supplies at several stations to facilitate
maintenance.
 PARTS STORAGE
 Storing of parts is the next material function to consider.
 There are two (2) concepts that must address here
a) Putting every part where it can readily be located and
issued when needed.
b) Storing certain parts under specified conditions.
 The latter category includes proper storage of fuels,
lubricants, paints, oils, and other flammable and
perishable items. Oxygen bottles and oxygen systems
required special handling and storage.
 PARTS STORAGE
 The basic or standard storage arrangement is the
traditional array of storage shelves or bins, marked by a
coordinated system so that every part has a location and
each location is easily found.
 Stores facilities is required to handle expensive and
delicate parts, and proper storage must be available due
to sensitive nature of some parts.
 The stores department requires lots of space and volume
due to the amount of shelving and bins needed.
 PARTS STORAGE
 Stores facility areas are subdivided into sections for the
convenience of stores personnel:
• Quarantine area
• Flammable, hazmat, and refrigeration area
• Serviceable, non-serviceable, and red tag parts area
• Parts issue and return area
• Parts receiving inspection area
 PARTS CONTROL
 It is necessary to track flight hours, flight cycles, calendar
time, and location of parts that are designated as “time-
limited” parts.
 Controlling of parts that goes to and from internal
maintenance organizations, vendors, or outside repair
contractors and warranty holders is the primary control
function of the material but with additional control
requirements.
 PARTS HANDLING
 Sometimes referred to as “shipping and receiving”.
 Procedures on handling parts
• Handling begins with receipt of parts and supplies and
involves, in some cases, an incoming inspection by the
quality control to ensure that the part is the correct one.
• Parts can be identified by part number, serial number,
modification status, serviceability, and expiration date.
• After the parts receipt and inspect, the parts are distributed
to the proper place – stores, hangars, line, shops, etc.
• Computer records must be updated.
 MATERIAL REQUIREMENTS PLANNING (MRP)
 Is a time phased priority planning technique that
calculates material requirements and schedules supply to
meet demand across all products and parts in one or
more plants.
 Information Technology plays a major role in designing
and implementing MRP systems and processes as it
provides information about manufacturing needs as well
as information about inventory level.
 MRP techniques focus on optimizing inventory.
 OBJECTIVES OF MRP
 The main theme of the MRP is “ Getting the right
materials to the right place and time.”
 Specific organizational objectives often associated with
MRP design and implementation and may be identified
among three dimensions, namely: inventory, priorities
and capacity.
 OBJECTIVES OF MRP

DIMENSIONS OBJECTIVE SPECIFICS

• ORDER THE RIGHT PART
INVENTORY • ORDER THE RIGHT QUANTITY
• ORDER AT THE RIGHT TIME
• ORDER WITH THE RIGHT DUE DATE
PRIORITIES
• KEEP THE DUE DATE VALID
• PLAN FOR A COMPLETE LOAD
CAPACITY • PLAN FOR A ACCURATE LOAD
• PLAN FOR AN ADEQUATE TIME TO VIEW FUTURE LOAD
 PURPOSE OF MRP
 Valid for those situation where the product must be
produce in accordance to its master schedule.
 From the master schedule we are going to determine the
detailed schedule for raw materials and components to
be procured.
 METHODOLOGY OF MRP IMPLEMENTATION
 MRP represents an innovation in the manufacturing
environment.
 Effective implementation requires explicit management
action.
 MATERIAL REQUIREMENTS PLANNING (MRP)
 The following are the four (4) pieces of information that is
used by MRP system determine what should be ordered
and when:
1. Master Production Schedule – which describes when
each product is scheduled to be manufactured.
2. Bill of Materials – which list exactly the parts or materials
required to make each product.
3. Production cycle times and material needs per cycle
4. Supplier lead times
MATERIAL REQUIREMENTS PLANNING (MRP)
 MATERIAL REQUIREMENTS PLANNING (MRP)

Overall view of the inputs to a Standard Material Requirement Program

and the report generated by the program
 MATERIAL REQUIREMENTS PLANNING (MRP)
 The MPS and BOM indicates what material should be
ordered.
 The MPS, Production cycle times and Supplier lead times
jointly determines when orders should be replaced.
 MASTER PRODUCTION SCHEDULE (MPS)
 The specific schedule of individual products and models
that is derived from the aggregated production plan.
 It includes quantities of products to be produced at a
given time period.
 Quantities are included both at aggregate and detailed
levels.
 Aggregated quantities may refer to monthly production.
 Detailed quantities may refer to weekly or daily
production.
AGGREGATED QUANTITY LEVEL
DETAILED QUANTITY LEVEL
 MASTER PRODUCTION SCHEDULE (MPS)
 The MPS takes the form of a table in which rows
represents products and columns represents time
components. Entries of the table map to units of each
product to be produced at a given time period.
 The MPS includes three categories of items:
1. Firm customers orders
2. Forecasted demand
3. Spare parts
 BILL OF MATERIAL (BOM)
 It gives information about the product structure, parts
and raw material units necessary to manufacture one unit
of the product of interest.
BILL OF MATERIAL (BOM)
 BILL OF MATERIAL (BOM)

The diagram shows a view of all the materials use to create a particular
product.
 LEAD TIMES
 Refers to scheduled delivery of end products must be
translated into time phased requirements of components
and materials.
 Types of lead times includes:
1. Ordering lead times – time phase between purchase
requisition and receipt from vendor.
2. Manufacturing lead times – time phase between order
release and completion.
 MRP OUTPUTS
1. Planned order release
• Purchase Orders – to buy raw materials and parts
• Work Orders – to make parts and products
2. Report of planned order releases in future periods
3. Rescheduling notices
4. Cancellation notices
5. Inventory status reports
6. Performance reports
7. Exception reports
8. Inventory forecasts
 MRP BENEFITS
1. Reduction in inventory
2. Quicker response to changes in demand
3. Reduce setup and change over costs
4. Better machine utilization
5. Improved capacity to respond to changes in master
production schedule
6. Aid in developing the master schedule