A Successful A-O-G In 1-2-3

You’ve heard it from hundreds of companies, “we have a 24/7/365 AOG service.”

It’s like throwing rocks into an ocean. Some rocks sink faster than others, and the same is true with the hundreds of 24/7 AOG service claims.

Some use the term for marketing purposes, while others have an exclusive AOG service for stock items (that’s the goal right?).

95% of all AOG services are reactive solutions. A true airline AOG service isn’t just about getting you a single aircraft component in the shortest amount of time.  It’s about much more than that. A sound AOG service focuses it's attention on preventative strategies. The true magic happens when partners (airline + component distributor) sit down and discuss proactive solutions.

Aircraft maintenance will always have it’s bouts of reactive issues, but it’s beating these issues down on the front end…before they become an AOG problem.

It’s about stopping the AOGs before they ever become an actual AOG.

Create an AOG list

Some airlines have reoccurring AOGs for the same product line, which is where safety stock plays an integral role. Others experience component failures along a statistical spread based on mean times between failures (MTBF) and mean time between removals (MTBR).

Some airlines experience AOGs for just rotables, while others experience AOGs for rotables, consumables, and expendables.

So what does this mean for you?

You’ve worked on your MEL no-go list, but every airline operation is unique. From a fleet flying around the sandy Saharan desert, to fleets flying through the blistering cold of the Alaskan frontier, every operation is different.

In order to combat your onslaught of AOGs without having to invest millions in safety stock and life limited consumables, first create your high usage AOG list.

• Rotables: Create a list of your high removal rate, no-go rotables. Of course don’t just leave it at this. If you have certain product lines that have reoccurring unplanned removals, add them to this list. This list is your rotable AOG strategy playbook. You add and remove components to this list as needed. This is your baseline analytical forecasts. They get much more complicated than this but this is a start.
• Expendable: The next tier of AOG prevention is building your high usage expendable list. When you know what expendables are consumed most frequently or are needed  most often, prepare your list.
• Consumables: The same is true for your consumable list. Create a high usage consumable list.

Do you see where I’m going with this?

Now that you’ve created a list of no-go and high usage items, you move on to the next step…

Having rotables, expendables & consumables at the right time, in the right place

Minimizing your AOG is having the right part, at the right time, in the right place…without drastically increasing you’re operating expenditure. Having inventory suck away your available cash (more on that below) is a disaster waiting to happen.

The next step is to logically think of your logistical and procurement plan. Buying material on an AOG basis is making you reactive which is unproductive. You have to plan solutions on the front end.

Here are some ideas that can be applied to the 3 lists you created in the previous section:

• Invest heavy amounts of cash for keeping your safety stock replenished (not my preferred recommendation)
• Use a pooling or PBH program so you pay for performance and limit your capital risk on inventory.
• Work with your supplier to replenish the lists you created every X (x days, x months, x quarters, etc) or based on a consumption forecast you worked on together.
• Have your supplier stock high usage material near your facility for easy access. Pay for material only as you consume it.
• Send your component partner the 3 lists you created and have them keep stock on hand.
• Have your partner create a logistical strategy to your facility. If transit time is an issue, have them propose a solution.
• Consolidate monthly reoccurring purchases to your facility, reducing expenditure and increasing material delivery.
• Have your component partner stock high-usage, high AOG probability parts at your facility. Pay for access, pay for usage.

As you can see, the strategies are limitless and they  surround your need to reduce AOGs and inventory expenditure. Your component partner is an expert (Skylink being one these of course) who will help you create these strategies.

Reducing the financial burden of preventative AOG strategies

Forget the statistics of spending $1.5M per aircraft in inventory. You make money in the air. Inventory is on the ground. Your goal is to be efficient not only with your fleet but also with your cash.

There are component distributors who specialize in inventory, that’s what they do. For you not to take advantage of this puts you at a financial disadvantage. Take JetBlue for example. They outsource everything, and are a profitable airline because of it. They’ve reduced their overhead and focused on core, money-making activities.

The same is true for you.

Come up with your 3 lists and work with your trusted partner to devise a strategy where they support your every rotable, expendable and consumable need.

It can be much easier than having to constantly react to AOGs. Be proactive and beat your AOGs on the front end.

P.S. We’ve come up with airline support strategies for all of our airline clients. Are you having an increase in AOGs? Do you want to be more proactive in your component support? Do you want to spend less money on inventory and AOG processing? Do you want more cash to support your operation? If yes, fill out the below form and let’s get started TODAY.

27 Ways To Prepare For An Aircraft On Ground (AOG)

When you hear the 3 letters, A-O-G, it makes you cringe.

Your heart rate pumps at high speeds and the frantic, I-have-to-fix-this-now mindset begins.

I agree it’s stressful, but if you'rE prepared before the AOG, it’ll make your aviation life  much easier.

That’s why I compiled this simple, yet effective list so you are prepared going into an AOG battle.

1. Have your top rotable, consumable, and expendable partner on speed dial.
2. Review a list of your past AOGs and build a theme around reoccurring part numbers.
3. Have a partner stock their inventory with your AOG components so you don’t have to.
4. Constantly review your logistical network from your top partners.
5. Delegate certain responsibilities so you can focus on the big issue.
6. Give yourself no more than 30 minutes to procure the AOG component so you can avoid unnecessary delays of indecisiveness.
7. Use a freight forwarder who knows what an AOG means.
8. Your freight forwarder should have a large route network.
9. Calculate your opportunity cost based on various options.
10. Consolidate mutliple line items to mitigate risk.
11. Keep in close contact with your top supplier so they are up to date with your operation.
12. Talk with your supplier, 24/7 via email, phone, or Skype.
13. Have face to face meetings with your top supplier so trust is continually built.
14. Prepare multiple contingencies for every AOG solution.
15. Take 10 deep breaths before making a decision.
16. Automate your AOG procurement process.
17. Reduce mass emails as this adds a level of complexity you may not see.
18. Reduce mass emails as an airline with an AOG increases market 15% - 25%.
19. Take advantage of a pooling program so you invest more on operations and less on stock.
20. Forecast your high usage consumables and utilize an On-Demand & Just In Time service so you have the items as you need them without over investing in inventory.
21. Have weekly meetings with your partners so they’re always on the same level as you.
22. Use partners that you feel are like your own internal employees.
23. Review your mean time between event (MTBE), mean time between removal (MTBR), mean time between unscheduled removal (MTBUR=MTBU), mean time between failure (MTBF) regularly.
24. Use the Pareto Analysis to pinpoint repeat issues with the biggest impact and solve them.
25. Your freight forwarder should be available 24/7.
26. Utilize GPS tracking for your high value AOG freight for piece of mind.
27. Build a friendship with your dedicated account manager.

As you can see there are  many ways to prepare for an AOG. Often times people over complicate this process and engineer complex systems that are not able to accommodate an AOG as it’s happening.

They do a great job analyzing and forecasting potential problems, but once an AOG occurs, it just needs to be resolved…by a human, using close relationships with key partners.

It’s as simple as that.

Do you take advantage of any of these AOG suggestions?

P.S. We have an AOG program that utilizes distribution networks and logistical partners all over the world. Interested? Contact your dedicated account manager here.

What AOGs And Wrinkles Have In Common

Do you ever look in the mirror and say “it must be the poor lighting?” Years of youth verifiably gone.

Smooth skin has turned into something of another form.

A form in which I’ll keep to myself so you don’t try to hunt me down.

Often times wrinkles associate with age and experience.

But is this always the case?

Is it instead a sign of constant stress, poor habits and work priorities that puts your health last?

There’s constant pressure to keep your aircraft maintenance short and to maximize cycles.

And not to mention the added pressure of AOGs.

AOGs are a recipe for wrinkles.

The wrinkle inducing AOG

Your aircraft has been grounded at your primary operating base.

The engineering department states that a hydraulic hose busted and you have no stock to replace it.

You’re instructed that the hose must be at your base for tomorrow afternoons flight.

You search the entire world but no hose is available.

One of your key partners provides you with a solution, but the 7 day lead time to assemble the hose puts you in a further predicament.

AOGs are stressful. From the time you find out about the AOG to the time the aircraft is in the air, the pressure is on.

You lose thousands of dollars every hour your aircraft is on the ground.

AOGs cause wrinkles because AOGs are stressful.

Aircraft maintenance isn’t always easy and the wrinkles you now see on your face are a product of this environment.

Stress causes wrinkles for several reasons:

• Stress damages cells which leads to premature aging
• Chronic stress contributes to an unhealthy lifestyle
• The stress hormone cortisol degrades collagen

Reduce stress, wrinkles and AOGs

Stress and aviation are not mutually exclusive.

When there’s one the other will be peaking it’s sly little head around the corner getting ready to pounce.

Sorry to break it to you but it’s completely up to you to balance the two.

From taking care of yourself and practicing time management to relying on trustworthy partners to meditation, it all plays an integral part in your wrinkle fighting, stress reducing aircraft maintenance initiatives.

Here a several ways you can reduce AOG induced wrinkles:

• Partner with people you trust and who help you solve problems, not just create them
• Have a sound logistics strategy in place
• Incorporate time management into your schedule
• Take care of your mind and body
• Meditate

Wrinkles and AOGs have one thing in common…stress. [CLICK TO TWEET]

To avoid stress you must work with reliable partners and make sure you have a take-care-of-yourself strategy.

These are the greatest ways to minimize AOGs and fine lines.

Do you have a case of “where did my wrinkles come from?” Do you have AOGs day in and day out? Comment below.

5 Ways To Have A Productive AOG

It’s 5am and you're on your way to work. You feel good. Your outfit is sharp, coffee in hand and you're ready to take on the day. With every breath of fresh air you’re excited and invigorated until…

Your Head of Engineering has a busted starter solenoid which has rendered your bird, Aircraft on Ground.

The initial feeling you get in your stomach is that of stress and anxiousness. Your feel good, great morning has now been crushed.

On standard days you would process an Aircraft on Ground requirement with a frantic hurry. Mass emails, hurried phone calls and rushed order procurement.

Hurrying in an unplanned, unorganized way will only create a flurry of issues.

A productive Aircraft on Ground

Nobody likes the deep feeling of stress in their stomach. And it’s not good for you.

To effectively tackle an AOG you must be methodical, organized and rely on quality partners.

Here are 5 ways that can help any AOG situation turn positive.

1) Organization: People have claimed that they work best with “organized chaos.” Papers are all over their desk, icons fill their desktop and they don’t know their left hand from their right. Nobody works at 100% efficiency disorganized, period. To get the most out of your AOG make sure to have all your information clear and concise. A few questions you should answer are:

• What do you need to procure and what are all the specific requirements (i.e. OEM certs, condition, FAA 8130 no less than 12 months old, etc.). This will help you communicate exactly what you need with your suppliers and reduce unnecessary back and forth communication.
• What’s the latest day I can have this at our facility? The answer to this question gives you a realistic picture if you need to overspend on shipping or if you can wait a day or two. It also helps your supplier plan.
• By what means is it going to get here? By answering this you can relay all the pertinent shipping information to your supplier so they don't have to waste time asking you. Do you need to ship this AOG air, freight, express? Is it DHL, FedEx or possibly another integrator? Does your supplier use their account or yours? You get the point.

2) Streamline your supplier list: If you normally send to 100,000 people in your email list, narrow it down to your best 2 suppliers. This will help you avoid data overflow and avoid market being stirred. Whether you want to believe it or not, when you send to a long list of people a handful are calling around to get market price which in turn artificially inflates demand and increases the current supply price.

3) Forget about price: I know, easy for me to say but hear me out. When you streamline your supplier list you avoid artificial increases in demand and support the current market price. If you use your 2 best suppliers you know for this instance they shouldn't be overpriced. This avoids precious time being wasted  going back and forth trying to negotiate price with multiple vendors. Remember being streamlined is crucial during an Aircraft on Ground situation. Haggling back and forth over market price only wastes time and time is money.

4) Evaluate a contingency plan: Lets say you buy a part from ABC company and they tell you at 4pm that they “can’t” locate their part in inventory. Do you have a contingency plan to fall back on? By having a contingency plan you have a backup for when something unexpected arises, which as you know happens often. And, on a side note your supplier should have their own contingency plan.

5) Communicate, communicate, communicate: There's nothing harder on a supplier than when an AOG situation arises and information is withheld. Your supplier then has to contact you for more information and considering the international marketplace, you may be sleeping. Share as much information as you can upfront and constantly communicate with your supplier. Effective communication will avoid misunderstandings entirely.

AOGs are bad but through effective planning you can block any obstacles thrown at you during the process.

Give an example of a recent AOG situation you were in below. I’ll analyze it and give you my opinion.