Why A Last Minute Delivery System Can Save You Thousands

Have you ever heard of the dust thief? This thief is born in your warehouse and waits for the right time to attack. He attacks slowly, without notice. He waits for you to turn away and strikes without notice.

When you first purchase expendables for your aircraft maintenance needs, the thief is born. Maybe something changed where you no longer need the material you procured. After several months the thief gets older and begins to steal the cash value of your inventory.

The longer your inventory sits on the shelf, the more money you spend having to maintain it.

Nobody want's this dust thief in their warehouse, me included.

The less you spend on items that could be stowed away for years the more you'll have to fund your operations.

Now who wouldn't want more of that?

JIT Inventory, The Money Saver

Now imagine getting rid of all your unwanted, unused surplus material. You would free up inventory space for the components that matter most, free up staff having to maintain the unused surplus and reduce your holding costs.

The Just In Time inventory concept allows you to receive expendables as you need them. Since you'll be consuming the material immediately, you'll save thousands on unwarranted spending. Here are the 3 major ways you save:

1. Frees Up Your Inventory - If you have unwanted material taking up space then you'll either have to find additional space for new material or get rid of the excess. If you didn't have excess material taking up space you could down size your warehouse and save thousands on lease payments, mortgages and / or building maintenance costs.

2. Minimize Holding Cost - When you really sit down and think about it, how much does your unused material cost you? Think of the rent for the required space; equipment, materials, and labor to operate the space; insurance; security; interest on money invested in the inventory and space, and other direct expenses. Holding cost adds up doesn't it?

3. Eliminate waste - Now this can be the most troubling because the dust thief takes your expendables and literally throws them in the trash. Once your life limited expendables and consumables reach their expiration point, they're done. Wasted. The same goes for obsolete components. Once the manufacture comes out with an upgrade, the component is no longer of value to you, even on your shelf.

Managing inventory consumption is a strategy that can save you thousands if done right. Stock the important stuff and take in the expendables and consumables as you need them. The best way to do this is to utilize a JIT inventory system backed by the support of your competent suppliers.

P.S. Would you like to discuss the JIT solution we have ready for you? Click here

Why Just In Time Inventory Is Right For You

In a world of torque wrenches and bolts the relationship between aircraft maintenance planning and suppliers is becoming more important by the day.

In the not so distant past we were managing a client's heavy check. In the middle of the project we were requested to supply the expendables for the entire project. This was in addition to the rotables we were already managing. Now, as you know, nothing ever goes entirely as planned. We scrambled, stressed and got the job done but situations like this make the planning process paramount to successful aircraft maintenance check projects.

Last minute procurement and poor forecasting can be costly. It costs more money and time, both being scarce.

The solution to this madness is the Just In Time (JIT) inventory concept.

JIT is a production strategy where you can improve your organization's bottom line by minimizing in-process inventory and carrying costs.

Have you ever thought about the total cost of waste on your shelves because you bought too much material or they're now obsolete or expired?

Just In Time inventory for your expendable needs

Raw materials, such as expendables and consumables, are an integral part of your maintenance processes but they can be costly sitting on the shelf at undesired times. Or even worse, you don't have enough spares available for your maintenance needs. You then have to procure your expendable needs on an AOG basis, increasing cost, stress and the time you spend on the project. Both scenarios are bad.

Just In Time inventory is a strategy you may want to consider to have the raw material available only when you need it. The material arrives and is immediately consumed by your maintenance needs. Reducing inventory and processing time.

Benefits of a JIT system

A buffer of inventory can be extremely comforting but it's also very costly. Once you start holding excess expendables in inventory you begin locking away cash needlessly. These items can be lost, damaged or become obsolete over years of unnecessary storage. They occupy valuable space that you could further use towards your operation.

One of the greatest benefits of the JIT system is it allows you to carry low inventory. You receive the material as you need it, just in time. There's no need to write off large inventories. You consume it when you need it, skipping the inventory process.

Another benefit of a JIT system is the reduction of waste. If material goes beyond its expiration date, corrodes or becomes unusable the cost of material rises. By eliminating waste you control cost.

A third key benefit to the JIT process is high quality production. Since you'll only be dealing with suppliers whom you trust, they will understand your needs and make sure quality is of utmost importance. This will eliminate rejected parts through your quality control process and quicker consumption rates for your aircraft maintenance planning.

JIT, stakeholder relationships and aircraft maintenance planning

The Just In Time inventory strategy is useless without a strong relationship with your supply chain. Providing your suppliers with material consumption forecasts and what you expect from them is crucial to a successful JIT relationship. By tapping into your suppliers to fulfill needs that could cost you millions is an ideal scenario.

This entire process is an evolution of change. As you begin to work with suppliers through you JIT strategy improvements will be made and cooperation will become tighter.

Aircraft maintenance planning can be costly but unnecessary spending is avoidable. With excess inventory comes excess cost, so why not receive goods just in time for consumption? By tapping into strong relationships with your supplier you'll know what parts are needed, when they're needed and receive them as needed.

If you have out of control raw material costs, a JIT strategy may be exactly what's needed for your aircraft maintenance planning needs.

P.S. If you would like to discuss our Just In Time Inventory program, contact sales today.

Why Six Sigma Is Essential To Reducing Your Aircraft Maintenance Cost

You and I can agree that accurately forecasting aircraft maintenance cost is a job for a mathematician. From statistical analysis and exponential smoothing to extrapolation and the econometric forecasting, it's a world of its own. Did reading those terms bore you? I nearly fell asleep just typing them.

While focusing on your aircraft maintenance cost, there is one proven method that can help regain control of cost variation and waste.

The method which I'm talking about is Lean Six Sigma.

This methodology is known all over the world so I can be safe to say that I don't have to define it here. Instead let's discuss it's implication and how it can help you control your maintenance activities.

Key Principles of Lean Six Sigma And Your Aircraft Maintenance Cost

Lean Six Sigma is a proven method for improving your maintenance efficiency and effectiveness. Here are 6 principles to follow when implementing Lean Six Sigma:

-Identify your value stream and how the work gets done. -Manage, improve and smooth the process flow. -Remove waste. Non-Value-Added steps increase cost. -Reduce variation by managing by fact. -Involve the right people in the process who are fully equipped. -Engage in improvement activities in an organized way.

These 6 principles are vital to a successful Lean Six Sigma team. The key is to reduce waste and focus on value added activities. If a technician is running around to multiple projects, there is a possibility they may miss an important aspect of the inspection. This was mentioned in our last article.

In order to accomplish this, you must also implement a framework that can help with this process.

For improving activities in your maintenance processes you'll need to employ the useful framework of DMAIC.

Use DMAIC In Lean Six Sigma

To undergo improvements in regards to your aircraft maintenance processes utilizing Lean Six Sigma, you will need to use the framework of DMAIC.

Define: All projects start with a problem. This problem needs to be defined and everyone involved knows their role. Think about why you're doing this project and what you're trying to achieve.

Measure: The Define stage is what you "think" the problem is. Through the measure stage you'll need to be clear by coming up with how the work gets done and how well once finished.

Analyze: Now that you have an understanding of what is happening, it's imperative to find out why. Never jump to any conclusions. Manage by fact and narrow down to the best possible causes. Once the possible causes are identified you can pinpoint the root cause.

Improve: Now that you've identified the process and the problem, here is where you identify a solution to the root cause. Come up with various ideas and select the best one. Once the best one is selected, test it out.

Control: You need to control the gain you're trying to achieve. Come up with a control plan so the process is carried out consistently.

Utilizing DMAIC is imperative to the success of your Lean Six Sigma and cost control endeavors. Here is an easy way to identify your wastes.

Meet Tim Woods

In order to be successful at reducing your waste, you must first identify it. Use the acronym Tim Woods to achieve this.

T: Transport – Moving people, products & information I : Inventory – Storing parts, pieces, documentation ahead of requirements M : Motion – Bending, turning, reaching, lifting

W: Waiting – For parts, information, instructions, equipment O: Over production – Making more than is IMMEDIATELY required O: Over processing – Tighter tolerances or higher grade materials than are necessary D: Defects – Rework, scrap, incorrect documentation S: Skills – Under utilizing capabilities, delegating tasks with inadequate training

By utilizing Lean Six Sigma within your aircraft maintenance process you'll ensure that the varying cost can be reduced in one aspect or another. Don't let wasteful process deplete your bottom line. I encourage you to implement the Lean Six Sigma way and to reduce aircraft maintenance costs throughout your organization.

It may seem difficult at first but it'll save you from days which you result to hair pulling, screaming and banging your fist on the floor. Your goal is efficiency and less stress.

P.S. We can help you control your WOODS waste. We would love to talk about your needs so contact us today by clicking here.

Where do you see waste in your aircraft maintenance process?

How To Avoid Your Aircraft C Check Blues

Your aircraft C check is a big project. To most it may seem planned and straightforward but you and I know that's far different from reality.

It's not just a scheduled maintenance check. It's a group of planned undertakings that involve multiple parties, departments and partners depending on what strategy you've adopted.

While your aircraft undergoes it's C check there are many things running through your mind and just as many decisions to be made.

Who's responsible for the project? Are certain activities outsourced or is everything being accomplished internally? What about component support? Do you let the MRO supply components at inflated prices or do you supply your own? Are there contingency plans in place?

Most of these questions should be answered prior to the aircraft arriving at the maintenance hangar but it's always good to review and see what areas are causing problems.

Nothing ever goes to plan. Here are few tips to avoid aircraft C check problems:

Decision Making

Set roles and boundaries: By setting roles and boundaries, internally or externally, accountability can be achieved. This doesn't mean job descriptions, this means a collaborative effort for specific projects. Dedicate one person as the team lead.

Minimize decision making: Delegate all tasks that aren't a part of your core function and eliminate wasteful time spent on decision making to someone else.

Use a project management system: By using a project management system you can collaborate internally and with your partners in one easy interface. You'll be able to see what's getting done, where you're behind and who's taking on what role all in one place. This is also a great way to collaborate with your MROs and support partners.

Create a work flow diagram: By creating a work flow diagram you'll see what's supposed to be done at every stage of the aircraft C check process. Nothing will be overlooked.

Maintenance Support:

Utilize a component support partner: By utilizing a component support partner you'll avoid the costly inflation and labor costs MROs put on components. Your component support partner will take this specific role off your MRO, or you, and streamline the process.

Stream line logistics: A lot of money is spent shipping components from many different vendors from around the world. If you choose to use an aircraft C check component support partner, everything will be consolidated from one facility.

Maintain cost integrity: Don't let component parts inflate beyond a reasonable point, otherwise you're spending more money than necessary. Your component support partner will be able to manage this for you.

Establish trust: When dealing with anybody, make sure trust is established. The more you have trust in someone, the more you can delegate to them.

Your aircraft C check can be a stressful endeavor. Once you streamline processes, outsource specific tasks to trusted partners and avoid inflated mark-ups the less stressed you'll be.

With support you can achieve a reasonable amount of sanity.

What issues do you encounter with your aircraft C checks?

How To Delegate And Increase Your Bottom Line

Have you ever wondered why there isn't enough time in the day? From aircraft component procurement, repair orders, aircraft maintenance checks, aircraft parts supplier approval, the list seems to never stop.

There isn't enough time in the day to get everything done by yourself.

It's natural, human and you shouldn't beat yourself up over it. Sometimes I look at my calendar, then my daily task list and want to scream.

I know exactly how you feel, but the solution is right in front of you.

Delegation

You've probably heard of this term before but we all too often ignore it.

[dropshadowbox align="center" effect="lifted-both" width="400px" height="" background_color="#537ec2" border_width="1" border_color="#dddddd" ]"The act of empowering to act for another and or a group of persons chosen to represent others."[/dropshadowbox]

Delegation is a tool you can use to take advantage of focusing on the bigger picture and getting results, rather than the tedious work of buying hundreds of components for an aircraft maintenance check.

Imagine this:

You have 100 parts to procure and you'll need to purchase, repair, ship and receive in these 100 parts. You can take on these tasks by yourself, completing each and every step from start to finish (I know it already sounds stressful).

Or you can delegate these tasks to a trusted partner, like your aircraft parts supplier. They can do everything.  You just have to sit back and receive the items in as they arrive.

They key here is trusted partner

Utilizing this concept of delegation allows you to focus on other areas. Think about how much  time it costs you  to follow-up and manage 100 purchase orders.

The costs get daunting don't they?

Why Would You Ever Choose Delegation?

Delegation gives you the freedom to focus your skill sets in more areas. You don't have to drown in daily tasks. The more tasks you have the more likely something will get overlooked.

Being able to delegate tasks makes you more efficient and the more efficient you are the more money you'll save.

And just between you and me, the more time you have for yourself the less stressed you'll be.

How To Start Delegating With Your Aircraft Parts Supplier

This step is simple.

Call, email and / or Skype your aircraft parts supplier and tell them that you would like to discuss delegating the component procurement process.

State what you're looking for, your needs and how you expect things to be done.

As projects get underway keep an open line of communication so they know exactly what you want. As time passes you will begin to feel the weight lifted off your shoulders and put directly on theirs.

Which is a good thing!

Delegating can be scary at first. Whether you're delegating tasks to an aircraft parts supplier, or a colleague, it will feel odd at first. However, I speak from experience when I say delegating is a HUGE relief.

You can't expect to do everything. It's not fair to you. If there are people who can help, use them. They just may have more experience in a given area and may be better for the task, whatever it may be.

What are your biggest frustrations with the feeling of not having enough time? Comment Below. We would love to hear from you.

4.5 Reasons You Should Avoid Your Aircraft Parts Supplier

Is the accessibility of your aircraft parts supplier making you go nuts? In a world where everyone is reachable, it amazes me that an industry full of "we're available 24 hours a day with an AOG line"  it's still hard to get a hold of someone regardless if it's AOG or not.

From not picking up the phone or responding to an email, to no extended hours and lunch times the last 2 hours, it's MADNESS!!!!! Are these aircraft parts suppliers serious? Some times I just want to reach through the phone and…

No client deserves this but it happens too frequently.

Below are 4.5 reasons you should avoid your aircraft parts supplier because their ACCESSIBILITY is horrific:

1) No Extended Hours

9:00AM - 5:00PM is all you get. If you plan on calling or emailing at any time before or after these hours, you'll just have to wait. Most of the time, you'll try contacting these aircraft parts suppliers at 4:45PM and they've already left for the day.

What does that say to you? It says they don't care and provide no value added service. As a client, you want accessibility. Most of the time you have an aircraft to keep in the air, or a $100,000 part that you've paid for and want to make sure your money is okay. Security is necessary and I know how you feel.

Many things run through your mind and accessibility is the only way to ease your thoughts.

2) 2 Hour Lunch Breaks

I know you've encountered this before. You call in to your aircraft parts supplier and you ask for "Dave". The receptionist tells you that "Dave" is out to lunch and you then ask for "Sales". She then tells you that "Sales" is out to lunch and they'll be back in 60 minutes.

Are you KIDDING me?

So no one in sales can help for 60 minutes. This tells us that they rather eat than service their clients. Yes, people have to eat but sales must rotate so the customer is taken care of in the time of need.

You deserve more than a lame "we're out to lunch" excuse. You should be able to call your account manager on their cell phone if need be, or email them with a response shortly after.

3) Odd Meeting Times

Do companies have meetings? I'm sure you answered yes. Now let me ask you as an airline, do you have meetings that restrict your aircraft from flying? Do you tell your passengers, sorry, our pilots are in a meeting we wont be able to take off for 60 minutes?

This is a common occurence with aircraft parts suppliers. You'll call at 10am and the receptionist will tell you that the entire sales department is in a meeting. So they essentially shut down their entire sales department for a meeting in the middle of the morning.

With such poor planning, we should wonder about the organization as a whole.

4) Poor Order Confirmation

Have you ever sent an order and never heard back from your supplier? You then have to call them 3 times and send 2 more emails to get a confirmation.

You just sent an order and YOU have to chase them around for confirmation. They should be happy to work with you and provide you with a superior service. Instead, they don't care and you're just another number.

.5) All Around Accessibility

You can tell you have  good aircraft parts supplier if they are willing to take your calls late at night, or email you at odd hours, especially weekends. If they care at all about building a relationship with you, your account manger should be reachable at almost every hour of the day.

Of course, you have to give them a break, but it's nice to know they're there for you no matter what.

When dealing with aircraft parts suppliers, it's important to know who is accessible throughout the day…even weekends. If they have short operating hours, crazy lunch and meeting times and don't confirm orders…STAY AWAY.

You, the customer deserves more. You deserve someone that is willing to help you all day, every day.

Have you encountered any of these issues with your aircraft parts supplier?

Does Aircraft Component Repair Keep You Up At Night?

Do you feel overwhelmed having to manage your aircraft component repair processes? This is understandable as each MRO has its way of communicating information to you, not to mention the freight costs associated with shipping to various facilities. From exaggerated mark-ups on piece parts to inflated labor rates, this can easily become a nightmare.

Just recently our repair manager dealt with an issue that I just didn't understand. One of our avionic units was sent to an aircraft undergoing maintenance to be installed. After installation, there seemed to be an intermittent issue with the avionic so we had it overnighted back to the MRO who originally performed the work. Warranty was granted. 120 days later, after having to supply another unit to fulfill the aircraft maintenance requirement the MRO sent a bill for $400+ for labor. We kindly declined this bill and after many discussions the shop decided to waive this fee. This was sneaky and if we weren't paying attention to the original warranty granted, we would have paid this. Needless to say, this MRO is no longer on our approved vendor list for aircraft component repair.

How can you avoid stressing over such issues?

By dealing with an organization who deals with repairs on a daily basis, there are key benefits they possess that you may not.

Below are 4 reason you should be using a repair management program:

1) Minimize Repair Cost

Outsourcing to one vendor that can accommodate your aircraft component repair needs can reduce your overall cost per part. Do you stock piece parts in preparation for component repairs? Do you have replacement units that can be used if your other unit goes BER? What about as removed units that can be used for piece parts for another unit undergoing repair? If the answer is no, then a repair management program may be right for you.

Why not just send all your units to one MRO? This can be answered in 3 words…KEEPING THEM HONEST. MRO facilities typically have ratings for certain repairs and can't perform the vast aircraft component repair services you're looking for. When an MRO get's an influx of repairs they can start to drag their feet and become overwhelmed and disengaged. They will also markup piece parts to make it seem as through your unit is more expensive to repair than it should be…increasing their margins.

By utilizing a repair management program, you have the ability to focus on your core competencies while a reputable company manages your repairs. In doing so they will ensure the MRO is staying honest by remaining actively engaged with them, providing their own piece parts at un-inflated rates and making sure they're not telling you one thing and doing another.

2) Minimize Shipping Cost

Many airlines deal with the overwhelming costs of shipping items for repairs, primarily throughout the United States. It's not cost effective to ship repairs from overseas to different MRO's all across the continental United States which spans 3,400 miles East to West.

You can reduce shipping cost by consolidating shipments with your repair management program provider. They should also have a network of shipping companies in which they do frequent business with, at discounted rates.

3) Leveraging High Volume Repairs

During your aircraft maintenance you can forecast your repair needs depending on what check you're going through.  If any unplanned issue arise you can then take advantage of your contingency plans but just utilizing what you have to repair may not be enough.

For example, lets say you need 5 undercarriages overhauled and made compliant with the most recent service bulletin. This will cost you roughly $6,000 per undercarriage if you send this directly to the MRO. Now, if you utilize a repair management program your 5 undercarriages may be 5 of 20 undercarriages your repair management service provider is repairing for their airline clients. This gives them significant bargaining power over the MRO. They may have negotiated a flat rate overhaul based on their volume and save you $1,000 per undercarriage, $5,000 in total.

You may have many components needed for repair in support of your aircraft maintenance, but if you combine this in addition to what the repair management program is doing for other airlines, bargaining power can increase and substantially lower your overall repair costs.

4) Established Relationships

Repair management programs have built decades of relationships with hundreds of MROs and OEMs.

While many MROs won't allow you to provide your own piece parts which can drastically increase the cost due to inflated markups, a successful repair management program has experience providing their own piece parts, numerous airline client's parts, and other vendor parts to reduce the overall cost of the aircraft component repair process.

With a successful repair management program, relationships have been built minimizing your resource consumption by utilizing the available resources through such a program. This will effectively reduce your overall cost and downtime.

The procurement of spares and the oversight of aircraft maintenance and aircraft component repair for the daily operation of an airline is often very complex and time consuming. Most of the time decisions have to be processed to upper level management which takes further time and money. Why not leave these decisions to one company?

Utilizing a repair management program will not only save you money, but also endless headaches. Repair management combined with rotable support can be a good strategy to relinquish you from the stress and miscommunication associated with repair companies.

What deciding factor would make you choose a repair management program? Comment below.