Optimized Maintenance Program (OMP)

Global Services Optimized Maintenance Program (OMP) Rebecca Merkel September 20, 2018

Optimized Maintenance Program Optimization at individual task level Customized analysis of each individual task interval Based on operator s maintenance data and operational goals Based on operator s unique environment and utilization Benefits of the Optimized Maintenance Program (OMP) Efficient and effective maintenance program Creates additional revenue operation days Reduces labor and material requirements Spare part holding costs Supports safety and reliability through establishing effective intervals for each maintenance task Increase in hangar availability 100% success obtaining regulator approval Boeing will help you maximize the effectiveness of your fleet 2

Requirements for Implementing MRB/MPD Updates Once an MRBR/MPD has been incorporated into an operators program, it is necessary that the airline maintenance programs be adjusted based on the airlines actual in-service experience. Excerpt from FAA AC 121-22C Implementing the MRBR/MPD Changes once an airline has operating experience Do not confuse the MRBR (MPD) requirements with an operator maintenance program. After FAA approval, the requirements become a base or framework around which each operator can develop its own individual aircraft maintenance program Excerpt from FAA AC 120-16F on Aircraft Maintenance Programs regulations ( 121.373 and 135.431) that require you to establish and maintain a system for the CASS of the performance and effectiveness of your maintenance program. Excerpt from FAA AC 120-79A on Continuing Analysis and Surveillance System (CASS) The maintenance schedule should be task-based and appropriately modified in accordance with the CASS data collection and analysis findings. Excerpt from EASA Annex I Part M - Subpart C - M.A. 302 Aircraft Maintenance Programme - (g) The aircraft maintenance programme shall be subject to periodic reviews and amended accordingly when necessary. These reviews shall ensure that the programme continues to be valid in light of the operating experience Excerpt from IATA Operator Task Interval Adjustment/Optimization Guidelines As service experience is accumulated, scheduled maintenance requirement intervals should be adjusted / optimized to reflect the results of actual in-service experience. 3 3

Comprehensive Data Driven Results Operator Data + Advanced Analytics Tools + OEM Engineering Assessment Task Intent / Mapping OEM Design/Cert. MSG-3 Failure Effect Task Procedure Scheduled Maintenance Log Book Component Removal Delay & Cancellation Processing Mining Categorization Customized Results OEM Backed Results Optimized Intervals Regulatory Support 4

Optimal Scheduled Maintenance Intervals System Degradation Effective Interval Evident Finding Evident Failure In-service failure resulting in operational / economic penalties Opportunity For Preventative Maintenance Latent Finding Latent Failure No immediate functional, operational, or economic impact Time T MF T SF Early Inspection No Fault Found High Probability of Unscheduled Maintenance Minimize performing maintenance too early and too late 5

Recent 737NG OMP Results vs June 2016 MPD MPD Comparison* Results % Difference from MPD Number of Tasks Below MPD (3%) SYS 13 147 282 (50-75%) 1 (25-50%) 15 STR ZON 5 63 6 44 89 148 (1-25%) 8 Equivalent to MPD (32%) 0% 254 Total 24 0 254 519 0 100 200 300 400 500 600 700 800 Less than MPD Equal MPD Greater than MPD Above MPD (65%) 1-25% 237 25-50% 63 50-75% 68 75-100% 53 100%+ 98 Total 797 *Assumes utilization: 12.6 FH/day, 6.5 FC/day Average OMP interval is 31% above MPD interval 6

OMP Compared to MPD ISC OMP Regulatory Guidance IP-44 / AC 11-22C IP-44 & IATA Guidelines MPD (ISC) Data Format Spec 2K Spec 2K Data Requirements World Fleet Sample (~18%) 100% of Customer data Task Analysis Selective Comprehensive Individual Airline Tailoring Mx. Task Packaging Customized Deliverables Regulatory Support Non-MSG-3 Task Analysis 2,000 18% Sample Multiple Operators OMP 3,000 4,000 5,000 6,000 7,000 8,000 Flight Hours 100% Data Individual Operator OMP more detailed, comprehensive using 100% individual operator data 7

OMP Customer Case Study Customer Issue Planned 777 fleet expansion Maintenance hangar space was already at capacity Increase in fleet size would require an additional maintenance hangar OMP Solution Removed a 2 YR Check from their program Moved their D Check from 8 to 9 Years 42% yearly maintenance ground time reduction 18.5% yearly Labor Reduction Removed need for additional maintenance hangar 9

Post OMP Performance Case Study 777-300ER Check Package Pre-OMP Interval (DYS) Post-OMP Interval (DYS) 0.69 0.27 Delay rate Delay rate Phase (A) 30 60 2 YR 760 Non-routine rate Non-routine rate Logbook rate Logbook rate 31.4 35.7 Removed from program C 1125 1125 2C 2250 2250 8 YR 3000 3375 Example 777-300ER OMP Performance Results (3 Years post OMP Implementation) 49.9 50.6 Pre OMP Post OMP Customer stated OMP benefit: $585M over 10 years 55% reduction for SM related delays 14% reduction in SM nonroutine findings 1% increase in SM logbook rate 0 10 20 30 40 50 60 Rates per 100 Flight Cycles 10

OMP Performance Monitoring Annual monitoring reports are provided for the 5 years after OMP implementation which assess the on-going performance of OMP changes to ensure an efficient and effective OMP. Implementation 12. Customer Feedback 13. Next Cycle Data Preparation 1. Data Collection 2. Data Classification / Mapping 3. Metrics Calculation 4. Task Alerting Reporting 8. Draft Monitoring Report 9. Internal Draft Review 10. Customer Draft Review 11. Final Report Publication Monitoring Analysis 5. Alert Confirmation 6. Task Research 7. Action Recommendation 11

Summary MPD is a starting point, Operators are encouraged to adjust Mx Program based on in-service data OMP process uses 100% of customers maintenance data Intervals are derived through mathematical modeling Design and certification requirements are considered in final recommendations OMP are customized to support Customers goals Deliverables provide detailed analysis of data to support Regulatory Approval Monitoring provides continuous review and improvement for the Maintenance Program 12