OEM MRO Collaboration: A Case Study Gijs van Rooijen, Product Support Director, AFI KLM E&M Joe Dunne, Director, Materials Management Services, The Boeing Company 18-20 October 2016 RAI Amsterdam, The Netherlands
Agenda OEM MRO Collaboration: A Case Study What is a component service program How does the partnership work What is our partnership How does it benefit the airline How successful Key lessons
What is a Component Services Program? Supplier repairs part and returns it to the pool Airline returns unserviceable part to service provider for repair Airline requests component from pool Part request Service provider ships component within 24 hours
Key Benefits Component Services is a rotable exchange and repair service that increase efficiency in managing high-value line replaceable units.. Lower costs associated with component inventory management Components are repaired and overhauled by Boeing / AFI KLM E&M qualified providers Dedicated pool inventory ensures fast and easy access to components
Program Features It s a partnership program It s an Exchange and Repair & Overhaul Program Investment in stocks Repair activities Component Services Program Responsibilities between partners are clearly defined Each Customer has a Prime Contractor. Customer driven Clear Customer Agreement between Prime Contractor and Customer Each customer has a single point of contact Though delivered by two entities, customers enjoy seamless support Boeing Proprietary
History of the CSP programs 737MAX and NG CSP Partners: Boeing + KLM E&M Start contract: 2005 Renewal: 2015 Airplanes: 814 Customers: 25 777 CSP Partners: Boeing + AFI Start contract: 2003 Renewal: 2013 Airplanes: 286 Customers: 19 Pool locations: Amsterdam, Kuala Lumpur, London, Miami Pool locations: Paris and Singapore Recent MAX wins include TUI & Norwegian
Partnership benefits Partner Boeing Partner AFI KLM E&M Intimate knowledge of the airplane Historical airline reliability information Access to intelligent data sources and parts Worldwide support infrastructure In-depth understanding of aircraft systems Access to and understanding of Boeing proprietary components Experience in managing Component Support Programs worldwide Global fleet data Decades of experience as a 737NG and 777 airplane operator Familiarity with daily operations and airline industry challenges Experience managing component support programs for customers worldwide Data and information from a large pool of fleets Proven expertise as MRO providing highest quality repairs Reliability management based on real-time operating data from a large fleet of aircraft
Airline Benefits Superior service level performance 24-hour support Configuration management, reliability engineering and warranty management included in the program Predictable maintenance costs Program serves as an extended warranty for your aircraft Beyond Economic Repair (BER) for normal wear and tear included in the program Significantly reduces inventory requirements Accommodates aircraft lease return conditions 24-hour support
Current 737NG & MAX CSP customer base
Current 777 CSP customer base
Key Lessons Common aligned customer driven objectives Co-located program team Disciplined program governance Shared pool Leverage strengths of each party Flexibility in the service driven by customer need Regularly scheduled face-to-face operational meetings Common program IT/Systems
Thank you for your attention! Questions?