BC Supply Chain Council Briefing 19 November 2009 Managing the Supply Chain in the Aircraft Maintenance Industry Bryan Akerstream Materials Manager Kelowna Flightcraft Ltd Head Base Kelowna, BC
Agenda History Organization Business Streams Geography Supply Chain Challenges Supply Chain Solutions ERP Drivers ERP Strategic Benefits ERP Status Questions
History Kelowna Flightcraft was founded in 1970 by Barry Lapointe and Jim Rogers. They identified that there was a niche market opportunity in the Okanagan for an aircraft maintenance company. Their company initially performed inspection checks, maintenance and other various tasks on assorted small aircraft throughout the Okanagan from the back of a truck.
Our Company Kelowna Flightcraft Ltd. Ontario Flightcraft Ltd. Kelowna Flightcraft R&D Ltd. Kelowna Flightcraft Air Charter Ltd. Kelowna Flightcraft Leasing Ltd. Allied Wings Properties Inc. Allied Wings F.W. Inc. Allied Wings Project Holdings Inc. Allied Wings Inc. Allied Wings Holdings Inc.
Business Streams Maintenance, Repair & Overhaul Internal 3 rd Party Modifications Avionics Winglets Conversions Convair OEM DND SAR CC115 Buffalo CC138 Twin Otter Flt Ops DC10-30 727-200 Convair 580, 5800 Allied Wings Grob 120A King Air C-90B Bell 206, 412
Heavy maintenance checks Winglet installations Cargo door installations Avionics modifications Convair type certificate holder Fire Tankers Honeywell avionics dealer Passenger & Cargo Charter Boeing narrow bodies (727,737,757) Dash 8 Convair 340,440,580,5800 Astra 1124 & 1125 Piston/turbine powered light aircraft Cessna Citation Engineering services CANADA NDT services Paint Services Composite services Line maintenance support Field maintenance technical support Aircraft planning APB approved vendor Bridging maintenance program Technical review Aircraft Sales and Leasing Heavy maintenance checks Winglet installations Cargo door installations Avionics modifications Seattle Convair type certificate holder Fire Tankers Honeywell avionics dealer Passenger & Cargo Charter New York Convair 340,440,580,5800 U.S.A. Astra 1124 & 1125 Piston/turbine powered light aircraft St. Louis Cessna Citation Phoenix Boeing narrow bodies (727,737,757) Atlanta Dash 8 Cargo door installations Avionics modifications Honeywell avionics dealer Passenger & Cargo Charter Our Locations Legend Primary Maintenance Facilities Kelowna, British Columbia Hamilton, Ontario Satellite Bases Vancouver, British Columbia Calgary, Alberta Saskatoon, Saskatchewan Winnipeg, Manitoba Thunder Bay, Ontario Montreal, Quebec Halifax, Nova Scotia St. John s, Newfoundland Allied Wings Military Training Center Portage la Prairie, Manitoba
Supply Chain Role Vision Provide materials support that exceeds our customers expectations Mission Support our customers operations through timely, cost effective materials support
Supply Chain Challenges Manual Systems Paper flow backed by dated database Difficult to analyze/troubleshoot Errors cost Exponential Growth Capacity Experience 3000+ Suppliers Aging fleet/diminishing sources Quality expectations
Supply Chain Challenges Diverse Customers Diverse Needs/Expectations Diverse AC Configurations Multiple Aircraft Types Multiple Stocking Philosophies New Age/Old Age Mix
Supply Chain Solutions Strategic Planning Where are we trying to go? How do we get there? How do we measure progress? Continuous Improvement Supplier rationalization Strategic supplier agreements Consolidation of repair vendors Performance management Continuous Improvement Integration Lawson M3 (ERP) implementation
Strategic Planning Status: Ongoing Completed: Vision Mission Environmental Assessment SWOT Next: Objectives Benefits: Team Building Developing Priorities Common goals Evolving focus
Supplier Rationalization Strategic supplier agreements AGI M&M Aerospace Aviall Grand & Toy Unifirst?? Consolidation of repair vendors Status Focus Performance management Delivery Cost
Continuous Improvement Re-organization Focus on materials management CI driven Purchasing Process Stock priorities Re-located Receiving Improved process flow Decreased distractions Separated/Integrated Receiving/QC Philosophy: Techs in the box Materials Cages Challenges
ERP Drivers Growing Complexity in the Business Long term IT strategy required Accurate info required to support growth Current system beyond capacity Mitigate labour market shortage Monitor contractual PIF
ERP Strategic Benefits Improved control of the business Meet requirements of DND contracts Competitiveness Enable growth: scalable processes/systems Alignment with industry trends Future value of business
MM Performance Commitment What: 95% Time Definite Delivery Standard 24 hour to action and have visible req status Reduce inventory by $500K per year (3 yrs) How: Improved purchasing efficiency Integrated system visibility Improved analysis
ERP Status Acceptance testing delayed Development on-going Issues: Actual costing of Rotables Fleet management Version management Goal Re-start Acceptance testing Begin implementation Jan/Feb 2010 Implementation plan: flexible
Thank You Bryan Akerstream, Materials Manager Tel: (250) 491-5519 Partnered with A.P.B. for Boeing 757-200 / 300 Winglet Installations Fax: (250) 765-2140 www.flightcraft.ca
Back-up slides
Our Facilities 200,000 sq. ft. of hangar space 30,000 sq. ft extension in 2008 5 Hangars Purolator Courier Operations Heavy Maintenance Mechanical & Structural Overhaul Shop Avionics Line Maintenance Aircraft Painting Modifications NDT Services
Our Facilities 35,000 sq. ft of hangar space Over 230 employees Purolator Courier Operations Heavy Maintenance Checks Mechanical & Structures NDT Services Line Maintenance Aircraft Painting Can accommodate wide and narrow body aircraft
Our Facilities 160,000 sq. ft. of hangar space, shops and offices 100 experienced staff Services the Canadian Forces flight training program Operates 30 aircraft (fixed/rotary) Two full flight simulators
Landing Gear Overhaul Complete Landing Gear Repair Complete Overhaul Disassemble, Strip, Inspect & NDT Testing. Plating Processes are utilized, including Hard Chrome, Dull & Bright Cadmiums Plate, Anodize, Alodine and Nickel Plating. Capable of OD and ID Grinding All performed by Certified Technicians.
Component / Overhaul Rotables Hydraulics (including test benches) Fuel Supply & Control Cables & Flight Controls Structures Components Mechanical Components Avionics Components Wheels & Brakes
Our Experience PrivatAir Boeing 737-800 PATS Aux. Tank install and LOPA change. Flair Air Boeing737-400 Avionics Mods/upgrades, Bridging Inspections and LOPA changes Aviation Partners Boeing 757-300 Winglet Prototype. NAC 737-200 LAP Seam Mod, Scribe Line Inspections, C Checks and Gravel Kit Installations. Chartright MD87 Aux Fuel Tank SFAR 88 Compliance NWA Boeing 757-200 Winglet Installations and various Avionic & Interior Modifications. Iceland Air Boeing 757-200 Winglet Installations and Boeing 767-200 Bridging Checks. Vulcan Air Boeing 757-200 VIP aircraft C-Checks. Sunwing Charters Boeing 737-800 Line Maintenance Contract in Toronto. CanJet Airlines Boeing 737-500 C-Checks. Sierra Pacific Boeing 737-200 C-Checks. UPS Boeing 757 Line maintenance in Toronto, Hamilton & Montreal. Dallas Mavericks Boeing 757-200 and Boeing 767-200 Avionics and Interior Modifications
Our Achievements KFL KFL Notable Notable Achievements Achievements Convair Convair Type Type Certificate Certificate Holder Holder of of 240/340/440 240/340/440 Partnered Partnered with with A.P.B. A.P.B. for for Boeing Boeing 757-200 757-200 // 300 300 Winglet Winglet Installations Installations Joint Joint Venture Venture with with Conair Conair Aerospace Aerospace to to build build and and maintain maintain CV580 CV580 Air Air Tanker Tanker for for Fire Fire Fighting Fighting role. role. With With Dugan Dugan Air Air Technologies, Technologies, jointly jointly created created Quiet Quiet Wing Wing System System Stage Stage 33 STC STC for for Boeing Boeing 727 727 aircraft. aircraft. Created Created drawing drawing package package and and won won Bolivian Bolivian Military Military approval approval for for T33 T33 Avionics Avionics upgrade upgrade and and overhaul overhaul program, program, (different (different avionics avionics upgrade upgrade program program from from Canadian Canadian Military Military aircraft). aircraft). Created Created STC STC to to Stretch Stretch CV580 CV580 by by 14 14 feet feet using using two two 77 foot foot plugs plugs and and upgrade upgrade to to avionics avionics to to an an EFIS EFIS flight flight deck. deck. Created Created STC STC for for aa 122 122 inch inch cargo cargo door door for for installation installation on on CV580 CV580 aircraft aircraft