Home > aviation, business and economics, Deloitte, technology and internet > Smarter maintenance, repair and overhaul (MRO)

Smarter maintenance, repair and overhaul (MRO)

August 12, 2012

Smarter maintenance, repair and overhaul (MRO)
Source: Deloitte

A few leading airlines and MRO companies have figured out how to exploit opportunities to reduce the cost of maintenance, repair, and overhaul (MRO) operations by 8-15 percent.

What do they know that their competitors don’t?

It’s tougher than ever to perform MRO operations efficiently and effectively. From outside, material costs are rising. From inside, siloed processes, disparate systems, and data overload make it hard to coordinate the whole MRO process, from scheduling and forecasting to inventory management and replenishment. Only a few airframe, engine and component MRO companies have an approach that enables simplification, standardization, speed, and “do it right the first time” quality. But those that do are reducing total costs by 8-15 percent initially and achieving a sustainable competitive advantage with continuous improvement.

Smarter MRO

Implementing the following five strategies can help MRO organizations in their efforts to become more efficient and effective.

  • Achieve short and consistent turnaround time (TAT) using a combination of lean, Six Sigma, theory of constraints, and information
  • Improve the design and planning of maintenance
  • Reduce inventory, while increasing service levels
  • Select the right MRO IT solution and extract value from that investment
  • Craft a fact-based outsourcing strategy

The five strategies for achieving smarter MRO result in increased speed, improved reliability, and reduced costs — all at the same time. Although each of the five strategies has different impacts, when combined they affect the efficiency and effectiveness of the whole MRO function. Excellence in these five strategies represent nothing more than a fundamental transformation of capabilities.

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Categories: aviation, business and economics, Deloitte, technology and internet
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