EmpowerMX Experts Advise MROs on New Systems for Profitability and Productivity

MROs can use new processes and productivity silos to boost efficiency and profitability, according to experts from EmpowerMX.

In a recent webinar entitled Breaking Down Silos in MRO: Improving Productivity and Profitability with Fully-Integrated Systems, Mike McClary of Aviation Week sat down with experts from EmpowerMX – an IFS Company to discuss how to address challenges in the sector.

Why do MROs need new processes?

Vice President for EMEA, EmpowerMX Hugh Revie outlined the typical processes that an MRO undergoes when taking on a new project.

He identified the various teams and individuals that take part in various stages of the procedure, such as:

• Sales team
• Contracts team
• Planners
• Supply chain team
• Support team (engineering, quality, training, etc.)
• Production team (supervisors, technicians, etc.)
• Billing

Offering more insight into the inefficiencies that MROs face, Revie said, “Technicians queuing up to the tool store, or at the material store. Most MROs have plans that are recreated after each shift, generally completed on Excel or project planning software.”

Revie continued, “Then there’s the example of the technician being able to select his own task from the board with limited controls. And finally, the technician in the middle of a task who has to leave the aircraft to go get assistance, maybe find the customer, to answer some queries.”

Revie explained, “Each of these functions or departments are operating as silos to some extent, and for MROs to effectively improve these processes, all functions need to change.”

What’s the new process MROs should use?

Revie gave an overview of the new process being recommended for managing MRO operations.

He shared, “In the model, there is only one data set that all departments or functions use to manage their specific activities. By working with a single data set that is created in real time, all departments can see the actual live situation in any aircraft that is currently being worked, who is working, what tasks have been completed, and whether the overall project is still on track for completion on time.”

Revie then provided an in-depth walkthrough of how each stage in a project’s process can change with the new guidance.

Revie said, “The starting point’s the same as the old process, with the sales of quotations. And the change in the new process is that the sales team create quotations from available data held in the central system. All those who need to know what work is being quoted for can see live activity as the proposals are built.”

“During this phase, the system, where possible, will automatically create an initial plan for the proposed work order based on the historical, actual data stored in the database,” he explained.

Revie continued, “This will enable the sales team to see exactly the resources required to complete the project at the prescribed time. Any materials required will be listed…and will be available for the supply chain team to start investigating and highlighting any potential issues.”

He added, “The sales team now have the support of the full organization, as well as all the actual historical data. The contracts team will create digital contract term terms based on all the line items in the paper contract. This will enable everyone, and especially the technicians, who need to know what can and can't be done during the execution of the work order.”

Revie also explained how contracts and planning teams will be affected, sharing, “The digital contract will monitor all activities related to the project, ensuring all work is completed exactly to the contract terms. Historical digital contracts will be kept in the central system for potential use in the future.”

He continued, “Planning have already been involved during the quotation process, but once the contract has been won, they will start fine tuning the contract and fine tuning the schedule to ensure optimal use of the technicians, the qualifications and skills and all other resources. All tasks will be flowed with a start time and expected end time. This includes all the expected findings.”

“This will be the plan that is executed by the technicians with no or minimal adjustments during the execution phase. This starts to form the new way the MRO will perform their work and builds the unique identity associated with each MRO,” Revie concluded.

Senior Director of Worldwide Implementations at EmpowerMX Roger Sixto elaborated, “Once you define your new lean processes, you will then be ready to implement the right type of MRO ID. The type of MRO ID that you will try to confirm was designed from the ground up to break down the silos and reinforce the new integrated workflows and link process.”

Revie continued explaining the new system for MROs, stating, “The support team now includes the customer who can view progress through a Customer Portal. All those involved in supporting the technicians complete the tasks will be monitoring for responsiveness and effectiveness.”

Revie added, “The supply chain team have already been involved, but as soon as they are provided with confirmation of the contract success, they can start managing all resources to ensure the project will run smoothly for the technicians. This may involve pre-ordering material with a long lead time or reserving particular tools to ensure the logistics of the tasks are completed smoothly.”

“The audit team can also start preparing a digital audit to complete necessary checks against all records. These audits will be performed automatically by the system and only pull out any of the records that may require immediate attention during the execution period by the technicians,” he noted.

Revie showcased how the new process can help technicians, sharing, “Technicians are now working on the next task that has been planned for the most efficient overall flow, as opposed to selecting any task that they want from the board that we saw previously. Any material or tooling or other support is already at the aircraft available for the technician to start the task.”

He continued, “The technicians can call on assistance from any department or the customer with a simple call, and each support department is monitored for the effectiveness in responding to the actual call.”

Sixto also shared how the team at EmpowerMX can help companies implement the new process.

He said, “We can offer—free of charge—business value assessments of your existing IT landscape, and we can have a series of workshops, usually 90 minutes long, with your subject matter experts, your leads in key areas which based on your specific work scope.”

Sixto added, “Could be areas like planning, hangar maintenance, shops, supply chain, commercial and finance. And at the start of this exercise, we can provide you with detailed demonstrations, and at the end, we can provide you with a detailed review report.”

How does the new process embrace digitalization?

One aspect of the new guidance for MRO processes most highlighted was embracing digitalization and moving away from paper-based procedures.

For example, Revie discussed the use of task cards and physical display boards.

He said, “In most heavy maintenance facilities, the display board becomes the central part of the way things have been done. The general majority is obviously companies that are in the process of moving away from paper tasks and display boards into a digital environment.”

He elaborated, “With paperless execution, task cards are closed much quicker than before. As soon as the technician completes the task, the digital audit plan starts checking the card, and any information that needs to be validated will be completed by the audit team immediately following the task closure, enabling the technician to correct any anomalies that may have been picked up by the audit team while he's still at the aircraft.”

How does the new procedure benefit MROs?

Revie named several benefits that using new lean procedures can have for MROs and their customers.

Revie stated, “Customers using this new model have indicated they have made significant savings in their audit process, finance and monitoring the project.”

He continued, “Plans will be standardized and optimized in line with resources. Support will be monitored for responsiveness, including the customer and any support who will be easily requested by production. Many tasks currently done by production will now be completed by support. Production will work with digital task cards and will now focus on direct work on the aircraft and provide full visibility and transparency.”

“Audits will be automated and will be completed immediately when a task has been closed, enabling any corrections to be easily rectified. Invoicing will be created with all supporting data and automated where possible. Data will be reviewed after each project has been completed, ensuring accuracy of all data is maintained.”

“Some MROs are achieving greater than 100% billable time against the working time that technicians are on site,” said Revie.

“The period of transformation to increase productivity would be around 10% during the first year of that implementation. After the change from the old system to the new system, once the processes are fully embedded, that should rise quickly to 30 or higher…and that's going to increase the percentage that's down here up by 30%, but that's active, productive time on the aircraft, and all of your turnaround time (TAT) has been reduced,” Revie concluded.