94 research outputs found
How to achieve aircraft availability in the MRO&U triad
No full textThe financial crisis and the introduction of low-budget companies have brought major changes to the air freight community. Competition became stronger and cost control became more important. This led to new ways of organizing aircraft Maintenance, Repair, Overhauls and Upgrades (MRO&U), which became performance oriented. For the triad of participants in the maintenance process, the Original Equipment Manufacturer (OEM), the maintainers and the operator, this meant that they had to change their way of working, their processes and their culture. The focus shifted to delivering performance i.e. aircraft availability. The objective of the current research is to contribute to the development of a theory on how to achieve the performance objective aircraft availability as outcome of the MRO&U triad collaboration. This qualifies the current research as a theory building research. The outcome of the present research is a model on how to improve and optimize aircraft availability as outcome of collaboration in the aircraft MRO&U triad. This model on how to improve aircraft availability in the MRO&U process contributes to the increase of the turn-over per aircraft and hence the financial performance of airliners, as well as to the optimization of the MRO&U process. This research is therefore of interest for airline operators, aircraft maintainers and aircraft OEM’s.PIMIndustrial Design Engineerin
Lowering the Turnaround time for Aircraft component MRO services: A case study at KLM Engineering & Maintenance
No full textIn this thesis a framework is built to find flow improvement measures to lower the turnaround time for aircraft component MRO processes. This framework is tested in a case study at KLM E&M. The main research question that is answered in this research is: What flow improvement measures can be used to lower the turnaround time of components in aircraft component MRO processes such that the average turnaround time can be lowered from 21 to 10 days at KLM E&M? To create this framework, case studies of aircraft component MRO processes were analyzed. Four quantifiable characteristics were found, being: flow type, amount of repair paths, equipment criticality and the moment of work-scope determination. Afterwards applicable improvement theories were studied on these characteristics and a framework was created for aircraft component MRO process flow improvement. Hereafter, a case study process was researched using the DMAIC cycle. First of all, it is advised to introduce two new KPI's; the 'TAT-waiting time' and the 'On time start', to monitor the waiting time. Furthermore, it was found that the shop has a single piece flow, the process follows a single path, the equipment is not critical and that the work-scope is determined during the process. When these characteristics are put in the flow improvement framework, it can be seen that lean, lean in MRO and quick response manufacturing fit best for the case process. However, in the case process the work-scope determination should be moved forward to be able to plan the work better and create a pull process. The selected improvement theories were researched in more detail on flow improvement measures. By using a simulation model it was found that with a supermarket system with a capacity constraint, an increase in technician capacity, lower disruption times and amounts, it is possible to lower the total TAT of the case process to 10 days on average. It can therefore be concluded that the improvement framework works for this case. For further research it is recommended to investigate the use of other simulation software and expand the simulation model to the total component MRO supply chain. Furthermore, it is advised to test the framework on other processes within KLM E&M and at other aircraft component MRO companies.Mechanical, Maritime and Materials EngineeringTransport Engineering and LogisticsTransport, Infrastructure and Logistic
Aligning logistics with MRO to improve spare parts availability: A case study at KLM Engineering & Maintenance
No full textAircraft component maintenance, repair, and overhaul (MRO) outsourcing is a rather new phenomenon. Nowadays, component support solutions that are flexible with predictable cost are pursued. In other words, the time to restore and cost of MRO are aimed to be minimised. This research project is collaboration with one of the worlds leaders in aircraft MRO: KLM Engineering & Maintenance. Notable is the unbalanced allocation of jobs to shops due to obsolete contractual agreements, whereas the flexibility to deviate slightly from these agreements is available. Several task to shop assignment policies are developed and evaluated using discrete event simulation. The policies are an extension of the classic assignment problem and are aspired to reduce either the time to restore a component, the cost of MRO, and seek for a solution that includes both attributes. The result of the deployed experimental design is a non-dominating set of solutions where the trade-off between cost and time is clearly recognised. A policy where both cost and time are considered, with emphasis on time, results in a reduction of both performance indicators. However, other policies perform considerably better in terms of either cost or time. The established Pareto front provides a proper basis for further optimisation and depicts the choices for the MRO provider clearly
An investigation into technological change and organisational developments in glass production between the Byzantine and Early Islamic periods (7th-12th centuries) focussing on evidence from Israel
No full textRoman-Byzantine Palestine was a major producer of glass, and while Arab Conquest of the mid-7th century had no initial effect on glass production, around the 9th-10th century a critical technological change occurred with a shift to plant ash flux. This thesis answers several unresolved questions regarding the chronology, reasons for change and origins of the technology. Around 300 glass samples taken from 7th-13th century vessels were analysed by LA-ICP-MS. Vessels were well-contextualised of mainly diagnostic types and sourced from 19 excavated consumption sites across Israel. Four natron and four plant ash groups were identified. Vessel chronology suggested a decline in Palestinian production during the 8th century as evidenced by the appearance of low-soda recipes produced at Bet Eli’ezer, the import of Egypt II glass, and an influx of plant ash glass. Palestinian glass production appears to discontinue by the 9th century, followed by Egyptian production 50-100 years later. Investigation of the potential reasons for the shift to plant ash glass dismissed political instability and climatic change. Instead economic factors were highlighted, such as long-term pressures on natron supply due to competition from other industries, and rising costs due to state control of extraction and the imposition of tariffs during the 9th century. It was demonstrated that rising costs made natron no longer economically viable for glassmaking. Investigations into the origins of plant ash glass technologies suggested no clear link to Sasanian glassmaking practices, concluding that the technology was adopted from already known local practices. A centralised production model continued after the technological change, with raw glass being exported from Tyre to Palestine and elsewhere. Some vessels were also traded, such as wheel-cut bottles of Mesopotamia origin. Smaller compositional types hinted at the emergence of a non-centralised production model in Syria during the Abbasid period, but this was not conclusive
Ostuprotsesside automatiseerimine Magnetic MRO AS näitel
No full textAntud lõputöö peamiseks kirjutamise motiiviks on olnud Magnetic MRO ostuosakonna iganenud infotehnoloogiliste lahenduste võimekus ning vähene automatiseeritus andmete rohkes ostuosakonna töö keskkonnas.
Tulenevalt vähesest automatiseerimisest on näha töös ebaefektiivseid tegevusi, mida võiks parendada ja läbi selle töötada kuluefektiivsemalt ning olla turul veelgi rohkem konkurentsivõimelisem. Kuna andmeid ning kandeid, mida materjaliplaneerijad protsessivad, on palju, on näha, et ostuotsused erinevad inimeste lõikes ning sellega kaasnevad tihti suuremad kulutused varuosadele. Kuna seos kulude suurenemisele tuleneb manuaalse töö rohkusest, tuleks seda osa oluliselt vähendada ning rakendada väljapakutud lahendusi.
Autor eesmärk oli leida Magnetic MRO jaoks võimalikud automatiseerimise suunad, et neid lähitulevikus rakendada ning läbi selle keerulises ärikeskkonnas võita kuludelt ja lihtsustada materjaliplaneerijate tööd. Kõige olulisem autori jaoks oli leida need töölõigud, kus on just läbi automatiseerimise võimalik võita aega ning vabastada materjaliplaneerijad tegevustest, mis nõuavad palju ressurssi, aga väärtus on madal. Olgugi et väljapakutud parendusettepanekutega ei ole rahaline võit suur, on see siiski tuntav ja mitme arenduse puhul on tasuvuspunkt kindlasti kiiresti saavutatav.
Üheks teguriks antud töö kirjutamisel oli töötajate rahulolematus, sest andmete sisestus toimub manuaalselt ning röövib enamuse päevast. Autori eesmärk oli need kitsaskohad kaardistada, leida paremad ning toimivad lahendused ja need rakendada lõputöö tegemise raames või hilisemas faasis.
Tänu probleemi esile toomisele ja teadvustamisele juhtkonnas on materjaliplaneerijad rohkem huvitatud automatiseerimisest ning valmis panustama ka ise arendusprojektidesse rohkem aega, et seeläbi tegeleda rohkem väärtustandvate tegevustega ning pakkuda Magnetic MRO klientidele paremat teenust. Lisaks on juhtkonna poolne toetus ja soov näha ostuosakonnas rohkem automatiseeritud tegevusi ning sellega olla ka teistele äriüksustele eeskujuks. Väga tugev konkurents lennunduses sunnib mõtlema, paremate lahenduste peale, mida saaks rakendada ja läbi mille on varude tarnimine kiirem, vähem kulukam ning läbipaistev. Olgugi, et Magnetic MRO on oma hea reputatsiooniga klientide silmis heal kohal ning täna ei ole oht klientide kaotuseks suur, peab koguaeg arenema ning olema konkurentidest sammu võrra eespool. Kuigi arendustegevus ettevõttes on aasta-aastalt kasvanud ning ka IT tugi on paranenud, on siiski ruumi veel kõvasti, et automatiseerimisega olla maailma lennunduse tipus. Läbi automatiseeritud ostutegevuse on kulude juhtimises parem läbipaistvus ning materjaliplaneerijad näevad ka enda tehtud töö viljasid kiiremini ning lisaks võidavad nii kliendid kui ka ettevõte Magnetic MRO üldiselt.The main motives for writing this thesis have been outdated IT solutions capabilities of the Magnetic MRO purchasing department and insufficient data automation through innovative IT tools in the environment where data processing is huge.
Due to the lack of automation, there are inefficient activities that could be improved and worked on more cost-effectively and through this become more competitive in the market. Due to the large amount of data and entries that material planners process daily, it can be seen that purchasing decisions vary from person to person and often involve higher purchasing costs for spare parts. As the link to the increase in costs is due to the large amount of manual work, this share should be significantly reduced and the proposed solutions should be implemented.
The aim of the author was to find possible directions of automation for Magnetic MRO, to implement them in the near future, and to gain costs and simplify the work of material planners in a complex business environment. The most important thing for the author was to find those areas of the work where it is possible to save time and free material planners from activities that require a lot of resources, but the value is low. Although the financial gains from the proposed improvements are not large and wasn’t main focus of this thesis, they are significant and for a number of developments, the break-even point can certainly be reached quickly. Another factor in writing this bachalore thesis was the dissatisfaction of the employees, because the data entry is done too manually and robs most of the day. The aim of the author was to map these bottlenecks, find better and workable solutions and apply them in the framework of the dissertation or at a later stage. Having brought attention to problem by highlighting it and awareness in the management, material planners are more interested in automation and are willing to invest more time in development projects themselves, in order to engage in more value-adding activities and provide better service to Magnetic MRO customers. In addition, the support and desire by the management to see more automated activities in the purchasing department and thus to set an example for other business units. Very strong competition in aviation makes us think every day about better solutions that can be implemented and through which the supply of spare parts is faster, less costly and transparent. Although Magnetic MRO is well positioned in the eyes of its reputable customers and today the risk of losing customers is not high, it must always develop and be one step ahead of the competitors. Although the company's development activities have grown year by year and IT support has also improved, there is still plenty of room to be at the top of the world's aviation with automation. Through automated purchasing, there is better transparency in cost management, and material planners also see the fruits of their work faster, and both customers and Magnetic MRO benefit in general
Towards an Integrated Decision Making Framework for Aero Engine MRO Contract Management in the Productisation Context
No full textAbstractOne of the most critical elements in the ‘productisation’ of service adopted by today's aero-engine Maintenance Repair and Overhaul (MRO) companies is the match between customer demands and the operational capabilities of the MRO shop. Currently, the service contract is offered based upon experience and intuition rather than on scientific approach. This paper presents an integrated decision making framework to design contracts that considers demand and operational parameters. In addition to literature survey, the approach adopted in building the framework is a case study research, which obtains data from semi-structured interviews, observations and the company archives. Two main perspectives, dynamic operational parameters and shop floor operational parameters, were identified as essential and pertinent to the design and management of the service contract in the productisation context. The framework will incorporate both perspectives to support productisation
Supplier Performance Evaluation Using Cluster Analysis and Artificial Neural Networks in a MRO Business in Aviation Sector
No full textSupplier performance evaluation includes the assessment of suppliers according to several criteria. Supplier performance evaluation, which is a part of purchasing activities, has gained more importance in recent years. Performance evaluation practices exist in both manufacturing and service sectors. The maintenance and repair overhaul (MRO) sector in the service sector has different characteristics compared to other sectors in terms of purchasing and supply management. MRO enterprises in the aviation sector have fewer suppliers and the pressure on supply management of MRO companies in the aviation sector is higher when compared with other sectors. The literature on supplier evaluation in both the MRO sector and the aviation industry is limited. In this study, it is aimed to propose a new supplier evaluation and classification system using cluster analysis (CA) and artificial neural networks (ANN) methods in an MRO company operating in the aviation industry. Initially, the supplier evaluation and classification system of the company was analyzed. Then a new clustering has been proposed for the company. It is shown that the suppliers can be classified using the proposed methodology for an alternative supplier evaluation. © 2022, The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd
Improving the main processes of the logistics department using an example of the Magnetic MRO AS enterprise
No full textKäesoleva lõputöö „Logistikaosakonna põhiprotsesside parendamine ettevõtte Magnetic MRO AS näitel“ keskseks teemaks oli ettevõtte Magnetic MRO AS ja logistikaosakonna põhiprotsesside kaardistamine. Uurimisprobleem seisnes selles, et logistikaosakonna põhiprotsessid ei ole tõhusad. Lõputöö eesmärgiks seadis autor tõsta põhiprotsesside tõhususe läbi põhiprotsesside kirjeldamise, kaardistamise ja ülevaate saamise läbi terviklogistikasüsteemi kujundamise. Eesmärgi saavutamiseks sõnastas autor neli uurimisülesannet.
Uurimusstrateegiaks valiti juhtumiuuring ettevõtte Magnetic MRO AS põhjal. Andmete kogumiseks ja ühe uurimisülesande täitmiseks viis autor läbi 4 intervjuud, mille käigus tuvastati logistikaosakonna töökeskkonna peamised probleemid. Seejärel analüüsiti intervjuu sisu ja korduvate probleemide kindlakstegemiseks intervjueeritavate töötajate poolt teostati intervjuude sisu analüüs risttabeli abil. Uuringu käigus määrati logistikaosakonna põhiprotsesside kaardistamise metoodoloogia. Autor kasutas ARIS tarkvara AS-IS ja TO-BE mudelite kaardistamiseks. AS-IS mudeli kaardistamine aitas visuaalselt esitada protsessi ja tuvastada selle kitsaskohad. Näiteks kaardistades põhiprotsessi kauba vastuvõtu osakonnas ilmnes, et töötajad teevad lisatööd, mis pikendab tööprotsessi umbes 30 minutit. AS-IS mudeli kaardistamisel märgiti protsessid kollase värviga, mis tähendas, et need ei too lisaväärtust, vaid pigem raskendavad ja aeglustavad töövoo liikumist. Kui vaadata ostuosakonna kitsaskohta, siis hetkel puudub võimalus jälgida saadetise teekonda terminalist ettevõtte lattu. See vähendab selle osakonna töötajate teadlikkust ega võimalda teostada kohaletoimetamise statistikat kindlast riigist ja kindla vedajaga vajalikku tarnekohta. Samuti hetkel puudub info selle kohta, kas vajalik saadetis on füüsiliselt laos ja kas see on jõudnud täielikult nõutud koguses. Praegu võtab manuaalne saadetise kontroll aega 5 kuni 30 minutit. Mis puudutab transpordi osakonda, siis hetkel esineb arvete töötlemise protsessis kolm võimalikku riski, mille tekkimise tõenäosus on madal, kuid nende tõsidus on kõrge, muutes riski tulemuse "kõrgeks riskiks".
Intervjuude analüüsi tulemusena määrati kindlaks meetod põhiprotsesside tõhususe tõstmiseks ja võimalikkude riskide vähendamiseks. Autor pakus rakendada 2 käsiskännerit, et kiirendada tööd ja lihtsustada logistikaosakonna põhiprotsesse. Logistikaosakonna parendatud mudelid esitati ja kaardistati TO-BE mudelina. Kauba vastuvõtu osakonnas on materjali vastuvõtu protsess lühemaks muutunud, kadunud on AS-IS mudeli kollase värviga tähistatud protsessid ning protsessi kestus on vähenenud 61 ligikaudu 30 minutit. Ostuosakonnas on materjalide saabumise ja ladustamise protsess samuti lühemaks muutunud, kuna pärast käsiskänneri rakendamist ei ole vaja füüsiliselt kontrollida saabunud saadetise olemasolu laos. Axapta seotud süsteemis on näha teavet selle kohta, kas kaup on füüsiliselt laos saabunud ja kas see on toimetatud vajalikus koguses. Transpordiosakonna arvete töötlemise protsessi pärast käsiskänneri rakendamist ei muudetud, kuid riskide tekkimise tõenäosus väheneb, kuna kauba vastuvõtu osakonnas on töö paremini korraldatud, saabunud materjalid ei kao ära ja nende vastuvõtt on efektiivsem.
Antud uuring loob aluse tulevikus juba alustatud idee edasiseks arendamiseks, mis käsitleb põhiprotsesside kirjeldamist ja parendamist nii logistikaosakonnas kui ka teistes Magnetic MRO AS osakondades. Kogutud teabe põhjal täidab autor käesolevas uurimuses uurimisülesanded ja rõhutab, kui oluline on ettevõtte siseprotsesside kirjeldamine kitsaskohtade tuvastamiseks ning olemasolevate protsesside edasiarendamiseks ja täiustamiseks. Arvestades, et käesoleval uurimisel on edaspidised uurimissuunad, nimelt protsesside modelleerimise võimalus ja protsessi liikumise visuaalne esitus mudelis, on autor suundunud selle idee edasisele arendamisele ja teostamisele.
Antud uuringus pakkus autor välja võimaluse põhiprotsesside parendamiseks nende kaardistamise ja kirjeldamise kaudu, samuti käsiskänneri kasutuselevõtmise kaudu, mis aitab kaasa nende protsesside parendamisele. Arvestades kogutud teavet ja läbi viidud uurimust, vastas autor uurimisküsimustele ning saavutas eesmärgi - näitas, kuidas on võimalik suurendada logistikaosakonna põhiprotsesside tõhusust Magnetic MRO AS ettevõttes.The central theme of this thesis, „Improving the Main Processes of The Logistics Department Using an Example of the Magnetic MRO AS Enterprise,“ focused on mapping the main processes of the Magnetic MRO AS company's logistics department. The research problem was that the key processes in the logistics department were not efficient. The author's goal was to improve the efficiency of these key processes through the description, mapping, and overview of the entire logistics system. To achieve the goal, the author formulated four research tasks.
A case study approach was chosen as the research strategy based on the company Magnetic MRO AS. The author conducted 4 interviews to collect data, which were then analyzed using content analysis and cross-tabulation. During the study, the methodology for mapping the key processes in the logistics department was determined. The author used ARIS software for mapping the AS-IS and TO-BE models. Mapping the AS-IS model visually presented the process and identified its bottlenecks. As a result of the interview analysis, a method for increasing the efficiency of key processes and reducing potential risks was identified. The author proposed implementing 2 handheld scanners to speed up work and simplify key processes in the logistics department. The improved models of the logistics department were presented and mapped as the TO-BE model.
This study lays the foundation for further development of the already initiated idea, addressing the description and improvement of key processes in both the logistics department and other departments of Magnetic MRO AS. Based on the collected information, the author in this research fulfills the research tasks and emphasizes the importance of describing internal processes within the company to identify bottlenecks and to further develop and improve existing processes. Given the future directions identified in this study, namely the possibility of process modeling and the visual representation of process flow in the model, the author is focused on further developing and implementing this idea.
In this study, the author proposed an opportunity to improve key processes through their mapping and description, as well as the introduction of handheld scanners, contributing to the enhancement of these processes. Considering the gathered information and the conducted research, the author answered the research questions and achieved the goal - demonstrating how to increase the efficiency of key processes in the logistics department of Magnetic MRO AS
Redesign of Airframe MRO processes from an uptime perspective: a case study at KLM Engineering and Maintenance Airframe Services
No full textThis thesis addresses a problem at KLM E&M, where a gap exist between the desired performance and current performance of airframe MRO. This research is performed to find solutions within the A-check for wide body aircraft by identifying the constraint in the A-check and subsequently develop solution alternatives by first exploiting the constraint, then elevating and finally develop a ‘desired world’ alternative. For the A-check a theoretical preliminary model was developed which tests Phase-Gate methodology and concentrating resources within the phases during the check. It was found that applying Phase-Gate and aligning the available manpower to the workload could improve the output performance of the A-check. The best of the designed solution alternatives all consists an implementation of a core shift, which focus of aligning and full concentration of available manpower to the workload.Marine Technology | Transport Engineering and Logistic
Improvements to Stock Management on Magnetic MRO AS example
No full textKäesolevas töös vaatleb autor efektiivsuse parendamise võimalusi Magnetic MRO AS laos. Autor keskendub uurimuses komplekteerimiseks kuluva aja vähendamisele. Põhjuseks on asjaolu, et erinevate osakondade vahel on kokkulepe, mille järgi tuleb lattu esitatavate tellimuste puhul komplekteerida tellimuse 15 minuti jooksul alates selle loomisest. Lubadusest kinni pidamine on oluline, kuna lennundussektoris on iga minut väärtuslik ning hoolduste tähtaja ületamine võib tekitada suuri varalisi kahjusid.
Komplekteerimist võib pidada üheks kulukamaks protsessiks laos, kuna seda on raske täielikult automatiseerida. Seetõttu on oluline, et tegemist oleks ettevõtte jaoks võimalikult kuluefektiivse protsessiga. Efektiivsuse saavutamiseks on vaja analüüsida laovarusid ning anda selle põhjal hinnanguid, mis aitaksid teha otsuseid, mille abil selleni jõuda. Hinnangute põhjal on oluline teha ka ümberkorraldusi varude paigutusele ning vajadusel otsida võimalusi surnud varude vähendamiseks.
Töös tutvustab autor erinevaid analüüsi meetodeid ning toob välja võimalusi, kuidas neid rakendada. Lennukihooldusettevõttena esineb ka erisusi tavapärasest lao toimimisest, millest autor samuti annab ülevaate. Töös tutvustatakse ka erinevaid materjaligruppe, millega antud valdkonnas kokkupuututakse. Oluline on anda ka ülevaade ettevõttes kasutusel olevatest laoprotsessidest, et mõista nende seost komplekteerimisse puutuvaga.
Uurimuse läbiviimiseks valis autor juhtumiuuringu meetodi, mille käigus analüüsiti ettevõtte kuluosasid ning tulemuste põhjal tegi otsuseid laovarude ümberpaigutamiseks. Töös käsitletud andmed on kogutud ettevõttes kasutusel olevast tarkvarasüsteemist ning analüüside läbiviimiseks on vaadeldud 2019-2020. aasta andmeid.
Enne uurimuse läbiviimist kulus ettevõttes ühe tellimuse komplekteerimiseks 2020. aastal perioodil jaanuar-mai keskmiselt 36 minutit alates tellimuse loomisest süsteemis.
Kuluosasid ABC analüüsi abil analüüsides ilmnes, et 9% varudest moodustab Magnetic MRO AS 80% komplekteerimistest ning 19% varudest on korrelatsioonianalüüsi järgi tugevad seoses mõne teise tootega, mille alusel on võimalik varude ümberpaigutamisel sellega arvestada ning efektiivsuse parendamiseks varud laos ühte piirkonda suunata.
Uurimuse käigus paigutati ringi 6.4% kuluosadest, mis väljendus kergesti ligipääsetava laopinna vabastamist ning selle täitmine kiiresti liikuvate varudega. Oluline oli ümberpaigutamiste käigus määrata ka tulevastele varudele asukohad, et oleks garanteeritud liikuvate varude lattu jõudmisel juba õige asukoht efektiivsuse seisukohalt. Tänu uurimuses tehtud muudatustele paranes ühe tellimuse komplekteerimiseks kuluv aeg 25% võrra ehk 9 minutiline tellimuse käistluse parandus.
Tulenevalt sellest võib öelda, et ABC analüüsiga on võimalik parandada lao efektiivsust. Küll aga jäi käesoleva uurimusega saavutamata seatud eesmärk, milleks oli 15 minutiline käsitlusaeg. Selle saavutamiseks soovitab autor regulaarselt analüüsida laos olevaid varusid ning hinnata komplekteerijate tööd. Lisaks tasuks uurida, kas komplekteerimiseks kuluvat aega oleks võimalik vähendada kindlate varude paigutamisega määratud piirkonda või kaaluda vertikaalkarusellide kasutusele võttu.
Autor usub, et pakutavad lahendused aitaksid kaasa soovitud eesmärgile jõudmist ning selle tulemusena oleks võimalik jõuda ettevõttesisese lubaduse täitmiseni, mis omakorda avaldab mõju lennukite hoolduse efektiivsuse tõstmisele.The objective of this thesis is to investigate opportunities for improving efficiency in the management of the stock and warehouse processes in Magnetic MRO AS. Magnetic MRO AS is a maintenance, repair, and operations company within aviation industry servicing commercial airplanes. Its main office is in Tallinn, Estonia but has branches and service stations scattered across the world. The company’s goal is to provide best in class service in any of its locations.
Speed of service is an important factor within the aviation industry, and thus improving the management of stock and warehouse processes is a key component in achieving the company’s main objective. An internal target has been set to deliver all orders from warehouse to the servicing mechanic within 15 minutes from the receipt of the order. This is an aspiration that would allow for the whole process to work with maximum efficiency, delivering cost-effectiveness and limiting work stoppages for the mechanics.
Within this thesis the author was looking to answer to following three questions:
1) What is the current state of order completion by the warehouse team in Magnetic MRO AS?
2) Can effective implementation of the results from ABC analysis help with achieving the 15-minute target?
3) Would it be possible to reduce the time for completing an order by 5 minutes by reorganising stock layout within the warehouse?
During the empirical research phase for this thesis, the author found that the order completion time from January to May 2020 was on average about 36 minutes – more than double of the internal target. Having established the current benchmark, further analysis was completed to highlight any potential improvement opportunities for future.
The ABC analysis of the warehouse stock showed that about 80% of the orders were completed using the same 9% of stocked goods. A further 19% of the TOP100 most ordered goods in the warehouse had a high correlation with another top-ordered item. This analysis led to the reorganisation of about 6% of the stock within the warehouse, resulting in in-demand stock units being placed in the most accessible part of the warehouse.
The analysis and warehouse reorganisation led to an improvement in the average time for order completion of about 25%, or 9 minutes, as observed over a period of five months from August to December 2020. While the 15-minute delivery target was never achieved during the research it can be concluded that running regular analysis on goods ordered and warehouse setup can deliver time-savings in the process.
The author made several suggestions to the business on how to continue working towards the target. For example, further analysis of warehouse stock and orders received to streamline the process for picking items for deliveries, potential use of vertical storage in warehouse to limit the time needed for locating most ordered stock units, and evaluation and training of the warehouse workers to reduce variance in the order fulfilment process.
In short, the author believes that through continuous improvement it will be possible to shorten the lead time for most orders, attain the internal delivery target, and in consequence achieve the objective of the business of delivering best in class service to its clients in a cost-effective way
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