How to monitor and forecast your maintenance and engineering costs simple to achieve cost savings?
Now more than ever it has become elemental to control ongoing maintenance costs in airlines. Once the annual maintenance budget is set, many factors can influence deviations from this allocated maintenance budget. Think of AD’s that are issued mandating the incorporation of certain SB’s, special tooling on loan to fix a certain technical defect, spares on loan, unplanned inspection due to special circumstances such as bird strikes or lightning strikes. These are just a few examples. In the AVILYTICS E&M KPI suite a monitoring function is provided to continuously monitor and forecast these potential additional maintenance costs that could arise for your airline.
The primary goal in aircraft maintenance is and should always be safety. However, it lives on a love-hate relationship with costs involved to maintain aircraft. Based on the scheduled maintenance activities mandated by the aircraft OEM, airlines can determine what the ongoing maintenance costs will be for their fleet of aircraft. In addition, when budgeting for maintenance costs a portion for unscheduled maintenance activities should typically be allocated. However once aircraft operate many factors can influence the actual maintenance activities that need to be performed and costs that arise because of them. Aspects such as defect rectification, AD issuance, loaning special tooling or even your maintenance planning efficiency will determine if an airlines technical department will be able to remain within their allocated maintenance budgets. Having the ability to monitor and forecast on these ongoing and likely upcoming additional maintenance costs can help airlines in their efforts to control costs under pressing market times.
How to gain insight into potential upcoming additional maintenance costs?
Being able to model the upcoming additional maintenance costs is to a large extend being determined by the availability of the datapoints which are required for this. Based on historic data, the upcoming trend for aircraft defect rectifications can be determined. Listing the different AD’s that need to be embodied will allow to forecast the additional maintenance costs originating from this. Most of this data is already captured in the airline MRO/M&E system, however mainly from an airworthiness management perspective. By adding additional datapoints it becomes possible to also forecast these maintenance activities with their cost’s implications.
Tip: Using your airline MRO/M&E system as data source for maintenance costs modelling, saves on duplicate data entry and data inconsistency
When the different data points are recorded in an MRO- or M&E management system it becomes possible to connect a data analytics dashboard to the data. This will drive further insight into the current ongoing maintenance costs, likely upcoming additional costs and what be done to control these.
Do you have any questions?
Feel free to contact us or give us a call on +31 20 8200 7600. We would be happy to help you further.
What is AVILYTICS?
AVILYTICS is a fully out-of-the-box aircraft reliability management solution that focuses on providing insights in technical reliability, upcoming potential technical failures as well as organizational efficiency analytics. It combines the traditional scope of aircraft and fleet reliability management with advanced techniques from predictive analytics to also build AOG risk profiles of aircraft, identify aircraft based reoccurring defects and measure organization performance. A full holistic approach to using data in order to increase aircraft availability and fleet performance.