Aligning logistics with MRO to improve spare parts availability

Abstract

Aircraft 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.