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Module 4 How Airlines Master Spare Parts
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So let's begin by defining what we mean
by spare parts in the context of
aviation. Spare parts are basically
replacement items used during the
maintenance, repair or overhaul of
Airlines actually manage tens of
thousands of part numbers from tiny
screws all the way up to major landing gear
assemblies. There are a few different
types of spare parts. Consumables are
used just once, like filters or seals.
Expendables are lowcost items that
aren't repaired, such as O-rings.
Rotables are high value and repairable,
for example, avionics or actuators. And
then you have repables which aren't
rotables but can still be repaired like
certain brackets or [Music]
panels. For example, a Q400 aircraft
nose wheel tire is classified as a
repairable while the main gear strut is
So forecasting is really the foundation
of spare parts management. If you get
this wrong, well, you either end up
overstocking or worse, you go AOG,
aircraft on [Music]
ground, right, let's talk about the
types of forecasting. There's historical
usage analysis which looks at how parts
have been used in the past. Then failure
rate modeling often called MTBR or
meanantime between unscheduled removals.
We also have predictive analytics using
AI which is becoming more common these
days and of course scheduled maintenance
forecasts like you know those known Cch check
requirements. Now moving on to planning
methods, we have ABC classification,
which sorts parts by their criticality
and value. There's also safety stock
modeling, which helps ensure you don't
run out of essentials. And finally,
cannibalization modeling, which is
influenced by things like scheduled aircraft
aircraft [Music]
[Music]
retirements. So, let me give you an
example. The A330 oxygen masks may have
shown low usage historically, but if a
new airworthiness directive changes the
replacement cycles, then forecasting has
[Applause] [Music]
[Music]
immediately. There are several tools out
there like Amos, Tracks, Ramco, and SAPM
which all have built-in forecasting and
It all comes down to deciding how much
to hold, where to hold it, and of
course, who actually owns [Music]
it. So, let's talk about stocking
models. There's the choice between
centralized and decentralized storage,
which can really impact how quickly
parts are available. Forward stocking at
main airports is a common approach,
especially for airlines that want to
keep things moving smoothly. And you
know, hub and spoke models are often
used by global airlines to make sure
parts are where they need to be when
they need to be [Music]
there. Now, moving on to inventory optimization.
optimization.
One key aspect is service level
targeting like aiming for a 95% fill
rate for example. It's always a
balancing act between carrying cost and
stockout cost. Plus managing life
limited parts or LLPs and dealing with
obsolescence is absolutely crucial to
keep everything running efficiently. [Music]
For instance, Emirates maintains a
forward stocking location in London
Heathro to ensure quick access to wheels
and brakes. This setup really helps
reduce flight delays that could be
unavailable. So, let's talk about shelf
life management. Many aviation parts
actually have specific shelf lives.
Think items like life vests, fire
extinguishers, or even adhesives. This
means, you know, managing these parts
really requires a first in first out
inventory system and of course frequent
audits to make sure nothing expires [Music]
unexpectedly. When it comes to vendor
selection, there are several options.
You have OEMs such as Honeywell or
Saffron. Then there are PMA or parts
manufacturer approval sources. And
finally distributors like AVL and
SATire. Each plays a different role in
Honestly, there are a few different
contract types used in aviation parts
procurement. These include spot buys,
long-term agreements, often called LTAs,
power by the hour arrangements, and
consignment agreements. Each contract
type really has its own set of benefits and
and [Music]
[Music]
considerations. So, for example, let's
say an airline signs a consignment
agreement with Collins Aerospace. In
this arrangement, the parts actually
remain owned by Collins until they're
used, which, you know, really helps
[Music]
airline. When it comes to negotiation
considerations, there are a few key
things to keep in mind. Lead times,
warranty and returns, pricing
escalators, and of course, compliance
with ISA or FAA certifications. All of
these can really impact the [Music]
agreement. Here's a quick tip. Always,
and I mean always, verify traceability
and certification like FAA 8130-3 or ISA
form 1. This is super important to avoid
[Music]
So in today's global airline industry,
collaboration is [Music]
key. Right, let's talk about the types
of pooling. There are OEM pools like
Airbus FHS and Boeing Gold Care. Then
you've got independent pools such as
spar liners, AJW and Lufanza Technic.
And finally there are inter aairine
pools which operate through the
[Music]
IATP. For example, let's say a Thai
based airline joins IATP and suddenly
has access to over 10,000 roles all
around the world. If say an actuator
fails in Tokyo, another airline in the
pool can supply it the very same day. [Music]
[Music]
exchange programs. Well, they allow
airlines to swap identical roles and
then settle repair costs later. This
approach really supports fleet
commonality, making operations smoother
for everyone [Music]
involved. Airline parts logistics is not
just shipping, it's aviation grade
logistics. And honestly, that means a
whole new level of precision and [Music]
reliability. AOG logistics or aircraft
on ground logistics is all about
providing a roundthe-clock response when
an aircraft is grounded. This often
involves using couriers, charter
flights, and express freight to get
planes back in the air as quickly as possible.
So, here's an example. Imagine an A380
is grounded in Sydney because of a
failed avionics module. DHL manages to
rush a replacement unit all the way from
Frankfurt and they do it within just 18
hours using Priority Air [Music]
Cargo. Now, routine logistics are a bit
different. These involve scheduled
shipments that are based on maintenance
planning. Often bonded warehouses are
used to defer duties, which is pretty
clever. And you know, special packaging
and temperature control are needed for
sensitive items like avionics or adhesives.
Major logistics partners in this space
include DHL Aviation, Quain Plus, Nagel,
solutions. All right, so let's talk
about some key metrics. First up,
there's fill rate, which is the
percentage of requests that are actually
fulfilled. Then we have stockout rate
which tracks how often items are out of
stock. Inventory turnover is another
important one. It measures how quickly
inventory is being used or sold. There's
also AOG response time and finally
repair turnaround time often called TT.
These metrics, you know, really help us
understand performance and efficiency in
So for example, a top tier airline aims
for an aircraft on ground part dispatch
within 2 hours of notification and um
they track on-time logistics performance every
month. Compliance is absolutely
critical. All parts must meet
airworthiness and traceability
requirements. Regulators like the FAA,
ESAR and local civil aviation
authorities can, you know, audit stores
and documentation at any [Music]
time. In this module, we explored the
backbone of aircraft availability, spare
parts management. From forecasting and
sourcing to pooling and logistics, every
single decision impacts aircraft
readiness, cost, and compliance. [Music]
Strong coordination between planning,
procurement, engineering, and logistics
is honestly essential. With smart
systems and strategy, supply chains can
transform from a reactive model into a
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