Sponsored By: Airline Fleet Readiness: Trade-off Analysis of Alternate Maintenance Systems 1 Overview 1. 2. 3. 4. 5. 6. 7. Context Problem and Need Statements Scope Stakeholder Analysis Design Alternatives Method of Analysis Project Schedule 2 Overview 1. 2. 3. 4. 5. 6. 7. Context Problem and Need Statements Scope Stakeholder Analysis Design Alternatives Method of Analysis Project Schedule 3 Unstable Demand, Fluctuating Prices 20 $500.00 18 $450.00 Average Ticket Fare $400.00 14 $350.00 12 $300.00 10 $250.00 8 $200.00 Air Carrier Traffic Operations 6 $150.00 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 $0.00 2000 0 1999 $50.00 1998 2 1997 $100.00 1996 4 1995 Air Carrier Operations (Millions) 16 National Average Ticket Fare (USD) Comparison of Air Traffic and Ticket Fare Year Source: FAA – ATADS and BTS 4 Airline Profitability Airline Profitability vs Time 50 Annual Profit 40 Cumulative Profit Billions (USD) 30 20 10 0 -10 Source: BTS RITA Schedule 12 and NBER 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 -20 Year : Recession (7/90-3/91, 3/01-11/01, 12/07-6/09) 5 Total Operating Expenses Direct Maintenance (≈10% of Total) Source: BTS 6 Increasing Maintenance Costs Quarterly Direct Maintenance Cost (Adjusted for Inflation) Billions (USD) 3.5 3 2.5 2010 2009 2008 2007 2006 2005 2004 2003 2 5 4 2010 2009 2008 2007 2006 2005 2004 3 2003 Air Hours (Millions) Total Quarterly Air Hours 700 680 660 640 620 600 580 Source: BTS RITA Schedule P-12 Year 2010 2009 2008 2007 2006 2005 2004 560 2003 Cost per Flight Hour (USD) Direct Maintenance Cost per Flight Hour (Adjusted for Inflation) 7 Indirect Cost of Maintenance Fleet Readiness: The percentage of time that a given aircraft is in service In Service: Producing Revenue Out for Maintenance: Losing Revenue and Incurring Costs 8 Higher Maintenance Cost Gap Total Cost Maintenance Costs (direct and indirect) Cost Other Operating Expenses Goal: Lower Current Reduce Cost Gap Optimal Lower Frequency of part replacement Higher *Note: This figure is not drawn to scale. 9 Aircraft Complexity “*A Boeing 737 has+ 367,000 parts; an equal number of bolts, rivets and other fasteners; and 36 miles (58 kilometers) of electrical wire” - Boeing Source: FlightGlobal and Boeing 10 Aircraft Complexity Boeing 737 Family # of subsystems System Navigation 182 Air Conditioning 145 Fire Protection 95 Fuel 93 Communications 75 Doors 73 Lights Equipment/Furnishings Flight Controls Ice and Rain Protection 63 57 52 50 All Others 309 Total: 1194 Source: Boeing and FAA – Boeing 737 MMEL 11 Overview 1. 2. 3. 4. 5. 6. 7. Context Problem and Need Statements Scope Stakeholder Analysis Design Alternatives Method of Analysis Project Schedule 12 Problem and Need Statements Problem: Maintenance costs are increasing over time. Need: Airline companies need to reverse the current trend of increasing maintenance costs. Year Indirect Maintenance Cost 2010 2009 2008 2007 2006 2005 2004 2003 Cost (USD) Direct Maintenance Cost 700 680 660 640 620 600 580 560 13 Approach Design and perform a tradeoff analysis of alternate maintenance systems to determine an effective method to reduce the number of parts replaced and increase fleet readiness 14 Mission Requirements 1. The system shall conform to all regulations imposed by governing bodies of the airline and safety industries. 2. The system shall reduce number of maintenance actions required by the aircraft. 3. The system shall reduce maintenance-related expenses. 15 Overview 1. 2. 3. 4. 5. 6. 7. Context Problem and Need Statements Scope Stakeholder Analysis Design Alternatives Method of Analysis Project Schedule 16 Scope Phased Mx Schedules Part Replacement Ticket Prices Fluctuating Demand Non- Mx Operating Costs Mx = Maintenance Boeing 737 Family Part Condition Tracking Mx Actions Performed Aircraft, Workshop and Enterprise Levels Time Spent on Each Mx Action Outsourced Mx Other Aircraft Makes and Models 17 Overview 1. 2. 3. 4. 5. 6. 7. Context Problem and Need Statements Scope Stakeholder Analysis Design Alternatives Method of Analysis Project Schedule 18 System Operational Scenario Mx = Maintenance 19 Stakeholder Analysis Aircraft Primary Stakeholders Secondary Stakeholders Affected by equipage changes and operational changes of personnel on each aircraft Workshop Affected by changes in infrastructure, operations, and equipment that occur in the maintenance facility Enterprise Affected by changes in airline fleet management equipment and operations. Aircraft Flight Crew X Aircraft Passengers X X Aircraft Manufacturer X X Airline Fleet Operator X X X Airline Fleet Owner X X X Competing Airlines X X X X X X X X Federal Aviation Administration (FAA) Federal Communications Commission (FCC) Maintenance, Repair, and Overhaul (MRO) Personnel Occupational Safety and Health Administration (OSHA) Tool and Part Manufacturers Tool and Part Shipment Company X X X X X X 20 Stakeholder Interaction Diagram Mx System Regulation and Oversight FCC Supply Chain OSHA Workshop Regulations Aircraft Supply Enterprise Revenue FAA Revenue Tool and Part Shipping Company Aircraft Passengers Enterprise Competing Airlines Tool and Part Manufacturer Aircraft Manufacturer Airline Fleet Owner Airline Fleet Operator Workshop MRO Aircraft Maintenance System Aircraft Flight Crew 21 Overview 1. 2. 3. 4. 5. 6. 7. Context Problem and Need Statements Scope Stakeholder Analysis Design Alternatives Method of Analysis Project Schedule 22 Design Alternatives 1. Hangar Transfer Maintenance Bay – Information is transferred in the maintenance facility – Preventative based 2. Flight Line Transfer – Information is transferred in between each flight – Condition based B49 3. Airborne Transfer – Information is transferred during flight – Condition based 23 Preventative Based Alternative (1) • Preventative Based Maintenance – Parts are replaced on a regular schedule, based on expected life of each part – Parts may still be replaced if a scheduled inspection identifies a need – Limited maintenance data is available through existing onboard sensors • Hangar Transfer (1) – Utilizes only existing maintenance sensors 24 Condition Based Alternatives (2 and 3) • Condition Based Maintenance – Parts are replaced with consideration for the overall condition of the part and the aircraft – Additional sensors required • Adds weight, complexity, and power needs • Flight Line Transfer (2) – May require additional terminal infrastructure • Airborne Transfer (3) – May require additional communications avionics and infrastructure 25 Alternative 1: Hangar Transfer Mx = Maintenance 26 Alternative 2: Flight Line Transfer Mx = Maintenance 27 Alternative 3: Airborne Transfer Mx = Maintenance 28 Assumptions • A1. Effects of outsourcing are negligible • A2. Emergencies, hijackings, crashes are not considered • A3. Representative subsystems can generalize to the entire aircraft • A4. A generic “aging effect” can be ignored • A5. The implementation time for alternatives is negligible 29 Assumptions (cont’d.) • A6. Only critical parts will be modeled • A7. Only modeling part replacement • A8. Time to replace a part will not be considered • A9. Overall safety will be assured regardless of alternative • A10. Maintenance personnel and facilities will be available when needed • A11. The cost of a maintenance action will not change with respect to time 30 Overview 1. 2. 3. 4. 5. 6. 7. Context Problem and Need Statements Scope Stakeholder Analysis Design Alternatives Method of Analysis Project Schedule 31 Model Design Mx = Maintenance 32 Green, Yellow, Red Assignments Green Yellow Red Replacement is not required Replacement is required but immediate action is not necessary Replacement is required at next landing 33 Model Variables Aircraft • Age of Aircraft (Flight Hours) • Maintenance Trip Needed (Y,N) Part 1 Part 2 Part 3 Part 4 Part 5 • • • • • Expected Life of Part (Flight Hours) Current Age of Part (Flight Hours) Actual Condition (R,Y,G) Assigned Condition (R,Y,G) Reason for R/Y/G (Predicted Life, Fault Detection) • Notification for Replacement (Y,N) 34 Data Input: Part Life and Selection Older Airframes Comparison of Reported Difficulties 1 Fuselage Lights Frequency of Difficulty More Frequent 0.1 Wings Equipment/Furnishings Air Conditioning 0.01 Navigation Stabilizers Doors Landing Gear Flight Controls Nacels/Pylons 0.001 Propellors/Propulsors 0.0001 Powerplant 0.00001 0 10000 20000 30000 40000 50000 60000 70000 Age of Airframe (In Flight Hours) at Time of Difficulty Source: FAA – SDR Database (737 only) *Note: Part selection is not yet finalized 35 Data Input: Flight Length Number of Flights ––– Lognormal(2.05, 1.31) Length of Flight (Hours) Source: BTS RITA: Form T-100 data, Average Ramp-To-Ramp Times, 2008-2010 36 Logical System Model Mx = Maintenance 37 Design of Experiment Input Alternative Maximum Probability of Predicted Life of Allowable Part Failure Parts Yellow Parts # hours (low) Infinity # hours (high) Infinity # hours (low) Infinity # hours (high) Infinity Infinity # parts (low) Infinity # parts (high) Infinity # parts (low) Infinity # parts (high) Infinity # parts (low) Infinity # parts (high) Infinity # parts (low) Infinity # parts (high) Output Number of Maintenance Stops Number of Number of Parts Replaced Parts Replaced With Notification Total Cost of Maintenance Low Estimate Hangar Transfer (Preventative) High Estimate Low Estimate Flight Line Transfer (Condition) High Estimate Airborne Transfer (Condition) Low Estimate High Estimate 38 Utilities Mx = Maintenance *Note: Weights will be elicited by survey 39 Model Verification • Compare total number of R/Y/G assignments with expectations • Compare time to part failure with available data • Check total number of maintenance trips for reasonableness 40 Overview 1. 2. 3. 4. 5. 6. 7. Context Problem and Need Statements Scope Stakeholder Analysis Design Alternatives Method of Analysis Project Schedule 41 Project Schedule *Task is on Critical Path 42 *Note: $50/hour (loaded rate) 757.5 hours total 10-Apr 3-Apr 40000 27-Mar Earned Value 20-Mar 13-Mar 6-Mar 15000 27-Feb 20000 20-Feb 13-Feb 6-Feb 30-Jan 23-Jan 16-Jan 9-Jan 2-Jan 26-Dec 19-Dec 12-Dec 5-Dec 28-Nov 21-Nov 14-Nov 7-Nov 31-Oct 24-Oct 17-Oct 10-Oct 3-Oct 26-Sep 19-Sep 12-Sep 5-Sep Cost (USD) Performance and Projected Cost $37,875 35000 30000 25000 Budgeted Cost Actual Cost Work Performed 10000 5000 0 Week 43 CPI = Cost Performance Index SPI = Schedule Performance Index *Note: Index of 1.00 is performing as expected 10-Apr 3-Apr 27-Mar 20-Mar 13-Mar 6-Mar 27-Feb 20-Feb 13-Feb 6-Feb 30-Jan 23-Jan 16-Jan 9-Jan 2-Jan 26-Dec 1.00 19-Dec 12-Dec 5-Dec 28-Nov 21-Nov 14-Nov 7-Nov 31-Oct 24-Oct 17-Oct 10-Oct 3-Oct 26-Sep 19-Sep 12-Sep 5-Sep Index CPI and SPI CPI and SPI 1.60 1.40 1.20 CPI SPI 0.80 0.60 0.40 0.20 0.00 Week 44 Risks • Limited knowledge and experience with airline maintenance – Mitigation: Sponsor in the aviation maintenance field • Task saturation – Mitigation: We now have an intern to assist with non-critical tasks 45 Questions? ? 46 Backup Slides • Failure Patterns • Stakeholder Node Adjacency Matrix • Service Difficulty Reports • Model Inputs and Outputs • Logical System Model (Expanded) • Mx as a fraction of operating expenses • Quarterly Direct Mx Expenses • Airworthiness Directives • Regulatory Pressure 48 Model Inputs Outputs Number of Maintenance Actions Probability of Part Failure Number of Parts Replaced Predicted Life of Part Maximum Allowed “Yellow” Parts Discrete Event System Model Average Lead Time Before Repair Total Cost of Maintenance 49 Failure Patterns 50 Failure Patterns 100% 90% 80% 70% Bathtub 60% Exponential 50% Linear 40% Log 30% Flat 20% Decay 10% 0% UAL Broberg Aviation MSP SUB Naval 51 Stakeholder Node Adjacency Matrix To Node Airline Fleet Operator Airline Fleet Owner Airline Fleet Airline Fleet Aircraft Aircraft Aircraft Maintenance Competing FAA FCC Operator Owner Flight Crew Manufacturer Passengers System Airlines Aircraft Flight Crew Aircraft Manufacturer From Aircraft Passengers FAA Tool and Part Shipping Company Budget Labor cost Need for Fewer Delays Revenue Cost Ticket Sales Schedules, Procedures Trend feedback, Changes in Equipment Regulations Regulations MRO Divergent Practices Delays Procedures, Airworthines s Directives System Interfaces, Additional Training, Procedures Inventory Need for Fast Requirements Shipping Price Competition Ticket Prices FCC Regulations Regulations Regulations Regulations Regulations Certifications Regulations Need for Reliable Shipping Labor Cost Safety Regulations OSHA Tool and Part Manufacturer Tool and Part Shipping Company Tool and Part Manufacturer Cost of Construction Fleet Maintenance Operations System Down Time, Schedule Competing Airlines Cost of Construction, Capabilities Labor Cost OSHA Maintenance Ticket Price Reports Competition Schedules Budget MRO Safety Regulations Tools and Parts Shipping Costs Shipping Costs Tools and Parts 52 Service Difficulty Reports 53 Model Inputs • Probability of Part Failure: Expected percentage that a part will fail based on historical data • Predicted Life of Parts: Mean Time Between Failure (MTBF) • Maximum Allowable Yellow Parts: Number of parts nearing MTBF allowed before maintenance trip is required • Fault Detection Accuracy: Estimated accuracy of the identification of a fault in the model 54 Model Outputs • Number of Maintenance Stops: The total number of maintenance trips performed by the simulated aircraft during its service life • Number of Parts Replaced: The total number of parts replaced during the simulated aircraft’s service life • Total Cost of Maintenance: The monetary cost of maintenance over the service life of the simulated aircraft • Average Lead Time Before Repair: Time in hours available for preparatory work by maintenance personnel 55 Logical System Model (Expanded) 56 System Model (Pseudo Code) Action Formula Initialize Initialize variables Begin_flight Age the aircraft and parts Flight_length = lognormal(2.05,1) Aircraft_age = Aircraft_age + Flight_length P1_age = P1_age + Flight_length Part degredation (Determine P1_actual) P1_actual = compare rand() to probability of failure (POF) graph at P1_age: if(rand()>POF(P1_age), "G") else if(rand()>0.8*POF(P1_age),"Y"), else "R" P1 = Part 1 if(P1_age>P1_exp, P1_reason = "PL“ and R=R+1), else if(P1_age>0.8*P1_exp, P1_reason = Determine P1_assigned for "PL“ and Y = Y+1),else if (P1_actual="R", P1_reason = "FD“ and R = R+1), else if "PL" = Predicted Life Part 1 (P1_actual="Y", P1_reason = "FD“ and Y = Y+1), else "G" "FD" = Fault Detection Max_allowable = 2 for 5-part Count "R","Y" if( R > 0 or Y > Max_allowable, goto Mx_trip), else P1_notify="true" and goto Begin_flight systems Mx_trip Count notifictions total_notifications = sum(Px_reason = "PL") + sum(Px_reason = “FD" and Px_notify="true") total_notifications Count replaced parts total_replaced = Sum(Px_assigned ="Y") + Sum(Px_assigned = "R") Replace parts Initialize variables for all Px_assigned = "Y" or "R" End Mx_trip goto Begin_flight total_replaced 57 Mx as a fraction of operating expenses 58 Operating Expenses SYS_FIELD FIELD_DESC Description Expenses incurred directly in the in-flight operation of aircraft and expenses related to the holding of aircraft and aircraft operational personnel in readiness for assignment for an inflight status. ( Air Carrier Financial Reports (Form 41 Financial Data) ) All expenses, both direct and indirect, specifically identifiable with the repair and upkeep of MAINTENANCE 54000 - Maintenance property and equipment. ( Air Carrier Financial Reports (Form 41 Financial Data) ) Cost of activities contributing to the comfort, safety, and convenience of passengers while in 55000 - Passenger PAX_SERVICE flight or when flights are interrupted. Includes salaries and expenses of flight attendants and Service passenger food expenses. ( Air Carrier Financial Reports (Form 41 Financial Data) ) Compensation of ground personnel, in-flight expenses for handling and protecting all nonpassenger traffic including passenger baggage, and other expenses incurred on the ground to (1) protect and control the in-flight movement of the aircraft, (2) schedule and prepare 64000 - Aircraft And AIRCFT_SERVICES aircraft operational crew for flight assignment, (3) handle and service aircraft while in line Traffic Servicing operation, and (4) service and handle traffic on the ground after issuance of documents establishing the air carrier's responsibility to provide air transportation. ( Air Carrier Financial Reports (Form 41 Financial Data) ) Cost incurred in promoting the use of air transportation generally and creating a public 67000 - Promotion preference for the services of particular air carriers. Includes the functions of selling, PROMOTION_SALES And Sales advertising, and publicity, space reservations, and developing tarrifs and flight schedules for publication. ( Air Carrier Financial Reports (Form 41 Financial Data) ) 68000 - General And GENERAL_ADMIN Administrative 69000 - General And GENERAL_SERVICES Administrative 70000 - Depreciation DEPREC_AMORT And Amortization 71000 - Transport All expense items applicable to the generation of transport-related revenues. ( Air Carrier TRANS_EXPENSES Related Expenses Financial Reports (Form 41 Financial Data) ) FLYING_OPS 51000 - Flying Operations 59 3.5 700 3 680 2.5 660 2 640 1.5 620 1 600 Direct Mx Flight Equipment (Adjusted for inflation) Direct Mx Flight Equipment Direct Maintenance cost per flight hour (adjusted for inflation) 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 560 1993 0 1992 580 1991 0.5 1990 Billions Quarterly Direct Mx Expenses 60 Airworthiness Directives Annual Count of Airworthiness Directives Issued 500 450 400 350 300 250 200 150 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 61 MEL Systems 1400 1194 1200 1000 800 600 Quantity of parts under under main systems ( number) 400 200 Cumulative 182 145 95 93 75 73 63 57 52 50 49 44 39 24 23 23 21 14 12 12 12 9 9 6 4 4 2 0 62 2 Regulatory Pressure Millions Total penalties assessed per quarter 9 8.4 M 8 Penalties assessed in millions USD 7 6 5 4 3.3 M 3 2 1 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 0 Year FAA – Quarterly Enforcement Reports $3.9 Million: total of civil penalties for maintenance issues in the last year $24.2 Million: FAA-proposed penalty for Airworthiness Directive noncompliance. 63