9th IFAC Conference on Manufacturing Modelling, Management and
9th IFAC Conference on Manufacturing Modelling, Management and
Control
9th
IFAC Conference on Manufacturing Modelling, Management and
Control
9th IFAC Conference on Manufacturing Modelling, Management and
Berlin,
Germany,
August
28-30, 2019 Available
Control
online
at www.sciencedirect.com
9th
IFAC
Conference
on Manufacturing
Modelling,
Management
and
Berlin,
Germany,
August
28-30, 2019
Control
9th
IFAC
Conference
on Manufacturing
Modelling, Management and
Berlin,
Germany,
August
28-30, 2019
Control
Berlin,
Germany,
August
28-30,
2019
Control
Berlin, Germany, August 28-30, 2019
Berlin, Germany, August 28-30, 2019
ScienceDirect
IFAC PapersOnLine 52-13 (2019) 2343–2347
The
Effect
of
“Internet
of
Things”
on
Aircraft
Spare
Parts
Inventory
The
Effect
of
“Internet
of
Things”
on
Aircraft
Spare
Parts
Inventory
The
Effect
of
“Internet
of
Things”
on
Aircraft
Spare
Parts
Inventory
The Effect of “Internet of Things”
on
Aircraft
Spare
Parts
Inventory
Management
Management
The
Effect
of
“Internet
of
Things”
on
Aircraft
Spare
Parts
Inventory
Management
The Effect of “Internet of Things”
on
Aircraft
Spare
Parts
Inventory
Management
Management
S.
D.
Management
S. Keivanpour*,
Keivanpour*,
D. Ait
Ait Kadi**
Kadi**
S. Keivanpour*, D. Ait Kadi**
S. Keivanpour*, D. Ait Kadi**
S. Keivanpour*,
D.
*Department
of
Management,
Information
and
Chain,
Rivers
Keivanpour*,
D. Ait
Ait Kadi**
Kadi**
*Department of Management, Information andS.Supply
Supply
Chain, Thompson
Thompson
Rivers University,
University, Kamloops,
Kamloops, BC
BC V2C
V2C 0C8,
0C8, Email:
Email:
*Department
of
Management,
Information
and
Supply
Chain,
Thompson
Rivers
University,
Kamloops,
BC
V2C
0C8, Email:
Email:
skeivanpour@tru.ca
*Department of Management, Information and Supply
Chain, Thompson Rivers University, Kamloops, BC V2C 0C8,
skeivanpour@tru.ca
skeivanpour@tru.ca
*Department
of
Management,
Information
and
Supply
Chain,
Thompson
Rivers
University,
Kamloops,
BC
V2C
0C8,
skeivanpour@tru.ca
*Department of Management, Information and Supply
Chain, Thompson Rivers University, Kamloops, BC V2C 0C8, Email:
Email:
skeivanpour@tru.ca
**Department
of
Mechanical
Engineering,
Laval
University,
**Department of Mechanical Engineering, Lavalskeivanpour@tru.ca
University, Quebec,
Quebec, G1V
G1V 0A6,
0A6, Email:
Email: Daoud.aitkadi@gmc.ulaval.ca
Daoud.aitkadi@gmc.ulaval.ca
**Department
Laval University,
University, Quebec,
Quebec, G1V
G1V 0A6,
0A6, Email:
Email: Daoud.aitkadi@gmc.ulaval.ca
Daoud.aitkadi@gmc.ulaval.ca
**Department of
of Mechanical
Mechanical Engineering,
Engineering, Laval
**Department
of
Mechanical
Engineering,
Laval
University,
Quebec,
G1V
0A6,
Email:
Daoud.aitkadi@gmc.ulaval.ca
**Department of Mechanical Engineering, Laval University, Quebec, G1V 0A6, Email: Daoud.aitkadi@gmc.ulaval.ca
Abstract:
inventory management
management is
is crucial
crucial for
for airlines
airlines as
as it
it directly
directly impacts
impacts fleet
fleet
Abstract: Aircraft
Aircraft spare
spare parts
parts inventory
Abstract:
Aircraft
spare
parts
inventory
management
is
crucial
for
airlines
as
it
directly
impacts
fleet
availability
and
customer
satisfaction.
Internet
of
Things
(IoT)
and
big
data
analytics
could
decrease
the
Abstract:
spare parts
inventory
management
crucial
forbig
airlines
as it directly
availabilityAircraft
and customer
satisfaction.
Internet
of Thingsis (IoT)
and
data analytics
couldimpacts
decreasefleet
the
availability
and
customer
satisfaction.
Internet
of
Things
(IoT)
and
big
data
analytics
could
decrease
the
Abstract:
Aircraft
spare
parts
inventory
management
is
crucial
for
airlines
as
it
directly
impacts
fleet
risk
of
unavailability
and
the
inventory
costs
for
airlines.
This
paper
aims
to
highlight
the
role
of
IoT
in
availability
and
customer
satisfaction.
Internet
of
Things
(IoT)
and
big
data
analytics
could
decrease
the
Abstract:
Aircraft spare
inventorycosts
management
is This
crucial
for aims
airlines
as it directly
impacts
fleet
risk of unavailability
and parts
the inventory
for airlines.
paper
to highlight
the role
of IoT
in
risk
of
unavailability
and
the
inventory
costs
for
airlines.
This
paper
aims
to
highlight
the
role
of
IoT
in
availability
and
customer
satisfaction.
Internet
of
Things
(IoT)
and
big
data
analytics
could
decrease
the
aircraft
spare
parts
inventory
management.
According
to
Klipi
et
al.
(2009),
four
generic
practices
are
used
risk
of
unavailability
and
the
inventory
costs
for
airlines.
This
paper
aims
to
highlight
the
role
of
IoT
in
availability
customer
satisfaction.
Internet
of Things
(IoT)etand
big datafour
analytics
decrease
the
aircraft spareand
parts
inventory
management.
According
to Klipi
al. (2009),
genericcould
practices
are used
aircraft
spare
parts
inventory
management.
According
to
Klipi
et
al.
(2009),
four
generic
practices
are
used
risk
of
unavailability
and
the
inventory
costs
for
airlines.
This
paper
aims
to
highlight
the
role
of
IoT
in
by
airlines
for
supplying
spare
parts:
in-house
sourcing,
ad-hoc,
cooperative
pooling,
and
commercial
aircraft
spare
parts
inventory
management.
According
to
Klipi
et
al.
(2009),
four
generic
practices
are
used
risk
of
unavailability
and
the
inventory
costs
for
airlines.
This
paper
aims
to
highlight
the
role
of
IoT
in
by airlines for supplying spare parts: in-house sourcing, ad-hoc, cooperative pooling, and commercial
by
airlines
for
supplying
spare
parts:
in-house
sourcing,
ad-hoc,
cooperative
pooling,
and
commercial
aircraft
spare
parts
inventory
management.
According
to
Klipi
et
al.
(2009),
four
generic
practices
are
used
pooling.
The
implications
of
IoT
in
these
four
strategies
are
assessed.
The
business
model
of
KLM
by
airlines
forparts
supplying
spare
parts:
in-house
ad-hoc,
pooling,
and
commercial
aircraft
spare
inventory
According
to Klipi
al. cooperative
(2009),The
four business
generic practices
areKLM
used
pooling.
The
implications
ofmanagement.
IoT
in these
foursourcing,
strategies
areet assessed.
model
of
pooling.
The
implications
of
in
four
strategies
are
assessed.
The
model
of
by
airlines
for
supplying
spare
parts:
in-house
ad-hoc,
cooperative
pooling,
and
commercial
engineering
and
maintenance
department
provided
by
2016)
is
elaborate
the
pooling.
The
implications
of IoT
IoT
in these
these
foursourcing,
strategies
are Rijssel,
assessed.
The business
business
model
of KLM
KLM
by
airlines
for
supplying
spare
parts:
in-house
sourcing,
ad-hoc,
cooperative
pooling,
and
commercial
engineering
and
maintenance
department
provided
by (Van
(Van
Rijssel,
2016)
is used
used to
to
elaborate
the
engineering
and
maintenance
department
provided
by
(Van
Rijssel,
2016)
is
used
to
elaborate
the
pooling.
The
implications
of
IoT
in
these
four
strategies
are
assessed.
The
business
model
of
KLM
application
of
IoT
from
four
perspectives
of
component
and
reliability;
airlines
engineering
and
engineering
and
maintenance
department
by (Van
Rijssel,
2016)
is used engineering
to
elaborate
the
pooling.
Theof
implications
of IoT
in these provided
four
areand
assessed.
The airlines
business
model
of KLM
application
IoT
from four
perspectives
of strategies
component
reliability;
and
application
of
IoT
from
four
perspectives
of
component
and
reliability;
airlines
engineering
and
engineering
and
maintenance
department
provided
by
(Van
Rijssel,
2016)
is
used
to
elaborate
the
maintenance;
logistics
arrangement
and
market.
application
IoT
from
four department
perspectives
of component
reliability;
engineering
and
maintenance
provided
by (Vanand
Rijssel,
2016) airlines
is used engineering
to elaborate and
the
maintenance;of
logistics
arrangement
and market.
maintenance;
logistics
arrangement
and
market.
application
of
IoT
from
four
perspectives
of
component
and
reliability;
airlines
engineering
and
©
2019,
IFAC
(International
Federation
of
Automatic
Control),
Hosting
by
Elsevier
Ltd.
All
rights
reserved.
maintenance;
logistics
arrangement
and
market.
application
of
IoT
from
four
perspectives
of
component
and
reliability;
airlines
engineering
and
©
2019,
IFAC
(International
Federation
of
Automatic
Control)
Hosting
by
Elsevier
Ltd.
All
rights
reserved.
©
2019, IFAC (International
Federationand
of Automatic
Control), Hosting by Elsevier Ltd. All rights reserved.
maintenance;
logistics
arrangement
market.
©
2019,
(International
Federation
of
Control),
by
Ltd.
reserved.
maintenance;
logistics
arrangement
and
market.
©
2019, IFAC
IFACInternet
(International
Federation
of Automatic
Automatic
Control),
Hosting
by Elsevier
Elsevier
Ltd. All
All rights
rights
reserved.
Keywords:
of
things,
Inventory
Pooling,
RadioHosting
Frequency
Identification
(RFID),
Real-Time
Keywords:
Internet
of things,
Inventory
Pooling,
Radio
Frequency
Identification
(RFID),
Real-Time
©
2019,
IFAC
(International
Federation
of
Automatic
Control),
Hosting
by
Elsevier
Ltd.
All
rights
reserved.
Keywords:
Internet
of
things,
Inventory
Pooling,
Radio
Frequency
Identification
(RFID),
Resource
Sharing,
Aviation
Industry
©
2019,
IFAC
(International
Federation
of
Automatic
Control),
Hosting
by
Elsevier
Ltd.
All
rights
reserved.
Keywords:Sharing,
InternetAviation
of things,
Inventory Pooling, Radio Frequency Identification (RFID), Real-Time
Real-Time
Resource
Industry
Resource
Aviation
Industry
Keywords:
Internet
of
Inventory
Resource Sharing,
Sharing,
Industry
Keywords:
InternetAviation
of things,
things,
Inventory Pooling,
Pooling, Radio
Radio Frequency
Frequency Identification
Identification (RFID),
(RFID), Real-Time
Real-Time
Resource
Sharing,
Aviation
Industry

Internet
of
things
(IoT)
and
Industry
4.0
revolutions
change the
Resource Sharing, Aviation Industry

Internet of things (IoT) and Industry 4.0 revolutions change the
1.
INTRODUCTION
Internet
of
things
(IoT)
and
Industry
4.0
revolutions
the
1. INTRODUCTION
paradigms
in
logistics
and
operations
management.
The main

Internet
of things
(IoT) and
and operations
Industry 4.0management.
revolutions change
change
the
paradigms
in logistics
The main
1.

1. INTRODUCTION
INTRODUCTION
paradigms
in
logistics
and
operations
management.
The
main
Internet
of
things
(IoT)
and
Industry
4.0
revolutions
change
contributions
of
IoT
to
logistics
are
in
warehousing,
Inventory
management
of
spare
parts
for
complex
products
paradigms
in
logistics
and
operations
management.
The
main
of things
4.0 are
revolutions
change the
the
contributions
of(IoT)
IoT and
to Industry
logistics
in warehousing,
Inventory
management of spare parts for complex products Internet
1.
INTRODUCTION
INTRODUCTION
contributions
of
to
logistics
are
in
Inventory
management
spare
for
products
in
and
management.
The
main
transportation,
and
inventory
for increasing
such1.as
as aircraft
aircraft
is crucial.
crucial.of
Widebody
commercial
aircraft
with paradigms
contributions
of IoT
IoT
tooperations
logistics
are efficiency,
in warehousing,
warehousing,
Inventory
management
ofWidebody
spare parts
parts
for complex
complex
products
paradigms
in logistics
logistics
and
operations
management.
Thesafety,
main
transportation,
and
inventory
for increasing
efficiency,
safety,
such
is
commercial
aircraft
with
transportation,
and
inventory
for
increasing
efficiency,
safety,
such
as
aircraft
crucial.
Widebody
commercial
aircraft
with
contributions
of
to
logistics
are
in
and
security of operations
Real-time
monitoring
Inventory
management
spare
parts
for
complex
products
more
than
one is
million
parts
includes
several
modules
and
and
inventory
forreport).
increasing
efficiency,
safety,
such
asthan
aircraft
ismillion
crucial.of
Widebody
commercial
aircraft
with
contributions
of IoT
IoT
to(DHL
logistics
are
in warehousing,
warehousing,
Inventory
management
of
spare
parts
for
complex
products
and security of operations
(DHL
report).
Real-time
monitoring
more
one
parts
includes
several
modules
and transportation,
and
security
of
operations
(DHL
report).
Real-time
monitoring
more
than
one
million
parts
includes
several
modules
and
transportation,
and
inventory
for
increasing
efficiency,
safety,
controlling
of
the
manufacturing
process,
traceability
of
such
as
aircraft
is
crucial.
Widebody
commercial
aircraft
with
components
with
the
long
physical
life
cycle.
According
to
and
security
of
operations
(DHL
report).
Real-time
monitoring
more
than
one
million
parts
includes
several
modules
and
transportation,
and
inventory
for
increasing
efficiency,
safety,
controlling
of
the
manufacturing
process,
traceability
of
such as aircraft
is crucial.
aircraft with
components
with
the longWidebody
physical commercial
life cycle. According
to
controlling
of
the
manufacturing
process,
traceability
of
components
with
the
long
physical
life
cycle.
According
to
and
security
of
operations
(DHL
report).
Real-time
monitoring
the
items
through
the
supply
chain,
avoiding
shortage
and
more
than
one
million
parts
includes
several
modules
and
Nowlan
and
Heap,
(1978),
89
%
of
the
aircraft
components
controlling
of the
traceability
of
components
with
the
long
physical
cycle.
to the
and security
of operations
(DHLchain,
report).process,
Real-time
monitoring
items
through
the manufacturing
supply
avoiding
shortage
and
more
than
million
parts
modules
and
Nowlan
andone
Heap,
(1978),
89 includes
% of life
theseveral
aircraftAccording
components
the
items
through
the
supply
chain,
avoiding
shortage
and
Nowlan
and
Heap,
(1978),
89
%
of
the
aircraft
components
and
controlling
of
the
manufacturing
process,
traceability
of
misplacement
and
effective
planning
and
collaboration
among
components
with
the
long
physical
life
cycle.
According
to
require
unscheduled
maintenance
and
only
11
%
can
be
the items
through
the manufacturing
supply
chain,and
avoiding
shortage
and
Nowlan unscheduled
and with
Heap,the
(1978),
89 % ofand
the only
aircraft
components
and
controlling
of effective
the
process,
traceability
of
and
planning
collaboration
among
components
long physical
life
cycle.
According
to misplacement
require
maintenance
11
% can be
misplacement
and
effective
planning
and
collaboration
among
require
unscheduled
maintenance
and
only
11
%
can
be
the
items
through
the
supply
chain,
avoiding
shortage
and
suppliers
for
decreasing
bullwhip
effects
are
some
of
the
Nowlan
and
Heap,
(1978),
89
%
of
the
aircraft
components
managed
via
scheduled
maintenance
operation
(cited
in
misplacement
and
effective
planning
and
collaboration
require unscheduled
maintenance
11 components
%(cited
can be
the
items for
through
the supply
chain,effects
avoiding
Nowlan
and
(1978),
89 % ofand
the only
aircraft
decreasing
bullwhip
are shortage
some among
of and
the
managed
viaHeap,
scheduled
maintenance
operation
in suppliers
suppliers
decreasing
bullwhip
effects
are
of
the
managed
via
maintenance
operation
(cited
in
misplacement
planning
and
advantages
of and
the effective
application
of IoT
incollaboration
manufacturing
and
require
and
only
11
%
can
be
Kinnison,
2004,
p.11).maintenance
Availability
and
reliability
of
the
parts
suppliers for
forof
decreasing
bullwhip
effects
are some
some among
of and
the
managedunscheduled
via scheduled
scheduled
maintenance
operation
in advantages
misplacement
and
planning
andin
collaboration
among
require
unscheduled
and reliability
only
11 of
%(cited
canparts
be
the effective
application
of IoT
manufacturing
Kinnison,
2004,
p.11).maintenance
Availability
and
the
advantages
of
the
application
of
IoT
in
manufacturing
and
Kinnison,
2004,
p.11).
Availability
and
reliability
of
the
parts
suppliers
for
decreasing
bullwhip
effects
are
some
of
supply
chain
(Liu
and
Sun,
2012;
Fan
and
Zhou,
2011;
Reaidy
managed
via
scheduled
maintenance
operation
(cited
in
are
critical
in
the
aviation
industry.
Moreover,
for
safety
and
advantages
of
the
application
of
IoT
in
manufacturing
and
Kinnison,
p.11).
Availability
and
reliability
the parts
suppliers
for(Liu
decreasing
are 2011;
some Reaidy
of the
the
managed
via
scheduled
maintenance
operation
(cited
in supply
chain
and Sun,bullwhip
2012; Faneffects
and Zhou,
are
critical2004,
in the
aviation
industry.
Moreover,
forofsafety
and
supply
chain
(Liu
and
Sun,
Fan
and
Zhou,
2011;
are
critical
in
the
aviation
industry.
Moreover,
for
safety
and
the
application
IoT
in
manufacturing
and
et
al., 2015).
Kinnison,
2004,
Availability
and
reliability
the
meeting
the
requirements
of authorities,
traceability
ofparts
the advantages
supply
chainof
Sun, 2012;
2012;of
2011; Reaidy
Reaidy
are
critical
inrequirements
thep.11).
aviation
industry.
Moreover,
forof
and
advantages
of(Liu
theand
application
ofFan
IoTand
in Zhou,
manufacturing
and
Kinnison,
2004,
p.11).
Availability
and
reliability
ofsafety
theof
parts
al., 2015).
meeting
the
of authorities,
traceability
the et
et
al.,
2015).
meeting
the
requirements
of
authorities,
of
the
chain
and Sun,
2012;
Zhou,
Reaidy
are
the
aviation
for
parts
is essential
(Keivanpour
and
AitMoreover,
Kadi,traceability
2015).
et
al.,application
2015).
meeting
thein
of and
authorities,
of and
the supply
supply
chain (Liu
(Liu
2012; Fan
Fan and
and
Zhou, 2011;
2011;
Reaidy
are critical
critical
inrequirements
the(Keivanpour
aviation industry.
industry.
for safety
safety
and
parts
is essential
AitMoreover,
Kadi,traceability
2015).
The
ofand
IoTSun,
in maintenance
is optimising
predictive
The
application
of
IoT
in
maintenance
is
optimising
predictive
parts
is
essential
(Keivanpour
and
Ait
Kadi,
2015).
et
al.,
2015).
meeting
the
requirements
of
authorities,
traceability
of
the
parts
is essential
(Keivanpour
Ait Kadi,
2015).for airlines,
al.,
2015).
The
application
of
IoT
in
maintenance
is
optimising
predictive
meeting
thetorequirements
of and
authorities,
traceability
of the et
and
scheduled
maintenance
via
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Copyright
©
2019
IFAC
2393
2405-8963
©
IFACand
(International
Federation
by Elsevier
AllThe
rightsrest
reserved.
availability
of theLtd.
fleet.
of the paper is organised as
as
cooperative
pooling,
commercial
pooling.of Automatic Control)
Copyright
© 2019,
2019
IFAC
2393Hosting
Copyright
2019 responsibility
IFAC
2393Control.
Peer review©
of International Federation of Automatic
Copyright
©under
2019 IFAC
2393
10.1016/j.ifacol.2019.11.556
Copyright
© 2019 IFAC
2393
Copyright © 2019 IFAC
2393
2019 IFAC MIM
2344
Berlin, Germany, August 28-30, 2019
S. Keivanpour et al. / IFAC PapersOnLine 52-13 (2019) 2343–2347
follows: Part 2 discusses the cooperative strategies and
inventory pooling in the aviation industry. Part 3 provides a
brief review of IoT and RFID in inventory management. Part
4 analyses the implantation of IoT in four cooperative
strategies and the impacts on availability and cost. Part 5
concludes with some remarks and the future research prospect.
2.
COOPERATIVE
STRATEGIES
AND
INVENTORY POOLING IN AIRCRAFT SPARE
PARTS MANAGEMENT
According to Kilpi et al. (2009, p.362), there are four generic
practices for providing aircraft spare parts. The first practice is
sourcing spare parts from in-house. In ad-hoc cooperation, two
airlines with a similar demand and efficient logistics
connection could share their resources and decrease the costs
of inventory. In inventory pooling, the parties agree upon
sharing resources in terms of gain for each party, logistics
arrangement and decision regarding stockout condition. In the
fourth practice, spare parts inventory will be outsourced to a
third-party agent. This agent controls and monitors spare parts
management between airlines and the related fees and
obligations for delays should be determined in an agreement
between partners. The cost of availability could be defined as
follows:
𝐶𝐶 = 𝑓𝑓(𝑅𝑅𝑐𝑐 , 𝑆𝑆𝑙𝑙 , 𝑇𝑇, 𝑁𝑁)
Eq. (1)
Where 𝐶𝐶 is the cost of spare parts for airlines which is a
function of the reliability of the component (𝑅𝑅𝑐𝑐 ), the target
service level (𝑆𝑆𝑙𝑙 ), total time from the failure of the component
to completion of repairment and readiness of the component
for backing to the service (𝑇𝑇) and the number of units that
supported by spares (Kilpi et al., 2009).
Table 1 summarises these four strategies, configuration, and
related logistics aspects.
Table 1: Four cooperative strategies for aircraft spare parts
management
between partners by real-time information sharing and this
communication reduces the risk and avoids any breakdown or
delay in operation. Research on the application of IoT in
logistics and operations management is growing. However, the
studies that provide case studies or real application are few.
The implication of IoT on inventory management is discussed
more on continues inventory location tracking (Atzori et al.,
2010); increasing the accuracy of inventory information (Da
Xu et al., 2014; Sun, 2012); integration into vendor-managed
inventory system (Lee and Lee, 2015) and flexibility and
agility in spare parts and inventory management (Jia et al.,
2012). There are few research works that focus on the
application of IoT and RFID in spare parts inventory
management. Liu and Sun (2011) discussed the management
of information flow in automobile parts vendors with IoT.
Mathaba et al. (2017) studied IoT and Web 2.0 in inventory
management. In another study, Zheng and Wu (2017)
addressed smart spare parts management in semiconductor
manufacturing and Lee et al. (2018) developed a model for
analysing IoT enabled warehouse management with the fuzzy
rule-based model. Yerpude and Singhal (2018) also assessed
the application of IoT in warehouse management.
There are different techniques for inventory controlling and
monitoring. Various indicators could be used for this purpose
such as the source of the parts or material, lead time, order
costs, holding cost, part movement, unit cost of material and
criticality of the items. Applying data mining tools for
classification and clustering of IoT’s big data based on
different inventory control measures could aid in optimal
inventory planning. The data collected from RFID and sensors
is considered as big data from volume, the velocity of
generation and the variety of type. The application of data
mining in IoT architecture, service, and related decision
support systems is considered by several scholars (e.g. Bin et
al., 2010; Tsai et al., 2014; Chen et al., 2015 and Mahdavinejad
et al., 2017). The synthesis of literature is summarized in Table
2 based on four control goals in inventory management;
effectiveness, efficiency, accuracy and compliance and three
control plans including preventive, detective and corrective.
Table 2: Four control goals in Inventory management and
control plan with IoT capability
3.
IOT AND RFID IN INVENTORY MANAGEMENT
Kennedy et al. (2002) provided a literature review on spare
parts inventory management. The authors discussed the role of
internet communication between key players in providing
equipment history and accurate prediction or parts
replacement. IoT could provide enhanced communication
2394
4.
THE EFFECT OF IOT ON COST AND
AVAILABILITY OF AIRCRAFT SPARE PARTS
2019 IFAC MIM
Berlin, Germany, August 28-30, 2019
S. Keivanpour et al. / IFAC PapersOnLine 52-13 (2019) 2343–2347
In this part, the contribution of IoT to costs and availability is
discussed. This contribution could be analysed from four
perspectives: components and reliability, airline engineering
and maintenance, logistics arrangement and market. In the
following sub-sections, each aspect is discussed. Van Rijssel
(2016) performed a case study analysis on KLM engineering
and maintenance to assess the opportunity of decreasing
turnaround time (TAT) for aircraft component services. For
analysing the impacts of IoT on spare parts management, the
workflow and process of KLM engineering and maintenance
provided by Van Rijssel (2016) are used. The availability of
the fleet is determined by aircraft maintenance, component
service, and engine service operations.
OLAP (online analytical processing) powered by data mining
could be used for analysing multidimensional data via
different slicing and drilling up/down of data cells. Figure 1
shows the configuration of the data collection module and
multidimensional data processing for real-time reliability
updates.
The maintenance operation is performed for KLM aircraft and
the other customers (external pool). The process of MRO
(Maintenace, repair, and operation) will be initiated by
customer request. The failed component is received by the
logistics centre, and check-in process and the other
administration processes will be performed. Then, the
component will be sent to the MRO provider to perform the
required operation. At this point, the component will be
returned to the logistics centre or customer. All of these
processes could determine TAT.
4.1. Component and Reliability
The reliability of aircraft components directly impacts the need
for spare parts. Meantime Between Unscheduled maintenance
(MTBUR) is an important measure for finding the demand for
spares. Estimation of the residual lifetime of the component is
a critical indicator for the reliability of the part. This indicator
could be estimated based on the Original Equipment
Manufacturers (OEM) design features, maintenance
operations history and the operation conditions of the
components.
According to Yongquan et al. (2016), most of the studies on
spare parts inventory management are based on analysing
historical data and condition monitoring information. The
authors proposed a model based on analysing the reliability of
data for inventory management of spare parts of new aircraft
with little historical data. Lin et al. (2017) also proposed multiobjective decision making with real-time conditioned-based
monitoring for optimising aircraft structure maintenance.
From this perspective, analysing real-time reliability data
could be a reliable approach to order the decision-making
process.
Analyzing the related siloed databases has a deficiency for
upgrading and precise information of reliability of the parts
and components. A repository of historical maintenance data
(overhaul and inspections records), design data and operations
data sourced from multiple information systems is required.
Data mining, machine learning, and aggregation can provide
insights into the real-time estimation of a residual lifetime of
the components. Furthermore, a real-time stream of the
operational data could be fed to provide actual reliability and
correspondingly, the actual demand for spare parts. The realtime data could be collected via RFID, operational sensors and
WSN (wireless sensor network).
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Fig 1: Configuration of data collection module and data processing
4.2. Airline engineering and maintenance
According to Kilpi et al., 2004 and Kilpi et al., 2009, the role
of the airline is essential as it could determine the target service
level and turnaround time (TAT). When a customer initiates a
request to engineering and maintenance department, the
process will be triggered. Hence, the first part is the interface
between the airline and the other airline or third party that
requests a service. Real-time information sharing between
partners and integrating the databases can decrease the
interface costs. The logistic centre receives the package from
the customer and performs initial pre-processing including,
checking, unwrapping and entering the information into the
information system. Using RFID in this step can automate the
process and decrease the time of working process at logistic
centre.
According to Van Rijssel (2016, p.93), this centre does not
have information regarding the capacity of different shops and
sends all unserviceable items to the shop. Using RFID and IoT
at avionics and accessories department, base maintenance
support shops and other MRO providers could improve the
performance of the logistics centre. Accessing real-time data
from these departments and using an appropriate decision
support tool could address the destination of the package
effectively. The impact of RFID, sensors, and IoT could be
highlighted at MRO centre. When the package is delivered to
MRO as a batch, and after checking and paperwork, it will be
transferred to a buffer (Van Rijssel, 2016). Then, the
maintenance operation by the technician will be done, and the
required testing and certifying will be performed. Finally, the
repaired item will be sent to the logistics centre and then, the
customer.
Kelepouris et al. (2007) analysed the contribution of RFID in
traceability of the food supply chain. Like the role of
traceability in the food supply chain, the traceability in MRO
workflow is critical. The authors specified the traceability
capability provided by RFID in the supply chain and logistics.
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These requirements are used in this study to confirm the role
of RFID at MRO department. First, RFID can provide a unique
identification of the repairable item and provide more
information related to reliability. Second, automatic
identification and detection of batches during the maintenance
operation could be obtained. Third, effective observation of
the item from receiving point to performing repairment by a
technician and delivering to the logistics centre could decrease
the labour costs. Figure 2 shows the enabled IoT workflow in
avionics and accessories.
RFID Tags
Customer
Customer
Antenna
RFID Tags
Antenna
Preprocessing
Checking
Decision
making
Processing
Transferring to buffer
Repairment operation
Avionics and
accessories
Base
maintenance
support shop
Testing
MRO
Certifying
Logistics Center
MRO
analytics and artificial intelligence could help in analysing the
imperfections in the spare parts market. In cooperative pooling
and commercial pooling, as the number of partners is
augmented, the importance of real-time market data analysis is
increased.
5.
DISCUSSION AND CONCLUSION
Hu et al. (2018) performed a systematic literature review on
operations research in spare parts management. The authors
proposed a framework for assessing the literature. In this
framework, three objectives of maximising the availability of
spares for maintenance and repairs, minimising the economic
costs and environmental impacts are mentioned as the main
objectives of the spare parts management models. For normal
operations, inventory management, forecasting ongoing
demand, optimising system parameters and replenishment
quantities are the main decisions for optimising spare parts
management. IoT could facilitate these operations via realtime monitoring, collaborative multi-actor framework, and
data analytics. Visibility, effectiveness and efficiency during
inbound logistics, storage of spare parts and outbound logistics
could provide optimising replenishment and adjusting
inventory.
Fig 2: Avionics and accessories workflow with IoT
4.3. Logistics arrangement
The logistics arrangement between partners in ad-hoc strategy,
cooperative pooling and commercial pooling is essential. Kilpi
et al. (2009, p.362) defined handling cost as “the costs cover
the on-site per-transaction costs that arise when a spare unit is
needed.” This cost includes the cost of acquiring and
transferring the spare parts. For the insourcing option or one
base, the logistics arrangement of the airline should be
considered. However, for multi-partners arrangement such as
cooperative or commercial pooling, the location of the partner
and the structure of the collaborative network play a crucial
role in the costs of transferring the spare parts and the related
flight delays as the results of unavailability of spare parts. IoT
and traceability of the spare parts facilitate synchronisation of
data between pooling partners. Using RFID powered by GPRS
(General Packet Radio Service) or GPS (Global Positioning
System) could provide real-time data exchange from picking
up the spare part to transferring and delivering to the target
partner. Gnimpieba et al. (2015) proposed an IoT-enabled
architecture for tracking pallets and containers. The authors
discussed the application of RFID, GPS and cloud computing
in automatically notifying the different logistics partners
regarding the logistics events. In the case of cooperative and
commercial pooling, the enabled IoT logistics powered by
GPRS or GPS could control delivery lead time and related
flights delay costs.
4.4. Market
There are different sources of uncertainties in aircraft spare
parts management. The component price, lending fee and
market of spare parts. IoT and big data analytics provide the
opportunity of resolving business issues and dealing with
uncertainties in the market (Lee and Lee, 2015). Big data
Moreover, real-time condition monitoring could optimise
forecasting of spare parts. In this study, the implications of IoT
in aircraft spare parts inventory management is analysed. The
workflow processes of KLM engineering and maintenance
department is used to validate the impact of RFID and IoT in
reducing the inventory cost and improving service availability.
This research is an introduction and exploratory step toward
aircraft spare parts inventory in Industry 4.0 paradigm. Using
real case study or numerical example for showing this impact
on costs and availability is proposed as future research.
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