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Running an MRO: capacity, contracts and performance-based logistics

Hangar capacity and approval scope, pricing models, maintenance contracts and responsibilities, performance-based logistics and KPIs, subcontractor oversight, business cases and leading production teams. Part 3 of the Modern MRO series.

By Aerospace Garage Desk · Managing it · 50 minutes · 24 narrated pages

  1. Part 1 · Basics

    Aircraft MRO: maintenance, repair and overhaul in practice

  2. Part 2 · In practice

    Digital work packages, parts and turnaround

  3. Part 3 · Managing it

    Running an MRO: capacity, contracts and performance-based logisticsYou are here

  4. Part 4 · What's next

    The MRO of 2030: prediction, robotics, augmented reality and drone inspection

Modern MRO · all 4 parts US$59 (save US$12) · See the Flight Path →

What you will be able to do

  • ✓ Plan annual hangar capacity in bay-days against demand, seasonality and a utilisation ceiling, and test requests against approval scope and certifying staff.
  • ✓ Compare time and materials, fixed-price, hybrid and flight-hour pricing, and calculate the findings ratio at which a fixed price stops paying.
  • ✓ Draft and review maintenance contract clauses on scope, findings, turnaround, warranty, liability, parts and records, keeping airworthiness responsibility with the operator.
  • ✓ Design performance-based contracts and KPIs with precise definitions, symmetric incentives and safeguards against trading airworthiness for speed.
  • ✓ Oversee contracted and subcontracted maintenance under European and US rules, using the findings of NTSB report AAR-97/06 on ValuJet Flight 592.
  • ✓ Build a business case for new capability and lead a production team through competence control, shift structure and reporting culture.

Course content

Session 1 · Capacity: what a maintenance organisation sells

1.1

  1. The capacity question · free preview
  2. The annual capacity plan: bay-days and buffers
  3. Scope of approval and the capability matrix
  4. Worked example: balancing a year of hangar demand
Session 2 · Pricing maintenance: who carries the risk

1.2

  1. What a check costs, and who carries the risk
  2. Time and materials, fixed price and the hybrids
  3. Flight-hour agreements and component pools
  4. Worked example: fixed price or time and materials?
Session 3 · Contracts: scope, findings and responsibility

1.3

  1. The contract does not move responsibility
  2. Clauses that decide disputes
  3. Who decides what: CAMO and maintenance organisation
  4. Worked example: reviewing a draft maintenance agreement
Session 4 · Performance-based contracts and KPIs

1.4

  1. Buying outcomes, not hours
  2. The KPIs that matter, and how to define them
  3. Designing incentives that reward the right thing
  4. Worked example: reading a component support dashboard
Session 5 · Subcontracting and oversight

1.5

  1. Work you hand to others
  2. Overseeing suppliers: select, audit, monitor
  3. Commercial pressure and the independent voice
  4. From the investigation file: ValuJet Flight 592
Session 6 · Growing capability and leading the production team

1.6

  1. When to grow: choosing a new capability
  2. Building the business case
  3. Leading the production team
  4. Worked example: an in-house wheel and brake shop

Who this course is for

Upskill courses are for professional development and are not approved by any aviation authority. Learner Terms

Course content © Aerospace Garage Limited. All rights reserved.