ENHANCED DEPOT LEVEL MAINTENANCE OF DEFENSE AEROSPACE ASSETS THROUGH SUPPLY CHAIN MANAGEMENT TRANSFORMATION

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1 ENHANCED DEPOT LEVEL MAINTENANCE OF DEFENSE AEROSPACE ASSETS THROUGH SUPPLY CHAIN MANAGEMENT TRANSFORMATION By SAMIR CHABRA INDUSTRIAL TRIBOLOGY, MACHINE DYNAMICS AND MAINTENANCE ENGINEERING CENTRE (ITMMEC) Submitted In fulfillment of the requirement of the degree of DOCTOR OF PHILOSOPHY to the INDIAN INSTITUTE OF TECHNOLOGY DELHI DECEMBER 2011

2 DEDICATION This work is dedicated to my mother for being a source of inspiration

3 ACKNOWLEDGEMENTS Any accomplishment requires the effort of many people and this work is no different. I am most grateful to my guides Prof. O.P. Gandhi and Prof. S.G. Deshmukh for their teachings and encouragement. Their guidance, practical illustrations and painstaking efforts have had an indelible and lasting effect on this work. I am deeply grateful to Prof. Naresh Tandon, Head ITMMEC and chairman SRC for positive influence and invaluable inputs on many different aspects of this work. I am thankful to other members of my SRC- Dr. V.K. Agarwal and Dr. Vipul Jain for their profound interest, helpful comments and suggested improvements. I also express my gratitude to Late Prof. Arun Kanda, SRC member, for his guidance during the initial stages of this work and deeply mourn his untimely demise. I am also thankful to Prof. J. Bijwe and Dr. R.K Pandey for their involvement and help during the course of this work. I wish to thank Indian Air Force and express my gratitude to Air Commodore Kuldeep Sharma VSM and Group Captain P.S. Sarin for providing support. I am thankful to my colleagues in IAF for responding to questionnaires and helping me in data collection. I also thank my colleagues who may have contributed to this work, even though anonymously. I thank my wife Shveta and children Bhasit and Medhavin, whose understanding and support have been instrumental in accomplishing this task. December 2011 (Samir Chabra)

4 ABSTRACT The enormous dimension, in terms of investments, technology, lifespan and end use of aerospace assets makes maintenance an important business process in defense aerospace environment. The repair depots in defense aerospace environment, from defense customer's perspective, can play a pivotal role in upstream and downstream integration for providing cost efficient and responsive maintenance support. The focus of this research has been to study how to enhance the depot level maintenance of military aerospace assets through supply chain management transformation. An endeavor towards enhancing effectiveness of depot level maintenance can help in getting better return on investment on defense aerospace assets through better preparedness and utilization of these assets. The current literature on defense aerospace, supply chain management and maintenance engineering does not provide enough focus on some of the important maintenance related issues and supply chain concerns in defense aerospace environment. This work has attempted to address certain important supply chain management and maintenance engineering issues relevant to depot level maintenance by taking a process centric view. The work has proposed a process reference model for defense aerospace maintenance, mapped depot level maintenance processes and proposed a set of hierarchical performance metrics for depot level maintenance. The work has also proposed a formulation for target setting and spares forecasting for depot level maintenance. Besides this, frameworks for strategic analysis of competitive factors and sourcing strategy for spares required for depot level maintenance have been suggested. V

5 The objectives have been accomplished through a combination of an analytical and an empirical approach. A study was carried out at a major repair depot undertaking repair and overhaul of modern combat aircraft to understand the processes in defense aerospace maintenance. Based on the inputs from domain experts, a process reference model for defense aerospace maintenance has been proposed. The proposed process reference model constitutes of six major process types and fifteen process categories. Further, the process mapping of depot level maintenance in defense aerospace has been carried out with the inputs from domain experts to identify performance metrics, execution sequence and resources required. A total of thirty four metrics at process level have been identified and these have been further linked to seventeen metrics at the plant level and nine metrics at the organization level. Together, a total of sixty hierarchical performance metrics have been proposed to measure depot level maintenance in defense aerospace. This research work has also proposed a spares forecasting model for depot level maintenance. The proposed framework captures important variables of spares forecasting and their inter-dependencies and developing a deterministic empirical relationship among these variables. The action research attempts to serve the purpose of enhancing depot level maintenance in military aviation environment. Key Words: Defense Aerospace Maintenance, Depot Level Maintenance, Supply Chain Management, Process Reference Model, Performance Measurement System, and Spares Forecasting. vi

6 CONTENTS Certificate Acknowledgement Abstract Contents List of Figures List of Tables Abbreviations Notations i iii v vii xi xiii xv xvii CHAPTER I: INTRODUCTION Defense Aerospace Supply Chains Importance of Aerospace Asset Management Need for Supply Chain Orientation Role of Information Technology Contrasting Characteristics of Defense Aerospace Supply Networks Motivation Thesis Organization Summary 1.18 CHAPTER II: LITERATURE REVIEW Approach Classification and Analysis Classification Based on Research Methodology Temporal Classification Classification Based on Affiliation 2.9 vii

7 2.2.4 Classification Based on Contents Review of Articles Supply Chain Management Comments on Supply Chain Management Literature Performance Measurement System Comments on Performance Measurement System Literature Spares Forecasting Comments on Spares Forecasting Literature Defense Aerospace Comments on Defense Aerospace Literature Maintenance Engineering Comments on Maintenance Engineering Literature Research Gaps Problem Formulation Research Objectives Research Activities Summary 2.38 CHAPTER III: MAINTENANCE OF DEFENSE AEROSPACE ASSETS Changing Focus of Aerospace Maintenance Maintenance Actions Maintenance Strategy Aspects of Maintenance Strategy for Defense Aerospace Maintenance Concepts Depot Level Maintenance Resources Work Flow in Depot Level Maintenance Challenges in Defense Aerospace Maintenance Summary Contribution 3.17 VIII

8 CHAPTER IV: PROCESS REFERENCE MODEL FOR DEFENSE AEROSPACE MAINTENANCE Process Reference Model Need for Process Reference Model Limitations of Existing SCOR 9.0 Model Development Approach for Proposed Process Reference Model Proposed Process Reference Model Utility and Potential of Process Reference Model Framework for Analyzing Defense Aerospace Supply Chains Sourcing Strategies in Defense Aerospace Maintenance Summary Contribution 4.31 CHAPTER V: PERFORMANCE MEASUREMENT OF DEPOT LEVEL MAINTENANCE Maintenance Performance Measurement Existing Performance Metrics Drawbacks of Existing Performance Metrics Development Approach Depot Level Maintenance Processes Proposed Metrics for Depot Level Maintenance Proposed Process Level Metrics Proposed Plant Level Metrics Proposed Organizational Level Metrics Utility of Proposed Metrics Summary Contribution 5.37 ix

9 CHAPTER VI: SPARES FORECASTING FOR DEPOT LEVEL MAINTENANCE 6.1 Importance of Spares Forecasting 6.2 Classification of Forecasting Methods 6.3 Forecasting of Spares for Depot Level Maintenance 6.4 Case Study of Spares Forecasting 6.5 Inventory Policy 6.6 Typical Issues in Spares Forecasting 6.7 Summary 6.8 Contribution CHAPTER VII: SUMMARY, CONCLUSION AND SCOPE FOR FUTURE WORK Summary 7.2 Tangible Benefits 7.3 Implementation Roadmap 7.4 Contribution 7.5 Limitations 7.6 Scope for Future Work References Appendix A: `Processes of Proposed Process Reference Model' Appendix B: `Sample Process Record' Appendix C: `Questionnaire on Spares Forecasting in Defense Aerospace Domain' Rio-data of the Researcher R1-R18 Al-A7 B1-B8 C1-05 BD1-BD2 x

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