£502,944 in annual savings delivered to Airline Services

A poor workshop layout, outdated process, and incompatible shift patterns were having a detrimental effect on our client's performance.

Established for more than 25 years, Airline Services provides essential maintenance, repair, and overhaul services to more than 100 airlines and aviation businesses in the UK and internationally, including many of the industry’s airlines and aircraft lessors.

Airline Services has been reorganised into 2 businesses offering a range of products and services to aircraft operators and owners in the area of handling and interiors. As part of its Aircraft seat division, they provide seat component manufacture and overhaul service to a variety of major clients within the airline industry.

35%

A 35% reduction in overtime hours against a 10% reduction target set by Management resulting in a saving of £7,850 per month area across 3 areas with a total saving of £23,550 and £282,600 per year.

162

The average job is now completed 4.4 days ahead of plan, (an improvement of 162 days).

£500k+

An average of 26 ship sets are carried out per year with an estimated saving of £19,344 per set, resulting in a yearly saving of £502,944.

£502,944 in annual savings delivered to Airline Services

Results

We worked with the teams to redesign and simplify the layout, focusing initially on product flow with the introduction of a 5S program to simplify the working area.

This resulted in a reduction in headcount, whilst still delivering improved job completion times and yearly savings of £502,944.

Workshop Layouts reorganised resulting inconsistent workflow. Before the activity ship set #9 took 1,365 hours to complete – During the activity the completion rate for ship set #10 reduced to 869 hours resulting to a 34% improvement saving £19,344 per set. (£39/hr).

With an average of 26 jobs per year being completed in 4.4 days resulting in a saving of 114.4 days per year, with the potential to start 10 new jobs with a 10 day lead time.

A process mapping activity and implementation of 102/165 countermeasures resulted in capacity improvement by 15% in unit 21, saving 1.5hours per shift and a total of 22 hours per week allowing additional work to be brought into the business. A total of 1,144hours and £44,616 savings were released per year.

Reduction in headcount through rebalance and new shift structures.

£502,944 in annual savings delivered to Airline Services

Observations

An initial review was carried out by our team, in which the following was identified:

- Key drivers of the poor throughput rate
- Lack of clarity on the work scope required by the customer
- Poor understanding of the daily tasks
- Frequent material shortages disrupting the workflow and output

It was clear that these distractions were combining with poor decision making, leading to low productivity, high levels of rework, high level of production delays, employee overtime, and increased costs.

Our team was engaged in 3 separate work programs with this client, Value Stream Mapping, Process Flow including process mapping, and the introduction of Visual Management including KPI boards at supervisor and workshop level.

£502,944 in annual savings delivered to Airline Services

Objectives

Coaching all supervisors in the benefits of Lean principles with a focus around process mapping, component supply, layout redesign, and the introduction and training of all shop floor personnel with 5S creating a model standard area.

Daily capacity planning was used across the organisation from shift leaders to planning

Management to ensure that the sales team and planners had the correct capacity information for production to achieve their goal.

Process mapping analysis to help capture the concerns and the identification of countermeasures/corrective actions.

Introduction of Workshop delivery meetings, information boards and departmental KPI`s to help provide clarity to the shop floor on its plan vs actual and current status of any individual parts manufactured and the overhaul of seats.

£502,944 in annual savings delivered to Airline Services

Actions

We worked with the teams to redesign and simplify the layout, focusing initially on product flow with the introduction of a 5S program to simplify the working area.

Simplified work areas led to the creation of improved workshop layouts, with less movement and sustainable working conditions for each operation to allow process optimisation.

Deadzone and flow-impairments were removed, freeing up 25% space which improved WIP storage and improve visual control and communication points.