Maintenance, Repair and Overhaul (MRO) Fundamentals and Strategies: An Aeronautical Industry Overview

Abstract

The purpose of this paper is to present the maintenance, repair and overhaul (MRO) and aeronautical industry literature review, providing insights related to strategies of MRO business models. The fundamentals of MRO services and the aeronautical industry have been identified through an extensive literature review. The impact of the MRO outsourcing model was then investigated from the perspective of each stakeholder (aircraft original equipment manufacturers -OEMs, repair shops, system suppliers and airlines) using a SWOT (strengths, weaknesses, opportunities and threats) analysis. First, MRO basic concepts were identified: how FAA (Federal Aviation Administration) classifies repair and how MRO is performed. This study also analyzed a simplified parts and MRO services flow in the aeronautical industry, characterizing two important stakeholders: customers and repair shops. Although the production parts purchasing process is fairly simple, the spare parts process requires more attention due to the many players involved. Finally, the SWOT analysis identified strong competition between stakeholders; however, the investigation indicates that there is a tendency for the market to build partnerships between stakeholders to expand market penetration.

A Conceptual Framework of Strategy Formulation for Aircraft MRO

“…According to the Harvard Business Review (1991), internal factors are divided into two, tangible resources and intangible resources. For example, product quality produces reliable service products which are so important for the MRO, Rodrigues & Lavorato (2016) [12]. Cash flow & working capital become the important thing to running the business to maintain and handle the projects (Barry et al, 1996) [13].…”

The role of industrial actors in the circular economy for critical raw materials: a framework with case studies across a range of industries

“…Moreover, circularity strategies for turbine blades are a natural consequence of the “maintenance, repair, and overhaul” (MRO) business model used by the aviation industry. In this arrangement, the turbine manufacturer retains ownership of—and responsibility for—the turbine and the airline pays for the service provided by the turbine (Lee et al 2008 ; Rodrigues Vieira and Lavorato Loures 2016 ; Rezaei Somarin et al 2018 ). This business-to-business (B2B) arrangement allocates risk in a mutually favorable way, while providing a mechanism for in-service and end-of-life circularity strategies.…”

A System Dynamics Model for Evaluating the Firms’ Capabilities in Maintenance Outsourcing and Analyzing the Profitability of Outsourcing

“…On the other hand, automation enables real-time control, processing, tracking, and production management, while reducing the labor costs and increasing the efficiency and accuracy. When a company invests in automated systems, it should be able to maintain and protect its technology and equipment against failure and early depreciation [3], [4]. Therefore, many factory managers are faced with the difficult decision as to whether they should outsource the equipment maintenance or employ an internal team for this purpose [3] [4].…”

“…When a company invests in automated systems, it should be able to maintain and protect its technology and equipment against failure and early depreciation [3], [4]. Therefore, many factory managers are faced with the difficult decision as to whether they should outsource the equipment maintenance or employ an internal team for this purpose [3] [4].…”