Super Easy Way to Reduce Aircraft Component AOGs With Insurance

Aircraft spare parts is a big deal. The aviation industry spends $5 billion, yes with a B, annually on replenish stock.

Stock is the insurance policy against unplanned removals and it's costly. No wonder so many people are stressed.

According to Oliver Wyman, this has a collective airline sheet balance of $19 billion. And yes, again with a big giant B.

Having the right aircraft components, at the right time, and in the right place is critical. Notice how I left out price?

Overstocking aircraft components isn't the solution

Many airlines have issues with over-insuring less critical and poorly positioned components and under-insuring highly critical components. Olivery Wyman estimates $175 million in similar inefficiencies for one major airline.

A lot of provisioning is organized from the recommended spare parts list (RSPL) from the manufacture. This is not a very bright idea. These lists often overlook the insurance nature of spare assets. It's a good starting point but not a gold standard.

They're typically conservative at best and over inflated at worst.

One solution for a good insurance policy is outsourcing

Airlines have begun relying on third parties to provision their spare parts needs. This improves access to aircraft components while reducing the significant amounts of capital tied up in inventory.

Aerotime explains it perfectly:

"Although maintaining a spare parts stock has long been a routine part of any airline’s life, it seems the situation has been gradually changing for a while now. Under competitive pressure more and more airlines have actually been abandoning the strategy of holding huge and expensive parts stock to support their operations.

In fact, according to the industry experts, the airlines have been reducing their stocks for about 10 years now, if not more. If such a pace remains, it is said that by 2020, the operators will abandon inventory stocking at all, thus switching solely to the offerings from third-party providers. Nevertheless, if this scenario in fact proves to be true, the industry has still a lot to do in order to improve the efficiency, transparency and reliability of such services."

Relying just on a third party isn't a good insurance policy

Outsourcing is a great way to reduce capital tied up on the shelves, but for an effective aircraft component insurance policy, it's not just up to them.

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Oliver Wyman states that for most airlines each day they reduce their cycle time amounts it can translate to $1 million in inventory shed from the balance sheet. Amazing!

In order for you to reduce your capital and AOG pressure, incorporate a better aircraft component insurance strategy into your operations.

Do you need better insurance to cover your AOG needs? Are you in need of spare parts provisioning? Fill out the form below and we'd love to help.

In The News: Farm Waste and Animal Fats Will Help Power a United Jet & Greece Won’t Wreck the Airline Stocks

Your next United flight could be powered by animal droppings

This could be a big step forward for the biofuels industry.

Get ready for a slightly ripe scent on your next United flight — the airline is going to power a plane with animal waste, reports the New York Times.

Original article by Ben Geier

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No, Greece Won’t Wreck the Airline Stocks

Airline stocks like United Continental (UAL), American Airlines (AAL), and Delta Air Lines (DAL) have had a tough year due to some very real concerns around revenue and capacity. Concerns about the impact of Greece on U.S. airlines, however, are largely overblown, say Raymond James analyst Savanthi Syth and team. Check out more here.

Original article by Ben Levisohn

PICTURES: Vietnam Airlines receives first A350

Vietnam Airlines took delivery of its first Airbus A350-900 on 30 June, becoming the second operator of the type.

The carrier plans to first deploy the aircraft on the key Hanoi-Ho Chi Minh City route, before moving to international services such as Hanoi-Paris, says Airbus. Continue here.

Original article by: Firdaus Hashim

How We Build a Team Oriented Approach

It amazes me how most companies survive. They fight and complain internally. The intra company politics eats everyone alive. At these companies people care more about their own self interests than the person whom they rely on the most...their team.

It doesn't matter who you are or what department you're in, if you didn't have the support of your team you’d be non existent.

It's the very thing that makes companies thrive and survive. Still many lack the ability to focus on team building. They claim the "team" is important but is it really?

We by no means were hidden from this in our early days. It plagued everything we did. We made a choice and took a hard left turn that changed our approach entirely.

One of our core values is to "build a team oriented approach" and we focus heavily on this. 

Here are some ways we've been honing in on this approach and you can too:

Focus on teams, not departments

What's the difference between a team and a department? In my opinion a team is a collective group working cohesively to achieve a goal or milestone. This could be on time delivery percentage, revenue or customer happiness.

A department is a collection of people who achieve a departmental goal. They do everything they can to achieve this goal and are barricaded in silos. They're closed off to other departments and only care about their own.

Here at Skylink, we have team descriptors such as sales, purchasing, supply chain & shipping, but each is a collective team with flexibility to make decisions that provide immense value to our entire value stream. Each team is synergistic with the Skylink team and every decision, every role, and every person affects everyone else with what they do and how they act.

[Tweet "Build a team oriented approach like this..."]

Give incredible flexibility

Most of our customers benefit from the flexibility we give. We move fast and can make decisions on the spot. The only way we do this is by being incredibly flexible in house. Our team moves and moves fast. This can’t be achieved with highly political and deep hierarchal organizations.

As a team we can make our own decisions without consulting “managers” who then sit to think about the best option. We make a decision, own it and see it through.

We also do this in other ways. Need a day off, fine we'll cover you. Do you need a new chair to be more productive, fine you got it. Do you have an idea that you think will benefit our supply chain, perfect, let's do it. It's really that simple.

Run from the non conformers

If someone doesn't conform to our culture we run. Wait! We don't run. We simply part ways.

We do not let toxic behavior affect our culture. Every team is different, every dynamic is unique. The way we protect our team is we do not let nonconformist into the team. Sometimes we make a mistake and hire the wrong people but we correct it fast.

We’ve spent a lot of time refining our hiring and training practices and we’re only getting stronger.

Spend time improving and improving others

We all get caught up in the daily hustle and bustle. We do live in the aviation world so it’s expected. Most of the time, we forget to focus on ourselves or to focus on the role we’ve been given. By continuing to learn, we better ourselves, our process and our people. Nobody should go a week without picking up a book and nobody should go a week without taking time out of the day to improve.

Right now I’m on a company tangent of 2 second improvements a day. The idea was given to me by 2 Second Lean. Our goal is to bring something that currently takes us 15 minutes down to 7 minutes. It’s a lean focus mission and we’re all full steam ahead. That’s what improving is all about.

Joint training

We’ve tried the old fashion way of training where you’re given a syllabus and topics that you should know. This doesn’t work. We currently have a joint training initiative that’s in it’s early stages.

If you join the sales team, everyone will be involved in your training. Everyone creates videos and how-tos. They then share them on our intranet. It’s a joint effort and everyone is responsible for everyone's training success. This is why we have 0 need for middle managers. Everyone is a self-managing team.

Innovate, mistakes are okay

In all the years I’ve been leading, it still amazes me how many people are afraid to make decisions and make mistakes. Life is a giant mistake, that’s doesn’t mean it’s bad. Making mistakes allows us to grow and to learn. To innovate and be great.

I make a joke that everyone is free to make their own decisions and make mistakes. Now, if you're making a $50,000 decision I’m curious on what you might be doing but more than likely the team has a great idea. As long as we discuss with people whom are affected by the decision and people who have knowledge in the topic, the team can make any decision they want.

This is what innovating is all about. Create, measure, and learn.

Building a team is tough. It’s a constant roller coaster ride of emotions. The fact is that everything great in life is difficult at first. Our team is amazing and I get up excited and thrilled to go into work every day. Skylink is our sanctuary and it feels great to build a team oriented approach.

Are you in need of a supply chain team? Fill out the form below and we would love to help.

Inside Skylink With Ray Sweet

Where are you from?

Columbus, OH

What brought you to Skylink?

I was looking for a position in the aviation field and they gave me a chance. I love the team and the role is great too!

What do you love about aviation?

The freedom. I've only been at the controls of two aircraft, but I always enjoy being in the sky and having a full view of the world below and everything above.

Who is your hero? Why?

My hero would be my dad. Because he has always done the best with what he was given and that's a principle that has definitely helped me think critically when facing any challenge.

What's your favorite book?

My favorite book would be anything history related. I like to know what's happened in the past and how it influences the norms that we have now.

What inspires you?

This is deep! I would have to say having the courage to say and do the right thing at the right time is always moving.

What’s your favorite drink currently in your fridge?

Chocolate milk. Always gives me energy when I need it.

What’s a tool or trick you use to make life easier?

A trick I use to make life easier is to make a list of what I need and knock it out little by little.

If you were a superhero, what would be your name and superpower?

If I were a superhero I would want the power to speak things into existence. My name would still be Ray Sweet.

In The News: Air Drops To Your Front Door, Quieter Skies, and Hypersonic Aircraft

Air Drops Right To Your Doorstep

Imagine getting a last minute gift right to your doorstep just in time. With the advances in aviation with drone technology and Amazon, this can become a reality next year. Check it out here.

Original article by Mike Murphy

The Skies Are Getting Quieter

The aviation world is achieving great strides in making our skies less noisy. Check out how we’re inching closer to Prius filled skies here.

Original article by Geoffrey Lean

US Air Force and DARPA Building Hypersonic Aircraft

The next generation of flight is closer than you think. Check out here what the US Air Force and DARPA are up to in making comic book fiction into a reality.

Original Article by Jenna Pitcher

4 High-Value Benefits You’ll Adopt Today With A Flight Data Readout Solution

Let’s get it out in the open. Managing your flight data is burdensome. From you having to meet government regulations and managing the FDR to performing once a year flight data readouts and translating the data, things get costly. Even worse, it’s time consuming.

How much time do you really have?

You can drain excessive amounts of money into expensive programs and software but that’ll just make it more complicated and tedious for you. Now that’s no fun.

We’ve talked many times about outsourcing certain tasks and this is one of them.

Take advantage of a flight data readout strategy and win

When you outsource your readout strategy to a competent supply chain partner, here are the benefits you can expect to receive:

Reduce Costs

New and expensive software and hardware are required to accomplish readouts. The equipment has a steep learning curve that sucks more of your valuable time and energy from your hectic day. With outsourcing, you’re able to save the two most important aspects of your operation. Time and money.

Reduce Risk

If you don’t have time to learn and train on the new software, who is going to do the work for you? Labor and training costs are expensive. I’m sure they already take up a large portion of your operating budget.  Worst of all it’s risky. What if things change, someone leaves, new software comes out, are you prepared to retrain? You can eliminate this risk entirely.

Increase Productivity

With an outsourced and streamlined readout solution, it becomes one less thing to worry about in your busy day. This frees you and your personnel to focus on other main aspects of your busy workload. Since this is a task that’s infrequent, you don't have to tie up labor and bottleneck other operational activities. Keep your people for the critical activities.

Increase Efficiency

There is no excuse in failing your requirements for your annual and bi annual FDR readout if outsourced. Not only will you make yourself more efficient, you’ll also make your maintenance engineers more efficient by allowing them to focus on maintenance rather than analyzing flight data.

Forget managing your own flight data and forget having to spend bookoo bucks for OEM fees. Start looking into the idea of outsourcing this task to a trusted supply chain partner.

If you’re really interested, take a look at our flight data readout service here and see the many other benefits you can experience.

IF YOU PREFER TO TALK TO SOMEBODY ABOUT REDUCING COSTS, RISKS AND INCREASING PRODUCTIVITY FILL OUT THE FORM BELOW AND WE’LL BE IN TOUCH.

Inside Skylink With Colin Wilcox

Where are you from?

The humble suburbs of Northwest Chicago

What brought you to Skylink?

Aviation is in my blood. With both parents being pilots and first hand experience with an experimental aircraft build/flight, Skylink catered to my love of aviation.

What do you love about aviation?

The ability for man to break the laws of nature and push the boundaries of physics and speed.

Who is your hero? Why?

My father is my hero. He was a pilot for United Airlines for 20 years and for Eastern Air Line before that. We built a Vans Aircraft RV-4 in our basement thanks to his wild obsession. He put his heart and soul into the aerospace industry and it gave him back everything he could ever want and more!

What is your favorite book?

My favorite book is Blink by Malcolm Gladwell . I enjoy trying to understand one's perception of reality and how they process their decisions.

What inspires you?

Nature. I love taking a moment to appreciate the world we live in.

What’s your favorite drink currently in your fridge?

Nothing like some southern sweet tea.

What’s a tool or trick you use to make life easier?

"Don't take life too seriously, you'll never get out alive." Sure its a quote from a movie, but its had more of an affect on my life then most conversations I've had.

If you were a superhero, what would be your name and superpower?

SuperDude, and the ability to move objects with my mind.

In The News: GE Aviation Prepares Plant for 3-D Printing, Boeing 777 Unveils New Business Class Seats, and Futuristic Aviation Technology

GE Aviation Prepares Plant for 3-D Printing

GE is prepping it's plant in Alabama to start additive manufacturing jet engine nozzles. Check out the future plans here. And for more inside knowledge of where the aviation industry is with additive manufacturing, check out our recent blog post for a more in depth analysis.

Original article by Made in Alabama

The Boeing 777 Business Class Seat and Cubicle

The new Boeing 777 Business Class is making you more productive while in the air. Check out the new sky high cubicles here.

Original article by David Flynn

Futuristic Aviation Technology

Interactive cabins, terminal sleeping, and robots to help you with your luggage at check in. Are these future innovations plausible in our near future? Check out if science fiction will meet reality soon here.

Original article by SyndiGate

Additive Manufacturing For Aircraft Parts Is Taking Off

It is no secret that additive manufacturing is the hot topic, especially in our fast paced aviation world. Many companies are exploring this new frontier of technology because of its unbelievable benefits. Pratt and Whitney are a perfect example of the new exploration in this uncharted world with manufacturing engine brackets using 3D printing. They have embraced two of many additive manufacturing techniques to make engine components, engine brackets specifically. Instead of using expensive slabs of steel to shape aircraft parts, the process of additive manufacturing enables Pratt and Whitney to layer materials together using absolutely no waste.

Not only does Pratt and Whitney expend no waste, they also are manufacturing parts that are lighter and cheaper.

This trifecta of efficiency is what the aviation industry is raving about and why companies like Pratt and Whitney and even GE Aviation has adopted this new technique in manufacturing.

GE has adopted laser-powered 3-D printers and inking machines to make aircraft parts that seemed like science fiction long ago. GE likes to call this next chapter in manufacturing the next step in our Industrial Revolution.

The Industrial Revolution was a transition from new manufacturing processes in the period that started in 1760.

Today, additive manufacturing starts a new chapter in the aviation industry.

The additive manufacturing process can increase the tempo of production, reduce waste, and produce designs that seems almost impossible with last generation manufacturing processes. Unusual brackets, new age propellers, and even new engine designs are now open door ideas with this new technology.

However, this new revolution for the industry is growing at a crawl. Additive manufacturing techniques will need to be improved before the entire market adopts the technique with open arms. Glitches and muddy precision is still very common unless a finer and more expensive 3-D printer is purchased.

It makes sense why our industry is an early adopter of this new technology in manufacturing.

Aviation costs are high and even the most minuscule reduction in any costs would be a substantial benefit to any aircraft part manufacturer.

This process is taking off with no emergency brake and is beginning to grow exponentially.

In 2016, GE Aviation will unveil 19 3-D printed fuel nozzles in a combustion system that can only be made using this method. They will lead the aviation industry with the first solid models of these unique parts. This exciting time is being called the new or 3rd industrial revolution and companies like GE and Pratt and Whitney are paving the way for others to lead.

Are you looking to streamline your supply chain? Fill out the form below and we'll be more than happy to help you out.

How To Accept Problems, Then Solve Them

In the fast paced, non-stop world of aviation, problems happen and they happen often.  Most people look at problems as a bad thing. They're afraid of them. It controls their every move. The more they're afraid of the problems, the bigger, more complex the problems will become.

This is the very reason we've adopted a core value here at Skylink, "Accept Problems, Then Solve Them." Sitting at our desk worrying about a problem does nothing. Getting to the root of the issue and solving it does. There are a number of ways we tackle problems.

Listening

We're active listeners. 

If it's a client showing concern, we listen. If it's a team member who has a problem, we listen. If it's a supply chain partner explaining a delay, we listen.

By listening, we hear the other person and can effectively translate what they are saying into solutions.

The art of listening is the first step to proper communication and problem solving.

If we're not listening, then we're not solving. And if we're not solving, we're not practicing what we preach.

Advice process

This concept isn't new for us but the methodology and practice will be a reoccurring topic in our daily communication.

We are a self-managed organization giving people autonomy to make decisions as they see fit. The only requirement when making a decision is to seek advice from the people who will be directly affected and people who have knowledge in the subject.

The advice process isn't the "manager" making the final decisions but instead it's the collective group working together for the best viable decision. The person leading the team then formulates the responses to output the right solution.

5 Whys

The simple question "why" is a great concept to actively engage a problem.

When a problem comes up at Skylink, we tackle the issue by asking "why."

Stubborn and recurrent problems are often symptoms of deeper issues. A "quick fix" may seem convenient, but it's really just a temporary solution and it may solve only part of the problem.

To solve it properly, you need to drill down through the symptoms to the underlying cause.

The 5 Whys is a simple, practical tool that is very easy to use. When a problem arises, simply keep asking the question "why" until you reach the underlying source of the problem, and until a robust counter-measure becomes apparent.

The 5 Whys uses "counter-measures," rather than solutions. A counter-measure is an action or set of actions that seeks to prevent the problem arising again, while a solution just seeks to deal with the situation. As such, counter-measures are more robust, and are more likely to prevent the problem from recurring.

Each time you ask "why," look for an answer that is grounded, in fact: it must be an account of things that have actually happened – not events that might have happened. This prevents the 5 Whys becoming just a process of deductive reasoning, which can generate a number of possible causes and, sometimes, create more confusion.

Keep asking "why" until you feel confident that you have identified the root cause and can go no further. At this point, an appropriate counter-measure should become evident."

Contingencies

We make hundreds of decisions every day.  One of the ways we expedite problem solving is by having contingencies in place at every level. Or at least know the worst case scenario.

A good example is in repairs. If we have a repair in process for a pooling rotable and the units goes BER, what's our backup? If we already have the contingency in place when the units goes BER then we've expedited the resolution process.

Contingencies are crucial throughout our entire operation. 

It's very important that everyone on the Skylink team knows and understands how to accept problems and solve them. We live and breathe this and when were all in sync, problems are a mere speed bump into the flow of the Skylink way.

Are you afraid of problems? Do you encounter problems on a daily basis? Fill out the form below and let's chat about how to get you to overcome these obstacles.