Non-OEM / PMA Components and DER Repairs: Best Practices
- 1. The Use of PMA and How They Are Saving the Airlines Money Moscow February 25, 2014
- 2. •PMA Legal Basis •Regulator Updates •Typical PMA Parts •Reliability •Operations Considerations 2 Agenda
- 4. Bilateral Agreement – Russia/FAA 4 •Interstate Aviation Committee Aviation Registry (AR) and Federal Aviation Authority of Russia (FAAR)Bilateral Airworthiness Agreement signed in 1998 •Each agency considers certifications/findings as valid without further finding The AR will accept FAA Airworthiness Approval Tags on parts only when the FAA certifies that each part(s) conforms to AR approved design data Is marked in accordance with approved procedures Meets all additional requirements of the AR, as notified Parts must have an 8130-3 tag referencing document for approved design data
- 5. Direction of the PMA Discussion •All discussion on the legal basis has ended •All mention of safety issues have ceased •Commercial aspects dominant –Individual customer specific –OEM’s very active on restricting use of parts/data –Lessor/financier education is key •Smaller PMA supplier absorbed/partnering •Significant focus on PM aspect of parts •Revision D of 8110.42 in signature phase •PMA approvals heading more to a risk based culture –Issue by FAA of the streamlined process policy 5
- 6. FAA Direction •Separation of approval basis? –Production –Engineering –Installation •Focus on supply chain –Who/what/how –Frozen processes –Management of sub-tier –Flow down of requirements –Lessons Learned –Selection/de-selection of suppliers •Less push for ODA –Operator confusion •Harmonization of Critical Part definition –Aligns with FAA/EASA TIP 6
- 7. 7 Where Can You Use FAA-PMA Parts? Types of parts for which FAA-PMAs exist: Gears (CSD/IDG, ATS, APU, etc.) Shafts (various components / accessories) Bearings (rod ends, ball, roller, needle, spherical, tapered wheel, etc) Bushings (bronze, teflon lined, flanged, etc.) Filters (Oil, air, water, fuel) Seals (o-rings, gearbox, various components / accessories) Impellers, Turbine Wheels, etc. (various components / accessories) Compressor Blades Turbine Blades HPT Shrouds Electrical (switches, lights, sensors, LVDT etc) Interiors/passenger accomodations Galley products Structures Hardware (nuts, bolts, washers etc) Landing gear Avionics Harnesses and cables Ball screw actuators
- 8. Eligibility “Crack down” on data sources No blanket statements allowed Data sources scrutiny Questions on similar part experience Quality of source data OEMs willing to put PMA in IPC/CMM 8
- 9. 9 •Piece Part Price •Reliability •Leverage How do PMAs save airlines money?
- 10. Piece Part Price •Every PMA company will use the standard verbiage – 40% or better •Higher usage = bigger savings •Incentive programs •Cost avoidance based on historical stocking •Reliability Improvements •Options on parts 10
- 11. PMA parts are generally as reliable or more reliable than OEM parts. Why? 1.PMA developers have the benefit of understanding the OEM’s shortcomings 2.PMA developers often have newer materials, manufacturing methods and hold tighter tolerances due to the re-engineering process 3.Generally PMA developers avoid major problem areas that ADs or major service bulletins have been written against Reliability 11
- 12. 12 Leverage The influence you have to negotiate yourself a better deal
- 13. Lease Holder Opinion •Will allow - no critical/no-gas path PMA •What’s in it for me? •Ask and we can discuss •Negotiate the use up front/early in the contract •Financial institute???????? •Make your mind up –Standardize use of PMA –Decide what your policy is 13
- 14. New Services •More active bundling of services –PM of solutions •PBH offering –Emphasis on reliability of parts •PMA supplier cooperation •Input to maintenance cost drivers •PMA/OEM packages •Owner Operator Produced Parts •New aircraft – what can you do for me? 14
- 15. OPERATIONAL Rules •Deviation to CCLDC granted for PMA parts –SFAR 88 –737NG/757 Fuel Pump Parts •Airworthiness Directive granted –Landing Gear door hinge fitting AMOC for 737 •Use of TSO –Cargo net approvals 15
- 16. Conclusion •Every facet of aviation is using PMA •PMA solutions available across a wide range of products •PMA parts deliver significant savings via –Direct part savings –Reliability improvments –Leverage in contract negotiations •PMA parts are safe, reliable and a competitive business advantage 16
- 17. Questions? 17 Slides 13 -16 from Marpa 2012
- 18. Appendix 18
- 19. 19 Lavatory Filter Page 19 PMA PN: A225400454-204WE : $9.00 OEM PN: A225400454-204 : $22.50 Airbus A330
- 20. 20 Slow Close Toilet Seat 20 Typical OEM Toilet Seat price: $500 - $800 PMA “Slow Close” Toilet Seat price: $280 - $450
- 21. 21 Customer Fleet Size Wencor PMA Spend 2012 Savings XYZ 500+ $8.2 M $3.2 M ABC 500+ $2 M $800 K DEF 500+ $2 M $800 K HIJ 294 $290,742 $196 K OPQ 321 $321,416 $166 K RST 142 $238,381 $152 K UVW 198 $221,315 $126 K GLQ 339 $339,307 $122 K TST 500+ $346,226 $90 K MNO 312 $302,137 $155 K LTO 110 $138,907 $69 K Representative PMA Savings
- 22. Cost Avoidance 22 PMA DeltaP Indicator – Airline X •PMA Board approved use of PMA DeltaP Indicator in the B737NG APUs in Feb 2012 •OEM selling price: $8,100 each, with 85 used per year due to poor reliability Old annual spend: $ 688,500 New Annual spend with more reliable PMA: Less than $100,000 •40 OEM on order - cancelled Immediate cost avoidance: $324,000 •20 OEM in stock sold immediately $140,000+ generated
- 23. Airline D Coffee Makers 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2010 2011 2012 MTBUR Current Cost Trendline 416 series BE Coffee makers MTBUR (hours) 23
- 24. 24 Airline H: GTCP331-200/-250 RFQ •Current PMAs –86 parts with known usage –$889,253 savings •WIP (PMAs currently in development) –2 parts with known usage –$9,156 savings •Development potential –29 parts with known usage –$237,724 savings Total Annual Savings incorporated into the winning bid = $1,136,133 24
- 25. Independence from the OEM 25 Engine Starter Example (Honeywell 3505488) PMA