Design, Analysis and Optimization of Supply Chains

Chapter 6

The Role of Overhaul in Reducing Life-Cycle Costs and Maximizing the Return on Investments to Improve Reliability

Introduction

Maintaining aircraft in a high state of readiness requires a nonstop flow of spare parts. Almost every part on an aircraft will be replaced, repaired, and ultimately scrapped at some point in time. When parts must be removed, there are two primary sources for replacement parts: new parts from procurement and repaired parts coming from overhaul. The costs associated with the acquisition, overhaul, transportation, and labor to remove and install these parts are a significant part of a system’s total operations and support (O&S) costs. Moreover, these O&S costs generally account for 70–80% of total life-cycle ...