MID-SIZED DEFENSE MRO CONTRACTOR
(Identity Protected by Agreement)
NOVACES was tasked to apply advanced process improvement techniques to help a $1B/year defense logistics contractor to eliminate ~$10M/year in financial losses experienced while providing Maintenance, Repair, and Overhaul (MRO) services on 3 separate fleets of military aircraft.
Our team was challenged to deliver rapid improvements while meeting the complex challenges of having overworked staff produce more with less effort, of exceeding client readiness targets while cutting costs, and of delivering sustainable gains with minimal training. We addressed this complex “triple challenge” by applying Constraints Management techniques to focus efforts on areas of greatest impact.
After an intensive sequence of improvement workshops and process redesign, we helped our client achieve their profitability goal within 9 months, and achieved significant non-financial benefits, such as exceeding all customer aircraft readiness targets, transforming a strained customer relationship, as well as boosting employee morale. A summary of the client results are listed below:
- Employee absenteeism reduced by an estimated 40%
- Employee attrition rates decreased by an estimated 30
- Aircraft availability improved to >95% with financial penalties decreasing proportionally
- Eliminated overtime, with associated annual savings of $778K
- On-time delivery of scheduled maintenance >95%