Case Study: Maintenance, Repair, Overhaul (MRO) Test Time Reduction for a Defense Contractor
This defense contractor was experiencing losses due to excessive time to test and repair equipment on a major retrofit program. The test phase was consuming 150 man-hours per unit and 7 days of lead time more than the planned, contracted timings. A small, part-time project team of 4 of the company’s people was created to resolve the situation within 6 months.
The team followed the DRIVER methodology, a complex-problem solving methodology very similar to DMAIC and 8D.
Analysis of the current situation identified that while the actual tests themselves were all necessary and performed relatively efficiently, the preparation stages, communications and resolution of test failures contained many loops, hand-offs and mis-communications. Basic Value Analysis was used to identify the critical activities and to prioritise non-essential activities for improvement or elimination.
The team worked closely with their colleagues throughout the project to ensure buy-in and to reduce the inevitable resistance to change
Without changing any of the actual test procedures, the project saved over €300,000 in recurring costs during the first year of implementation, rising to €600,000 during the second and subsequent years of this 5 year contract. These savings were directly reflected on the company’s bottom-line profit.
Payback period: 2.3 months
ROI: 500% after 1 year, 4500% after 5 years