Topics
                     ·    Benefits -- What’s Possible?
                     ·    Customers, Challenges and Objectives
                     ·    The Maintenance and Material Management Work
                     ·    Best Practices in Materials Management
                     ·    How to Learn More 
  © Copyright 2014.  High Performance Concepts, Inc.                              2
     What’s Possible?
     Improvement Goals, Objectives and Targets
        Business
              ·   Cut management layers in half
              ·   Increase employee-to-manager ratio to 23:1
        Maintenance 
              ·   Reduce maintenance process costs by 10 - 20%
              ·   Reduce maintenance process cycle time by 10 - 30%
              ·   Reduce re-manufacturing operating budgets by 20%
         
        Materials Management
              ·   Reduce rejected supplier material to 0.1%
              ·   Reduce inventory carrying costs by 30%
              ·   Increase inventory turns on aircraft modification kits by 200%
              ·   Improve service levels on aircraft modification kits to 99.5%
              ·   Reduce aviation spares locally and system-wide by 30%
                     -- from Lockheed Martin, Delta Air Lines, Boeing, etc.
  © Copyright 2014.  High Performance Concepts, Inc.                              3
     Operators, Customers and the Equipment
        ·   Utilities – Southern Company, TVA, Duke Power 
              -   For business and consumers
              -   Turbines, compressors, pumps, boilers, piping, valves, gauges, etc.
        ·   Airlines – Delta, Federal Express, UPS, GE
              -   For business and consumers
              -   Airframe, avionics, jet engines, fuel systems, landing gear, hydraulics
        ·   Space Shuttle Operations – United Space Alliance
              -   For NASA, customers
              -   Rocket engines, electronics, airframes, air handling, hydraulics, pneumatics, 
                  communications
        ·   Rocket and Engine Testing – Sverdrup and ACS
              -   For business and government (GE, P&W, USAF, USN, NASA?)
              -   Turbines, compressors, pumps, boilers, piping, valves, gauges, jet engines, fuel 
                  systems, air handling, hydraulics, rocket engines, electronics, pneumatics, data 
                  collection
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          Business                                                                                                                          Customers
          Objectives
                                                                                                                                    Products & 
                   Schedules                                           Market Factors                                                 Services
                                                                                 Impact
                                                                       Maintenance & 
                                                                             Materials 
                                                                          Management
                                                                            Supply of
               Political,                                                   Materials                                                           Drivers of 
               Regulatory                                                & Personnel                                                            Demand
               and Legal
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     The Materials Management Challenge -- External Factors
        ·   Leverage strong interdependency among customers, operators and suppliers
        ·   Customers, Products and Services
              -   Customer- or market-driven reduction in cost, lead time and cycle time.
              -   Parts and service demand fluctuations due to routine peaks and valleys, changing 
                  economic conditions, specific market events, and new  technologies
              -   Installed base changes often
              -   High value, sometimes one-of-a-kind equipment 
              -   Numerous configurability issues
              -   Documentation requirements and serial number issues
              -   Extreme environments -- temperature, long run times
              -   High cost of unplanned outages or downtime
        ·   Suppliers and Supplier Management
              -   Extremely low volume demand on most items -- suppliers have leverage 
              -   Many items have high unit costs, long lead times and single sources of supply
        ·   High government regulation -- security, environmental, business/competition 
  © Copyright 2014.  High Performance Concepts, Inc.                              6