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Signature Redacted Department of Civil and Envirnmental Engineering, MIT Sloan School of Management May 11,2018 Next Generation Commercial Aircraft Engine Maintenance, Repair, and Overhaul Capacity Planning and Gap Analysis by Amanda J. Knight B. S. Mechanical Engineering, The University of Texas at Austin, 2006 M.S. Aerospace Engineering, The University of Southern California, 2011 Submitted to the MIT Sloan School of Management and the Department of Civil and Environmental Engineering in Partial Fulfillment of the Requirements for the Degrees of Master of Business Administration and Master of Science in Civil and Environmental Engineering In conjunction with the Leaders for Global Operations Program at the Massachusetts Institute of Technology June 2018 2018 Amanda J. Knight. All rights reserved. The author hereby grants MIT permission to reproduce and to distribute publicly paper and electronic copies of this thesis document in whole or in part in any medium now known or hereafter created. Signature of Author: Signature redacted Department of Civil and Envirnmental Engineering, MIT Sloan School of Management May 11,2018 Certified by: Signature redacted __ DI Roy Welsch, Thesis Supervisor Professor of Statistics and Engineering Systems Certified by: Signature redacted Dr. Daniel Wh The i Supervisor Senior Research ScientisU/Eyneritust Lecturer, IVVT Leaders for obal Operations Certified by: _____Signature redacted _ _ _ _ _ _ Dr. David Simchi-Levi, Thesis Supervisor Prof"or,9 C ppdEnvironmental Engineering Accepted by: Signature redacted____ Jesse H. Kroll Profesor of Civil and Environmental Engineering Chair, Graduate Program Committee Accepted by: Signature redacted MHro MASSACHUSETTS INSTITUTE ' M PM ManuraHerson OF TECHNOLOGY co Director, MBA Program, MIT Sloan School of Management JUN 0 7 2018 LIBRARIES This page has been intentionally left blank Page | 2 Next Generation Commercial Aircraft Engine Maintenance, Repair, and Overhaul Capacity Planning and Gap Analysis by Amanda J. Knight Submitted to the MIT Sloan School of Management and the Department of Civil and Environmental Engineering on May 11, 2018 in partial Fulfillment of the Requirements for the Degrees of Master of Business Administration and Master of Science in Civil and Environmental Engineering ABSTRACT A critical element in maintaining engine safety and in providing post-production service and support of a commercial aircraft engine is the complete worldwide network of maintenance, repair, and overhaul facilities. Matching forecasted shop visit demand to network-wide capacity is essential to ensuring the required resources are in place to quickly repair and return these assets to the airline customer. A capacity analysis methodology is developed to characterize and analyze the current network capacity for the PW11 OOG Geared Turbofan engine model for Gate 3 Engine Testing processes. This capacity model is then compared to the anticipated monthly shop visit demand for engine repair services through 2026. By identifying capacity shortages earlier in the program, Pratt & Whitney can proactively plan for and fund additional resources to improve capacity, ensuring the required capacity is in place when demand materializes to reduce shop visit delays. The results of the PW1 1 QOG capacity study are utilized both to provide recommendations for the anticipated timeframe when additional resources will be required to meet projected demand and to outline major planning milestones required to meet the resource need date. Thesis Supervisor: Dr. Roy Welsch Eastman Kodak Leaders for Global Operations Professor of Management Professor of Statistics and Engineering Systems Thesis Supervisor: Dr. Daniel Whitney Senior Research Scientist and Senior Lecturer in Mechanical Engineering Thesis Supervisor: Dr. David Simchi-Levi Professor, Civil and Environmental Engineering Page | 3 This page has been intentionally left blank Page | 4 Acknowledgements The author wishes to acknowledge the Leaders for Global Operations program for its support of this work. Many thanks to the awesome folks working on the Pratt & Whitney Geared Turbofan program for their endless support, kindness, and patience: o Rob Griffiths for your ideas and guidance in simplifying and focusing our capacity model o Dan Dinneen for always pointing me in the right direction, to the right people to get things done... and for the 2:00 pm coffee excursions o Katie Allen for keeping me in the loop on shop updates, for the much-needed stress- relieving afternoon walkabouts, and for making me feel like part of the GTF family o Chris Burrows for answering my never-ending stream of questions about CEC and VSMs o Joe Wagner and Tim Moran for sharing your GTF expertise and incredible knowledge of test processes o Liana Layug for your amazing sense of humor and for providing opportunities to get involved at Pratt & Whitney outside of GTF o Michelle Porter for your insight into Engine Services and engine scheduling and for the fun weekends out and about.. .even the 3-mile-turned-10-mile hike o Stephanie Castillo for your incredible warmth and support during my time in East Hartford o Dianne Durgan for helping me book conference rooms and then find them in the OBG- maze A huge thanks to Chris Cable and Tyler Kane from the PW Enterprise Capacity and Material Planning Strategy group for providing your capacity planning and analysis expertise and for being great travel partners for our multitude of site visits Thanks to Travis Gracewski and Kevin Thomas for ensuring my internship and thesis started out on the right foot and for the always-valued career advice Thanks to my advisors Roy Welsch, Dan Whitney, and David Simchi-Levi for your welcomed advice, expert guidance, and recommendations to make this thesis a worthwhile endeavor Thanks to Brienna Hudson for encouraging me to get out of my comfort zone and embark on this exciting adventure at MIT Thanks most of all to my mom, dad, and brother for enduring my crazy-excited 6-month-long engine story, for providing your love and support during my last degree program ever (for real this time...), and, especially to my mom, for making five (5!) semi-harrowing road trips between Oklahoma City and Boston with three ornery cats. Page | 5 This page has been intentionally left blank Page 1 6 Table of Contents A B S T R A C T ................................................................................................................................ 3 L is t of F ig u re s ............................................................................................................................ 8 L is t o f T a b le s ............................................................................................................................. 9 1 . In tro d u c tio n ....................................................................................................................... 1 1 1.1. Project M otivation ................................................................................................... 11 1.2. General Problem Statement, Goals, and Scope...................................................... 12 1 .3 . B a c k g ro u n d ................................................................................................................. 1 3 1.3.1. Engine Development and Aerospace Industry Background.............................. 13 1.3.2. Afterm arket Operations.................................................................................... 16 1.3.3. GTF Program History, Development, and Status ............................................. 18 1.3.4. GTF Engine M RO Network ............................................................................. 24 2 . M e th o d s ............................................................................................................................ 2 8 2.1. Literature Search................................................................................................. 28 2.2. In-Shop Investigation and Interviews .................................................................. 30 2.3. Capacity M odel Development Overview .............................................................. 31 2.4. Production Readiness Decision Chart ................................................................ 31 3. Capacity M odel Developm ent - Gate 3 Engine Testing................................................. 33 4. Gate 3 Engine Testing Capacity and Gap Analysis ....................................................... 40 4.1. Current Facilities / Test Cells and Facilities In-W ork........................................... 41 4.2. Tooling - Duct Sets, Instrumentation................................................................... 42 4.3. Manpower / Labor .............................................................................................. 43 4.4. Capacity per Shop and Conclusions.....................................................................44 5. Conclusions, Recom mendations, and Future W ork ........................................................ 57 5 .1 . C o n c lu s io n s ............................................................................................................. 5 7 5.2. Recom m endations .............................................................................................. 58 5.3. Future W ork ............................................................................................................ 62 6. Appendix A - Initial Gate 1 Disassembly and Gate 3 Assembly Framework..................64 6.1. Proposed Capacity Model........................................................................................64
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