Improving the operational and financial performance of KAEMS MRO through digital transformation

Author: Mr. Park Won, VP & Head of Operations at Korean Aircraft Engineering Maintenance Services (KAEMS)

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Mr. Park Won, VP & Head of Operations at Korean Aircraft Engineering Maintenance Services (KAEMS) discusses what led the Korean MRO to select Alkym, the challenges involved and the operational improvements from using the integrated MRO system.

Perhaps before we dive into the substance of this article, we should first take a look at the key player, KAEMS.

KAEMS

KAEMS is a designated service provider from the Korean Government with over 200 employees. The MRO specializes in heavy maintenance for B737s along with depot maintenance for Korean Military aircraft. Further expansion is planned for the MRO facility which will bring the total number of bays to five in two hangars with added heavy maintenance capabilities for the A320.

As a startup MRO, KAEMS needed an MRO solution that supports maintenance quality assurance and efficient work and process management. Another decisive factor was integrating a solution that supports compliance with various regulations.

Mr. Won commented, “After analyzing the market and the characteristics, economics and efficiency of various products through an extensive RFP (Request for Proposal) process, Alkym was selected. The significant efforts of Kyungik An and Sangdon Kim during the sales phase had a major influence on the decision”.

The Korean MRO has been able to increase operational and financial performance by utilizing Alkym to drive efficiencies through their entire organization. Improved productivity in the overall process has also reduced revenue leakages and improved KAEMS’s ability to respond to customer needs, etc.

CHALLENGES OF IMPLEMENTATION

Implementing a new software solution alone entails many challenges. Carrying out such a project at the same time as establishing a company like KAEMS generates a whole load more challenges. In this special situation, the Seabury Solutions team focused on managing the following risks and completed the project within the specified time.

Risk 1: The customer’s maintenance process, RSQM (Repair Station and Quality Manual), etc. might not be completely configured – the AMO (Authorized Maintenance Organization) certification had not been received at the start of the project.

Seabury Solutions approach: Due to the flexibility of the Alkym system, changes occurring in the middle of the project could easily be taken into account and applied to the system.

Risk 2: The provision of the customer’s data and form (Job Card format) might be delayed.

SS approach: The customer data was prepared relatively early through the efforts of KAEMS staff, so there was no problem. In the case of a form like the job card, Alkym’s existing form was provided in reverse to KAEMS, contributing to a certain part in obtaining AMO certification (the form provided at the time is still in use)

Risk 3: Considering that it is in the early stages of the company’s establishment, the project participation of client employees may be limited.

SS Approach: Fortunately, some of the key users of KAEMS participated with enthusiasm during the project, and SS’s high-quality training program helped greatly in system adoption across the entire organization.

Risk 4: It may take time to define and develop an interface as it proceeds in parallel with the implementation of legacy system (ERP, Groupware, etc.)

SS Approach: Although it was the first experience of interface development with the local ERP system (Douzone iU), SS was able to successfully complete interface definition and development by separately deploy Business Analysist for interface development only.

KAEMS opted to select the full suite of Alkym modules in order to support their operational requirements and drive efficiencies through their entire organization.

Mr. Won also noted, “In spite of the short seven months’ schedule and limited input resources from KAEMS into the project, I am glad to be able say that we have finished the project successfully. I highly appreciate the training and implementation skills and passionate attitude of the consultants from Seabury Solutions.”

The Seabury Solutions team pride themselves on fast and effective project implementations, exceeding customer expectations, and the support team can be accessed 24/7 through the global network of offices, which was another important consideration when selecting the right vendor for KAEMS.

“Another advantage of Seabury Solutions is their support. The On-Line Helpdesk enables real-time support between users and support engineers, and supports an immediate response to any problems encountered during use. All submitted tickets are managed through the ticket management and phone services, so follow-up is easy.” added Mr. Won.

To conclude, Mr Won answered a few relevant questions.

Q&A

Seabury Solutions: Have you experienced any improvements in planning/production activities since the Alkym implementation?

Mr. Won: After creating a Task Master based on the standard Task Card of the manufacturer, which is commonly used as an international standard, it was possible to define the necessary materials and tools, and to define the standard labor requirements. Through the customer’s proposal, it was possible to determine the work scope and calculate the related quotation and Turnaround time. In addition, it was possible to check the appropriate work balance through capacity analysis compared to workload, and it was possible to acquire necessary material inventory and establish procurement plans. As a result, it was possible to efficiently execute work planning and execution.

SS: Have you experienced any improvements in materials/logistics management?

Mr. Won: Alkym checks the available stock for the materials needed to be used, prepares for the release of goods according to the condition, and automatically generates a ‘No stock’ to make purchases. Through this, automation of logistics efficiency is realized through material shortage prevention, etc., and a timely procurement system is established.

SS: Have KAEMS noticed any benefits to their financial management as a result?

Mr. Won: We now get aggregation of raw data of material cost and work effort (M/H, etc.) from Alkym and transfer it to our local ERP system (Douzone iU) through the interface. Based on this information, the ERP generates the financial report.

SS: Have KAEMS noticed any improvement in their Quality/Safety practices as a result of implementing Alkym?

Mr. Won: Yes, now we can automate the organization’s processes that were previously managed manually and can establish a compliance system for various regulations.

SS: What improvements have KAEMS employees noticed in their daily activity or work practices?

Mr. Won: By establishing work processes based on system processes, standardization and automation of work have been implemented to help change management. Now users can easily access system data through existing reports, queries, etc. which is a great advantage. Users can also easily migrate various technical data using the M-Transfer Tool, (Massive Data Transfer) and management of data and attached documents (Manufacturer’s Manual, etc.) is made easier through DMS (Document Management Solution) system integrated with Alkym.

In addition, we would like to improve the system to freely create and edit new Reports, Queries, etc. for users who are familiar with development languages.

SS: What’s next for KAEMS?

Mr. Won: KAEMS plans to increase the range of system usage and utilization capabilities after 1½ years operating with Alkym, from work programs and standard MH (Man Hour) management. This will enable more realistic production planning in the future, improving maintenance efficiency. We also plan to increase the use of Tool & Equipment Management and M-Transfer functions through the next version update scheduled in the future.

Contributor’s Details

Mr. Park Won

Park Won joined KAEMS in 2018 and has over 23 years of Military and Civil aviation industry as Engineer and Manager for broad business area. As a vice president within KAEMS, from the preparation stage of KAEMS to the present, he made a great contribution to the quick stabilization of the business by utilizing his various experiences.

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Korean Aircraft Engineering Maintenance Services (KAEMS)

Launched in July 2018, Korea Aviation Engineering & Maintenance Service (KAEMS) is the only independent MRO designated by the Korean government and the country’s first aviation maintenance, repair and overhaul (MRO) company. KAEMS started its first service for a Boeing 737 in March 2019. With already 200 employees and five bays either in operation or under construction, KAEMS ambitiously looks forward to provide nose-to-tail service for aircraft by 2030.

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Seabury Solutions

Seabury Solutions has built its reputation in the market by delivering industry leading aviation IT solutions from the smallest operator to the largest airlines across the world. The business has built upon our decades of aviation expertise in-house, to leverage this knowledge into a suite of products that enhance the decision-making process for Airlines, Regulators and MROs. The integrated products range from Maintenance Systems for Airlines & MROs, Safety Management Software for Aviation Authorities and a range of performance analysis tools within the EPAS Suite.