Case Study

Global aerospace OEM improves inventory visibility and cost savings through parts management optimization

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A regional division manufacturer of global aircraft engines and systems with an extensive global service network.

Business challenges

Low visibility in part failures resulting in:

  • Increased maintenance cost
  • High parts inventory
  • Low productivity at manufacturing shops

Genpact solution

  • Performed root cause analysis to understand the reasons and extent of part failures
  • Made better repair vs. replace decisions based on
    • Detailed analysis of the reliability of new parts vs. repaired parts
    • Failure probability calculation across the contract term using the Weibull distribution curve
    • Comparison of maintenance and repair over the contract term versus the cost of replacement

Business impact delivered

US$1.55 million annual savings through:

  • Inventory reduction
  • Productivity savings
  • Better cost visibility

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