New stock management method for higher output

KLM Engineering & Maintenance is part of Air France Industries. KLM E&M provides maintenance, repair and overhaul activities to over 150 customers - international and regional, passenger (major and low cost), cargo airlines, leasers plus governments.
AFI KLM E&M employs a combined workforce of 14,000 men, who are experts in all areas of aircraft maintenance. The company operates 5 main engineering and maintenance facilities which have together more than 600.000 parts in stock. The company operates in a highly competitive market.


Project definition and goals

KLM E&M in Amsterdam was facing high stock levels for spare parts. Changes were required to realize a higher throughput. For this a program was designed, named 3R: ‘Right part, right place & right time’. The objective of the 3R program was to implement a stock management method to facilitate and improve service levels and to secure balanced stock levels. In a second project the focus was on throughput, in order to increase shop capacity by improved equipment utilization and resource allocation.

Project approach

After analysing the current situation, a program was composed to achieve a better planning system and to determine a set of key performance indicators. The program was based on ‘change by own KLM staff’. Employees were constantly involved through personal and / or group discussions, observations in various activities and ‘brown paper‘ workshops.

Project results

  • Reducing the inventory levels to the optimal level, where the reliability of the delivery is adjusted to the demand.
  • Organize the processes, systems and organization in such a way, that the inventory levels stay on the right level (assurance by a change in behavior).
  • Perform logistical processes with less FTE’s.

Len Berrevoets
Senior Vice President E&M Engines Product AFKL, KLM Maintenance

The KPI’s and management system and controls installed in the KLM E&M PDM project still shows a continuous improvement and we are very pleased with the results. The program has achieved the savings which had been guaranteed.

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