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The Operating Review › Industries › Aerospace and defense › MRO and aftermarket

Aerospace and defense — MRO and aftermarket

Highest margin, hardest to cost, and priced by precedent rather than by work actually performed.

Nobody sends a unit for repair with a scope of work attached. It arrives, it is torn down, and only then does anyone know what the job is — by which point the customer has a price in mind and you have a bench occupied. The economics of a repair station live entirely in that gap, and it is usually managed by whoever has been doing it longest rather than by a number.

These are the terms the review uses with you. A page written for an aerospace and defense manufacturer generally would not contain any of them.

Where it concentrates here

Specific to mro and aftermarket, not to an aerospace and defense manufacturer generally. Each is concentrated — a single agreement, a single code, a single account nobody reviews — which is why a sample of the operation tends to miss it and a full pass tends to find it. They are not findings from a named engagement.

  1. Over-and-above findings discovered at teardown and performed to protect the turn time, then quoted afterwards from a negotiating position of a unit already in pieces.
  2. Exchange and rotable pool units issued against cores that never return, or return beyond economic repair, with the pool carried as though every core were serviceable.
  3. Flat-rate repairs priced from a precedent job and applied to units whose condition on arrival varies enormously, with no distribution of actual labor behind the rate.
  4. Warranty and no-fault-found work absorbed as a relationship cost, with no record of which customers or which part numbers generate it.
  5. Shelf-life, calibration and tooling currency discovered at the point a unit cannot be certified, rather than at the point it could still have been planned around.

Where this data actually lives

Named because it changes what the intake asks for. An extract from one of these has known gaps, and the review is built around them rather than surprised by them.

See the proposal and the price Talk it through first

The proposal is written for an aerospace and defense manufacturer as a whole — the sequence, what we would need from you, and what it costs for your number of operating units. What is on this page is what we would additionally expect to find in mro and aftermarket.

The rest of the sector