A supporting framework for estimating no fault found cost: development and application in the aircraft MRO industry

Abstract

PurposeThis research aims to develop a new generic framework for estimating different maintenance costs (preventive, corrective and conditional based) and its distribution to original equipment manufacturer (OEM), customer and supply chain due to no fault found (NFF) events. The study extend the domain of NFF to military aircraft maintenance, repair and overhaul (MRO) by including broader range of cost drivers than are normally found in maintenance NFF literature.Design/methodology/approachThe research applies the soft system methodology involving 80 field surveys and five in depth semi-structured interviews with practicing experts having background in military aircraft NFF MRO. For impact analysis, authors have used an agent-based model to represent and prioritize the critical NFF cost drivers during aircraft MRO based on the cost inputs of 21 technology transfer cases.FindingsThe paper provides imperial insights about how NFF cost drivers affect the OEM, customer and supply chain. It suggests that NFF cost need to be part of the commercial MRO contract, depending on its frequency pattern in different types of maintenances.Research limitations/implicationsThe context of the current research is military aircrafts industry and may lack generalizability to commercial aircrafts. Therefore, researchers are encouraged to test the proposed propositions further.Practical implicationsThe developed framework will provide invaluable help in key financial decision-making during signing of MRO contract in technology transfer cases.Originality/valueThis paper proposed a new prediction model for NFF cost estimation across its shareholders and current status of NFF in military aircraft NFF MRO in India.