Case Study: Effective Scrap Reviews |
Monitoring the process of Engine Overhauls is complex. However, that actual overhaul is not the end of the scenario and the material which has been declared scrap should also be looked at in detail in a ‘Material Review Board’ (MRB). All too often these so called scrap parts are valuable sources of components to 3rd party repair shops.
The Scenario
EVS view Material Review Boards as an integral part of the process of ensuring full value for our clients from shop visits. Therefore after managing an engine overhaul through a major European MRO, we returned after the shop visit to oversee the Material Review Board.
The Situation
EVS has a renowned expertise in the field of component repair and excellent connections with various partners who specialise in developing alternate FAA/EASA approved repairs. After researching the market for available repairs for the scrapped material, EVS brought this knowledge to bear at the MRB.
The Conclusion
The MRO were adamant that all removed items were un-repairable and that we would be wise to scrap the whole list. Detailed review of the scrap list by EVS flagged up a HPT Stage 1 disc which should carry a warranty concession, and a corroded piston for which the MRO could have applied a DER they had developed and approved themselves to cover this condition.
The result of this MRB was a combined credit of $185,755 for both the warranties and credits for material which the MRO could have repaired.
As a footnote to this particular MRO and airline concerned, previously they had let the MRO broker the sale of all MRB material for a nominal sum. Included in the batch of material sold was a fuel pump which could have easily been repaired with existing DER’s available. The airline had to replace the pump at a cost of $157,000, which alone was over 4 times the total sum received.
Back | Home | More case studies







