Case Study: Material Recovery Solutions |
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The Material Recovery Process is designed to recover material from otherwise scrap units to the benefit of the original LRU owner, the future material owner, the recovery facility and the repair station who gets to utilize the recovered material.
The Scenario
Airline A had submitted a complex thrust reverser component for recovery following a BER decision. A number of high value piece parts and sub-assemblies were recovered from the unit and placed in stock at the recovery facility.
The Situation
Airline B had submitted a similar end unit for repair and, during evaluation and quotation that unit was determined to be BER also. As the BER decision was based on one of the high cost part recovered in the scenario above, the repair facility was able to purchase the necessary piece part, with an MLP in excess of $18,000, in SVC condition for less than $5,000.
The Conclusion
With the EVS data system in place, the facilities involved were able to see the available part and quickly recover the second unit. Both the airlines and the recovery facility benefitted directly from the transaction:
- Airline A - received a proportion of the sale amount for their recovered item worth $2,500.
- Airline B - avoided a BER and received a discounted repair involving a high cost item, BER Inventory savings $125,000, repair savings $13,000 +.
- The recovery facility received fair compensation for recovering, storing and selling the piece part.
- The second repair station was able to turn a probable BER into an economical repair.
A win:win scenario all round on this example. The MRS process has many such wins like the one above.
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