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This case study focuses on four main areas. By the end of the study, the students are expected to meet the following objectives by answering several assignment questions: understand the general business of a maintenance, repair and overhaul (MRO) company and why this business is a central player in the air transportation industry; understand and integrate certain strategy analysis tools, particularly Porter’s Generic Strategies, Ansoff Matrix, GE/McKinsey Matrix and International Market Entry Modes, to use later as justification for any recommendations about strategy; and prepare a systematic elaboration to use to recommend the company’s strategic plan.

This case study discusses PT GMF Aero Asia, Tbk. (GMF), a company that is based in Tangerang, Indonesia, and involved in the MRO for airlines. At the time of writing this case, the CEO was Iwan Joeniarto. The case elaborates on GMF’s competitive business operations in Indonesia and Southeast Asia, with the main focus being a discussion of Iwan’s visions for GMF’s expansion into the Middle East. This case study challenges students to think critically on the strategy level about the expansion plans of a local company into the international market. The main research questions the study attempts to answer are: What is an MRO in the aviation business? How does it relate to airport megahubs? Is the option for business expansion into the Middle East feasible for GMF? If not, are there any alternatives for that international expansion? Moreover, what recommendations can this study provide Iwan for entering that international market successfully? The students are expected to gain exposure to the international market entry in an MRO business. The students are also expected to understand and integrate the different strategy analysis concepts and tools, such as Porter’s Generic Strategies, Ansoff Matrix, GE/McKinsey Matrix and International Market Entry Modes.

This case study can be used as teaching material in several programs, including – but not limited to – the followings: Bachelor’s Degree program in Management, Business and Marketing (usually final year students), Master’s Degree in Business Management or Business Administration and Executive Education Program/Workshop/Seminar/Training for Business Development/Marketing Managers, VPs, Directors and Aviation Management Professionals. This case study can be used in the following classes/subjects: strategic management, strategic marketing management, international marketing, international business, global marketing, operations management and aviation management.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 11: Strategy.

This case followed Todd Duncan, Chairman of Duncan Aviation, as he considered which international locations Europe, Latin America, or Asia were most important in positioning Duncan to benefit from continued internationalization of the maintenance, repair, and overhaul (MRO) industry. The company had the option to hire Regional Managers to actively manage these areas, recruiting new customers and building relationships with existing ones. The case provides students with an opportunity to identify the core competencies of a company, and to recognize ways in which employee engagement contributes to Duncan's core competencies. Optionally, the case may be used to introduce students to Dunning's eclectic paradigm.

The research for this case was obtained from a combination of primary research, secondary research, and personal experiences. One of the research assistants for this case was employed at the company for over two years, and reflections thus obtained, supported with supplementary research, enriched and deepened the paper. Duncan's Debrief magazine and news releases were important secondary sources, in addition to industry web sites, industry journal articles, reference books, and newspaper articles.

This case is intended to be taught in undergraduate international business or marketing courses.

This case is an illustration of the complexity, and strategic importance, of considering whether, and how, to build customer relationships outside the firm's home country. Such decisions confront many companies facing increasingly global industry environments. The eclectic paradigm, developed by John Dunning, explains why companies expand and participate in international markets.

Innovative startups have begun a trend using laser sintering (LS) technology patents expiration, namely, by introducing LS additive manufacturing (AM) machines that can overcome utilization barriers, such as the costliness of machines and productivity limitation. The recent rise of this trend has led the authors to investigate this new class of machines in novel settings, including hub configuration. There are various supply chain configurations to supply spare parts in industrial operations. This paper aims to explore the promise of a production configuration that combines the benefits of centralized production with the flexibility of local manufacturing without the huge costs related to it.

This study quantitatively examines the feasibility of different AM-enabled spare parts supply chain configurations. Using cost data extracted from a case study, three scenarios per AM machine technology are modeled and compared.

Results suggest that hub production configuration depending on the utilized AM machines can provide economic efficiency and effectiveness to reduce equipment downtime. While previous studies have suggested the need for AM machines with efficiency for single part production for a distributed supply chain, the findings in this research illustrate the positive relationship between multi-part production capability and the feasibility of a hub manufacturing configuration establishment.

This study explores the promise of a production configuration that combines the benefits of centralized production with the flexibility of local manufacturing without the huge costs related to it. Although the existing body of knowledge contains research on production decentralization, research on various levels of decentralization is lacking. Using a real-world case study, this study aims to compare the feasibility of different levels of decentralization for AM-enabled spare parts supply chains.

Despite many Maintenance Repair and Overhaul (MRO) organisations alluding their positive business performances to the adoption Lean initiatives, there is a paucity of direct literature that validates this assertion. Thus, the purpose of this paper is to study empirically via the use of an industry-wide survey to establish and extent of Lean adoption and to verify its suitability in mitigating prevalent MRO challenges.

The empirical study contained in this paper is facilitated by an industry-wide survey to collect data from several firms across the MRO spectrum. The analysed responses from industry leaders, professionals and executives synthesised with existing literature was used in ascertaining the extent of Lean adoption within the operational framework of the industry.

The empirical study helped in validating the suitability of Lean in MRO context. However, it was also observed that the focus of its application was skewed towards its production-orientated functions more than its service-orientated functions. Nonetheless, this paper presents results of the positive influence of Lean in MRO context.

This empirical study presented in this paper was carried out within a framework of key characteristics of operation. Although this approach is sufficient in assessing the industry’s Lean status, further assessment can also be achieved within the context of relevant performance metrics which was not included in this paper.

By exploring the industry’s Lean status within the context of operational characteristics of operation, this study provides MRO practitioners with more awareness into some of the critical factors required for successful holistic Lean realisation.

The state-of-the-art of Lean within the aviation MRO context established through this research also contributes to the wider product-centric service environment by providing a platform that facilitates strategy development which ensures Lean success within this environment.

Apart from validating the suitability of Lean in MRO contexts, by establishing the extent of Lean adoption within the context of the operational framework, this paper provides a clearer insight as to how successful Lean implementation can be achieved via a holistic implementation strategy balanced between the product-centric and service-centric aspects of the industry.

With every passing day, the center of gravity for air traffic for the Middle East and Turkey is shifting toward becoming a center for airway transport, maintenance, repair, overhaul (MRO) and transfer. The MRO sector is gaining importance because of this increase in Turkey. The purpose of this study is to examine the future employability of the graduates receiving civil aviation maintenance training in Turkey.

The paper uses past seven years’ data about maintenance personnel of Turkey. It includes all-level students, recently working personnel and retired personnel of each year. Regression analysis and Markov analysis were used to show the prediction of aviation maintenance personnel.

The paper provides quantitative results about employability of maintenance personnel under the real numbers of alumni and working and retired personnel in Turkey. The results show that the number of graduates will be greater than the number of staff members in certifying categories in 2018. Presently, Turkey meets the employment expected, but in the future, aviation maintenance personnel number is rising, and there will be an excess number of graduates left over in Turkey.

Because of the chosen region, Turkey, the research results may lack generalizability. Therefore, researchers are encouraged to conduct analysis for other countries which have an important role in aviation.

The paper includes implications for the government maintenance personnel policy and educational policy for managing all types of maintenance personnel in Turkey.

This kind of personnel needs analysis has not been done before, and this is the originality of this paper. It will in turn lead to an analysis of planning for allocation of maintenance staff and alumni. The authors collected all official numbers about maintenance personnel from Turkish Student Selection and Placement Center of Turkey, Turkish Technic and Turkish Civil Aviation Reports.

The life span of an aircraft is usually around 30 years in the commercial aviation industry. During this time span, aircraft needs maintenance to stay in service. The cost of maintenance, repair and overhaul (MRO) activities in its pure nature is a significant portion of operations, accounting around 10 percent of all cost drivers. The purpose of this paper is to design/develop and critically assess a comprehensive model of operations at Turkish Technic – the MRO department of Turkish Airlines.

A comprehensive systems dynamics model is designed and developed to holistically represent and critically assess the different facets of MRO operations to help in analyzing various decision scenarios at Turkish Airlines.

The developed system dynamics (SD) model presented unique opportunities to test various MRO operations’ work load and aircraft fleet expansion policy alternatives. The model can also be used as a “learning laboratory” by altering various system parameters and testing different policies. The case study results suggested that MRO operations have a direct impact on the available number of airworthy aircrafts and hence, the usable fleet seat capacity; to sustain a profitable airline fleet, the airline companies should take into account the unique characteristics/needs of MRO operations for both existing and new/prospective aircrafts.

There are several SD studies in the literature focusing on the airline industry, but the MRO operations are virtually neglected in them. Hence, the proposed SD model contributed to the extant literature. The value of the developed model stems from its potential use in the critical analysis of decision scenarios as well as being leveraged as a training/learning laboratory.

This paper aims to evaluate the main business models used for airlines' maintenance, repair and overhaul (MRO) activities and determine the activities to which these relate.

A critical literature review is used to develop a conceptual model of MRO activities. This is evaluated through a SWOT analysis before an exploratory study of eight airlines is used to confirm the applicability of the conceptual model.

Four levels of MRO outsourcing are identified; from fully outsourced to fully in‐sourced. From the exploratory study it is shown that critical MRO activities such as line maintenance are frequently in‐sourced, while activities with low demand at an airline level such as engine maintenance are often outsourced.

MRO represent around 10‐15 per cent of an airline's operational costs. By identifying the strength and weaknesses of different MRO models, it is possible to evaluate alternative MRO strategies.

Unlike other research in maintenance which was aimed mainly at the manufacturing sectors, this research provides insights into the maintenance practises in a service sector. In particular this research studies the different outsourcing levels existing in airlines' MRO. The knowledge gained by understanding the mechanism of outsourcing in airlines' MRO can be further extended to other industries and help in best configuring their maintenance units.

This 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.

The 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.

The 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.

The 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.

The developed framework will provide invaluable help in key financial decision-making during signing of MRO contract in technology transfer cases.

This 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.

This paper aims to build a novel model and approach that assist an aircraft MRO procurement and overhaul management problems from the perspective of aircraft maintenance service provider, in order to ensure its smoothness maintenance activities implementation. The mathematical model utilizes the data related to warehouse inventory management, incoming customer service planning as well as risk forecast and control management at the decision-making stage, which facilitates to alleviate the negative impact of the uncertain maintenance demands on the MRO spare parts inventory management operations.

A stochastic model is proposed to formulate the problem to minimize the impact of uncertain maintenance demands, which provides flexible procurement and overhaul strategies. A Benders decomposition algorithm is proposed to solve large-scale problem instances given the structure of the mathematical model.

Compared with the default branch-and-bound algorithm, the computational results suggest that the proposed Benders decomposition algorithm increases convergence speed.

The results among the same group of problem instances suggest the robustness of Benders decomposition in tackling instances with different number of stochastic scenarios involved.

Extending the proposed model and algorithm to a decision support system is possible, which utilizes the databases from enterprise's service planning and management information systems.

A novel decision-making model for the integrated rotable and expendable MRO spare parts planning problem under uncertain environment is developed, which is formulated as a two-stage stochastic programming model.

This viewpoint aims to increase the awareness on the demand faced by the technical sector of the Indian and Chinese aviation industry and how this can be met by the adoption of the European Aviation Safety Agency (EASA) regulatory framework.

A brief overview of the challenges that the Indian and the Chinese aviation industry is facing is provided, in terms of meeting the demand for sustainable growth. A description of the structure of the EASA framework and its main characteristics is presented, along with a focussed discussion on the framework’s applicability to the Indian and the Chinese aviation maintenance and broader continuing airworthiness sector.

The EASA regulatory framework can offer a safe and business-effective solution for the Indian and the Chinese aviation industry, aligning with world’s best practice.

A discussion in adopting the EASA framework in India and China can be helpful in increasing awareness and assisting decision makers realise that this is a possible option.

This viewpoint can be useful in provoking discussion, by summarising the key issues and points surrounding aviation regulation standardisation in India and China, along the lines of the EASA framework. Moreover, some possible ways to increase awareness around EASA in India and China are discussed from the point of view of influencing tomorrow’s decision makers.