CEO, Management & Excellence SA
Dr. William Cox is CEO of Management & Excellence SA (M&E) in Madrid and M&E Global Inc., in New York. M&E was established in 2001 with the support of the IE Business School, Madrid, and is specialized in calculating the Return on Investment (ROI) of human capital processes, such as aviation training, customer services in aviation and supply chain. Its SMART ROI™ service has been successfully applied in over 110 client projects in most sectors, including Pratt & Whitney, Hartford.
Cox is author of six books and several hundred articles. He received his Ph.D. from the London School of Economics, a graduate degree in finance from the University of Oxford, two degree from Boston University and a Certificate in Finance from Harvard Kennedy School. He was a Visiting scholar at Georgetown and Freiburg Universities. He is a member of Who’s Who Germany, Austriam and Switzerland.
Is Maintenance Training an Important Profit Source for Airlines?
Maintenance training for engines and frames is an underestimated source of profits for airlines. Data on maintenance training conducted with an engine OEM on NB aircraft show that the ROI (return on investment) of maintenance training can easily be US$1-2 million per trained technician during an average period of 6-7 months following the training. The main direct sources of ROI include avoided unscheduled maintenance, avoided events and improved working efficiency.
The presentation will cover such points as:
• using a basic technician by technician ROI approach
• the importance of training at high quality OEM’s
• skill and knowledge areas yielding the highest ROI’s
• how to raise and airline’s maintenance training ROI
• projections through 2036 on how much airlines could save through proper maintenance training
• ROI as a decision model for defining a strategic maintenance training plan
Maintenance ROI calculations help take the guesswork out of maintenance training decisions. They help put dollars and cents to discussions about when to train which technical personnel in which skills. A ROI-based maintenance training strategy will improve airlines’ key performance indicators including:
• block hours/day
• ASM’s per aircraft/day
• average state length
• spare parts stock costs
• stage length
• employee productivity