Stock Funding Depot Level Reparable Parts: Implementation in a Contracted Out Aircraft Maintenance Environment.
Abstract
At the beginning of FY-93, the Air Force will begin stock funding depot level reparables. This is one of the most fundamental changes to spare parts management in their history. Stock funding of depot level reparables means that aircraft maintenance will now have to buy reparable parts from a supply stock fund. Formerly, they received these parts free issue. The whole idea stems from Defense Management Review Decision 904. Its prime directive is to force greater efficiency', throughout the repair process, but especially at base level. At Air Training Command's pilot training bases, new operations and maintenance accounts, valued at approximately $7-8 million each, will be established and managed by aircraft maintenance. While this will be a tremendous challenge to manage, it also presents significant opportunities and incentives to increase efficiency and save money. This paper discusses potential opportunities for savings in ATC that has contractor operated or Civil Service only maintenance organizations. In addition to addressing contractor incentives and sharing savings, this paper presents four specific recommendations for ATC. They are: 1. Concentrate on repair differences between bases first; 2. Identify potential candidates for repair improvements; 3. Consolidate maintenance and logistics functions at geographically close bases; and 4. Develop a decision model to determine if it is less expensive to repair an item only at the depot vs. limited repair by a contractor at base level.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 1992
- Accession Number
- ADA262036
Entities
People
- George C. Mccleary
Organizations
- Dwight D. Eisenhower School for National Security and Resource Strategy