The Development and Application of a Value-Driven Aircraft Maintenance Operations Performance Assessment Model combined with Real Options Analysis

This research paper presents the results from the development of an Aircraft Maintenance Operations Performance Assessment Model (AMOPAM). The AMOPAM is able to assess the differences in performance in between two different states or scenarios of aircraft maintenance operations and is able to capture these differences both in the form of differential- (?V) and financial value (NPV). The AMOPAM is based on the combination of the Value Operations Methodology and Real Options Analysis. The input variables are Key Performance Indicators that have been identified as value drivers that can capture the operational and financial performance of aircraft maintenance procedures. The model is validated at a real life case at the aircraft maintenance department from KLM (Royal Dutch Airlines) E&M (Engineering and Maintenance). Hereby it was used to evaluate improvement opportunities for its recovery processes used in case of material unavailability. A regression analysis of the results of the case study has indicated a relationship between NPV and differential value. This has offered new insight in how the performance of aircraft maintenance operations can be assessed and how value can be interpreted from an operational and financial perspective.Control & OperationsAerospace Engineerin