slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Practical use of six-sigma for the IATA Fuel Program Tom Fodor Assistant Director E&M PowerPoint Presentation
Download Presentation
Practical use of six-sigma for the IATA Fuel Program Tom Fodor Assistant Director E&M

Loading in 2 Seconds...

play fullscreen
1 / 38

Practical use of six-sigma for the IATA Fuel Program Tom Fodor Assistant Director E&M - PowerPoint PPT Presentation


  • 176 Views
  • Uploaded on

Practical use of six-sigma for the IATA Fuel Program Tom Fodor Assistant Director E&M. IATA is an association of:. 230 airlines Representing 93% of scheduled international air transport. 2. 13-14 April 2010. Ops Conference . IATA ’ s Mission:

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Practical use of six-sigma for the IATA Fuel Program Tom Fodor Assistant Director E&M' - adelio


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide2

IATA is an association of:

  • 230 airlines
  • Representing 93% of scheduled international air transport

2

13-14 April 2010

Ops Conference

slide3

IATA’s Mission:

  • To represent, lead and serve the airline industry
  • Represent airlines’ interests to
  • governments & international organizations
  • Assist the airlines in
  • developing solutions
  • to the issues
  • affecting efficient
  • operations

3

13-14 April 2010

Ops Conference

slide4

Fuel Price Evolution

$138.7 / b

Platts, September 28, 2012

LFI Conference 2012

aviation climate change aviation is facing the challenge
IATA’s Four-Pillar Strategy

Invest in new technology

Operate more efficiently

Build & use efficient infrastructure

Use effective economic measures

Aviation & Climate ChangeAviation is facing the challenge

LFI Conference 2012

iata green team achievements 2005 2012
IATA Green Team Achievements 2005-2012

Americas: 17 Europe: 40 Africa/MENA: 27 ASIA/ASPAC: 27

  • 111 visits
  • 41.3 M tons of CO2
  • US $9.8 B

LFI Conference 2012

slide7

IATA Green Team Identified Savings Potential

  • Average identified saving is 5% of the airline fuel budget
  • Savings range from 2% to more than 14% (higher values for airlines that did not have a structured fuel efficiency program in place)
  • Based on the actual fuel efficiency assessments, the major savings come from Flight Dispatch and Flight Operations

LFI Conference 2012

iata methodology for fuel program

IATA Methodology for Fuel Program

  • Lean Six Sigma Methodology
  • Combines the Lean and Six Sigma methodologies
  • Lean: reduce waste and add value
  • Six Sigma: reduce variation in product output, data driven, uses statistical tools
  • IATA uses the DMAIC process for the fuel program

DMAIC Process

LFI Conference 2012

8

slide9

Phase 1

Phase 2

Phase 3

Phase 4

Implementation Plan

Implementation Execution

Define Baseline

IATA Fuel Efficiency Program – Phase 1

Fuel Program Setup

Define Baseline

  • Engage Executive Management Support
  • Define Corporate Fuel Process
  • Define Organization
  • Establish Fuel Team
  • Select Program Methodology

LFI Conference 2012

slide10

The Fuel Implementation Organization

Executive Sponsor, Fuel Manager, Fuel Team

LFI Conference 2012

10

slide13

Phase 1

Phase 2

Phase 3

Phase 4

Implementation Plan

Implementation Execution

IATA Fuel Efficiency Program – Phase 2

Define Baseline

Fuel Program Setup

LFI Conference 2012

slide14

IATA Fuel Efficiency Gap Analysis

  • Areas covered:
  • Flight Dispatch – 8 areas reviewed
  • Flight Operations – 14 areas reviewed
  • Engineering and Maintenance – 8 areas reviewed
  • Ground Operations – 3 areas reviewed
  • Cabin – 4 areas reviewed
  • Objectives:
  • Reduce weight
  • Reduce drag
  • Reduce engine specific fuel consumption

LFI Conference 2012

slide15

Basic Data – Fuel Budget

Calculated for the previous 12 month period

LFI Conference 2012

b747 400 fuel penalty for extra weight
B747-400 Fuel Penalty for Extra Weight

B744 weight factors

4 Hours 3.9%

7 Hours 4.1%

8 Hours 4.1%

12 Hours 4.7%

LFI Conference 2012

16

slide17

Basic Data – Fuel Penalty

Fuel burn (penalty) in kilograms to carry 1 kg additional weight on the entire fleet for 1 year

LFI Conference 2012

17

slide18

Initial Assessment of Potential Savings

Example: Potable water quantity reduction

Fuel savings calculated based on water consumption of 0.3 l / pax / hr using average flight length

LFI Conference 2012

slide19

Phase 1

Phase 2

Phase 3

Phase 4

Implementation Execution

IATA Fuel Efficiency Program – Phase 3

Define Baseline

Implementation Plan

Fuel Program Setup

LFI Conference 2012

slide20

Implementation Management

  • “Formalize” in the Planning Process:
    • Documented and detailed implementation plans
    • Detailed timelines with well-defined milestones
    • Accurate measurements and tracking results to plan
    • Quantification of periodic and cumulative benefit to the airline

LFI Conference 2012

20

slide21

Rating the Project

Benefit

Effort

LFI Conference 2012

21

slide22

Setting Priorities

Start Here

LFI Conference 2012

22

slide23

Safety Risk Management

Mitigate / Eliminate the Risk of Safety and Uncertainty

LFI Conference 2012

23

project work plan
Project Work Plan
  • Project timeline and the milestones depend on:
    • Required resources, carry out survey
    • Development of new servicing procedures based on the survey results

LFI Conference 2012

slide25

Communication / Change Management

  • Internal communication to include:
    • Ground Operations management and personnel
    • Flight Attendants and Pilots
    • Supply Chain / Contract Management
    • Internal stakeholders
  • External communication:
    • Ground Service Providers

LFI Conference 2012

slide26

Selecting KPIs

  • KPIs Should be SMART
    • Specific – Clearly defined performance requirement
    • Measurable – Defined in a quantifiable way
    • Achievable – Realistic, manageable
    • Relevant – Directly related to the desired goal
    • Time-constrained – Set to a defined time span

LFI Conference 2012

26

using business information kpis
Using Business Information (KPIs)

Example of an Executive Level Dashboard

KPIs are supported by trend graphs & performance measures to show progress against the specific targets in each initiative of the program

LFI Conference 2012

27

slide28

Key Performance Indicator (KPI) & Operational Performance Measures (OPMs)

  • The company’s KPI and supporting OPMs for the project are:
      • Part of the overall weight reduction initiative (KPI)
      • Reduction of water servicing quantity in consideration of passenger load and flight length plus other considerations (OPM)
      • % of flights serviced to policy level (OPM)
      • Resultant fuel savings when comparing actual water weights carried to pre-initiative baseline levels (OPM)

LFI Conference 2012

data requirements
Data Requirements

LFI Conference 2012

  • Data elements for tracking actual results
    • Aircraft water tank capacity
    • Projected flight time and associated policy water volume
    • Actual water volume after servicing
    • Volume of water remaining on arrival
    • Number of passengers and crew
    • Flight time (block to block)
    • Planned consumption rate
    • Actual consumption rate
  • Identify source of data
  • Ensure data quality
slide30

Implementation Plan

Project / Objective

Benefit / Effort, Priority

Target Savings

Issues / Tasks

Duration / ROI

LFI Conference 2012

30

slide31

Phase 1

Phase 2

Phase 3

Phase 4

IATA Fuel Efficiency Program – Phase 4

Implementation Execution

Implementation Plan

Define Baseline

Fuel Program Setup

  • Tracking Results
  • Analyze Results
  • Adjust Policies and Procedures
  • Sustain & Control

LFI Conference 2012

build statistics
Build Statistics
  • Track actual savings against plan and identify under-performing areas
  • Savings can be calculated from weight reduction and fuel penalty value

LFI Conference 2012

slide33

Monitor Performance

LFI Conference 2012

slide34

Monitor Performance

  • Look for significant variance from plan
  • Implement corrective action accordingly

LFI Conference 2012

slide35

Adjust Policies and Procedures

  • Continuous progress check
  • Identify any implementation issues
  • Improve procedures as necessary
  • Institutionalize changes for sustained results
  • Modify organization structure if required

LFI Conference 2012

slide36

Institutionalize the Improvements

To sustain and control results:

LFI Conference 2012

fuel book 5th edition implementation guidance material
Fuel Book 5th Edition & Implementation Guidance Material

Fuel Efficiency Program

Implementation Guidance

Material

5th edition

Fuel Book 5th edition highlights:

  • Time dependent maintenance costs
  • Aircraft performance monitoring (APM)
    • Released: October 2011

Implementation Guidance Material:

  • Setting priorities
  • Risk assessment
  • Building a strong business case
  • Program management
  • Metrics for tracking implementation
  • Key Performance Indicators
    • Released: June 2011

LFI Conference 2012

slide38

Thank you!

IATA Fuel Efficiency Regional Workshop - Amman

IATA Fuel Efficiency Regional Workshop - Geneva

38

38

Oct 6-7, 2009

June 9-10, 2009

Singapore Airlines

38

23 Jan 2009