Aviation Supply Chain Issues: GE Aerospace Solutions

Pune, Oct 14 (PTI) The overall supply chain situation in the aviation industry is constrained and GE Aerospace is solving some of the supply chain challenges with the help of its proprietary lean operating model, a senior company executive said on Tuesday.

FLIGHT DECK, the proprietary lean operating model, seeks to ensure sustainable performance and measurable results by integrating lean principles and tools.

The global aviation industry has been grappling with supply chain issues, especially after the pandemic, resulting in delayed aircraft deliveries even as airlines are looking to expand their fleets to meet rising passenger traffic demand.

Amol Nagar, Executive Director - Global Manufacturing Operations & Supply Chain at GE Aerospace, said the supply chain in the overall aviation industry is definitely constrained and there is more demand than the supply available.

"That is where our FLIGHT DECK is coming.. where we are making sequential improvement in working with our supplier partners and solving some of the supply chain challenges. We are making progress," he said during a briefing at the company's manufacturing facility in Pune.

As per GE Aerospace, FLIGHT DECK has helped reduce LEAP engine test cycle times by 50 per cent and increase supplier material input by 26 per cent.

The company is also working with various aerospace manufacturing companies and suppliers in India.

Over 1,400 commercial engines of GE and CFM power planes of Indian airlines. CFM is an equal joint venture between GE and Safran.

Supply chain challenges are estimated to cost more than USD 11 billion for the global airlines industry in 2025, a study released on Monday said.

The study, done by the International Air Transport Association (IATA) in collaboration with consulting firm Oliver Wyman, said the challenges within the aerospace industry's supply chain are delaying production of new aircraft and parts.

The worldwide commercial aircraft backlog was more than 17,000 aircraft last year, higher than the 2010-2019 period when the backlog stood at 13,000 planes per year.

The slow pace of production is projected to cost the airline industry over USD 11 billion this year, mainly due to excess fuel, additional maintenance, increased engine leasing and surplus inventory holding costs.