In aircraft repair, the key aspects are quality, compliance and ensuring a cost-effective maintenance (Michael and D. Scott, 2012). 15% of the air carries budget is estimated to cover aircraft maintenance cost (Arnoult, 2010). Outsourcing of components repair has both positive and negative impact on the company in question. Therefore, this paper will address the various advantage and disadvantages of outsourcing component repair.
advantages
The first advantage it is cost effective as the contracted company assumes the cost hiring hence wages and benefits. Experts approximated that labor expenses cover two-thirds of the substantial maintenance visits. Outsourced contractors provide workers with the required skill and expertise as compared to in-house staffing. These contractors are professionals in the repair industry and therefore know what is needed and deliver in the minimum time possible.
Outsourcing also helps in reducing the responsibilities of the management hence giving them time to concentrate on the output rather than maintenance (Rieple, 2008). The cost and duties to of managing the payroll, timekeeping and some labor relations become the responsibility of the outsourced contractor. Outsourcing of maintenance helps reduce the cost of maintenance equipment.
Having in mind that there is a rapid technology change hence constant updates are needed in the tools and equipment. Also training the staff on the usage of the machine poses another issue, therefore, outsourcing this function helps in relieving the management of the duties.
disadvantages
The contracted company and the client may have different philosophies and management styles hence this may lead to conflicts between the two groups. Management redundancy is likely to happen in this case and inefficiency due to overlapping roles in the maintenance organization. This poses a significant disadvantage in outsourcing repair.
In case of a problem that requires instant attention, the response from a contracted maintenance company may not be instantaneous. The response time poses a significant disadvantage as most outsourced services don't operate at the companies vicinity hence leading to delay.
conclusion
It is clear, from the advantages and disadvantages given above, that the management has the mandate to decide between in-house maintenance and outsourcing component repair. According to the nature of the contract laid down. This approach may prove useful or the contrary. Therefore to establish whether this strategy is viable or not it the responsibility of the management to do a detailed scrutiny of these factors.
REFERENCES
Michael. M. and D. Scott (2012) global outsourcing of Aircraft maintenance: journal of aviation technology and engineering 1:2 (2012) 6373 DOI: 10.5703/1288284314659
Arnoult, S. (2010, October 26). Maintenance special report: the MRO quandary. Airline
Business. Retrieved from http://www.flightglobal.com/articles/2010/10/26/348942/maintenance-special-report-the-mroquandary.html
Rieple, A. (2008). Outsourcing for competitive advantage: an examination of seven legacy.
airlines. Journal of Air Transport Management, 14, 280285. doi:10.1016/j.jairtraman.2008.06.002
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