Maintenance training generates roughly a 600% return in 3-4 months
Maintenance professionals at airlines, OEM´s and training companies are often challenged with their executives asking “Is training worth it or can we cut costs in this area?” Demonstrating maintenance training´s financial contribution to their companys´ bottom lines would successfully confront this challenge. It could give Training departments a seat at the profit/loss table–on the profit side of the table.
Data we jointly presented with Pratt & Whitney´s Bruce Hall, Managing Director of the Customer Training Center, at the 2017 WATS aviation conference in Orlando demonstrated high ROI´s for engine maintenance training. We analyzed 10 airlines´ data over a 9-year period and P&W training data, yielding highly consistent results on the ROI of engine maintenance training in mid range aircraft (e.g. A320).
The main sources of ROI were reduced events (D&C´s, ATB´s, ABTO´s), more efficient troubleshooting, avoided unscheduled engine removals (UER´s)–all of which reduced the aircraft on ground time and improved aircraft reliability.
If we included UER´s, the ROI exploded by thousands of percent.
Raising the ROI of maintenance training is key
While it´s good to know your maintenance training ROI, the goal should be raise your ROI and contribute more to your company´s bottom line. SMART ROI™ analyzes 50-150 variables in its aviation projects. This yields enough detail to pinpoint exactly what you need to do to raise your training maintenance ROI.
Optimizing training curricula and training the right people at the right time and in the place can easily raise maintenance training ROI almost overnight. SMART ROI™ makes it easy for you to decide what to do because it produces financial numbers for all options.
Finally, SMART ROI™ includes a Real Time ROI Monitoring service which allows you and your executives to see how profitable your maintenance training is week for week, month for month, quarter for quarter.
Governance & Compliance: Changing costs to profits
Governance is normally considered unprofitable. Companies see it as an annoying compliance exercise imposed on them by regulators. Thinking of governance as a source of profits might sound counterintuitive.
Do you know for a fact whether governance and compliance in your company are unprofitable? According to our experience, governance and compliance generate a return quite a bit higher than a company´s cost of capital–in the worst cases.
In the best cases, governance and compliance measurably reduce a company´s risk and raise its returns by hundreds of percent annually.
SMART ROI™ calculates and improves the risk & return of governance and compliance in your company, division, area, process and project.
The ROI of EBT pilot training
We are among the only companies able to calculate the ROI of Evidence Based Training for pilots. In this, we entered into a formal relationship with SALIENT (www.salient.aero) to calculate the ROI of EBT training carried out by SALIENT in airlines. Pilots trained in EBT acquire competencies and skills enabling them to more safely and efficiently handle surprise situations in the cockpit. EBT trained pilots assess surprise situations more systematically and safely, avoiding unnecessary go arounds or worse events. This reduces delays and cancellations and all associated costs, and raises customer satisfaction and thereby revenues. A delay & cancellation of a single aisle aircraft typically costs an airline between $83 and over $200 per minute.
Raising governance returns
To raise profitability from individual governance and compliance processes and projects, SMART ROI™ analyzes each process and project, calculates its ROI, recommends how to raise this ROI and monitors its ROI over time using Real Time ROI.
The below chart shows typical ranges of ROI´s from governance processes and projects achieved by our corporate clients:
|Governance, compliance project||ROI Margin||Period||Positive financial impacts|
|Code||+10,000%||1 year||Op ex, revenues, penalties, legal|
|Governance, ethics, compliance training||+500%||3-6 months||Op ex, revenues, penalties, legal|
|Cyber governance||+50% – 900%||1 year||Op ex, reduced cyber costs|
|Compliance officer & dept||Source of most ROI´s||1 year||Large proportion of financial impacts|
|Regulatory compliance||+3,000%||3 years||Risk, penalties, legal costs|
|Risk report||+15,000%||1 year||Stock price, rating agency scores|