The ROI of Innovation: Predictive Maintenance & The Supply Chain

Predictive Maintenance - A Paradigm Shift

Predictive maintenance is a revolution that is steadily chipping away at industry norms. With the advent of Predictive Maintenance 4.0, and the acceleration of AI and IoT technologies, aviation is going to see one of the biggest shifts in it’s history. That shift may not be the predictive nature of maintenance itself, but the resultant downstream innovations from having more cash to do just that - innovate. By predicting mechanical failures, airlines can plan their maintenance strategically, scheduling it during off-peak hours, and other obvious downtimes (downtimes now far more easily revealed with AI - Spirit Adds AI To Optimize Its Flight Schedules Performance - Travel Noire). This seeks to minimize the chaos and costs associated with AOG events. While the immediate urgency for parts may decrease, it is possible that the overall demand may stabilize or even increase due to proactive replacement scheduling and the tendency of the OEM and the suppliers to move more parts - let’s be honest…

Additionally, predictive algorithms provide a glimpse into the future of inventory management. Original Equipment Manufacturers (OEMs) and parts manufacturers can optimize their production and storage based on these insights, resulting in a reduction in holding costs leading to all around better financial health.

OEMs & Parts Manufacturers: Disruption & Revolution in the Supply Chain

• Alignment with Real-World Needs
  
  Predictive maintenance serves as a conduit for OEMs and parts manufacturers to sync their production schedules with actual market demands. This not only boosts efficiency but also enhances the effectiveness of the entire supply chain.
  

• Ripple Effect on Industry
  
  The benefits of this alignment extend industry-wide, hugely reducing the frequency of emergency repairs and AOG incidents.
  

• Financial Upside
  
  The overall decrease in unplanned events directly converts into significant cost savings. Airlines spend less on emergency maintenance, and suppliers reduce wastage, optimizing inventory in the process.
  

• Data-Driven Collaboration
  
  

  The shared data ecosystem that predictive maintenance fosters creates opportunities for co-developed solutions. These mutually beneficial innovations can range from new part designs to predictive algorithms, elevating the industry standard.
  

• Win-Win for All
  
  The end result is a more efficient, cost-effective, and collaborative environment that benefits airlines, OEMs, parts manufacturers, and ultimately, the consumer.

The Competitive Edge

Investing in predictive technologies such as IoT, AI, and big data analytics will likely be a reality for many. It propels companies to the forefront of supply chain efficiency. We have all seen how much it hurts when there’s supply chain disruptions or breaks.

Parts that possess superior data and predictive capabilities can attain higher prices due to visibility on downtime and the ability to manage inventory, which will reshuffle the competitive landscape.

Nutshell Outlook

Predictive maintenance, when leveraged appropriately with the right hardware and datasets, is going to take aviation to the next level of efficiency. Costs will come down as a result, which will equal a win-win for all involved. Innovation is great when it’s not stifled by bureaucracy!

Further Reading:


Predictive Maintenance & A Transforming Supply Chain (satair.com)

How Predictive Maintenance will transform your Supply Chain? | LinkedIn

Thoughts on IPO’s & Valuations

From where I sit upon and look, IPOs are often strategically positioned and priced accordingly.

There are a handful of primary factors behind the enigma that surrounds this situation. Next time you see an IPO, ask yourself questions aligned with these influencers and see where you land - especially within Aviation and the developments as of late:

• Underpricing as Strategy - Deliberate underpricing can attract retail investors and generate media conspiracy, serving as a tremendous marketing tool.

• Overpricing Risks - In a bullish market, overpricing can go wrong, leading to post-IPO nosedive.
  

• Founder's Loot - For founders, the real "loot" extends beyond money to include validation, legacy, and influence. Look at some of Silicon Valley’s finest..
  

• Investment Bank's Role - The conservative pricing by investment banks is a risk mitigation strategy to ensure the stock sells out.
  
  

  Consider IPO pricing as a form of "asymmetric warfare" where underpricing can be a disruptive strategy to gain market share quickly, akin to a "loss leader" in retail, which sets the stage for long-term dominance and buys time if need be.

Focus: It’s Everything

Andrew Huberman walks Through Dopamine Control - Extremely Valuable Tool:

Knowledge Key

The Tao of Seneca is a collection of his letters and essays. If you have not delved into stoicism, it’s worth a look. If only for the simple reason that it will teach you how to detach from a situation and view it objectively - which many have found priceless. Tons of insight on emotional intelligence, resilience, and how to act ethically and even more so practically, and with a long-range and growth mindset.

The Book is Free - Compliments of Tim Ferriss.

Ace Update

Ace doesn’t need predictive maintenance. He has speed tape, and he pulls circuit breakers. He’s been to the safety classes - but he just doesn’t know any other way.

Ace’s favorite tune, all time: “Treetop Flyer” - Stephen Stills

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