Case Study:Enabling ERP Efficiency for IAG Aero Group

Overview

IAG Aero Group is a global leader in aviation services, managing a diverse portfolio that includes IAG Materials, IAG Aero Americas, an engine shop in Miami, and a 50% joint venture with FTAI in an engine shop based in Rome. With a strong presence in the aviation industry, their operations span multiple critical functions, including engine repair, logistics, and supply chain management.

Similarly to the majority of other MROs in the industry, IAG Aero Group faced challenges in maximizing the utilization of their internal maintenance software system (ERP), in their case, Quantum Control. Recognizing the need for transformation, Larry Serlo (CCO) and Daniel King (President of MRO Services Americas) brought in Aero NextGen to optimize their ERP usage and drive operational excellence.

The Challenge

IAG Aero Group’s Miami engine repair facility was not operating at their full inefficiency due to several key issues with their ERP system:

• Inefficient ERP Usage: Quantum was underutilized, with many features either unknown or unused by the team.

• Data Quality Issues: Data entered into the system was inconsistent, inaccurate, and lacked standardization.

• Absence of Documented Processes: There were a lack of formalized processes across key business functions, including sales, operations, quality, logistics, supply chain, customer service, HR, IT, and finance.

• Operational Inefficiencies: The lack of system optimization led to manual workarounds, duplication of efforts, and missed opportunities for automation.

Objectives

To address these challenges, Aero NextGen partnered with IAG Aero Group with the following objectives:

1. Optimize ERP Usage: Enhance the functionality and efficiency of Quantum to support business operations.

2. Standardize Data and Processes: Implement data standards and document processes across all functions.

3. Drive Operational Efficiency: Identify inefficiencies and implement initiatives to improve productivity and reduce manual effort.

4. Empower the Team: Provide training and tools to enable the team to fully leverage Quantum’s capabilities.

The Solution

Aero NextGen conducted a comprehensive shopfloor assessment of IAG Aero Group’s Miami engine repair facility, uncovering areas of improvement and identifying initiatives to solve each pain point. The team matched IAG Aero Group with Quantum experts who introduced new functionalities and optimized existing ones within the ERP system.

Key steps taken included:

• Shopfloor Assessment: A detailed review of operations to identify inefficiencies, gaps, and opportunities for improvement.

• Process Documentation: Establishing clear, standardized processes for all business functions, including sales, operations, quality, and logistics.

• Data Cleanup and Standardization: Cleaning up existing data in Quantum and implementing standards to ensure accuracy and consistency moving forward.

• ERP Enablement: Introducing new Quantum functionalities, such as automated reporting, inventory management, and labor tracking, to streamline operations and reduce manual work.

• Training and Support: Providing hands-on training to empower the team to use Quantum effectively.

Examples of Findings and Initiatives

The assessment revealed a range of opportunities for improvement with the core intiatives following under the following categories:

1. Data Cleansing

2. Process Improvement

3. ERP Functionality Enablement

4. Labor Tracking

5. Inventory Management

The Results

The collaboration between Aero NextGen and IAG Aero Group delivered transformative results:

• 30% Increase in Efficiency: Optimized ERP usage and streamlined processes reduced manual work and improved productivity across all functions.

• Enhanced Data Accuracy: Data cleansing and standardization efforts ensured reliable and accurate data for decision-making.

• Improved Operational Visibility: Dynamic dashboards and automated reporting provided real-time insights into key metrics, such as labor productivity, inventory management, and work order status.

• Empowered Team: Training and support enabled the team to fully leverage Quantum’s capabilities, fostering a culture of continuous improvement.

Testimonial

Daniel King, President of MRO Services Americas at IAG Aero Group, shared his experience:
"Aero NextGen’s expertise was instrumental in transforming how we use our ERP system. Their structured approach, from identifying inefficiencies to implementing practical solutions, has significantly improved our operations. The results speak for themselves—our team is more efficient, our processes are standardized, and we now have the tools we need to scale our business."

Through their partnership with Aero NextGen, IAG Aero Group successfully transformed their ERP usage, unlocking new levels of efficiency and operational excellence. This case study highlights the power of data-driven insights, process optimization, and technology enablement in driving success in the aviation MRO sector.