A six sigma based benchmarking framework for maintenance logistics provider

The selection of maintenance logistics service providers is an intriguing practical research question in the aviation industry particularly for airline who would like to position themselves as world class airlines. The cost of replenishing components, the line and base maintenance and control and inventory management for an airline, are substantially high in running airline business. In particular airlines are interested in the selection of partners and the subsequent monitoring of their performance for the specific function provided. Although business partnership has been proposed for a number of decades, it remains an important strategy in today’s acute economic environment to form such partnerships successfully. This paper outlines the design of a Customer Satisfaction Driven Supplier Relationship Management System (CSRMS) using the six sigma methodology to select potential suppliers from a supplier list for maintenance logistics service providers. By applying CSRMS in local maintenance service providers, the maintenance cost is found to reduce significantly.