Cessna Parts Distribution, the Art and the Science

Jack Stiffler, vice president Citation Parts Distribution and eight-year Cessna veteran, completed the move to a new facility three and a half years ago. Stiffler is responsible for Cessna's Citation aftermarket business including Cessna's Citation parts distribution facility, inventory, supplier management, sales, aftermarket operating cost programs such as ProParts and PowerAdvantage, and Citation parts warranty.

The state-of-the-art parts facility located just across the street from Cessna's corporate headquarters is organized yet constantly being tweaked, according to Stiffler, who said he encourages his people to try new methods of storing parts in an effort to increase efficiency. He pointed out a rack of hydraulic tubing as an example of employee-designed dense-packing. As with many supply houses, RFID (radio-frequency identification) tags are used to track inventory. Racks are stacked to the ceilings with larger items such as wings and windshields, already packed, boxed, barcoded, and ready to be shipped.

Stiffler shared the philosophy behind Cessna's success in supporting its fleet with parts. "I believe in the 5 S's," he said. "Speed, simplicity, scalability, supportability, and sustainability. If we can't support it we don't want it on an airplane.

"We have 1,000 aircraft in the ProParts fleet. That's 70 percent market share. That's statistically significant. That gives us significant insight to the true consumption rate tied to a specific tail number. We take that data and compare to forecast and identify variation. With this information we work out a specific plan," he said. "Within the supplier management organization we model aircraft mathematically. We look at representative parts with regard to price and supplier promises. That mathematical number is the number we guarantee. If I don't do what the math says, it's self-defeating." Stiffler stressed that other parts supply houses don't have access to those sources of in-depth analysis. "So that gives us a unique knowledge, and I feel very comfortable with our knowledge," he said.

Cessna, like many companies today, is focusing on the aftermarket business as an area of business growth. Stiffler said that the aftermarket is becoming more of a cooperative effort between the company and the customer. "The aftermarket used to be an afterthought," he said. Cessna has focused on its commitment to customers. "Seven out of ten of our customers are repeat customers. So we take some credit for that," he said. "We try not to have to do this but if we have an aircraft AOG and don't have the part on hand, we will go over to the factory and get the part off the assembly line. We have carte blanche." As with all OEMs, Cessna is highlighting the aircraft availability issue. "Dispatch/operational availability is an area we all have room to grow in," Stiffler said.

One of the ways Cessna Parts is attempting to tackle operational availability is with the initial design of an aircraft. "We represent our interests concerning new aircraft with an integrated engineering team," he explained. "We compare the new model with other models and see what systems are the same or similar. Then we look at the data from those and using that information and whether or not it is tracking to what the suppliers have said, we make our plan. From there we work out the growing pains. For the rest of the parts, we are looking at the strength of the supplier relationship and using a judgment factor based on that relationship." In addition, the warranty period comes into play. "There is a perception that the warranty is insurance. But clearly it is a time period that during the initial years if something breaks, we are going to take care of it, pay for it," he said.

Stiffler said that he and his team plan and prepare for any eventuality using a wealth of knowledge gained over years of support. "I put our organization against any organization," he said. "Our understanding of the business side of aftermarket operating expenses is unique." -- By Joy Finnegan