Maintenance and Engineering

• Independent subsidiary of Varig Brazil

• Responsible for the full maintenance of the national carrier

• Responsible for maintenance for other group carriers (Varig Log, Pluna)

• Provide third party maintenance for B737, MD11, B767 and B777

• Main facilities in Rio de Janeiro and Porto Allegro

Project duration

• May - Aug 2002

Services provided by Lufthansa Consulting

• Redesign of the organizational structure and responsibilities in order to deal with new challenges
• Design of a cost center structure
• Design of algorithms for various cost allocation topics
• Selection of management parameters
• Selection of strategic parameters
• Preliminary design for management reporting

Project description

Varig Engineering & Maintenance (VEM) is a 100% subsidiary of Varig, the Brazilian national carrier. Since the beginning of 2002 VEM has become an independent company, which has meant creating various new business systems for the new company. These functions were previously performed by the corporate office.

One of the systems was a company controlling system, to enable the management to actively monitor and steer the performance of the company. It was necessary that the controlling system included strategic parameters and also allowed for strategic controlling.

Besides the introduction of the controlling system, organizational structures needed to be adapted in order to deal with the new challenges of an independent company. These adjustments also had to be reflected in the controlling structure.

Finally the new controlling system had to be suitable for implementation into a newly designed SAP R/3 environment.