2015 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE PHASE 2 _____________________________________________________________________________ 2015 Program Excellence Award I. Program Overview Organization Name/Program Name: Lockheed Martin Missiles and Fire Control Sniper® Advanced Targeting Pod (ATP) Program Leader Name/ Position/Contact information – E-mail, Phone Kenneth J. Fuhr Program Director, Fixed-Wing Programs [email protected] 407-356-8075 Program Category Program Background: What is this program all about? (No more than one page). The overarching need for this program History of the program The product that is created by this program Scope of work – original & updated Expected deliverables Current status of the program Sub-System Sustainment Sniper Advanced Targeting Pod (ATP) is a precision targeting system employed on F-16 Block 30-50, F-15E, F-15C, A-10, CF-18, B-1B and B-52 aircraft. In continuous production since 2001 and continuously deployed in support of combat operations since 2005, it is the United States Air Force’s (USAF) ATP of record, having successfully won the USAF’s 2001 ATP competition and 2010 ATP-SE (Sensor Enhancement) competition. The Sniper ATP Performance-Based Logistics (PBL) program provides critical sustainment support to the USAF and Air National Guard (ANG) for their fleet of Sniper ATPs operating on F-16 Block 30-50, F-15E, F-15C, A-10, B-1B and B-52 aircraft at combat, operational and training locations around the world. The PBL program delivers Fleet Availability (FA) through a sustainment system that provides OrganizationalLevel (O-Level) support, depot-level support, transportation, supply chain management and reliability analysis. Sniper ATP has accumulated over 1.6 million operational flight hours on U.S. and international airframes with a Fully Mission Capable (FMC) rate that consistently exceeds contract requirements. Sniper ATP’s industry-high FMC rate is the result of the pod’s world-class reliability, high-quality modular design and effective built-in-test and auto-boresight self-alignment functions. Sniper ATP’s Line-Replaceable Unit (LRU) system enables true two-level maintenance for unmatched combat availability, rapid low-risk operation and the industry’s lowest total cost of lifetime ownership. Copyright 2015, Lockheed Martin Corporation. All rights reserved 1 II. VALUE CREATION = 20 POINTS Note that we have provided a weighting system on this section that indicates importance to the overall A&D enterprise in improving performance. Value: 50% of category score What is the long-term value, competitive positioning, advantage, and return created by this program to your: Customers – National interests, war fighter Company – Strength, bottom line, and shareholders Scientific/technical value (particularly for R&D programs) 50% of category score Excellence and Uniqueness: What makes this program unique? Why should this program be awarded the Program Excellence Award? Sniper ATP delivers customer value through world-class performance in the following areas: Fleet Availability: The Sniper ATP support structure delivers FA well in excess of contract requirements. When the U.S. Secretary of Defense awarded the Sniper PBL team the Sub-System PBL Program of the Year Award in 2014, it was recognized that, on average, an additional 50 pods were available to users due to FA rates exceeding requirements. High FA rates are achieved through a combination of rapid transportation, efficient depot operations, effective training and technical manuals, world-class technical support, high reliability and integrated supply chain management. This holistic approach to providing FA reduces the logistics footprint and leads to a more efficient, customer-based solution. Reliability: A consistent reliability improvement program is maintained via the Sniper PBL Reliability and Maintainability (RAM) team. The RAM team utilizes a closed-loop Failure Reporting and Corrective Action System (FRACAS) that evaluates all Sniper ATP failures for emerging failure modes. This iterative process enables prompt identification of reliability degraders and root causes, serving as a foundation to implement corrective actions and push reliability improvements to the field. This has resulted in Sniper ATP exceeding the customer’s Mean Time Between Maintenance Event (MTBME) requirement by 36% over the past 12 months. This reduces the burden on maintainers and helps them achieve mission success. Customer Partnership: The Sniper PBL depot is an innovative, performance-based partnership between Warner Robins – Air Logistics Complex (WR – ALC) and Lockheed Martin that has generated numerous benefits, including improved depot throughput, reduced Awaiting Parts (AWP) conditions and reduced Retest OK (RTOK) occurrences. The collaborative relationship optimizes support to the warfighter by leveraging three types of Public/Private Partnerships, including Lease of Government facility space, Work Share Agreements and a Direct Sales Agreement. In addition to the Sniper PBL program, the partnership also contributes to the local economy through employment of highly skilled personnel in Warner Robins, GA. This multi-year partnership, and the Government/Lockheed Martin commitment to keep it viable, serves as an example of what Government/Industry cooperation can achieve. The 2015 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 2 partnership is a symbiotic relationship that leverages the strengths of both organizations to allow for a level of success not possible separately. It also supports USAF compliance with Title 10 Core and 50-50 requirements by contributing 52% organic depot work share. Excellence and Uniqueness: There are a number of unique aspects of the Sniper ATP program that have led to award-winning performance excellence that will be highlighted throughout this submittal. Some of these aspects include: the FA performance that is delivered through the twolevel maintenance structure, the public/private partnership with WR-ALC, and the systems engineering approach to sustainment. III. ORGANIZATIONAL PROCESSES/BEST PRACTICES: (HOW DO YOU DO THINGS) = 30 POINTS Note that we have provided a weighting system on this section that indicates importance in the evaluation process. For each question, respond with the best practices and unique processes used by your program. Team Leadership 30% of category score Teaming: Organizational structure, employee empowerment and customer communication are key factors in the success of the Sniper ATP PBL program. The team is organized so that there is Teaming a lead individual responsible for each customer area and each What unique processes and practices have you put in place operational area. The leads are empowered to operate to maximize team collaboration independently and make decisions on day-to-day activities and efficiency? without a burdensome approval chain. Team leads are active in producing work product as well as performing their leadership Supply Chain With the broader distribution of roles. This serves to flatten the organization, increase efficiency and improve communication. design, development and production responsibility across the supply chain what unique tools, processes and practices have you put into place to ensure integration of the total supply chain (up/down/across)? The depot partnership with WR-ALC is another example of a unique teaming arrangement. The symbiotic relationship between LM and WR-ALC has fostered an environment that acts more like a team than a customer-subcontractor relationship. People Development Among the most important roles of a leader is the identification and development of talent. What unique processes, tools and practices have you put into place to ensure people are developed and given the opportunity to risk, fail, recover and fully contribute? What metrics have you put into place to ensure Supply Chain Management: The Sniper ATP material supply chain is managed by a centralized team of Subcontract Managers that ensure material requirements are met for engineering development, production and sustainment. This includes managing 1,800 part numbers across 210 suppliers. Dedicated team members are assigned to the 10 major Sniper ATP suppliers to manage the delivery of critical components. Stability and predictability is built in to the Sniper ATP supply chain through long-term supplier agreements. 75% of the Sniper ATP Bill of Material (BOM) is under long-term agreements with key suppliers. Lockheed Martin has established the South East 2015 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 3 this effort is effective? Material Acquisition Center (SEMAC) to centralize the purchasing of commodities across the company. This allows for better buying power, material availability and horizontal integration across numerous programs. Sniper ATP utilizes a flexible Material Resource Planning (MRP) tool that enables the program to share material between production, sustainment and engineering material development requirements. It also allows orders from multiple sources to be combined in order to maximize economic order opportunities. There are 15 suppliers that provide depot repair capabilities in support of sustainment activities. The performance of these suppliers is managed jointly by the Subcontract Management team and Product Support. Performance is monitored on a continuous basis through metrics like Turn-Around-Time (TAT) and “bad from supply” rates. Issues are addressed utilizing the relationships built between the subcontract managers and their supplier counterparts. Repair agreements have been established for critical repair suppliers that include required TATs and fixed price repair prices. People Development: The following tools/practices are utilized by the Sniper ATP program to identify and develop talent: Knowledge Continuity – This process is used to identify subject matter experts and pair them with early-to-mid career talent to ensure knowledge is being effectively transferred through the organization and retained within the company. Mentoring – All employees are encouraged to have a mentor and utilize the relationship for professional and technical development. Stretch Assignments – Employees with a history of high performance and potential are asked to take on assignments/projects outside of their normal scope of work to facilitate personal development. They are often paired with a mentor/lead to assist them in their new assignment. Training and Development – A formal training and development program is used to build technical skills and leadership characteristics with Lockheed Martin’s Full Spectrum Leadership model. The effectiveness of the tools/practices listed above is apparent in the most recent employee survey. In three key categories relating to personnel development, Sniper ATP outperformed the corporate satisfaction rating by 9.2%. Additionally, Lockheed Martin is committed to developing USAF maintainer talent through special O-level training sessions. Quarterly maintenance training is offered on site at Lockheed 2015 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 4 Martin Missiles and Fire Control – Orlando at no additional cost to the individual units. Training sessions are also provided on site when LM identifies a location that requires additional training to improve performance. Operations 40% of category score Cycle Time: The two most critical cycle times associated with a PBL contract include repair TAT and transportation time. Cycle Time Please describe what your program has done to reduce and continue to improve the cycle time required for the phase of life cycle in which you currently are executing (design/develop, produce, sustain). Include in your description the tools, processes and practices used as well as the metrics. Repair TAT: The primary source of Sniper ATP repairs is the Sniper PBL depot located at Robins AFB in Warner Robins, GA. As previously mentioned, the depot operates as a partnership between Lockheed Martin and WR-ALC. The partnership leverages the strength of each organization, with Lockheed Martin providing supply support, transportation and technical support while WR-ALC provides facilities and personnel. As of May 2015, repairs at the Sniper PBL depot are completed in an average of 7.8 days against a goal of 15 days. Transportation TAT: The transportation of LRUs to and from the end user is managed by Lockheed Martin at the Sniper PBL depot. Lockheed Martin has established commercial shipping licenses for all overseas locations where Sniper ATP operates. By constantly monitoring transportation time performance of commercial carriers, Lockheed Martin is able to select the best provider and keep shipping times within acceptable limits. Regular communication with the USAF customer is maintained to continually evaluate the need to establish additional licenses Describe how your program based on future USAF requirements. When a new license is has developed or implemented required, the Sniper ATP team coordinates with the LM new and unique tools, International Traffic Compliance group to quickly make the processes and practices to reduce cycle time for your request and have the license issued. By quickly and thoroughly program’s specific stage of the responding to the needs of our customers, we are able to keep lifecycle (design/develop, shipping cycle times down and avoid delays caused by improper produce, sustain). shipments. Currently, the time it takes to complete a domestic shipment is 1.2 days. International shipments are completed in Planning, Monitoring, and Controlling 3.1 days. This is a significant improvement over traditional What are the most significant military transportation systems, which can take weeks to change elements your program complete an international shipment. dealt with in the past 36 Efficiencies Affordability and breaking the cost curve are among the most important challenges facing all program managers. Describe the areas you have targeted to improve your costs and how you resolved these challenges for each target. months, and what unique best practices and processes did you implement to make these changes. (Examples of change: intellectual property, shortages of critical supplies/raw materials.) Efficiencies & Affordability: The Sniper PBL team has delivered significant cost savings and value over the life of the program. Over the last four years, specifically, these savings are seen in the form of lower total support costs during periods of lower operating tempos and greater per operating hour values during times of higher operating tempos. During Sniper ATP’s most recently completed Availability Support period (2013 - 2015 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 5 2014), total support costs were 22% lower than the period four years prior (2010 – 2011). Unique Tools & Processes: The Sniper PBL program utilizes an integrated total systems engineering approach to meet the principal contract metric of FA. The Sniper PBL team has instituted a process to continuously monitor and identify critical health and performance indicators such as operating hours, demand trends, repair rates, retrograde returns, Could Not Duplicate (CND) field failure and supplier performance. This proactive approach allows for early trend identification and rapid stock posture adjustments, resulting in increased mission capability for the fleet. All retrofit improvements, including software, are planned, coordinated and integrated to minimize the impact to the fielded systems. The modularity of the Sniper ATP system allows for significant field retrofits, like the Compact Multiband Data Link (CMDL), to be easily implemented at the flightline while reducing work load and system down-time. Individual Sniper ATP availability and spares orders are reviewed daily by a dedicated team of field engineers who analyze trends, identify anomalies and provide technical support to ensure FA goals are met at each location as well as at the total fleet level. Planning, Monitoring, & Controlling: The Sniper ATP PBL team significantly reduced the logistics footprint of Sniper ATP by reducing the quantity of pods in the fleet being cannibalized (CANN) for spare parts. After Field Service Engineers (FSEs) assessed the magnitude of ongoing cannibalization via a webbased tool, action was initiated to bring the CANN pods back to FMC status. A simultaneous action educated and encouraged users on the value of the PBL system to build confidence in spares availability, resulting in a 364% reduction of average CANN pods per month. Strategic Operations 30% of the score In addition to exceeding the contract-required FA rate, the Sniper ATP team utilizes a web-based system to track the daily FMC rate for the USAF’s fleet of Sniper ATPs. When an individual On an on-going basis – how do unit’s FMC rate drops below an acceptable level, Sniper ATP you track and improve the FSEs will reach out to that unit and provide technical assistance value of this program to your customers, corporation, to bring the FMC rate back to an acceptable level. This is organization, and employees? valuable to the customer because it provides a consistent level of pod availability that doesn’t vary over any period of time. Specifically, what processes, tools and practices have allowed the value of your program to increase? 2015 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 6 IV. ADAPTING TO INNOVATION AND COMPLEXITY: (HOW DO YOU DEAL WITH YOUR PROGRAM’S UNIQUE COMPLEXITIES) = 20 POINTS Identify the Program’s Market Uncertainty level – How new is your product to your market and users, based on the definitions below. Then describe how you deal and address this specific uncertainty: - Derivative – an improvement of an existing product/system. - Platform – a new generation in an existing product line. - New to the Market – a product or system adopted from another market - New to the World breakthrough product, never seen before Level of Market Uncertainty Level (choose one) __x_ Derivative ____ Platform ____ New to Market ____ New to the World Identify the Program’s Technological Uncertainty using the definitions below. Then describe how you deal and address this uncertainty: - Low-tech: application of mature, well-established technology - Medium Technology: existing technology modified to meet new design requirements - High-Technology: recently developed new technology - Super High-Technology: non-existing technology that needs to be developed during the program. Technological Uncertainty Level (choose one) ____ Low Technology __x_ Medium Technology ____ High Technology ____ Super High Technology Identify the level of your System Complexity using the definitions below. Then explain how you are dealing with this level of complexity: System Complexity (choose one) ____ Assembly __x_ Sub-System ____ System ____ Array of Systems Sniper ATP has been fielded and supported under a PBL contract since 2005. The system has undergone multiple hardware and software upgrades in the last 10 years. The sustainment of Sniper ATP has evolved with the hardware because Product Support is integrated closely with engineering and production. Supportability engineers are assigned to the hardware Integrated Product Teams (IPT) to ensure that supportability features are properly designed into the system during the initial concept and detailed design phases. These engineers perform electrical stress analysis; implement de-rating and design guidelines; perform failure modes, effects, and criticality analysis (FMECA); and conduct cost-trade studies. This process ensures the logistics individuals are included in the entire program life-cycle, thereby creating inclusion and ensuring decisions are made that make future sustainability easier. The primary area of technological uncertainty associated with Sniper ATP sustainment is obsolescence. The Sniper PBL team maintains an obsolescence management program that proactively manages, mitigates and resolves obsolescence issues before they impact operations. In this process, supply levels are identified for each unique obsolescence and Diminishing Manufacturing Sources (DMS) case, and potential shortfalls are addressed prior to any supply impact. Through an active technology management program encompassing obsolescence and DMS monitoring, 19 critical obsolescence and DMS cases have been identified since 2012. 15 have been resolved, resulting in substantial cost avoidance. 12 of the 15 cases were mitigated through last-time buys totaling 1,097 parts. The remaining cases were mitigated through the identification of alternate parts. 2015 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 7 - An Assembly performing a single function. - A Sub-system fitting within a larger system. - A System – a collection of subsystems performing multiple functions. - An Array – a “System of Systems”; a widely dispersed collection of systems serving a common mission. Sniper ATP is categorized as a sub-system. Sniper ATP’s modular design is created specifically for two-level maintenance and low life-cycle cost. Sniper ATP has no scheduled preventive maintenance or services. All maintenance actions are detected via the on-board diagnostics system and can be accomplished at the flight line (O-Level) with the pod still mounted on the aircraft by using built-in-test (BIT) and a small kit of common hand tools. All the LRUs are interchangeable, self-aligning, self-calibrating, interoperable and modular. Sniper ATP’s ability to auto-boresight critical LRUs eliminates the need for intermediate-level support equipment, significantly reducing sustainment costs. The modularity, BIT and internal automatic boresighting of Sniper ATP give maintainers a critical advantage because they allow for true two-level maintenance, outstanding weapon system availability, cost-effective sustainment and low total cost of ownership. Identify the Pace and Urgency of your team’s effort using the definitions below. Then describe how you deal with the program’s pace requirements: - Regular timing – no specific time pressures. Fast/Competitive – time to market is important for competitiveness. - Time Critical – there is an absolute and critical-tosuccess deadline. - Blitz – there is a crisis element driving the need for immediate response Pace and Urgency (choose one) ____ Regular Timing __x_ Fast/Competitive ____ Time Critical ____ Blitz The Sniper ATP PBL program is an established multi-year arrangement with the USAF and ANG. The program operates in a fast/competitive environment because of the critical nature of the mission and the competitive nature of the contract. The team has to be able to react quickly to urgent support requirements as they arise. FSEs are regularly sent to sites within days of receiving requests for support. Previous site activations have been delivered months in advance of contract requirements. Depot repair times are routinely completed in less than 10 days. Most spares orders are filled in the same day the order is received. CONUS shipments are made via overnight service. OCONUS shipments take only days. A sense of urgency exists on the program to ensure our customers’ expectations are always exceeded. V. METRICS (HOW DO YOU MEASURE PROGRAM’S PERFORMANCE) = 30 POINTS 40% of category score Customer/Performance How do you measure the impact of your program on your customer and your customer’s satisfaction? Include a description of unique/new metrics, as well as Performance to Requirements: The Sniper ATP sustainment contract has two primary metric requirements: FA and MTBME. In the last 12 months, the FA rate exceeded the contract requirement by 7.5%. Further, since the current contract began in 2014, the FA rate has continuously exceeded the contract requirement by no less than 5.6%. This measurement directly correlates to the quantity of Sniper ATPs that are able to perform missions. By exceeding the FA rate, Lockheed Martin is 2015 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 8 numerical evidence (normally a percentage or rate). Focus on the unique metrics developed to provide an efficient way to effectively communicate this information to your customers and within your organization beyond your program team. 20% of category score Team - How do you measure and assess the impact of your program on your team development and employee satisfaction? providing the USAF additional assets and expanding the Sniper ATP fleet for their operational use. The MTBME metric has been exceeded by 36% in the last 12 months with no single month falling below the contract requirement. Exceeding the MTBME requirement impacts the customer by reducing the maintenance burden the Sniper ATP imposes on O-level avionics maintainers and allows them to focus on the maintenance of other less reliable systems. Customer Satisfaction: The Sniper ATP PBL contract is assessed in the Government’s Contractor Performance Assessment Rating (CPAR) system. Since 2008, Sniper PBL has received all “Exceptional” ratings – the highest possible score. Exceeding contract requirements, quickly responding to customer requests and providing outstanding field technical support are some of the things that are recognized by our customers in the annual CPAR reports. Below are quotes directly from the most recent Sniper ATP CPAR report: “Contractual Fleet Availability rates remained consistently high throughout this period…” “The quality of the product has exceeded expectations in terms of reliability.” “The Contractor is highly proactive in managing obsolescence issues and is extremely effective in incorporating new components for repair efforts while maintaining 100% positive configuration control.” “The Contractor expertly managed spares and consumable parts as part of the successful public-private partnership…” “The Contractor’s focus is on program execution, affordability and the commitment to complete key milestones on schedule, continuously improve the quality, and focus on the customer's needs.” In addition to instituting one-on-one feedback sessions between employees and immediate supervisors twice a year, MFC conducts an employee survey. This survey gauges employee satisfaction and areas of concern. Results are tabulated and distributed, and action plans are developed as trends emerge. Surveying employees and taking responsive action has proven very successful in measuring employee satisfaction and is an ongoing process. Feedback from employees on this program was very positive. Employees met commitments and provided an enabling capability to the Warfighter; they felt extremely satisfied with doing so. The Sniper ATP program in particular has been successful in developing employee satisfaction. In the most recent survey, Sniper ATP scored 6.6% better than the Corporation’s already favorable score across six categories measuring employee 2015 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 9 40% of category score Unique Metrics - Describe unique metrics you are using to measure your program’s progress and how you focus it for outstanding and future success. satisfaction. In addition to the contract-required metrics mentioned above, Lockheed Martin maintains a database of metrics that allow program management to assess the health of the program and implement improvements before the contract-required metrics are affected. Below is a list of some of these metrics and how they are used to drive program execution. Depot Repair Operations Repair Turn-Around-Time – This is an overall measurement of the depot repair system. Keeping TAT low increases the quantity of spares available to fill field orders and reduces the quantity of spares required in the pipeline to meet the FA rate. Repair processing time – The time it takes to induct hardware into repair and place it back on the shelf after repair is a measure of administrative support efficiency. Repairs awaiting parts – This is a measurement of supply support efficiency. It tells what percentage of repairs are held because a component was not immediately available when needed for a repair. Bad from supply – The percentage of LRUs shipped to the field that fail soon after installation into a Sniper ATP measures the quality and effectiveness of the depot repair process. Transportation Shipping times from LM to the end user and back are measured for both CONUS and OCONUS shipments. These times are used to evaluate carriers in order to select the most effective option for each location. Organizational Level Order Time – This is the measurement of the time from when a pod is identified as Non-Mission Capable (NMC) to when an order is placed. This measures the USAF O-Level performance and helps Lockheed Martin identify which units may require additional assistance from Sniper ATP technical support representatives. Repair Time – This measures the amount of time it takes the O-Level maintainers to repair a NMC pod after the ordered LRU is received. This also measures the USAF O-Level performance and helps Lockheed Martin identify which units may require additional assistance from Sniper ATP technical support representatives. 2015 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 10
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