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Lockheed Martin--aligning Logistics career development to their corporate business strategy.

In Shakespeare's Julius Caesar Julius Caesar: see Caesar, Julius. , Brutus remarks insightfully to Cassius, "There is a tide in the affairs of men. Which, taken at the flood Taken at the Flood is a work of detective fiction by Agatha Christie and first published in the US by Dodd, Mead and Company in 1948 under the title of There is a Tide... , leads on to fortune." They are, of course, discussing battle strategy, but this famous phrase is equally applicable in the business world.

Lockheed Martin For the former company, see .

Lockheed Martin (NYSE: LMT) is a leading multinational aerospace manufacturer and advanced technology company formed in 1995 by the merger of Lockheed Corporation with Martin Marietta.
 Corporation, long a leader in the design, development, and production of sophisticated defense systems, is rapidly recognizing, along with many other Aerospace and Defense (A&D) companies, that the "tide" of defense business is undergoing a paradigm shift A dramatic change in methodology or practice. It often refers to a major change in thinking and planning, which ultimately changes the way projects are implemented. For example, accessing applications and data from the Web instead of from local servers is a paradigm shift. See paradigm. , unveiling new and growing opportunities in the area of after market support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services . The convergence of many factors, such as the end of the cold war technology race, the changing global threat environment, the decline in procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases.  of new systems, and the corresponding rising cost of supporting aging systems, has prompted a new era and approach to defense system sustainment--those activities that assure operationally ready 1. A unit, ship, or weapon system capable of performing the missions or functions for which organized or designed. Incorporates both equipment readiness and personnel readiness.
2. Personnel available and qualified to perform assigned missions or functions.
 systems for today's national security environment.

PERFORMANCE BASED LOGISTICS Performance Based Logistics is a strategy for system support. Instead of goods and services a supplier is payed for a guaranteed level of performance and system capability. The supplier often has to guaranty the performance at lesser costs but has more control over all logistics elements.  (PBL PBL Problem-Based Learning
PBL Phi Beta Lambda
PBL Performance Based Logistics
PBL Planetary Boundary Layer
PBL Publishing and Broadcasting Limited (Australia)
PBL Philippine Basketball League
PBL Peripheral Blood Leukocyte

At the forefront of this paradigm shift is a fundamental restructuring of the product support process to an approach, entitled en·ti·tle  
tr.v. en·ti·tled, en·ti·tling, en·ti·tles
1. To give a name or title to.

2. To furnish with a right or claim to something:
 PBL, in which the DOD (1) (Dial On Demand) A feature that allows a device to automatically dial a telephone number. For example, an ISDN router with dial on demand will automatically dial up the ISP when it senses IP traffic destined for the Internet.  is transitioning from accomplishing support through the iterative it·er·a·tive  
1. Characterized by or involving repetition, recurrence, reiteration, or repetitiousness.

2. Grammar Frequentative.

Noun 1.
, transactional acquisition of the basic elements of support (eg, spares and repairs) to a more commercial model in which they enter into agreements with product support providers to deliver performance and support outcomes, such as system availability, and leave the determination of "how" to achieve those outcomes to a Product Support Integrator (PSI).

The success of PBL, based on hundreds of programs over the last 9-plus years, has been exceptional. In implementing PBL, DOD has often turned to the defense industry to assume the PSI role. As a consequence, A&D companies are suddenly discovering opportunities for business relationships that may span periods far longer than their core design and development business--as long as thirty or forty years, based on the current and planned useful life of most DOD systems.

Lockheed Martin is aggressively expanding their presence in this business sector. To better posture themselves for this growing market, they have instituted a comprehensive Logistics work force development effort aimed at equipping their logistics personnel with the requisite skills, knowledge, and abilities to successfully accomplish this business strategy.


At the core of Lockheed's professional development plan is the establishment in 2006 of the Logistics and Sustainment Institute, or LSI LSI: see integrated circuit.

(Large Scale Integration) Between 3,000 and 100,000 transistors on a chip. See SSI, MSI, VLSI and ULSI.
. The goal of the LSI is to establish a multi-dimensional framework that offers their 13,000 Logistics personnel (and 7000 other career-field personnel who frequently perform logistics-related activities) a career roadmap and structure to facilitate opportunities for career planning, education and training, professional certification Professional certification, trade certification, or professional designation, often called simply certification or qualification, is a designation earned by a person to assure that he/she is qualified to perform a job or task. , and a collaborative learning Collaborative learning is an umbrella term for a variety of approaches in education that involve joint intellectual effort by students or students and teachers. Collaborative learning refers to methodologies and environments in which learners engage in a common task in which each  network.

When fully implemented, the career roadmap will provide clear guidance regarding the required and recommended education, training, credentials CREDENTIALS, international law. The instruments which authorize and establish a public minister in his character with the state or prince to whom they are addressed. If the state or prince receive the minister, he can be received only in the quality attributed to him in his credentials. , and experience requirements necessary at progressive levels within the Logistics and Sustainment profession. The benefits will be two-fold; employees will benefit from having an established career development path, and corporate management will gain visibility of the level of experience and training, across the logistics work force.

Patrice Jackson, the primary force behind the ongoing development of the LSI, emphasizes the value of the multi-dimensional approach. "In a complex discipline like logistics we need to be innovative with our career development program. We can't limit our focus to a traditional path from college new hire through vice-president; we need to provide specific course curriculum and qualifications at progressive levels across a broad spectrum of career paths. This approach not only provides our managers insight into the levels of workforce expertise, but also provides our employees a clear understanding of their professional growth opportunities."


In addition to training, we've added a virtual Collaborative Learning Network (CLN CLN Clean
CLN Community Learning Network
CLN Colon
CLN Celsion Corporation
CLN Class Library for Numbers
CLN Credit Linked Note
CLN Comitato di Liberazione Nazionale (Committee of National Liberation)
CLN Corn Lethal Necrosis
) dimension, which allows our logistics and sustainment professionals the opportunity to collaborate by sharing knowledge to increase their performance and in turn deliver better solutions to our customers."


One of the critical foundation pillars in the framework is formal training. To ensure the ready availability of high quality internal training, Lockheed Martin established the Center for Performance Excellence (CPE (Customer Premises Equipment) Communications equipment that resides on the customer's premises.

CPE - Customer Premises Equipment
), headquartered in Rockville Maryland, as a focal point focal point
See focus.
 for internal professional development education. The CPE provides training across several functional disciplines, including Program Management, Engineering, Software, Business Management, Quality Assurance, and, recently added, Logistics.

Doug Rowell, who manages the CPE, stresses the critical role of training in the overall corporate framework and business strategy. "The Center for Performance Excellence provides training and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products.  across the corporation. CPE training integrates the program performance curriculum, mentioned above, to ensure that Lockheed Martin professionals understand the full spectrum of capabilities required of our leaders and individual contributors. The CPE is focused on flawless execution because our primary goal is to support programs in the pursuit of perfect program performance."


Any of numerous gradual, long-term responses of an individual organism to changes in its environment. The responses are more or less habitual and reversible should conditions revert to an earlier state.

Logistics training within the overall company strategy is equal parts knowledge acquisition and cultural acclimatization. Lockheed Martin has exceptionally qualified logisticians--lack of logistics skills is not the imperative. However, application of those skills is significantly different in a sustainment environment versus a production environment. Planning a supply chain strategy for a manufacturing process primarily involving the procurement of new components that feed the production line is markedly dissimilar from a sustainment setting where a significant percent of spare part components result from repair and overhaul processes rather than new procurements.

The unique nature of the PBL business relationship, where industry providers take on significant responsibility for managing most aspects of support over the life cycle, brings new risk into the equation, such as obsolescence ob·so·les·cent  
1. Being in the process of passing out of use or usefulness; becoming obsolete.

2. Biology Gradually disappearing; imperfectly or only slightly developed.
 management and mitigation of aging and wear out events. Consequently there is an enhanced role for leveraging industry technical engineering expertise in planning and executing PBL sustainment strategies. This means that Lockheed Martin's logistics training has to ensure a blend of traditional logistics with a significant level of technical content. Clearly, the business value proposition in taking on PBL work requires addressing not only the objective system supported (eg, an aircraft) but the enabling support systems as well (supply maintenance, transportation, configuration management) over the life cycle.


With a primary focus on capturing Performance-Based Logistics business, the CPE (in coordination with the LSI) is implementing a Logistics curriculum fully aligned with corporate business processes. To date three courses have been developed, with a fourth course planned for delivery in the fourth quarter of 2008. Each of the courses, and their relationship to enabling the corporate business strategy, are summarized below.

* Introduction to PBL: This 2-day course provides a solid foundation in the concepts, application options, cost and technical trade space analysis, designing, and implementing of PBL strategies.

* Design for Sustainment: This 3-day course emphasizes the application of engineering and related technical methodologies to optimize the design of systems for supportability, not only at initial fielding but throughout the service life. Advances in sensor-based technologies are facilitating the development of "autonomic autonomic /au·to·nom·ic/ (aw?to-nom´ik) not subject to voluntary control. See under system.

1. Functionally independent; not under voluntary control.
" systems on board the objective system that enable continual health monitoring and management for improved supportability, a key outcome requirement in PBL support.

* Win PBL: This 4-day course puts students through an intense week long "war game" scenario in which teams compete to "capture" (build a winning proposal for) PBL business. PBL contracts, as already mentioned, are much more than routine sales of transactional goods. They are complex, evolving sustainment plans tailored to the operational role and environment of the system to be supported--hence the need to craft a viable proposal that delivers the specified outcomes at best value to the customer while providing business value to the corporation.

* Execute PBL: This 4-day course (in development) completes the PBL "cycle" of training by putting students through a discrete set of system scenarios in a war game environment to design, develop, and present a feasible PBL implementation and execution strategy that will meet customer requirements while maintaining flexibility to adapt to evolving system, operational, and financial factors throughout the system life.

In summary, students completing this cycle of courses have gained valuable training ranging from a fundamental understanding of PBL to leveraging corporate technical expertise for supportability to capturing PBL business to successfully executing PBL strategies throughout the life cycle.

The competition for PBL business and, in the broader sense, after market support services, is intense and will remain so for the foreseeable future. But with a comprehensive Logistics career development plan and corresponding training aligned with their corporate business strategy, Lockheed Martin looks well postured to capture a significant share of this business while providing excellent value and service to their customers.


* Learn the role of Performance Based Logistics in DOD's transition from iterative, transactional acquisition to commercial models delivering performance.

* Gain understanding of the importance of professional development to insure expertise for delivering PBL.

* Understand the role of knowledge acquisition and cultural acclimatization in logistics training.


* Performance Based Logistics - buying Performance, not transactional goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. . PBL delineates outcome performance goals of weapon systems, ensures that responsibilities are assigned, provides incentives for attaining these goals, and facilitates the overall life-cycle management of system reliability, supportability, and total ownership costs. It is an integrated acquisition and logistics process for buying weapon system capability. (Defense Acquisition University)

* Cultural acclimatization - "Incorporating corporate culture, made up of attitudes, experiences, beliefs, and values of an organization ... "the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders Stakeholders

All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government.
 outside the organization. (Kotter, John. 1992 Corporate Culture and Performance, Free Press)

* Sustainment--"the provision of personnel, logistic lo·gis·tic   also lo·gis·ti·cal
1. Of or relating to symbolic logic.

2. Of or relating to logistics.

[Medieval Latin logisticus, of calculation
, and other support required to maintain and prolong pro·long  
tr.v. pro·longed, pro·long·ing, pro·longs
1. To lengthen in duration; protract.

2. To lengthen in extent.
 operations or combat until successful accomplishment or revision of the mission or of the national objective." (Joint Publication 1-02, DOD [Department of Defense] Dictionary of Military and Associated Terms.

Please contact Jerry at

or 301-721-5711

Jerry Cothran

Senior manager, Logistics Engineering, Center for performance Excellence Lockheed Martin Corporation
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Author:Cothran, Jerry
Publication:Defense Transportation Journal
Article Type:Company overview
Date:Jun 1, 2008
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