HIMARS/M270A1 Life Cycle Launcher Support (LCLS) Marian Metivier After Market Enterprise Program Manager

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1 I. Program Overview Organization Name/Program Name: Program Leader Name/ Position/Contact information , Phone Program Category Program Background: What is this program all about? (No more than one page). Describe: 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 HIMARS/M270A1 Life Cycle Launcher Support (LCLS) Marian Metivier After Market Enterprise Program Manager Sub-System Sustainment The HIMARS/M270A1 LCLS Program is a US Army Performance Based Logistics (PBL) contract that entrusts LMMFC with the full responsibilities for the performance based specification components of the HIMARS Fire Control System (FCS) and Launcher Module (LM) and the M270A1 FCS for the 620 fielded systems. Overarching Need: The Life Cycle Launcher Support (LCLS) program was established in order to provide to the US Army and USMC, technical assistance, maintenance, training and supply support for their M270A1 and HIMARS weapon systems. History: The US Army selected HIMARS sustainment to be a pilot PBL program. Lockheed Martin was awarded a four year PBL contract in 2004 supporting 247 fielded US Army HIMARS and M270A1 launchers and 14 Field Service Representatives in 10 different locations around the world, including 2 contingency operations. A followon contract was awarded in 2008 that added USMC HIMARS support, and increased the number of fielded systems that were supported to 620 HIMARS and M270A1 launchers with 26 Field Service Representatives. The outstanding performance of the HIMARS/M270A1 LCLS Program was recognized by the United States Secretary of Defense as the 2006 and 2009 SECDEF Performance-Based Logistics (PBL) Award Selection System Level winner. Product: Operational Availability for the HIMARS and M270A1 Launchers. Scope: Provide Supply Chain management (spares and repairs) for HIMARS and M270A1 components. Provide onsite technical support to the war fighter. The LCLS is responsible for ensuring parts availability for 1

2 I. VALUE CREATION = 20 POINTS ~1,600 field replaceable line items for the HIMARS and M270A1 launchers with two quantifiable performance metrics tied to performance through incentive fees. The LCLS program, through a very detailed database, maintains near-real time insight into the operational tempo, failure and repair history, failure trends, and hardware configuration of fielded launchers. This data is utilized by the LCLS program to identify and prioritize corrective actions, reduce maintenance actions demands, and generally enhance support to the War-fighter. Expected Deliverables: Parts availability and onsite technical expertise to ensure operational readiness Current Status: The current LCLS contract expires in December. A proposal is in work to continue to provide LCLS services to the warfighter thru December Value: What is the 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) Excellence and Uniqueness: What makes this program unique? Why should this program be awarded the Program Excellence Award? LCLS is a program that was developed to provide Performance Based Logistics for fielded HIMARS and M270A1 launchers. The value that this program has created for the customer and the warfighter has exceeded expectations. For starters, the HIMARS system is performing five times the system reliability requirement. As a result, less repairs and spares are required to support fielded operations, reducing overall cost to the customer and increasing operational availability. Even with the increased in reliability, LCLS continued to investigate trends and identify areas for reliability improvements. The reliability improvements that have been incorporated have led to sustaining availability levels where fewer launchers can perform more missions resulting in a force multiplier. These reliability improvements were done as a result of data collection. The value in collecting data and analyzing the data far exceeds the actual cost of the data collection. LCLS Field Service Representatives (FSRs) embedded with both the US Army and USMC units provide value to the war fighter by having onsite technical expertise for the troubleshooting and repair capability. The FSRs are equipped with forward repair capabilities that lower cost by performing on site depot repairs that in turn, reduce the 2

3 spares footprint necessary to support fleet operations. In addition to providing onsite technical expertise, the FSRs are used in support of Government Modification programs, RESET and VOLEP program providing value beyond LCLS. The HIMARS Life Cycle Launcher Support (LCLS) Performance Based Logistics (PBL) Field Service Representative (FSR) support strategy has provided uncompromising peacetime and wartime contingency maintenance and supply support. This support concept has yielded millions in cost savings directly attributed to the FSR efforts while achieving and sustaining an unparalleled 99% operational availability on supported equipment since the program s inception in The LCLS PBL program has provided exceptional field and sustainment service support to the present day level of 620 fielded, training and test M270A1 and HIMARS launchers since These systems have averaged over 99% Fully Mission Capable (FMC) status for supported equipment since program inception, and according to COL David Rice, Project Manager for Precision Fires Rocket and Missiles Systems, have never missed a combat mission, and are performing at and above Army standards and soldier expectations. The program has attained over 98% of available award fees for meeting metrics criteria on the contract, and has twice (2006 and 2009) been selected as Secretary of Defense System Level PBL of the Year program. These achievements could not have been realized without the dedicated FSR professionals providing exceptional worldwide maintenance and supply support. Their efforts have contributed immeasurably to the Warfighters ability to successfully accomplish their mission so that when called upon, the weapon systems have consistently provided an accurate and timely response. In addition to the systems high reliability and operational readiness rate, the FSR has also provided remarkable cost savings to the United States Government. The examination of the test and repair actions performed by the FSR has yielded millions in cost avoidance since program inception. The FSR maintenance and supply expertise has been instrumental in decreasing the repair 3

4 time to less than one day in most cases, and allows the shipment of lightweight circuit cards to/from repair depots rather than the larger and much heavier LRUs. Technical assistance and on the job training provided to the unit personnel for diagnosing launcher faults has been extremely valuable to units that have utilized the systems operators and maintainers on assignments outside their primary Military Occupational Specialty (MOS) during the current conflicts. The FSR is also the first and last link in the supply chain process that maintains parts flow thereby ensuring that the right part is available in the right place at the right time. This concept has also allowed the LCLS Program to purchase significantly fewer pipeline LRUs, resulting in remarkable life cycle cost savings. III. ORGANIZATIONAL PROCESSES/BEST PRACTICES: (HOW DO YOU DO THINGS) = 30 POINTS Strategic: Opportunity Management - Describe how your program has identified its operational and business opportunity, and manages this opportunity throughout the program s life cycle. Strategic: Strategic Supply Chain Integration and Cost Effectiveness Management: - Describe how your program is integrating its supply chain to assure visibility and adapting longterm cost effectiveness up and down the supply chain. Supply Chain Management has transitioned from the role of tactical observer to a strategic, engaged organization. Striving for world-class performance, we set our goals at 100% quality (product reliability) and 100% on-time delivery. We dropped poor performing suppliers, increased supplier focus on affordability, and measured, analyzed and improved supplier performance via an approach focused on performance data, lessons learned and continuous improvement. The M270A1/HIMARS FSR provides dedicated on-site supply support directly to the operator and/or the unit s Prescribed Load List (PLL) supply clerk. The capability of the FSR to provide this direct exchange service has enabled the operators to rapidly return the system to a FMC state. Additionally, items which cannot be repaired by the FSR are shipped directly to the appropriate facility for repair to include the vendor. As a result, repairs have an average turnaround time of 27 days which enables the program to minimize the number of warehoused spares. Furthermore, the FSR in Theater(s) provide a means to rapidly and without loss, receive and ship spares in and out of the Area of Operation (AO) contributing immeasurably to the units Mission Success and systems high operational readiness posture. LCLS has leveraged a central logistics supply system to integrate supply chain management through all levels of support. The program and its customers have complete visibility into supply stock, status, and locations for all 4

5 assets in the field, depot, and suppliers. This seamless integration has fostered a supply chain environment that is not only agile but cost effective. Total visibility enables expedient deployment of assets as well as proper management The LCLS Supply Chain Management incorporates a robust process that takes advantage of proper leverage and synergy across different programs in order to obtain best value for the customer. A team approach and an emphasis on continuously improving supplier relations enhances communication and promotes sharing of best practices to drive excellence in quality, cost, productivity and schedule across the supply chain. Operational: Risk / Opportunity Management Describe the processes used to identify both risks and opportunity and to assure potential for both is addressed effectively Please indicate any forwardleaning processes to support. Team Leadership: Team Culture and Motivation Describe how you created your team spirit and culture, and accomplished entire team integration and individual team member motivation. Given the economic environment and changes in the global marketplace, how did you assure your team changed swiftly and with agility? We have developed, implemented, evaluated and continued to refine our tool set, while ensuring a direct alignment with our process results and supply chain performance. One of the biggest risks that LCLS has is not having the right amount of spares on the shelf to support field operation. Use of Weibull Analysis has been used to reduce availability risks in the future by forecasting future wear out patterns in the future. This allows plans for material support and manpower to be made several years in advance of any problems. LCLS culture is a hands-on endeavor that encourages the active participation of every member of the program. The foundation of our culture is our focus on performance and results. We foster an organizational culture that is characterized by open communications, high-performance work and an engaged workforce with strong communications about our Ethics, Vision, Mission, Values and Fundamental Business Principle. We also require leaders and managers to build effective relationships with employees that energize the team and deliver results. We align Strategic Objectives, Action Plans and metrics throughout the organization and include these in performance evaluations so that individual employees and teams know what is expected of them. Because we review metrics systematically and are transparent with our results, employees can see their progress throughout the year. Individuals and teams are 5

6 recognized and rewarded on an immediate basis, as well as weekly, monthly, quarterly and annually to further drive engagement. Team Leadership: Lessons Learned and Knowledge Management Describe how you collect lessons learned and best practices, and how they are shared with your team and company to improve performance. Also how are you capturing expertise and knowledge to assure availability over the life of the program? Our team members understand that when the team accomplishes a challenge, we celebrate, but tomorrow this is the new standard and we must continue to improve this standard. LCLS has established an internal SharePoint website that all team members have access to. The SharePoint is used as a repository for all of our programs lessons learned and best practices. When a team member has an experience that others could learn from, it is communicated via a telecom that occurs weekly amongst all of our Field Service Representatives and then documented and posted on the SharePoint for future use. By establishing weekly telecoms, the FSRs can share ideas experiences and hardships with one another and work together to solve issues. In addition to the program specific activities, Lockheed Martin has a robust Knowledge Management Process available across the enterprise that enables employees and the business to benefit through shared experiences and knowledge in the areas of professional, technical and leadership development. In the last five years, 7,009 mentoring relationships have been established. Lockheed Martin also has established networking opportunities amongst similar programs across the corporation. It is during these meetings, where the different programs share their experiences and provide lessons learned. This is extremely crucial to new program starts. Externally, LCLS and our customer have developed a special trend identification form that is used to notify the customer of trends/lessons learned that impact future availability and spares cost. The form is submitted to the customer and a decision is then made if the problem is fixed by design change or modification to training. Funding is then implemented for design changes and the affected users are notified of additional training requirements. Field Service Representatives then assist customer to help train both operator and maintenance users. We align and integrate our Learning and Development 6

7 Team Leadership: Leadership Development How do you develop team s skills and build future leaders Best (& Next) Practices: Identify your program s specific Best Practices that you believe are unique, and could be shared with others and become industry s Next Practices. System with our Strategic Plan, Core Competencies, Strategic Challenges and short- and long-term Action Plans. We analyze the capability needs of the program and identify the best internal and external learning and development resources available. We analyze and evaluate our ability to address current and future Core Competencies and determine how to develop talent to support them. We evaluate the ability of our talent to meet our Strategic Challenges and achieve our Action Plans, and we recommend learning and development opportunities to bridge any gaps. We train leaders, employees and identified suppliers in performance improvement and innovation methods and techniques. These include training for Master Black Belts, Black Belts and Green Belts in Lean/Six Sigma (LSS) and individual and team training in LSS, CMMI and ISO management systems. We also support technical learning and development. LCLS best practices include establishing effective communication. Communication has been key to the success of the LCLS program. Communication with our FSRs, the warfighter, our Project Office, our suppliers, and our internal staff is vital. Additional best practices include; Documented SOPs that are controlled and updated on a regular basis; having a team that strives for continuous cost savings by implementing process changes that reduce and/or avoid costs, increase asset availability and utilization, and reduce spare parts inventory; establishing the right partnerships to execute the program; establishing a diversified team; having an integrated data base that is used by all team members, to include management, suppliers, FSRs, depot, and customer. In addition, Lockheed Martin has extended our PMT approach to selected suppliers through the SPMT program. This program has improved the efforts of critical suppliers who were not performing to expectations. The program enhances LM and supplier communication and promotes the sharing of best practices to drive excellence in quality, cost, productivity and schedule. SPMTs are now being extended to well-performing suppliers who want to continue to improve. 7

8 IV. ADAPTING TO COMPLEXITY: (HOW DO YOU DEAL WITH YOUR PROGRAM S UNIQUE COMPLEXITIES) = 20 POINTS Identify the level of your System Complexity using the definitions below. Then explain how you are dealing with this level of complexity 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 Other Complexities & Uncertainties - Describe other complexities and unknown factors faced by this program and how you addressed them. The HIMARS Launcher consists of three sub systems; chassis, launcher module and fire control system. LCLS is responsible for maintaining and repairing all the components in the launcher module and fire control system. Our approach to successfully executing our program is to build our team with subject matter experts and work closely with engineering to ensure that we have a highly technical team of Field Service Representatives that under the theory of operation of each sub system and how they are integrated together. The pace and urgency of our team s efforts vary with the task at hand. Our priority is the warfighter and we will do whatever is necessary to ensure that the warfighter has the parts and technical expertise that it needs to execute the mission. Our team provides support 24/7, but we have learned from 9 years of execution to work smarter. If we know a critical event is going to occur, then we preposition additional assets in case of field failures. We try to plan ahead and prevent crisis from occurring. The LCLS contract has been structured to allow for adaptability in this ever changing and complex environment. While the LCLS contract is awarded on an annual basis, OMA funding is not always readily available; therefore, the government has the flexibility to fund contract actions on a monthly basis. The contract is also structured with unit prices that can be exercised for the amount of support that is required. For example; LCLS has established variable system month prices for HIMARS launchers depending on the anticipated usage, active use and limited use. If HIMARS launchers go into storage while the unit deploys without their equipment, the customer s system month is reduced from an active use status to limited use status. The most complex activity that occurs under LCLS is supporting our deployed launchers and FSRs in theaters of operation. Each deployment varies from the previous one, new locations, new units, etc. For each new deployment that occurs, LCLS assesses the impact and adjusts as necessary based on the location and deployment scenario. LCLS works closely with the unit and the customer prior to the deployment to ensure that the necessary spares and equipment are available. Once on site, the FSR works to establish the lines of communications and resupply capability. LCLS has developed an Emergency Action Plan that outlines our requirements in support of deployments, to include deploying a 8

9 FSR within 96 hours of notification. Since deployments of our equipment and FSRs varies greatly depending on the need of the US Army and USMC, a unit cost per month for the FSR and for the launcher are funded on an as needed basis for identified period of performance. V. METRICS (HOW DO YOU MEASURE PROGRAM S PERFORMANCE) = 30 POINTS (Note: We are not looking for $ results, but the relative percentage achieved. In particular indicate what specific metrics and data you are using that drive the program beyond standard measures of schedule, budget, and performance, and which have contributed to your program s focus and its success.) Customer - How do you measure the impact of your program on your customer and your customer s satisfaction? Include a description of your metrics, as well as numerical evidence. The most important measurement of the impact of our program is the operational readiness rate of 99% that we maintain on the components that we support. Our number one goal is to have the system available to support the warfighters mission. Our customer s satisfaction is of the utmost importance to us. LCLS is a service contract that demands excellence from the all the team members supporting the program. LCLS is constantly gathering feedback from the user and the project office as to the performance of our program. That feedback can be in the form of a CPAR that is done by the government on an annual basis, or by surveys requested of the unit or during meetings that are held with the user. The performance of the LCLS program is measured against the metrics that have been established, both contractual and internally. The contractual metrics, Customer Wait Time and Turn-around-Time, ensure that the parts are available when needed in order to ensure mission success for the war fighter. The LCLS program has exceeded all contractual metrics for the past three years, resulting in 100% success rate against the contract requirement. The internal metrics are used to assist in the management of the program with feedback on areas where the program is performing well and areas that require improvement. Examples of our internal metrics include: 99.8% inventory accuracy in depot facility. 100% supply requirements met by having all required inventory in stock. 100% on time delivery of contract order. Customer satisfaction is also indicated by continuing new 9

10 Performance - How do you measure your program s performance in traditional terms such as schedule, budget, requirements, and business results? Preparing the Future - How do you measure and assess the long-term contribution of your program to the corporation/organization? Team - How do you measure and assess the impact of your program on your team development and employee satisfaction? Unique Metrics - Describe any unique metrics you are using to measure your program s progress and how do you focus it for outstanding success. contract awards. The program is currently finishing its ninth year of executing LCLS and is getting prepared to enter into another five year contract with the government. LCLS maintains a schedule for delivery of material and repair turnaround times which is reviewed during a regularly scheduled meeting. At the beginning of the program, budgets are established and individual performing that task are responsible to ensuring that they remain within the budget that was issued to them. There are weekly and monthly reports that are generated to assist them in staying on budget and identifying issues early. Our measurement of the long term contribution to the corporation for the LCLS program is maintaining the business and continuing to exceed the performance metrics set forth in the contract. Our long term contribution to the customer is measured by continuous improvement in the service we provide and implementing cost savings initiatives that keep the service affordable in challenging times. There are several tools that are used by Lockheed Martin (LM) to measure and assess team development and employee satisfaction. Lockheed Martin conducts an employee survey on an annual basis and supervisors get the results of their employee s inputs. The supervisors review the results and develop action plans for areas that require improvement. LM has a performance management system which documents employee s commitments for the year and measures their progress towards meeting their commitments. These commitments, progress and results are discussed with the employees during one on one meeting that occur with their managers every 6 months. In addition, every employee creates a career development plans that is discussed during their mid-year and annual reviews. LCLS also uses survey tools such as survey monkey to obtain feedback from employees on their satisfaction, ways to improve program performance and suggested changes. Reliability uses Total Mean Time Between Unscheduled Maintenance (MTBUM) as our internal goal. MTBUM counts every failure and gives us our worst case Reliability metric. Planning based on MTBUM reduces risk by counting every failure and uses the data to support long term spares support. 10