Lockheed-martin

For the former companies, see Lockheed Corporation and Martin Marietta.
Lockheed Martin
Public company
Traded as S&P 500 Component
Industry Aerospace, Defense, Information security
Founded 1995
Headquarters Bethesda, Maryland, USA
Area served Worldwide
Key people Marillyn A. Hewson
(President & CEO)
Robert J. Stevens
(Executive Chairman)

Bruce L. Tanner
(Executive Vice President & CFO)
Ray O. Johnson
(Senior Vice President & CTO)
Products ATC systems
Ballistic missiles
Munitions
Missile defense elements
Transport aircraft
Fighter aircraft
Radar
Satellites
Atlas launch vehicles
Spacecraft
Revenue Increase $ 46.499 billion (FY 2011)[1]
Operating income Decrease $ 3.980 billion (FY 2011)[1]
Profit Increase $ 2.655 billion (FY 2011)[1]
Total assets Increase $ 37.908 billion (FY 2011)[1]
Total equity Decrease $ 1.001 billion (FY 2011)[1]
Employees 116,000 (December 2012)
Website LockheedMartin.com

Lockheed Martin (Bethesda, Maryland, in the Washington Metropolitan Area. Lockheed Martin employs 116,000 people worldwide. Marillyn Hewson is the current president and Chief Executive Officer.

Lockheed Martin is one of the world's largest defense contractors; In 2009, 74% of Lockheed Martin's revenues came from military sales.[2] It received 7.1% of the funds paid out by the Pentagon.[3]

Lockheed Martin operates in five business segments. These comprise Aeronautics, Information Systems & Global Solutions, Missile and Fire Control, Mission Systems and Training, and Space Systems. In 2009 US Government contracts accounted for $38.4 billion (85%), foreign government contracts $5.8 billion (13%), and commercial and other contracts for $900 million (2%).[4] In both 2009 and 2008 the company topped the list of US Federal Contractors.

The company has received the Collier Trophy six times, most recently (in 2001) for being part of developing the X-35/F-35B LiftFan Propulsion System,[5][6][7] and again in 2006 for leading the team that developed the F-22 Raptor fighter jet. Lockheed Martin is currently developing the F-35 Lightning II.

History

1990s

Merger talks between Lockheed Corporation and Martin Marietta began in March 1994, with the companies announcing their $10 billion planned merger on August 30, 1994.[8] The deal was finalized on March 15, 1995 when the two companies' shareholders approved the merger.[9] The segments of the two companies not retained by the new company formed the basis for the present L-3 Communications, a mid-size defense contractor in its own right. Lockheed Martin later spun off the materials company Martin Marietta Materials.

Both companies contributed important products to the new portfolio. Lockheed products included the Trident missile, P-3 Orion, F-16 Fighting Falcon, F-22 Raptor, C-130 Hercules, A-4AR Fightinghawk and the DSCS-3 satellite. Martin Marietta products included Titan rockets, Sandia National Laboratories (management contract acquired in 1993), Space Shuttle External Tank, Viking 1 and Viking 2 landers, the Transfer Orbit Stage (under subcontract to Orbital Sciences Corporation) and various satellite models.

On April 22, 1996, Lockheed Martin completed the acquisition of Loral Corporation's defense electronics and system integration businesses for $9.1 billion, the deal having been announced in January. The remainder of Loral became Loral Space & Communications.[10]

Lockheed Martin abandoned plans for a $8.3 billion merger with Northrop Grumman on July 16, 1998, due to government concerns over the potential strength of the new group; Lockheed/Northrop would have had control of 25% of the Department of Defense's procurement budget.[11]

Lockheed Martin provided NASA with measurements in US Customary force units when metric was expected, resulting in the loss of the Mars Climate Orbiter at a cost of $125 million.[12][13] The cost for spacecraft development was $193.1 million.[14]

2000s


In May 2001, Lockheed Martin sold Lockheed Martin Control Systems to BAE Systems. On November 27, 2000, Lockheed completed the sale of its Aerospace Electronic Systems business to BAE Systems for $1.67 billion, a deal announced in July 2000. This group encompassed Sanders Associates, Fairchild Systems, and Lockheed Martin Space Electronics & Communications.[15][16]

In 2001, Lockheed Martin won the contract to build the F-35 Lightning II; this was the largest fighter aircraft procurement project since the F-16, with an initial order of 3,000 aircraft.

In 2001, Lockheed Martin settled a nine year investigation conducted by NASA's Office of Inspector General with the assistance of the Defense Contract Audit Agency. The company paid the United States government $7.1 million based on allegations that its predecessor, Lockheed Engineering Science Corporation, submitted false lease costs claims to NASA.[17]

On May 12, 2006, The Washington Post reported that when Robert Stevens took control of Lockheed Martin in 2004, he faced the dilemma that within 10 years 100,000 of the about 130,000 Lockheed Martin employees – more than three-quarters – would be retiring.[18]

On August 31, 2006, Lockheed Martin won a $3.9 billion contract from NASA to design and build the CEV capsule, later named Orion for the Ares I rocket in the Constellation Program. In 2009, NASA reduced the capsule crew requirements from the initial six seats to four for transport to the International Space Station.[19]

On August 13, 2008, Lockheed Martin acquired the government business unit of Nantero, Inc., a company that had developed methods and processes for incorporating carbon nanotubes in next-generation electronic devices.[20] In 2009, Lockheed Martin bought Unitech.[21]

2010s

On November 18, 2010, Lockheed Martin announced that it would be closing its Eagan, MN location by 2013 to reduce costs and optimize capacity at their locations nationwide.[22]

In January 2011, Lockheed Martin agreed to pay the US Government $2 million to settle allegations that the company submitted false claims on a U.S. government contract for that amount. The allegations came from a contract with the Naval Oceanographic Office Major Shared Resource Center in Mississippi.[23]

On May 28, 2011 it was reported that a cyber-attack using previously stolen EMC files had broken through to sensitive materials at the contractor.[24] It is unclear if the Lockheed incident is the specific prompt whereby on June 1, 2011, the new United States military strategy, makes explicit that a cyberattack is casus belli for a traditional act of war.[25]

On July 10, 2012, Lockheed Martin announced it was cutting its workforce by 740 workers to reduce costs and remain competitive as necessary for future growth.[26]

On August 2, 2012, the Vice President for Business Development, George Standridge stated that his company has offered 6 more C-130J aircraft to the Indian Air Force, for which discussions are underway with the Indian Government.[27]

On November 27, 2012, Lockheed Martin announced that Marillyn Hewson will become the corporation's chief executive officer on January 1, 2013.[28]

On January 7, 2013 Lockheed Martin Canada announced that it will be acquiring the engine maintenance, repair and overhaul assets from Aveos Fleet Performance in Montreal, Canada.

On July 3, 2013, Lockheed Martin announced that it was partnering with DreamHammer to use the company's software for integrated command and control of its unmanned aerial vehicles.[29]

Lockheed Martin teamed up with Bell Helicopter to propose the V-280 Valor tiltrotor for the Future Vertical Lift (FVL) program.[30]

In September 2013, Lockheed acquired the Scotland-based tech firm, Amor Group, saying the deal would aid its plans to expand internationally and into non-defence markets.[31]

Criticism

In 2013, Lt. Gen. Christopher Bogdan criticized the company's F-35 fighter jet program. The general said, “I want them both to start behaving like they want to be around for 40 years...I want them to take on some of the risk of this program. I want them to invest in cost reductions. I want them to do the things that will build a better relationship. I’m not getting all that love yet.”[32] The criticism comes in the wake of previous criticism from former Defense Secretary Robert Gates regarding the same program.[33]

Organization

Aeronautics



Information Systems and Global Solutions

  • Lockheed Martin IS&GS-Civil
  • Lockheed Martin IS&GS-Defense
  • Lockheed Martin IS&GS-National
    • Lockheed Martin Orincon
    • Lockheed Martin STASYS
  • Lockheed Martin Technology Ventures

Missiles and Fire Control

Mission Systems and Training

Space

Others

Joint ventures

Government contracts

Lockheed Martin is active in many aspects of government contracting. It received $36 billion in government contracts in 2008 alone, more than any company in history. It now does work for more than two dozen government agencies from the Department of Defense and the Department of Energy to the Department of Agriculture and the Environmental Protection Agency. It's involved in surveillance and information processing for the CIA, the FBI, the Internal Revenue Service (IRS), the National Security Agency (NSA), the Pentagon, the Census Bureau and the Postal Service."[3]

In October 2013, Lockheed announced it expected to finalise a $2.2 billion contract with the US Airforce for two advanced military communications satellites.[34]

Corporate governance

Current members of the board of directors of Lockheed Martin are: Edward Aldridge, Nolan Archibald, Marcus Bennett, James O. Ellis, Gwendolyn King, James Loy, Douglas McCorkindale, Eugene Murphy, Joseph Ralston, Frank Savage, Anne Stevens, Robert J. Stevens, James Ukropina and Douglas Yearley.

Lockheed "ranks number one on the 'contractor misconduct' database maintained by the Project on Government Oversight, a Washington-DC-based watchdog group."[3] Since 1995, the company has agreed to pay $577 million to settle fifty-four instances of misconduct.[35]

Lobbying

The company's 2010 lobbying expenditure by the third quarter was $9.9 million (2009 total: $13.7 million).[36][37]

Through its political action committee (PAC), the company provides low levels of financial support to candidates who advocate national defense and relevant business issues.[38] It is "the top contributor to the incoming House Armed Services Committee chairman, Republican Howard P. 'Buck' McKeon of California, giving more than $50,000 in the most recent election cycle. It also topped the list of donors to Sen. Daniel Inouye (D-HI), the chair of the Senate Appropriations Committee before his death in 2012. Inouye described himself as the number #1 earmarks guy in the US Congress."[3]

Lockheed Martin Employees Political Action Committee is one of the 50 largest in the country, according to FEC data. With contributions from 3,000 employees, it donates $500,000 a year to about 260 House and Senate candidates. For the 2004 election cycle, Lockheed's PAC contributed $350,279 to federal candidates, with about 62 percent going to Republicans, according to the Center for Responsive Politics. That compares with $515,000 from General Dynamics' political action committee and $122,850 from BAE Systems North America, the center's data showed.[39]

Maryland Senator Rob Garagiola and tax rebate

In March 2013, Maryland State Senate Majority Leader Rob Garagiola cosponsored a resolution which would give Lockheed Martin tax rebate worth millions of dollars, related to hotel taxes paid at their CLE facilty in Bethesda, MD, even while he was allegedly dating Lockheed Martin's lobbyist. This was after Montgomery County Council refused to pass a similar resolution.[40][self-published source?]

Management theories

Along with the Board, the CEO, COO and CFO lead Lockheed Martin and provide oversight of the corporation[41] These executives oversee Executive Vice Presidents (EVP) of four business areas.[42] The EVPs are responsible for managing major programs.

Lockheed Martin separates its employees based on their assigned program. Each program uses an integrated product development model to organize its employees into four tiers: Tier1 –Program Manager/VP, Tier2-Functional Teams, Tier3-Integrated Product Teams (IPTs), and Tier4-detailed product development. The floor or touch workers are in a particular component assembly team that culminates in the final deliverable product.[43] Lockheed Martin manages and maintains its relationship with these touch workers through its supervisors and unions.[44]

Lockheed Martin tries to manage their employees through its Full Spectrum Leadership and LM21 programs.[45] LM21 program relies on Six Sigma principles, which are techniques to improve efficiency. Senior management constructs leadership councils and assigns managers to facilitate Kaizen events, which target specific processes for improvement. A manager facilitates teams and processes stakeholders and suppliers to attempt to streamline process implementation.[46][47] At Tier1, the program managers are responsible for the execution of the entire program: contract award, design, build delivery and post delivery sustainment. They work with a variety of customers on multiple contracts including end item delivery, design enhancements, support and training.[48]

Tier2 Functional Leads (Finance, Chief Engineer, Quality, Operations, etc.) and Tier3 IPT Leads (Weapon System Development, Weapon System Integration, etc.) report to Tier1. Functional leads ensure appropriate resources are provided to programs. IPT leads are responsible for entire systems or products defined by the contract’s Statement of Work.[48]

At Tier3, management separates employees into different lower level IPTs that are responsible for a subset of the Tier2 requirements. For example, the Tier3 Software Engineering IPT resides under Tier2 Weapon System Development. Tier3 IPTs develop major components under the Tier2 team management. IPT Leads oversee daily performance of the multi-functional IPTs. Engineers reside within the IPTs. Across the integrated product teams, tasks such as quality assurance, subcontracting, manufacturing and design are performed. To control quality, Lockheed Martin trains and builds IPT teams.[48] Lockheed Martin ensures that work is executed correctly through a Technical Performance Measure (TPM) system which emphasizes Lockheed Martin’s Lean and 6 Sigma processes. Lockheed Martin middle management uses commitment mechanisms that parallel high commitment and human relations theory. Also, access to different levels of training allows IPT members to remain committed as outlined in the Human Commitment theory.[49]

Floor employees assemble aircraft by major parts, by Flow-to-takt lean manufacturing implementation process[50] which uses properties from both division of labor and scientific management. By separating tasks based on parts, Lockheed Martin utilizes the division of labor theory,[51] specialization on a specific area creates efficiency.

Double Helix methodology

The Double Helix methodology is a systems development methodology used by Lockheed Martin. It combines experimentation, technology, and a warfighter's concept of operations to create new tactics and weapons.[52]

See also

Aviation portal

References

Further reading

External links

  • Lockheed Martin site
  • FAS, history and key dates
  • Prepar3D(R): Visual flight simulation software development kit for computers
  • "A Security Analyst Wins Big in Court". Time magazine
  • Lockheed Martin page. Center for Media and Democracy
  • "Lockheed Wins Contract to Build NASA's New Spaceship". Washington Post
  • "Jury Slaps Defense Giant for Neglecting National Security". ABC News
  • "NASA: Mars Surveyor Was Doomed By Humans". CBS News
  • "Lockheed Fined Over Secrets Breach". BBC News
  • "Coast Guard Failed to Properly Oversee Contracts, Officials Say". Washington Post
  • Ceremonial event planned for final F-22 Raptor

This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and USA.gov, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for USA.gov and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
 
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
 
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.