Lockheed Martin Corporation · NYSE:LMT
Lockheed Martin — Technical Presentation (2020)
29 slides from Lockheed Martin's technical presentation, May 26, 2020
Slide 1: Counterfeit Prevention: Past, Present and Future
COUNTERFEIT PREVENTION PAST, PRESENT AND FUTURE Counterfeit Parts - LM Supplier Training Excellence Program (STEP) Bob Bodemuller Principle Engineer, Supply Chain Quality
Slide 2: The Problem
THE PROBLEM Answer: We Do… Counterfeit Prevention – Past, Present and Future PIRA DAL202004007
Slide 3: Headlines
HEADLINES Counterfeit Prevention – Past, Present and Future PIRA DAL202004007
Slide 4: Sources of Counterfeit Electronic Parts
SOURCES OF COUNTERFEIT ELECTRONIC PARTS • Evidence of tampering present • Inconsistent surface texture (e.g. color discrepancy between the top, bottom and/or side of the part) • Visible secondary coating/blacktopping cascading over the side of the part (e.g. overspray, overflow) Counterfeit Preventi
Slide 5: Can You Tell the Difference?
CAN YOU TELL THE DIFFERENCE? Counterfeit Prevention – Past, Present and Future PIRA DAL202004007
Slide 6: Fake Food?
FAKE FOOD? • Lobster - Inside Edition ran DNA tests on lobster dishes from 28 restaurants across the country. Thirty-five percent of the samples contained cheaper seafood (whiting and langoustine). • Kobe beef - Only eight restaurants in the entire US serve real Kobe beef. • Red snapper - According
Slide 7: Case Study – Kobe Steel – August 2017
CASE STUDY – KOBE STEEL – AUGUST 2017 Counterfeit Prevention – Past, Present and Future PIRA DAL202004007
Slide 8: Case Study - TI Parts from Amazon – What I Worry About
CASE STUDY - TI PARTS FROM AMAZON – WHAT I WORRY ABOUT From the Arrow Electronics Website 12-10-18 Minimum order is 200 parts Counterfeit Prevention – Past, Present and Future PIRA DAL202004007
Slide 9: Case Study - TI Parts from Amazon – What I Worry About
CASE STUDY - TI PARTS FROM AMAZON – WHAT I WORRY ABOUT From the Amazon Website 12-10-18 Counterfeit Prevention – Past, Present and Future PIRA DAL202004007
Slide 10: Who Founded DataAlchemy?
WHO FOUNDED DATAALCHEMY? Counterfeit Prevention – Past, Present and Future PIRA DAL202004007
Slide 11: 2018 Customs and Border Patrol IP Seizures
2018 Customs and Border Patrol IP Seizures MSRP Number of Seizures Percent Commodity Seizures of Total Wearing Apparel/Accessories 6,098 18% Footwear 4,728 14% Watches/Jewelry 4,291 13% Handbags/Wallets 3,593 11% Consumer Electronics 3,388 10% Consumer Products 2,816 8% Pharmaceuticals/Personal Care
Slide 12: What's the Point?
WHAT’S THE POINT? “We” are the ones who approve the supplier base and assist in making purchasing decisions! RISKS • Economic Pressures • Cost • Schedule • Minimum buys • eCommerce/P-cards • Sources of parts • Counterfeiting is profitable and growing/more profitable than drugs/low risk • Organiz
Slide 13: Past and Present
PAST AND PRESENT WHERE HAVE WE BEEN AND WHERE ARE WE GOING Counterfeit Prevention – Past, Present and Future PIRA DAL202004007
Slide 14: Legislative Actions
LEGISLATIVE ACTIONS • Section 818 of the 2012 NDAA • Congressional law inserted into the National Defense Authorization Act Dec 2012 • Modified in each new NDAA legislation • FAR 2012-032 – Higher Level Quality Contract Requirements McCain/Leven Hearings 2011 • Released November 2014 • DFARS 252.246
Slide 15: DFARS 252.246-7007 Criteria
DFARS 252.246-7007 CRITERIA System Criteria 1. Training 2. Inspection and test 3. Processes to abolish proliferation 4. Traceability DFARS 7008 Criteria 5. Procurement controls 6. Reporting and quarantining 7. Identification and evaluation of suspect counterfeit 8. Systems to detect and avoid (e.g.
Slide 16: DFARS 252.246-7008 Tiered Approach for Sourcing
DFARS 252.246-7008 TIERED APPROACH FOR SOURCING • Category 1: Electronic parts that are in production or currently available in stock. • Category 2: Electronic parts that are not in production and not currently available in stock from a category 1 supplier. Production • Category 3: • Sources other t
Slide 17: DFARS 252.246-7008 - Sources
DFARS 252.246-7008 - SOURCES • Category 1: The contractor shall obtain such parts from • the original manufacturer Source Selection • their authorized suppliers • or from suppliers that obtain such parts exclusively from the original manufacturers of the parts or their authorized dealers. • Category
Slide 18: Commercial Parts
COMMERCIAL PARTS The Contractor shall include the substance of this clause, including this paragraph (e), in subcontracts, including subcontracts for commercial items that are for electronic parts or assemblies containing electronic parts, unless the subcontractor is the original manufacturer. 246.8
Slide 19: How Has MFC Mitigated Counterfeit Risks?
How Has MFC Mitigated Counterfeit Risks? Counterfeit Prevention – Past, Present and Future PIRA DAL202004007
Slide 20: Industry Compliance Architecture
INDUSTRY COMPLIANCE ARCHITECTURE A standards based approach for DFARS compliance Tier 0 – Aerospace & Defense Supply Chain QMS Verification Certification Regulatory ISO9001 AS9100 AS9100 Certification Schema SCMH (QMS) DFARS 252.246-11 AS9100 (QMS) (QMS A&D) ICOP (AB / CB) AS9104 Recognized FAA 14 C
Slide 21: SAE Counterfeit Prevention Standards
SAE COUNTERFEIT PREVENTION STANDARDS • G-19 • G-19A Testing AS6171 April 2018 • G-19AD Authorized Distribution AS6496 Aug 2014 • G-19C Compliance Various Jan 2014 • G-19CI OCM, System Integrators, etc. AS5553 Sept. 2016 • G-19D Independent Distribution AS6081 Nov 2012 • G-19T Definitions AIR6273 Jul
Slide 22: Lockheed Martin Coordinated Approach
LOCKHEED MARTIN COORDINATED APPROACH Space • CRX-126, Counterfeit Prevention Procedure • CorpDocs - counterfeit prevention flow down Aero • Supplier Wire FAQ’s • Sustainability metrics for the annual LM sustainability report • CAAP program will be highlighted in the 2018 report Corp • Corporate Coun
Slide 23: Terms & Conditions – CorpDoc 3
TERMS & CONDITIONS – CORPDOC 3 7. COUNTERFEIT WORK (a) The following definitions apply to this clause: "Counterfeit Work" means Work that is or contains unlawful or unauthorized reproductions, substitutions, or alterations that have been knowingly mismarked, misidentified, or otherwise misrepresente
Slide 24: Terms & Conditions – CorpDoc 3A
TERMS & CONDITIONS – CORPDOC 3A DFARS 252.246-7007 CONTRACTOR COUNTERFEIT ELECTRONIC PART DETECTION AND AVOIDANCE SYSTEM (AUG 2016) (Paragraphs (a) through (e) apply. In paragraph (c)(2) Note 3 applies. In paragraph (c)(6) Note 6 applies.) DFARS 252.246-7008 SOURCES OF ELECTRONIC PARTS (MAY 2018) (A
Slide 25: MFC Text Note MFC-PR-003
MFC TEXT NOTE MFC-PR-003 Seller shall only purchase products to be delivered or incorporated as work to the Buyer directly from i. the Original Component Manufacturer (OCM) ii. Original Equipment Manufacturer (OEM) iii. through an OCM/OEM authorized suppliers (distributor) iv. or from suppliers that
Slide 26: Summary
SUMMARY 1. ALWAYS procure from the original manufacturer/OCM regardless of commodity. 2. If that is not possible, obtain LM prior approval prior to buying from an independent distributor. 3. Know your source and where they procured their parts (traceability). 4. Certificates of Conformance ARE not t
Slide 27: Useful Information Links
USEFUL INFORMATION LINKS • Lockheed Martin Business Area Procurement • https://www.lockheedmartin.com/en-us/suppliers/business-area-procurement.html • Frequently Asked Questions - Counterfeits • https://www.lockheedmartin.com/en-us/suppliers/faqs/counterfeits.html • Terms & Conditions • https://www.
Slide 28: Questions
QUESTIONS Counterfeit Prevention – Past, Present and Future PIRA DAL202004007
Slide 29: PIRA DAL202004007
PIRA DAL202004007