Lockheed Martin Corporation · NYSE:LMT
Lockheed Martin — 2013 Supplier Conference & Webcast
30 slides from Lockheed Martin's conference presentation, Jun 19, 2013
Slide 1: 2013 Supplier Conference & Webcast
2013 Supplier Conference & Webcast 19 June 2013 Dan Pleshko Vice President, Global Supply Chain Operations LOCKHEED wantin Zt
Slide 2: Welcome
Welcome A Leadership Message from Marillyn Hewson, President & CEO
Slide 3: Conference Program
Conference Program • Supply Chain’s Critical Role • Washington Environment - Sequestration & Regulatory Compliance • PEAQ Update • Program Execution • Affordability • Quality • Ethics and Sustainability • Supplier Diversity and Cyber Security Partnership • Information Security • Supplier Performance
Slide 4: Lockheed Martin business areas
Information Missiles & Mission Space Aeronautics Systems & Fire Control Systems & Systems Global Solutions Training
Slide 5: Go Anywhere – Do Anything
Go Anywhere – Do Anything Delivering Innovative and Relevant Solutions for Today's Global Security Challenges
Slide 6: PEAQ supply chain strategy
Execute strategic business decisions that shape and architect the multi-tier supply chain to produce value creation and mission success, through program execution, affordability and quality (PEAQ). PEAQ Performance
Slide 7: Key Themes
Key Themes • Uncertain Times, but we know what we need to do to Secure the Supply Chain • Adhere to all flow downs, laws and requirements • Conduct business with strong ethics and integrity • Support 100% mission success • Program Execution, Affordability and Quality • Be creative, collaborate, ask
Slide 8: Budget and Sequestration
Budget and Sequestration • FY 2013 Full Year Appropriations Passed – Provides Pentagon some limited flexibility – Sequestration applied to FY13 appropriated funds and prior year unobligated balances • Sequestration is Law and In Effect – Reduction in FY13 applied by program, project and activity – F
Slide 9: 2013 Legislative Schedule
2013 Legislative Schedule FY 2013 FY 2014 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV Sequestration Continuing PBR Submission Resolution (April 10th) FY14 Appropriations Process (Likely) FY14 Budget Budget Resolution Process Debt Limit Current Debt Limit Reached FY14 Defense Authorization House & Se
Slide 10: Regulatory Update
Regulatory Update • Counterfeit Electronic Parts – May 16, 2013: DoD Published a Proposed DFARS – Public Meeting in Washington, D.C. on June 28 – Comments Due July 15 • LM Comments Developed Through New Supply Chain Working Group (G&RA/GSCO) – House 2014 NDAA Broadens Allowability Safe Harbor • Incl
Slide 11: PEAQ Performance - New Realities Demand New Strategies
PEAQ Performance - New Realities Demand New Strategies Current State … New Reality Environment • New Leadership… Increased oversight & expectation of flawless execution • Budgetary constraints ... Affordability Facts • Two-thirds of program costs reside in the Supply Chain • Supplier performance & r
Slide 12: PEAQ Business Strategy
PEAQ Business Strategy Program Execution, Affordability, Quality • Committed to provide our customers with the highest levels of performance, affordability and quality – P rogram E xecution to be flawless – A ffordability aligned to secure future programs – Q uality that assures mission success • A
Slide 13: Why PEAQ is Important
Why PEAQ is Important Remember what we do matters ….. No one can do it better than us …And our Warfighters deserve our best
Slide 14: A Message from Frank Kendall, Undersecretary of Defense
A Message from Mr. Frank Kendall, Undersecretary of Defense for Acquisition, Technology and Logistics
Slide 15: Ethics and Sustainability – Supplier Resources
Ethics and Sustainability – Supplier Resources Increasing Focus on Whole Value Chain
Slide 16: Sustainable Partnership: Supplier Mentoring
Sustainable Partnership: Supplier Mentoring • Pilot in 2012 • New Round in July 2013 • Program Characteristics: Voluntary Participation Joint Program Assessment & Recommendations Support & Guidance Access to LM Resources Interested in participating? Closing Assessment Session Visit the Eth
Slide 17: Supplier Code of Conduct
Supplier Code of Conduct Z Written Especially for Supplier Concerns Anti-Corruption Environment Human Rights Labor Practices Management Systems — Major Topics: Replaces “Setting the Standard” Flowdown on Purchase Orders Leverages Sector Standards Significantly Shorter in Length Coming Soon — Late 20
Slide 18: Sustainable Partners: Supplier Resources
Sustainable Partners: Supplier Resources • 2012 Sustainability Report – Covers Sustainable Sourcing and Supplier Diversity – Access the Report: www.lockheedmartin.com/sustainability • Launching pilot Sustainability Assessment – Voluntary questionnaire on environmental, social and governance practice
Slide 19: Recent Supplier Diversity Accomplishments
Recent Supplier Diversity Accomplishments • Received “Outstanding” rating (3rd consecutive year) • Successfully enabled 12,000 small business suppliers to compete for and win over $6.2B in contracts • Received 20 local and national awards for small business program (2012)
Slide 20: Supplier Wire
Supplier Wire A dedicated resource for small enterprises looking to do business with Lockheed Martin and the industry in general Free webinars & live chats Educational videos Supplier testimonials Immediate needs bulletins Directories Partnership pursuits Veterans corner Lockheedmartin.com / Supplie
Slide 21: Mentor Protégé Supplier Spotlight
Mentor Protégé Supplier Spotlight • Crowley Fabricating and Machining Company • Current Lockheed Martin Mentor Protégé partner supporting the MH-60 maritime helicopter program • Based in Endicott, NY • Service-disabled veteran- owned small business
Slide 22: The Cyber Threat Landscape
The Cyber Threat Landscape True or False – the cyber threats that my ? company faces are similar to the ones faced by Lockheed Martin and the defense industry. Total Active Campaigns November Whiskey Uniform Pending Quebec Foxtrot Romeo Charlie Month Indigo Victor Tango Hotel Alpha Sierra Baker Brav
Slide 23: Lockheed Martin's Cyber Threat Approach
Lockheed Martin’s Cyber Threat Approach Lockheed Martin’s approach to working with ? suppliers on cyber security includes what elements? A – Working with suppliers to understand their cyber security posture B – Working to ensure our supply chain is aware of the cyber threats facing our industry and
Slide 24: Supplier Performance
Supplier Performance Mission First • Focus on Program Execution, Affordability and Quality (PEAQ) for all Products and Services Business Excellence • Basis of Estimate (BOE), Compliance, General Terms and Agreements (GTAs) Accountability • Supply Quality Scorecard • Remedies: Withholds, Claims • Ris
Slide 25: Innovation
ION =. < O INN
Slide 26: Discussion
Discussion
Slide 27: Chat Live Instructions
Chat Live Instructions 1. Go to Supplier Wire: http://www.lockheedmartin.com/supplierwire 2. Select “Get Connected” 3. Under Chat Live section, click “Enter a Chat Live session” link during scheduled time (June 26, 7-8 a.m. PT, 8-9 MT, 9-10 CT, 10- 11 ET)
Slide 28: Key TakeAways Today
Key TakeAways Today Suppliers are key to the overall success of Lockheed Martin programs, products and services. We need to continue to raise the bar on performance. Lockheed Martin rewards exceptional performance with new and continued business opportunities, and poor performance will affect
Slide 29: Thank You
Thank You
Slide 30: Slide 30