Lockheed Martin Aeronautics:
Implementing SAP in a Complex
Manufacturing Environment
David Logan
Director, OneAero Operations
Lockheed Martin Aeronautics
SAP Advanced Manufacturing Summit
September 16-17, 2009
Agenda
1. Lockheed Martin Corporation
2. Understanding the Challenge: Unique Business Requirements
3. Meeting the Challenge: The OneAero Project
4. SAP Functionality for Key Capabilities
5. LM Aero Future Vision
6. Keys to a Successful Implementation
© SAP AG 2009. All rights reserved. / Page 2
©2009 Lockheed Martin Corporation
Lockheed Martin Corporation
Lockheed Martin Co.
Electronic Systems
Aeronautics
29,000+ Employees Across the Company and
Around the World
Palmdale, CA
Fort Worth, TX
Marietta, GA
U-2
F-22
F-117
Information Systems
& Global Services
YF-22
C-130J
F-16
Space Systems
X-35
F-35C
CV
© SAP AG 2009. All rights reserved. / Page 3
F-35A
CTOL
F-35B
STOVL
C-5
©2009 Lockheed Martin Corporation
Understanding the Challenge: Unique
Business Requirements
F-35 Monthly Aircraft Delivery Rate
24
22
20
18
16
14
12
10
8
F-35 Supply Chain and
Global Sustainment 2
Go-Live
6
4
2
0
Y1
Y2
Y3
Y4
Y5
Y6
Y7
Delivery Schedule (Years)
© SAP AG 2009. All rights reserved. / Page 4
©2009 Lockheed Martin Corporation
Understanding the Challenge: Unique Business Requirements
F-35 (JSF) Program Overview
The F-35 is collaborative effort of 9 partner countries with 3,000 deliveries scheduled for the next 30 years.
The F-35 is comprised of 3 variants designed for different branches of the armed services.
United States
Denmark
Italy
Norway
UK
The Netherlands
Australia
Turkey
Canada
Variant
CTOL
STOVL
Acronym
Conventional Takeoff and Landing
Short Takeoff, Vertical Landing
Carrier Variant
Primary Customer
Air Force
Marines
Navy
Variant Name
AF
BF
CF
© SAP AG 2009. All rights reserved. / Page 5
CV
©2009 Lockheed Martin Corporation
Understanding the Challenge: Unique Business Requirements
International Participation
Denmark
Canada
UK
Italy
CA
GA
Greece
Turkey
Israel
Pakistan
TX
S. Korea
Japan
India
Diagrams
Final Assembly and Checkout
Locations (FACO)
Challenges:
Vision:
•Support full rate production
•International supply chain
•Consistent process
•Supply chain visibility
•Numerous hand-off’s
•Balancing inventory
Integrate the supply chain and
provide visibility with a large
contingent of suppliers
© SAP AG 2009. All rights reserved. / Page 6
©2009 Lockheed Martin Corporation
Meeting the Challenge: The OneAero Project
OneAero Vision: Lockheed Martin Aeronautics will transform business processes, systems
and information through the implementation of SAP software, combined with significant
process improvements, positioning us to meet the challenges of effectively producing the JSF,
achieving horizontal integration and retiring high-risk, aging systems.
.
* Formerly Visiprise; Currently part of SAP Complex Assembly Manufacturing Solution (CAMS)
© SAP AG 2009. All rights reserved. / Page 7
©2009 Lockheed Martin Corporation
Meeting the Challenge: The OneAero Project
Launch Sequence Timeline
2008
2009
2010
2011
Jan
Deployment 1
Finance
Aug
May
Feb
Aug
Nov
D1
L1
L2
L3
L4
L5
All Sites
Finance
Fort Worth
F-22
Fort Worth
Remaining
Marietta
Clarksburg
Meridian
Palmdale
Classified
Palmdale
Unclassified
Deployment 2
Supply Chain
The second supply chain launch (L2) marks the initial SAP go-live for the F-35
Joint Strike Fighter program. The phased launch approach, beginning with the
F-22 program as a pilot, was chosen to mitigate risk to F-35 production rate goal.
© SAP AG 2009. All rights reserved. / Page 8
©2009 Lockheed Martin Corporation
SAP Functionality for Key Capabilities
Shop Floor
Management
(SFM) *
Computer
Aided Process
Planning
(CAPP) *
Supplier
Network
Collaboration
(SNC)
Global Trade
Services (GTS)
Transportation
Management
System (TMS)
* Formerly Visiprise; Currently part of SAP CAMS
© SAP AG 2009. All rights reserved. / Page 9
©2009 Lockheed Martin Corporation
SAP Functionality for Key Capabilities
Manufacturing Execution System: Why SAP CAMS?
Benefits of SAP CAMS
© SAP AG 2009. All rights reserved. / Page 10
©2009 Lockheed Martin Corporation
SAP Functionality for Key Capabilities
SAP Enterprise Integration: CAPP, SFM, SAP
Closed-loop Enterprise Integration:
PLM-ERP-MES(CAMS)
Order
Unit Number
Item
Other
BOMM
MCM
Item
MBOM
Router
Operation
Work Instruction
Inspection Characteristics
Buyoff
Data Collection
Operation Certification
Tools
ECO
CNC Program
Other
© SAP AG 2009. All rights reserved. / Page 11
Item
MBOM
Router
Standard Times
Tools
Other
As-built Record
Change Requests
Other
Order
Charge Code
Unit Number/ Qty
Resource
Other
Order Status
Order Confirmation
Labor Confirmation
Tool Usage
Rework
Material Consumption
Other
©2009 Lockheed Martin Corporation
SAP Functionality for Key Capabilities
Enterprise Integration: CAPP, SFM, SAP
MIDDLEWARE
(SAP PI)
© SAP AG 2009. All rights reserved. / Page 12
©2009 Lockheed Martin Corporation
SAP Functionality for Key Capabilities
Supplier Collaboration: SNC
User Interaction
Business Processes
Basic Services
Powered by SAP NetWeaver™
XML Message Exchange
© SAP AG 2009. All rights reserved. / Page 13
©2009 Lockheed Martin Corporation
SAP Functionality for Key Capabilities
Network Scheduling: SAP ECC
Aircraft Master Scheduling
Logistical Project Process
SAP Project Systems
PS-Networks support
project-oriented
manufacturing model:
SAP Production Planning
Aircraft Project
Configuration “AF”
Ship # 5
AF-5
AF-5
AF-5-1
Capacity Planning (CRP)
A/C Mate and Final Installation
Inspection
Capacity Requirement
Capacity Load Increased
Paint
Available Capacity Reduced
• Provides powerful, but
flexible scheduling tool
• Tight integration with
Planning and Material
Management
• Supports greater visibility to
shopfloor operations
Work Center: PAINT1
Confirmations Reduce Load
Wing Installation
Flaps
FLAP-121
Leading Edges
LEADEDGE-002
Network
Reservation
Materials Planning (MRP)
LEADEDGE-002
Relationship (SS +10)
Materials Planned by MRP
Center Fuselage Installation
Reqmt. Date Network Driven
Pre-Fit
Bulkhead Assy
BLKHD-004
Relationship (FS)
© SAP AG 2009. All rights reserved. / Page 14
©2009 Lockheed Martin Corporation
SAP Functionality for Key Capabilities
Logistics Execution: SAP ECC
© SAP AG 2009. All rights reserved. / Page 15
©2009 Lockheed Martin Corporation
SAP Functionality for Key Capabilities
Trade Compliance: GTS
•
(Future Release Capability)
Global Trade Services (GTS)
Export / Import
Sanctioned Party List screening
Automatic License Determination and Value Adjustment
Customs Documentation Generation
–
Electronic communication with U.S. Customs A.E.S.
(export only)
Tight Integration with ECC
Automatic screening of Customers/Suppliers against
Sanctioned Party List
Automatic screening of Sales Orders/Deliveries for Export
Automatic screening of Purchase Orders/Inbound
Deliveries/Advanced Shipping Notices for Import
© SAP AG 2009. All rights reserved. / Page 16
©2009 Lockheed Martin Corporation
SAP Functionality for Key Capabilities
Transportation Management: TMS
(Future Release Capability)
Global Visibility: visibility of delivery schedules
associated with both inbound and outbound
shipments
Transportation
Management
System (TMS)
Inbound:
Outbound:
•Consolidation
•Consolidation
of shipments
inbound to localized groupings of
manufacturing facilities and 3PL
© SAP AG 2009. All rights reserved. / Page 17
of international
shipments to subcontractors in
Europe and the Far East
©2009 Lockheed Martin Corporation
LM Aero Future Vision
© SAP AG 2009. All rights reserved. / Page 18
©2009 Lockheed Martin Corporation
Keys to a Successful Implementation:
Launch 1 Success Factors
7,000 Scenarios
47,000 Steps
4,303 Defects
531 people
> 1.0M Hours worked
6,235 PO’s
16,804 Vendor Masters
23,563 Material Masters
33,553 Production Orders
53 Instructor-Led Courses
27 Web-Based Courses
27K Training Hours
1446 End Users
343,288 Financial Breakpoints
99.9% of Data Loaded
4,886,780 Records
542 Records Required Mitigation
Successful Dry-Run
700 development objects
1045 Business Process Procedures
1,745 requirements
Exhaustive
Exhaustivetesting,
testing, thorough
thoroughdata
datacleansing
cleansingand
andvalidation,
validation,detailed
detailedand
andinteractive
interactivetraining
training
courses
and
our
partnership
with
SAP,
Deloitte
and
BackOffice
were
critical
to
our
success.
courses and our partnership with SAP, Deloitte and BackOffice were critical to our success.
© SAP AG 2009. All rights reserved. / Page 19
©2009 Lockheed Martin Corporation
Thank You!
Slide Citations
Description
Source
1
a. F-35 Manufacture
a. JSF Military Website
http://www.jsf.mil/images/gallery/sdd/f35_manufacturing/a/sdd_f35manfa_045.jpg
3
a. – d. Lockheed Martin Corp.
e. Map with small planes
a. – e. All photos are from the Consulting Onboarding deck from D1
4
a. Delivery Ram up Schedule
a. JSF Military Website,
http://www.jsf.mil/downloads/documents/ANNEX%20A%20Revision_April%202007.pdf
a.
a. Lockheed Martin Website, http://www.lockheedmartin.com/products/f35/f-35specifications/f-35a-ctol-
Slide
5
10
Large F-35
b. Small F-35 Variants
specifications.html
b. Lockheed Martin Website, http://www.lockheedmartin.com/products/f35/f-35specifications/index.html
a.
Electronic Work Instructions
a.
b.
c.
Order Processing Time
Shop Order Visibility
b.
c.
d.
e.
Non-Conformance Process
Engineering Change Incorporation
d.
e.
14
15
16
18
Visiprise Customer Case Study, http://www.manufacturingexecutive.com/sponsors/visiprise/lockheed.pdf
Creative Commons, http://search.creativecommons.org/# , Search for “stack of paper”
JSF Military Website,
http://www.jsf.mil/images/gallery/sdd/f35_manufacturing/a/sdd_f35manfa_004.jpg
JS Military Website,
http://www.jsf.mil/images/gallery/cdp/lockheed/manufacturing/cdp_loc_manf_001.jpg
JSF Military Website,
http://www.jsf.mil/images/gallery/sdd/f35_manufacturing/a/sdd_f35manfa_029.jpg
a. F-35 Manufacturing/Tools
a. JSF Military Website,
http://www.jsf.mil/images/gallery/sdd/f35_manufacturing/a/sdd_f35manfa_022.jpg
a.
b.
Demand Driven Replenishment
All others
a. Lockheed Martin Website,
http://www.lockheedmartin.com/data/assets/aeronautics/gallery/f35/flights/flight02/ae070108_27_01
133.jpg
b. FMF Warehouse Photos – 2009
a.
Global Trade
a. Lockheed Martin Website, http://www.lockheedmartin.com/isgs/capabilities/globaldelivery.html
a.
b.
FMF
FPS
c.
SCD
a. FMF Warehouse Photos - 2009
b. JSF Military Website,
http://www.jsf.mil/images/gallery/sdd/f35_manufacturing/a/sdd_f35manfa_045.jpg
c. Lockheed Photo Collage, http://www.jsf.mil/f35/
© SAP AG 2009. All rights reserved. / Page 21
©2009 Lockheed Martin Corporation