Category 3
Customer Focus
Jeff Hall
Missiles and Fire Control
Director, Business Planning
Approved for Public Release DAL201302010
© 2013 Lockheed Martin Corporation. www.lockheedmartin.com/mfc
MFC Cat 3 Customer Focus - 1
Missiles and Fire Control
Voice of the Customer
• Listening and
learning process
– Both formal and
informal
– Face-to-face, written,
electronic
• On-site customer representatives
• MFC employees embedded with customers,
even in combat environments
• Customers actively engaged throughout the life
cycle of the program
Approved for Public Release DAL201302010
© 2013 Lockheed Martin Corporation. www.lockheedmartin.com/mfc
MFC Cat 3 Customer Focus - 2
Missiles and Fire Control
Customer Interface
Approved for Public Release DAL201302010
© 2013 Lockheed Martin Corporation. www.lockheedmartin.com/mfc
MFC Cat 3 Customer Focus - 3
Missiles and Fire Control
External Customer Relationship
Management Survey Process
Business Development
(BD)/Program Management (PM)
– Determine Programs,
Customers and appropriate level
for CRM Surveys identified
BD/PM/VP – Meet with
Customer in person to
complete Survey; if customer
doesn’t want to participate,
general discussions on LM
performance are encouraged
if the customer is willing
Line of Business (LOB) VP –
Approves Programs and
Customers to be surveyed
BD/PM – Review data and
develop corrective action plans
to improve Customer Relations
and populate the Customer
Relationship Index
BD/PM/VP – provide
corrective action plan and
feedback to Customer
BD – Customer satisfaction
and Intimacy improves
Approved for Public Release DAL201302010
© 2013 Lockheed Martin Corporation. www.lockheedmartin.com/mfc
MFC Cat 3 Customer Focus - 4
Missiles and Fire Control
Program X Customer Relationship Index
Program Report Card
Program Relationship Rating
1
External Program Perspective
USG
LM
Overall CPARs
PEO
2
Award Fee
3
Brand Reputation
PM
PCO
Overall
4
Warfighter Satisfaction
5
Program Flexibility
6
Partnership
7
Program Commitment
Customer surveys feed
Program Report Card
LOB VP & PM
8
Warfighter
9
Acquisition
AAC/CC
SAF/AQ
10
OSD
AT&L
11
Congress
Orl-Cong
Troy-Sen
ACC/A8
LOB VP & PM with input from
the cognizant field activity
Action Plan
Factor
Owner
Due
1,6,9
Smith/
FRB/QA
2/12/09
Complete the final analysis and build a plan forward.
Present this plan to LoB VP and Engineering VP
Description
2,4
Smith/Jones
2/12/09
Estimate the cost impact and rebuild plan.
Any Color Ratings < Green or Blue require a corrective action plan
Approved for Public Release DAL201302010
© 2013 Lockheed Martin Corporation. www.lockheedmartin.com/mfc
MFC Cat 3 Customer Focus - 5
Missiles and Fire Control
Strategic Planning & Execution System
Plan
Develop Long Range Plan
Prepare Company Strategic Plan
Perform Situational Assessment
Develop
Business
Strategy
Assess and Forecast Financials
MFC Strategic Plan
Provide Improvements and Spirals
Identify Risks and Opportunities
Plan & Allocate Resources
Proposal Costs
MFC Long Range Plan
R&D /
Capital Tech Expenses
Investment
Capture the Business
Market Development & Opportunity Qualification
Phase 1
Contract Performance
Pre‐Proposal
Phase 3
Pursuit Qualification
Phase 2
Proposal Development
Phase 4
Post‐Proposal
Phase 5
Proposal
Products
AWARD
Execute
Closed Loop Iterative Processes
AWARD
Proposal
Products
Plan the Program
Design the Product
Acquire the Material
Fabricate the Product
Support the Product
Deliverables
Requirements
Requirements
Support
System
Requirements
Design
Solicit &
Evaluate Bids
Manufacturing
Technologies
& Processes
Cost
Verification &
Validation
Manpower
Build the
Product
Manage the
Supply Chain
Performance
Measures
Quality
Facilities
Deliver the
Product
Provide
Operational
Support
Finance
Human Resources
Contract
Deliverables
Approved for Public Release DAL201302010
© 2013 Lockheed Martin Corporation. www.lockheedmartin.com/mfc
MFC Cat 3 Customer Focus - 6
Missiles and Fire Control
Customer Interface –
Strategy Development
Prepare Company Strategic Plan
Perform Situational Assessment
Develop
Business
Strategy
MFC Strategic Plan
Strategy
• Defense & Military Strategy Documents
• Quadrennial Defense Reviews
• President’s Budget Request
• Foreign Country Strategies
Approved for Public Release DAL201302010
© 2013 Lockheed Martin Corporation. www.lockheedmartin.com/mfc
MFC Cat 3 Customer Focus - 7
Missiles and Fire Control
Customer Interface – Planning
Develop Long Range Plan
Planning
• Department of Defense
Budget
Assess and Forecast Financials
Identify Risks and Opportunities
MFC Long Range Plan
• Service Plans
• Acquisition Plans
• Foreign Allies Acquisition
Plans
Approved for Public Release DAL201302010
© 2013 Lockheed Martin Corporation. www.lockheedmartin.com/mfc
MFC Cat 3 Customer Focus - 8
Missiles and Fire Control
Customer Interface – Resourcing
Resourcing
Plan & Allocate Resources
• Acquisition Plans
• Defense/Military Technology
Roadmaps
Proposal Costs
R&D /
Capital Tech Expenses
Investment
• Negotiated Rates
• Requirements Documents
• Analysis of Alternatives
Approved for Public Release DAL201302010
© 2013 Lockheed Martin Corporation. www.lockheedmartin.com/mfc
MFC Cat 3 Customer Focus - 9
Missiles and Fire Control
Customer Interface – Capturing Business
Market Development
Proposal Development
• Trade Shows / Conferences
• Request for Information
• Customer Focus Teams
• Request for Proposal
• Broad Agency
Announcements
• Industry Days
• Technical Specifications
Capture the Business
Market Development & Opportunity Qualification
Phase 1
Pursuit Qualification
Phase 2
Pre‐Proposal
Phase 3
Proposal Development
Phase 4
Post‐Proposal
Phase 5
Proposal
Products
AWARD
Post-Award
Interface
• Competition
Debriefs
Approved for Public Release DAL201302010
© 2013 Lockheed Martin Corporation. www.lockheedmartin.com/mfc
MFC Cat 3 Customer Focus - 10
Missiles and Fire Control
Customer Interface – Program Execution
Team Collaboration
Product Support Feedback
• Corrective Action Boards
• Field Service Rep Reports
• Program Reviews
• Corrective Action Reports
• Integrated Product Team
Meetings
• Contractor Performance
Assessment Reports
Execute
Closed Loop Iterative Processes
AWARD
Proposal
Products
Plan the Program
Design the Product
Acquire the Material
Fabricate the Product
Support the Product
Deliverables
Requirements
Requirements
Manufacturing
Technologies
& Processes
Support
System
Requirements
Cost
Design
Solicit &
Evaluate Bids
Manpower
Verification &
Validation
Manage the
Supply Chain
Build the
Product
Quality
Facilities
Deliver the
Product
Provide
Operational
Support
Performance
Measures
Finance
Human Resources
Contract
Deliverables
Approved for Public Release DAL201302010
© 2013 Lockheed Martin Corporation. www.lockheedmartin.com/mfc
MFC Cat 3 Customer Focus - 11
Missiles and Fire Control
Cycles of Learning & Improvement
• Example 1: Declining Contractor Performance
Assessment Report (CPAR) Scores
– Developed a formalized CPAR
response process
• Worked with customer
up front to understand
concerns
• Ensured involvement
of senior leadership
– Results: 5 Years of
Increasing Scores
Approved for Public Release DAL201302010
© 2013 Lockheed Martin Corporation. www.lockheedmartin.com/mfc
MFC Cat 3 Customer Focus - 12
Missiles and Fire Control
Results – Customer Satisfaction
Customer Assessment
DoD Industry
2006
2007
2008
2009
2010
Follow-On Orders
MFC
>6% Above
Industry
2011
100% of CPAR Summaries in 2011 and 2012 Stated They Would Award to MFC Again
High Customer Satisfaction – Exceeding Industry and Baldrige
Benchmarks – Results in Increased Follow-on Orders
Approved for Public Release DAL201302010
© 2013 Lockheed Martin Corporation. www.lockheedmartin.com/mfc
MFC Cat 3 Customer Focus - 13
Missiles and Fire Control
Cycles of Learning & Improvement
• Example 2: Customer Listening…
Army Tactical Missile Systems®
Quick Reaction Unitary (QRU) Program
– Customer expressed urgent
need for QRU to develop,
test and deliver a number of
missiles for Operation
Iraqi Freedom
– Responded with company
resources to meet their needs
– Result: 7 months from concept to fielded system
Approved for Public Release DAL201302010
© 2013 Lockheed Martin Corporation. www.lockheedmartin.com/mfc
MFC Cat 3 Customer Focus - 14
Missiles and Fire Control
National Customer Recognition
• Within the Past 5 Years …
3 Performance Based Logistics
Awards from the Secretary of Defense
46 Superior Ratings from the
Defense Security Service for
Outstanding Industrial Security
4 Times Named an
IndustryWeek
Top 10 Plant
11 James S. Cogswell
Awards for Outstanding
Industrial Security
Achievement from the
Department of Defense
William J. Perry Award from the
Precision Strike Association for
Superb Contributions
3 Shingo Prizes for
Operational Excellence
Approved for Public Release DAL201302010
© 2013 Lockheed Martin Corporation. www.lockheedmartin.com/mfc
MFC Cat 3 Customer Focus - 15
Missiles and Fire Control
Summary
• Long-term, intimate
working relationships
• Customers actively engaged
in Integrated Product Teams
• Relationships enhanced by
close working proximity
– On-site Defense Contract Management/
Defense Contract Audit Agency representatives
– Field Service Reps embedded with customer
We Never Forget Who We’re Working For®
Approved for Public Release DAL201302010
© 2013 Lockheed Martin Corporation. www.lockheedmartin.com/mfc
MFC Cat 3 Customer Focus - 16