LOCKHEED MARTIN (NYSE : LMT) is an American global aerospace , defense , security and advanced technologies company with worldwide interests. It was formed by the merger of Lockheed Corporation with Martin Marietta in March 1995. It is headquartered in Bethesda , Maryland , in the Washington, DC, area . Lockheed Martin employs 126,000 people worldwide. Marillyn Hewson is the current President and Chief Executive Officer.
Lockheed Martin is one of the largest companies in the aerospace, defense, security, and technologies industry. It is the world's largest defense contractor based on revenue for fiscal year 2014. In 2013, 78% of Lockheed Martin's revenues came from military sales; it topped the list of US federal government contractors and received nearly 10% of the funds paid out by the Pentagon . 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%).
Lockheed Martin operates in five business segments: Aeronautics, Information Systems & Global Solutions, Missiles and Fire Control , Rotary and Mission Systems , and Space Systems . The company has received the Collier Trophy six times, including in 2001 for being part of developing the X-35 /F-35B LiftFan Propulsion System , and most recently in 2006 for leading the team that developed the F-22 Raptor fighter jet. Lockheed Martin is currently developing the F-35 Lightning II and leads the international supply chain, leads the team for the development and implementation of technology solutions for the new USAF Space Fence ( AFSSS replacement), and is the primary contractor for the development of the Orion (spacecraft) command module. The company also invests in healthcare systems, renewable energy systems , intelligent energy distribution and compact nuclear fusion .
* 1 History
* 1.1 1990s * 1.2 2000s * 1.3 2010s
* 2 Corruption investigations * 3 Criticism
* 4 Organization
* 4.1 Advanced design and development division * 4.2 Aeronautics * 4.3 Missiles and Fire Control * 4.4 Rotary and Mission Systems * 4.5 Space * 4.6 Others * 4.7 Joint ventures * 4.8 Divested
* 5 Government contracts
* 6 Corporate governance
* 6.1 Board of directors * 6.2 Chief executive officer * 6.3 Chairman of the board * 6.4 Criticism
* 7 Lobbying
* 8 Management
* 8.1 Double Helix methodology
* 9 See also * 10 References * 11 Further reading * 12 External links
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. The deal was finalized on March 15, 1995, when the two companies' shareholders approved the merger. 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 also 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 Lockheed/Northrop would have had control of 25% of the Department of Defense's procurement budget.
For the Mars Climate Orbiter , Lockheed Martin incorrectly provided NASA with software using measurements in US Customary force units when metric was expected; this resulted in the loss of the Orbiter at a cost of $125 million. The development of the spacecraft cost $193.1 million.
Lockheed Martin's Center For Leadership Excellence (CLE) Building in Bethesda, Maryland
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 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.
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. 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.
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. In 2009, Lockheed Martin bought Unitech.
On November 18, 2010, Lockheed Martin announced that it would be closing its Eagan, Minnesota location by 2013 to reduce costs and optimize capacity at its locations nationwide. 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. On May 25, 2011 Lockheed Martin bought the first Quantum Computing System from D-Wave Systems . Lockheed Martin and D-Wave will collaborate to realize the benefits of a computing platform based upon a quantum annealing processor , as applied to some of Lockheed Martin's most challenging computation problems. Lockheed Martin established a multi-year contract that includes one system, maintenance and services. Potentially an important milestone for both companies.
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. 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.
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. 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. On November 27, 2012, Lockheed Martin announced that Marillyn Hewson will become the corporation's chief executive officer on January 1, 2013.
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 , Quebec , 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. Lockheed Martin teamed up with Bell Helicopter to propose the V-280 Valor tiltrotor for the Future Vertical Lift (FVL) program. In September 2013, Lockheed Martin acquired the Scotland -based tech firm, Amor Group , saying the deal would aid its plans to expand internationally and into non-defence markets. On November 14, 2013, Lockheed announced they would be closing their Akron, Ohio facility laying off 500 employees and transferring other employees to other locations.
In March 2014, Lockheed Martin acquired Beontra AG, a provider of integrated planning and demand forecasting tools for airport, planning to expand their business in commercial airport information technology solutions. Also in March 2014, Lockheed Martin announced its acquisition of Industrial Defender Inc. On June 2, 2014 Lockheed Martin received a Pentagon contract to build a space fence that would track debris, keeping it from damaging satellites and spacecrafts. In September 2014, Lockheed agreed a deal to sell 40 F-35 fighter jets to South Korea for delivery between 2018 and 2021, for a fee in the region of $7.06 billion.
On July 20, 2015, Lockheed Martin announced plans to purchase Sikorsky Aircraft from United Technologies Corporation at a cost of $7.1 billion. The Pentagon has criticized the acquisition as causing a reduction in competition. In November 2015, the acquisition received final approval from the Chinese government, with a total cost of $9 billion. Dan Schulz was named the president of Lockheed Martin's Sikorsky company. Lockheed Martin has shown sketches for a twin-engine, blended wing body strategic airlifter similar in size to the C-5. On March 31, 2015, the US Navy awarded Lockheed Martin a contract worth $362 million for construction of Freedom-class ship LCS 21 and $79 million for advanced procurement for LCS 23. The Freedom-class ships are built by Fincantieri Marinette Marine in Marinette, Wisconsin . In December 2015, Lockheed won a $867 million seven-year contract to train Australia ’s next generation of military pilots . There is also an option in the deal to extend this contract across 26 years which would greatly increase the deal’s value.
In August 2016, Canadian Forces Maritime tested an integrated submarine combat system developed by Lockheed Martin. The test marked Canada’s first use of the combat system with the MK 48 heavyweight torpedo, variant 7AT.
On March 3, 2012, the U.S. Justice Department said that Lockheed Martin had agreed to settle allegations that the defense contractor had sold overpriced perishable tools used on many contracts. The DoJ said the allegations were based specifically on the subsidiary Tools "> C-130 Hercules ; in production since the 1950s, now as the C-130J Submarine launch of a Lockheed Trident missile
MISSILES AND FIRE CONTROL
ROTARY AND MISSION SYSTEMS
* Lockheed Martin Canada * Lockheed Martin Australia * Lockheed Martin Advanced Technology Laboratories * LMC Properties * Lockheed Martin Enterprise Business Services * Lockheed Martin Finance Corporation * Lockheed Martin U.K. * SIM Industries – a Lockheed Martin company
* International Launch Services (with Khrunichev , RSC Energia ) * Lockheed Martin Alenia Tactical Transport Systems (with Alenia Aeronautica ), now folded * MEADS International (with EADS and MBDA ) * Space Imaging (46%, remainder public) * United Launch Alliance (with Boeing ) * Longbow LLC (with Northrop Grumman) * United Space Alliance (with Boeing) * Kelly Aviation Center (with GE and Rolls-Royce ) * Protector USV – an unmanned surface vehicle (with Rafael Advanced Defense Systems and BAE Systems ) * Defense Support Services (DS2) with Day white-space:nowrap;"> 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.
Senior management consists of the CEO, COO and CFO, and Executive Vice Presidents (EVP) of five business areas. The EVPs are responsible for managing major programs.
Employees in each program are organized into four tiers: Tier1 –Program Manager/VP, Tier2-Functional Teams (Finance, Chief Engineer, Quality, Operations, etc.), Tier3-Integrated Product Teams (IPTs) (Weapon System Development, Weapon System Integration, etc.), and Tier4-detailed product development. Floor or touch workers belong to component assembly teams. Lockheed Martin manages and maintains its relationship with these touch workers through its supervisors and unions.
Lockheed Martin manages employees through its Full Spectrum Leadership and LM21 programs. The 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 streamline process implementation.
Tier2 Functional Leads and Tier3 IPT Leads report to Tier1. IPT leads are responsible for entire systems or products defined by the contract’s Statement of Work.
To control quality, Lockheed Martin trains and builds IPT teams. and ensures that work is executed correctly through a Technical Performance Measure (TPM) system which emphasizes its Lean and 6 Sigma processes. Middle management uses commitment mechanisms that parallel high commitment and human relations theory.
Floor employees assemble aircraft using Flow-to-takt lean manufacturing process 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, 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.
* Aviation portal
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