Lockheed Martin Uses Supply Chain Strategy to Improve Mission Capable Rates

by Ruth Seeley

Multi-year Performance Based Logistics (PBLs) contracts and Master Repair Agreements (MRAs) are both part of the supply chain strategy Lockheed Martin is using to enhance supply availability and reduce its sustainment costs while it expands its F-35 fleet. PBLs with BAE Systems, Northrop Grumman and Collins Elbit Vision Systems (CEVS) are already in place. MRAs cover contracts with 12 separate suppliers including Honeywell, GE and Eaton. Initial multi-year contracts are already delivering benefits. One, for Electronic Warfare subsystem, is helping deliver a 25 percent improvement in the system’s availability throughout global operations.

As more aircraft enter service, the enterprise is optimizing resources across the fleet and leveraging data across hundreds of thousands of flight hours. The program is conducting supply chain competitions, building supply chain capacity, synchronizing spare buys, improving parts reliability and maintainability, implementing advanced analytics tools, enhancing the Autonomic Logistics Information System (ALIS), accelerating modifications of earlier aircraft, and supporting the stand-up of government-led regional warehouses and repair depots.

With stealth technology, advanced sensors, supersonic speed, weapons capacity and superior range, the F-35 is the most lethal, survivable and connected aircraft in the world. More than a fighter jet, the F-35 has the ability to collect, analyze and share data.

As the F-35 fleet expands, the F-35 Joint Program Office-led Hybrid Product Support Integration (HPSI) team is implementing the Global Support Solution (GSS) to enhance readiness and reduce costs. The F-35’s reliability and readiness continues to improve and newer production aircraft are averaging greater than 60 percent mission capable rates with some operational squadrons consistently near 70 percent. Additionally, Lockheed Martin has reduced its portion of operating costs per aircraft by 15 percent since 2015.

The F-35 enterprise’s goal is to deliver 80 percent mission capable rates in the near term, and achieve a $25,000 Cost per Flight Hour (CPFH) by 2025, which is comparable to the cost to sustain legacy aircraft, while providing a generational leap in capability.

Source: Lockheed Martin

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