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Maintenance Outsourcing As a Global Strategy

April 9, 2009
Last year, Lockheed Martin selected a single source for comprehensive global maintenance services. Shouldn't you?

By outsourcing the global service and support of its manufacturing equipment, Lockheed Martin is building strategic value beyond cost reduction. In addition to enabling lean efficiencies and economies, the outsourcing agreement with MAG Maintenance Technologies enhances the ability of proactive maintenance to further its competitive strategy, adds Gary Finney, director of industrial sales and service North America for MAG Maintenance Technologies.

The program is global in two respects, explains Finney. "First it covers service and support of all manufacturing equipment at Lockheed Martin's major global locations. Second, the agreement is global both in scope of products and services offered, including interactive diagnostic help, preventive maintenance, field service, training, replacement and spare parts and productivity improvements."

Integration of the program into Lockheed Martin's global sourcing system allows easy access to everything from discounted parts and tooling to comprehensive repairs and relocation services. Finney describes Lockheed Martin's program as a breakthrough. "Any Lockheed Martin facility can now order any covered service simply by checking off a couple boxes on a one-page form. This saves substantial time and cost at the operating level over lengthy supplier evaluation and bid processes."

The big picture goes beyond "keep-it-up-and-running" factors and encompasses long-term decisions regarding machine rebuilds, upgrades and relocation of equipment. This "cradle-to-grave" approach can simultaneously minimize the total cost of ownership while maximizing life-cycle ROI, adds Ron Hoffman, vice president and general manager at MAG Maintenance.

He says savings can be realized in areas ranging from greater operational and maintenance efficiencies to purchasing/management cost reduction. "Harder to quantify, but still very real, is the benefit of having a group of front-line people from a single source understand your business objectives and production program goals."

Lockheed Martin's outsourcing program is a breakthrough, says Gary Finney, director of industrial sales and service North America for MAG Maintenance Technologies.

Hoffman notes that trends in production monitoring are moving rapidly from machine-level to production-level intelligence. "Real-time Performance Management (RPM) has been proven to optimize utilization of equipment for greater manufacturing efficiency, productivity and ROI."

The enablers are the computerized data collection tools that identify and resolve out-of-cycle events as they are happening, says Hoffman. "They can provide interactive, on-demand reporting of production equipment and availability, utilization and performance."

Finney says the scope of the agreement goes beyond MAG equipment. He also cites major relocations of legacy equipment and systems from U.S. Lockheed Martin plants to Tier One suppliers in Italy and China under global offset programs. MAG Maintenance Technologies also handled the acquisition, upgrade and installation of used machines to enable a Chilean subcontractor to perform five-axis machining on offset work.

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