Original Date: 04/28/1995
Revision Date: 01/18/2007

Lockheed Martin Electronics and Missiles (E&M) Production Operations adopted the concept of Performance Management Teams (PMTs) in 1985 to continuously improve the quality and reliability of the company's products and services, reduce cost and cycle times, enhance productivity and ensure schedule compliance to maximize customer satisfaction.

PMTs require a change in culture and total workforce commitment, and quality is designated as the top priority. Team performance is measured at the team level and achievements are recognized through rewards. Teams are comprised of a normal work group from areas such as manufacturing engineering, industrial engineering, production planning, quality engineering, technical operations, procurement, and safety. Where appropriate, customers also are members of the team.

The focus of the PMT process is the team's work area and responsibilities, similar to the “company within a company” concept. Team leaders are designated and support groups are made an integral and active part of the team. Teams meet once per week, review performance metrics, identify action items to improve product and services quality, and develop improvements to enhance overall efficiency. Participation is mandatory and is a major part of the Lockheed Martin performance appraisal process. Nine metrics have been established at the production floor level to include quality yield, rework, scrap, audit result, cost performance, schedule/cycle time, lost time/overtime, customer satisfaction, and action items which could have a positive impact on product service quality and reliability, cost performance, productivity, safety, schedule delivery, cycle time, or customer satisfaction.

PMT recognition is based on a reward system comprised of elements such as Team of the Month and Team of the Year designations which include an award breakfast, plaque and pins, write-ups in the in-house publication, and Teamwork Counts Suggestion Program.

The benefits of PMTs are well documented. Lockheed Martin E&M has had no negative government audit findings for over six years. The company was U.S. Army Missile Command Contractor Performance Certified in 1990 and ISO 9001 certified in 1994. Production scrap and rework has been reduced over 70% resulting in production budget underruns. Total program cycle time has been reduced by an average of 36% on major Lockheed Martin systems, and there has been mission success on all programs.

For more information see the Point of Contact for this survey.