Original Date: 08/20/2001
Revision Date: 12/14/2006
Best Practice : Technology Roadmapping as a Sourcing Tool for Concurrent Engineering
The Material Acquisition Center Mid-Atlantic Region at Lockheed Martin Naval Electronics & Surveillance Systems-Surface Systems has taken concurrent engineering to new heights with Technology Roadmapping. This innovative strategy integrates sourcing upfront in the proposal, design, and production processes.
Previously, sourcing was not a major stakeholder in upfront proposal, design, and production processes, even though procured material expense was 65% of the total cost. In today’s environment of rapidly changing technology, the Material Acquisition Center Mid-Atlantic Region (MAC-MAR) at Lockheed Martin Naval Electronics & Surveillance Systems-Surface Systems (NE&SS-SS) considered this an unacceptable risk and took concerted action. In 1999, the Technology Roadmapping process was developed as a Sourcing Tool for driving Concurrent Engineering to lower total acquisition cost.
Technology Roadmapping is a shared vision and framework for cooperative technology efforts. As a market transformation tool, it helps accelerate the adoption of new technologies and mitigate risk. The mitigated risks include obsolescence, use of new technology, design upgrades, and supplier base instability. Roadmapping is accomplished by internal and external market research, Lockheed Martin supplier team building, and integrated supplier technology insertion. In this manner, supply base market dynamics are managed to ensure access to technology. For each technology area, an Integrated Product Team (IPT) consisting of a sourcing engineer, buyer, supplier quality engineer, components engineer and design engineer with Manufacturing, Life Cycle Support, and Marketing representatives is formed. Key aspects of supplier focus include re-negotiation based on cost understanding and leveraging of capabilities beyond the immediate objective.
As a consolidated purchasing organization, MAC-MAR serves as a technical link between business units. Sourcing comprehensively monitors buying and facilitates supplier relations among sites. With a well-defined leadership role, sourcing can coordinate process improvements, influence supplier technology roadmaps, establish special pricing agreements, perform risk assessments, and facilitate integrated product development. Process results include key technology capture, industry alignment, reduced research and development costs, design stability, and the establishment of a strategic supply base. MAC-MAR effectively tracks supplier part obsolescence and facilitates design for replacement. In one case, a specific Kaizen connector event reduced total cycle time from 28-to-113 days to 11-to-60 days. Actual process time was reduced from 44-to-60 hours to 38-to-50 hours. The connectors, semiconductors, and radio frequency technology areas have been completed by MAC-MAR. The cables, magnetic devices, and power supply technology areas are currently in progress.
For more information see the
Point of Contact for this survey.