Original Date: 08/20/2001
Revision Date: 12/14/2006

The Aegis Depot Operations uses a synergistic approach with the Manufacturing Operations to increase its capacity in meeting growing demands and peak workloads. Resource sharing allows both operations to benefit without hiring additional personnel or compromising business practices.

Lockheed Martin Naval Electronics & Surveillance Systems-Surface Systems (NE&SS-SS) is the prime contractor for manufacturing and integration of the Aegis Weapons System (AWS) and Aegis Depot Operations (ADO) for the Navy. ADO was a stand-alone activity with the capacity to perform Supply Support for NAVSEA, during the Interim Support phase of the Shipbuilding Process and Supply Support for NAVICP and the Aegis Fleet. As the customer’s concept of how to best perform Supply Support changed, ADO’s workload increased. Lockheed Martin NE&SS-SS was driven by the desire to compete as the prime vendor for Supply Support; however, its capacity was being challenged especially in times of peak demands. The obvious solution was to expand the capabilities and scope of ADO, but the company preferred to do this in a cost-effective manner.

Originally, ADO consisted of three entities: Requirements Group, Material Control Group, and Repair Facility Group. Each entity relied on various Manufacturing Operations activities for support. To address the issue of increasing depot capacity, both ADO and the Manufacturing Operations identified similar capabilities and operational differences which could be shared. Primary candidates for shared resources (or synergy) included test, repair, inspection, packing, and stockroom personnel. Operational differences were addressed to bring resources in line with ADO without compromising the Manufacturing Operations. Additionally, extensive planning was undertaken to provide accurate workload forecasts, train personnel to be flexible, and provide timely workload scheduling to optimize the synergy between the two operations.

Prior to the synergistic approach, ADO’s capabilities were limited in capacity by the number of available labor support hours of assigned personnel. After implementing the approach, the capacity grew because ADO could access additional personnel from the Manufacturing Operations. Synergy allowed ADO to meet the needs of a growing business and satisfy peak demands. ADO is now positioned to compete as a prime contractor for Supply Support to the Navy, as well as take on other projects.

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