ATEC Conference Dr. Don A. Kinard Lockheed Martin Aeronautics F-35 Production Operations

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1 2016 Lockheed Martin Corporation ATEC Conference Dr. Don A. Kinard Lockheed Martin Aeronautics F-35 Production Operations Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page

2 F-35 Value Proposition US UK Italy Netherlands Turkey Canada Australia Denmark Norway Israel Japan Korea Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page IAM Briefing Jan

3 F-35 Design/Supply Chain Roles NGC Center Fuselage - CA, Turkey Systems Responsibilities Weapons Bay Door and Drives Arresting Gear Radar IFO Doors - Netherlands BAES Salmesbury, UK Aft Fuselage - UK Vertical Tails - UK, Australia Horizontal Tails - UK, Canada, Denmark CV Wing Fold - Canada Lockheed Martin Edges LMPD, Norway, Denmark, Netherlands Wing - FW, Marietta, Italy, Israel FWD Fuselage FW only FACOs - FW, Italy, Japan Systems Responsibilities Autonomic Logistics Mission Systems Vehicle Systems Training Systems Team Harnesses - Netherlands Systems Responsibilities Fuel System Crew Escape Life Support EW System Throttle/Side Stick Flight Control Computer F-35 Production is an International Partnership Which has Strengthened Program Support in the United States as well as Abroad Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page IAM Briefing Jan

4 F-35 Integrated Production Plan As of 30 Nov Service Milestones USMC IOC USAF IOC USN IOC Israel UK Norway Production Planned Production Air Force 1,763 F-35A Dept of Navy 680 F-35B/F-35C International 800-1,500 TOTAL 3943 Lot 6(36) Lot 7 (35) Lot 8 (43) Lot 9 (57) LL Lot 10 (94) Lot 11 (121) Potential Block Buy Contracted UCA Pending Focused on Production Rate Readiness Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page IAM Briefing Jan

5 Fort Worth Production Orders Not Included: Italian/Japan FACO International 61 US As of 15 Jun Buy Year International Orders Account for More Than Half Through 2020 Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page IAM Briefing Jan

6 F-35 LM Assembly Touch Labor Hours As of 7 Oct , ,000 AF-6 140,000 Labor Hours 120, ,000 80,000 60,000 40,000 AF-81 20,000 0 LRIP 1-3 LRIP 4 LRIP 5 LRIP 6 LRIP 7 100,000 Assembly Hours Per Unit Reduction in 4 Years! Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page IAM Briefing Jan

7 F-35 Mechanic Growth Forecast Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page IAM Briefing Jan

8 Hiring and Training Process Flow. Standardized Assessment Approach Applicants Basic Qualification Search Recruiter Phone Screen Pre-hire Assessments* Interview Event with Practical Capability Demonstration Candidate Accepts Contingent Offer Technical Training Pass Background & Drug Screen First Day of Work Enhancements and Qualitative Hurdles Advanced Training as Required by Position Pass Proficiency Test Customer Required Certification Training Probationary Period * Pre-hire assessments comprised of job-relevant components: Mathematical ability Verbal comprehension ability Mechanical aptitude Predictors of good work habits, retention, teamwork, etc Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page IAM Briefing Jan

9 Performance Management Teams Driving Continuous Improvement Strengthen Existing Teams & Expand 29 F-35 PMTs 2,330 Items Generated 1645 Items Worked to Closure F-35 Build FTW 19 teams F-35 Wing MAR 5 teams Support PMTs 5 teams Generated 1761 Closed 1319 Generated 261 Closed 233 Generated 278 Closed 93 Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page IAM Briefing Jan

10 QUESTIONS? We Are All in This Together! Use or disclosure of the information contained herein is subject to the restrictions of the Cover Page IAM Briefing Jan

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