Executive Summary
Lockheed Martin, a global leader in aerospace and defense technology, faced significant challenges in managing their complex military training operations under performance-based contracts. By implementing Simio’s Process Digital Twin technology, they created a comprehensive Training Enterprise Digital Twin that revolutionized their approach to resource planning, scheduling, and operational decision-making.
The solution enabled Lockheed Martin to accurately model student progression through training pipelines alongside asset availability and maintenance requirements. This digital replica of their training enterprise delivered remarkable results, including 25% faster training completion times, 20% reduction in peak student loads, and potential savings of tens of millions of dollars through optimized asset procurement.
This case study examines how Lockheed Martin leveraged Simio’s simulation technology to transform their training operations while providing unprecedented visibility into operational dynamics and resource requirements.
Business Challenge
The Turnkey Training Challenge
Lockheed Martin’s innovative “turnkey training” approach represents a fundamental shift in military training delivery. Rather than simply providing training equipment, Lockheed Martin delivers a comprehensive performance-based service focused on training outcomes. This approach creates unique operational challenges:
Performance-Based Contract Risk: Payment is contingent on producing qualified graduates who meet strict specifications, creating significant financial exposure if training goals aren’t met.
“It’s performance based. That means we only get paid when we produce a finished product that meets or exceeds specifications. We have student candidates coming in one side as the raw material, and graduates are produced at the other end as the finished product.”
Resource Optimization Complexity: Training facilities include high-value assets like aircraft and simulators with:
- Complex maintenance requirements
- Weather-dependent availability
- Competing demands between training and maintenance
Forecasting Uncertainty: Training operations involve:
- Multiple pipelines with varying resource requirements
- Unpredictable student progression and attrition
- Complex dependencies between courses and resources
Strategic Decision Support Needs: Management required:
- Accurate forecasting of program performance
- Quantification and mitigation of operational risks
- Optimization of resource procurement and utilization
- Support throughout the program lifecycle
Traditional planning approaches couldn’t adequately capture these complexities or provide the decision support needed to optimize operations. Lockheed Martin needed a solution that could model the intricate dependencies within their training enterprise while supporting data-driven decision-making.