2026-09-20T10:02:37Zhttps://dspace.mit.edu/server/oai/requestoai:dspace.mit.edu:1721.1/530532026-06-06T01:03:35Zcom_1721.1_7582com_1721.1_7581com_1721.1_101402col_1721.1_131023col_1721.1_101610
Edgar Blanco.
Singh, Hem
Massachusetts Institute of Technology. Engineering Systems Division.
Massachusetts Institute of Technology. Engineering Systems Division
2010-03-25T14:54:01Z
2010-03-25T14:54:01Z
2009
2009
http://hdl.handle.net/1721.1/53053
497049598
Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2009.
Includes bibliographical references (leaves 68-69).
Lockheed Martin designs and builds commercial satellites to customers' specifications. The customers, such as telecommunications companies and weather forecasters, are very price sensitive and, usually, award contracts to the lowest priced bids. Lockheed manufactures satellites using a combination of in-house manufacturing, purchasing, and subcontracting (for subcontract parts). The subcontract parts constitute a majority of a satellite's costs. Lockheed uses contracts and other supply management techniques to stay competitive and to keep satellite, specifically subcontract part, costs under control. Some of the subcontract part contracts are managed under subcontract agreements called long-term agreements (LTA). A small supplier pool, long turnover (for bringing these suppliers onboard), regulatory requirements, and capital-intensive nature of the industry are important considerations in evaluating these LTAs. The LTAs embody the risks inherent in project supply chains, specifically, price, currency, and supply risks. In such events, LTAs can become a liability and can lead to monetary losses or discord with suppliers. This thesis provides an overview of the satellite supply chain, analyzes supplier relations to better understand the business dynamics, and analyzes LTAs to better control the satellite input costs. Key words: commercial satellite, contractor, long-term agreement, subcontract, Lockheed, subcontractor, LTA, satellite supply chain, contracts.
by Hem Singh.
M.Eng. in Logistics
72 leaves
eng
Massachusetts Institute of Technology
M.I.T. theses are protected by
copyright. They may be viewed from this source for any purpose, but
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http://dspace.mit.edu/handle/1721.1/7582
Engineering Systems Division.
An analysis of long-term agreements with suppliers in Lockheed Martin's commercial satellite systems division
Thesis
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Publication
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<Abstract>Lockheed Martin designs and builds commercial satellites to customers' specifications. The customers, such as telecommunications companies and weather forecasters, are very price sensitive and, usually, award contracts to the lowest priced bids. Lockheed manufactures satellites using a combination of in-house manufacturing, purchasing, and subcontracting (for subcontract parts). The subcontract parts constitute a majority of a satellite's costs. Lockheed uses contracts and other supply management techniques to stay competitive and to keep satellite, specifically subcontract part, costs under control. Some of the subcontract part contracts are managed under subcontract agreements called long-term agreements (LTA). A small supplier pool, long turnover (for bringing these suppliers onboard), regulatory requirements, and capital-intensive nature of the industry are important considerations in evaluating these LTAs. The LTAs embody the risks inherent in project supply chains, specifically, price, currency, and supply risks. In such events, LTAs can become a liability and can lead to monetary losses or discord with suppliers. This thesis provides an overview of the satellite supply chain, analyzes supplier relations to better understand the business dynamics, and analyzes LTAs to better control the satellite input costs. Key words: commercial satellite, contractor, long-term agreement, subcontract, Lockheed, subcontractor, LTA, satellite supply chain, contracts.</Abstract>
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