March 7,2OO1,

A newera be$insAcross Controls,' Project Epoch' makesplans fo, a major bwsiness transformationepoch (EP-ik) n. 1. A particularperiod of history; especially one re-garded as being in some way character-istic, remarkable, or memorable; an

era. 2. A point in time or progress thatmarks the beginning of such a period.

f'lonsider the above definition andUrorn" big events come to mind: theperiod when dinosaurs inhabited theearth, the Renais-sance, World War IIand the global politi-cal transformationthat followed. In thecontext of business,the term also describesthe unprecedented pe-riod of consolidationand realignment thatdefined the aerospace

industry in the 1990s.Today, Controls is

laying plans for anepoch of its own -a total transformationin the way the business operates, frommanaging inventory and finances to cre-ating a more customer-friendly enterprisethat sets new standards for delivering su-perb products on time and on budget.

Get acquainted with Project Epoch.It's here to stay, and it's going to affectevery Controls employee over the nexttwo years.

"The formation of the new Controlsbusiness is a defining moment for us,

and one that will drive an effbrt tototally transform this business." said PatShannon, Epoch program director. "Weare fortunate. really. because our effortsto rein\,ent Controls come rvith a built-in sense of urgencv."

Urgertcr? You bet - on tlvo levels.First. Controls has a shofi-term need toget otf of the Lockheed Martin com-puter systems that still support much ol

the Johnson City andFort Wayne opera-tions. Longer-term,the business mustundertake a cultureshift - operating as

one business across

five sites and trans-forming itself into ahigh-performingorganization thatsatisfies customers'demands for im-proved service andqu.ality at lowerEPOCHpnces.

The transformation will be under-pinned by computer systems - an

overarching "e-business" suite providedby Oracle Corp. and five other majorsystems that will manage engineeringdata, pricing, personnel data, time andattendance, and travel and living. Thesesystems will be implemented in phases

starting this year, as old LockheedMartin svstems

"o" T,T#: npage2

BAE SYSTEMS ContTo|s

Herringto leadItilegffiedSystemsbusinessarleatflhomas Herring has been namedI vice president of Integrated Sys-

tems for Controls, effective March12. Herring comes to Controls fromBAE SYSTEMS Advanced Systemsin Greenlawn,N.Y., where he

has spent hisentire 20-yearcareer. He willbe based inSanta Monica.

Herring has

held a succes-

sion ofincreas-ingly respon-sible programmanagement positions at AdvancedSystems, most recently as vice presi-dent of National Upgrade Programsand Display Systems. Prior to thatassignment, he was director of pro-grams for the Display Systems prod-uct line. He also served in programmanagement positions on the B-2,E-2C. 137, and other major programs.

For the past six months, Herringhas been transition manager respon-sible for overseeing BAE SYS-TEMS' integration of LockheedMartin's Aerospace Electronics Sys-tems businesses. That acquisition wascompleted in November 2000.

"Tom brings a wealth of programmanagement experience that willmake him a major asset in managinga business area as diverse as Inte-grated Systems," said Jim Scanlon,

- continued on page 2

H erring

2 . lnsight . March 7,2OOL

U.S. aequisitions marked'challen$in$' 2OOOAE SYSTEMS announced its full-year financial results for 2000, "a

challenging year" punctuated by majorU.S. acquisitions and successful inte-gration of the heritage British Aero-space and Marconi Electronic Systemsbusinesses but underscored by well-publicized problems.

"Last year was a challenging year,"

said John Weston, chief executive."With our acquisitions in the U.S. thesuccessful integration of our company,we have achieved our long-term objec-tive of being positioned as a worldleading systems, defense, and aerospace

company."Howevel BAE SYSTEMS also had

to deal with the reassessment of theNimrod program, which resulted in a

pretax charge of $435 million, and therestructuring requirements of thecompany's Programs organization.

A summary of the 2000 results:. Profit before interest, excluding

goodwill amortization and exceptionalitems, was $1.37 billion.

. Underlying profit was $1.8 billionfor the year, excluding exceptionalitems, goodwill amortization, and

Nimrod.. Sales were $17 billion.. The order book stood at $59.45

billion at the end of the year.. Cash performance was strong, with

net operating inflows of $2.7 billion."We have now drawn a line under

the problems of the past," Weston said,adding that he anticipates resumption ofgrowth in 2002 and beyond as the

company benefits from its investment inthe United States, from growth in Air-bus Industrie (in which BAE SYS-TEMS is a 20Vo partner), and from thestart of new production programs.

The Epoch visioncommon, integrated

enterprise across all sites

that enables sustained com-

petitive advantage and profit-

able growth. This common

enterprise encompasses the

entire program management

and product life cycles and will

be e-connected with custom-

ers, parLners, suppliers, andgeographically dispersed sites.

eliminate activities that don't providevalue to customers, Mitchell said.

During the coming months, employ-ees will hear much more about ProjectEpoch from their managers, throughthe Epoch newsletter and this publica-tion, and via an Epoch Web site thatwill be available soon.

Employee briefingsslated for this monthBAE SYSTEMS' 2001 business planand the "Pedormance Challenge," the

strategy for achieving that plan, will be

discussed at all-employee meetings laterthis month. The meetings will cover the

state of the company from the corpo-rate, North America, and local Controlsperspectives. Schedule information willfollow soon.

Tom Herringcontinued from page 7-

Controls president. "With this appoinrment, we have completed the job ofnaming our senior leadership team, and

I know we can count on each and everymember of our Integrated Systemsbusiness team to support Tom as wecontinue our locus on meeting ourcustomer commitments."

A native of Long Island, Herringholds a bachelor's degree in business

administration from Hofstra University.He is a member of the Society forInformation Displays, the NavyLeague, the Long Island Forum forTechnology, the American ManagementAssociation, and the Long Island Asso-ciation. Herring, his wife, and their twochildren will relocate to Southern Cali-fornia in the near future.

Published on altennte Wednesday's for BAE

SYSTEMS Cotlttols enq)lolees in Johnson Cin',

N.Y.: Santa Monica cutd Ontario, Calif.; Fort

Wayne, Ind.; and Redntond, Wash. Send cotn-

nrcnts and sltggestiot'ts to Larrv Stone, BAE

SySfEMS, 600 Main Street, Johnson Cit\,, N.y.

13790. Phone (607) 770-3911;.ftt-r (607) 770-

3 5 24 ; lawrenc e.\r. s t one @ bae slsl en$.cont

O 2000 BAE SYSTEI\IS Controls

Insight on the Web: www.cs.lmco.com./news

Proiect Epoch a blueprint for changecontinued from page 1-

SATRN are replaced, and implementa-tion will conclude in the beginning of2003, when the Oracle system goes livein Santa Monica.

"The systems we operate today do a

generally good job of addressing indi-vidual tasks, but without the ability tocoordinate these activities, we're miss-ing out on a big competitive opportu-nity," said Mitch Mitchell, Controls'new vice president of InformationTechnology. But make no mistake,Mitchell advises: Project Epoch is notjust a systems initiative.

"Systems are a key element of howwe will accomplish this transformation,but in many ways they are incidental tothe larger goals we have set," he said."BAE SYSTEMS has set the goal ofbeing a 'benchmark'company, and thatmeans setting and meeting the higheststandards of performance to each otherand to our customers." For Controls, itmeans being able to move fast, commu-nicate seamlessly, implement processes

that are simple and mistake-proof, and

'nsisht

)u'. LO.2OO2 BAE SYSTEMS ContToIs

First hardware for F€5 computer ships(^1ontrol- t.'. JelirereJ rL- t'ir-t I''-l-\-,uarc t, r rlre Joint Srrik.'F:-'.-- -

System Develrrprnent and D:: r:.r:-tion phase. Delirerv of an F--1-' \'--';.:\l:inagenrent Crrmputer b':e .: :rt .

- ,i;heed \lanrn.\eronau: -: r,rr:-::-..:- ' 'ti. - c.luipmcrrl --. . - -- -

- 'irrL tof 3S fr1 . '- ::: -::*- , SDD fhase.

'''r\ - .. - ::,tud to make ii,.. -: : i-tant c.rntriL,uiirtn to the JSF pri ir:r.n.especiallr _sir.en the short tir.ne frame rnwhich this work was contpieted." saidBill Dawson, program mln.rser for ti:eF-35 Vehicle 1\4anagemenr Computer.The breadboard was de.:_gned. fabri-cated, tested. and intc,ci,,:i in set,en

months -

"a signiii.::. .r.tr rhat re-flects the importanc: , .:.. Jclivery to

.. - : -- .,,11'Illr':.T-. - -'::, .,rJ iias

-: .:::'.' i'r -lL-ine t8 to- -...r-i \llrtin Aero-

r:- .-: i;cilitr in Fortti' :,:.. Tcras. rvhere it.'. rrl be used for softwareJ3,'slppnrent. BAE SYS-TE\IS Controls is do'el-trpint the F--l-5's \rehicle\ 1 :in lS.'ment Cr,nt pu ier\ \lC . ,',:- -: :.-:r .:: . The F--li Jt:it'ii S:rire Figlztxr

l. I :l l l- :'I--,, :. .: '' :.. rl .f il ir-li:.)!lS\ il-nl))I.nls equip-

Lnder an SDD contract awarded last\0\ember. Controls rvill build nineL,readboard VN,ICs. 63 engineeringJer elopment VNICs. I 17 flight der e1-

opment VMCs. and 20 engineerinu tesr

stan ds.

Smooth sailingfor Proiect EpochJohnson City's go-live is characterized by calmrFh. Pro ject Epoch term rr atchedI r,i ith pridc us Julv I e rnre unJ u enr

smoothly in Johnson Ciry. "\Vs came inon Monday with a nerv suite of s\ stenrs

and processes and elfectirelt' ran thebusiness seamlessll,.'' said Pat Shannon.director of Business Transformation.

"We shipped product. invoiced ourcustomers. and ran MRP (the newManufacturing Resource Planningsystemt. The nrost imprcssive part \\ilsthe relative calm across the business inacclimating to the new systems andprocesses."

The Help Desk was preparcd tbr a

possible onslaught. but one never carr'le.

Emplovees had questions but. bv rvork-ing to-uether or asking super users fbrhelp. the,r uere able to tlsure out mostol their problems. Barb \\'illiams.,\utoTime super user. said she fieidedmany questions but that everyone \\ as

very patient, making her job mucheasier.

Success was not determined soielvby the calm. seamless transition..\nimprovement over the old systems *asapparent afterjust a couple ol days."DLrring the frrst two davs ol opera-

--utI

- continued on page 2

AE SYSTEMS

2 . lnsight . July 10, 2002

Santa Monica move on trackfor sprinE'O3

Bern lrfson. right, Humnn Resottrces t,ice president in Santaaiuioiiiiii;:itnd Robii Ftavnaa president oJ Crown Reahy &IlevaofAAnt, signthi lease agreement last week.

Epoch launch is smooth sailinE in JCcontinued from page 7 -tions, more than 1.600 AutoTime trans-actions rvere recorded without error:products were shipped and invoicc'd:and more goods were received than had

ever been received during a cornparabletime period in our history." said N{itchMitchell. vice presi-dent of IntbrmationTechnology. "TheEpoch team shouldbe very proud. Nowrve look forward toseeing the transitioncompleted in FortWayne and bringingSanta Monica on

board, makin-s us

truly one business."Project Epoch

began nearly trvoyears ago because olthe need to extricateControls fromLockheed Martinbusiness systems and

services after its salc to BAE SYS-TEMS. Not only did Epoch deiine ne ssystems and processes - iI alst-, create,la map of a// Controls processes. some-

thing that did not erist previously. and

made thenr easilr' ar ailable to the busi-NCSS.

Bet erh Bikos. a Jolutsott ()in, pror:ess specialist, scans a bar cotle into

Oracle ort Juh l u.sirtg orte of set,eral rtewlt'purchused computers.

Compan)- signs 1O-year agreement

for 'Class A olhces in \\ est LAT) elocation of Controls' Santa Monica oiiices to aILn.* lacility in West Los Angeles is on track for spring2003 following last week's signing of a 10-rear lease for the

nerv site.

The company will lease 150,000 square teet of space inthe Wateridge Two building at the northeast corner of LaCienega and Slauson on Los Angeles's West Side. WateridgeTwo, a neu'ly constructed "Class A" office building, was

selected to suit curent and future needs.

Wateridge Two offers such technical amenities as frber-optic infrastructure and "people" amenities including a

stream, hammocks, putting greens, volleyball courts. rnopen-air amphitheater, and covered and uncovered perking.The building contains a total of 200.000 square teet. otteringpotential for Controls to grow its presence. There also are

other buildings on the site lor future growth.With a total r,alue of nearly $48 million. the deal is the

largest oftlce least on the city's West Side to date in 2002"

Controls evaluated some 50 potential sites in greater LosAngeles prior to selecting Watendge.

Videos from G17 eventavailable in JC library\-HS tapes con-teining all threer rJeos shown at

the June 26 C-11100'h aircraftcelebration are

available from the

To borrow a copy,or call Ext. 2589.

Johnson Citl library.stop by the library

Published on dltemote Wedttesdcn's Jbr B,4E

SYSTEMS ControLs enplot,ees in Johnson

Cit,-, N.Y.; Sattct Monica and Ontario, Caltf.;FortWa|ne, Ind.; and Redrnond,Wa.slt. Sentl

comnrcnts and suggestions to Lttrn Storte, BAE.lyS76MS, 600 Main Street, Joltn.soti Cirr; N. ){

I 3790. Plnne (607 ) 770-3911; .la.r (607 ) 770-

-3 5 21 ; I art rence.v,. s tone @ baesl st ems. co nl

O 2002 BAE SYSTEN,IS Controls

Insight on theWeb:u'ww.cs.na.baesystenrs.conliNe$'s

lYateridgeTwo is

bordered by

lllarinaDel Rey,

PlayaVsta, andCttlver Ci4* inllbstlns Angeles.