lean at raytheon missile systems
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Rick Nelson Director, Raytheon Missile Systems
Lean at Raytheon Missile Systems
RMN – RickDallas Page 2
Raytheon Government and Defense Businesses
Raytheon CompanyBill Swanson
Chairman and CEO
Missile Systems
Space & Airborne Systems
Integrated Defense Systems
Network Centric
Systems
Intelligence & Information
Systems
Raytheon Technical Services Company
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Raytheon Missile Systems – Who We Are• 2003 sales: $3.5 billion• 11,000 employees • Headquartered in Tucson, Arizona• World’s largest developer, producer
and integrator of weapon systems– 43% of domestic market; 23% int’l– >1 million missiles produced since 1954
• Broad weapons portfolio– Missiles, Smart munitions, Projectiles,
Kinetic kill vehicles, Directed energy weapons
• Customers: all U.S. military services; Allied Forces of more than 40 countries
• Production business is a mix of new manufacture, re-manufacture, and repair– Twenty three production centers– IAM represented workforce
Firmly positioned as missile industry leader
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The RMS Journey
1994 1995 1996 1997 1998
Engineering Engineering Relocation Relocation to Tucsonto Tucson
Navy BestNavy BestPracticesPractices
Process Process Improvement Improvement PartnershipPartnership
• STRATEGICALLY ALIGNED• TEAM BASED
• VALUED AND INNOVATIVE WORK FORCE• A CULTURE OF LEARNING
• STANDARDIZED PROCESSES AND TOOLS
ACHIEVE 100% ONCOST, QUALITY AND
DELIVERY
• MEASUREMENT & FOCUS• COMMITMENTS• COMMUNICATION• RESPONSIVENESS
• INVOLVEMENT
IMPROVE CYCLE TIMEON OUR PROCESSES
BY 2X PER YEAR
• INTEGRATED PRODUCT DEVELOPMENT DEPLOYMENT
• AGILE MANUFACTURING• BUSINESS PROCESS
MODERNIZATION• ACQUISITION REFORM
REDUCE DEFECTS2X PER YEAR
• PROCESS MANAGEMENT
• ISO 9001• SIX SIGMA DESIGN• KNOWLEDGE
CENTER
QUARTERLYASSESSMENT OFEFFECTIVENESS
• COMMUNICATION• RECOGNITION• TRAINING• WORKFORCE DIVERSITY• CAREER DEVELOPMENT• UNION/MGMT PARTNERSHIP• HMSC LIVE
100% ACHIEVEMENTON OUR
COMMITMENTS
• SALES• RONA
• EARNINGS• WORKING CAPITAL
IMPROVEMENT• NEW ORDERS
CHANGE PROCESS
CUSTOMERSATISFACTION COMPETITIVENESS QUALITY
PEOPLEDEVELOPMENT
FINANCIALPERFORMANCE
• VISION EMBRACED BY ALL EMPLOYEES• FOCUS ON PEOPLE DEVELOPMENT• EFFECTIVE COMMUNICATION
• CONTINUOUS PERFORMANCE MEASUREMENT• LEADERSHIP THAT “WALKS THE TALK”
WORLD CLASS IN MISSILE SYSTEMS• #1 IN MARKET SHARE• LEADER IN FINANCIAL PERFORMANCE
Visioning TeamVisioning TeamFactory Factory
Agilization Agilization ProjectsProjects
Best Plant Best Plant AwardAward
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The RMS Journey
1999 2000 2001 2002 2003
Leveraging AcademiaLeveraging Academia
Plant Plant ConsolidationConsolidation
Leadership TrainingLeadership Training
Industry Industry BenchmarkingBenchmarking
AdvancedManufacturingDevelopmentCenter
Affordable Multi-Missile Affordable Multi-Missile Manufacturing ProgramManufacturing Program
ShingoShingoApplicationApplication
LeanLeanEnterprisEnterpris
ee
Supply Supply Chain Chain AwardAward
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Our Future State
standardization
common
lean
flexible work force
Affordable
highly trained
errors are detected immediately
continuous improvement
Effective
tools offer quick feedback
increasing throughput velocity
Quickmaterial is pulled rapidly
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The Manufacturing Excellence Model
• Developed a roadmap with a competency model architecture… leveraged from other models (LAI-LESAT,CMMI)
• Focus on twenty key elements… fourteen on the manufacturing business cycle and six on organizational foundation
• Designed to foster knowledge
sharing and provide a con-
sistent assessment
criteria– Elements define “well
run operation”
– Organized as roadmap (#1 thru 20)
– Emphasis on lean and customer
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Lean Maturity Models
Traditional companyTraditional company
““Wanting to be lean”Wanting to be lean”
““Trying to be lean”Trying to be lean”
““Being lean”Being lean”
““The best there is”The best there is”
Level 5 is our vision broken down into twenty key elements
Quantitative element & level descriptions support measurement systemQuantitative element & level descriptions support measurement system
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Implemented through a network
• A cadre of senior leaders (70) have been engaged across twenty-three (23) missile systems factories… three to each operation– Operations, Support Engineering, Supply Chain
– Quality Managers and R6s Lead Experts
• Embedded leadership driving for change– Learn, then teach elements and model behavior
• Consultant role: shared accountability with operations leader for improvement– Benchmark assessments and follow-up
– Best practice harvesting
– Organizational learning and development
– Team and individual development Organizational leaders Organizational leaders as consultantsas consultants
Organizational leaders Organizational leaders as consultantsas consultants
EKV Ops MgrEKV Ops Mgr
Strike 6Strike 6 Lead Lead
Test Eng DirTest Eng Dir
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Improvement Accountability
• Driving improvement through common operational metrics– Excellence Score one of nine
common measures for each RMS factory
– Composite average of all 20 elements
– Reported monthly at management review
– Weighted equal with cost, schedule, and quality
Oregon Productivity Oregon Productivity Matrix sets the goalsMatrix sets the goals
Monthly Operations Review Monthly Operations Review tracks progress to goalstracks progress to goals
Goal: Improve 1 point per year across all Operations
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Raytheon Six Sigma
• Initiated as the corporate change engine in 1999
• Provides Master, Green, and Black-belt level employee training and certification
• Focuses on three key elements of improvement – culture, tools, customer
• Provides the resources that enable the improvements that close the gap to the desired state
Lean Ÿ Quality Ÿ Safety Ÿ Customer
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Aligning A Large Organization
OperationsOperations ProductProductLineLine
RMSRMS
FactoryFactory
Dual OrganizationalDual OrganizationalAccountabilityAccountability
Shared EnterpriseShared EnterpriseVisionVision
CommunicationCommunicationForumsForums
LeadershipLeadershipTrainingTraining
Monthly OperationsMonthly OperationsReviewsReviews
Annual RecognitionAnnual RecognitionFor Top PerformersFor Top Performers
Shared and Shared and Collaborative GoalsCollaborative Goals
Common MetricsCommon Metrics
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1.30
1.03
145%
97%
Weighted Score
STRIKETomahawkTomahawkPavewayPavewayJ SOWJ SOWHARMHARMMaverickMaverickACMACM
Strike Customer Focus MetricsCurrent As Of October 30, 2003
0.85
0.90
0.951.00
1.20
1.40
1.600.85
0.90
0.951.00
1.20
1.40
1.60
SPI
0.80
0.85
0.900.95
1.00
1.05
1.100.80
0.85
0.900.95
1.00
1.05
1.10
CPI
40%
60%
80%100%
120%
140%
160%40%
60%
80%100%
120%
140%
160%
Bookings
76%
80%
84%88%
92%
96%
100%76%
80%
84%88%
92%
96%
100%
MOCAS
5%
0%
71%
5%
19%
Program Indicator (CPARs)Business Review
Processes
• MetricsMetrics• Management Management
engagementengagement• Customer Customer
satisfactionsatisfaction
Our “Systems Approach” To Improvement
CustomerFocused
Marketing
• PerformancePerformance• RelationshipsRelationships• SolutionsSolutions
Integrated Product Development System
• ProcessProcess• PlanningPlanning• Risk ManagementRisk Management
RMSPrinciples of
Manufacturing• LeanLean• SpeedSpeed• FlexibilityFlexibility
RMSManufacturing
ExcellenceModel
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Manufacturing Excellence Model Lessons Learned
• Leadership must be committed and have a vision of the future
• The model must be your own… built around your own culture of change
• Apply a whole systems approach… aligning initiatives and infrastructure
• The model must be flexible, and rigid, to accommodate both the similarities and differences in the organizations
• The “must have’s” need to be defined (i.e. scoring system, run rules, focus areas)
• Mature the model as your organization matures