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Lean at Raytheon Missile Systems


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Lean at Raytheon Missile Systems

  1. 1. Rick Nelson Director, Raytheon Missile Systems Lean at Raytheon Missile Systems
  2. 2. Raytheon Government and Defense Businesses Raytheon Company Bill Swanson Chairman and CEO Missile Systems Space & Airborne Systems Integrated Defense Systems Network Centric Systems Intelligence & Information Systems Raytheon Technical Services Company
  3. 3. Raytheon Missile Systems – Who We Are <ul><li>2003 sales: $3.5 billion </li></ul><ul><li>11,000 employees </li></ul><ul><li>Headquartered in Tucson, Arizona </li></ul><ul><li>World’s largest developer, producer and integrator of weapon systems </li></ul><ul><ul><li>43% of domestic market; 23% int’l </li></ul></ul><ul><ul><li>>1 million missiles produced since 1954 </li></ul></ul><ul><li>Broad weapons portfolio </li></ul><ul><ul><li>Missiles, Smart munitions, Projectiles, Kinetic kill vehicles, Directed energy weapons </li></ul></ul><ul><li>Customers: all U.S. military services; Allied Forces of more than 40 countries </li></ul><ul><li>Production business is a mix of new manufacture, re-manufacture, and repair </li></ul><ul><ul><li>Twenty three production centers </li></ul></ul><ul><ul><li>IAM represented workforce </li></ul></ul>Firmly positioned as missile industry leader
  4. 4. The RMS Journey 1994 1995 1996 1997 1998 Engineering Relocation to Tucson Navy Best Practices Process Improvement Partnership Visioning Team Factory Agilization Projects Best Plant Award
  5. 5. The RMS Journey 1999 2000 2001 2002 2003 Leveraging Academia Plant Consolidation Leadership Training Industry Benchmarking A dvanced M anufacturing D evelopment C enter Affordable Multi-Missile Manufacturing Program Shingo Application Lean Enterprise Supply Chain Award
  6. 6. 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 Quick material is pulled rapidly
  7. 7. The Manufacturing Excellence Model <ul><li>Developed a roadmap with a competency model architecture… leveraged from other models (LAI-LESAT,CMMI) </li></ul><ul><li>Focus on twenty key elements… fourteen on the manufacturing business cycle and six on organizational foundation </li></ul><ul><li>Designed to foster knowledge </li></ul><ul><li>sharing and provide a con- </li></ul><ul><li>sistent assessment </li></ul><ul><li>criteria </li></ul><ul><ul><li>Elements define “well run operation” </li></ul></ul><ul><ul><li>Organized as roadmap (#1 thru 20) </li></ul></ul><ul><ul><li>Emphasis on lean and customer </li></ul></ul>
  8. 8. Lean Maturity Models Traditional company “ Wanting to be lean” “ Trying to be lean” “ Being lean” “ The best there is” Level 5 is our vision broken down into twenty key elements Quantitative element & level descriptions support measurement system
  9. 9. Implemented through a network <ul><li>A cadre of senior leaders (70) have been engaged across twenty-three (23) missile systems factories… three to each operation </li></ul><ul><ul><li>Operations, Support Engineering, Supply Chain </li></ul></ul><ul><ul><li>Quality Managers and R6s Lead Experts </li></ul></ul><ul><li>Embedded leadership driving for change </li></ul><ul><ul><li>Learn, then teach elements and model behavior </li></ul></ul><ul><li>Consultant role: shared accountability with operations leader for improvement </li></ul><ul><ul><li>Benchmark assessments and follow-up </li></ul></ul><ul><ul><li>Best practice harvesting </li></ul></ul><ul><ul><li>Organizational learning and development </li></ul></ul><ul><ul><li>Team and individual development </li></ul></ul>Organizational leaders as consultants EKV Ops Mgr Strike 6  Lead Test Eng Dir
  10. 10. Improvement Accountability <ul><li>Driving improvement through common operational metrics </li></ul><ul><ul><li>Excellence Score one of nine common measures for each RMS factory </li></ul></ul><ul><ul><li>Composite average of all 20 elements </li></ul></ul><ul><ul><li>Reported monthly at management review </li></ul></ul><ul><ul><li>Weighted equal with cost, schedule, and quality </li></ul></ul>Oregon Productivity Matrix sets the goals Monthly Operations Review tracks progress to goals Goal: Improve 1 point per year across all Operations
  11. 11. Raytheon Six Sigma <ul><li>Initiated as the corporate change engine in 1999 </li></ul><ul><li>Provides Master, Green, and Black-belt level employee training and certification </li></ul><ul><li>Focuses on three key elements of improvement </li></ul><ul><ul><li>culture, tools, customer </li></ul></ul><ul><li>Provides the resources that enable the improvements that close the gap to the desired state </li></ul>Lean Ÿ Quality Ÿ Safety Ÿ Customer
  12. 12. Aligning A Large Organization Operations Product Line RMS Factory Dual Organizational Accountability Shared Enterprise Vision Communication Forums Leadership Training Monthly Operations Reviews Annual Recognition For Top Performers Shared and Collaborative Goals Common Metrics
  13. 13. Our “Systems Approach” To Improvement Business Review Processes <ul><li>Metrics </li></ul><ul><li>Management engagement </li></ul><ul><li>Customer satisfaction </li></ul>Customer Focused Marketing <ul><li>Performance </li></ul><ul><li>Relationships </li></ul><ul><li>Solutions </li></ul>Integrated Product Development System <ul><li>Process </li></ul><ul><li>Planning </li></ul><ul><li>Risk Management </li></ul>RMS Principles of Manufacturing <ul><li>Lean </li></ul><ul><li>Speed </li></ul><ul><li>Flexibility </li></ul>RMS Manufacturing Excellence Model
  14. 14. Manufacturing Excellence Model Lessons Learned <ul><li>Leadership must be committed and have a vision of the future </li></ul><ul><li>The model must be your own… built around your own culture of change </li></ul><ul><li>Apply a whole systems approach… aligning initiatives and infrastructure </li></ul><ul><li>The model must be flexible, and rigid, to accommodate both the similarities and differences in the organizations </li></ul><ul><li>The “must have’s” need to be defined (i.e. scoring system, run rules, focus areas) </li></ul><ul><li>Mature the model as your organization matures </li></ul>