COPYRIGHT © 1999-2002 RAYTHEON. ALL RIGHTS RESERVED. 2/2002 Raytheon Six Sigma March, 2002.

COPYRIGHT © 1999-2002 RAYTHEON. ALL RIGHTS RESERVED.

2/2002

Raytheon Six SigmaRaytheon Six Sigma

March, 2002

COPYRIGHT © 1999-2002 RAYTHEON. ALL RIGHTS RESERVED.2/2002

Our Knowledge Based Process for Transforming Our Culture to Maximize Customer Value

and Grow Our Business

R6 – Definition


R6 – Focused on Customer Value

R6 – Integrated Improvement Thinking

Traditional Six Sigma

Value StreamCustomer

Value

Defect Reduction

LSL USL


R6 – A Knowledge Based Process

Same Process – Across Our Business

Prioritize

Characterize

Improve

Achieve Commit

Visualize


Bring Values and Goals To Life

R6 – Vision

• Build New Culture– Customer Focus - High Satisfaction– Process and Value Oriented - Eliminate

Waste– Knowledge Based Decisions - All Levels– Empowered/Motivated Workforce - Be

Employer of Choice• Increased Productivity• Growth


R6 – An Integrated Business Strategy

It Defines Our Culture – How We Will Work

Customers

Tools Culture


•Champion: Senior leader who is a primary catalyst for planning and executing R6s deployment within their organization

•Master Expert: Full time, experienced leader who integrates R6s planning, training, mentoring and highly complex projects in their organizations

•Expert: Full-time individual trained to lead complex projects and train/mentor others in R6s activity

•Specialist: Individual trained in basic R6s concepts and productivity improvement skills to transform their work area

•Champion: Senior leader who is a primary catalyst for planning and executing R6s deployment within their organization

•Master Expert: Full time, experienced leader who integrates R6s planning, training, mentoring and highly complex projects in their organizations

•Expert: Full-time individual trained to lead complex projects and train/mentor others in R6s activity

•Specialist: Individual trained in basic R6s concepts and productivity improvement skills to transform their work area

Key R6Roles

Experts

Experts

ChampionsChampions

Specialists

Specialists


How We Get Improvements

Plan & Implement

Plan & Implement

ImprovementPlan

ImprovementPlan

Root Cause Analysis

Root Cause Analysis

“Big-Hitters”“Big-Hitters”

%%Pareto

AnalysisPareto

Analysis

CategoriesCategories

Performance Gap

Performance Gap$$

Goal ProjectedProjected

Achieve & ImproveAchieve & Improve


R6 -- A Continuum of Opportunity

– Everyone– Common Sense– Empowerment

– Specialists– Some Tools– Some Training

and Experience

– Experts– Multi-Disciplined

Tool Set– Lengthy Training

and Experience

Simple Complex

Everyone Can be Involved!


Why is R6s Different?

• Built on Legacy Knowledge & Talent• Combining Tools, Customer Focus and Culture• Passionate Leadership Support• Applies to Every Part of Our Business• Intensive Communication, Education &

Training• Built Into Operational Fabric• Part of Performance Measurement• Focused on Empowerment

Becoming How We Operate Everyday!


Our Scorecard, January 2002

• 28 Master Experts identified• 1036 Experts into training• 890 Experts completed training• 281 Experts certified• 14,667 Specialists in development*• 6,306 Specialists qualified*• 7,000+ Leaders educated• 62,300 People through orientation• $150M in Op Income in 2001• $300M in Cash in 2001

* As of 12/31/01


Raytheon Six Sigma Evolution

Germination– Figure out how to do

R6s– Build an infrastructure

and supporting tools– Get some ground

troops– Have early successes– Prove it works

Institutionalization– Make it ours

Raytheon Language, examples, teachers

– Tool focus to change leadership focus

– Proven, repeatable success across all elements of the business

– Machine-like deployment– Significant financial

results– “It’s the way we do

things”

1999 2000 2000 2001

Optimization– Strategic Leadership

Energized, impatient leaders strategically leveraging R6S in identifying and closing gaps

– A Raytheon competitive advantage

– Integrated thinking– Externally biased, internally

collaborative– Leading edge knowledge

sharing system– Unconscious focus on the

Value Chain

2002 & Beyond


Raytheon Six Sigma – Lessons Learned

• A passionate leader makes all the difference• Involve the entire senior staff

– Train them first– Establish Executive Steering Committees– Measure business success – not functional

• Consultants help – but!– Should have Product Development six sigma

experience– There is a beginning and an end– Ultimately the company must own and grow

it


Lessons Learned (cont’d)

• A centralized “Learning Center” is a plus• Sustain and encourage existing process

improvement activities during launch• Start in Engineering and Operations

simultaneously• Choose your “Experts” (Black Belts) wisely

– The best of the best• Ensure experts are team players

– Avoid elitest environment


Lessons Learned (cont’d)

• Measure sustained impact– Cash– Cycle time– But finish the job

• Leave knowledge behind – very important• Cost avoidance counts• Integrate into your business strategy• Communicate – communicate – communicate • Celebrate – have fun

COPYRIGHT © 1999-2002 RAYTHEON. ALL RIGHTS RESERVED. 2/2002 Raytheon Six Sigma March, 2002.

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Transcript of COPYRIGHT © 1999-2002 RAYTHEON. ALL RIGHTS RESERVED. 2/2002 Raytheon Six Sigma March, 2002.