Lean Journey to Excellence - 65 Years at the Tucson Facility Benchmarking Methods to Optimize Performance. John Martinez Denise Tepe

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1 Lean Journey to Excellence - 65 Years at the Tucson Facility Benchmarking Methods to Optimize Performance John Martinez Denise Tepe

2 MEASUREMENT & FOCUS COMMITMENTS COMMUNICATION RESPONSIVENESS INVOLVEMENT INTEGRATED PRODUCT DEVELOPMENT DEPLOYMENT AGILE MANUFACTURING BUSINESS PROCESS MODERNIZATION ACQUISITION REFORM PROCESS MANAGEMENT ISO 9001 SIX SIGMA DESIGN KNOWLEDGE CENTER COMMUNICATION RECOGNITION TRAINING WORKFORCE DIVERSITY CAREER DEVELOPMENT UNION/MGMT PARTNERSHIP HMSC LIVE SALES RONA EARNINGS WORKING CAPITAL IMPROVEMENT NEW ORDERS Journey to Excellence Best Plant Award Advanced Manufacturing Development Center Lean Enterprise WORLD CLASS IN MISSILE SYSTEMS #1 IN MARKET SHARE LEADER IN FINANCIAL PERFORMANCE Engineering Relocation to Tucson ACHIEVE 100% ON COST, QUALITY AND DELIVERY STRATEGICALLY ALIGNED TEAM BASED VALUED AND INNOVATIVE WORK FORCE A CULTURE OF LEARNING STANDARDIZED PROCESSES AND TOOLS VISION EMBRACED BY ALL EMPLOYEES FOCUS ON PEOPLE DEVELOPMENT CONTINUOUS PERFORMANCE MEASUREMENT EFFECTIVE COMMUNICATION LEADERSHIP THAT WALKS THE TALK IMPROVE CYCLE TIME ON OUR PROCESSES BY 2X PER YEAR CHANGE PROCESS CUSTOMER SATISFACTION COMPETITIVENESS QUALITY REDUCE DEFECTS 2X PER YEAR PEOPLE DEVELOPMENT QUARTERLY ASSESSMENT OF EFFECTIVENESS FINANCIAL PERFORMANCE 100% ACHIEVEMENT ON OUR COMMITMENTS Visioning Team Plant Consolidation Affordable Multi-Missile Manufacturing Program Process Improvement Partnership Factory Agilization Projects Navy Best Practices

3 1998 Agile Metric Averages Cycle Time Improvements up 40 to 92%. Performance to Schedule Improvements up 60 to 100%. Square Footage Reduction Improvements up to 78%. expect great things

4 Best Manufacturing Practice Survey September 1998 Navy Center of Excellence BMP Office 129 Practices Submitted / Reviewed (Largest submittal ever!) 84 Determined Industry Best Practices (Highest rate of selection!) Rick Purcel, leader of Subteam 6 suggests that RMS apply for Industry Week s America s Best Plant award. Benefits From Agile Industry Weekly (Oct 1999) America s Best Plant Award 2004 Recipient of Manufacturing s Most Prestigious Award SHINGOTM PRIZE for EXCELLENCE in MANUFACTURING

5 Journey to Excellence VPP Safety Louisville Automated Test Factories of the Future VPP Safety Tucson Lean Operati ons Factory Managem ent System Total Employ ee Engage ment Back to Basics SAP - Lean Systems & Business Intelligence RMS 7S Digital Manufacturing Camden Shingo Production Interrupt Louisville Shingo

6 1951

7 Hughes Aircraft Company Beginning of Purpose-Driven Excellence in Tucson. Why the Tucson facility was built. Number of employees. The burning platform. The prevailing culture. Improvement technique or method practiced. Challenge, recognition and story.

8 GM purchase of Hughes Aircraft Company Missile Division Why the Tucson facility was purchased. Number of employees. The burning platform. The prevailing culture. Improvement technique or method practiced. Challenge, recognition and story.

9 GM (HMSC) acquisition of General Dynamics Missile Division Why GD Missile Division was acquired. Number of employees. The burning platform. The prevailing culture. Improvement technique or method practiced. Challenge, recognition and story.

10 Raytheon purchases Texas Instruments and E-Systems Why the purchase. The burning platform. The prevailing culture. Improvement technique or method practiced. Challenge, recognition and story. TI s PAVEWAY series smart bombs were first released for use in 1965 and first used in combat 1968.

11 PAVEWAY Laser Guided Bomb An example story of purpose-driven excellence. Beginning of the Precision Avionics Vectoring Equipment. Challenge, recognition and story. Today.

12 GM sale of Hughes Missile Systems to Raytheon Why the Tucson facility was purchased. Number of employees. The burning platform. The prevailing culture. Improvement technique or method practiced. Challenge, recognition and story.

13 Raytheon Missile Systems Committed Leadership. Benchmarking industry better practices. Integrating lean advancements into proven lean deployment process. Identifying opportunities. Challenge. Today

14 Benchmarking One of the Fastest Way to Improvement Definition - Something that serves as a standard by which others may be measured. A management tool aimed at improving the results, processes and products of a given company through the identification of industry better practices. Undefined at the beginning, however, our history has shown it is a standard tool for maintaining our purpose-driven excellence.

15 Public Domain Resources Its Worth Looking Into Definition -The state of belonging or being available to the public as a whole, and therefore not subject to copyright. United States Government. State Government. US Armed Forces. National Science Foundation.

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21 Thank You! Your opinion is important to us! Please take a moment to complete the survey using the conference mobile app. Session No: ThP/52 Lean Journey to Excellence - 65 Years at the Tucson Facility jmartinez@raytheon.com Denise_A_Tepe@raytheon.com