Update on Excellence

Raytheon Vision Systems andRaytheon Electronic WarfareOperations, Goleta, CA: ProgressAlong the Journey to Six Sigma,Lean Cultural Change

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Lea A.P. Tonkin

45First Quarter 2003

Somewhere along the line,managers and others get theidea that their formulas for

getting things done are pretty good.Then along comes the idea that aSix Sigma approach integratinglean, quality gains, and culturechange will give the organization amuch better shot at survival. Howdo you go about changing a corpo-rate culture, when the stakes are sohigh and some operations seem tobe working just fine? That's thechallenge facing Raytheon VisionSystems and Raytheon ElectronicWarfare Systems.1 As variousRaytheon folks explained during arecent AME workshop in Goleta,CA, cultural change progress is wellon its way, but the journey will be along one.

Start with StakeholderBuy-In

"We started on this transition in1999,"said John Peyton, Six Sigmachampion for Electronic WarfareSystems at Goleta. "Our manage-ment, including Dan Burnham,chairman and CEO, heard from con-sultants that it takes five to eightyears to change a culture, and thereis no doubt that it takes that long.Managers and others need to beconvinced that there is a better wayto work. Some employees have dis-trust. You can't just say, 'You'reempowered to lean out your area —go and make changes.'"

Change management startswhen you get buy-in from keystakeholders, according to Peyton."You get together with people

involved in a process such as ourTowed Decoy program. Experts sitdown with those affected in a workgroup, discuss the process beingused and its challenges, then whatwe're trying to do — about neededimprovements in the process andwhat those lean changes mean forassociates and the company. Weoften do ad hoc training. Peopleneed to understand and be a part ofsolutions, whether it is creatingdata, proposing alternative processsteps, etc."

Six Sigma Cultural ChangeRaytheon people envision Six

Sigma as a means of improving allprocesses within the organization,and to help the company workmore effectively with customers

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Target Volume 19, Number 1

Figure 1.

and suppliers. Six Sigma guidingprinciples are shown in Figure 1.

This knowledge-based, bureau-cracy-busting process relies oninvolvement by associates in everyarea of the organization. Training,tools, and common sense enable allemployees to analyze and improveday-to-day operations by utilizingtools learned in training and usedon their first project. Specialists areGreen Belts trained in Six Sigmaconcepts and productivity skills(brainstorming and visual planning,etc.). They collaborate with othersto improve processes within theirwork areas/functions, with projectsgenerally lasting up to a month.Raytheon's goal was to have 25,000specialists trained by the end of2002, and the company expected toexceed that number. Experts areBlack Belts armed with multi-disci-plined tool sets plus additionaltraining and experience. They facil-itate cross-functional improvementprojects usually lasting at leastthree months.

How does Raytheon manage-

ment find the right talent for SixSigma experts? "We first look forvolunteers," Peyton said. "We havean evaluation matrix covering lead-ership qualities, change manage-ment focus, etc.; this is part of theircertification process later on, so wewant to ensure success. Then wehave a quick interview with ourgeneral manager and review by ourSix Sigma steering committee."

The Six Sigma specialists andexperts, in turn, follow severalstages for process improvement.The stages include: 1) visualize —create a vision for the future andidentify a need for change, describethe current state, and definegoals/objectives; 2) commit —accept the need for change, gainunderstanding/buy-in related togoals, and define roles for affectedteams/individuals; 3) prioritize —perform an assessment, estimateresults, and identify/prioritizeopportunities; 4) characterize —document current performance(metrics, process flow, critical fac-tors), translate opportunities into a

plan for improvement; 5) improve—design and implement improve-ments with performance metrics;and 6) achieve — deliver measura-ble results, build momentum forchange, and celebrate success. Thetools for each of these stages areshown in Figure 2.

Specialist and ExpertImprovement Projects(Electronic WarfareOperation)

Raytheon Goleta associatesreported a variety of Six Sigmaimprovement projects. For exam-ple, a 2002 Towed Decoy projectshowed that manual recording ofDecoy range test data worked, butwas inefficient. The team devel-oped a computerized data entryprocess for easier data collectionand analysis and got the go-aheadfrom their program office.

Providing a sense of urgencyto Decoy Six Sigma efforts, theircustomer, the Air Force, wantedproduction increased from 150 amonth to 300. After assessing theentire production operations, animplementation team decided tofocus on ISSM (Integrated SolidState Module). Their targets: betterproduct flow, train and implementlean, cross-train personnel, reducewaste, effectively manage cycletime and waste, and reduce over-time. After documenting baselineoperations, they worked with opera-tors for early buy-in on neededimprovements such as simplifiedtime card entries and reduced ISSMpaperwork. Among the changes theyachieved together were single-pieceflow, range charts usage, point-of-use parts storage, and a streamlinedshop floor rearrangement.

Their collaborative effortsresulted in a 46 percent reductionin ISSM WIP, 45 percent decreaseddecoy cycle time, assembly over-

Six Sigma Guiding Principles

1. Specify value in the eyes of the customer.

2. Identify the value stream and eliminate waste/variation.

3. Make value flow at the pull of the customer.

4. Involve and empower employees.

5. Continuously improve knowledge in pursuit of perfection.

Update on Excellence

47First Quarter 2003

time decreased 51 percent, ship-ments consistently reached 300monthly, added capacity was creat-ed, and more than 50 associateswere trained in Six Sigma and leanprinciples and tools. ElectronicWarfare Systems also achieved per-formance gains resulting from addi-tional Six Sigma projects in otherareas such as security clearanceprocedures and cost and scheduleimprovement.

Raytheon Vision SystemsSix Sigma

At Raytheon Vision Systems(RVS) in Goleta, experts racked upsignificant performance gainsthrough Six Sigma. Approximately

950 employees at RVS develop andmanufacture infrared focal planarrays (FPAs) and detective assem-blies. An FPA is the retina within animaging system. RVS's multiplevalue streams include develop-ment, design, materials, wafer pro-cessing, and manufacturing.

Among the broad range of SixSigma projects reported by RVSexperts, variability reduction (VR) isa major theme. For example, VR inThermal Products resulted in imple-mentation of a pull (versus the oldpush) system, better yields (up 120percent), reduced product costs,and other improvements. This wasaccomplished by first training theworkforce and then using a varietyof tools, including process observa-

tion and process mapping.In RVS's FPA assembly opera-

tion, Six Sigma projects led to a"visible factory," daily productionmeetings, daily run rules, and otherchanges (Figure 3). In turn, theyreported reduced WIP (down 50percent), cycle time (WIP/through-put) decreased 50 percent, staticcycle time (average WIP/averagethroughput) decreased 65 percent,and throughput rose 34 percent.The most important result was thatcustomer satisfaction increaseddramatically.

Additional Six Sigma projectsin FPA hybrid assembly and otherareas netted further performanceimprovements. Among their toolswere logical and physical process

Figure 2.

R6σ Right tools for each stage of the process

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Target Volume 19, Number 1

flow analysis, line analysis, base-line evaluations, surveys, affinityanalysis, 5-whys (asking "why" fivetimes when possible NVA processeswere encountered), and visualplanning. Posting metrics in workareas helped to encourage SixSigma enthusiasm.

Solid State Microwave:Predictability is the Nameof the Game

Using 5S visual managementsteps (sort, store, shine, standard-ize, and sustain) and otherimprovement tools, Goleta expertsworking with associates atRaytheon's Solid State Microwave(SSM) facility in El Segundo, CAtransformed their operation to meetcustomer demand that was nearlydouble their capacity in 2000.Challenged by excessive WIP andNVA steps contributing to bulkycycle times, they chose a leanerpath. They established productiontempo based on customer demand,

with standard WIP for all cells.Now associates use range

charts to manage daily production.An Operator Certification Program(OCP) provided training in data col-lection and analysis, enabling oper-ators to certify their own work (andeliminating the need for additionalinspection). They've reduced directlabor costs, as dynamic cycle timesdecreased more than 50 percentand quality performance improved.

Even better predictability per-formance was targeted in 2002,driving higher yields, boostingcapacity, and enhancing perform-ance in direct attach, housingassembly, and test operations aswell as logistics, out-of-productionspares, and other areas. Variabilityreduction efforts included imple-menting a process to monitor cycletime violators ("Dog Pound") in thefirst test operation, as pull systemproduction was extended to sixmore product types. They continueto look for ways to sustain and sur-

pass process improvements, there-by improving customer satisfactionand costs (significant reductions inworking capital, attracting newbusiness, etc.).

People Power

Infrared detector process vari-ability reduction efforts yield morethan faster throughput times andnumbers on charts. Eliminating thecontinual crisis in meeting deliver-ies means less stress for customers,operators, and managers. RaytheonVision Systems reports less attritionand overtime, more specialistsqualified from project-related activ-ities, and they are attracting engi-neers and other associates withneeded skill sets. A weekly SPCroundtable consisting of processowners, process engineers, techni-cians, and line managers bringspeople together for discussionsabout holding the gains. Vision dis-cussion in all-hands meetings, bul-letin board displays highlighting"our vision in action," and postedperformance updates with photosand stories encourage associates'participation in Six Sigma activities.

Aiming for competitive advan-tage through cultural change,Raytheon management under-stands the need for integratedhuman resources processes andsystems. Competency models,focused training, performancemanagement, etc. support a sharedability to change as needed, forlong-term advantage. People needto understand what is expected ofthem and how their performancewill be measured. Internal expertshelp associates document the "cur-rent state" and ways to movetoward a defined "desired state" —better process definition, reducedprocess variation, risk manage-ment skills, measurement andanalysis capabilities, organizationalinnovation and deployment, etc.

Figure 3. FPA manufacturing.

Update on Excellence

49First Quarter 2003

Supplier Teamwork:Signal TechnologyCorporation, KeltecOperation

Effective collaboration withsupplier Signal Technology Corpora-tion, Keltec Operation, Fort WaltonBeach, FL, added to the success ofrecent Raytheon Electronic WarfareSystems’ performance gains andsets the stage for additional per-formance improvement processeswith other suppliers, according toDaryl Combs, a Raytheon Six Sigmaexpert. Keltec, with 200+ employ-ees, manufactures power supplies,amplifiers, and transmitters — ahigh-mix, low-volume structurethat is beginning to move towardshigh-volume business because ofthe successes of Six Sigma con-cepts, said Gil Evangelist, Keltec'svice president of operations.

"We started talking with Keltecin 2001 about ways that Six Sigmacould help reduce cycle time,"Combs said. "Although they hadalready begun utilizing these con-cepts, I was welcomed there, andwe got started on a 5S (housekeep-ing) project as a pilot. The lift theygot from the project was tremen-dous." Volunteers on the first Keltec5S project organized tools in draw-ers and otherwise streamlined theMagnetics Department area, in turncutting the time and travel neededfor operations. Keltec has two SixSigma Green Belts (Evangelist isone) who coordinate the trainingand structure the teams.

Keltec associates also tackleda kaizen project on a specific lowvoltage product that was initiatedby Green Belt training fromLockheed Martin. Their initialprocess map showed many wastedsteps between operations. By elim-inating some unnecessary processsteps and moving equipment toflow the process more efficiently,

operators and others on the kaizenteam reduced travel time from 1650ft. to 468 ft., slashed cycle time from262 minutes to 187 minutes,decreased WIP 23 percent, andeliminated 66 percent of tasks iden-tified as non-value-added (NVA).

"Fortunately for us, DarylCombs comes to assist in our train-ing and our kaizen and 5S proj-ects," said Evangelist. Combs spent28 days at Keltec during five visitsin 2002. "We have had throughputimprovements and cost reductionsin all of these projects," Evangelistcontinued. "The margins have beensteadily improving as we continueto find ways to identify and elimi-nate waste. We are working onimprovement projects in all areas ofthe operation, for example, engi-neering in the bid and proposalstages, design to manufacturing,incoming receiving, purchasing,and also the stockroom. In 2003 wealso plan to target a kaizen event inour marketing department. We willnot limit our improvements to onlythe manufacturing processes."

Next on the improvementagenda, according to Evangelist,will be "a solid year of internalimprovement projects, with per-haps 25 percent of our kaizen and5S projects in partnership with sup-pliers." Keltec's system alreadydefines trends and process prob-lems with their manufacturers.However, should, on-site Six Sigmatraining be required, it will begin inthe near future.

Evangelist offered suggestionsfor other small manufacturing oper-ations starting along the continu-ous improvement path. "In smallercompanies, proceed one step at atime," he said. "Don't try to changeeverything in your plant overnight.Don't take shortcuts. If a kaizenproject is supposed to take fivedays, give your employees the timeto gain understanding, make

changes, and know that manage-ment is listening."

Evangelist said recent per-formance improvements helped theKeltec Operation, a $40 million+company, gain new business."Assistance from Raytheon hashelped us not only improve per-formance in our program with theirdivision, but also helped us toimprove globally as a business,"Evangelist said.

"We are 40 percent of theirbusiness," Daryl Combs said. "Itmakes sense to work towardsimprovements in all areas of theiroperation, not just in one line.Some companies wait until theirbacks are up against the wall beforethey start trying to improveprocesses. At Keltec, it was differ-ent. We are building a stronger rela-tionship over time, looking forlonger-term progress in on-timedelivery and cost. After starting on5S projects, they are going on tomeatier things."

Added John Peyton, "We aregaining their confidence by sharinga process for making change thatworks, to benefit us and them. Inthe long run we will get a better,more competitive, long-term sup-plier. The reason why suppliers areso important to us is that a largeportion of every job from the gov-ernment goes right to our suppliers;we are a design and integrationhouse. It behooves us to attackproblems in our supply base, tohelp our bottom line. We are plan-ning to expand this work with out-side suppliers over time."

More Challenges Ahead

The Raytheon Goleta progressreport is impressive, but muchimprovement work lies ahead,according to Peyton. "Right now weare in the midst of an effort to leansome of our engineering process-

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es," he said. "It's much more diffi-cult to get those people engagedthan factory people. We need toencourage creativity as we extendSix Sigma to other areas of theorganization."

Peyton offered these lessonslearned:

* Create a senior management steering committee for lean andSix Sigma to promote buy-in andinvolvement. A corporate man-date for improvement, combinedwith grassroots participation encouraged among all associ-ates, helped Raytheon achieve dramatic performance gains.

* Develop cross-functional, diverseteaming — engineering, productdevelopment, finance, produc-tion, etc. — for better under-standing and results.

* Look for measurable results, both immediate and longer-term; develop projections of measurable improvements. Make sure finance is representedon process improvement teams;it's very important to tie results

to these projects, or momentumwill fade.

* An infrastructure to support cul-ture change is needed; for exam-ple, train specialists and expertsin Six Sigma concepts (Raytheonwants one percent of employeescertified as experts).

* A Six Sigma champion boosts improvement efforts, facilitatingthe needed training and im-provement activities.

Asked what he'd suggest inthe "do differently next time" cate-gory, Peyton said, "Look for moreshort-term successes. By that Imean that if an initial project w a sscheduled to take three months, Iwould schedule it for a month and ahalf and not allow it to go beyondthree months. There's a danger oflosing enthusiasm and energy ifprojects stretch out.

"We are not yet where we wantto be," Peyton continued. "We wantto make sure that Six Sigma isembedded in our culture, both inter-nally and in our work with key sup-pliers. We've started our journey, butthere is more work to be done."

Editor's note: The hospitality ofRaytheon employees and their assis-tance in the development of this arti-cle are appreciated.

Lea A.P. Tonkin, Woodstock, IL, is theeditor of Target magazine.

Footnote1. With headquarters in Lexington, MA,

Raytheon Company is a global technology

leader in defense, government, and com-

mercial electronics, and business and spe-

cial mission aircraft. Raytheon's Goleta facil-

ities offer design, development, and produc-

tion of electronic warfare and infrared/optical

systems that are deployed on a variety of

combat vehicles, aircraft, ships, and space-

craft. Raytheon Goleta employees total

1850, with annual revenues typically

exceeding $500 million.

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