On March 20, 2003, a salvo ofTomahawk cruise missiles thun-dered into a city in the desert —sending an ultimatum and ignitinga war. Half a world away, a group ofLean Six Sigma Black Belts likewisethundered into a city surrounded bythe desert — sending a promise andigniting ideas. The commonalitybetween the two groups was theRaytheon Missile Systems (RMS)Company, birthplace of theTomahawk cruise missile weaponssystems and host to a LeanEnterprise Six Sigma initiative.Participants in the AME "LeanRoadmap for Success" RMS work-shop in Tucson, AZ came from asfar away as Cheshire, CT and asclose as San Jose, CA, with addedattendees from Midwestern andSouthern states and other areas.We were gathered to hear, see, andlearn how to implement lean andSix Sigma tools in alignment toimprove operational excellence ofRMS. The missiles hailed fromTucson and were delivered to

Baghdad, in spades.Our host company, Raytheon,

is a global technology leader indefense, government, and commer-cial electronics business and spe-cial mission aircraft with annualsales at more than $16.8 billion andheadquartered in Lexington, MA.The Tucson facility we visited dur-ing the workshop was the 3.5 mil-lion sq. ft. RMS airport site withapproximately 11,000 employees.

The main speakers were fromRaytheon: Lean Enterprise ManagerJim Strickland, Six Sigma MasterExpert Gary Cotten, Director-Operations Rick Nelson, PavewayOperations Manager Pat McKinney,Six Sigma Master Expert JulieGoswick, and Six Sigma ExpertSusan Turcotte with guest customerspeaker Lieutenant CommanderMike Ladner, U.S. Navy. They high-lighted Raytheon's eight-year jour-ney to become a Lean Six Sigmacompany. It was exciting to hearfrom the presenters and fellow par-ticipants about their successes and

failures using lean and Six Sigmatools.

Many examples of their SixSigma applications showed the par-ticipants simple and effective tech-niques to use in the office and shopenvironments to improve theprocesses. An example in the shopwas the flexible utilities grid andwork stations throughout theirfacilities. These grids included shopair, electric, phone, WAN (WideArea Network), and vacuum lines.The work stations are veryadjustable and mobile; rearrange-ment took only one day! Thisincreased flexibility reduces floorspace and saves time. Increasedproductivity and employee satisfac-tion are the results.

Office Lean

In the office environment, leanbusiness practices experienceswere shared by Six Sigma MasterExpert Julie Goswick. She discussedthe Raytheon Six Sigma Principles

Roadmap for Success —Raytheon Missile Systems(RMS) Company, Tucson, AZProgress in lean and Six Sigma systems.

Mike Chan

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55Fourth Quarter 2003

(the company's knowledge-basedprocess to improve customervalue): 1) Specify value in the eyesof the customer; 2) identify valuestreams, eliminate waste and varia-tion; 3) make value flow at the pullof the customer; 4) involve, align,and empower employees; and 5)continuously improve knowledgein pursuit of perfection.

She also described the seventypes of waste, which apply to bothoffice and factory environments(called COMMWIP):

1. Correction caused by incorrectdata entry

2. Overproduction — preparing reports, not acted upon; multiple copies and data storage

3. Material movement — extra steps/travel distance in the process

4. Motion talent of personnel — excessive paperwork, steps/dataentry, multi-tasking (such as working on more than one task at once, which leads to longer cycle times and lossof productivity across all projects)

5. Waiting — processing monthly,not as the work comes in (closings), multi-tasking

6. Inventory — transactions not processed

7. Processing — signoffs, inter-preting and reporting useless information.

Goswick offered several hintsfor process improvement — funda-mental to office lean: Identify valueor value propositions (that is, theproduct being delivered); sift cus-tomer value from the supportingvalue (differentiate between thetrue value-added product and theenabling process or product value);identify value-added (VA) and non-value-added (NVA) activities, start-

ing with processes that deliver cus-tomer value first and then deter-mining the constraints to valuedelivery; work to redesign process-es for flow and robustness (self-governing, self-contained); maxi-mize customer value; increase sup-porting value; eliminate NVA.

The detailed process is: 1) Definethe value proposition, design thevalue package and delivery systemto ensure that you are producingand delivering the desired outcome,supply materials and information,fashion or produce desired materi-als and information, and deliver thevalue package. Goswick explainedthat determining the "managementsystem" for the new processinvolves identifying key measure-ments (frequency, targets), deci-sions that must be made to controlthe process, and courses of actionfor measured results.

Some lean improvement toolsused by Raytheon in the office envi-ronment are: value stream analysis,

physical mapping, time-value map-ping, kaizen blitz, benchmarking,constraint management and criticalchain project management, reducedlot sizes, visual controls, error proof-ing, andon systems, level schedules,line balancing, process controls,setup reduction, pull systems, andworkplace organization.

"The application of Six Sigmato the business processes repre-sents a powerful step in the transi-tion to a lean enterprise," said JulieGoswick. "The fundamental con-cepts of lean can apply to everyprocess, whether production, engi-neering, business, or transactional.Performance excellence is achievedwhen every process is focused ondelivering value to our ultimatecustomer." An example providedduring the event was utilizing criti-cal chain project managementwhich ensured timely and costeffective implementation of Tucson'sSAP system.

Figure 1. Among the Raytheon workshop presenters were, left, to right: Rick Nelson, JimStrickland, Susan Turcotte, and Gary Cotten.

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Target Volume 19, Number 4

What is KnowledgeManagement (KM) atRaytheon?

Susan Turcotte, a Raytheon SixSigma expert, described knowledgemanagement (KM) as "the proac-tive management of systematicprocesses that create, capture,share, and reuse knowledge withinthe company." Knowledge is a veryspecial kind of resource — when it'sused, it's not used up. However,over 80 percent of our knowledge isnot documented or shared. We allhave aging employees. As theyretire, this knowledge leaves withthem. How can we help our compa-nies to retain this knowledge?

The KM process in the RaytheonSix Sigma system encompassesthese steps: 1) Capture (search),learn from others; 2) share (docu-ment), abstract our knowledge; 3)reuse/leverage our knowledge; 4)create knowledge-based manage-ment information; 5) redo steps onthrough four. Some success storiesfrom Raytheon's KM Projects at RMSranged from retaining corporatememory to communities of practiceinfrastructure for engineering, defectprevention through knowledge shar-ing, and capturing best practices for(25) factories within RMS.

Turcotte noted as a KM exam-ple that Raytheon Missile Systemshas kicked off informal communi-ties of practice (CoPs) in engineer-ing. "A Six Sigma team created theinfrastructure to support a processwhereby any employee can set up aCoP by getting sponsor approval(so as not to duplicate CoPs and toensure the topic is business relat-ed)," she said. "Then the interestedparty completes a form and sends itto the steering committee wherebythe KM champion (Turcotte) actual-ly registers the CoP in our new RMSportal — KM Toolset. This is a pow-erful portal that shows all regis-

tered CoPs, describes what they'reabout, who are the CoP leaders(point person), when and wherethey meet, and allows for interestedpersons to register themselves as amember and attend. These are usu-ally held during the lunch hour andoftentimes, lunch is provided.Because these are informal, there isno deliverable. It's a way to encour-age networking and knowledgesharing about work-related topicsand is strictly voluntary. We discov-ered that there were many alreadyin existence and we piloted ourprocess on those groups. The RMSportal is a great way to have onelocation to list all of the CoPs andraise awareness for participation."

In the near future, RMS willexpand this process to all employ-ees because the CoPs are for thebenefit of everyone and the compa-ny, Turcotte added. She is workingwith Bill Baker, Raytheon's knowl-edge transfer and benchmarkingchampion, and the AmericanProductivity and Quality Center(APQC) to develop a structure forformal CoPs with deliverablestraced to the bottom line.

Raytheon has embedded moreof the processes of acquiring newknowledge in the actual doing ofthe task and less in formal trainingprograms. They have created aManufacturing Excellence Websitewhich is used to communicateknowledge-based information. It isused for all keys in their RMSManufacturing Excellence model.

Key steps in creating effectiveKM practices at Raytheon include:

• Process: Create a KM process. Assess your business for knowl-edge sharing gaps; encourage and support your staff to followthe KM process.

• People: Appoint a KM team. Identify communities of practiceand subject matter experts.

• Enabling environment: Recognize individuals and teams for knowledge sharing and application. Be a role modeland an advocate.

• Tools: Develop a KM website orportal to "search" for knowledgeto connect people to needed information.

RMS people have learned thatculture shifts when different behav-iors are taught, coached, supported,and rewarded. Some very impor-tant lessons learned are: Don't starta KM discipline without leadershipsupport; assemble a team/steeringcommittee to develop the infra-structure and processes; advertiseyour company's successes and thevalue that comes from sharingknowledge; and begin KM applica-tion with a manageable group. "Ourmanageable group is the RaytheonSix Sigma Expert community mak-ing sure that they researched forexisting projects before starting anew one — documenting the proj-ect process and lessons learned,"Turcotte said. "After getting thiscommunity integrated with KM, nowwe're expanding into engineeringoperations and other areas."

One Customer's Testimonial

From a customer perspective,Lieutenant Commander MikeLadner, Standard Missile TechnicalRepresentative, spoke on howRaytheon and the U.S. Navy have ajoint mission to design, build, field,

Update on Excellence

RMS people have learned

that culture shifts when different behaviors are

taught, coached, supported,

and rewarded.

57Fourth Quarter 2003

and maintain the finest surface toair missiles in the world. Hestressed the importance of provid-ing safe, effective, and affordablemissiles to the fleet. He said, "If wefail, they don't come home!" TheSM TechRep fully embracesRaytheon's Six Sigma process tomake the program more productiveand cost effective. By using toolstaught through Six Sigma training,the government and Raytheon canoptimize processes, change cul-tures, and improve communica-tions that will greatly improve theability to achieve mission success.The TechRep Office's governmentpersonnel have all completed spe-cialist training with 14 major proj-ects completed and have the firstNavy customer to achieve Experttraining status.

From a Key Supplier'sPerspective

Ed Peterson, Six Sigma MasterBlack Belt from Aerojet, a major sup-plier of missile components andarmaments to Raytheon, spoke aboutthe benefits of Lean Six Sigma toolsand principles. He shared the presen-tation, "What we have learned fromthe Raytheon Six Sigma System:"

1. Leadership. Without a strong executive leader, you are just playing in the technology; broad-based change is not possible; use the "burning platform" technique (an urgentreason to provide for change).

2. Organization and Plan. Figure out how you will implement orroll out the program; find a structured methodology for application; create the dedicat-ed organization to carry it for-ward; and identify barriers, particularly in management.

3. Gemba. Go see "the shop" where improvements happen;see what others are doing,

proving the case for those implementing the technical solution and making the case for buy-in; customers (Raytheon)can be an invaluable resource.

4. Alignment. Constant executivecommunications are essential;metrics and accountability aredrivers of change.

5. Training. Technical skills are the easiest to achieve. Ed Peterson said, "For those first-time projects, you've got to take that leap of faith!"

Raytheon Six SigmaTraining

Gary Cotten, Raytheon SixSigma Master Expert, presented theRaytheon Six Sigma training model.They have a three-tier structurestarting with the top tier of Masters(Champions) followed by Experts(Black Belts) and a broad base levelof Specialists (Green Belts). EachExpert (Black Belt) level trains inLean Six Sigma tools one weekeach month for five months. Theyall work full-time on significantprojects that impact their business

in quality, delivery, and cost. TheSpecialists (Green Belts) work onprojects in their assigned work areaat the direction of the Experts(Black Belts). Their objective is towork on Six Sigma projects that willmove the needle in increased pro-ductivity and delivery performance,reduced costs, and the eliminationof variation in the process.

The Masters' (Champions)purpose is to work with senior lead-ership teams on strategy anddeployment of Six Sigma. They arealso the coaches, trainers, andmentors for the many full-timeExperts (Black Belts) in the organi-zation. The Experts work at theplant-level assignments with siteleaders and staff to set product linegoals and areas for improvement.These are high-impact projectswhich they helped mentor, run, andimplement with the Specialists(Green Belts.) The Experts teach theprocess owners "how to fish." TheExperts are the backbone of theprocess because they are responsi-ble to coach teams and to leadthem to improve their processes.

Update on Excellence

Figure 2. Trent Deem, project engineer, Ram Company, Saint George, UT was among workshopparticipants; a "things that went well" list is shown.

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Target Volume 19, Number 4

Update on Excellence

What is in the RaytheonSix Sigma Tool Box?

Gary Cotten explained that RMSuses an extensive set of Six Sigmatools. They include: analyses (the fiveWhys, or asking "Why?" five times;fishbone diagrams; affinity diagrams;reality trees; spaghetti charts; Paretocharts; capacity analysis; brain-storming; time value; and matrixweighting [a tool to mathematicallyprioritize options]); quality improve-ment design of experiments (DOE),design for manufacture (DFM), qual-ity function deployment (QFD),FMEA (failure mode and effectsanalysis), DFSS (design for SixSigma), SPC (statistical process con-trol), 5S (sort, store, shine, standard-ize, and sustain), kaizen blitz, bench-marking, JIT (just in time), criticalchain (a method of applying theoryof constraints concepts to projectscheduling), and point of use inven-tory; lean tools (process mapping,waste reduction, theory of con-straints, pull systems, level loading,workplace organization, parts pres-entation, reduced batch sizes, errorproofing, setup reduction, visualcontrols, andon systems, SMED (sin-gle minute exchange of die), takttimes, containerization, materialshandling, ergonomics, and TPM(Total Productive Maintenance);leadership direction (budgeting,resource allocation, financial analy-ses, project management, and strate-gic planning); people involvement(teaming, coaching, mentoring,change management, training, andleadership development).

So what distinguishes RaytheonSix Sigma? Why are they so suc-cessful? What can we learn fromtheir experience? As Gary Cottennoted, "Raytheon's Six SigmaProgram is a knowledge-basedprocess that focuses on the cus-tomer, culture, and tools. Lean con-cepts and principles have been an

integral part since its conception —and apply to all parts of the busi-ness. We have used it in non-man-ufacturing applications such aslegal, financial, and contractingorganizations as well as in manu-facturing. Dan Burnham, our CEO,walks and talks Six Sigma and pro-vides leadership support, addingthat it "will allow us to become themost productive competitor inevery industry we are in."

Here are some of the addition-al keys to their success:

• Built on a legacy of knowledge and talent

• Combines tools, customer focus, and culture

• Passionate leadership support• Applies to every part of the business• Intensive communication, edu-

cation, and training• Built into the operational fabric.

"It's becoming the way we operatein our everyday culture!"

Continuing Progress

"Although we have made greatprogress in our lean and Six Sigmaefforts, the AME workshop gave usadditional insight into how we cancontinue to improve," Cotten said."Thanks to AME and the workshopparticipants for helping us to see our-selves from a different perspective."1

Raytheon Missile Systems istruly a "world-class" manufacturingcompany and is well on its journeyto Lean Six Sigma excellence. Wecan learn from their successful

examples and avoid the pitfalls thatthey have encountered during theirfailures throughout their eight-yeardevelopment of their Raytheon SixSigma System.

Editor's note: Thanks to the folks atRaytheon Missile Systems for sharingtheir success stories and experiences.

Mike Chan is the director-LeanEnterprise, Rockwell AutomationControls Systems and he is the leaderof the lean enterprise drive inRockwell Automation ControlsSystems. He was among theRockwell Automation presenters dur-ing the October 2003 AME annualconference in Toronto, Canada.Rockwell Automation ControlsSystems is part of RockwellAutomation Inc. Together withRockwell Power Systems, they makeup $4.5 billion in sales covering (36)plus manufacturing sites through outthe world.

Footnote1. Gary Cotten of RMS, asked about "les-sons learned" at the workshop, said, "Iwould recommend assessing the audienceat the beginning of the workshop to under-stand their level of knowledge, allowing thepresenters to tailor their presentations tobetter align with the needs of the audience."Noting the high ratings of plant tours in feed-back ratings, he added, "It is much easier fora participant to understand the conceptsbeing presented when they can personallyexperience the process and interact with andlearn from the process owners."

As Gary Cotten noted, "Raytheon's Six Sigma Program is

a knowledge-based process that focuses on the customer,

culture, and tools. Lean concepts and principles have been an integral part since its conception — and apply

to all parts of the business."

© 2003 AME® For information on reprints, contact:us at 847/520-3282 or www.ame.org

59Fourth Quarter 2003