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Raytheon Six Sigma

Raytheon Six Sigma. March, 2002. Our Knowledge Based Process for Transforming Our Culture to Maximize Customer Value and Grow Our Business. R6 s – Definition. R6 s – Focused on Customer Value. LSL. USL. Traditional Six Sigma. Defect Reduction. Customer Value. Value Stream.

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Raytheon Six Sigma

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  1. Raytheon Six Sigma March, 2002

  2. Our Knowledge Based Process for Transforming Our Cultureto Maximize Customer Valueand Grow Our Business R6s – Definition

  3. R6s – Focused on Customer Value LSL USL Traditional Six Sigma Defect Reduction CustomerValue Value Stream R6s – Integrated Improvement Thinking

  4. R6s – A Knowledge Based Process Visualize Achieve Commit Improve Prioritize Characterize Same Process – Across Our Business

  5. R6s – 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 Bring Values and Goals To Life

  6. Customers Tools Culture R6s – An Integrated Business Strategy It Defines Our Culture – How We Will Work

  7. Specialists Experts Champions Key R6s Roles • 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

  8. Performance Gap $ Pareto Analysis % Goal Projected Categories Achieve & Improve “Big-Hitters” Root Cause Analysis Improvement Plan Plan & Implement How We Get Improvements

  9. Everyone Common Sense Empowerment Everyone Can be Involved! R6 -- A Continuum of Opportunity Simple Complex • Specialists • Some Tools • Some Training and Experience • Experts • Multi-Disciplined Tool Set • Lengthy Training and Experience

  10. 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!

  11. 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

  12. Raytheon Six Sigma Evolution 1999  2000 2000  2001 2002 & Beyond 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” 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

  13. 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

  14. 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

  15. 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

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