Raytheon Knowledge Exchange Summit Raytheon Knowledge Exchange Summit Tactical Session

How to Identify a ProjectHow to Identify a Project Getting StartedGetting Started Funding a ProjectFunding a Project Lessons LearnedLessons Learned

Traditional Approach Customer demandCustomer demand Sliding marginsSliding margins Loss of BusinessLoss of Business Increased competitionIncreased competition Crisis Management - reactive vs proactiveCrisis Management - reactive vs proactive

Profit or Loss

Defining Lean “A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection.” The MEP Lean Network

Traditional Lean Progression Tools

Traditional Lean Progression Tools Processes

Traditional Lean Progression Tools Processes Programs

Traditional Lean Progression Tools Processes Programs Objective

Traditional Lean Progression Tools Processes Programs Objective Continuous Improvement

Proven Lean Progression Tools Processes Programs Objective Continuous Improvement

Proven Lean Progression Tools Processes Programs Objective Continuous Improvement

Getting Started -Basic Elements of a Lean Implementation Assess - Diagnose - Benchmark current system / approachAssess - Diagnose - Benchmark current system / approach Develop & ImplementDevelop & Implement –Goal / Objective –Strategy –Plan Program? NOProgram? NO Culture change? YESCulture change? YES

Getting Started - Basic Elements of a Lean Implementation Educate & TrainEducate & Train – –Workforce Development to ensure Lean Transformation – –Employee relations –“ There is nothing training cannot do. Nothing is above its reach. It can turn bad morals to good; it can destroy bad principles and create good ones; it can lift men to angelship” --- Mark Twain

Getting Started - Basic Elements of a Lean Implementation Assess and utilize all available resourcesAssess and utilize all available resources –Internal & External Implement with all hands on deckImplement with all hands on deck Measure ProgressMeasure Progress –Goal / Objective / Strategy / Plan –Make it a way of work life

Getting Started - Basic Elements of a Lean Implementation Sustain the Lean Process through Continual ImprovementSustain the Lean Process through Continual Improvement –Consistently measure and reevaluate –Employee involvement through recognition –Talk-the-Talk vs Walk-the-Walk

Typical Results of Lean 30% productivity increase30% productivity increase 90% work-in-process reduction90% work-in-process reduction 50% space utilization reduction50% space utilization reduction 85% quality improvement85% quality improvement 90% lead time reduction90% lead time reduction

“One of the most noteworthy accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycle. The longer an article is in the process of manufacture and the more it is moved about, the greater is its ultimate cost.” Henry Ford, 1926

Funding a Project Mass. Workforce Training FundMass. Workforce Training Fund –Standard Grant ( $250,000) –Express Grant ( $15,000) N.E. Trade Adjustment Assistance CenterN.E. Trade Adjustment Assistance Center MassMEP Innovation ProgramMassMEP Innovation Program Company = INVESTMENTCompany = INVESTMENT –Min. return of 4 to 1 –Repositioning with your customers & your competition –Investment in your future

Commitment to Change “It isn't easy” “It isn't easy” Determination Determination Commitment Commitment = Rewards

Lessons Learned RaytheonRaytheon –Col. Rodney H.C. Schmidt / DCMA Stonebridge Corp.Stonebridge Corp. –Kerstin Forrester / President Henschel L-3 Communications Inc.Henschel L-3 Communications Inc. –Don Roussinos / President Chase Leather Products Inc.Chase Leather Products Inc. –Larry Walsh / President & CEO