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...specialists, experts, and 50 master experts guiding 76,000 employees to customer success. Raytheon Six Sigma[TM] is now an integral part of the business strategy and is successful because it focuses on achieving success for customers while delivering results for the company. Guarding against complacency, Raytheon leadership ensures that R6[sigma][TM] continues to evolve with the changing needs of the business. This paper highlights how R6[sigma][TM] was used to forge culture of customer focus and productivity improvement that led to higher levels of financial stability and customer success.
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Raytheon's initial focus for Raytheon Six Sigma[TM] (R6[sigma][TM]) was to address debt--the company's Burning Platform. Early on, leadership took ownership of R6[sigma][TM] by creating an initiative that was unique to Raytheon. This early work created ownership for this business strategy and led to investment in R6[sigma][TM] infrastructure and learning throughout the organizations. Soon after R6[sigma][TM] Experts started working projects in the business, teams were delivering results that reduced debt and changed the corporate culture. Raytheon leaders were delighted with these initial success stories and internalized how R6[sigma][TM] could be used to tackle their next set of business challenges and achieve the goals of the organization.
As use of R6[sigma][TM] in the organization became widespread and goals were achieved, a higher level of performance became the expectation. As the bar was raised for business leaders, R6[sigma][TM] needed to raise the bar as well. As a result, businesses increased focus on working R6[sigma][TM] projects with the customer for the customer as well as embedding use of it in product development. The case studies provided later illustrate two examples of projects in these areas.
The fact that the R6[sigma][TM] initiative continues to evolve, and has prospered with a change in Executive Leadership, indicates it is not the program of the day at Raytheon. It continues to be the business strategy of choice.
THE JOURNEY BEGINS
During the 1990s, Raytheon acquired the defense businesses of E-Systems, Hughes Texas Instruments, and others. While adding to the business base, these acquisitions had driven Raytheon's debt to $9 billion by early 1999. It was a business imperative to reduce the debt costs as well as to improve cash flow.
Raytheon initiated Raytheon Six Sigma[TM] in late 1998. It leveraged the best approaches from legacy companies with the vision for Raytheon. Raytheon Six Sigma[TM] was developed by benchmarking other companies and leveraging best practices internally. An internal team, supported by a consortium of external experts, worked to explore approaches and to define a strategy unique to Raytheon. Dan Burnham, who had just become the new CEO, guided the team and planned to bring the company together by embedding Raytheon Six Sigma[TM] into the fabric of the organization. His Vision was to:
* Make customer success a strategic focus for the company. Increase productivity.
* Transform the culture.
* Grow the business.
Figure 1 shows the integrated business strategy that emerged and brings together the following key areas:
* Customer Focus: Customer satisfaction is the top priority. Understand each customer's culture and needs. Focus on activities that add value to their products and eliminate those which do not. Build lasting relationships and anticipate customer needs to achieve a competitive edge. Be the supplier of choice.
* Tools: Identify the constraints and high leverage opportunities through the Business Diagnostic process. Combine the statistical process analysis techniques of traditional Six Sigma with the Lean manufacturing approach to eliminate waste and nonvalue added activity. Provide the right analytical tools for each situation.
* Culture: Transform the corporate culture to embrace a process improvement/ measurement focus, teamwork and empowerment. Shift from valuing functional behavior to adopting a business/customer focus.
[FIGURE 1 OMITTED]
The following important elements were also incorporated into the R6[sigma][TM] deployment strategy:
* Alignment: Ensure company leadership understood and are committed to the R6[sigma][TM] strategy before deploying techniques to the workforce.
* Involvement: Get all company employees informed and motivated. Make R6[sigma][TM] a way of life that touches everyone....
NOTE: All illustrations and photos
have been removed from this article.
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