The Emerging Quality Value Proposition Mike Costas Vice President, Quality & Mission Effectiveness Raytheon Missile Systems CQSDI* 3 March 2008 *CQSDI – Conference of Quality in Space and Defense Industries, Cape Canaveral, Florida. Copyright © 2008 Raytheon Company. All rights reserved. 80127A_r004 Page 1 Customer Success Is Our Mission is a registered trademark of Raytheon Company. Raytheon Company Business Content Raytheon Company Bill Swanson Chairman and CEO Missile Systems Space & Airborne Systems Integrated Defense Systems Network Centric Systems Intelligence & Information Systems Raytheon Technical Services Company Louise Francesconi 80127A_r004 Page 2 Raytheon Missile Systems – Who We Are 2007 sales: $5.0 billion 12,000 employees Headquartered in Tucson, Arizona World’s largest developer, producer and integrator of weapon systems – More than 1 million missiles produced since 1954 Broad weapons portfolio – Missiles – Smart munitions – Projectiles – Kinetic kill vehicles – Directed energy weapons Customers: All U.S. military services; allied forces of more than 40 countries 80127A_r004 Page 3 How Did We Get Here Prior to the 90’s – Hughes Maverick AMRAAM TOW Mid 1990’s – General Dynamics Tomahawk ACM Stinger Standard Missile Phalanx Sparrow RAM 1997-98 – Texas Instruments/Raytheon Paveway JSOW HARM Targeting ERGM Javelin Today – Raytheon EKV Sidewinder NLOS KEI Excalibur MRM Advanced PGM’s Active Denial SDBII MALD™ More than 1 million missiles produced and 26 major production programs 80127A_r004 Page 4 Missile Systems Footprint NAPI, New Mexico Rancho Cucamonga, California Missile Systems Headquarters Tucson, Arizona Louisville, Kentucky Camden, Arkansas Huntsville, Alabama 5.2 million square feet 80127A_r004 Page 5 Quality Evolution Quality Management System Evolution 1947 1960 1987 1994 1996 1999 2000 2004 2007 MAP AS9100 ISO ISO 9001:1987 ISO 9001:1994 ISO 9001:2000 MIL-Q-9858 (1959) MIL- I- 45208 (1960) International Organization International Organization for Standardization for Standardization ISO 9001 ISO 9001 Quality is a “Management System” Quality is a “Management System” which focuses on customer requirements which focuses on customer requirements MIL-I / MIL-Q MIL-I / MIL-Q Quality is technical, “end of the pipe” discipline Quality is technical, “end of the pipe” discipline AS9100 AS9100 ISO + Aerospace Industry Requirements ISO + Aerospace Industry Requirements Missile Defense Agency Assurance Provisions Missile Defense Agency Assurance Provisions Safety, Quality, Mission Assurance for safety Safety, Quality, Mission Assurance for safety and mission critical items and mission critical items The TheEvolution Evolutionof ofQuality Quality Management ManagementSystem System Establishes “Higher Level” Establishes “Higher Level” Of Requirements Of Requirementsfor forthe theAerospace AerospaceIndustry Industry 80022A_1_080107 Page 12 Copyright © 2008 Raytheon Company. All rights reserved. 80127A_r004 Page 8 Future of RMS Quality Eliminating waste and managing risk New Vision New skills New organization Addressing our customer’s needs 80127A_r004 Page 9 2008 Q&ME Areas of Emphasis 1 Constantly Energize the Organization Through Innovation • Execute D2010 • Factory of the Future • Netting Q&ME 5 Engaging the Total Product Lifecycle 2 • Full Time Proposal Support • Up Front Customer 4 Strong Business Acumen to Protect Independence • EAC Process Enhancements to Drive Accountability • Margin Improvement Initiatives • • • • Q&ME 5 Year Strategic Plan Engagement • Shaping Design Definition With Data • Embedded Mission Assurance 3 Drive Continuous Enterprise Health Management and Improvement Systemic Issue Resolution CMMI Level 5 Early Risk Elevation “Finding the weak link” Focus On Talent Acquisition and Professional Development • • • • Competency Model Leadership Development Succession Planning Systems Engineering Growth The Quality Value Proposition 80127A_r004 Page 10 The Emerging Quality Value Proposition • Design for producibility • Process health monitoring • Seemless integration of • Inspections and audits supplier partners On the move from… inspection and audits… to a future where... Quality shapes producible designs Embedded Mission Assurance Guarantees Customer Success 80127A_r004 Page 11 From the dedicated people in our business… To the Streets of Iraq… Maverick Copyright??? Break-Out Session