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Keynote Speaker
Wes Kremer
 Vice President
 Air & Missile Defense Systems,
 Missile Systems
 Raytheon Company
Copyright © 2015 Raytheon Company. All rights reserved.
Customer Success Is Our Mission is a registered trademark of Raytheon Company.
Missile Defense:
Rocket Science made
better with Quality
Wes Kremer
Vice President
Air and Missile Defense Systems
February 23, 2015
Copyright © 2015 Raytheon Company. All rights reserved.
Customer Success Is Our Mission is a registered trademark of Raytheon Company.
This presentation contains Non-Technical Data as defined in ITAR 120.10(a)(5)
This presentation contains Non-Technical Data as defined in ITAR 120.10(a)(5)
Overview
 Challenge of Missile Defense
 Flight Test Success
 Supply Chain Performance
Improvement
 Intense Focus on Defect Reduction
 Eliminating Escapes
 Summary
3/31/2015
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This presentation contains Non-Technical Data as defined in ITAR 120.10(a)(5)
Challenges of Missile Defense
 High reliability
 No redundancy
 Single-thread design
 Minimal design margins
 Affordability
Orlando, FL
Our nation has entrusted us with tremendous responsibilities.
We must ensure quality in everything we do, every time.
3/31/2015
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Copyright © 2015 Raytheon Company. All rights reserved.
Customer Success Is Our Mission is a registered trademark of Raytheon Company.
This presentation contains Non-Technical Data as defined in ITAR 120.10(a)(5)
Flight Test Success
Yearly Flight Test
Focus on Quality Makes a Difference
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This presentation contains Non-Technical Data as defined in ITAR 120.10(a)(5)
Supply Chain Performance Improvement
Escapes to RMS - Defect % - Annual Average
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Enabling DataDriven Decisions
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6
5
4
IT
Engineering
Predictable Manufacturing
Execution
Quality
DUE DILIGENCE
• Hold ourselves and
our suppliers
accountable
Instilling
Accountability
Designing and
Verifying Virtually
Operations
Supply Chain
Buying
Strategically
ALIGNED RESOURCES
• Enhanced our cross
functional approach to
supplier management
• Increased effectiveness
of supplier assessments
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ZERO INITIATIVE
• Partnering with our
suppliers to share
best practices and
lessons learned to
eliminate escapes to
our factories
37% Improvement
2
Quality System Data:
1
• Tracks each supplier’s escapes
• Identifies trends in suppliers QMS
• Provides data/recommendations for
Supply Chain decision/actions
A SHARED VISION &
MISSION
• Instilled our vision &
mission, Delivering
Success…
Supplying Quality
Compliant Hardware
On-Time, Every Time
throughout the
integrated supply
chain
58% Improvement
DRIVING RISK DOWN
• Shifting from reactive to
predictive, proactive, and
preventative
• Focusing on subtiers
50% Improvement
0
Quality, Compliant Hardware on-Time, Every Time
Targeting 50%
Improvement
Year over Year
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This presentation contains Non-Technical Data as defined in ITAR 120.10(a)(5)
Intense Focus on Defect Reduction
 Characterize and measure
 Set defect reduction goals
 Determine root cause
 Address systemic issues
 Validate corrective action
Air and Missile Defense Systems
2014 Defects per Unit (DPU) % Reduction
100%
80%
Goal – 35%
60%
40%
20%
Actual – 54%
0%
 2014 DPU percentage reduction goal exceeded
 Yielded reduced cycle time and rework
Defect Reduction Driving Affordability Results
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This presentation contains Non-Technical Data as defined in ITAR 120.10(a)(5)
Eliminating Escapes
 Capture and analyze escapes
 Both internal and supply base
 Characterize and control
special processes
 20 percent of 2014 escapes in
supplier subtiers
2014 Air and Missile Defense Systems
Escapes to the Customer
SPECIAL PROCESS KEY
A special process is one that can’t be verified
after assembly. Variability is characterized
and reduced through deployment of process
quality controls that provide unit-to-unit
consistency and repeatability.
Chemical
Processing-Painting
Sealants
Chemical
Processing-Plating
Electronics
Chemical
Processing-Cleaning
Solder
Torque
Crimping
Welding
Nondestructive
Testing
Bonding
Non Metallic
Materials Testing
PRC-S
PRC-M
TST-PROC
DSN-M
WKM-M
WKM-S
PRC-S
PRC-M
TST-PROC
Supplier Process
Manufacturing Process
Test Process
Mechanical Design
Manufacturing Workmanship
Supplier Workmanship
DSN-M
WKM-M
WKM-S
80% of 2014 Escapes Attributed to Special Processes
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This presentation contains Non-Technical Data as defined in ITAR 120.10(a)(5)
Summary
 We’re making progress and our
data supports it
 Drive improvement across the
supply base and focus on
subtier suppliers
 Relentless pursuit of root cause
in driving out defects
 Control of special processes is
a 2015 focus area
Missile-destroying Exoatmospheric Kill Vehicle
Intercepts Target
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