Original Date: 05/01/2000
Revision Date: 01/18/2007

In the early 1930s, William J. Halligan founded the Hallicrafters Company in Chicago, Illinois. The company built handcrafted amateur radio receivers with state-of-the-art features at an affordable price. By 1938, Hallicrafters was the most popular manufacturer of communications receivers in the U.S. and 89 other countries. During World War II, many of Hallicrafters’ products were pressed into service due to a shortage of military radio equipment. The company geared up for wartime production, and was responsible for many new designs and innovations (e.g., HT-4). After the war, Hallicrafters started a new line of consumer electronics including radio phonographs, AM/FM receivers, clock radios, and televisions. The 1950s were the most successful years for the company. Many of its amateur radio products became classics including the HT-32 and the SX-101. Much of this equipment is still used today and sought after by nostalgia buffs and collectors.

In 1966, Northrop Corporation bought Hallicrafters and moved it to Rolling Meadows, Illinois. Here, the new subsidiary’s main function was to produce para-military equipment and electronic countermeasures systems for Northrop. In 1974, the site was designated as Northrop’s Defensive Systems Division (DSD) and renamed Northrop Grumman after the 1994 merger with Grumman Aerospace Corporation. Today, Northrop Grumman is a leading designer, systems integrator, and manufacturer of military surveillance and combat aircraft; defense electronics and systems; airspace management systems; information systems; marine systems; precision weapons; space systems; and commercial and military aerostructures.

With its corporate headquarters in Los Angeles, California, Northrop Grumman is organized into three business sectors, employs 45,000 employees, and achieved $9 billion in sales for 1999. The BMP survey focused on the DSD of the Electronic Sensors and Systems Sector. Located in Rolling Meadows, Illinois, Northrop Grumman DSD employs 2,200 personnel, encompasses 50 acres, and achieved $536 million in sales for 1999. The company covers the full spectrum of electronic warfare systems, from precision strike to self-protection to readiness and support. In addition, Northrop Grumman DSD is a vertically integrated facility which houses all major disciplines under one roof. This approach promotes multi-disciplinary teamwork and allows for intelligent tradeoffs in all phases of program development. A key aspect of the company’s success, and a best practice, is the Integrated Management Control System (IMCS). This system is a hybrid collection of integrated, high-end, commercially-available software which Northrop Grumman DSD tailored to its unique management and customer requirements. With its closed-loop Material Requirements Planning (MRP) features, the IMCS implements just-in-time (JIT) policies that automate tools to establish and monitor planning, program performance, material management, supplier management, shop floor, capacity planning, and financial activities. The IMCS also provides capabilities to communicate electronically to customers and suppliers. Other best practices documented were Northrop Grumman DSD’s miniaturized high power amplifier design and manufacturing; production process simulation; contingency planning; excellent performance indicators; modular factory for electronic warfare component manufacturing; and rolling forecast system.

Through its dedication, ingenuity, and forward-looking vision, Northrop Grumman DSD maintains its focus on the changing needs of its military, government, and commercial customers. The company also fosters numerous initiatives to promote customer satisfaction, employee opportunity, environmental compliance, and community outreach. Just as the company strives to achieve technological innovation in business, it also endeavors to make valued contributions to the local community. This outlook encourages employees to look beyond traditional ideas and methods. Employees even formed a SCUBA club to remove debris dumped in local ponds and lakes. By employing fundamental principles, Northrop Grumman DSD ensures a bright future and strengthens the company’s position to compete. The BMP survey team considers the following practices to be among the best in industry and government.

TABLE OF ACRONYMS
The following acronyms were used in this report:

For more information see the Point of Contact for this survey.