Original Date: 10/10/2005
Revision Date: / /
Information : Labor Management System Replacement
Labor Management System Replacement is a new system that is currently in development at Raytheon Integrated Defense Systems. This new system will offer near real-time capability for timekeeping, replacing a legacy labor management process that uses several 1970s mainframe applications written in COBOL. Labor Management System Replacement will generate large savings in operation and maintenance costs.
Raytheon is developing a new Labor Management System Replacement (LMSR) to replace its current process, which uses several 1970s legacy mainframe applications written in COBOL to perform payroll tasks. LMSR will be web-based, near real-time, and will have the ability to make corrections instantaneously. It will also integrate seamlessly with existing IT enterprise solutions that Raytheon has currently put into place and will integrate with future IT solutions as an important part of Raytheon Integrated Defense Systems (IDS). To achieve this end goal, Raytheon thoroughly analyzed its current labor management processes and performed business case analysis on its processes. IDS then defined and documented the requirements of the LMSR. Raytheon performed a market survey to chose a tool to build the LMSR application and selected CRONOS, a COTS software.
LMSR benefits to Operations include:
A reduced labor management burden on foremen and reduced costs A reduced foremen correction time of 50%
Real-time foremen correction process for payroll and labor accuracy
Potential tie-in to virtual factory for labor actuals
IT benefits from LMSR include:
Reduced costs and risk Retiring several 1970's legacy systems
Reduced IT legacy support programming effort
LMSR timekeeping and payroll benefits include:
Reduced costs and risk Eliminating timekeeping Saturday processing of payroll and labor adjustments.
Reduced processing time for shop floor to Systems Applications Products (SAP) interface
Eliminating late payroll file delivery to corporate due to system failure.
HR benefits include:
Retiring the overtime equalization system Reduced costs and risk
The cost savings generated by the use of LMSR for a three-year period is projected to be approximately $1.174 million. The use of the Six Sigma strategy to reduce risk, reduce costs, increase productivity, and decrease errors brings value to Raytheon and enhances the company’s competitiveness in the market.
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