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Original Date: 10/10/2005
Revision Date: / /
Information : Spare Parts Proposal System
The Integration Technology Team at Raytheon Integrated Defense Systems developed a system to reduce the spare parts proposal process time that was taking an average of 79 days to be returned to a customer. The first phase of this process was recently completed and is expected to reduce the process throughput time to 25 days.
When the U.S. Army orders spare parts for its Patriot Missile System, the response can sometimes take months. To solve this problem and reduce the cycle time it takes to supply the Army with its requisite spare parts, Raytheon is currently developing a Spare Parts Proposal System to drastically reduce the time by a factor of at least 50%. The Integrated Air Defense Center (IADC) Patriot Spares Group commissioned a cross-functional Six Sigma team to analyze and redesign the process. The team’s first discovery was that while all groups contributed to delays, no one group owned the problem.
The Six Sigma team developed an innovative solution with input from Patriot Program Management Offices (PMOs), Work Centers, Supply Chain, and Finance. Five “Pain Points” were identified as needing attention and improvement:
Getting supplier quotes on purchase parts
Generating basis of estimates (BOEs)
Ambiguity surrounding customer request
No central repository to collect data and build history
BCAPS Pull and Bump
To address this issue, the Spare Parts Proposal Process System was developed that includes a web-enabled parts catalog and order form that the customer uses to order parts. All data is stored in a centralized database, with additional data automatically extracted from multiple legacy systems and placed in the centralized database. The use of a centralized database greatly reduces query time and improves data integrity. The system also includes a single web interface where proposal data can be viewed and printed out before it is approved.
The benefits that the Spare Parts Proposal System brings to Raytheon and its customer include a streamlined Request for Proposal (RFP) process for the customer with improved data integrity and electronic access, reduced process variability through standard forms, improved user productivity, and a dramatic reduction in cycle time. Although this process was created for the Patriot Program, it can be extended to other programs.
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