Original Date: 10/10/2005
Revision Date: / /

Raytheon has implemented best practices and lean processes in the Facilities area that have been identified through the Integrated Air Defense Center’s benchmarking and process improvement efforts. More than $1 million in savings have been identified that do not include energy cost savings.

Raytheon had been doing many facilities processes in-house that most other companies had outsourced. A new CEO questioned the cost savings of outsourcing and directed that processes be examined to determine if in-house production was more cost-effective than outsourcing. A Benchmarking and Best Practices task was initiated in 2000 to determine where Raytheon stood with respect to other companies performing similar processes. The Facilities Lean Process Improvements project was developed as an initiative to improve the IADC processes.

The project is initiated by first reviewing the elements of the Facilities process. Stakeholders are identified as the team who has a vested interest in seeing a solution and thus, works on the issues. The International Brotherhood of Electrical Workers (IBEW) and members of management brainstormed the process and the issues. The entire process flow is mapped to identify opportunities for improved customer satisfaction, quality, and schedule performance. The highest return on investment (ROI) opportunities for the least cost were also identified. Once the revised process had been implemented and proven, it was then shared as a best practice with other organizations.

This process for developing the improvements did not end at the IADC, but also extended to suppliers. Annual benchmarking was performed in the areas of space, utilities, maintenance, custodial services, parking, grounds, project costs, engineering, environmental health and safety, security, fixed costs, and customer service surveys. Special surveys have been conducted in the areas of conference rooms, production equipment, maintenance, chargebacks, employee amenities, reprographics, travel, and mail services. The best practices identified during the surveys were implemented at Raytheon’s Integrated Defense Systems (IDS) facilities, resulting in significant savings.

More specifically, energy usage consumption has declined from 1,040,879 BTUs in 2000 to 943,913 BTUs in 2004. Natural lighting is maximized in all buildings, and automatic light shut-offs have been installed. Air filter suppliers deliver filters to the point-of-use on the roof of the building to get filters to the place they are needed, eliminating unnecessary handling and storage. The implementation of these best practices and lean initiatives has enabled Raytheon’s Andover facility to save more than $1 million.

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