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Original Date: 02/19/2007
Revision Date: / /
Best Practice : Overhaul and Repair Turnaround Time
Raytheon’s Network Centric Systems Largo, Florida, facility has consolidated its overhaul and repair operations and established common practices and standardizations that have resulted in significant improvements in the turnaround times for overhaul and repair items.
Raytheon’s Network Centric Systems (NCS) Manufacturing Center in Largo, Florida, is a consolidation of 15 separate manufacturing sites consisting of 80 programs and 7,000 to 9,000 warranty and non-warranty repair items processed annually. With no existing standard operation numbers, gathering plantwide data was almost impossible. The facility lacked a common reporting tool or common set of metrics, and Largo’s priorities were not aligned with Raytheon companywide initiatives. Hundreds of support hours were spent each month gathering program data, leaving little time to improve processes. Production activities received more attention than overhaul and repair activities, while support costs continued to escalate in the absence of long-term pricing agreements.
Raytheon Largo created an Overhaul and Repair (O&R) Organization to focus specifically on making overhaul and repair improvements at the Largo site. Long-term pricing agreements were forged with most major customers in which each customer pays a set price for every item repaired. The “alpha-like” contract is repriced and negotiated annually. The Largo facility also developed common practice guidelines for use by all overhaul and repair programs, standardized operation numbers to facilitate data gathering and mining, a Web-based work-in-process analysis tool, and a monthly reporting tool for site metrics to provide the information needed by management.
Raytheon Largo has successfully established O&R turnaround time (TAT) as a Raytheon “mission assurance” initiative. The average dock-to-dock TAT has been reduced from more than 180 days to typically less than 120 days. Administrative costs have been reduced by 50%, while plantwide data gathering and charting have been reduced from two weeks to six minutes.
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