Original Date: 09/14/1998
Revision Date: 01/18/2007

Raytheon Missile Systems Company (RMSC) has traditionally applied the commonly used red-yellow-green color scheme to visually depict performance criteria. Red indicates non-compliance or high risk; yellow indicates substantial compliance or low risk; and green indicates full compliance with established criteria. In 1997, RMSC added a new color indicator, known as blue criteria, to the traditional color scheme.

At RMSC, blue indicates established performance criteria that exceeds the acceptable industry or government standards. The following are typical examples of RMSC’s criteria for key government-specified Material Management Accounting Standards:

Inventory Accuracy:
Red is less than 90%
Yellow is 90% to 94.9%
Green is 95% to 99%
Blue is 99.1% to 100%

On-Hand Inventory:
Red is 5.0 or greater
Yellow is 4.0 to 4.9
Green is 2.5 to 3.9
Blue is 2.4 or less

RMSC implemented the blue criteria approach to support its world-class business strategies. Under acquisition reform initiatives, blue criteria provides a means to identify candidates for reducing government oversight without adding risk to the customer. Reductions in oversight translate directly to reduced manpower and costs, and greatly simplify management review. RMSC is an industry leader in developing and applying criteria that exceeds government standards throughout its entire business operations structure.

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