Original Date: 09/14/1998
Revision Date: 01/18/2007
Best Practice : Single Process Initiative
In May 1995, Raytheon Missile Systems Company (RMSC) developed a process to approve and implement block changes for common processes, as directed by the Single Process Initiative (SPI) for acquisition reform. RMSC’s SPI approval process relies on technical and cost IPTs. Previously, the company maintained and used multiple processes, regardless of product similarity, to meet each contract’s requirements. This approach resulted in duplicated efforts and excess costs.
Each proposed common process is assigned a technical IPT, which is led by RMSC and uses representatives from RMSC and DCMC. The technical IPT fully defines the proposed process by eliminating non-value added components and conflicting program requirements, and ensures that the new process provides equivalent/improved quality compared to current processes. The team submits the proposed common process as an idea paper to DCMC for approval. Once approved, the team is expanded to include the Program Executive Officer, program office, and other applicable government representatives. The revised IPT resolves any technical concerns and obtains customer concurrence.
In concert, a cost IPT determines the cost impact of a proposed change. This team is led by an RMSC estimator, and consists of a technical IPT leader, a technical IPT DCMC representative, and other technical experts, cost analysts, and estimators as needed. The cost IPT identifies the assumptions for assessing the cost impact for current contracts, and for determining the sustaining yearly cost avoidance. After completing the cost impact estimates, RMSC prepares a concept paper for the proposed common process, which details the process, provides associated metrics and consequent changes, and contains a rough order of magnitude cost/benefit analysis. The paper is submitted to the Management Council (with representatives from DCMC, the Defense Contract Audit Agency, RMSC, and key customers) for approval and execution of the block change modification for all U.S. government contracts at the site.
Since RMSC implemented this process, 29 SPIs have been approved and used at RMSC. The company estimates that the annual cost avoidance of the 29 approved SPIs exceeds $6.6 million. In addition, RMSC enhanced customer relationships via the customer’s active IPT participation, strengthened competition, and streamlined acquisition. In March 1997, DOD presented RMSC with the SPI Recognition Award for its successful efforts in implementing common processes.
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