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

Raytheon Missile Systems Company’s (RMSC’s) Integrated Process Architecture is designed to leverage programs (via common processes) by aligning enterprise goals; providing structured approaches for planning and executing programs; and achieving continuous measurable improvement in performance. One such process that meets these objectives is the monthly Production Plan Review (PPR) chaired by a program’s master scheduler. Prior practices at RMSC did not produce the level of communications needed to address production schedules in a proactive manner, and avoided front-loaded schedules that operated in a past-due environment.

PPR relies on cross-functional participation by process owners, including procurement, program office, business office, production control, and master scheduling. The process enables the company to examine production-build plans and schedules in detail, and review key enterprise metrics for avenues of improvement. By using internal material audits and controls, PPR ensures consistency across all programs, and compliance with DOD’s Material Management Accounting Standards. Color-coded scheduling performance metrics are used to establish guidelines for rescheduling: blue is on schedule; green is four weeks or less behind; yellow is five to eight weeks behind; and red is nine or more weeks behind. Other key metrics reviewed by the company include production schedule accuracy, months of on-hand inventory, bill of material accuracy, total program cycle time, and contract starts.

PPR is tailored after Oliver Wight’s world-class MRP approach, which was proven to be a key enabler for companies to achieve Class A, MRP II performance. Since implementing PPR, RMSC has improved on-time contract starts and contractual deliveries; reduced inventory carrying costs and cycle times; and produced realistic, trustworthy schedules. In one case, PPR showed that a cycle time improvement was not being achieved, so the company added an additional metric (pareto analysis of time required to purchase long lead items) to identify the key offenders and target them for special attention.

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