Design for Six Sigma Cuts Costs, Boosts Customer Satisfaction

Challenge

Employ more robust design processes to increase customer satisfaction and improve financial performance

Solution

Apply Raytheon Six Sigma™ principles to:

• Reduce life-cycle costs of the AIM-9X Sidewinder missile
  
  
• Translate customer needs into manufacturing requirements for AMRAAM missile
  
  
• Improve “producibility” and maintainability at the manufacturing level

Results

• $1.2 billion reduction in AIM 9-X life-cycle costs
  
  
• Twenty percent reduction in average unit production costs (AUPC) for AMRAAM missile
  
  
• Improved affordability for Navy and Air Force customers

Design for Six Sigma

To help its customers meet production and cost goals, Raytheon developed Design for Six Sigma (DFSS), a process that identifies and focuses on critical parameters in design to ensure delivery of a product that is also compatible with the company manufacturing capabilities and processes. Raytheon Missile Systems used DFSS to improve the design and manufacture of the AIM-9X Sidewinder and AMRAAM air-to-air missiles for its Navy and Air Force customers.

Streamlining AIM-9X Development

Raytheon Six Sigma™ tools were first applied to the engineering and development of the AIM-9X missile in 1995. The Raytheon Missile Systems team employed the Cost as an Independent Variable (CAIV) method to reduce life-cycle costs of the missile. Particular emphasis was placed on the cost of the Raytheon-supplied Integrated Detector Assembly (IDA) using variability-reduction techniques. Success in cutting life-cycle costs led the Navy to recognize Raytheon’s CAIV process as an industry best practice.

Capturing the Customer’s Needs

Raytheon called upon other important Six Sigma methodologies with the joint Air Force/Navy AMRAAM missile Phase III program, namely Quality Function Deployment (QFD)and Design for Manufacture and Assembly (DFMA). QFD is a method for translating the customer’s wants and needs into company requirements for deployment throughout all aspects of the business including product development, engineering, manufacturing and marketing. DFMA focuses on reducing cycle time at the manufacturing stages and works to improve producibility and maintainability. Over 25 QFD/DFMA workshops were conducted with Air Force participation. To reduce cost and part count, key suppliers were engaged in meetings as well.

Results

Customer benefits from DFSS included improved affordability, higher quality and excellent performance. Raytheon achieved a reduction of $1.2 billion in AIM-9X life-cycle costs through the application of the CAIV technique. On the AMRAAM missile Phase III program, Raytheon saved 20 percent in average unit production costs by using QFD/DFMA workshops.