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CMMI Facilitates Development and Delivery of Complex DoD Systems Complex Systems/ System-of-Systems Support CMMI Provides for Multi-Company Systems More Disciplined Systems Engineering Process Requirements Development Integration/Test Emphasis on Measurements for Decision Making in all Processes Common Vocabulary for describing Product Development Processes Increased Emphasis on Supply Chain as a Critical Discipline for Success DD(X)
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CMMI® – The Current State
Presented by Gregory SheltonCorporate Vice PresidentEngineering, Technology, Manufacturing & Quality
3rd Annual CMMI Technology Conference & User Group18 November 2003
Technology and Acquisition ChangesAre Driving CMMI• System complexity is ever increasing
– Moore’s law at the system scale
• Balance between Government and Industry associated with systems development is shifting without due diligence
• Network centric, spiral development, extension of system applications, are driving higher levels of integration
• High percentage of prime contractor costs are in Supply Chain
Integrating disciplines (Engineering, Supply Chain, Program Management) is needed for successful
program execution and predictability
CMMI Facilitates Development and Delivery ofComplex DoD Systems
Complex Systems/
System-of-Systems
Support CMMI Provides forMulti-Company Systems
• More Disciplined Systems Engineering Process
• Requirements Development
• Integration/Test
• Emphasis on Measurements for Decision Making in all Processes
• Common Vocabulary for describing Product Development Processes
• Increased Emphasis on Supply Chain as a Critical Discipline for Success
DD(X)
• Company-wide commitment at the top level of leadership• Deploying uniformly to all sites
– Leader/Follower sites
• Tying into IPDS and Raytheon Six Sigma– Sharing of best practices– Cultural Change
• Corporate-wide funding for key training and appraisal – Enterprise Steering team– Expert Consulting team
• Extending to hardware and other disciplines
Raytheon’s Approach to CMMI
Our mechanisms for process andtechnology enterprise integration
Capability Model Maturity Integration (CMMI) provides the
process requirements and appraisal methods for creating, measuring,
managing, and improving specific
processes.
Integrated Product Development System (IPDS) provides an
integrated set of best practices for the entire product development
life cycle through a program tailoring
process.
Raytheon Six Sigma guides us to use CMMI
and IPDS as tools to deliver value to customers
and integrate industry best practices.
Our technology will flourish with process discipline
Prod
uctiv
ity
FixPrograms
IntegratedSupply Chain
Raytheon’s Process Journey – Improving Productivity
CustomerFocused
Marketing
EVMS
HR Processes StrategicPlanning
Annual Operating
Plan
RISE *
* Raytheon Integrated Synthetic Environment
Innovation will flourish on the bedrock of discipline
Improvement is Evident to Our Shareholders and Customers
179 180
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235
150
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1999 2000 2001 2002 2003P
4-year CAGR = 7%($000)
Sales Per Employee
0.880.9
0.920.940.960.98
11.021.041.061.08
1.11.121.141.16
0.88 0.9 0.92 0.94 0.96 0.98 1 1.02 1.04 1.06 1.08 1.1 1.12 1.14 1.16
20002001
2002
1999 ??
Target Area
SPI
CPI
Earned Value Performance History
Example Recent Process Improvement Results
• Early defect containment rate increased by 100%. ROI of 6:1. Site now CMMI Level 3
• CMM Level 5 site reduced CPI variability by 32%; SPI variability by 67%
• CMMI Level 3 site reduced rework costs by 42% over several years
3.03.54.04.55.05.56.06.57.07.58.0
1999 2000 2001 2002 2003P
turn
s
Avg. Working Capital Turns (G&D)
1998 1999 2000 20022001 2003
IPDS/R6S/CMMI Deployment Across
RaytheonOVER
UNDER
AT
CO
ST
EARLYLATE ON-TIME
SCHEDULE
OVER
UNDER
AT
CO
ST
EARLYLATE ON-TIME
SCHEDULE
IPDS/R6S/CMMI: The Results !
In Summary
• Advances in technology and systems integration are driving CMMI implementation
• True adoption will improve our program performance in Cost, Schedule, and Risk
• CMMI at Raytheon involves our whole Enterprise with leadership support
• Raytheon has demonstrated productivity successes with the SW-CMM. Similar (greater) successes are expected with CMMI.
• CMMI is our model for process excellence and will be our Customers’ model