Northrop Grumman, Defensive Systems Division

B e s t M a n u f a c t u r i n g P r a c t i c e s

REPORT OF SURVEY CONDUCTED AT

NORTHROP GRUMMANDEFENSIVE SYSTEMS DIVISION

ROLLING MEADOWS, IL

BEST MANUFACTURING PRACTICES CENTER OF EXCELLENCECollege Park, Maryland

www.bmpcoe.org

MAY 2000

F o r e w o r d

This report was produced by the Office of Naval Research’s Best ManufacturingPractices (BMP) Program, a unique industry and government cooperativetechnology transfer effort that improves the competitiveness of America’sindustrial base both here and abroad. Our main goal at BMP is to increase thequality, reliability, and maintainability of goods produced by American firms. Theprimary objective toward this goal is simple: to identify best practices, documentthem, and then encourage industry and government to share information aboutthem.

The BMP Program set out in 1985 to help businesses by identifying, researching, and promotingexceptional manufacturing practices, methods, and procedures in design, test, production, facilities,logistics, and management – all areas which are highlighted in the Department of Defense’s 4245.7-M,Transition from Development to Production manual. By fostering the sharing of information acrossindustry lines, BMP has become a resource in helping companies identify their weak areas and examinehow other companies have improved similar situations. This sharing of ideas allows companies to learnfrom others’ attempts and to avoid costly and time-consuming duplication.

BMP identifies and documents best practices by conducting in-depth, voluntary surveys such as thisone at Northrop Grumman, Defensive Systems Division (DSD), Rolling Meadows, Illinois conductedduring the week of May 1, 2000. Teams of BMP experts work hand-in-hand on-site with the company toexamine existing practices, uncover best practices, and identify areas for even better practices.

The final survey report, which details the findings, is distributed electronically and in hard copy tothousands of representatives from industry, government, and academia throughout the U.S. and Canada– so the knowledge can be shared. BMP also distributes this information through several interactiveservices which include CD-ROMs, BMPnet, and a World Wide Web Home Page located on the Internet athttp://www.bmpcoe.org. The actual exchange of detailed data is between companies at their discretion.

Northrop Grumman DSD is a vertically integrated facility which houses all major disciplines underone roof. The company covers the full spectrum of electronic warfare systems, from precision strike toself-protection to readiness and support. Among the best examples were Northrop Grumman DSD’saccomplishments in miniaturized high power amplifier design and manufacturing; production processsimulation; contingency planning; excellent performance indicators; integrated management controlsystem; modular factory for electronic warfare component manufacturing; and rolling forecast system.

The Best Manufacturing Practices Program is committed to strengthening the U.S. industrial base.Survey findings in reports such as this one on Northrop Grumman DSD expand BMP’s contributiontoward its goal of a stronger, more competitive, globally-minded, and environmentally-consciousAmerican industrial program.

I encourage your participation and use of this unique resource.

Anne Marie T. SuPrise, Ph.D.Acting Director, Best Manufacturing Practices

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C o n t e n t s

1. Report Summary

Background......................................................................................................... 1

Best Practices ..................................................................................................... 1

Information ......................................................................................................... 5

Point of Contact.................................................................................................. 8

2. Best Practices

DesignApplication Specific Integrated Circuit Design Capabilities ............................. 9Circuit Card Assembly: Design Team ................................................................. 9Electro-Optical/Infrared Technology Development .......................................... 10Infrared Countermeasures Simulation and Test ............................................. 10Miniaturized High Power Amplifier Design and Manufacturing .................... 11Modeling and Simulation for Requirements Definition ................................... 11Monolithic Microwave Integrated Circuit Design Tools .................................. 12

TestInstrumentation and Data Reduction Tools Development .............................. 12

ProductionBest Value Manufacturing ................................................................................ 13Calibration Delinquencies ................................................................................. 13Calibration Intervals ......................................................................................... 14Circuit Card Assembly: Cleaning ...................................................................... 14Circuit Card assembly: Flexible Manufacturing .............................................. 15Components Obsolescence Management .......................................................... 15Operator Self-Inspection and Product Assessment Program .......................... 16Production Process Simulation ......................................................................... 16

FacilitiesDSD Contingency Planning ............................................................................... 17Energy Management.......................................................................................... 17

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Facilities Preventive Maintenance System ...................................................... 18Facilities Service Manual .................................................................................. 19Hazardous Materials Management Program ................................................... 19Pollution Prevention Program........................................................................... 20Site Recycling Efforts......................................................................................... 20

LogisticsExcellent Performance Indicators Program ..................................................... 20

ManagementCommodity Design Teams ................................................................................. 21Integrated Management Control System ......................................................... 22ISO-9001 Quality Management System Audit ................................................. 23Modular Factory for Electronic Warfare Component Manufacturing............................................................................... 24Process Oriented Contract Administration Services........................................ 25Product Assurance Reporting and Trending System ....................................... 26Proposal Cost Estimating Relationships .......................................................... 27Rolling Forecast System .................................................................................... 27Security Education and Ethics Awareness Committee.................................... 28Security Safety Inspection Program ................................................................. 28Supplier Teaming............................................................................................... 29Wellness Program .............................................................................................. 29

3. Information

DesignProduct Data Manager Enabler ........................................................................ 31

TestBuilt-In-Test ....................................................................................................... 31Environmental Industrial Test ......................................................................... 31Field Test Support Processes ............................................................................ 32In-Circuit Test .................................................................................................... 32Material Evaluation Laboratory ....................................................................... 32Universal Power Supply Tester ........................................................................ 33

C o n t e n t s (Continued)

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J-STD-001 Workmanship Training................................................................... 35Magnetics ........................................................................................................... 36Material Control and Kitting ............................................................................ 36Statistical Process Control ................................................................................ 37

LogisticsEngineering Staffing Projections ...................................................................... 37Product Operations Depot ................................................................................. 37Shelf Life Management System ........................................................................ 38Technology Planning ......................................................................................... 38

ManagementElectronic Command Media Web ...................................................................... 39Employee Development and Recognition ......................................................... 39Environmental and Safety Web-Based Interactive Training .......................... 40Intranet Program Review System..................................................................... 40Material Acceptance: Dock to Stock .................................................................. 41Operations Programs Integrated Product Team .............................................. 41Product Data Management ............................................................................... 42Software License Verification Process .............................................................. 42Strategic Planning ............................................................................................. 42Supplier Rating System ..................................................................................... 43

Vertically Integrated Test Equipment .............................................................. 33

ProductionCircuit Card Assembly:Conformal Coating ...................................................... 33Electro-Optical Flexible Assembly Processes ................................................... 34Encapsulation and Impregnation...................................................................... 35

C o n t e n t sNorthrop Grumman, Defensive Systems Division

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APPENDIX A - Table of Acronyms ........................................................................ A-1APPENDIX B - BMP Survey Team......................................................................... B-1APPENDIX C - Critical Path Templates and BMP Templates ......................... C-1APPENDIX D - BMPnet and the Program Manager’s WorkStation ................ D-1APPENDIX E - Best Manufacturing Practices Satellite Centers .................... E-1APPENDIX F - Navy Manufacturing Technology Centers of Excellence ........F-1APPENDIX G - Completed Surveys ....................................................................... G-1

C o n t e n t sNorthrop Grumman, Defensive Systems Division

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F i g u r e sNorthrop Grumman, Defensive Systems Division

2-1 Circuit Card Assembly: Design Cycle...................................................................................... 92-2 Countermeasures Technique Development..............................................................................112-3 In-Line Cleanliness Data..........................................................................................................142-4 Declining Military Presence.....................................................................................................162-5 Accumulated Yearly Electrical Savings....................................................................................182-6 Integrated Management Control System...................................................................................222-7 Modular Factory........................................................................................................................252-8 Product Assurance Reporting and Trending System.................................................................263-1 Current versus Proposed Layout...............................................................................................34

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In the early 1930s, William J. Halligan founded theHallicrafters Company in Chicago, Illinois. The companybuilt handcrafted amateur radio receivers with state-of-the-art features at an affordable price. By 1938, Hallicrafterswas the most popular manufacturer of communicationsreceivers in the U.S. and 89 other countries. During WorldWar II, many of Hallicrafters’ products were pressed intoservice due to a shortage of military radio equipment. Thecompany geared up for wartime production, and was re-sponsible for many new designs and innovations (e.g., HT-4). After the war, Hallicrafters started a new line ofconsumer electronics including radio phonographs, AM/FM receivers, clock radios, and televisions. The 1950swere the most successful years for the company. Many ofits amateur radio products became classics including theHT-32 and the SX-101. Much of this equipment is still usedtoday and sought after by nostalgia buffs and collectors.

In 1966, Northrop Corporation bought Hallicrafters andmoved it to Rolling Meadows, Illinois. Here, the newsubsidiary’s main function was to produce para-militaryequipment and electronic countermeasures systems forNorthrop. In 1974, the site was designated as Northrop’sDefensive Systems Division and renamed NorthropGrumman after the 1994 merger with Grumman AerospaceCorporation. Today, Northrop Grumman is a leadingdesigner, systems integrator, and manufacturer of militarysurveillance and combat aircraft; defense electronics andsystems; airspace management systems; information sys-tems; marine systems; precision weapons; space systems;and commercial and military aerostructures.

With its corporate headquarters in Los Angeles, Califor-nia, Northrop Grumman is organized into three businesssectors, employs 45,000 employees, and achieved $9 bil-lion in sales for 1999. The BMP survey focused on theDefensive Systems Division (DSD) of the Electronic Sen-sors and Systems Sector. Located in Rolling Meadows,Illinois, Northrop Grumman DSD employs 2,200 person-nel, encompasses 50 acres, and achieved $536 million insales for 1999. The company covers the full spectrum ofelectronic warfare systems, from precision strike to self-protection to readiness and support. In addition, NorthropGrumman DSD is a vertically integrated facility whichhouses all major disciplines under one roof. This approachpromotes multi-disciplinary teamwork and allows for intel-ligent tradeoffs in all phases of program development. A

key aspect of the company’s success, and a best practice, isthe Integrated Management Control System (IMCS). Thissystem is a hybrid collection of integrated, high-end, com-mercially-available software which Northrop GrummanDSD tailored to its unique management and customerrequirements. With its closed-loop Material RequirementsPlanning features, IMCS implements just-in-time policiesthat automate tools to establish and monitor planning,program performance, material management, supplier man-agement, shop floor, capacity planning, and financial ac-tivities. IMCS also provides capabilities to communicateelectronically to customers and suppliers. Other best prac-tices documented were Northrop Grumman DSD’s minia-turized high power amplifier design and manufacturing;production process simulation; contingency planning; ex-cellent performance indicators; modular factory for elec-tronic warfare component manufacturing; and rolling fore-cast system.

Through its dedication, ingenuity, and forward-lookingvision, Northrop Grumman DSD maintains its focus on thechanging needs of its military, government, and commer-cial customers. The company also fosters numerous initia-tives to promote customer satisfaction, employee opportu-nity, environmental compliance, and community outreach.Just as the company strives to achieve technological inno-vation in business, it also endeavors to make valued contri-butions to the local community. This outlook encouragesemployees to look beyond traditional ideas and methods.Employees even formed a SCUBA club to remove debrisdumped in local ponds and lakes. By employing fundamen-tal principles, Northrop Grumman DSD ensures a brightfuture and strengthens the company’s position to compete.The BMP survey team considers the following practices tobe among the best in industry and government.

Best Practices

The following best practices were documented at NorthropGrumman DSD:

Item Page

Application Specific Integrated Circuit Design 9Capabilities

Application Specific Integrated Circuit design capabili-ties have become relatively common in response to the

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demand for small, high-performance electronics in De-partment of Defense systems. However, the NorthropGrumman DSD has effectively prioritized its efforts tofocus on client requirements. The company’s well-in-tegrated design capabilities also provide many benefitsfor its existing products including improvements to per-formance, cost, reliability, repeatability, weight, andvolume.

Circuit Card Assembly: Design Team 9

In 1995, Northrop Grumman DSD set up an integratedprocess team for circuit card assembly design. Thiscross-functional team, invoked a structured process withrepresentatives from every discipline connected withcircuit card assembly design and fabrication, a keyachievement is the team’s commitment to work as agroup to pull the design through the entire process, ratherthan passing the design from one stage to the next.

Electro-Optical/Infrared Technology 10Development

Northrop Grumman DSD’s revised practices in Electro-Optical/Infrared Technology Development emphasizethe anticipation of customer needs as well as cost andschedule controls. Other features include a single sys-tem design to encompass many deployment platformsand strong vendor teaming at all stages of development.

Infrared Countermeasures Simulation and Test 10

Northrop Grumman DSD employs unique, multi-levelsimulation facilities to support infrared countermeasuresdevelopment. These facilities ensure successful simu-lations and live-fire tests under customer scrutiny. Thecompany’s approach has minimized the developmentcost and design-to-production schedule, while maximiz-ing the cost-performance trade-off.

Miniaturized High Power Amplifier Design and 11Manufacturing

Northrop Grumman DSD pioneered a new process fordesigning and manufacturing miniaturized high poweramplifiers that use microwave power modules. Thisapproach integrates a solid-state front end with a small,high-efficiency traveling wave tube and a miniature in-tegrated power conditioner into a common package. Byusing a smaller single case, the company reduced thenumber of high and low voltage interconnects.

Modeling and Simulation for Requirements 11Definition

Northrop Grumman DSD combines digital modelingand simulation with engineering analysis to develop andensure accurate system requirements. By building onits 18-plus years of experience in modeling and simula-

tions, the company developed a library of modeling andsimulation tools to support its system requirements defi-nition tasks. These tools have enabled NorthropGrumman DSD to reduce the cost of test and evalua-tion activities.

Monolithic Microwave Integrated Circuit 12Design Tools

In the 1990s, Northrop Grumman DSD developed de-sign tools to improve its methods for designing customcircuits and monolithic microwave integrated circuitprototypes. These tools include a Monolithic Micro-wave Integrated Circuit Cell Library; a RapidPrototyping System; and a Peer Review Procedure.

Instrumentation and Data Reduction Tools 12Development

Seeking a way to collect and analyze data in a timelyand comprehensive manner, Northrop Grumman DSDtook a consolidated approach which encompassed boththe laboratory and field environments. The companyestablished a method that addresses the data collectionand processing of radio frequency and infrared instru-mentation. The basis for this practice incorporates acomposite assessment of system requirements, systemobjectives, and customer verification and validation.

Best Value Manufacturing 13

Northrop Grumman DSD established Best Value Manu-facturing as a quality assurance method for the fabrica-tion, assembly, inspection, testing, and delivery of elec-tronic systems, components, and spares which meet orexceed specified customer requirements. The methodwas developed through a culmination of lessons learnedduring the manufacture of over 4,000 electronic war-fare systems as well as a teaming effort with suppliersand customers.

Calibration Delinquencies 13

In late 1993, Northrop Grumman DSD revised its pre-vious method for scheduling equipment calibrations bysetting up a two-step process. On the first day of eachmonth, the equipment custodians receive a 45-day pro-jection of the laboratory’s calibration needs. Addition-ally, a short list is posted daily and alerts the custodiansto items due that day or the next, which have not beenreturned to the calibration laboratory.

Calibration Intervals 14

In 1994, Northrop Grumman DSD developed a methodto optimize test equipment calibration intervals andmaintain a maximum in-tolerance rate. This methodemploys the U.S. Air Force’s 33K-1-100 guidelinesdocument as the basis for setting the initial calibration

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intervals. In addition, the company uses a five-yearanalysis for each family of test equipment to adjust theintervals.

Circuit Card Assembly: Cleaning 14

In the mid-1990s, Northrop Grumman DSD began de-veloping a non-ozone depleting chemical process to re-place its traditional chlorofluorocarbon cleaning meth-ods. This automated semi-aqueous process uses a non-ozone depleting chemical compound (Axarel) and aclosed-loop, zero-discharge system for the processliquids.

Circuit Card Assembly: Flexible Manufacturing 15

Northrop Grumman DSD designed a unique CircuitCard Assembly flexible manufacturing line for low-volume, high-mix environments. Operator training,equipment selection, and process development are tar-geted to achieve the versatility necessary to process pro-totype, pre-production, or experimental assemblies forAdvanced Engineering as well as the substantiallyhigher production quantities that may become common-place in future programs.

Components Obsolescence Management 15

In 1998, Northrop Grumman DSD set up ComponentsObsolescence Management to address diminishingmanufacturing sources. Goals of this system includedecreasing product and development costs by reducingthe number of active parts; decreasing the number ofsuppliers; shortening product time-to-market by reduc-ing approval time; improving product quality by con-trolling the number of preferred parts; and improvingcomponent information knowledge and speed of partselection during design, procurement, and manu-facturing.

Operator Self-Inspection and Product 16Assessment Program

Northrop Grumman DSD transferred the responsibilityof product in-process acceptance from the inspectionorganization to the manufacturing organization by es-tablishing the Operator Self-Inspection and Product As-sessment program. This program utilizes the produc-tion operators’ experience and training for product ac-ceptance throughout the manufacturing process. Theapproach builds quality into the product rather than triesto inspect quality into the product.

Production Process Simulation 16

In 1992, Northrop Grumman DSD implemented simu-lation modeling software so it could realistically depictthe true dynamics and interrelationships of manufac-turing processes. Simulation modeling allows system

developers and analysts to predict the performance ofexisting or proposed systems under different configu-rations or operating policies. This process, carried outbefore the existing system is actually changed or thenew system is built, minimizes the risk of unforeseenbottlenecks, under- or over-utilization of resources, andfailure to meet specified system requirements.

DSD Contingency Planning 17

In 1997, Northrop Grumman DSD developed and imple-mented the DSD Contingency Plan. This plan containsinformation regarding the company’s one millionsquare-foot facility on a room-by-room basis, and pro-vides a floor plan showing the locations of rooms, of-fices, laboratories, and shops. In addition, the DSDContingency Plan lists the number of occupants in eacharea; all potential hazards and safety concerns; and thenames and phone numbers of personnel to be contactedin the event of an incident.

Energy Management 17

In 1994, Northrop Grumman DSD formed an EnergyManagement Committee to identify and implementstrategies for reducing energy consumption without hin-dering ongoing business operations or compromisingemployee safety. The committee also wanted to pro-vide initiatives that employees could use in their ownhousehold environment. As a result, the company pro-vides articles and information (e.g., energy programs,energy saving hints) in its newsletters as well as on itsIntranet website.

Facilities Preventive Maintenance System 18

In 1994, Northrop Grumman DSD implemented a Fa-cilities Preventive Maintenance system that incorporatesmanufacturers’ maintenance interval recommendationsand tracks preventive maintenance efforts for all equip-ment logged into the system. This system uses an auto-mated Maintenance Management System database totrack all maintenance requests for service, enable thescheduling of maintenance based on manufacturers’ rec-ommendations, and maintain the maintenance informa-tion for use in cost-benefit analyses.

Facilities Service Manual 19

In 1987, the growth of the Rolling Meadows facilitynecessitated the development of written policies andprocedures to govern how in-house construction projectswere to be managed. The development of flow pro-cesses and process narratives involved cross-functionalinput from customers, support organizations, and pro-cess experts. This two-year endeavor subsequentlyevolved into Northrop Grumman DSD’s Facilities Ser-vice Manual.

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Hazardous Materials Management Program 19

Northrop Grumman DSD established the HazardousMaterials Management Program to provide users witha more cohesive set of tools and information for man-aging hazardous materials. The program utilizes theHazardous Materials Manager, a searchable databaseand display software package, which provides an inte-grated and systematic approach to managing activities(e.g., acquisition, day-to-day handling, final disposal,regulatory reporting requirements). The database iscontinuously updated and offers on-line accessibilityfor employees through network computers.

Pollution Prevention Program 20

Northrop Grumman DSD’s Pollution Prevention pro-gram evolved from a waste minimization subcommit-tee initiated by the Environmental, Health, and SafetyManagement in 1987. Today, the company has takenits program a step further by developing the Annual En-vironmental Operating Plan. This plan integrates theprocedures, projects, and goals which make up thecompany’s pollution prevention strategy.

Site Recycling Efforts 20

In 1992, Northrop Grumman DSD set up a Recyclingprogram which focuses on several recycling initiativesincluding periodicals, newspapers, wooden pallets, tonercartridges, glass and plastic bottles, fluorescent bulbs,and scrap metals. The company strives to minimizeemployee effort by enlisting support from its janitorialservice contractor.

Excellent Performance Indicators Program 20

In 1992, the company initially set up the Excellent Per-formance Indicators Program to encourage problem-solving skills and employee empowerment. This ini-tiative has since evolved into an employee empower-ment and recognition program based on metrics thatmeasure team performance. The program rewards teamaccomplishments, provides the necessary tools to moni-tor data-driven performance, and encourages processimprovements directed at reducing costs.

Commodity Design Teams 21

In June 1999, Northrop Grumman DSD developed theCommodity Design Team process. This process strivesto create a win-win situation by driving down costs whilemaintaining an equivalent or higher profitabilitythroughout the value chain. As a result, the Commod-ity Design Team was able to focus Northrop GrummanDSD and its key suppliers toward a common vision andset of objectives by leveraging their combined knowl-edge, technology, facilities, and purchasing power.

Integrated Management Control System 22

In 1974, Northrop Grumman DSD implemented an en-terprise-wide, paperless system for Manufacturing Re-source Planning, known internally as the IntegratedManagement Control System. This system is designedto synchronize production and delivery throughout thevalue chain. Transactions are processed on-line and inreal time to ensure that program objectives are beingmet.

ISO-9001 Quality Management System Audit 23

In 1999, Northrop Grumman DSD consolidated its ISO-9001, process, and software audit systems into the ISO-9001 Quality Management System Audit. This systemuses a singular electronic data system for auditing andconsolidates the audit planning activities. The com-pany also created an annual report, the ISO-9001 An-nual Quality Management System Health Status, whichcovers audit topics. Together, these tools provideNorthrop Grumman DSD with greater visibility andaccess to audit results.

Modular Factory for Electronic Warfare 24Component Manufacturing

Initiated in 1996, the Modular Factory for ElectronicWarfare Component Manufacturing program is a jointDepartment of Defense-Northrop Grumman DSD vi-sion to address the needs of the evolving electronicwarfare market. The program’s goals are to achievemarket-driven products, faster product development,reduced product cost, simplified product design, andmarket leverage through functionality andmanufacturability.

Process Oriented Contract Administration 25Services

In June 1992, Northrop Grumman DSD and the De-fense Contracts Management Agency set up a govern-ment initiative known as the Process Oriented ContractAdministration Services. The initiative operates as aformal contractor/customer mechanism to address prob-lems, resolve issues, and facilitate improvement initia-tives. This relationship is mutually beneficial and uniquein industry.

Product Assurance Reporting and Trending 26System

In 1995, Northrop Grumman DSD implemented theProduct Assurance Reporting and Trending System toenhance its operations by consolidating its stand-alonecorrective action systems into a single integrated data-base. This database standardizes data for nonconform-ing material reports and corrective actions; provides con-sistent, reliable historical data; is easily modified for

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changing system and site requirements; and can gener-ate reports to show visible process bottlenecks.

Proposal Cost Estimating Relationships 27

To establish a more consistent pricing methodology,Northrop Grumman DSD developed Proposal Cost Es-timating Relationships which generate reliable estimatesin a timely manner with nearly zero loss in negotiation.This practice utilizes one or more independent variables(e.g., production assembly/test hours, production ma-terial cost) to estimate the dependent variable in a pro-posal effort.

Rolling Forecast System 27

In the early 1990s, Northrop Grumman DSD migratedfrom a single-product dominated facility to a multi-pro-gram plant. As a result, the company developed theRolling Forecast system which forecasts new businessand funding acquisitions for long- and short-range busi-ness planning activities. Forecast data is used in plan-ning rates and manpower, and provides critical inputinto Northrop Grumman DSD’s Sector Long RangeStrategic Plan and Annual Operating Plan.

Security Education and Ethics Awareness 28Committee

Northrop Grumman DSD created the Security Educa-tion and Ethics Awareness Committee as a formallychartered group. The Committee provides, conducts,and sponsors security education and ethics awarenessactivities so that employees are aware of and complywith corporate, sector, division, government, and cus-tomer requirements.

Security Safety Inspection Program 28

In 1992, Northrop Grumman DSD created the SecuritySafety Inspection Program, which collaborates the ef-forts of Security and the Environmental, Health, andSafety Management. The program is a proactive ap-proach to environmental and safety complianceinspections.

Supplier Teaming 29

To improve its relationship with suppliers, NorthropGrumman DSD began developing a multi-faceted Sup-plier Management System which became fully imple-mented in 1996. One element of this system is the Sup-plier Certification (or Vision) program. Through theVision program, the company teams with suppliers toestablish performance characteristics of materials andservices; utilizes their engineering and technical re-sources to develop or improve products; and helps le-verage new programs and business opportunities.

Wellness Program 29

In 1992, Northrop Grumman DSD migrated to a com-prehensive wellness program known as HealthWavesas a proactive solution to employee health needs.HealthWaves provides employees with a part-time pro-fessional health representative on-site; extensivewellness services; health discussion groups and semi-nars; a monthly newsletter via e-mail; and exerciseclasses. The company enhances this program by offer-ing its employees an array of wellness tools (e.g., healthfairs, blood screening, flu immunization program,searchable software database for health information).

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The following information items were documented atNorthrop Grumman DSD:

Item Page

Product Data Manager Design Enabler 31

In 1996, Northrop Grumman DSD, in collaboration withMANTECH, began a cost-sharing initiative to providea virtual environment for managing the product devel-opment life cycles/processes. The system implementa-tion, expected to be completed in 2001, is already pro-viding design and testing capabilities for a selected pi-lot project.

Built-In-Test 31

Northrop Grumman DSD has developed a new processfor Built-In-Tests that uses less test equipment, reducestest and repair times, and minimizes operator skill level.This process includes a Diagnostic Knowledge Basewhich can quickly and completely isolate failures incomplex military systems to a one-line replaceable unitby using the functional element testing concept.

Environmental Industrial Test 31

Environmental testing at Northrop Grumman DSD isused to simulate and evaluate the effects of vibration,temperature, stress, altitude, shock, humidity, and cor-rosion. In 1995, the company added industrial testingto its services. While these capabilities were all ini-tially developed to support military products, they wererecently expanded to include commercial clientele.

Field Test Support Processes 32

To demonstrate specification compliancy for complexinfrared countermeasures systems, Northrop GrummanDSD needed a more effective approach than simplysubjecting equipment (including aircraft and pilots) tolive fire testing. The company developed a documenta-

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tion chain to trace system requirements throughout thetest preparation, test conduct, test analysis, and report-ing loops.

In-Circuit Test 32

Northrop Grumman DSD’s development process for In-Circuit Tests has evolved to provide improved test per-formance while reducing manual labor requirements.The process utilizes compiled libraries of automated testroutines. The sharing of these test routines betweenfunctional and in-circuit test equipment has proven tofurther enhance savings in both schedule and labor.

Material Evaluation Laboratory 32

Northrop Grumman DSD established the MaterialEvaluation Laboratory as a high technology laboratorywhich could handle diagnostic failure analysis, mate-rial evaluation, and process/design analysis support. TheLaboratory’s diversified and proven experience is a valu-able tool in problem identification, analysis and respon-sive formulation of solutions, and specific customerchallenges.

Universal Power Supply Tester 33

In 1995, Northrop Grumman DSD acquired an InteproUniversal Power Supply Tester which contains the loadsand power supplies needed to stimulate a Unit UnderTest. The Intepro system uses an Interface Test Adapter(developed by Northrop Grumman DSD) which issimple and reliable, and allows the Unit Under Test tointerface with the versatile Universal Power SupplyTester.

Vertically Integrated Test Equipment 33

Northrop Grumman DSD developed an alternative ap-proach for test support by merging three separate testequipment developments. The Vertically Integrated TestEquipment combines (1) the common tester for the fac-tory and depot support of the AN/ALQ-135, (2) thegeneral purpose, electro-optical test asset product, and(3) the integrated family of test equipment, general pur-pose automated test equipment product line.

Circuit Card Assembly: Conformal Coating 33

In 1996, Northrop Grumman DSD acquired a NordsonSelect Coat System to automate its conformal coatingprocess and eliminate environmental hazards. This mi-croprocessor-controlled system uses a robotic five-axisspray head to selectively apply conformal coating, andutilizes a low pressure, non-atomized spray to flow coatthe circuit card assemblies.

Electro-Optical Flexible Assembly Processes 34

Northrop Grumman DSD is in the process of imple-

menting a flexible manufacturing environment for thedevelopment of electro-optical assemblies. This envi-ronment will utilize a cellular approach and the devel-opment of several flexible capabilities including tool-ing, alignment systems, and test systems.

Encapsulation and Impregnation 35

Northrop Grumman DSD has implemented a numberof improvements for its encapsulation and impregna-tion processes. Among these are Statistical ProcessControl; Design for Manufacturability for all new prod-uct types; use of plasma etching to prepare part sur-faces; and the empowerment of operators.

J-STD-001 Workmanship Training 35

In April 1997, a block contract change for the ALQ-135 program provided the company with an opportu-nity to revise its training practices and transition to theJ-STD-001 Workmanship Training. This approach en-abled the company to develop dual certification for op-erators and inspectors, establish a streamlined trainingprogram, and create a more flexible workforce.

Magnetics 36

Northrop Grumman DSD underwent a fundamentalparadigm shift in its practices for designing and manu-facturing magnetic components. Improvements includethe empowerment of operators to perform 98% of allin-process inspections; plasma etching of components;use of robust materials; and performing surface prepa-ration on a lot basis.

Material Control and Kitting 36

In 1989, Northrop Grumman DSD implemented theStorage Tracking Automated Retrieval System as partof the company’s total quality effort. This system pro-vides on-line, real-time transaction processing. Fea-tures include first-in-first-out logic, lot control, serial-ization, visibility of shelf life, product by program, andoff-site stock locations.

Statistical Process Control 37

Northrop Grumman DSD’s introduction of a fully inte-grated Statistical Process Control system into the mainproduction floor was completed in 1994, and is cur-rently being expanded to other shop operations areas.This system provides a method for collecting real-timedata and enables real-time assessment of productquality.

Engineering Staffing Projections 37

Northrop Grumman DSD recognized the need to effi-ciently and effectively allocate engineering personnelthrough its growing program environment. By imple-

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menting Engineering Staffing Projection practices, thecompany supports its product lines with teams of coreindividuals possessing product knowledge and heritage,as well as optimizes the availability of engineers’ criti-cal skills and moves them quickly across projects.

Product Operations Depot 37

The Product Operations Depot is a service organiza-tion within Northrop Grumman DSD that repairs andretrofits line replaceable units (e.g., control oscillators,radio frequency amplifiers) and shop replaceable units(e.g., modulators, power supplies) for various custom-ers. The Depot is also working to reduce and stream-line the contract data requirements list deliveries for itscustomers by providing contract data in an electronicformat.

Shelf Life Management System 38

In 1980, Northrop Grumman DSD developed the ShelfLife Management System which sets the shelf life ofmaterials. The system is flexible so it can adapt to tran-sition programs, and provides users with material clas-sification, shelf life definitions, labeling procedures,procedures for change, and storage/handling require-ments.

Technology Planning 38

Technology Planning is a disciplined process for theplanning and execution of internally funded technol-ogy development. The process is closely tied to thedevelopment of the Long Range Strategic Plan and theAnnual Operating Plan. Technology Planning includesthe definition of specific needs and requirements forspecific product lines; the ranking of those requirements;and their translation into specific technology develop-ment objectives.

Electronic Command Media Web 39

In 1993, Northrop Grumman DSD first implementedan electronic documentation system which evolved intoan Intranet-based documentation system known as theCommand Media Web. This centralized controlled sys-tem provides site-wide access to the most current ver-sions of corporate, sector, and departmental commandmedia; forms; and other general interest information.

Employee Development and Recognition 39

Northrop Grumman DSD has instituted various Em-ployee Development and Recognition programs. Ini-tial efforts began with educational classes at the localcommunity college and expanded into graduate degreework. Additionally, the company established formalprograms to recognize and award its employees for out-standing performance on the job.

Environmental and Safety Web-Based 40Interactive Training

The Environmental and Safety Web-Based InteractiveTraining is an environmental awareness training mod-ule that incorporates multimedia (e.g., voice, image,video) and interactive testing in a web-based format.Deployed over the company’s Intranet, this effectivecompliance tool allows employees to participate in en-vironmental and safety training sessions at their owntime and pace.

Intranet Program Review System 40

The Intranet Program Review System is an on-linemethod for reporting program status on selected projectswithin Northrop Grumman’s Electronic Sensors & Sys-tems Sector. This system defines a standard programreporting format which is used for monthly status, busi-ness area reviews, vice presidential quarterly programreviews, and corporate program reviews.

Material Acceptance: Dock to Stock 41

In 1996, Northrop Grumman established the MaterialAcceptance: Dock to Stock. This inspection-free ma-terial acceptance system shifted the emphasis for prod-uct acceptance from the company to the suppliers.

Operations Programs Integrated Product 41Team

The Operations Programs Integrated Product Team isresponsible for providing direction and coordination forall of Northrop Grumman DSD’s operational activities.The Team provides the insight and support required todevelop new programs and transition them to full-scaleproduction.

Product Data Management 42

In 1996, Northrop Grumman DSD initially implementedProduct Data Management as part of the Modular Fac-tory for Electronic Warfare Component Manufacturinginitiative. Several systems enhancements have beencompleted including upgrading to a web-browser ver-sion; Intranet access; site-wide drawing and documentviewing capability; and on-line viewing and mark-upof 3-D drawings. These efforts helped to establish Prod-uct Data Management as the routine method for con-ducting business in current and future programs.

Software License Verification Process 42

To reduce the potential for liability under the currentsystem, Northrop Grumman DSD is developing a Soft-ware License Verification process which is expected tobe implemented in July 2000. The process will use acentralized automated system to effectively control thecompany’s licensed software.

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Strategic Planning 42

The Strategic Plan is used to document the OperationsDepartment’s manufacturing vision from 2000 to 2005,as well as the strategy and specific plans needed to imple-ment that vision during the next two years. NorthropGrumman DSD uses this plan as a focus tool in guidingthe allocation of resources and in establishing the per-formance objectives for employees.

Supplier Rating System 43

In 1993, Northrop Grumman DSD created a SupplierManagement Program designed to minimize incominginspection, reduce the company’s supplier base, anddevelop a supplier recognition program to reward su-perior performance. Key to this program is the Inte-grated Supplier Rating System, which measures sup-plier performance for delivery and quality.

Point of Contact:

For further information on items in this report, pleasecontact:

Mr. Thomas Fallon, Jr.Northrop Grumman CorporationElectronic Sensors and Systems SectorDefensive Systems Division600 Hicks RoadRolling Meadows, Illinois 60008Phone: (847) 259-9600 x5628Fax: (847) 506-7972E-mail: [email protected]: http://www.northgrum.com

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Design

Application Specific Integrated Circuit DesignCapabilities

Application Specific Integrated Circuit (ASIC) designcapabilities have become relatively common in response tothe demand for small, high-performance electronics inDepartment of Defense (DOD) systems. However, theNorthrop Grumman, Defensive Systems Division (DSD)has effectively prioritized its efforts to focus on clientrequirements. The company’s well-integrated ASIC de-sign capabilities (e.g., analog, digital, mixed signals) alsoprovide many benefits for its existing products includingimprovements to performance, cost, reliability, repeatabil-ity, weight, and volume.

Northrop Grumman DSD refined its capabilities by in-corporating a variety of elements into itsprocess. These elements include experi-enced personnel, computer aided design(CAD) tools, a design database, and strategicfoundry relationships. The company alsouses system performance to take full advan-tage of available component performance,while providing repeatability and reducinglabor requirements for the tailoring of radiofrequency (RF) and digital functions. Byreducing ASIC costs, Northrop GrummanDSD decreased production costs by a 3:1factor and increased reliability by a 10:1factor. Reliability improvements primarilyinvolve the reduction of component levelsand associated interconnections.

Since implementing its ASIC design capa-bilities, Northrop Grumman DSD has produced consis-tently good yield rates with timely deliveries. In addition,detailed knowledge and the monitoring of customer priori-ties enable the company to select the most appropriatedesign techniques and methodologies. Combined withgood foundry vendor relationships, Northrop GrummanDSD can effect trade-offs that best suit its client require-ment profiles. The company also uses available analysisand simulation tools to ensure success, and revises tech-niques for best results as industry processes evolve.

Circuit Card Assembly: Design Team

During 1995, Northrop Grumman DSD determined thatits circuit card assembly (CCA) design and fabricationprocess incurred unwanted costs and scheduling impacts.To streamline and develop a more efficient process, thecompany set up an integrated process team for CCA design.

This cross-functional team, with representatives fromevery discipline connected with CCA design and fabrica-tion, invoked a structured process. A key achievement isthe team’s commitment to work as a group to pull the designthrough the entire process, rather than passing the designfrom one stage to the next. Through its iterative efforts, thedesign team developed an efficient and structured processfor the company’s CCA design cycle. Sequential applica-tions of this process have successfully achieved progressiveimprovements. Discrete portions of the process include

design (e.g., electrical, mechanical); physical implementa-tion (e.g., printed wiring board [PWB] layout); andfabrication.

Key features of the CCA design and fabrication processinclude:

• A designated cross-functional team for each CCA thatowns the design.

• A process roadmap that fully defines the sequence ofactivities in the CCA design process.

• Incremental design reviews that serve as gatewaysbefore proceeding to the next step.

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Figure 2-1. Circuit Card Assembly: Design Cycle

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• A sequential, two-step process for the PWB layout withpart placement finalized before interconnections arerouted.

• Process metrics which are established, monitored, andcontinuously refined.

Since being implemented in 1995, Northrop GrummanDSD’s schedule for design was reduced by approximatelyfour months; for PWB layout by more than one month; andfor fabrication by over two months. Figure 2-1 illustratesthe CCA: Design Cycle reductions of 52% through 1999.By reducing the scope of effort within certain activities, thecompany can tailor its process programs without down-grading the importance or quality of their outputs. When-ever tailoring is considered, Northrop Grumman DSDactively assesses the risks. In addition, active ownership ofthe design empowers and encourages team members toinnovate and achieve improvements in the process.

Electro-Optical/Infrared TechnologyDevelopment

In the past, Northrop Grumman DSD’s practices inElectro-Optical/Infrared (EO/IR) Technology Developmentfollowed traditional military procurement procedures. Theseprocedures involved many stages of prototype work; thedevelopment of platform/application-specific hardware; areactive approach to customer needs; and minimal involve-ment with external vendors. Today, Northrop GrummanDSD’s revised practices in EO/IR Technology Develop-ment emphasize the anticipation of customer needs as wellas cost and schedule controls.

New product features and customer needs are anticipatedand proactively developed by using Internal Research andDevelopment (IRAD) funding. Modular system develop-ment allows a single system design to encompass manydeployment platforms and streamlines upgrades. Strongvendor teaming at all stages of development assists instreamlining the design, and avoids schedule and resourceimpacts from miscommunication or unpreparedness.

Since implementing the revised practices, NorthropGrumman DSD has streamlined its prototype developmentby carefully assessing risk, and by designing and buildingprototypes to the highest possible level of completionduring each design iteration. In addition, the bypassing ofmultiple breadboard and brassboard stages generates sig-nificant cost and schedule savings. The company’s proto-types are capable of undergoing field testing with minimalspecial test equipment, and are more representative of thefinal product. Several programs at Northrop GrummanDSD have successfully implemented this design practice,including Wanda™, a pointing/tracking system; Viper™, asolid state laser; and Litening II, a forward looking infraredpod.

Infrared Countermeasures Simulation and Test

Heat seeking missiles are designed to track bright infra-red aircraft sources such as engines and exhaust plumes. Asthe target maneuvers, the missile uses the changes in thetimings of the detector modulation to track the target anddetermine course corrections. Infrared countermeasures(IRCM) systems, or jammers, broadcast an infrared beamwhich is modulated with timing characteristics that aresimilar to those used by the missile. If successful, thejammer flashes will either cause the missile to severely alterits flight course (causing a miss) or seek a false targetposition (optical breaklock). In the past, Northrop GrummanDSD performed IRCM simulations in an open-loop con-figuration with limited aircraft vulnerability and techniqueassessment capability. In addition, no measure of missdistance was possible with an open-loop test, which leads toover-design of the jammer source. Today, the companyemploys unique, multi-level simulation facilities to supportIRCM development. These facilities ensure successfulsimulations and live-fire tests under customer scrutiny.

Northrop Grumman DSD’s approach has minimized thedevelopment cost and design-to-production schedule, whilemaximizing the cost-performance trade-off. The companyuses a variety of hardware-in-the-loop simulation resourcesand digital simulation modeling tools for developing RFand IR countermeasures; refining waveform parameters;and evaluating effectiveness against threat systems. Manyof these resources were built and are maintained by NorthropGrumman DSD specifically for these purposes. In addition,government furnished equipment and software legacymodels are used to support the company’s initiatives andcontracted program efforts.

The company developed and maintains four levels of IRmissile simulation of increasing complexity and fidelity.These simulations involve the following test configura-tions: an open-loop rate table facility; an atmosphericoptical path; an all digital-based, closed-loop simulationsuite; and a full degree-of-freedom hardware closed-loopfacility. Each is used at a different stage in the evolution ofthe IRCM design.

The open-loop simulation is used in the requirementsdefinition phase, and the effects of the atmospheric trans-mission are determined with the aid of the rooftop testingfacility. During the design phase, the all digital simulationcapability is used to determine the subsystems sensitivity.The design optimization is accomplished with the aid of theclose-loop simulation and then subjected to live-fire verifi-cation. These tools are continually upgraded and adaptedby Northrop Grumman DSD as the latest threat informationis obtained through traditional channels as well as uniquetesting opportunities.

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Miniaturized High Power Amplifier Design andManufacturing

In the past, Northrop Grumman DSD created transmitter/amplifier assemblies by interconnecting separately pack-aged components into a large line replaceable unit or shopreplaceable unit. These assemblies were quite large in sizeand volume, which often limited or prevented their use intight volume applications. In addition, the assembliestypically encountered high voltage interconnect problems.To resolve this situation, the company pioneered a newprocess for designing and manufacturing miniaturized highpower amplifiers that use microwave power modules(MPMs).

Northrop Grumman DSD’s MPM approach integrates asolid-state front end with a small, high-efficiency travelingwave tube and a miniature integrated power conditionerinto a common package. By using a smaller single case, thecompany reduced the number of high and low voltageinterconnects. Additionally, the modular construction ofMPMs decreases integration time and simplifies trouble-shooting. The high degree of commonality between differ-ent MPM types results in the economies of scale for reducedcost and inventory, and a well-characterized materialhistory.

The miniaturized high power amplifier design and manu-facturing approach fosters innovative system architectureswhich were not feasible with the previous method. Sinceimplementing the MPM approach, Northrop GrummanDSD achieved a 21% reduction in design cycle time; a 48%reduction in total hybrid labor; and a 62% reduction inmanufacturing cycle time. All future electronic warfaresystems will employ towed and/or remote located transmit-ters. The MPM approach willenable the company to providevery high degrees of miniaturiza-tion and performance.

Modeling and Simulationfor RequirementsDefinition

Previously, Northrop GrummanDSD used past experience and lim-ited analysis to formulate the sys-tem requirements for electronicwarfare systems. Typically, thesystem requirements were eitherunderestimated leading to poorsystem performance, or overesti-mated leading to excessive system

cost. Today, the company combines digital modeling andsimulation with engineering analysis to develop and ensureaccurate system requirements.

Building on its 18-plus years of experience in modelingand simulations, Northrop Grumman DSD developed alibrary of modeling and simulation tools to support itssystem requirements definition tasks. These tools haveenabled the company to reduce the cost of test and evalua-tion activities. The specifics of electronic warfare systemsrequire knowledge in the fundamental areas where thesimulation tools will be applied: the phenomenology, en-gagement, and mission levels. Although system require-ments are derived from all sources, they generally areprocessed through these levels of simulation.

Using primarily government sponsored and supportedmodels, Northrop Grumman DSD is developing modelsand methodologies to address specific issues and pursuemultiple approaches to confirm, validate, and cross-checkthe results. Figure 2-2 shows a high-level block diagram forcountermeasure technique development. Modeling in thephenomenology domain is geared toward physical assess-ments and environmental impacts on system performancesuch as effects due to clutter, weather, terrain, aerodynam-ics, or obscuration. System effectiveness requirements arederived through direct interaction with each applicableweapon system through all phases of an engagement, in-cluding search, acquisition, target tracking, missile guid-ance, and intercept. Operational system requirements areestablished by modeling a representative operational mis-sion scenario and observing multiple threat handling char-acteristics and platform survivability.

Each flight test costs approximately $50,000 to $60,000.Since implementing the modeling and simulation for re-

Threat Analysis

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CM Technique Improvements

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Closed Loop/ Flight Testing

Figure 2-2. Countermeasures Technique Developmet

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quirements definition, Northrop Grumman DSD has sig-nificantly improved the performance level of systems beingdesigned and reduced the number of flight tests required.

Monolithic Microwave Integrated CircuitDesign Tools

Previously at Northrop Grumman DSD, designing cus-tom circuits and monolithic microwave integrated circuit(MMIC) prototypes were not cost-efficient practices. Timeand associated cost were a significant part of the overalldevelopment cost, and prototyping required the mainte-nance of a large Research & Development stock. In the1990s, the company developed MMIC design tools toimprove these practices.

In 1992, Northrop Grumman DSD established the MMICCell Library which helped reduce the time and cost associ-ated with designing custom circuits. Containing more than300 of the most frequently used designs, the MMIC CellLibrary facilitates MMIC cell reuse and minimizes circuitre-invention. In addition, the designer has access to allMMIC foundry processes’ information required for reuse.The MMIC Cell Library enables the company to reduce itsdesign time by one-third compared to the previous practice.

In 1996, Northrop Grumman DSD developed the RapidPrototyping System which increased design and prototypingefficiency. The company implemented this prototypingmethod for fabricating MMIC-based subassemblies. Acomplete inventory of custom and off-the-shelf GaAs MMICdevices, components, and thin film networks is maintainedin the MMIC Research & Development Prototype Labora-tory. The Rapid Prototyping System enables the companyto produce prototype MMIC hardware in a matter of hoursfor various internal and external customer requirements.

Additionally, Northrop Grumman DSD implemented aPeer Review Procedure for MMIC design that eliminatesmore than 90% of the design errors during tile creation.This procedure also eliminates about 15% of the designerrors before tile design release, and complements theavailability of the reference libraries. Designers haveassigned mentors who guide them in the use of tools andpractices. All libraries are electronically checked on aweekly basis for updates or changes. After a tile is created,a final layout design rule check is performed. Stream datais then converted back and again verified against the origi-nal data. Once the tile data is committed to fabrication, thisdata along with any modifications created at the foundry isstored in a reference library.

All MMIC design schematics, simulations, layouts, andsubsequent measurements are documented in a MMIClibrary database. Since implementing its MMIC designtools, Northrop Grumman DSD has decreased design cost

by 20%; design cycle time by 40%; manufacturing cost by40%; manufacturing cycle time by 40%; and inventory bymore than 30%.

Test

Instrumentation and Data Reduction ToolsDevelopment

Seeking a way to collect and analyze data in a timely andcomprehensive manner, Northrop Grumman DSD took aconsolidated approach which encompassed both the labo-ratory and field environments. The company established amethod that addresses the data collection and processing ofRF and IR instrumentation.

The basis for this practice incorporates a compositeassessment of system requirements, system objectives, andcustomer verification and validation (V&V). Early identi-fication of requirements (both system and data) aid inmaturing the product and associated instrumentation anddata reduction development. A clear statement of objec-tives, likewise, assists in prioritizing the development ofinstrumentation and data reduction features. Additionally,a similar focus on customer V&V needs enables the finalproduct to perform equally well in the laboratory and fieldenvironments. The associated commonality or reduction ofsupport equipment brings the expected cost avoidancewhile also establishing a robustness criteria, normally onlyassociated with very mature laboratory instrumentation anddata collection.

Data reduction is available in real time with prompt post-mission environments available to the customer. To ad-equately support product requirements, instrumentation isrequired to support a range of features that encompassescompany development and integration as well as customerdevelopment and acceptance test needs. The complexity ofRF and IR testing dictates very capable data processing andrecording provisions. Both features contribute to real-timeanalysis and detailed post-mission analysis capabilities.

Incorporation of laboratory, development, and field testcapabilities within a common hardware item provides sched-uling ability to support the customer’s program scheduleright from the outset. Provisions have included operationonboard aircraft as well as unmanned units that telemeterencrypted data. Ruggedized enclosures have permittedoperation in rigorous environmental locations and condi-tions.

Software routines provide significant flexibility in theselection and use of operational modes and screen presen-tations to suit pre-flight, in-flight, and post-flight condi-tions. The inclusion of capable data processing and record-ing provisions supports a variety of diagnostic and analyti-

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cal features that demonstrate the readiness to enter flighttesting. The selectable displays of real-time parameterspermit early confidence in results as well as efficientretesting where required. Based on lessons learned, NorthropGrumman DSD has already identified improvements thatcan enhance its next generation of instrumentation.

Production

Best Value Manufacturing

Like most defense contractors, Northrop Grumman DSDmanages multiple programs within a single facility. In thepast, each program operated under its own quality planbased on individual contract requirements; specified itsown array of redundant testing, reporting, and inspectionrequirements; and generated its own manufacturing pro-cesses for specific customer requirements. This approachproduced redundant processes and failed to recognize thesimilarity among the programs. To resolve this situation,Northrop Grumman DSD established Best Value Manufac-turing (BVM) as a quality assurance method for the fabri-cation, assembly, inspection, testing, and delivery of elec-tronic systems, components, and spares which meet orexceed specified customer requirements. The method wasdeveloped through a culmination of lessons learned duringthe manufacture of over 4,000 electronic warfare systemsas well as a teaming effort with suppliers and customers.

BVM specifies a single, common set of manufacturingand quality assurance (QA) processes based on commercialand industry standards, specifications, and test methods. Inaddition, BVM fosters the DOD’s Single Process Initiative(SPI) and is applicable to current/future military and com-mercial products produced at Northrop Grumman DSD.BVM supports performance-based specifications, allow-ing the company to determine the minimum test, inspec-tion, and data requirements for the product to meet end-itemrequirements. Next, BVM passes quality responsibility forthe manufactured product to the (internal or external)operator or organization producing the product. Thisapproach greatly reduces the need for independent over-sight, excessive data requirements, and other non-value-added costs. BVM does not, however, change the specifiedperformance or reliability required by the applicable sys-tem or end-item specifications (e.g., power levels, frequen-cies, vibration, temperature range, reliability levels) for thepiece-parts, assemblies, or final installed system.

Also used for contract proposals, BVM enables NorthropGrumman DSD to specify common manufacturing andquality assurance packages for all new programs, but stillprovide flexibility for tailored requirements. The maindifference from the previous method is that each tailored

requirement requested by the customer incurs a specificcost break-out for changing the standard BVM package. Asa result, the customer can see the actual cost associated withthe special request, which helps them make informed deci-sions on whether the benefit is worth the extra cost.

Northrop Grumman DSD is currently using BVM on itsproduction ALQ-135 and ALQ-162 programs, and hasrecently submitted an SPI proposal to incorporate BVM onall programs. Since implementing BVM, the company hasreduced the cost of the ALQ-162 Block 4 as much as 50%from Lot 3 by eliminating unnecessary tests, inspections,and reports. Northrop Grumman DSD also decreased itsQA organizational size by over 70% without adverselyaffecting product quality. Concurrently, the companyreduced material lead times by 50% to 70%; incomingbacklogs from 2,000 to 34 lots; and incoming inspectorsfrom 70 to five. The QA, Program Office, and Contractsorganizations are working together to ensure that all pro-posals generated for future business specify the BVMapproach.

Calibration Delinquencies

Calibration delinquencies are the result of equipmentbeing in use beyond the calibration due date, and aredirectly related to the scheduling method for the calibrationprocess. Previously at Northrop Grumman DSD, eachequipment custodian received a due list that indicatedwhich test equipment needed to be calibrated within thenext 30 days. This handwritten method provided insuffi-cient notification and was prone to data entry errors. As aresult, delinquent items were a common occurrence. Latenotices were then sent to organizational supervisors fol-lowed by second notices to the department heads. Thisreactive approach also created a strained working relation-ship among all involved parties.

In late 1993, Northrop Grumman DSD revised its methodfor scheduling equipment calibrations by setting up a two-step process. On the first day of each month, the equipmentcustodians receive a 45-day projection of the laboratory’scalibration needs. Additionally, a short list is posted dailyand alerts the custodians to items due that day or the next,which have not been returned to the calibration laboratory.This calibration scheduling method enables three equip-ment custodians to handle over 6,000 items.

By using a proactive method, Northrop Grumman DSDdecreased the number of delinquent items from more than40 in 1993 to zero in 1996, and continues to maintain thislevel today. Additional benefits from this method includetimely out-of-tolerance identification, reduced risk of usingout-of-tolerance equipment, a 30% reduction in adminis-trative tasks, and a good working relationship among allinvolved parties.

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Calibration Intervals

Previously, test equipment at Northrop Grumman DSDwas calibrated on an arbitrarily chosen interval of sixmonths. If a piece of equipment was within its tolerancelimits three consecutive times, then the calibration intervalwas increased by one month. If it was out of tolerance once,then the calibration interval was decreased by one month.This process resulted in confusion due to having manydifferent intervals for the same equipment models. Addi-tionally, the company experienced frequent manufacturingtest station shutdowns for calibrations; numerous requestsfor priorities and due date extensions; a backlog of morethan 1,000 items; and an increase in items being outsourced.In 1994, Northrop Grumman DSD developed a revisedmethod to optimize test equipment calibration intervals andmaintain a maximum in-tolerance rate.

Northrop Grumman DSD’s method employs the U.S. AirForce’s 33K-1-100 guidelines document as the basis forsetting the initial calibration intervals. In addition, thecompany uses a five-year analysis for each family of testequipment to adjust the intervals. All equipment calibra-tion needs are reviewed quarterly to determine if the equip-ment is still in excess of the 95% in-tolerance limit (perfamily of equipment).

Since implementing its revised method, NorthropGrumman DSD has realized a 60% reduction in backlog; a50% improvement in turnaround times; and a reduction incalibration outsourcing which has increased quality. Inaddition, the average calibration interval has increasedfrom nine months in 1994 to 16.9 months in 2000, andmanufacturing test station shutdowns for calibrations nowoccur only twice a year.

Circuit Card Assembly: Cleaning

Prior to the Montreal Protocol, Northrop Grumman DSDused Freon TMS to clean contaminants (predominatelyflux) from CCAs. This procedure was performed after eachsoldering operation within prescribed time limits. With theinitiation of ozone depleting chemical (ODC) regulatorymandates in the mid-1990s, the company began developinga non-ODC cleaning process to replace its traditional chlo-rofluorocarbon cleaning methods.

Northrop Grumman DSD replaced its previous CCAcleaning method with an automated semi-aqueous processthat used a non-ODC compound (Axarel) and a closed-loop, zero-discharge system for the process liquids. Thisapproach improved the cleaning process capability twenty-fold, eliminated more than half of the associated operations,and decreased ODC emissions by 39 tons per year (Figure2-3). Additionally, the closed-looped system provided a

significant reduction in process waste. The entire systemonly needs to be shutdown approximately every 12 to 18months for cleaning and solvent replacement.

Figure 2-3. In-line Cleanliness Data

By changing to an automated, non-ODC-based cleaningsystem, Northrop Grumman DSD increased its cleaningperformance, reduced the cleaning operation steps by 56%,and realized more than $2 million in conservation savingson ODCs. Lessons learned from using this process include:

• Equipment design and ventilation helped minimize thecleaning agent odors.

• Since closed-loop filter membranes did not last as longas expected, they were replaced with carbon/mix bedresins.

• Bacteria growth must be monitored in solution tanks,and can be controlled through periodic heating andchlorine-flushing during solution replacement.

• Although higher temperatures clean and rinse better,they must be weighed against increased air emissions.

• Application limitations exist with some assemblies dueto non-submersible parts.

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Circuit Card Assembly: Flexible Manufacturing

In 1985, Northrop Grumman DSD produced approxi-mately 110 card assembly types for its programs. PrototypeCCAs were typically assembled in Engineering with lim-ited involvement by Operations personnel. Process capa-bilities were validated on new designs during a first build.Over the years, the development and manufacture of CCAsdrastically increased in complexity and variation. To meetthis challenge, the company developed a unique CCAflexible manufacturing line to meet the entire site’s needsfor CCA production. Today, Northrop Grumman DSDproduces more than 530 different card assemblies.

The CCA flexible manufacturing line is designed forlow-volume, high-mix environments. Operator training,equipment selection, and process development are targetedto achieve the versatility necessary to process prototype,pre-production, or experimental assemblies for AdvancedEngineering as well as the substantially higher productionquantities that may become commonplace in future pro-grams. Additionally, the line’s arrangement, as a series ofhighly flexible islands of automation, provides the com-pany with the ability to design and implement new leanprocesses which are not constricted by existing equipmentand/or process flows. Thus, the CCA production line iscompletely independent of programs, packaging technol-ogy, specification requirements, or other factors; and canaccommodate new state-of-the-art equipment technologieswith only minor disruptions.

To ensure that designs produced by Engineering remaincompatible with the efficient production of the CCA line,Operations instituted a Design for Manufacturability pro-cess. Producibility engineers within Operations act asliaisons between Engineering designers and the CCA pro-cess’ engineering function to develop and impose designguidelines; review design drawings for manufacturability;and act as a coordination point for prototype and pre-production builds. The latter responsibility enables theliaisons to be aware of process results, thereby stayingcurrent on production capabilities and the company’s abil-ity to build new technologies efficiently.

The CCA flexible manufacturing line significantly im-pacts Northrop Grumman DSD’s production and develop-ing programs. Other Northrop Grumman site designs maynow be produced at the DSD facility as new programs aremoved in. The technology transfer between Engineeringand Operations ensures timely funding of new processdevelopment activities to meet production schedules. De-sign for Manufacturability activities have also providedpart and design standardization benefits. In one case, thecompany was able to eliminate more than 20% of the uniquecomponents from a product design. Prototype builds cannow be used to validate manufacturing process capabilities.

Components Obsolescence Management

In 1975, the defense industry had a 17% share of a $4.2billion semiconductor market. Twenty years later, thispercentage shrunk to 0.7% ($1.1 billion) of a now $150billion semiconductor market with the commercial industryconsuming the balance (Figure 2-4). Demand for specificintegrated circuits (ICs) from the defense industry wasovershadowed by the commercial industry’s requirements,despite increasing device complexities of new militarydesigns. Additionally, defense requirements called for 20-year replacement part availabilities even though the typicallife cycle for logic family parts were three years and eightyears for passive components. With IC parts being discon-tinued at a rate of 34,000 per year in 1998 (an average of 153daily discontinuance notices), Northrop Grumman DSD setup Components Obsolescence Management to addressdiminishing manufacturing sources.

Northrop Grumman DSD previously used performanceto determine design, and then used design to determine theparts needed. The company’s new approach is to useperformance and cost goals to determine design and theparts needed. The goals of Components ObsolescenceManagement are to:

• Decrease product and development costs by reducingthe number of active parts.

• Decrease the number of suppliers.

• Shorten product time-to-market by reducing approvaltime.

• Improve product quality by controlling the number ofpreferred parts.

• Improve component information knowledge and speedof part selection during design, procurement, andmanufacturing.

Components Obsolescence Management uses varioustools that assist Northrop Grumman DSD’s personnel in theselection of design components for programs. The Pre-ferred Parts Selection List (PPSL) uses various factors (e.g.,hardness, reliability, safety, platform) to maintain thecompany’s current database of over 17,000 parts. ProductData Management tools (e.g., Aspect’s Explore, TACTech,Metaphase II) help standardize parts as well as reduce oreliminate parts with short life cycles. Additionally, com-prehensive information such as obsolescence, re-use, lifecycle data, parametric data, cost, reliability, approvedsources, and diminishing manufacturing sources can betracked, sorted, and compiled by using these managementtools.

Since 1996, Northrop Grumman DSD’s Intranet websitehas provided design and procurement personnel with infor-mation on obsolete specifications; changes in part selec-tions, derating, and applications; hot links to other websites

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for updated information; and obsolescence issues. By usingthe Intranet website, design personnel can also access thePPSL to research and select parts for new designs. Thissystem can be customized to display specific parts listsbased on the program of interest, thus preventing extrinsicparts from being selected. Personnel can also use a stan-dardization effectivity program to get a rough indicatorrating on how well their design has utilized standardcomponents, even providing comparisons with pre-vious designs.

Components Obsolescence Management has made animmediate impact at Northrop Grumman DSD. Of the 35systems in production during the last five years, none haverequired an obsolescence-related redesign. Based on atypical three-redesigns-per-program requirement, the com-pany achieved a cost avoidance of around $52 million. Inaddition, the on-line PPSL information has generated anestimated annual savings of 24,000 hours in engineeringresearch. By using the collective industry knowledge ofthese management tools, Northrop Grumman DSD contin-ues to provide fully supported, quality products which arecost efficient and competitive.

Operator Self-Inspection and ProductAssessment Program

Prior to June 1997, Northrop Grumman DSD’s in-lineinspections required a quality control inspector to perform100% product checks at identified operations throughoutthe build of a product. Although production operators andinspection personnel received identical workmanship train-ing, only the operators were responsible for their particularapplication with no accountability for the product accep-

tance. To improve this process, Northrop Grumman DSDtransferred the responsibility of product in-process accep-tance from the inspection organization to the manufactur-ing organization by establishing the Operator Self-Inspec-tion and Product Assessment program.

The Operator Self-Inspection and Product Assessmentprogram utilizes the production operators’ experience andtraining for product acceptance throughout the manufactur-ing process. This approach builds quality into the productrather than tries to inspect quality into the product. The

program provides formaltraining and certificationfor the operators. Oncethey successfully com-plete the classes, opera-tors are issued a uniquestamp for acceptance ofproduct and then must un-dergo 30 days of on-the-job training. Afterwards,operators can performtheir own in-process in-spection, acceptance,and sign-off. Inspec-tions are limited to thetasks in which the certi-fication is held.

The Operator Self-In-spection and Product Assessment program reinforces thepersonal responsibility of tasks. As a result, inspectionpersonnel have become assessors of the process and prod-uct, while acting as coaches to the operators. Rather than100% in-line inspections, random daily assessments ofhardware and documentation are made to detect any errorsmade by operators during the manufacturing processes.Corrective action can then be done in real time while thework is still in the pipeline. The program also enablesNorthrop Grumman DSD to use defect summaries for itsoperators which provides a systematic method for identify-ing training needs.

Production Process Simulation

Previously, Northrop Grumman DSD used various low-level tools to make production capacity and product mixdecisions. Spreadsheet models assumed level-loaded tasksby using constant manpower throughout the productioncycle. Fixed cycle times did not take into account resourceavailabilities. Equipment tended to be suboptimized whichreduced the overall operation’s efficiency. Any gaps ininformation were filled in through management judgementand experience. As a result, these tools failed to realistically

Figure 2-4. Declining Military Presence

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depict the true dynamics and interrelationships of the manu-facturing processes. In 1992, the company resolved thissituation by implementing simulation modeling software.

Simulation modeling allows system developers and ana-lysts to predict the performance of existing or proposedsystems under different configurations or operating poli-cies. This process, carried out before the existing system isactually changed or the new system is built, minimizes therisk of unforeseen bottlenecks, under- or over-utilization ofresources, and failure to meet specified system require-ments. Northrop Grumman DSD uses its simulation capa-bility to support equipment purchases; view the productionimpact of a changing product mix; analyze and reduce cycletimes; review scheduling practices; select optimal lot sizes;analyze staffing needs; review factory layout changes; andassess just-in-time methodologies. By using statisticaldistributions to define manufacturing variabilities, the com-pany increases the validity of the simulations.

Advanced uses of the Production Process Simulationinclude data downloads involving inspection and test yields,non-labor related wait times, and weekly batch loading datafrom the Material Requirements Planning (MRP) system.Northrop Grumman DSD also created two large models: (1)a Shop Operations model with over 1,000 assembly varia-tions, and (2) an MIC/Hybrid model containing more than850 assemblies. By employing these models and Design ofExperiment techniques, the company can perform sensitiv-ity analyses to determine the impact of up to ten input factorchanges.

Since implementing Production Process Simulation,Northrop Grumman DSD has completed more than 50simulation modeling projects. Among the capabilities ofthis predictive tool are equipment justification, fine tuningof existing programs, future project requirements in re-sources and training, and layout improvements. In onecase, the company used the modeling simulation to analyzeits conversion plan for the non-ODC cleaning of CCAs.The simulation showed that current and future productionlevels could be supported with just two Detrex batch clean-ers. Prior to the simulation, Northrop Grumman DSD hadplanned on purchasing three or more batch cleaners. As aresult, the company realized an avoidance cost of $100,000in capital expenditures.

Facilities

DSD Contingency Planning

Prior to 1997, Northrop Grumman DSD lacked an inte-grated emergency management system plan. Althoughseveral independent plans existed, they were maintained bydifferent groups within the organization. Security con-

trolled some areas while Environmental Health and SafetyManagement handled others. Since the application of thesevarious plans lacked consistency, employee awareness ofemergency management activities was low. To resolve thissituation and comply with corporate and regulatory re-quirements, Northrop Grumman DSD developed and imple-mented the DSD Contingency Plan.

This single, integrated plan contains information regard-ing Northrop Grumman DSD’s one million square-footfacility on a room-by-room basis, and provides a floor planshowing the locations of rooms, offices, laboratories, andshops. The DSD Contingency Plan also lists the number ofoccupants in each area; all potential hazards and safetyconcerns; and the names and phone numbers of personnelto be contacted in the event of an incident. An AreaEmergency Coordinator is appointed for each area and isresponsible for auditing and maintaining the information atthat location. In addition, the plan is maintained from asingle source site, and employees can access emergencymanagement information by using the company’s Intranetwebsite. Updates are posted daily to ensure the most currentdata is available.

The DSD Contingency Plan has enabled NorthropGrumman DSD to easily maintain and distribute the latestemergency management information throughout the facil-ity. Employee awareness of emergency procedures havesignificantly increased, resulting in safer working environ-ments. As a safeguard, the company stores duplicateelectronic and paper copies of the DSD Contingency Planat off-site locations.

Energy Management

Previously, Northrop Grumman DSD lacked a formalenergy management program. The company experiencedrecurring high energy costs of $4 million per year; fundinglimitations; and inadequate or insufficient Heating, Venti-lation, and Air Conditioning (HVAC) energy control capa-bilities. In 1994, Northrop Grumman DSD formed anEnergy Management Committee to identify and implementstrategies for reducing energy consumption without hin-dering ongoing business operations or compromising em-ployee safety.

One of the Committee’s accomplishments was the use ofDirect Digital Controls (DDCs) on air handlers, chillers,and boilers. DDCs enabled Northrop Grumman DSD tooptimize equipment performance, extend the life of HVACunits, and provide centralized computer-based diagnosis ofHVAC out-of-tolerance conditions for prompt action. Inaddition, the company participates in peak shaving oncritical summer days. Peak shaving is a conservationenergy program between Northrop Grumman DSD and its

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local power provider. On high-load days, the company isasked by the local power provider to reduce its energy drawoff the grid by 500 kilowatts. To achieve this request, thecompany engages its local backup generators and reducesnon-critical power usage (e.g., hallway lighting) at thefacility. In return, the local power provider pays NorthropGrumman DSD a favorable rate for the power reduction offthe grid.

Additional accomplishments include:• Installing occupancy sensors in conference rooms.

• Using DDCs to turn off lights and HVAC equipmentthroughout the facility during non-business hours.

• Purchasing and storing natural gas through a broker,allowing the company to realize an annual savings of$40,000 to $60,000 since 1995.

• Retrofitting lighting with electronic ballasts and T-8fluorescent lights, allowing the company to replace 40-watt, four-bulb fixtures with 32-watt, three-bulb fixtureswithout compromising light intensity.

The Energy Management Committee also wanted toprovide initiatives that employees could use in their ownhousehold environment. As a re-sult, the company provides articlesand information (e.g., energy pro-grams, energy saving hints) in itsnewsletters as well as on its Intranetwebsite. During Energy Day, aspokesperson from an energy pro-vider interacts with employees toanswer their questions and pro-mote education and awareness.

Since 1994, Northrop GrummanDSD’s cumulative actions on en-ergy management have reducedits yearly energy demand by 7.7million kilowatt-hours, producingan annual savings of $600,000(Figure 2-5). Other projects be-ing explored by the company in-clude co-generation and partneringagreement actions with local util-ity companies designed to upgrade HVAC systems, mini-mize front-end investment costs, and maximize recurringenergy costs. In 1999, Illinois became a deregulated statefor electrical energy. After evaluating numerous electricalenergy providers, Northrop Grumman DSD set up a multi-year contract with one provider which saves the site anadditional $200,000 annually in electricity costs.

Facilities Preventive Maintenance System

Prior to 1994, Northrop Grumman DSD’s preventivemaintenance (P/M) practices involved manually document-ing equipment maintenance records on five-by-eight inchcards. This approach was prone to errors as the cards wereoften misplaced or difficult to locate amongst the thousandsof maintenance records. Manufacturers’ maintenance rec-ommendations were often unavailable. These factors ulti-mately resulted in frequent equipment breakdowns andinhibited the ability to quantify operating and replacementcosts. To resolve this situation, Northrop Grumman DSDimplemented a Facilities P/M system that incorporatesmanufacturers’ maintenance interval recommendations andtracks P/M efforts for all equipment logged into the system.

The Facilities P/M system uses a Maintenance Manage-ment System database to automate the process of recordingP/M information. The system tracks all maintenance re-quests for service, enables the scheduling of maintenancebased on manufacturers’ recommendations, and maintainsthe maintenance information for use in cost-benefit analy-ses. Furthermore, the P/M system inherently provides

organization for the entire P/M effort at Northrop GrummanDSD.

Since being implemented, the Facilities P/M system hasresulted in numerous improvements in Northrop GrummanDSD’s P/M practices including accurate records; additionaldata to support equipment upkeep and replacement actions;improved manpower scheduling; increased equipment lifecycles; and reduced maintenance order backlogs. Thecompany estimates its current maintenance costs at 94¢ persquare foot. The amount of square feet per maintenance

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employee increased from 32,007 in 1995 to 38,708 in 1999,and the percentage of backlogged work orders per monthdropped from 19.7% to 0.33%.

Facilities Service Manual

In the past, the limitation of in-house expertise at NorthropGrumman DSD resulted in significant outsourcing of facili-ties construction projects. Procurement actions were donein a non-competitive manner, while project schedules andcosts were loosely monitored during the project’s execu-tion. In 1987, the growth of the Rolling Meadows facilitynecessitated the development of written policies and proce-dures to govern how in-house construction projects were tobe managed. The development of flow processes andprocess narratives involved cross-functional input fromcustomers, support organizations, and process experts. Thistwo-year endeavor subsequently evolved into NorthropGrumman DSD’s Facilities Service Manual (FSM).

The company developed the FSM to aid in controllingfacilities construction projects from inception to comple-tion. This manual includes information for all aspects offacilities projects including approved contractor listings forsource selection, methods for choosing contractors, ap-proval processes and necessary forms, various flow chartsindicating the project process, as well as stipulations forweekly status reports and formal project status meetingswith process experts, owners, and stakeholders. The FSMalso provides guidelines and direction so process owners,stakeholders, and customers know what to expect and whataction is required at every step throughout the process.

The FSM provides Northrop Grumman DSD with a well-defined and consistent approach to facilities constructionprojects. Since implementing the manual, the company hasimproved customer satisfaction as high as 97% (based onproject feedback) and achieved an annual savings of$200,000 to $300,000 as a result of using competitivebidding procurement practices.

Hazardous Materials Management Program

In the past, Northrop Grumman DSD’s method for man-aging hazardous materials met basic regulatory require-ments, but had limited capabilities and minimal employeeaccessability. This method was also labor-intensive, re-quiring manual tracking and reporting of various datasources (e.g., procurement records, inventory receipt anddistribution records, individual usage records, internal wastedisposal records) to obtain a mass-balance of hazardousmaterials. Although some Material Safety Data Sheets

(MSDS) were available on-line, only a limited number ofworkstations had access to this information. To resolvethese issues, Northrop Grumman DSD established the Haz-ardous Materials Management Program (HMMP).

The HMMP utilizes the Hazardous Materials Manager(HMM), a searchable database and display software pack-age, which provides an integrated and systematic approachto managing hazardous materials activities (e.g., acquisi-tion, day-to-day handling, final disposal, regulatory report-ing requirements). HMM is continuously updated andoffers on-line accessibility for employees through networkcomputers. Among the information available are MSDSimages; digested hazardous information (e.g., carcinogen,mutagen); environmental reporting requirements (e.g.,Superfund Amendments and Reauthorization Act [SARA],National Emission Standard for Hazardous Air Pollutants,volatile organic compounds, hazardous air pollutants); spe-cific chemical composition and percentages; and pollutionprevention data. The HMMP also uses a paperless inven-tory tracking system that integrates with the storage track-ing automated retrieval system, the company’s currentmethod for inventorying its storeroom and productionoperations.

Additionally, the HMMP provides users with a morecohesive set of tools and information. All site environmen-tal and safety command media that deal with hazardousmaterials integrate with HMM, as well as the chemicallabeling system used to transfer information to secondarycontainers when repackaging hazardous materials. Thecommand media which document the HMMP (e.g., chemi-cal hazard communication training; flammable and com-bustible liquids safety; industrial waste management; pol-lution prevention; spill contingency plan) are readily avail-able throughout the facility via the Intranet website.

The HMMP also captures chemical usage informationfrom the site chemical inventory system, enabling NorthropGrumman DSD to quickly and accurately generate envi-ronmental reports. Most importantly, the HMMP allowsusers to monitor the chemical usage necessary to complywith air permit restrictions and achieve significant pollu-tion prevention efforts. These achievements already in-clude elimination of Class I ozone depleting substancesfrom all manufacturing processes; exemption from SARAreporting in 1997 through 1999; and significant reductionsin hazardous waste. Since implementing the HMMP,Northrop Grumman DSD reduced its hazardous wastegeneration from 492.1 tons in 1989 to 19.8 tons in 1998, areduction of 96%. In 1999, the company further reducedthis figure to 8.2 tons, another 59% reduction compared tothe previous year.

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Pollution Prevention Program

Northrop Grumman DSD’s Pollution Prevention (P2)program evolved from a waste minimization subcommitteeinitiated by the Environmental, Health, and Safety Manage-ment (EHSM) in 1987. In the early days of the program, thecompany lacked a dedicated budget for capital and expenseimprovements. P2 projects were proposed to area manage-ment, and approvals were based on the availability of laborand funding. Later, the EHSM established a general proto-col for reducing hazardous materials usage and waste, andafter analyzing the site’s chemical usage information, theEHSM planned and coordinated the projects to reducewaste and emissions. Today, Northrop Grumman DSD hastaken its P2 program a step further by developing theAnnual Environmental Operating Plan (AEOP).

The AEOP integrates the procedures, projects, and goalswhich make up the P2 strategy. This plan is inclusive andencompasses an array of P2 projects (e.g., bussing, carpooling, energy management, reduction/recycling of mate-rials) used at the facility. To fund these efforts, EHSMsubmits P2 proposals for Environmental Technical Assis-tance (ETA) funding. Projects receiving ETA funding areprioritized based on metrics such as hazard levels of chemi-cals used; size of wastestreams; or highest environmental,regulatory, or contractual impacts. EHSM then gives the P2project a dedicated source of funding from the ETA pool offunds.

Since implementing the AEOP in its P2 program, NorthropGrumman DSD has significantly decreased its hazardouswaste, non-hazardous waste, and air emission pollutants.The company reduced hazardous waste disposal from 492tons in 1989 to 8.2 tons in 1999; non-hazardous wastedisposal from 28 tons in the 1995 to 1997 time frame to 5tons in 1999; and air emission pollutants from 62.5 tons in1992 to 13 tons in 1999. Projects which influenced thewaste disposal reduction include installation of sludgelesswastewater treatment system for PWB manufacturing; re-evaluation of chemical shelf lives; and recycling of PWBetchant solution. Projects which influenced the air emis-sions reduction include elimination of Freon from manu-facturing processes; conversion of low volatile organiccompound paints for manufacturing operations; conver-sion of Humiseal to a non-regulated conformal coating; andconversion of the degreasing solvent used in the Jetcleanmachines to a mixture of alcohol and Axarel 2200. Thecompany posts this information on its Intranet website.

Site Recycling Efforts

In the past, non-hazardous waste at Northrop GrummanDSD was not sorted before being hauled away by a trash

collector. By allowing recyclable items to be mixed withgeneral waste, the company incurred increased refuse costsand failed in its environmental responsibility to the commu-nity. To resolve this situation, the company set up aRecycling program in 1992.

The Recycling program initially focused on white paperwhich was the simplest and offered the best return forNorthrop Grumman DSD. The company instituted thiseffort incrementally by announcing the program througharticles in company-wide flyers and newsletters; providingindividual recycling containers at each desk; and placinglarger plastic recycling collection containers in high-vol-ume waste areas such as copier machines or reproductionsites. The program expanded when the recycling wastehauler offered to take aluminum cans in the same containeras the white paper, as long as the cans were double-bagged.To facilitate this initiative, Northrop Grumman DSD stra-tegically placed aluminum can containers in cafeterias andnear vending machines, so that employees would haveconvenient locations to recycle empty cans. Today, thecompany has many recycling initiatives including periodi-cals, newspapers, wooden pallets, toner cartridges, glassand plastic bottles, fluorescent bulbs, and scrap metals.

The company strives to minimize employee effort byenlisting support from its janitorial service contractor.Janitors empty the larger collection bins located throughoutthe facility and transport the recyclable materials to a singlecollection point for the recycling waste hauler to collect.This approach increased the company’s janitorial contractby only 0.5%. By minimizing the efforts required by theemployees to support the Recycling program, NorthropGrumman DSD gets a fairly high level of compliance inreturn.

Northrop Grumman DSD’s direct-rebate savings fromthe white paper recycling amounted to $5,000 in 1992,reaching a peak of $15,000 in 1996. Although these rebatesavings are declining due to falling paper prices, the re-moval of recyclable items from the general wastestream hasproduced a 25% reduction in mixed waste pickups. Addi-tionally, the company has increased employee awarenesson recycling and fosters environmental responsibility as amember of the community.

Logistics

Excellent Performance Indicators Program

Previously, Northrop Grumman DSD lacked a programrelated to team training and/or metrics that supported teamproductivity. In 1992, the company initially set up theExcellent Performance Indicators (EPI) program to encour-age problem-solving skills and employee empowerment.

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The EPI program has since evolved into an employeeempowerment and recognition program based on metricsthat measure team performance. The program rewardsteam accomplishments, provides the necessary tools tomonitor data-driven performance, and encourages processimprovements directed at reducing costs.

The EPI goals include optimizing employee and teamperformance; continuous improvement in product quality;and increased sensitivity to internal and external customer/supplier relationships through employee involvement. Areasof operations are organized into zones (e.g., microelectron-ics, CCA fabrication, stores) where specific metrics areapplied. Members of a zone include all levels of depart-mental job functions (e.g., technicians, engineers, inspec-tors, dispatchers). In addition, key performance indicatorsare specified based on the operations completed in eachzone.

The EPI metric structure is a flexible measurement sys-tem that can accommodate multiple programs and pro-cesses. This on-line, data-reporting system operates as thebasis for measurement. Data is provided on a weekly basisso the company can target possible areas for improvement,and teams are formed to address manufacturing issues (e.g.,improvements, savings, training, communications). TheEPI program focuses on accomplishments and improve-ments achieved on a quarterly and yearly basis. An awardceremony is held quarterly to recognize zones that haveachieved their goals as well as special acknowledgment tothose which are close. Each member of a winning zone iseligible for a monetary award.

Another aspect of the EPI program is training; some ofwhich enhance employees’ educational needs while otherstarget skills such as problem solving, effect and managechange, team building, and communications. NorthropGrumman DSD also uses Flip Flops, modules that createtraining scenarios for employees such as running a produc-tion line to achieve customer satisfaction (Lego® cre-ations); learning to comprehend the overall picture (PurpleSpot); dealing with obstacles to achieve a goal (Gold of theDesert King); and identifying how lean initiatives currentlyrelate to existing business processes (Learning to Learn).Training is a motivational factor that generates enthusiasmand provides a foundation for the success of the EPIprogram.

EPI provides Northrop Grumman DSD with tools tomonitor and improve performance for all programs. Theresult is reduced rework and increased efficiency. For long-term programs, the company improved its efficiency from87% (baseline) in 1992 to 99.1% in 1997. In addition, theEPI program’s training enhances employee self-esteem andmotivation, empowers them to improve processes, andfosters communication with management.

Management

Commodity Design Teams

New business growth is an enterprise goal of NorthropGrumman DSD. The company recognizes that the penetra-tion and/or expansion of new markets not only require themaking of significant reductions in material, assembly, andtest costs, but also the understanding and managing of theentire value stream for the design-to-manufacturing transi-tion. Essential to this process is leveraging the knowledge,technology, and resources of all team members includingkey suppliers. In June 1999, Northrop Grumman DSDdeveloped and applied its Commodity Design Team pro-cess to penetrate the MPM commodity market. The travel-ing wave tube (TWT), a main critical MPM assembly, waschosen for this effort.

The Commodity Design Team’s goal was to achieve a30% to 60% reduction in costs through material, technical,and process change recommendations and increased vol-ume buys. The cross-functional team first identified bestpractices, suppliers, products, and industry benchmarks.Next, they performed a series of analyses and evaluations ofmaterials, components, and subassemblies with the goal ofmeeting predetermined cost reductions that would allowmarket penetration. A critical part of the CommodityDesign Team process was to identify and work jointly withkey suppliers that could significantly contribute to thiscommon goal. These suppliers attended a one-day techni-cal conference involving market overview and individualsupplier breakout sessions. There, suppliers identifiedstrengths and weaknesses in dealing with NorthropGrumman DSD. Tours of the assembly and test areas wereconducted to show suppliers their product applications andthe processes used to manufacture final products. TheCommodity Design Team also worked with piece partdrawings and assemblies to identify potential areas forimproving cost and cycle time. All team members providedopen and honest feedback.

The TWT Commodity Design Team achieved their goalwith an overall material cost reduction of 39%. The processalso produced a 200% increase in work flow velocity and a30% reduction in inventory. Contributors to this successinclude reviewing and understanding the key attributes orproduct characteristics; conceptualizing methods that at-tack key cost drivers; and establishing an effective workingrelationship with suppliers. The Commodity Design Teamprocess strives to create a win-win situation by drivingdown costs while maintaining an equivalent or higherprofitability throughout the value chain. As a result, theCommodity Design Team was able to focus NorthropGrumman DSD and its key suppliers toward a common

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vision and set of objectives by leveraging their combinedknowledge, technology, facilities, and purchasing power.With this success, the team is now formalizing this processfor application to other commodity markets including theremaining areas of MPM: integrated power conditionersand solid state amplifiers.

Integrated Management Control System

Previously, Northrop Grumman DSD used a manual,paper-intensive system for requirements planning, inven-tory control, purchase orders, requisitions, and shop floormanagement. In 1974, the company implemented an enter-prise-wide, paperless system for Manufacturing ResourcePlanning (MRP II), known internally as the IntegratedManagement Control System (IMCS). IMCS is designed tosynchronize production and delivery throughout the valuechain.

IMCS (Figure 2-6) is a hybrid collection of integrated,high-end, commercially-available software which NorthropGrumman DSD tailored to its unique management and

customer requirements. With its closed-loop MRP fea-tures, IMCS implements just-in-time (JIT) policies thatautomate tools to establish and monitor planning, programperformance, material management, supplier management,shop floor, capacity planning, and financial activities. IMCSalso has key capabilities to communicate electronically tocustomers and suppliers. Electronic commerce methodsinclude electronic data interchange (EDI), electronic datafaxing, e-mail, and file transfer protocols.

The planning system modules within IMCS are the frontand back ends of the MRP II process. The system estab-lishes and tracks the Master Sales Plan to meet the contractrequirements; the Master Production Schedule for manu-facturing shop orders; and Material Requirements Plan toensure that program objectives and schedule deliveries aremet on time. Full visibility, accountability, and perfor-mance are provided within the system for closed-loopplanning and decision making. Key subsystems withinIMCS include:

• The Automated Customer Order Tracking System(ACOTS) is a full contract entry and tracking system

Figure 2-6. Integrated Management Control System

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which provides electronic notification of new andmodified contract activities. Implemented in 1995,ACOTS drives the Master Production Schedule andautomates the invoice process via EDI with thecustomer. The contract performance tracking systemhas automated signature approval, generation of packingtickets, and warning of contract delinquencies. Thesystem processes over 10,000 transactions per month,and has reduced the sell-off/shipment process by 64%.

• Bills of Material can automatically be converted froman Engineering Bill of Material to a Manufacturing Billof Material (MBOM) from any file format to themainframe. Mass change updates, as well as dateeffectivity are also permitted. This module allows theMBOM to be used as the basis for MRP while achievinga very high accuracy rate as required for thegovernment’s MMAS.

• MRP systems create time-phased material requirementswith automated weekly schedule and requirementadjustments to ensure that supply equals demand.These systems also perform capacity planningsimulation to ensure critical path parts and materialavailability are identified, and to optimize the plan tomeet the schedule. An MRP system focused at theparts’ levels enabled Northrop Grumman DSD to reduceits total lead time by more than 70% since 1996.

• The AutoBuy module, part of the IMCS procurementsubsystem, automatically generates requisitions forrequirements, approves requisitions based on set criteria,and creates purchase orders for master agreementparts. The module also eliminates manual order entryfor repetitive buys. Key to the success of AutoBuy isthe Procurement Master Agreements which can reducecycle time by seven weeks. By using this system,Northrop Grumman DSD has reduced quote cycle timeto zero days for more than 25% of its hardware lineitems.

• The IMCS Material Pooling provides the capability forcombining inventory tasks based on defined objectives(e.g., requirements, cost, location, usage). Cost savingsare achieved by reducing the required storage space;material handling and picking cycle times; and incominginspection lots. Additionally, this system decreases thehandling of multiple receipts; controls the inventorytransfer process; improves the efficiency of requisitionand purchase orders; and reduces supplier expeditingand schedule change notification activities. By usingMaterial Pooling, Northrop Grumman DSD reducedthe planning analysis for introducing new jobs fromfour weeks to one. The overall pooling savings providedapproximately 6% of the total overhead savings.

• The Storage Tracking Automated Retrieval System(STARS) is an inventory system that provides on-line,

real-time transaction processing. Parts are stored andretrieved in horizontal and vertical carousels whichutilize barcode technology and automated trackbots.STARS features first-in-first-out logic, lot control,serialization, visibility of shelf life, product by program,and off-site stock locations. By being integrated withthe IMCS Shop Floor Control System, STARS canpick parts to the latest MBOM or other requirement.Shop orders released, based on the MRP JIT releasedate, initiate the automated STARS to pick the shoporder components.

• The IMCS Shop Floor Control System modules operateas an integrated, on-line, real-time system that trackshardware, sets priorities, and generates routings.Controlled, detailed work instructions (available on-line) provide the system with manual, semi-automated,and automated operations. These instruction packagesinclude drawing and procedure references; parts, bin,and tool lists; manufacturing order traveler sequences,and visual aids. Labor information and workmeasurement are collected electronically at theworkstation for use by management and the FinanceDepartment. The IMCS Shop Floor Control Systemalso uses Statistical Process Control (SPC) with on-linedata analysis graphical interfaces.

• Test Result Notices (TRNs) are a key element ofNorthrop Grumman DSD’s functional test capability,providing on-line, real-time data collection and analysiscapabilities. The TRN system allows chain-up/chain-down linkage between assembly numbers, and permitsthe issuance of TRNs for multiple assemblies at once.Failure thresholds and integrated corrective actions(both process and supplier) are also part of the TRNsystem. As a result, abnormal conditions areimmediately recognized and special causes of variationare investigated and eliminated.

Since implementing the IMCS integration, NorthropGrumman DSD reduced support costs by 50%; increasedtransactions by four-fold; held early deliveries of purchaseorders to less than 1%; and processed purchased orders tostock at more than 80%. The reduction in manufacturingrisk has also enabled the company to meet on-time contrac-tual deliveries for more than 65 consecutive months on theAN/ALQ-135 program. IMCS has been rated green andcompliant under the MMAS since 1991, and has receivedthe Computer-Aided Acquisition & Logistics Support’sElectronic Commerce Award in 1996.

ISO-9001 Quality Management System Audit

In the past, Northrop Grumman DSD used separateauditing systems for its ISO-9001, process, and softwareaudits. This approach resulted in more than 50% duplica-

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tion as these systems covered overlapping areas. Themanual method for tracking corrective actions was alsolengthy and ineffective. Management had low visibility ofthe overall quality management status, and the use of ageneral ISO-9001 audit checklist was not always relative toNorthrop Grumman DSD’s business. In 1999, the com-pany consolidated all of these individual systems into theISO-9001 Quality Management System Audit.

The ISO-9001 Quality Management System Audit com-bines the ISO-9001 20 elements, the ISO TickIT software,and the process audits into one management reportingsystem. The system also uses a singular electronic datasystem for auditing, and consolidates the audit planningactivities. As a result, duplication is eliminated and correc-tive actions are easily tracked. Audit records includefavorable and unfavorable audit results; corrective actionresults (CARs); and delinquent CARs. Overdue correctiveactions for audits are automatically escalated to consecu-tively higher levels of management in one week incrementson a monthly basis.

In 1999, Northrop Grumman DSD also established theISO-9001 Annual Quality Management System HealthStatus. Provided to management, this annual report coversthe overall ISO-9001 health assessment, current audit re-sults, a three-year audit summary, recommended changesto the Quality Management System, customer satisfaction,and other audit topics.

Together, the ISO-9001 Quality Management SystemAudit and the ISO-9001 Annual Quality ManagementSystem Health Status provides Northrop Grumman DSDwith greater visibility and access to audit results. By usingan efficient, consolidated system, the company decreasedthe number of audits from 268 in 1998 to 183 in 1999, areduction of 32%. In 2000, this figure was further reducedby another 16%. Corrective action cycle times have alsoimproved. Previously, more than 10% of the correctiveactions were late or rescheduled. That statistic is now lessthan 2%.

Modular Factory for Electronic WarfareComponent Manufacturing

Northrop Grumman DSD recognizes that the businessstrategies used by the defense industry in the 1980s andearly 1990s are no longer feasible today. Over the years,declining national defense spending has reduced the fund-ing available to support military electronics and inevitablyeroded the supplier industrial base. Despite this trend,customer demand for higher quality products and advance-ments in electronic warfare technologies continues to grow.To remain competitive, the defense industry needed toadopt a new strategy that strived for a flexible, lean infra-

structure. Initiated in 1996, the Modular Factory for Elec-tronic Warfare Component Manufacturing (MFEWCM)program is a joint DOD-Northrop Grumman DSD vision toaddress the needs of the evolving electronic warfare mar-ket. The program’s goals are to achieve market-drivenproducts, faster product development, reduced productcost, simplified product design, and market leverage throughfunctionality and manufacturability.

To accomplish these goals, MFEWCM identifies, adopts,verifies, and integrates practices which not only drive forleanness and flexibility throughout the value chain, but alsobecome integral constituents of an infrastructure to pro-mote future changes. The Lean Aerospace Initiative (LAI)developed the groundwork within its Factory of OperationsFocus Group in terms of identifying overarching/enablingpractices and measures of lean principles. LAI is a jointindustry, academia, labor, and government consortium leadby the Massachusetts Institute of Technology to evaluatethe implications of adapting lean production principles tothe aerospace industry. In this case, the MFEWCM pro-gram is a case study that will validate the modular factoryin a defense electronics environment. The MFEWCMinitiative is a three-phase approach to use lean practices anddevelop a quantity-independent, flexible manufacturingcapability for cost-effective MPMs.

Phase I (Pathfinder Effort) was a $2.4 million, 18-monthcooperative agreement with the U.S. Air Force ResearchLaboratory to lay the foundation for the lean, flexiblemodular factory and institute the business practices theyentail. During this phase, a seamless, closed-loop, inte-grated information infrastructure was established usingseveral enabling technologies. A commercial-off-the-shelf(COTS) Product Data Management software application(Metaphase II) was customized to include an intelligent partlibrary and a cost model algorithm. This application man-ages all product-related information (e.g., schedule, lifecycle data, change management) and has been successfullyused on the B-2 Bomber and the Joint Strike Fighterprograms. An automated Design Rule Checker was alsoimplemented to replace manual design reviews. The Auto-mated Equipment Interface (AEI) provides designers witha design translator so they can convert designs into formatsrecognized by product equipment, eliminating the need formanual equipment programming after production release.The AEI also provides an operator interface. The interfaceis the key process that will prove-out the seamless transitionbetween design and production. A Manufacturing Execu-tion System monitors the equipment status and notifiespersonnel when series out-of-control conditions (e.g.,wirebonder stage overheating) occur.

A 750-square foot section of Northrop Grumman DSD’smicroelectronics manufacturing facility was reconfigured

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into a modular cell (Figure 2-7), which shifted the focusfrom process-oriented to flexible, product-oriented, de-mand-driven manufacturing. An activity-based cost ac-counting system was uniquely tailored to track savingsassociated with eliminating non-value-added tasks. Theexisting design cycle and pilot production run were thenbaselined. The preliminary production applications re-duced machine setup (changeover/programming) by morethan 90% and decreased machine run (recurring) times byup to 50%.

Phase II (Pilot Implementation) was a $2 million, 30-month Joint Service effort with the Naval Research Labo-ratory/SPAWAR to design and produce C-Band MPMs forthe U.S. Navy Cooperative Engagement Capability pro-gram. This phase measured the factory’s performanceimprovements against the Phase I baseline. The result wasa 20% reduction in design cost; a 30% reduction in inven-tory cost; a 40% reduction in design cycle time; a 40%reduction in hybrid (microelectronics) manufacturing costs;a 60% reduction in manufacturing cycle time; a 200%increase in work flow velocity; and a 100% increase in shopfloor density.

The current Phase III (Extension or Scale-up/Out Pro-gram) focuses on extending these practices throughoutNorthrop Grumman DSD’s electronics components manu-facturing activities. The final report will provide a sum-mary of achievements and lessons learned in establishing alean, flexible modular factory under the MFEWCM pro-gram. Particular emphasis will be on the applicability andresults of extending these efforts andenabling practices/technologies.

Process Oriented ContractAdministration Services

In June 1992, Northrop GrummanDSD and the Defense Contracts Man-agement Agency (DCMA) set up a gov-ernment initiative known as the Pro-cess Oriented Contract AdministrationServices (PROCAS). This relationshipis mutually beneficial and unique inindustry. Prior to the PROCAS initia-tive, few formal contractor/customermechanisms existed to address prob-lems, resolve issues, or facilitate im-provement initiatives. PROCAS uses arobust team effort to ensure qualityproducts, improve communications,and develop consistent processes.PROCAS teams develop process im-provements which are beneficial to both

participants, monitor progress, and provide status and vis-ibility.

New and revised government regulations, changing stan-dards, antiquated specifications, and a dynamic defenseenvironment constantly present new challenges for NorthropGrumman DSD and DCMA. To deal with these challenges,PROCAS teams address current issues, management pro-cesses and systems, production processing, and specifichardware issues. To date, eight teams have completed theirtasks and progressed to the adjusted management stage.Among them are Calibration Conversion, SubcontractFlowdown, Electron Tube Process, and Inspection & Test.Four team are currently active at Northrop Grumman DSD:On Time Delivery, Final Overhead Rates, Earned ValueManagement System, and ISO-9000 Conversion.

In addition to the team efforts, Oversight and Manage-ment Council monthly meetings are held to monitor theorganizational status. Quarterly status briefings for man-agement and weekly team action meetings round out theprocess into an effective management tool. PROCASprovides many benefits to Northrop Grumman DSD and itscustomers including enhanced communications, mutualrespect, consensus priorities for improvement initiatives,and significant savings and achievements from PROCASefforts and SPIs. The PROCAS initiative also fostersDCMA’s confidence in Northrop Grumman DSD’s sys-tems, and is a factor that allowed them to discontinue the in-process inspection and hardware acceptance based on thatconfidence. In turn, Northrop Grumman DSD is able to

Parts Carousel

Adhesive Dispenser

PICK-N-

PLACE

Wor

kben

ch

WorkbenchAutowire Bonder

Adhesive Dispenser

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Process Logic

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Figure 2-7. Modular Factory

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quickly move hardware through the production processwithout awaiting DCMA’s review and approval.

Product Assurance Reporting and TrendingSystem

Prior to 1995, each organization at Northrop Grumman DSDmaintained its own stand-alone database for nonconformingmaterial reports (NMRs); stocksweep generation and tracking;depot field return data; Test Result Notices; and Material Excep-tions. The corrective action systems, including the trending offailure data and corrective actions, were also managed in separatemanual data systems. Cross-platform comunication was limitedbecause the databases operated in different software applications.In addition, approximately 32% duplication occurred across allthe systems. Northrop Grumman DSD implemented the ProductAssurance Reporting and Trending System (P.A.R.T.S) to en-hance its operations by consolidating the stand-alone systems intoa single integrated database (Figure 2-8).

The five database entities were integrated into a singleclient/server database which operates on a common SQLand application software. Other systems added to thisconsolidated database include corrective action requestsand ISO, process, and software assessments. The P.A.R.T.Sdatabase standardizes data for NMRs and corrective ac-tions; provides consistent, reliable historical data; and iseasily modified for changing system and site requirements.In addition, trending capabilities have improved and userscan generate various reports including ones that showvisible process bottlenecks. Outputs from this systeminclude cycle time reports, corrective action board reports,NMR reports, and return material authorizations. Allorganizations at Northrop Grumman DSD have on-lineaccess to the P.A.R.T.S database.

P.A.R.T.S enabled Northrop Grumman DSD to reduceits system support costs by combining databases, minimiz-ing manual entry, using a single software solution, improv-ing process flows, and decreasing reproduction costs through

Figure 2-8. Product Assurance Reporting and Trending System

(P rogra m

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electronic distribution of data and reports. The companyrealized a 32% reduction in redundant data, a 30% reduc-tion in manual entry, and a 36% reduction in maintenancetables.

Proposal Cost Estimating Relationships

Prior to 1992, Northrop Grumman DSD utilized bot-toms-up discrete estimates for proposal cost estimating.This practice employed multiple estimators for related butdissimilar tasks, as well as different data sources withoutexplanation. The submitted proposals were inconsistent,voluminous, and difficult to understand. As a result,customers questioned the cost estimates generated in thismanner which significantly reduced Northrop GrummanDSD’s position in pricing negotiations. To establish a moreconsistent pricing methodology, the company developedProposal Cost Estimating Relationships (CERs) which gen-erate reliable estimates in a timely manner with nearly zeroloss in negotiation.

CERs significantly reduce routine proposal preparationcosts normally involved in the costing/pricing process.This practice utilizes one or more independent variables(e.g., production assembly/test hours, production materialcost) to estimate the dependent variable in a proposal effort.A CER is established through a statistical analysis ofhistorical data. Once established, the independent variableis estimated and inserted into the CER equation. A depen-dent variable, such as hours or another direct cost element,is then automatically generated. The process effectivelycreates a template for cost estimating, which enablesNorthrop Grumman DSD to apply it to many individualcontract actions. The result is a shortened negotiationprocess; more consistent and easily analyzed data; and acustomer who is satisfied with the process and estimates.

Various statistical methods can be used such as simple orrolling averages, single variable linear regressions, andmultiple variant/non-linear equations. Critical data shouldinclude:

• Multiple data points to generate accurate analysis. Alarger collection of cost data usually produces moreaccurate results.

• Stability in the product, processes, and environment.Over time, changes in these areas may yield inconclusiveanalysis and/or unpredictable results.

• Logical relationships between the dependent andindependent variables to avoid statistical anomalies.

Northrop Grumman DSD’s Proposal CERs use a well-defined process to generate consistent pricing in proposalnegotiations. This process also enables the company tolower negotiation losses to nearly zero, save a significant

amount in bid and proposal labor, achieve a 98% on-timeproposal rate, and foster a goodwill relationship with itscustomers. Because CERs are generated with DefenseContractor Audit Agency software, the data is easily trans-mitted and understood by all involved. The Proposal CERsfoster a better sharing of cost estimating data as well asenlighten customers on new tools and techniques.

Rolling Forecast System

In the past, Northrop Grumman DSD’s method for fore-casting acquisitions involved an undocumented, manually-intensive informal process which used a single-user Para-dox system. This system was infrequently updated, hadlimited hard-copy report distribution, was independent ofother planning systems, and did not operate in real time.The need to revise this process became more apparent in theearly 1990s as Northrop Grumman DSD migrated from asingle-product dominated facility to a multi-program plant.As a result, the company developed the Rolling Forecastsystem which forecasts new business and funding acquisi-tions for long- and short-range business planning activities.Forecast data is used in planning rates and manpower, andprovides critical input into Northrop Grumman DSD’sSector Long Range Strategic Plan and Annual OperatingPlan.

From 1992 to 1994, Northrop Grumman DSD devel-oped, documented, implemented, and tested an initial ver-sion of its forecasting system. The need for automation wasthen recognized. Beginning in 1995, the company devel-oped system and software requirements for its forecastingsystem, tested COTS products, and finally decided to de-velop its own unique software application package. Acontract was issued to Metamor Technologies, Ltd. forsoftware development with the support and contribution ofNorthrop Grumman DSD’s in-house software developers.As a result, all improvements and revisions to the databaseare now completed on-site by Northrop Grumman DSD.The Rolling Forecast system was launched in December1996, along with intensive user training.

The Rolling Forecast system tracks activities across allproduct lines and market segments from initial conceptexploration through post-production support. Every fore-cast entry in the system is assigned a probability of go anda probability of win. Under this methodology, all acquisi-tions are included in the portfolio at the correspondingweighted value. Features of the Rolling Forecast systeminclude a multi-user Windows-based platform, a standard-ized view and control of data for all product lines, systemsecurity, on-line approval, flexibility, real-time capability,extended search options, and expanded capability to ma-nipulate data within the database. Program Management,

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Business Management, and Business Development gener-ate the data, and Business Development manages theprocess.

When a business opportunity is entered into the database,a unique rolling forecast identification number is gener-ated. User access and privileges, as well as code tablemaintenance, are controlled by Business Developmentthrough the system administration functions within theapplication. Formal system updates are conducted at leasttwo times a year, and updates to the current year are donemonthly. Users and management are able to access acqui-sition data and other relevant information such as customer,contract type, description, key milestones, status, and pro-gram phase. The Rolling Forecast system can generate 26parameterized standard reports in full or factored dollars.Furthermore, information contained within the databasecan be exported into Microsoft Word, Excel, or Access, ande-mailed as Rich Text Format. A web-based, on-line helpsystem has also been implemented to support the forecast-ing system.

Northrop Grumman DSD’s Rolling Forecast system pro-vides documented policies and procedures, and a processfor continuous improvement. Since implementing thissystem, the company’s forecast accuracy continues to im-prove. The mid-year indicated final projection for 1999was within 1% of the actual year-end number. The key tothe Rolling Forecast system is its flexibility within theconstantly evolving business environment. The user-friendly database provides real-time database providesreal-time data to users and management; standardizes data;and tracks progress of opportunity throughout the entireprocess.

Security Education and Ethics AwarenessCommittee

Prior to 1995, Northrop Grumman DSD’s security edu-cation and ethics awareness were handled by two indepen-dent committees, respectively. Aside from the differentsubject matters, both committees followed similar lines ofaction and disseminated information through annual massbriefings. However, this approach generated redundanciesin effort and cost. To resolve the situation, NorthropGrumman DSD merged the two groups and created theSecurity Education and Ethics Awareness Committee(SEEAC). SEEAC is a formally chartered committee witha precise structure, operating guidelines, and a missionstatement: education instead of punishment.

SEEAC provides, conducts, and sponsors security edu-cation and ethics awareness activities so that employees areaware of and comply with corporate, sector, division,government, and customer requirements. The cross-func-

tional committee is composed of employees from variousbusiness elements including Security, Engineering, Busi-ness Management, and Operations. The integrated teamapproach enables SEEAC to reach all employees with thegreatest possible impact. SEEAC uses various publicationsources (e.g., Security Awareness Program, NorthropGrumman News, Intranet website) as well as awarenessevents to communicate information to employees. Theannual Security/Ethics Awareness Week features a Secu-rity and Ethics Challenge contest that quizzes employees ontheir security and ethics knowledge in a game-show format.SEEAC’s efforts lend visibility; demonstrate a seriouscorporate commitment to security and ethics; and addressemerging issues with broad dissemination. Governmentrepresentatives, as well as Northrop Grumman DSD man-agement, favorably view the SEEAC approach and subse-quent benefits.

The success of SEEAC demonstrates Northrop GrummanDSD’s strong commitment to security education and ethicsawareness among personnel. Defense Security Services’audits have shown an 18% improvement in security dis-crepancies to a low of 2%. In 1997, Northrop GrummanDSD received the James S. Cogswell Award for IndustrialSecurity Excellence. SEEAC’s performance and impactwere credited as contributing factors to this achievement.

Security Safety Inspection Program

Previously at Northrop Grumman DSD, Security per-formed fire rounds, perimeter checks, and fire alarm tests.Although Security frequently discovered safety discrepan-cies, the company lacked standardized documentation forthese occurrences. Environmental inspections were onlyperformed to meet regulatory compliance, and safety in-spections were conducted only as issues were identified. In1992, Northrop Grumman DSD altered its reactive ap-proach by creating the Security Safety Inspection Program(SSIP). This program collaborates the efforts of Securityand the EHSM.

SSIP is a proactive approach to environmental and safetycompliance inspections. EHSM trains security officers toperform visual inspections based on environmental andsafety fundamentals and the basics of government and stateregulations. This arrangement fosters effective use ofexisting personnel and takes advantage of Security’s accessto the entire facility. The facility is mapped into 30 zoneswith two inspections per zone. Each shift performs its owninspections, resulting in continuous inspections 24 hours aday, 365 days per year. Security enters inspection resultsinto the SSIP database which records, issues, and tracks allsafety findings. The database automatically generatesfindings as formal memos to responsible parties, and incor-

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porates the responses and corrective actions to close out thefindings. The SSIP database is also used to identify metricsand trends for discussion at monthly Environmental, Health,and Safety Council and Committee meetings. Monthlysafety reports are generated and disseminated to organiza-tional area management and used for employee training andprocess improvement.

SSIP enables Northrop Grumman DSD to create anenvironment of safety awareness and compliance through-out its facility, as well as reduce workplace hazards. Since1992, the company’s injury rate has decreased by 40%.Northrop Grumman DSD’s injury rate is one-fourth that ofthe electronics industry.

Supplier Teaming

Previously, Northrop Grumman DSD’s primary commu-nications with suppliers involved either negotiating newbusiness or visiting them when schedule/performance is-sues occurred. Products were designed without supplierinput, and issues were traditionally resolved within thecompany. Business continued in this manner until 1993when Northrop Grumman DSD conducted a feedbacksurvey with its 700 suppliers. The survey results rated thecompany as a below average customer. Suppliers’ con-cerns included lack of trust, loyalty to good suppliers,emphasis on low price versus total incurred cost, lack ofsupplier involvement in design, and scheduling issues. Toimprove its relationship with suppliers, Northrop GrummanDSD began developing a multi-faceted Supplier Manage-ment System which became fully implemented in 1996.

One element of the Supplier Management System is theSupplier Certification (or Vision) program, which high-lights key suppliers from various product disciplines.Through the Vision program, Northrop Grumman DSDteams with suppliers to establish performance characteris-tics of materials and services; utilizes their engineering andtechnical resources to develop or improve products; andhelps leverage new programs and business opportunities.The Vision program also recognizes top performing suppli-ers. Northrop Grumman DSD awards gold, silver, andbronze status to suppliers who meet award criteria inperformance, advanced quality practices, and business as-sessment. The company may further reward a supplier whoachieves a gold award by waiving incoming inspections orextra documentation.

Procurement, Engineering, and QA nominate suppliersunder the Supplier Management System. Meetings are heldwith these suppliers to discuss inclusion into the programand to identify key areas for improvement. Procurementand QA representatives are responsible for working withsuppliers to resolve performance issues and address actions

generated by the Supplier/Northrop Grumman DSD team.Suppliers may propose design, test, data, and quality initia-tives that will improve products and/or reduce costs. Theprocess features technology transfers, and minimizes in-spection, test, and data requirements to the suppliers. An-other aspect of the Supplier Management System is theinvolvement of Northrop Grumman DSD’s top manage-ment. The Vice President of Program Management andother top managers personally visit suppliers’ sites to fostercommunications and discuss performance status. NorthropGrumman DSD also shares corporate goals and strategicplans with its suppliers, enabling them to plan future busi-ness endeavors with the company.

Through the Supplier Management System, NorthropGrumman DSD has established good working relationshipswith its suppliers. As a result, suppliers are more willing toinvest in new equipment and share technology. Suppliershave also benefitted from long-term agreements; involve-ment in product design; reduced inspection, test, and datarequirements; and consideration on future procurements.Likewise, Northrop Grumman DSD’s benefits include low-ered costs, improved quality, decreased time to market, andincreased technical resources. The Supplier ManagementSystem has been a factor in reducing the company’s overallmanufacturing cycle time (from order placement to productship out) by 62%.

Wellness Program

Prior to 1992, Northrop Grumman DSD did not have aproactive wellness program. Instead, the nursing staffprovided blood pressure readings; weight management;basic information on nutrition and diseases; and healthadvice to employees in an informal manner. In 1992, thecompany migrated to a comprehensive wellness program,known as HealthWaves, as a proactive solution to em-ployee health needs.

HealthWaves provides employees with a part-time pro-fessional health representative on-site; extensive wellnessservices such as books and videos; monthly health discus-sion groups and seminars; a monthly newsletter via e-mail;and exercise classes. Northrop Grumman DSD enhancesthis program by offering its employees an array of wellnesstools. Among these are a searchable software database forhealth information; periodic health fairs; annual bloodscreening for employees, employee spouses, and retirees;and an annual flu immunization program. HealthWaves isdesigned to promote employee health and fitness, which isachieved through basic services (e.g., blood pressure checks,body fat calculations) as well as fitness classes and educa-tional seminars (e.g., breast cancer, high blood pressure,heart disease). Additionally, Northrop Grumman DSD has

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set up a HealthWaves website to provide health and fitnessinformation to its employees.

Proactive worksite wellness programs have proven toreduce insurance expenses by identifying health issuesearly, when still treatable. Northrop Grumman DSD spon-sors an Annual Blood Screen Day, which is an opportunityfor employees to have their blood tested for variousillnesses and conditions including liver dysfunction,

abnormal cholesterol readings, and high risk for heartdisease. During Year 2000 Blood Screening Day, 40%of Northrop Grumman DSD’s employees took advan-tage of the program. Of these, 20.9% of the participantswere identified with atypical test results. Two individualstested positive for cancer, and are now undergoing treat-ment. HealthWaves fosters employee morale, health, pro-ductivity, and attendance at Northrop Grumman DSD.

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Design

Product Data Manager Design Enabler

In 1996, Northrop Grumman DSD, in collaboration withMANTECH, began a cost-sharing initiative to provide avirtual environment for managing the product developmentlife cycles/processes. The system implementation, ex-pected to be completed in 2001, is already providing designand testing capabilities for a selected pilot project. ProductData Management (PDM) is an integrated system used tomanage product data throughout its life cycle; enablescollaboration early in the life cycle; distributes data auto-matically to functions when needed; and controls productdata through vaulting.

PDM was customized and implemented into theMFEWCM limited environment, and later developed intoa fully vertically integrated system. From there, the com-pany initiated a pilot program; acquired software licenses;implemented system enhancements; trained personnel; andestablished concurrent engineering procedures. These ef-forts helped establish PDM as the routine method forconducting business in current and future programs. PDMalso features a single repository for all product data (e.g.,manufacturing process documents, tooling drawings) tosupport the environment at Northrop Grumman DSD.

A key element of design is the intelligent selection ofcomponents which operates in conjunction with PDM.Here, tools are selected and developed to consolidate partnumbers, as well as control the proliferation of part num-bers that have resulted over the years from multiple designauthorities, plant consolidations, and transitions. To im-prove component selection, a Preferred Parts List withsearchable attributes will be implemented on the site com-mand media web with subsequent integration into CADdesign systems and PDM. Also, a contractor has beenretained to provide integrated supplier catalog capabilities,verify component life cycles, and manage part families foroptimization (e.g., component price, delivery, quality).

Test

Built-In-Test

Northrop Grumman DSD is a leader in Built-In-Test(BIT) design and implementation. Traditional BITs arerelatively effective for systems built in the last 15 years, but

they tend to be primitive, inadequate, and unreliable. Asmilitary flight hardware becomes more sophisticated, BITsmust be able to provide mission-oriented information (e.g.,system readiness, functional failure, failure criticality, ca-pability remaining), as well as maintenance-oriented infor-mation (system operational status, fault detection and iso-lation, storage of test data, verification of repairs). Inresponse, Northrop Grumman DSD has developed a newprocess for BITs.

The company also wanted its revised BIT process to useless test equipment, reduce test and repair times, and mini-mize operator skill level. Several of Northrop GrummanDSD’s aircraft electronic warfare systems now require no-flight line test equipment. The company’s revised BITprocess includes a Diagnostic Knowledge Base (DKB)which is implemented on a PCMCIA card. The DKB canquickly and completely isolate failures in complex militarysystems to a one-line replaceable unit by using the func-tional element testing concept. BIT information can also berevised and updated through the DKB.

Northrop Grumman’s BIT process is quick, reliable,simple, and cost effective. Benefits include rapid testing(30 seconds to two minutes); significant reduction of falsealarms and pulls; operational by a low-skill, one-personinterface; automatic fault detection and isolation; and lesssupport equipment and training requirements. The BIT logdata can also provide additional information, enabling theuser to understand the condition. The DKB can be down-loaded or updated independently of the aircraft’s Opera-tional Flight Program.

Environmental Industrial Test

Environmental testing at Northrop Grumman DSD isused to simulate and evaluate the effects of vibration,temperature, stress, altitude, shock, humidity, and corro-sion. In 1995, the company added industrial testing to itsservices. While these capabilities were all initially devel-oped to support military products, they were recently ex-panded to include commercial clientele. The commercialclient services now amount to approximately 25% of thesystem’s capacity. The range of commercial clients includeaircraft, industrial electronics, industrial electrical, con-sumer electronics, and the automotive industries.

Northrop Grumman DSD’s partnerships with commer-cial industry has brought professional as well as businessprogress. The company has implemented improved testdocumentation, maintenance scheduling, and formal equip-

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ment procedures to achieve full commercial accreditationlevels. These improvements have been attested via ISOcertifications and by the American Association for Labora-tory Accreditation. The accreditations also include a vari-ety of electrical and chemical tests and analyses.

Not only have Northrop Grumman DSD’s services beenimproved through commercial exposure, but they have alsocontributed as unique independent testing capabilities tocustomers in the Chicago region. Industrial testing fills thegaps in work schedules, improves cash flow, and cutsoverhead expenses by providing additional contract workfor non-traditional customers. Additional details are avail-able on the company’s website at http://sensor.northgrum.com/esss/dsdlab.

Field Test Support Processes

To demonstrate specification compliancy for complexIRCM systems, Northrop Grumman DSD needed a moreeffective approach than simply subjecting equipment (in-cluding aircraft and pilots) to live fire testing. A diversityof test requirements existed including ground, flight, andsimulator features. This environment called for the use ofrapid prototyping to enable test equipment to support ag-gressive schedules, while also supporting a wide range ofinterfaces.

Initial versions were fielded rapidly using COTS technol-ogy to support a growing number of analytical demands.Northrop Grumman DSD developed a documentation chainto trace system requirements throughout the test prepara-tion, test conduct, test analysis, and reporting loops. Docu-mentation provided a logical and controlled means bywhich parameters are allocated to specific tests; results arecollected and analyzed; and final compliance is docu-mented to the customer. Data enabled the company to usequick-look tools, combine related events, compile eventtimelines, and verify specification compliance. Develop-ment tests then progressed in a logical and comprehensivemanner from component to integrated system levels, per-mitting a significant reduction in subsequent productiontesting.

Northrop Grumman DSD’s field test support processesinvolve documentation and testing chains. By utilizingthese chains, the company can locate problems before theycause a significant impact, and bring together four differentsystems simultaneously with minimal downtime due tounexpected integration problems. In addition, the develop-ment path paved the way for the production path in regardto system testing.

In-Circuit Test

Northrop Grumman DSD’s development process for In-Circuit Tests (ICTs) has evolved to provide improved testperformance while reducing manual labor requirements.As expected, testing has migrated from the use of product-specific dedicated test equipment to automated and semi-automated capabilities. Additionally, the process utilizescompiled libraries of automated test routines. The sharingof these test routines between functional and ICT equip-ment has proven to further enhance savings in both sched-ule and labor. Faults normally found in final tests can beidentified before labor is added to install the CCA into thefinal assembly.

The company’s current practices are derived from com-ponent specifications including specified pin assignments(e.g., power, input, output, bi-directional). Software auto-matically makes pin assignments for non-standard parts ina rapid and efficient manner. Peripheral benefits haveincluded improvements in fixture development time, dataentry errors, and required fixture modifications. Clearly,the automation of repetitive tasks has been the principalcontributor to labor reduction. The specific recognition ofduplication between functional and in-circuit testing appre-ciably aided this feature. Previously, the conduct of ICTdevelopment varied from minutes to hours as a function ofcircuit complexity. Currently, such tests can confidently beplanned and conducted within minutes, despite a signifi-cant increase in the average circuit complexity (e.g., totalcomponents, interconnects). Additionally, a proactive ap-proach is in process to significantly reduce current ICTdevelopment time.

Northrop Grumman DSD’s move from stand-alone func-tional test equipment to ICTs contributed to better testcoverage and a decrease in test development costs. Fullimplementation of this provision is expected to improvedevelopment costs, identify defects earlier, aid identifica-tion of field return faults, and improve fault isolationcapabilities.

Material Evaluation Laboratory

Northrop Grumman DSD identified a need for an on-sitehigh technology laboratory which could handle diagnosticfailure analysis, material evaluation, and process/designanalysis support. As a result, significant investment wasmade to establish the Material Evaluation Laboratory(MEL). MEL features an outstanding variety of specialtesting, diagnostics, and analytical capabilities requiredfor testing and verifying numerous types of materialsand components.

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An on-site laboratory provides many benefits includingtimely analysis results, accessibility of expertise, and re-duction in outsourcing expenses. However, reliabilitytesting and analysis also demand a wide range of expertiseand test equipment. Northrop Grumman DSD’s staff ofchemists, physicists, metallurgists, electrical engineers, andmaterials scientists provide this expertise, while MEL housesadvanced test equipment including a scanning electronmicroscope with energy dispersion x-ray; Fourier trans-form infrared spectrometer; thermal analysis system; atomicabsorption spectrophotometer; real-time five-axis x-ray;scanning acoustic microscope; ultraviolet spectrophotom-eter; tensile tester; and Rockwell hardness tester.

MEL’s diversified and proven experience is a valuabletool in problem identification, analysis and responsiveformulation of solutions, and specific customer challenges.The laboratory’s unique capabilities and expertise have ledto direct improvement in the producibility and reliability ofNorthrop Grumman DSD’s products.

Universal Power Supply Tester

In the past, Northrop Grumman DSD designed and manu-factured dedicated fixtures for use in testing each subas-sembly that made up a power supply unit. Each one of thesededicated fixtures consisted of several thousand dollarsworth of material; took many hours to design and build;required unique test procedure documentation; and hadlimited testing capability. Most included some kind ofpower load and numerous power supplies to stimulate theunit under test (UUT). In 1995, Northrop Grumman DSDacquired an Intepro Universal Power Supply Tester whichcontains the loads and power supplies needed to stimulatethe UUT.

The Intepro system uses an Interface Test Adapter (de-veloped by Northrop Grumman DSD) which is simple andreliable, and allows the UUT to interface with the versatileUniversal Power Supply Tester. The software employed inthe testing system uses the command structure of thePowerstar integrated test environment adapted by NorthropGrumman DSD to the UUT acceptance testing require-ments. The process introduced requires very little operatorintervention and training, and fits within the company’soverall SPC strategy.

Since implementing the Universal Power Supply Testerinto its methodology, Northrop Grumman DSD has re-duced its cost of test development and its touch labor toperform tests. Individual test procedures for each subas-sembly is no longer required. In addition, the universalnature of the Intepro system allows Northrop GrummanDSD to use identical test program codes with its customerswho already own an Intepro.

Vertically Integrated Test Equipment

Traditional test approaches have included multiple con-figurations of test equipment which provided test capabili-ties across the product life cycle. The result of this lowdegree of test product commonality increased prime equip-ment support costs as well as acquisition and maintenancesupport of the test products. Northrop Grumman DSDdeveloped an alternative approach for test support by merg-ing three separate test equipment developments.

The Vertically Integrated Test Equipment combines (1)the common tester for the factory and depot support of theAN/ALQ-135, (2) the general purpose, EO test asset prod-uct, and (3) the integrated family of test equipment, generalpurpose, automated test equipment product line. Thesethree test equipment developments have successfully driventhe company’s factory, depot, and intermediate level testfunctions toward a common technology base. The nextgoal is to inset the common test resources into the primeequipment development cycle.

The Vertically Integrated Test Equipment optimizesNorthrop Grumman DSD’s value-added in the test productarea. Among these include maximizing the use of commer-cial open system architecture elements; targeting high-profile technical niches which require considerable invest-ment but have long-term marketability; and providingsystem integration and standardization to preserve testprogram investment.

Production

Circuit Card Assembly: Conformal Coating

Previously, Northrop Grumman DSD used a manualspray method for applying conformal coating to CCAs. PerMIL-I-46058, this process was performed in a ventilatedbooth using an acrylic coating thinned with methylethylketone and toluene, both hazardous substances. Whenrequired, the conformal coating was removed by usingFreon TMS, an ODC. Additionally, the boards beingcoated were manually masked and demasked to keep coat-ing out of specified areas of a given CCA. In 1996,Northrop Grumman DSD acquired a Nordson Select CoatSystem to automate its conformal coating process andeliminate environmental hazards.

The Nordson Select Coat System uses a robotic five-axisspray head to selectively apply conformal coating. Thismicroprocessor-controlled system also utilizes a low pres-sure, non-atomized spray to flow coat the CCAs. Otherprocess improvements included switching to a conformalcoating material with lower levels of volatile organic com-pounds (VOCs); performing the process in a continuously

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ventilated work cell; and eliminating Freon TMS by chang-ing to a semi-aqueous cleaner.

These changes to Northrop Grumman DSD’s conformalcoating process has resulted in a 50% reduction in touchlabor by dramatically reducing the assembly masking anddemasking steps. Furthermore, the company eliminated theuse of hazardous materials, substantially reduced VOC andODC emissions, and improved coating repeatability.

Electro-Optical Flexible Assembly Processes

Northrop Grumman DSD is in the process of implement-ing a flexible manufacturing environment for the develop-ment of EO assemblies. The company’s present procedureinvolves the use of segregated workspaces as determined

by individual programs and/or processes. This approachrequires the development of expensive single-use align-ment stations and excessive tooling, space, and test costs fornew programs. Moreover, inflated cycle times are alsorequired due to the frequent movement of hardware be-tween locations. The company is developing a flexiblemanufacturing approach which will alleviate the inefficien-cies associated with the current assembly floor layout(Figure 3-1).

The flexible manufacturing environment will utilize acellular approach and the development of several flexiblecapabilities including tooling, alignment systems, and testsystems. These capabilities will be flexible in the sense thatthey can be used for multiple programs with minimal setuptime when switching between programs. The supporting

Figure 3-1. Current versus Proposed Layout

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alignment and test systems will be located close to theassembly area to create work cells, minimize hardwaremovement, and reduce cycle times. Northrop GrummanDSD has identified projects to simplify the tooling requiredfor EO assembly and ensure that future designs will bedeveloped within the capabilities of the manufacturing,alignment, and test systems.

The company expects the flexible manufacturing envi-ronment to significantly reduce capital and tooling of futureprograms by standardizing the work cells. Other antici-pated benefits include a reduction in the development ofwork instructions, decreased cycle times, and increasedthroughput without additional facility expansion.

Encapsulation and Impregnation

Northrop Grumman DSD builds a number of assembliesthat require encapsulation or impregnation. An encapsu-lated or impregnated assembly is typically an electricaldevice (e.g., high voltage power supplies, ignitors, modu-lators, transformers) requiring a protective coating of ma-terial to fill all spaces between components and around theexterior surfaces. In most applications, the encapsulantmaterial is silicone, epoxy, or urethane. In the past, processyields were relatively low (50% to 60%) especially on start-up items, and required 100% inspection by QA. Voids inthe encapsulant were common. Process traceability wasvery difficult because it relied too much on manuallygenerated logs and operator memory. Northrop GrummanDSD has implemented a number of improvements forencapsulation and impregnation.

The current practice institutes these changes:• SPC is used in critical areas to ensure that the

manufactured product maintains certain build criteriafrom lot to lot. These parameters include cleanlinesstesting, viscosity measurements, adhesion testing, andhardness readings.

• Grit blasting was replaced by plasma etching to preparethe part surfaces before encapsulation, resulting incleaner parts with better adhesion.

• Design for Manufacturability is instituted by Operationson all new product types. This approach ensures thatthe development, design, and manufacturability ofnew products enable the company to continue producingquality encapsulated and impregnated assembliesefficiently.

• Northrop Grumman DSD has empowered its operatorsby training them to perform 97% of the in-processinspections.

• The Encapsulating Team developed a handbook,Encapsulation for Dummies, for operators and design

groups as a source of information on these processesand failure analysis.

Since implementing these changes, Northrop GrummanDSD has greatly increased its process yields on encapsu-lated and impregnated items; eliminated voids; and reducedanalysis costs. Empowerment has also increased operatorawareness, resulting in higher quality products and quickerisolation of problems.

J-STD-001 Workmanship Training

Previously, Northrop Grumman DSD spent 10,560 hoursper year training and re-certifying 191 personnel to fulfillthe requirements of MIL-STD-2000. Re-certification typi-cally ran three days to complete the 24 hours of training.Operators and inspectors were required to take differentclasses and obtain separate certifications. In April 1997, ablock contract change for the ALQ-135 program providedthe company with an opportunity to revise its trainingpractices and transition to the J-STD-001 WorkmanshipTraining.

Following this event, Northrop Grumman DSD devel-oped a customized, internal workmanship standard, 499-000008, based on J-STD-001 and IPC-A-610. An eight-hour re-certification class was also created to familiarizepersonnel with the new standard. Operators and inspectorstake the same class which eliminates separate certifications.The class involves a 35-mm slide test to demonstrateacceptance criteria, a written test to demonstrate specifica-tion knowledge, and a sample CCA build to demonstrateproficiency. Re-certification periods were extended from12 to 18 months based on an industry survey. Standardpractices and policies include SP 16-18.00 Formal Class-room Training, On-The-Job Training, and Training Records;EB12-04.10 Training and Certification; I.P.2.4.0.13 Prod-uct Operations Training Center Inspection & SolderingCertification Policy; I.P.2.4.0.51 Product Operations Train-ing Center; and I.P.2.4.0.52 Electrostatic Discharge Train-ing Certification Program.

Northrop Grumman DSD also maintains a state-of-the-art Product Operations Training Center to train andcertify its production personnel. Instructors are cer-tified for J-STD-001 and IPC-A-610 training through theElectronics Manufacturing Production Facility. Thetraining center contains ten workstations, each equippedwith a Metcal soldering station and a microscope. Class-room instruction includes J-STD-001 and IPC-A-610specification requirements review, hands-on solderingand inspection, and both written and visual tests using35-mm slides of soldering/assembly defects. The com-pany maintains a database with the employee’s name,number, training class completed, certification date, and

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test score. A sample of each employee’s training CCA orwork is also kept on record. Personnel are re-certified atleast every 18 months, or earlier if random Process/ProductAssessment audits indicate a need for additional training.

Since implementing the J-STD-001 Workmanship Train-ing, Northrop Grumman DSD decreased its training from10,567 hours for 191 employees in 1997 to 2,599 hours for178 employees in 1999. Other benefits include dual certi-fication for operators and inspectors, a streamlined trainingprogram, and a more flexible workforce.

Magnetics

Magnetics are transformer-type devices that have theprimary function of regulating voltages in an electronicdevice. Northrop Grumman DSD has over three decades ofexperience in designing and manufacturing magnetic com-ponents. Approximately 372 magnetic types have beenproduced on 21 programs, varying from a one-gram air coilto a 27-pound step-up transformer. All magnetics are builtto meet the requirements of MIL-T-27. Past practices atNorthrop Grumman DSD dictated that all magnetics be100% tested by QA. Surface preparation, if required, wasperformed on a one-by-one basis using labor intensive andinconsistent grit blasting. The materials used were notrobust, and therefore unrepairable if defective. The use ofcarriers to facilitate the ease of assembly was also non-existent. To resolve these issues, Northrop Grumman DSDunderwent a fundamental paradigm shift in its practices.

Northrop Grumman DSD provides the necessary trainingand tools to its production operators, empowering them toperform in-process inspections on 98% of all magneticproduct types. QA inspects the remaining 2%. Wherepossible, carriers have been added to the product designs toassist in assembly. Other improvements include replacinggrit blasting with plasma etching of components to improveadhesion; using robust materials to allow repair/rework ofsome defective products; and performing surface prepara-tion on a lot basis. Process controls established includeDesign of Experiment, Design for Manufacturability, andSPC for critical design parameters (e.g., wire tensile strength,cleanliness). Design for Manufacturability is instituted byOperations on all new product types, enabling NorthropGrumman DSD to continue producing quality magneticcomponents efficiently.

As a result of these improvements, Northrop GrummanDSD instituted a findings feedback loop via e-mail toDesign Engineering. These findings are used to refinefuture designs and avoid past problems. With designdirections evolving toward smaller packaging, increasedpower, less environmental sensitivity, and simpler assem-bly at 98%+ yields, Northrop Grumman DSD’s initiatives

position the company to continuously improve the quality,reliability, and cost of its magnetic components.

Material Control and Kitting

In the past, Northrop Grumman DSD’s material controland handling practices were antiquated, inefficient, anddisorganized. Receiving Operations attempted to maintainthousands of components in 600 sections of ten-foot highracks. Three-by-five index cards were used for part trace-ability, shelf-life information, and first-in-first-out (FIFO)processing. Dock-to-stock cycle times were unknown, andelectrostatic discharge (ESD) protection was non-existent.Order-picking Activities faced a never-ending backlog ofwork. A cycle time of 65 working days was needed to issuepick orders. Material Auditing recounted and performed100% verification of each line item of material picked, aswell as wrote out the pick-and-audit sheet for each shoporder. The result was thousands of hours of overtime,excessive costs, and a lack of goals. In 1989, NorthropGrumman DSD implemented the Storage Tracking Auto-mated Retrieval System (STARS) as part of the company’stotal quality effort.

STARS provides on-line, real-time transaction process-ing. Parts are efficiently stored and retrieved in horizontaland vertical carousels, utilizing barcode technology andautomated trackbots. The system also features FIFO logic,lot control, serialization, visibility of shelf life, product byprogram, and off-site stock locations. STARS is integratedwith the IMCS Shop Floor Control System. All material isverified against purchase orders and dispositioned by on-line transactions. Barcoded material travelers are used andlot number association is issued by Receiving.

Shop order issue-to-production is also driven by IMCSvia production control or auto release. The mainframeprovides information to Kitting, which describes theworkcenter bin list for each kit based on the automated workinstructions for each assembly number. Kits are consoli-dated, audited for accuracy and completeness, and thenissued to each requiring workcenter separately as build-ready kits. In this manner, material handling is minimized,and parts are issued when and where they are needed. Theaudit process ensures that parts conform to specifications(e.g., proper packaging, orientation, correct revision, alter-nate/substitute status). If discrepancies in the work instruc-tions are discovered, then Process Systems Engineering isnotified. Metrics are maintained by measuring kitting effi-ciency, accuracy, and cycle time. The primary metrics flowinto the EPI program, providing objective performance mea-sures for the department and motivating team improvement.Since metrics tracking began in 1990, the process time,accuracy, and cycle time of kitting have steadily improvedand now exceed departmental objectives.

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Since implementing STARS, Northrop Grumman DSDhas significantly improved its Material Control and Kittingpractices to remain competitive and profitable. Dock-to-stock cycle times are now measured in hours and days. Lotnumber association provides complete traceability of com-ponents throughout the system. Operators are ESD certi-fied, and appropriate ESD protections are in place. Shelflife is monitored with automatic updates regarding impend-ing obsolescence, and FIFO priorities are automaticallyperformed. The company facilitates continuous improve-ments through active solicitation of its customers.

Statistical Process Control

Northrop Grumman DSD has applied SPC to the evalu-ation and analysis of test result data. The measurement ofkey product characteristics is automated, and the data istreated as SPC data points. The data points are compared tohistorical control limits as well as specification limits todetermine if any are considered out of control. Out-of-control data points are automatically identified and thenaddressed by Operations Engineering. Control limit up-dates are made based on changes in the process variabilityand when a significant amount of data has been collected.The SPC system provides a method for collecting real-timedata and enables real-time assessment of product quality.

Past process control and variability reduction methodswere managed using labor-intensive manual data collectionand analysis methods. Northrop Grumman DSD’s intro-duction of a fully integrated SPC system into the mainproduction floor was completed in 1994, and is currentlybeing expanded to other shop operations areas. The SPCsystem can display control charts on-line with detailed drill-down information by assembly, serial, material, or lotnumber. These charts are displayed at the end of each batch.Users can add/edit comments to the individual control chartpoints to identify information relevant to the process. Thesystem also can be set up to prevent further processing untilcorrective action is addressed. The chart advisor is an on-line data analysis graphical and report interface for per-forming data analysis calculations and displaying output(e.g., Pareto, histograms) from the SPC system.

Since implementing the SPC system, Northrop GrummanDSD has realized several benefits. Among these are re-duced rework and repair time; facilitation of systematicprocess improvement initiatives; and decreased cycle timeand costs attributed to timely identification of out-of-con-trol processes.

Logistics

Engineering Staffing Projections

Project staffing projections at Northrop Grumman DSDwere usually done at the beginning of a program and at adhoc periods during the program. Follow-on needs wereaccomplished with minimal relation to engineering skillmix required, and the concept of core members was used toa limited extent in project group assignments. The com-pany soon recognized the need to efficiently and effectivelyallocate engineering personnel through its growing pro-gram environment. The company needed to support prod-uct lines with teams of core individuals possessing productknowledge and heritage, as well as optimize the availabilityof engineers’ critical skills and move them quickly acrossprojects.

The Engineering Project Manager (EPM) is tasked inachieving the project’s technical goals, Cost PerformanceIndex, and Schedule Performance Index. The EPM mustalso control the tasking of personnel assigned to the team.The desire is to have a team of technical personnel workingwith Engineering Project Management. The core teamstays with the project on a long-term basis, and the staff isefficiently allocated and reassigned as needed.

Stable staffing of key engineers as well as flexible, part-time engineering personnel are desirable. In early 1999,Northrop Grumman DSD developed a method for identify-ing and forecasting specific staff requirements for func-tional managers. The method involves the publication of amonthly staffing projection spreadsheet. The spreadsheetlists employees’ names, their skill type, and a designation aseither core or shared-across projects. The schedulingforecast covers a six- to 12-month range for various catego-ries (e.g., product line, program, tasking, monthly man hourtasking), and enables functional managers to quickly iden-tify staff shortfall or excess for reallocation.

Since implementing these Engineering Staffing Projec-tion practices, Northrop Grumman DSD has realized sev-eral benefits. Among them are manageable staff loads,allocation of team members without department transfers,and lower engineering labor.

Product Operations Depot

The Product Operations Depot is a service organizationwithin Northrop Grumman DSD that repairs and retrofitsline replaceable units (e.g., control oscillators, RF amplifi-ers) and shop replaceable units (e.g., modulators, powersupplies) for various customers. The Depot is comprised offour major functions: Administration, Production Control,Test and Repair, and Material Control. In the past, the

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Depot had no access to TRNs which, among other things,provide failure thresholds and integrated corrective actions(both process and supplier). Consequently, the ALQ-135program experienced a high rate of correlation failuresresulting in decreased system reliability, poor customersatisfaction, and high product quality deficiency reportrates. To resolve these issues, the Depot implementedBVM practices where appropriate to specific customerrequirements for depot-level support.

The Depot is also working to reduce and streamline thecontract data requirements list (CDRL) deliveries for itscustomers by providing contract data in an electronic for-mat. For example, the ALQ-135 Depot Support Contractcalls for maintenance data collection records (AFTO 349Form) to be submitted for each depot-level repair. A projectis underway to collect the required maintenance data (e.g.,TRNs, daily assignment ticket system labor, depot material,logistics) electronically from the operations and depot datasystems to meet CDRL requirements. This effort willgreatly reduce the time to produce CDRL data and providecustomers with accurate and timely information. TheDepot is producing approximately 5,000 to 6,000 TRNseach year. The data is collected by Sustaining Engineeringand Depot personnel to assist in trend and failure analyses,the troubleshooting and repair of customer systems, and thecorrelation of production and field failures.

In July 1995, the Depot was designated as Zone 10 for theEPI program. Its mission is to establish SPC metrics tomeasure and evaluate Depot performance; use performancemeasures to reduce costs and product turnaround timeswhile improving product quality and customer satisfaction;and provide guidance, leadership, and communication toall zone members for the implementation of EPI.

Zone 10 has consistently shown marked improvementsand won quarterly and annual awards for its efforts. As aresult, the Product Operations Depot has reduced its rates ofreturn, increased customer satisfaction, and provided highsystem availability. All new program bids now include theuse cost of supplier-developed test systems to reduce corre-lation issues. These efforts assist Northrop Grumman DSDin producing quality products for its customers.

Shelf Life Management System

In 1980, Northrop Grumman DSD developed the ShelfLife Management System which sets the shelf life ofmaterials. The system is flexible so it can adapt to transitionprograms, and provides users with material classification,shelf life definitions, labeling procedures, procedures forchange, and storage/handling requirements.

The system also utilizes an on-line shelf life referencelist. This database is accessible through the local network

and used mostly by receiving inspectors, stock room per-sonnel, engineers, and operators. The database also pro-vides part number cross-references for almost 1,800 itemsas well as descriptions, shelf life, shelf life categories,storage classes, and percent shelf life extensions. Requestsfor extending the shelf life of a material are submitted to theMaterial Evaluation Laboratory. Tests determine if theperformance of the material still meets specification. Re-jected items are scrapped and the requester is notified.Materials that pass typically receive a shelf life extension of25%.

Since implementing the Shelf Life Management System,Northrop Grumman DSD has decreased material costs byre-certifying items rather than scrapping them; reducedhazardous waste disposal cost and liability; achieved mate-rial requirements feedback; and established a part numbercross-reference. The company also attains a better under-standing of material performance through the extensivehistory of test and shelf life extensions.

Technology Planning

Healthy Research & Development investments are vitalto the stability of advanced systems programs. Previouslyat Northrop Grumman DSD, this process involved propos-ing projects and allocating funds over a period of severalmonths. IRAD budgets were then approved and allocatedfor the projects. However, this process did not yieldsatisfactory levels for Contract Research and Development(CRAD). A goal was set for CRAD dollars to be committedat three times the IRAD amount. Due to the expedientprocess of approval and allocation, customer needs werenot satisfactorily being met with the proposed projects andCRAD investments were less than projected. In 1996,Northrop Grumman DSD introduced Technology Planningto improve the methods by which approval and allocationof IRADs occurred.

Technology Planning is a disciplined process for theplanning and execution of internally funded technologydevelopment. The process is closely tied to the develop-ment of the Long Range Strategic Plan and the AnnualOperating Plan. Technology Planning includes the defini-tion of specific needs and requirements for specific productlines; the ranking of those requirements; and their transla-tion into specific technology development objectives. Inaddition, the process requires the close coupling of cus-tomer-funded Research & Development to ensure synergybetween customer needs and technology development. Akey change is that the projected funding for IRADs isapproved in May, prior to the project proposals being made.Plenty of time is then allowed for the Principal Investigators(PIs) to prepare summary project proposals by August for

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next year. Plans are reviewed/revised for the OperatingPlan in October. Executive reviews for market segmentfunding and PI detailed plans are completed concurrently inDecember. Projects are then reviewed quarterly to encour-age program office participation. Items reviewed mayinclude objectives, open issues, determined risks, and re-statements of the tasks they are doing.

Technology Planning enables Northrop Grumman DSDto focus its R&D efforts on those projects in which thecustomer wants to invest. These projects are also supportedby an increase in CRAD investments by approximately afactor of three. Technology Planning also provides thecompany with out-year business stability, current yearproject stability, less planning overhead, and an organizedstructure to take better advantage of opportunities.

Management

Electronic Command Media Web

In 1993, Northrop Grumman DSD first implemented anelectronic documentation system to establish controlledversions of documents and reduce the cost of maintaininga paper-based system. Although initially limited to man-agement policies, procedures, organization charts, and re-visions, this first electronic system evolved into an Intranet-based documentation system known as the Command Me-dia Web. This centralized controlled system provides site-wide access to the most current versions of corporate,sector, and departmental command media; forms; and othergeneral interest information.

The Command Media Web is continuously evolving, andthe reduction of redundant documentation is a key objec-tive. Operations is currently reviewing and condensing allof the documentation into two categories: Auditable Opera-tions Process Documents and On-The-Job-Training Docu-ments. The use of process mapping techniques on theStores and Staging Consolidation Pilot Project resulted in a71% total reduction in documentation. This consolidationeffort is planned for implementation throughout the organi-zation to minimize detail, process time, and audit findings,and improve process understanding.

The Command Media Web recently began featuring an e-learning program (formerly computer-based training), whichoffers hundreds of on-line software training courses foremployees. A wide range of topics is available includingbasic computer skills, programming languages, network-ing, and business applications. Employees register using anon-line form, pending manager approval. An annual li-cense fee of $215 is charged to the employee’s organiza-tional budget for participation in the e-learning program.

The Command Media Web is accessible to all NorthropGrumman DSD employees and contractors through unclas-sified network computers. The Intranet site is currentlyreceiving more than 8,000 hits per day, which is up nearlyone-third from last year’s numbers. In addition, the numberof visitors and the amount of time spent on the website hasincreased by about 30% over last year’s averages. Informa-tion on the Command Media Web is updated daily to ensurethe latest version of documents is available, reduce thechance of using obsolete documentation, and eliminate thecosts associated with maintaining hard-copy manuals.Hyperlinks and search capabilities enable users to quicklylocate data, thereby minimizing redundancies and conflictsbetween documents. The implementation of the CommandMedia Web has resulted in the development and publica-tion of higher quality documents for use throughout NorthropGrumman DSD.

Employee Development and Recognition

Northrop Grumman DSD has instituted various Em-ployee Development and Recognition programs. Initialefforts began with educational classes at the local commu-nity college and expanded into graduate degree work.Additionally, the company established formal programs torecognize and award its employees for outstanding perfor-mance on the job.

Northrop Grumman DSD maintains strong relationshipswith local educational institutions, and draws on theirresources to assist with the further enhancement of thecompany’s educational needs. Since 1979, the IllinoisInstitute of Technology’s Interactive Instructional Televi-sion system has been a mainstay of Northrop GrummanDSD’s technical education efforts. The coursework, deliv-ered by line-of-sight transmission from the John HancockBuilding in Chicago, has produced many Masters Degreeand Doctoral recipients within the company’s workforce.Northrop Grumman DSD’s partnership with the WilliamRainey Harper Community College has spanned over 30years. Here, employees have been involved in numerouscapacities such as student, adjunct faculty, Advisory Boards,Educational Foundation Board, and Board of Trustees. Thecompany frequently brought Harper College courseworkon-site to assist employees in furthering their formal educa-tion. Another relationship is through the local high schooldistrict to foster employee enhancement of mathematics,reading, comprehension, and English as a second language.

Several programs have been implemented to recognizeoutstanding contributions by employees:

• The Quality Award Program provides recognition andmonetary rewards to Operations personnel whoseexemplary efforts result in high quality production.

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Efforts are acknowledged in various areas includingcustomer satisfaction, exceptional effort, problemresolution, valuable suggestions, high yields, andprocess, system, or product improvement.

• The Timely Awards Plan provides timely recognitionand remuneration of outstanding individual and teamaccomplishments beyond their normal performance.Nominations are made by supervisors, managers, orteam leaders. The Director of Human Resources andthe Employee Recognition Committee review thenominations and determine the award levels.

• The President’s Leadership Award recognizesoutstanding employees who demonstrate leadershipqualities through their accomplishments. Theseemployees attend a dinner in their honor and receive aplaque of commendation.

Northrop Grumman DSD’s Employee Development andRecognition programs have been valuable motivators thatencourage education and success. Employees achievesatisfaction and self-esteem through education, acknowl-edgment, and teamwork. Recent years have shown anupward surge in educational enrollment. Participation inHarper College partnerships have increased from 14% in1998 to 35% in 2000.

Environmental and Safety Web-BasedInteractive Training

Previously at Northrop Grumman DSD, the EHSM staffeducated employees on environmental and safety topics byconducting group training classes. Classes involved slidepresentations followed by manually administered tests todemonstrate competency of the group. In some cases, CD-ROM interactive, multimedia-based, pre-packaged pro-grams were used to assist in the training needs. Theseprograms were semi-customizable and contained interac-tive features which offered immediate feedback and en-sured uniform testing. EHSM further revised these meth-ods by developing the Environmental and Safety (E&S)Web-Based Interactive Training.

The E&S Web-Based Interactive Training is an environ-mental awareness training module that incorporates multi-media (e.g., voice, image, video) and interactive testing ina web-based format. Deployed over the company’s Intranet,this effective compliance tool allows employees to partici-pate in training sessions at their own time and pace. Theweb-based modules provide more consistency than a liveinstructor, and the multimedia features can imitate aninstructor’s stimulation, interest, and rate of information forthe employee. Testing is automatically sent to the Environ-mental, Health, and Safety (EH&S) Department for record

keeping. Northrop Grumman DSD is currently developingother web-based, environmental awareness training mod-ules such as Safety Orientation for New Employees, HazComUpdate, Lockout/Tagout, Emergency Response, and Of-fice Ergonomics.

To minimize the impact of large sound and video files tothe network and workstations, EHSM employs a streamingmedia format for the training modules. This format com-presses the files, enabling them to be continuously streamedto the user and eliminating the need to download the fileprior to starting the training session.

Web-based training is an effective tool that reducesEH&S labor to perform training, increases departmentalscheduling flexibility, and provides a manageable methodto track training needs and regulation compliancy. Addi-tionally, the E&S Web-Based Interactive Training caneasily be updated as regulations and processes change.

Intranet Program Review System

The Intranet Program Review System (IPRS) is an on-line method for reporting program status on selected projectswithin Northrop Grumman’s Electronic Sensors & Sys-tems Sector. The IPRS defines a standard program report-ing format which is used for monthly status, business areareviews, vice presidential quarterly program reviews, andcorporate program reviews. The format of the reportdictates the minimum materials required for program re-views, and provides flexibility to incorporate supplementalcharts when necessary.

The password-protected system is used by project man-agers to report program status and by senior-level managersto review status. Each monthly assessment employs uni-form objective metrics to ensure that consistent data isprovided. Program managers are responsible for enteringdata into the IPRS prior to the last day of the month. Thisdata is entered in a pre-defined template format. The systemfeatures an e-mail interface that automatically transmitsquestions and concerns to the appropriate personnel. Theresponsible manager indicates final approval of the reportby the fifth day of each month; comments can be inserted asnecessary. The system’s interfaces are automated andprovide users with menus and hot links within the reportsfor ease of use.

The IPRS’ strength as a management tool is its uniformnature of the grading criteria used to review and approveprogram status reports. This attribute ensures that objectivequantitative assessments are performed for each reportsubmitted. The IPRS formalizes the review process bystandardizing the timing, content, and order of the reportingsystem across all sites within the Electronic Sensors &Systems Sector. As a result, all program reviews are

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reported and viewed in the same manner. The IPRS hasgreatly reduced the need for formal briefings, but serves asa building block for developing consistent briefing pack-ages when a formal briefing is required.

Material Acceptance: Dock to Stock

Previously, all material at Northrop Grumman DSD was100% inspected. This approach required significant invest-ment in inspection equipment and labor. Backlog of mate-rial awaiting inspection and high failure rates of incomingmaterial were commonplace. In 1996, Northrop Grummanestablished the Material Acceptance: Dock to Stock. Thisinspection-free material acceptance system shifted theemphasis for product acceptance from the company to thesuppliers.

The automated Material Acceptance: Dock to Stock isintegrated with the company’s Supplier Rating System.Dock to Stock provides prioritization of receiving inspec-tion workload, barcoded labels, and standard quality re-quirements on-line to Receiving Inspection. Commercialand catalog products are no longer inspected or tested.Overhead was reduced by eliminating the inspection ofsuppliers/part numbers that have excellent historical per-formance. As of October 1999, Northrop Grumman DSDattained a rate of 75% for all of its material received andprocessed to stock without inspection.

Cycle time for inspections have been reduced to approxi-mately one hour per lot by focusing on attributes that havebeen historically problematic or are program critical. Sinceimplementing the Material Acceptance: Dock to Stock,Northrop Grumman DSD has increased its acceptance rateof material by 99%; decreased inspection personnel by80%; and reduced material backlog from 2,000 lots to lessthan 25 lots.

Operations Programs Integrated Product Team

The Operations Programs Integrated Product Team (IPT)is responsible for providing direction and coordination forall of Northrop Grumman DSD’s operational activities.The primary functional activities are Production Planning& Scheduling; Operations Project Engineering; MaterialPlanning & Control; and Operations Business Manage-ment. The Operations Programs IPT provides the insightand support required to develop new programs and transi-tion them to full-scale production. To accomplish this goal,the group is responsible for:

• Establishing program requirements and schedules.

• Translating requirements into a manufacturing programplan, which is in-line with Operations’ goals andresources.

• Interfacing with other operations organizations to ensureimplementation of the plan.

• Providing departmental business requirements planningto support Operations’ objectives for proposaldevelopment and negotiations; direct budgets; andcost-performance analysis and reporting.

• Acting as the primary interface between Operationsand all functional departments within NorthropGrumman DSD for program definition and scope;performance to schedule and budget; and resolution oftechnical and/or engineering issues.

In the past, Northrop Grumman DSD operated as a matrixorganization. This approach provided professional stabil-ity of functional experts and minimal duplication of com-mon parts, practices, and processes. However, additionalcosts resulted from increased coordination between func-tions, lack of ownership at the program level, and limitedknowledge of the program/product line. Today, NorthropGrumman DSD’s product organization structure has re-sulted in a 38% reduction in support personnel; extensiveknowledge of the product line; and strong team spirit/ownership. Some duplication still exists on common lowvalue material. The changeover to a product organizationstructure was largely driven by an increase in program/product lines (from two to 20) and by budget constraintswhich forced the company to reduce the number of direct/indirect support personnel. In addition, the company’s1994 merger with Grumman Aerospace Corporation in-creased its geographical sites from one to four; part num-bers from 5,000 to 100,000; and subcontractor/vendor basefrom 2,000 to 4,200.

The implementation of IMCS was critical in providingthe fundamental framework to leverage the near-seamlessdatabase information flow within the Northrop GrummanDSD infrastructure. The initiative to establish a ProductProject Authorization Code allows this facility to collectcosts under a single account number, and then allocate thembased on delivery and master sales plans. The results arecontract schedule flexibility; reduced procurements andshop orders; simplified time card and cost reporting pro-cesses; and better product cost visibility. The IMCS sub-system modules (e.g., Auto Requisition/AutoBuy; AutoTransfer) were also instrumental in establishing the Opera-tions Programs IPT. The IMCS, combined with off-linemodels, can generate automated reports for manufacturingmetrics, material metrics, earned value process, equivalentunits, and budget performance.

By implementing the Operations Programs IPT, NorthropGrumman DSD reduced its support labor by about $2 to $3million per year for direct/indirect personnel. Thechangeover from traditional roles within a matrix organiza-tion also resulted in about $3 million per year in costavoidance.

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Product Data Management

In 1996, Northrop Grumman DSD initially implementedPDM as part of the MFEWCM initiative. This U.S. AirForce MANTECH, cost-sharing initiative is being devel-oped using Metaphase II, a COTS product data manage-ment system. In 1999, a pilot application was completedand proven successful in a contained environment. Amanagement decision was then made to transitionMFEWCM PDM to the entire enterprise. A pilot projectwas selected for this phase, and training was provided tomore than 130 new users. The company focused on makingthe PDM integrated system more user-friendly throughweb-based capabilities so it would be adaptable to anenterprise-wide environment.

Several systems enhancements have been completedincluding customizing and upgrading Metaphase II to aweb-browser version; Intranet access to PDM; site-widedrawing and document viewing capability; user log ofactions and accept/reject capability; and on-line viewingand mark-up of 3-D drawings. The company has alsotrained personnel and established concurrent engineeringprocedures. These efforts helped to establish PDM as theroutine method for conducting business in current andfuture programs. PDM also features a single repository forall product data (e.g., manufacturing process documents,tooling drawings) to support the environment at NorthropGrumman DSD.

Other enhancement initiatives are currently in processand are expected to be completed in 2000. Once completed,these initiatives will make PDM an on-line standard prac-tice, providing real-time data for use by Northrop GrummanDSD.

Software License Verification Process

Currently at Northrop Grumman DSD, software licenserecords are maintained by individual organizations. Thisapproach is time consuming, potentially inaccurate, usesmanual auditing to verify license compliance, and lacksconsistent traceability to primary company records. Toreduce the potential for liability under the current system,Northrop Grumman DSD is developing a Software LicenseVerification process which is expected to be implementedin July 2000.

The Software License Verification process will use acentralized automated system to provide an effective methodfor controlling licensed software. Unique validation crite-ria (e.g., purchase order, software/hardware keys, certifi-cate) will be used per product family. A database willmaintain the verified software licenses, and be linked to thespecific assets on which they are installed. License infor-

mation will be entered into the database. The SystemManagement Server will audit systems and provide a snap-shot of software installed on each computer. The datacollected will be compared to the software license databasefor discrepancies. Exception reports will then be generatedand sent to the using organization’s management for reso-lution.

The Software License Verification process should re-duce the risk of license violation and liability. The centraldatabase will also provide license traceability to primarycompany records. Northrop Grumman DSD anticipates asavings of $62,000 per year by eliminating manual audits ofcomputers to verify license compliance.

Strategic Planning

Previously, the Operations Department at NorthropGrumman DSD did not have a formal planning process.Long-term planning was ad hoc. Operations tended tofocus on satisfying near-term issues, and its planning wasmore tactical than strategic. Ineffective methods were usedto communicate plans and objectives. Until 1995, NorthropGrumman DSD primarily produced one major product. By1999, the company had 12 programs in production and theOperations Department had evolved into being a manufac-turer of highly complex, high mix, low volume systems andsubsystems. Estimations indicated that 24 programs wouldbe transitioned into production by 2005. Operations real-ized it needed to invest in a forward-looking planningdocument, since the quantity of programs in productionwould double during the next five years. As a result,Operations developed and implemented a Strategic Plan.

The Strategic Plan is used to document Operations’manufacturing vision from 2000 to 2005, as well as thestrategy and specific plans needed to implement that visionduring the next two years. Northrop Grumman DSD usesthis plan as a focus tool in guiding the allocation of re-sources and in establishing the performance objectives foremployees. Operations uses the plan as a key communica-tion tool for department employees, division executivemanagement, business area management, and functionalmanagement. The plan is accessible via hard copy, Opera-tions’ Intranet website, and at all-hands meetings.

In 1999, Operations released its first strategic plan whichwill be updated annually. This plan establishes a series ofinternal benchmarks by which Operations will evaluate itsprogress and achievements every year. To frame the plan,Operations established five core goals: satisfy customers;remain employer of choice; build affordable products;maintain quick reaction/time to market; and assure next-generation capability. In addition, five focus areas wereadopted to achieve these goals and organize the plan. These

43

focus areas are leadership and people; process and tools;performance; facilities and capital infrastructure; and tech-nology.

By developing a Strategic Plan, Operations estab-lished a stated vision and mission along with issues,challenges, strategies, and goals which are defined,elaborated, and documented in one location. The Stra-tegic Plan is a valuable tool that can evolve to meet thebroadening internal and external environments of theOperations Department.

Supplier Rating System

In 1993, Northrop Grumman DSD created a SupplierManagement Program designed to minimize incominginspection, reduce the company’s supplier base, and de-velop a supplier recognition program to reward superiorperformance. The previous system required personnel tomanually calculate supplier ratings and reports. No integra-tion existed with the company’s inspection, quality, orprocurement systems. As a result of organizational mergersin 1996, Northrop Grumman DSD’s supplier base hadgrown to approximately 4,000.

Key to the Supplier Management Program is the Inte-grated Supplier Rating System (ISRS), which measuressupplier performance for delivery and quality. ISRS wasdesigned to allow for continuous improvement by utilizingtables that permit thresholds to be raised as performanceimproves. A unique aspect of ISRS is the integration of datainto the company’s procurement and quality systems. Fea-tures of ISRS include:

• Automated lockout for unapproved or disapprovedsuppliers, as well as suppliers with poor ISRS productratings.

• Electronic approvals by management to overrideautomated lockout for suppliers with poor ISRS productratings.

• ISRS report cards for suppliers.

• Automatic utilization of ISRS quality performancedata to determine the acceptance testing necessary foreach product received.

Since implementing ISRS, Northrop Grumman DSD hasreduced its supplier base to less than 1,200. In addition, thesupplier rating system provides QA with the flexibility toperform supplier analyses at varying levels (e.g., part,commodity, supplier, site) for the current month as well asthree-, six-, or 12-month periods.

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Point of Contact:Mr. Richard HenryNational Center for Excellence in MetalworkingTechnologyc/o Concurrent Technologies Corporation100 CTC DriveJohnstown, PA 15904-3374(814) 269-2532FAX: (814) [email protected]

Navy Joining Center

The Navy Joining Center (NJC) is operated by the EdisonWelding Institute and provides a national resource for thedevelopment of materials joining expertise and the deploy-ment of emerging manufacturing technologies to Navycontractors, subcontractors, and other activities. The NJCworks with the Navy to determine and evaluate joiningtechnology requirements and conduct technology develop-ment and deployment projects to address these issues.

Point of Contact:Mr. David P. EdmondsNavy Joining Center1250 Arthur E. Adams DriveColumbus, OH 43221-3585(614) 688-5096FAX: (614) [email protected]

Energetics Manufacturing TechnologyCenter

The Energetics Manufacturing Technology Center (EMTC)addresses unique manufacturing processes and problems ofthe energetics industrial base to ensure the availability ofaffordable, quality, and safe energetics. The focus of theEMTC is on process technology with a goal of reducingmanufacturing costs while improving product quality andreliability. The EMTC also maintains a goal of developmentand implementation of environmentally benign energeticsmanufacturing processes.

Point of Contact:Mr. John BroughEnergetics Manufacturing Technology Center

Indian Head DivisionNaval Surface Warfare Center101 Strauss AvenueBuilding D326, Room 227Indian Head, MD 20640-5035(301) 744-4417DSN: 354-4417FAX: (301) [email protected]

Institute for Manufacturing and SustainmentTechnologies

The Institute for Manufacturing and Sustainment Technolo-gies (iMAST), was formerly known as Manufacturing Sci-ence and Advanced Materials Processing Institute. Locatedat the Pennsylvania State University's Applied Research Labortory,the primary objective of iMAST is to address challenges relativeto Navy and Marine Corps weapon system platforms in the areasof mechnical drive transmission techologies, materials sci-ence technologies, high energy processing technologies,and repair technology.

Point of Contact:Mr. Henry WatsonInstitute for Manufacturing and SustainmentTechnologiesARL Penn StateP.O. Box 30State College, PA 16804-0030(814) 865-6345FAX: (814) [email protected]

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National Network for Electro-OpticsManufacturing Technology

The National Netowork for Electro-Optics ManufacturingTechnology (NNEOMT), a low overhead virtual organiza-tion, is a national consortium of electro-optics industrialcompanies, universities, and government research centersthat share their electro-optics expertise and capabilitiesthrough project teams focused on Navy requirements.NNEOMT is managed by the Ben Franklin TechnologyCenter of Western Pennsylvania.

Point of Contact:Dr. Raymond V. WickNational Network for Electro-Optics ManufacturingTechnologyOne Parks BendBox 24, Suite 206Vandergrift, PA 15690(724) 845-1138FAX: (724) [email protected]

Gulf Coast Region Maritime TechnologyCenter

The Gulf Coast Region Maritime Technology Center(GCRMTC) is located at the University of New Orleans andfocuses primarily on product developments in support of theU.S. shipbuilding industry. A sister site at Lamar Universityin Orange, Texas focuses on process improvements.

Point of Contact:Dr. John Crisp, P.E.Gulf Coast Region Maritime Technology CenterUniversity of New OrleansCollege of EngineeringRoom EN-212New Orleans, LA 70148(504) 280-5586FAX: (504) [email protected]

Manufacturing Technology Transfer Center

The focus of the Manufacturing Technology Transfer Cen-ter (MTTC) is to implement and integrate defense andcommercial technologies and develop a technical assistancenetwork to support the Dual Use Applications Program.MTTC is operated by Innovative Productivity, Inc., inpartnership with industry, government, and academia.

Point of Contact:Mr. Raymond ZavadaManufacturing Technology Transfer Center119 Rochester DriveLouisville, KY 40214-2684(502) 452-1131FAX: (502) [email protected]

As of this publication, 119 surveys have been conducted and published by BMP at the companies listedbelow. Copies of older survey reports may be obtained through DTIC or by accessing the BMPnet. Requestsfor copies of recent survey reports or inquiries regarding the BMPnet may be directed to:

Best Manufacturing Practices Program4321 Hartwick Rd., Suite 400

College Park, MD 20740Attn: Anne Marie T. SuPrise, Ph.D., Acting Director

Telephone: 1-800-789-4267FAX: (301) 403-8180

[email protected]

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1986

1985

A p p e n d i x G

Completed Surveys

1987

Litton Guidance & Control Systems Division - Woodland Hills, CA

Honeywell, Incorporated Undersea Systems Division - Hopkins, MN (Alliant TechSystems, Inc.)Texas Instruments Defense Systems & Electronics Group - Lewisville, TXGeneral Dynamics Pomona Division - Pomona, CAHarris Corporation Government Support Systems Division - Syosset, NYIBM Corporation Federal Systems Division - Owego, NYControl Data Corporation Government Systems Division - Minneapolis, MN

Hughes Aircraft Company Radar Systems Group - Los Angeles, CAITT Avionics Division - Clifton, NJRockwell International Corporation Collins Defense Communications - Cedar Rapids, IAUNISYS Computer Systems Division - St. Paul, MN (Paramax)

Motorola Government Electronics Group - Scottsdale, AZGeneral Dynamics Fort Worth Division - Fort Worth, TXTexas Instruments Defense Systems & Electronics Group - Dallas, TXHughes Aircraft Company Missile Systems Group - Tucson, AZBell Helicopter Textron, Inc. - Fort Worth, TXLitton Data Systems Division - Van Nuys, CAGTE C3 Systems Sector - Needham Heights, MA

McDonnell-Douglas Corporation McDonnell Aircraft Company - St. Louis, MONorthrop Corporation Aircraft Division - Hawthorne, CALitton Applied Technology Division - San Jose, CALitton Amecom Division - College Park, MDStandard Industries - LaMirada, CAEngineered Circuit Research, Incorporated - Milpitas, CATeledyne Industries Incorporated Electronics Division - Newbury Park, CALockheed Aeronautical Systems Company - Marietta, GALockheed Corporation Missile Systems Division - Sunnyvale, CAWestinghouse Electronic Systems Group - Baltimore, MDGeneral Electric Naval & Drive Turbine Systems - Fitchburg, MARockwell International Corporation Autonetics Electronics Systems - Anaheim, CATRICOR Systems, Incorporated - Elgin, IL

Hughes Aircraft Company Ground Systems Group - Fullerton, CATRW Military Electronics and Avionics Division - San Diego, CAMechTronics of Arizona, Inc. - Phoenix, AZBoeing Aerospace & Electronics - Corinth, TXTechnology Matrix Consortium - Traverse City, MITextron Lycoming - Stratford, CT

1988

1989

1990

Resurvey of Litton Guidance & Control Systems Division - Woodland Hills, CANorden Systems, Inc. - Norwalk, CTNaval Avionics Center - Indianapolis, INUnited Electric Controls - Watertown, MAKurt Manufacturing Co. - Minneapolis, MNMagneTek Defense Systems - Anaheim, CARaytheon Missile Systems Division - Andover, MAAT&T Federal Systems Advanced Technologies and AT&T Bell Laboratories - Greensboro, NC and Whippany, NJResurvey of Texas Instruments Defense Systems & Electronics Group - Lewisville, TX

Tandem Computers - Cupertino, CACharleston Naval Shipyard - Charleston, SCConax Florida Corporation - St. Petersburg, FLTexas Instruments Semiconductor Group Military Products - Midland, TXHewlett-Packard Palo Alto Fabrication Center - Palo Alto, CAWatervliet U.S. Army Arsenal - Watervliet, NYDigital Equipment Company Enclosures Business - Westfield, MA and Maynard, MAComputing Devices International - Minneapolis, MN(Resurvey of Control Data Corporation Government Systems Division)Naval Aviation Depot Naval Air Station - Pensacola, FL

NASA Marshall Space Flight Center - Huntsville, ALNaval Aviation Depot Naval Air Station - Jacksonville, FLDepartment of Energy Oak Ridge Facilities (Operated by Martin Marietta Energy Systems, Inc.) - Oak Ridge, TNMcDonnell Douglas Aerospace - Huntington Beach, CACrane Division Naval Surface Warfare Center - Crane, IN and Louisville, KYPhiladelphia Naval Shipyard - Philadelphia, PAR. J. Reynolds Tobacco Company - Winston-Salem, NCCrystal Gateway Marriott Hotel - Arlington, VAHamilton Standard Electronic Manufacturing Facility - Farmington, CTAlpha Industries, Inc. - Methuen, MA

Harris Semiconductor - Melbourne, FLUnited Defense, L.P. Ground Systems Division - San Jose, CANaval Undersea Warfare Center Division Keyport - Keyport, WAMason & Hanger - Silas Mason Co., Inc. - Middletown, IAKaiser Electronics - San Jose, CAU.S. Army Combat Systems Test Activity - Aberdeen, MDStafford County Public Schools - Stafford County, VA

Sandia National Laboratories - Albuquerque, NMRockwell Defense Electronics Collins Avionics & Communications Division - Cedar Rapids, IA(Resurvey of Rockwell International Corporation Collins Defense Communications)Lockheed Martin Electronics & Missiles - Orlando, FLMcDonnell Douglas Aerospace (St. Louis) - St. Louis, MO(Resurvey of McDonnell-Douglas Corporation McDonnell Aircraft Company)Dayton Parts, Inc. - Harrisburg, PAWainwright Industries - St. Peters, MOLockheed Martin Tactical Aircraft Systems - Fort Worth, TX(Resurvey of General Dynamics Fort Worth Division)Lockheed Martin Government Electronic Systems - Moorestown, NJSacramento Manufacturing and Services Division - Sacramento, CAJLG Industries, Inc. - McConnellsburg, PA

City of Chattanooga - Chattanooga, TNMason & Hanger Corporation - Pantex Plant - Amarillo, TXNascote Industries, Inc. - Nashville, ILWeirton Steel Corporation - Weirton, WVNASA Kennedy Space Center - Cape Canaveral, FLDepartment of Energy, Oak Ridge Operations - Oak Ridge, TN

1994

1992

1991

1993

1995

1996

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1997

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Headquarters, U.S. Army Industrial Operations Command - Rock Island, ILSAE International and Performance Review Institute - Warrendale, PAPolaroid Corporation - Waltham, MACincinnati Milacron, Inc. - Cincinnati, OHLawrence Livermore National Laboratory - Livermore, CASharretts Plating Company, Inc. - Emigsville, PAThermacore, Inc. - Lancaster, PARock Island Arsenal - Rock Island, ILNorthrop Grumman Corporation - El Segundo, CA(Resurvey of Northrop Corporation Aircraft Division)Letterkenny Army Depot - Chambersburg, PAElizabethtown College - Elizabethtown, PATooele Army Depot - Tooele, UT

United Electric Controls - Watertown, MAStrite Industries Limited - Cambridge, Ontario, CanadaNorthrop Grumman Corporation - El Segundo, CACorpus Christi Army Depot - Corpus Christi, TXAnniston Army Depot - Anniston, ALNaval Air Warfare Center, Lakehurst - Lakehurst, NJSierra Army Depot - Herlong, CAITT Industries Aerospace/Communications Division - Fort Wayne, INRaytheon Missile Systems Company - Tucson, AZNaval Aviation Depot North Island - San Diego, CAU.S.S. Carl Vinson (CVN-70) - Commander Naval Air Force, U.S. Pacific FleetTobyhanna Army Depot - Tobyhanna, PA

Wilton Armetale - Mount Joy, PAApplied Research Laboratory, Pennsylvania State University - State College, PAElectric Boat Corporation, Quonset Point Facility - North Kingstown, RINASA Marshall Space Flight Center - Huntsville, ALOrenda Turbines, Division of Magellan Aerospace Corporation - Mississauga, Ontario, Canada

1998

1999

2000 Northrup Grumman, Defensive Systems Division - Rolling Meadows, IL