Leading a lean transformation in the wake of a disaster

Abstract

Through a disaster, a company is presented with an opportunity to leverage the momentum from recovery efforts to drastically change the way business is conducted. In the case of Raytheon's Solid State Microwave division, the loss of its substrate fabrication facility due to a catastrophic fire prompted the company to create a closer, more integrated relationship with a local contract manufacturer. This more integrated relationship led to drastically reduced manufacturing cycle times and introduced Raytheon's Solid State Microwave division to a Just-In-Time relationship with a contract manufacturer. The more integrated relationship between the two companies also highlighted the potential labor savings associated with enabling operators to retrieve parts from small, satellite inventories (mini-markets) instead of using kits prepared by stock clerks in a centralized storeroom. It is hoped that Raytheon Solid State Microwave and Raytheon's Supply Chain Management division will apply these lessons to other suppliers as well as within Raytheon's own internal manufacturing sites.