Karen Walker
Raytheon's chairman and chief executive officer Dan Burnham says the key task of his company is to focus on the fundamentals ¡ working capital, customers and bringing in cash.
Raytheon has had a rough financial ride over the last year. Year 2000 second quarter reports, released last week, showed net income down to $49 million versus $290 million in 1999. But the company's order backlog is up 20% to a record $25.6 billion and aircraft deliveries have continued unabated ¡ 145 by the end of the second quarter. "We have world-class technology that we will be showcasing during the show," says Burnham. Raytheon's sixth sigma is paying off. I know that eyes often glaze over when we talk about sixth sigma, but it is essential for the future of Raytheon. It's about driving up quality.
Improved
We are in the second year of it now and have saved $25 million. It has improved cash flow by $30 million. We have trained more than 50,000 people on it and have more than 300 black belt experts. I don't know if any other company has ever ramped up that quickly.
Listing some examples of how sixth sigma work practices have helped the bottom line, Burnham pointed to how production cycle time on the Hawker Horizon business jet has improved by 76%.Six of Raytheon's business aircraft are on display at the show. It has turned into a booming business, Burnham says. "Since all of us live on airplanes these days, we know how tough it is out there and how high the load factors are. It is creating an unprecedented demand for business aircraft." Burnham adds that by focusing on Raytheon's core strengths in both the commercial and military sectors, such as mission and information systems that provide customers with the interoperability they seek, Raytheon will restore investor confidence.
Source: Flight Daily News