(8/21/2015) Program Independent Assessment (PIA) Joe Kusick SAS Senior Manager, Program Independent Assessment Chairman, Raytheon EVMS Council November 18, 2002 Presented to the 14 th Annual International Integrated Program Management Conference

(8/21/2015) Agenda Program Independent Assessment (PIA) Goals Objectives Benefits PIA Process Key Focus Areas Summary

(8/21/2015) Goals Early identification of program execution problems Facilitation and completion of the program closure planning process to mitigate program risk and meet and exceed program objectives Program execution that meets and exceeds customer and company requirements in terms of schedule, cost and technical objectives ensuring customer delight and program profitability that meets and exceeds business expectations

(8/21/2015) Objectives Provide knowledge transfer that is both tacit and explicit to the program leadership team so that the IPDS process if followed Provide leading indicators to the program leadership and execution team to facilitate the IPDS process Improve the Raytheon Company financial position by working with the program execution team to identify those opportunities and methodologies to reduce program cycle time, improve efficiencies and reduce waste through cost avoidance and recovery

(8/21/2015) Benefits Program execution that is predictable to ensure that what is promised to our customers, shareholders and employees is delivered A program leadership team that has the knowledge, both tacit and explicit, to execute a program, meet objectives, and grow the business by delighting the customer Career growth fueled by knowledge and performance and the satisfaction that the leadership team is succeeding

(8/21/2015) PIA Process PIA Triggering Mechanisms Strategic implications to the Enterprise Significant customer or senior management issues or concerns — “Show cause” letters, termination for default, poor cost, schedule, technical performance Randomly selected reviews of the business’s programs to assess the health of the organization

(8/21/2015) PIA Process (Cont.) PIAs shall be comprised of program independent experts from within and external to Raytheon The PIA experts will be responsible to identify program issues and determine root cause and corrective action in conjunction with the program leadership team The PIA experts will facilitate: — IPDS Gate Success Criteria and Attributes Enter/Exit Criteria Graded Pass/Fail Criteria — Risk Planning — Closure Planning — Program “report out”

(8/21/2015) PIA Process (Cont.) The PIA experts will facilitate: Program closure planning “follow up” Program Health Assessment — “Look Ahead” — Current Operations(Program Health Assessment) Most important, the PIA experts will facilitate knowledge transfer for each major phase of the program life cycle to the program leadership team Tacit Knowledge Explicit Knowledge

(8/21/2015) Key Focus Areas Customer Issues Cost Schedule Technical Financial Status Funding Cash Flow Profitability People, Processes, and Tools Knowledge Software Hardware Resource Availability “Rice Bowl” Issue Resolution

(8/21/2015) Key Focus Areas Contractual Issues Definitized/Undefinitized work Technical Requirements Adherence to IPDS Projected Performance Design to Unit Production Cost Profitablity Customer Satisfaction Overall Program Health

(8/21/2015) Key Lessons Learned Understand the mission, adequately fund the contract, work to realistic schedules, educate the customer/contractor team The probability of success of a program is determined by the realism by the customer and the contractor during the proposal phase; and the robustness of the initial program plan after contract award Improve the discipline in utilizing the IPDS process. Ensure that the IPDS “Gates” are followed

(8/21/2015) Recent Program Independent Assessment’s APEX Goleta “Go Live” Government DCMA (Roger Christiansen) Stated that the “ PIA performed at Goleta focused the Raytheon Government team on the critical items to achieve program implementation success. The PIA made both Government and Raytheon lead personnel aware of the program management tools available to deal with risk, opportunity planning, the lines of communication, and a closed loop corrective action process. The PIA was a valuable tool to facilitate the transfer of knowledge that lead to successful program execution”. Space Imaging Contracts Outcome: Refocusing of program execution teams on core program management principles to meet reported EAC objectives Navy Radar Contracts Improved Performance to the Program Management Contractual Baseline, avoided a Nunn-McCurdy Breach Other Programs where PIA’s enhanced the Program Execution Team’s probability of success: DD(X), AN-TPQ 47 Firefinder, ADS, TFC, CACS2, PAWS 2, AESA and several NRO programs.

(8/21/2015) Summary PIA’s will ensure the probability that a Program Plan is Integrated Achievable Profitable The resulting program execution satisfies and delights the customer facilitating Business growth