Standard Missile 6 Cooperative Earned Value Program Management Presentation Title April 20, 2017 Standard Missile 6 Cooperative Earned Value Program Management Kirk Johnson (IWS 3A SM PM) Tim Lardy (RMS SM6 PM) 1 June 2009 Copyright © 2009 Raytheon Company. All rights reserved. Customer Success Is Our Mission is a registered trademark of Raytheon Company. Speaker Name

SM-6 Program Summary Program Plan Design Overview – May ‘08 Capability Presentation Title SM-6 Program Summary April 20, 2017 Program Plan Design Milestone B completed 15 Jun ‘04 Contract Award 03 Sep ‘04 SRR/SFR Dec ‘04 – SFR Completed 2 Months Early IBR Feb 05 PDR/Gate 7: Jun ‘05 – Completed 2 Months Early DRR/Gate 8: Mar ‘06 – Completed 4 Months Early WSMR Testing: ‘07-’09 – Direct Hit on first 2 guided flights DT/OT FY10 IOC planned in FY10 Overview – May ‘08 Capability 80% Complete ITD CPI: .98, ITD SPI: 0.99 GTV 1 June 08 – Direct Hit GTV 2 Sept 08 – Direct Hit CTV 29 Jan 09 – Did not launch Retest Aug 09 GTV 3 scheduled for Nov 09 First DT/OT missile hardware in work for delivery this fall Provides Area Defense Capable of Over-The-Horizon Engagements Enabler for Integrated Fire Control Capable against Overland Cruise Missile 4/20/2017 Speaker Name

Acquisition/Cultural Changes Its Not All Rocket Science Presentation Title April 20, 2017 Acquisition/Cultural Changes Its Not All Rocket Science STREAMLINED ACQUISITION MODEL LEGACY ACQUISITION MODEL Detailed Statement of Work Many Specifications Separate Seeker Developments Subjective Award Fee Separate Factories Customer/Contractor Relationship 5 Page Statement of Objectives Single Msl Performance Specification Common Active Seeker Family Results-Oriented Objective Award Fee Common Factories, Volume Production ToPP- Total Performance Partnering Acquisition Philosophy Must Be As Innovative As Technical Solution 4/20/2017 Speaker Name

Acquisition/Cultural Changes Its Not All Rocket Science Presentation Title April 20, 2017 Acquisition/Cultural Changes Its Not All Rocket Science Culture / Communication High Priority From the Beginning Develop a Consistent Focused Team Intent on Mission of Delivering Capability Small, Engaged, Informed Govt Teaming inside Contractor IPTs Counterparts Identified and Maintained throughout phase Web Based Information Sharing System (WISDM) Combined Contractor/Government Reviews Business, technical, programmatic Arbinger Training Raytheon Six Sigma Culture defined program mission/vision, issue resolution, Program office size Low cost properly locating resources – TechRep and TDA elimination/duplication of responsibilties New Culture Requires Partnership Between Team Members 4/20/2017 Speaker Name

Cooperative Successes Presentation Title April 20, 2017 Cooperative Successes Government and contractor teams participated in Alpha contracting process to generate technical scope, schedule & cost baseline for the program Required alignment of technical objectives, schedule and budget realities Scope agreements hammered out early in the baselining process Schedule development took into account the possibility of test failures and resulted in an executable program plan Successful IBR in Feb 2005 Baseline is still in effect today (no re-baselines since contract start) RMS provides an EV “quick look” to USN cost team 10 days after month end to facilitate timely & objective analysis Data provided in USN preferred WINSIGHT format Government (USN and DCMA) participates in RMS monthly Earned Value reviews Diligent participation by execution team and management SM6 EVMS DCMA COE Audit Results Kudos received from both DCMA audit teams on SM6 use of Earned Value SM6 management team received an RMS excellence award for performance during 2006 EV audit Cooperation & Management Focus Drove Success 4/20/2017 Speaker Name

Program EVM “Early Warning”Benefits Presentation Title April 20, 2017 Program EVM “Early Warning”Benefits Principle benefit of EVM during program execution phase is providing an early warning for future problems Generated “Watch Account” metric to be able to track Control Account Performance to EAC CAM’s were spending to EAC but it was not clear if they were actually achieving the performance necessary to meet EAC New metric tracks actual performance to promised performance Allocated MR to antenna supplier to build additional tooling to improve delivery schedule and mitigate risk #183 Antenna delivery schedule from supplier was predicted to drive build of POM GS’s Supplier indicated that additional tooling would improve cycle times and reduce schedule pressure Antennas are no longer the critical path for GS build MBIT Performance metrics (cost/schedule variance, EAC, TCPI, etc.) were showing that the team was starting to struggle Program worked with functional department to bring in new resources and make surgical personnel changes Team is back on track, performance has improved & product will be delivered in time to support production 4/20/2017 Speaker Name

SM-6 Managing Using EV Daily Weekly Bi-Monthly Monthly Presentation Title April 20, 2017 SM-6 Managing Using EV Daily Daily Standup Meetings Status of Pacing Items (Chaired by PM and CE) Weekly Schedule Updates Critical Path Reviews (Chaired by PM and Planner) Bi-Monthly Tim, I added the EVMS callendar. Schedule/Critical Path Reviews (Chaired by PM and Planner) Monthly Mangement Reviews (Chaired by PM) Risk/Opportunity Reviews (Chaired by CE) 4/20/2017 Speaker Name

SM-6 Monthly Management Metrics Sampling Presentation Title April 20, 2017 SM-6 Monthly Management Metrics Sampling Top Ten Cost/Schedule Drivers CPI/SPI Trend Data CPLI (FCA): 1.12 Critical Path EAC Watch Accounts 4/20/2017 Speaker Name

On Time, On Budget Delivery of Warfighter Capability Presentation Title April 20, 2017 Summary Diligent application of management processes (EV) produce significant benefits to the war fighter Stable technical baseline - no scope creep Stable funding requirements Predictable Performance All major program milestones met on time 2 guided flights, 2 direct hits On Time, On Budget Delivery of Warfighter Capability 4/20/2017 Speaker Name

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