Raytheon Enhances Six-Sigma Use -- Quality Standards Applied To Supply Chain

Most companies use Six-Sigma quality standards to measure how well their manufacturing processes work and reduce the number of defects. But defense contractor Raytheon Systems Co. has tweaked the statistical formula to quantify supply-chain and supplier collaboration efforts.

"Six-Sigma is something we associate with manufacturing. It provides companies with a way to look at cash flows, make sure deliveries are on time, and that quality issues are addressed," said Collin Reeves, a supplier technical consultant at Raytheon in Plano, Texas. "But we've taken that process and applied it with our suppliers."

Raytheon's Six-Sigma with Suppliers program, which...