Raytheon s Strategic IT Energy and Resource Management Program
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1 Raytheon s Strategic IT Energy and Resource Management Program 2degrees Champion Award Application February Copyright 2014 Raytheon Company. All rights reserved. Customer Success Is Our Mission is a registered trademark of Raytheon Company.
2 Who We Are Raytheon Company is a technology and innovation leader specializing in defense, security and civil markets throughout the world 2014 net sales: $23 billion 61,000 employees worldwide Headquarters: Waltham, Mass. A Global Leader In Technology And Innovation 2/27/2015 2
3 Strategic Intents Aligned with Company Goals Sustainable IT Operations Virtualize and consolidate servers Work with Facilities to apply best practices to data centers and network closets Coordinate with Facilities on data center consolidation Partner with EHS, Supply Chain on efficient, eco-responsible management of e-waste Minimize the impact of consumables such as paper Leverage technology including cloud computing and predictive analytics Partner for Sustainability Provide secure collaboration and social media platforms to reduce travel and build social capital Deploy applications and analytics to enable other functions to drive sustainability in their operations and business processes Participate in strategy development activities A Culture of Sustainability Engage employees Build social capital Leverage and extend Raytheon Six Sigma A Comprehensive Approach To IT Efficiency 2/27/2015 3
4 2015 Sustainability Goals In 2011, Raytheon set public goals for 2015 IT is directly responsible for two and is a major contributor to five additional goals *IT Contributor IT Goal *IT Contributor *IT Contributor IT Goal *IT Contributor *IT Contributor Our Commitment to Future Generations 2/27/2015 4
5 Operating IT Sustainably Drives Efficiencies Generated 2.2MW of Power Savings Sustained Excellence in Applying Best Practices 2/27/2015 5
6 Partnership with Facilities Example: Using wireless sensors to adjust airflows in server rooms Sensors showed we were wasting majority of our under-floor pressure Data enabled floor tile adjustments Zero cost Removed most hotspots Avoided CAPEX for new cooling systems Enabled energy savings Can increase input temperature and still meet requirements Reduce cooling costs by 4% per degree of thermostat setting After Adjusting Floor Tiles and installing two existing floor fans Remo ved overh eating Impro ved coolin g to the inlets Airflow Based on Data - Not Intuition 2/27/2015 6
7 Central Program Office Effective governance Across all businesses and shared services Aligned with senior leadership on company objectives Enterprise-wide goals, metrics, and reporting Facilitates knowledge sharing and leveraging subject matter experts Drives adoption of best practices (temperature set points, air flow techniques, consolidation, virtualization ) Identifies new opportunities Persistent, Enterprise-wide Application of Best Practices 2/27/2015 7
8 Raytheon s Cloud Computing Journey Mission Critical Service Primary Data Centers Opened IaaS Services Configurable Application Hosting Common Service Catalog Value Tier Services Platform Integration Hybrid / External Cloud PaaS Hybrid Cloud Automation Legacy System Virtualization Virtualization ERP PDM Rehost to IaaS Services Rapid Provisioning Consolidation PDM Deployed ERP Rehost to IaaS Services Cloud Based Desktop Additional Automation Leveraging Technology to Gain Efficiencies 2/27/2015 8
9 Server Virtualization Server virtualization is a key basis of cloud computing Replaces multiple physical servers with virtual servers Share a common physical server Example: Site replaced 216 physical servers with same number of virtual servers hosted on only 14 physical servers Significant power consumption reduction Reduced environment emissions Less Hardware Equals Lower Energy, Emissions and Costs 2/27/2015 9
10 Virtualizing Desktops Cloud computing extends energy savings to the desktop Secure data and applications in the data center Less energy used, less hardware required, less e-waste produced Enterprise-wide rollout under way Profiles Apps Data Green IT with power-friendly and longer-lasting thin client devices Employees Can Use a Thin Client or Their Own Device 2/27/
11 Eco-Responsible E-Waste Management Company-wide initiative Global scope IT and non-it managed hardware (e.g. Manufacturing) Partnership IT and Environmental Health and Safety (co-leads) Supply Chain Management Information Security Property Management Global IT Services Areas of concern Information Technology Environmental Financial Improving Efficiencies Across the Full Hardware Lifecycle 2/27/
12 E-Waste Progress and Plans 1Q National supplier selected Large volume e-waste shredding and recycling systems; certified by e-stewards and R2 Moving 13 suppliers to 1 2Q Developed common processes and established online portal. A pilot shipment of desktops netted $36K return to Raytheon demonstrating value of increasing speed to reuse. Began streamlining operations at major sites to reduce costs, shipping expenses, and labor 3Q Began production rollout Regular pickups established across U.S. locations Began secure destruction of hard drives Initiated processing of non-it materials 4Q Continue rollout and optimize shipping. Strengthen partnership with supplier. Become an e-stewards enterprise. Workshop to set approach for next year s focus on global Extend scope to non-us locations (may be other suppliers). Increasing Visibility and Efficiency 2/27/
13 E-Waste Process Simplification Before 13 suppliers Multiple processes based on region, business, etc. Backlogs of systems being held to sell someday or sanitize properly. Before After Single national supplier Common process across the company Example on right shows dramatic process simplification at a site that host multiple business using Raytheon Six Sigma tools After Enterprise Collaboration: 3 states, 4 functions, 4 businesses and 1 partner Enterprise Efficiencies: Reduced labor, shipping, & floor 13 space - Faster asset recovery Creating Efficiency at the End of the Life Cycle 2/27/
14 Converting Scrap to Cash Before: After: Efficient Reuse Process Reduces Waste and Returns Value 2/27/
15 Leveraging IT to Support Enterprise Energy Goals IT collaborating with our facilities department on Smart Campuses Notional Dashboard Example Establish Energy Management / Energy Analytics Integrates energy metrics, historical trend analysis tools, visual contextualization of the assets, alarm notifications, fault diagnostics and role-based views through a high fidelity dashboard Establish Fault Detection and Diagnostics (FDD) Uniquely pinpoint the exact location/the specific piece of equipment that is malfunctioning or behaving inefficiently, and offers a list of possible causes ranked by probability to reduce maintenance repair times. Create Smart Campus Data Warehouse Provides immediate access to plant data which is fundamental to staying efficient and enables optimum plant management for analyzing and reporting Establish Multi-Level Dashboards Turns Big Data into Visual Intelligence IT Helping Other Operations Succeed 2/27/
16 Leveraging IT to Support Other Sustainability Goals Enterprise-Wide energy use IT efficiencies Applications and analytics to support other functions Greenhouse gas reduction Through data collection and reports Enables travelers to choose lower impact itineraries Business travel reductions Through IT collaboration tools (Tele/video conferencing, virtual meeting tools, etc.) Design for sustainability IT systems enable engineers to minimize the use of materials of concern and improve life cycle impacts of products IT supports metrics and regulatory reporting IT Effectiveness Enables Meeting Company Goals 2/27/
17 Creating A Culture of Sustainability Internal social network 900 members Employee engagement Share best practice Sustainability STAR program Learning modules on Green IT, energy Employee recognition Celebrates individual inititiatives Site specific programs Recycling events Education Engaging All Employees 2/27/
18 A Distinctive Means of Creating Sustainability Raytheon Six Sigma Principals for continuous improvement Tools from lean and classic six sigma Systematic approach Eliminate waste Reduce variability Create efficiencies Generate savings Used across the enterprise at all levels Involve, align, and empower employees Continuously improve knowledge in pursuit of perfection Empowering Employees to Drive Efficiency 2/27/
19 Raytheon IT is Making a Difference Efficiencies uncovered through Innovation in strategy and governance Broad and persistent application of best practices Ongoing identification of new opportunities Energy and Resource Efficiency for Raytheon and Global Sustainability 2/27/
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