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Natel Praised in Article in Raytheon InVision Newsletter

IN Aerospace & Defense, Amazing Things, Mergers, Acquisitions & Divestitures, Microelectronics, . . . On 06-06-2004

Another Major Success!

As the Raytheon article states, Natel has achieved another success in our quest to be the premier supplier for Raytheon, as well as all our customers.

We were able to provide an extremely fast solution for a program stoppage situation, that Raytheon by their own admission believed would take a year and a half to solve. How we did it was a combination of some risk taking, aggressive problem anticipation, proactive solution definition and old fashioned hard work.

Aggressively working together made it happen!

As the article suggests, this was not just adding a new part number to existing commodity capability, but in fact we added a whole new product, which required us to acquire machinery, technology and process know how, all in an extremely accelerated environment. Through an agreement set up with CMC Interconnect Technologies, a technology house, Natel immediately moved forward with CMC’s counsel to establish a full Aluminum Nitride Line. Equipment was purchased over the course of several days and trucked into our facility within another day. Facility crews were waiting to modify electrical, plumbing and other utility requirements. Skilled operators were identified and brought in on a contract basis to begin equipment check out. Raw materials were waiting and available as the equipment came on line, and within several weeks from the start, we were test firing.

In the mean time, Raytheon seeing the initiative of Natel, provided the artwork and drawings necessary to manufacture the actual part numbers.

Due to a difference in chemistry of the AlN ceramic, a partial redesign was accomplished over just a few days, so that as the test firing was completed, working files were ready to begin producing actual part layers. Within days, complete layer sets were available and full panels were laminated and ready for firing. As fired parts became available, samples were sent to CMC’s lab where SEM analysis and thermal conductivity tests were performed, demonstrating the compliance of the fired parts to all of Raytheon’s requirements, the first time! In parallel, the remaining parts were sent out for post-fire metalization. Again, working closely with this tier, problems had been anticipated, schedules had been adjusted and within a week, parts were back for final operations and finishing. Beginning to end, we had acquired and setup the equipment, developed the process and produced fully compliant hardware inside of 10 weeks.

All during this process, Raytheon engineering was monitoring the progress and providing their insight into previous lessons learned. The collective effort of Natel, CMC and Raytheon, focused on a specific goal and time table, allowed for an extremely smooth and successful start up, not only exceeding our customers expectations, but literally astounding them with speed and efficiency with which we set out and accomplished our goal.

Adding to previous successes!

This however is not a single event. Natel Engineering has been a supplier to Raytheon since 1975 and three years ago uniquely established itself as a highly valued partner during a challenging accelerated delivery period for hybrids for Raytheon’s Navy Radar customers. As a Red Team member, Natel, who inherited 100% delinquencies, was challenged to deliver. In less than a year, despite numerous and repeated Raytheon imposed engineering changes, Natel had all 33 part types on Raytheon’s manufacturing MRP. The F/A18 and F15V1 Programs never missed a module build, much less a contractual delivery. Natel performed without waiting for PO revisions, never submitted out-of-scope price adjustments or expedite charges and then, to streamline the process, purchased the supply contract to eliminate the middleman. As a note on pricing, the program cost to Raytheon has been reduced from almost $80,000 a ship set in 1999 to $59,500 currently, in today’s dollars.

Providing re-active solutions!

Late last year when Natel found out that Raytheon was in a bind for continuous flow of LTCC product, Natel bought the failing Scrantom Engineering, absorbed the losses, never requested contract pricing adjustments, infused its unique brand of Lean Manufacturing to improve the yields, and again, never missed a single build schedule.

In a related move, Natel has acquired all the assets of the recently closed LTCC operations of National Semiconductor, and has acquired the building next door to our Chatsworth facility to expand its capacity for the growing ceramic and microelectronics operations.

Providing pro-active solutions!

What’s next? Clearly Natel and Raytheon share a vision of a totally open and mutually cooperative working relationship. This prompted Raytheon to sponsor a significant integrated supply chain initiative with Natel. Natel committed to provide technically complex subsystems for an electronic counter measures program at target pricing one-third the programs current experience. The success of this effort, coupled with Raytheon’s already outstanding technical performance, will give Raytheon a significant edge in capturing the enormous sales potential.

Let Natel provide solutions for you !!

Natel has demonstrated and is capable of repeating this style of providing solutions for all its customers. We have developed a unique style with a competent group of professionals who are poised to make you successful.

Please contact us at 818-734-6561 and let’s discuss how Natel can be part of your successful future.


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