A rmy cost culture initiative
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A rmy Cost Culture Initiative. May 2013. DASA(CE). Brief to the Honorable Dr. Westphal. Changing Processes Resource Informed Decisions (CBA) Changing Technology Enterprise Resource Planning ( GFEBS, LMP, GCSS-A, IPPS-A ) Changing People Training.

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A rmy Cost Culture Initiative

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A rmy cost culture initiative

Army Cost Culture Initiative

May 2013

DASA(CE)

Brief to the Honorable Dr. Westphal

  • Changing Processes

    • Resource Informed Decisions (CBA)

  • Changing Technology

    • Enterprise Resource Planning (GFEBS, LMP, GCSS-A, IPPS-A)

  • Changing People

    • Training

Cost Management Changes the Army Culture

Ad-hocArmy todayCost Managed Organization

1


A rmy cost culture initiative

Cost Management End-to-End Process

Cost Management Changes the Cost Culture

People

Leadership Commitment

Training

RM Workforce

Technology

Data Quality (ERP)

Tools & Models

  • Process

  • Cost Planning

  • Cost Analysis (CBA,)

  • Cost Integration to Requirement, Acquisition, & Resource

  • Cost Control (LSS)


A rmy cost culture initiative

Cost Management E2E Process

its Current Maturity

May 2013

People

Leadership Commitment

Training

FM Workforce (AFMO)

Technology

Data Quality (GFEBS)

Tools & Models

  • Process

  • Cost Planning

  • Cost Analysis (CBA, AoA)

  • Cost Integration to Requirement, Acquisition, & Resource

  • Cost Control (LSS & AFBRT)

Cost Management Professionals

  • Goal: Better Value for Lower Cost

  • Stewardship of nation’s resources

  • Cost informed decision making

  • Continuous improvement

  • Accountability for costs

  • Tracking progress

as of May 2013


A rmy cost culture initiative

Army Resource Informed Decisions

(as of 09 May 13)

May 2013


A rmy cost culture initiative

GFEBS Technology

Enables Cost Management

May 2013

DASA(CE)

Army Cost Management Framework

GFEBS will provide

Multiple Cost Views for Decision Making at Every Level

… provide essential data

to transform the Army

to a cost culture


Gfebs provides total cost visibility

GFEBS Provides Total Cost Visibility

1. Customers

May 2013

DASA(CE)

2.Contracts

Total Cost Visibility Example:

1- Customers by Contracts

2- Customers by Services

3- Customers by Funding

4- Customers by Cost Centers

5- Contracts by Service

6- Contracts by Funding

7- Contracts by Cost Centers

8- Services by Funding

9- Service by Cost Centers

10 –Funding by Cost Centers

1

2. Contracts

3.Services

2

5

3. Services

4.Funding

N * (N-1) / 2

for each FY

6

3

8

4. Funding

PE

5.Cost Centers

9

10

4

7

10 views (table) cost visibility for five dimension Polygon


Army cost management training

Army Cost Management Training

May 2013

DASA(CE)

Cost Management Education

  • CMEX

  • Cost

  • Leadership-Driven Cost Management

  • Cost-Benefit Analysis

  • Value Proposition

Principles of Cost Analysis

and Management

Cost Management Executive Course

  • PCAM

  • Cost Terms

  • Cost Concepts

  • Fundamentals of Cost Accounting and Cost Management

  • Practical Exercises

  • Cost-Benefit Analysis

Intermediate Cost Analysis

and Management

  • ICAM

  • Cost Flow Methods

  • Analysis and Reporting

  • Practical Exercises

  • Complex Case Studies

  • Cost-Benefit Analysis

  • CMCC

  • Managerial Cost Accounting

  • Operations Management

  • Cost Control and Cost-Benefit Analysis

  • Organizational Development for Cost Managers

Army Cost Management Certificate Course

TBD

3 Weeks

3 Weeks

4 Weeks

GFEBS Online Training

Cost Benefit Analysis (CBA) Training

  • GFEBS General

  • GFEBS Overview

  • Integrated Process Overview

  • Navigation and Reports

  • Business Intelligence Reporting

  • Fundamentals

GFEBS: Other Training

  • GFEBS Other Training

  • Cost Management

  • Equipment and Assets

  • Financials

  • Funds Management

  • Plant Maintenance

  • Project Systems

  • Real Property

  • Reimbursable

  • Spending Chain

  • 4-Hour CBA Training

  • What is CBA?

  • Why do we need CBA?

  • Who are the key players?

  • What Army processes call for CBA

  • What are the processes and methodologies used

  • 4-Day CBA Training

  • Policies, Regulations, Methodology, and Roles

  • Workflow Automation Tools

  • Other Tools

  • Case Studies and Exercises

  • Other Training

  • Online

  • Defense Acquisition University (DAU)

  • Force Management (FA50)


Cm community of practice

CM Community of Practice

May 2013

Cost Warrior Listserv

Cost Warrior Roundtable

Cost Warrior Newsletter

AKO Cost Management Community

CBA Field Trainers

Cost Warrior milSuite web site

1


Senior leadership commitment

Senior Leadership Commitment

May 2013

DASA(CE)

SECDEF Leon Panetta, 5 Jan 12: New DoD Strategic Guidance—Impact of fiscal constraints

We are shaping a Joint Force for the future that will be smaller and leaner, but will be agile, flexible, ready, and technologically advanced.

  • Army

  • USA/VCSA memo (30 Dec 2009) Directed CBA's are to be prepared (For APGM and TGM, Force Design Updates, Concept Plans, Part of VCSA portfolio analyses, ACP, BRP, AR2B, etc..)

  • SECARMY McHugh at AUSA, 10 October 2011

  • USA Efficiency Memo, 2 September 2010

  • ASA-FM&C Cost Management Memo, 7 January 2011

  • Army Campaign Plan Object 9.4 and 9.8

  • OSD

  • SECDEF Memo, 16 August 2010

  • SECDEF Robert Gates 24 May 11

  • SECDEF Leon Panetta, 5 Jan 12

  • USD (AT&L) Dr. Ashton Carter, June 28, 2010 Better Buying Power

  • DEPSEC William Lynn, 11 May 11

SECDEF Robert Gates 24 May 11:

  • …not repeat the mistakes of the past

  • …salami-slicing” approachresults in a hollowing-out of the force

  • USD (AT&L) Dr. Ashton Carter, June 28, 2010: Better Buying Power: Mandate …

  • …we can't support our troops with the capability they need unless we achieve greater efficiency (doing “more without more”)

  • DEPSEC William Lynn, 11 May 11:

  • America’s cut forces after every war: WW II, Korea, Vietnam, Iraq

  • …the Army had to reversecourse, rebuild

  • …we’re 0-for-4 in managing drawdowns

  • SECARMY McHugh at AUSA Oct. 10, 2011: Army Bracing for More Budget Cuts

  • No matter what happens, we are not going to have a hollow force

  • We have been analyzing the best ways to meet these challenges, …and do it in a way that truly makes sense.


Army campaign plan objective 9

Army Campaign Plan Objective 9

May 2013

DASA(CE)

OBJECTIVE: Increase the number of Generating Force (Infrastructure) organizations executing quarterly cost management reviews, increase the use of cost benefit analysis and improve the Cost Management Maturity Model index score.

10


Army campaign plan objective 91

Army Campaign Plan Objective 9

May 2013

1

11


A rmy cost culture initiative

Cost Management

Policy and Guidance

May 2013

1


A rmy cost culture initiative

Cost Culture Activities

Mapped to Process, Technology, and People

May 2013


Cost management acronyms

Cost Management Acronyms

May 2013


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