Cost Management with Data for Costing Mort Anvari Director, Acquisition Costing (SAFM-CEA)

1. Cost Management with Data for Costing Mort Anvari Director, Acquisition Costing (SAFM-CEA) June 18, 2008 Cost Management Panel PRICE Customer Symposium

2. T ↑ or P ↑ C ↑ T ↑ or P ↑ C ↑ • TCP = Time, Cost, & Performance • Acquisition Environment: • Stable T & P Cost Management • Changing T & P Program Management Cost Management and Cost Estimating Variance around estimate Variance around estimate Actual Estimate Actual More Costing More Costing and Cost Data Reporting Result in Lower Cost Risk and Effective Cost Management

3. Data Quality? CSDR Data Collection Process Cost Management Needs Data Visibility Labor vs. Material Direct vs. Indirect Rec. vs. Non Rec. Unique vs. Common Contractor allocation Contracting Contractor Data / Reports: Contractor1 Contractor Accounting Systems: G2 R3 Contractor 2 Contractor Allocation R12 R8 R7 R5 R18 S4 R16 R1 R11 R14 S2 R2 Contractor3 S5 R4 S6 R10 S1 G1 G3 S9 R17 R13 S7 R15 S10 R9 S3 S8 R6 Process vs. Quality. • Process affects data quality. • Increases probability for data errors. • Results in mapping / allocation inconsistencies.

4. Data Issues Cost Management Demands Quality Cost Data • Current Data Reporting and Usage Issues (CSDR CCDR, SRDR, and CPR for EVM). • Family or System of Systems (Commonality Issue) • LSI, JV, Prime, Sub (Contracting Issue) • CPIF, FFP,. . Reporting Requirements (Contract Type Issue) • Manufacturing, Services, SW, and ERP (Activity Type Issue) • Mod, ECP, and Incremental Contracts (Completeness Issue) • Competition and Business Base Issues (Quantity issue) • Physical, Technical, TRL, Performance (Technology Issue) KPP and Capability Data Issue Data Allocation Issue? Labor – Material Direct – Indirect Recurring – Non-Recurring Unique - Common

5. Cost Data Flow Contractor Cost Accounting Systems Contractor Sys3 Contractor Sys4 Contractor Sys2 Contractor Sys1 Government Informational Systems / Databases OSMIS CLS ACDB Cost Analysts Current Information Access Flow. • Need for Data Warehousing. • Repository of electronically stored data. • Several databases typically supply data to the warehouse. • Improved ease of data retrieval and data quality.

6. Data Warehousing for Cost Management ExternalData Contractor Cost Accounting Systems Information Delivery System DataWarehouse Government Informational Systems / Databases Data Marts External Users Proposed Information Access Flow. • Raw Data loaded directly from contractor accounting system into data warehouse. • Metadata: ‘Data about Data’. • Data visualization / data warehousing / intelligent data mining. • Global definitions that can be referenced by many different databases.

7. Cost Analysis ERP Cost Management through Integrated Cost - Performance - Schedule Data, Models, and Tools • Potential for Enterprise Resource Planning (ERP) of Cost Analysis Data and Models across the DoD. • Enable data and information sharing. • Allow automation and integration of business processes. • Data for Costing – Vision: • Collect raw data with more flexibility and focus on metadata development – XML. • Data warehousing of raw and current data. • Acquiring data mining and search tools to assist data analysis. Cost Analysts need to be more involved in the process. more on ERP at: http://www.anvari.net/E_Proc_Model.htm