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

2 June 18, 2008 Cost Management and Cost Estimating More Costing and Cost Data Reporting Result in Lower Cost Risk and Effective Cost Management Variance around estimate Estimate Actual More Costing TCP = Time, Cost, & Performance Acquisition Environment: Stable T & P Cost Management Changing T & P Program Management T ↑ or P ↑ C ↑

3 June 18, 2008 Data Collection Process Contractor 1 Contractor 2 Contractor 3 Contractor Accountin g Systems: S1S1 S3S3 S4S4 S2S2 S5S5 S6S6 S7S7 S8S8 S 10 S9S9 Contractor Data / Reports: R1R1 R3R3 R4R4 R2R2 R5R5 R6R6 R7R7 R8R8 R 10 R9R9 R 11 R 12 R 13 R 14 R 15 R 16 R 17 R 18 Labor vs. Material Direct vs. Indirect Rec. vs. Non Rec. Unique vs. Common Contractor allocation Contracting Labor vs. Material Direct vs. Indirect Rec. vs. Non Rec. Unique vs. Common Contractor allocation Contracting G1G1 G2G2 G3G3 Contractor Allocation Data Quality?  Process affects data quality.  Increases probability for data errors.  Results in mapping / allocation inconsistencies. Process vs. Quality. CSDR Cost Management Needs Data Visibility

4 June 18, 2008 Data Issues  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 Cost Management Demands Quality Cost Data

5 June 18, 2008 Cost Data 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. Contractor Cost Accounting Systems Government Informational Systems / Databases Contractor Sys 1 Contractor Sys 2 Contractor Sys 3 Contractor Sys 4 ACDB OSMIS CLS Current Information Access Flow. Cost Analysts

6 June 18, 2008 Data Warehousing for Cost Management  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. Information Delivery System Government Informational Systems / Databases Data Warehouse External Data External Users Proposed Information Access Flow. Contractor Cost Accounting Systems Data Marts

7 June 18, 2008 Cost Analysis ERP  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. Cost Analysts need to be more involved in the process.  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. more on ERP at: Cost Management through Integrated Cost - Performance - Schedule Data, Models, and Tools