Frank A. DiStasio 19-20 March 2012 Cost Management Certificate Course (CMCC) Naval Postgraduate School CMCC 12-5 Week 3 Cost Management and U.S. Army.

Frank A. DiStasio 19-20 March 2012
Cost Management Certificate Course (CMCC) Naval Postgraduate School CMCC 12-5 Week 3 Cost Management and U.S. Army Section III: Using Cost Management Frank A. DiStasio 19-20 March 2012 © DISTASIO ASSOCIATES, LTD

© DISTASIO ASSOCIATES, LTD
Course Outline Section I: Cost Management Why cost management? Focus Concept of Operation Analysis Exercise Section II: Cost Management and GFEBS Development Implementation Section III: Using Cost Management Cost culture Cost controlling 4/24/2017 © DISTASIO ASSOCIATES, LTD

Hon. Mary Sally Matiella Use “… Cost-Conscious Way of Doing Business”
January 2011 “The Secretary of Defense ...to move DoD toward a “ more efficient, effective, and cost-conscious way of doing business.” “Second...use Cost-Benefit Analysis (CBA) or similar analytic approaches….” “First... on GFEBS to execute disciplined, quarterly cost management reviews.” “Third...assess your organization’s current cost management program and develop a plan for improvement.” 4/24/2017

Hon. Mary Sally Matiella Use “… Cost-Conscious Way of Doing Business”
“CMCC graduates have the training and expertise to play key roles in establishing and conducting ...” “... I look forward to … discuss the ways you are using cost information to make resource informed decisions.” 4/24/2017

Use “Cost-Conscience Way Of Doing Business” In Resourcing And Management Practices
BUDGET EXECUTION This section is primarily about lining up terminology Use Cost-Benefit Analysis (CBA) and similar analytic approaches in decision-making Use cost controlling to assure efficient and effective use of resources 4/24/2017 5

Budget Formulation and Budget Execution Process Overview
OMB- President’s Budget Appropriations & Authorizations Budget Justification Books Defense Planning Guidance OSD A Bill.. Appropriation Authorization PBD Program Objective Memorandum Budget Estimate Submission Treasury OSD HQDA Execution HQDA Schedule 8 Schedule 1 Budget Requests Army Commands Army Service Component Cmd Direct Reporting Unit Fund Authorization Document Financial systems (200+) for recording expenditure data Record funds Use funds Functional systems for recording performance, outcomes, output Logistics Personnel Acquisition Installation 4/24/2017

Budget Formulation and Budget Execution Focus
Develop, review and approve request for funds Produce Army portion of the President’s Budget Participate in hearings and track Congressional “marks” Budget Execution Receive and distribute allotment Use and control funds to accomplish mission Report on the status of execution against the Budget NOTE: Budget Formulation focuses on justification for funds and appropriation submission requirements Budget Execution focuses on status of available funds, i.e., commitments, obligations, expenses and disbursements (COED) Focus on spending Cost management can and must inform decision making in both phases to achieve best value 4/24/2017 7

Budget requests and expenditures need to be tied together
Need To Use Cost Management Practices Budget Formulation and Budget Execution Army base budget about $145 billion Budget Formulation “request for money” Budget Execution “spend the money” Budget requests and expenditures need to be tied together Budget Formulation must use expenditure and output data Budget Expenditures must focus on managing costs 4/24/2017

Budget Formulation and Budget Execution
Use Cost Management In Budget Formulation and Budget Execution Legacy New Budget Formulation Budget Execution Cost Management Budget President’s financial plan and the priorities for the Fed Gov’t Budget Authority Authority to incur obligations Cost Value of resources used to produce outputs & basis for decision making Focus Requirements, priorities & risk Focus Availability & obligations Focus Full cost of output & best value Data Streams Requirements, formulations Data Streams Budget, actual COED Data Streams Plan, target, actual expenses - cost, rates, performance measures Key Data Elements Appropriation, FTE Key Data Elements Appropriations, EOR’s, PE, MDEP, projects, BLIN, etc. Key Data Elements Operational entity (e.g. cost centers), services, rates, products, projects, etc. Cost analysis Cost controlling 4/24/2017 9

Everyone Needs To Use “…Cost-Conscience Way of Doing Business”
“… each program decision is zero sum: a dollar spent for capabilities excess to our real needs is a dollar taken from a capability we do need – often to sustain our men and women in combat and bring them home safely.” Secretary of Defense Robert Gates Opening Statement to the House Armed Services Committee, May 13, 2009 Basic business axiom = free goods have unlimited demand. Cost management and building a model that shows the spender what it costs to do whatever they are trying to do will result in the spender trying to use less than they would use otherwise. (e.g. you know what your home telephone costs are per minute, why don’t you know what your business costs are? Answer: because you are not paying the bill.) Cost management says you should be aware of what your real costs are and therefore will try to bring them down. Every instance of its use shows that is what happens Introduce the driver concept Not knowing cost makes things appear free and “free goods have infinite demand” 4/24/2017 12 10

Understand Cost Management concept:
“… to move DOD toward a “more efficient, effective, and cost-conscious way of doing business.”” Understand Cost Management concept: Manage business operations efficiently and effectively through the accurate measurement and thorough understanding of the "full cost" of an organization's business processes, products and services in order to provide the best value to customers Adopt tools, processes and procedures Cost accounting system Integrating financial, cost and managerial/performance data Applying cost management concepts and practices Consider cost implications – all the time – in decision-making and actions Basic business axiom = free goods have unlimited demand. Cost management and building a model that shows the spender what it costs to do whatever they are trying to do will result in the spender trying to use less than they would use otherwise. (e.g. you know what your home telephone costs are per minute, why don’t you know what your business costs are? Answer: because you are not paying the bill.) Cost management says you should be aware of what your real costs are and therefore will try to bring them down. Every instance of its use shows that is what happens Introduce the driver concept Considering cost all the time is new 4/24/2017 12 11

Consider Cost All The Time
Why? “It is simply not reasonable to expect the defense budget to continue increasing at the same rate it has over the last number of years. ” “…each program decision is zero sum” Not knowing cost makes things appear free and “free goods have infinite demand” What does it take? “… a cost-conscience way of doing business.” A culture 4/24/2017

“… way of doing business.” Establishing a new culture involves:
A Cultural A culture is … Attitudes, experiences, beliefs and values of an organization Shared “taken-for-granted” assumptions, beliefs, values, expectations and rules Held by members of a work unit team or a corporate organization Shared behavior by people and groups in an organization With 20+ Years of cost demands – one thing was definitely learned - Cost Measurement Difficult, Requires Cultural Change and Change is fought with Resistance Culture is the combined way an organization operates. Moving to a culture of cost is a big change Not where cost trumps everything simply that its considered and knowm Establishing a new culture involves: Giving up all or part of the current culture Assimilating the new culture 4/24/2017 13

“…cost-conscious way of doing business.” A Cost Culture
Requires leaders, managers, soldiers and civilians to share a belief in “accomplishing the mission while considering the cost” Requires using cost and performance information in decision-making Understand both near- and long-term cost implications Make effective trade-off decisions to achieve best use of limited resources Hold subordinates accountable for improving the efficiency and effectiveness of operations Cost culture involves a move from “accomplish the mission at any cost” to “accomplish the mission considering cost” 4/24/2017

An Army Cost Culture Includes deploying systems, improving cost models, issuing policies, recruiting experts, etc.; but this alone will not enhance the Army’s ability to manage costs Includes training leaders, managers, Soldiers and Army Civilians to… Understand and value the need to manage costs Know costs manage concepts and practices Must have leaders and managers demand cost information and use it in decision-making — as the normal way of doing business — otherwise the cost data provides no benefit ! “… focuses money where it can more effectively do just that [secure our nation]” -- SecDef Gatesc 4/24/2017

Army Cost Culture … A Real Change
… a significant change “A Culture of Entitlement” “A Culture of Influence” Cost and performance focused Results driven: focus on output & outcome Performance objective: optimize resources Full cost - use only what is necessary to obtain results Budget-focused Spend rate driven: inputs consumed Performance objective: 99.9% obligation Free goods have infinite demands People - Need to transition from budget to Cost Processes - Process is integrated and inter-related Systems – Data needs to be information 4/24/2017 16

Cost Data Are Different Than Budget Execution Data
Knowing your obligations is not the same as knowing your costs! Obligations: A legally binding commitment by the federal government that will result in outlays, immediately or in the future. Budgetary resources must be available before obligations can be incurred legally. The price or cash value of resources used (expenditures) to produce a program, project or activity. All relevant costs may not appear in the organization’s budget. Costs: NEEDS CORRECTION – See RED Note here – Cost do not equal obligations Cost is focused on FULL cost and can exceed obligations Discuss what is full cost – of a training program, examples Cost will contain expenses from different years, different source of funds, different organizations, etc., i.e., “Full Cost” Costs “Full cost” typically exceeds budget allocations to individual business unit Obligations Costs  Obligation 4/24/2017 17

“Full Cost” Definition
Sum of all costs required for a cost object including costs of activities performed by other entities regardless of funding sources … an output produced by a responsibility segment is the sum of: Costs of resources consumed by the segment that directly or indirectly contributes to the output, and (2) Costs of identifiable supporting services provided by other responsibility segments within the reporting entity, and by other reporting entities. Source: Statements of Federal Financial Accounting Standards (SFFAS) No.4, Managerial Cost Accounting Standards and Concepts Full costs will be collected and available: TRADOC will be able to see the full cost of a course as well as the full cost of operating the schoolhouse. IMCOM will be able to see the full cost of providing a Service Support Program as well as the organizational cost for a Directorate or Division and unreimbursed support to tenants. FORSCOM will be able to see the full cost of a Brigade by ARFORGEN (Reset, Train/Ready, Available) as well as the full cost of an operation. Full costs analysis could facilitate decisions for: BRAC Training Outsourcing Billing rates NOTE: Additional Cost Management guidance and definitions at AKO Expand DoD Organizations on site map Expand Army Expand Army Field Operating Agency Click on ASA (Financial Management & Comptroller) link Click on Cost Management Community of Practice link and Open CM Handbook or use this link: 4/24/2017 18

“Full Cost” Is Important For Well-Informed Decisions
Both -- Direct Cost: when the primary or initial expense is directly posted/charged to the cost object Other Cost: necessary for the outcome or output – e.g., for the consuming organizations, products or services, but not directly charged Note: Relating Other Cost to outcome or output (cost objects) involves either: Assignment utilizing a generic rate and the quantity consumed (e.g., Sq. Ft.) for associating cost Allocation utilizing a value based percentage to calculate an associated cost Avoid sub-optimization 4/24/2017

“Full Cost” Includes Direct And Other Relevant Costs
Direct Costs – A cost such as labor, materials/supplies that can be directly traced to producing a specific output of an organization, product/service. Indirect Costs – A cost that cannot be directly traced to a specific organization, product/service output. Funded Costs -- The value of goods or services received because of an obligation of funds (obligation authority), by the organization performing the work. Unfunded costs -- A cost that are financed by another organization's or activity's appropriations. Variable Costs -- A cost that changes with change in output. Fixed Cost -- A cost that remains the same regardless of change in output. Recurring Cost -- A cost that is incur repeatedly for each organization and/or product/service produced . Non-Recurring Cost -- A cost that is unusual and unlikely to occur again. Avoidable Costs -- A cost incurred on an object that will no longer be incurred due to a decision to change the output. Unavoidable Cost -- A cost incurred on an object that will be incurred regardless of the decision to change. 4/24/2017 20 20

Various Types of Cost Typically Relate To Various Functions
Type Cost is a Function of … Direct or Indirect Recurring or Non Recurring Fixed or Variable Funded or Unfunded Avoidable or Unavoidable X Output Qty Product Produced Source of Funds Overhead Provider Relevant Time Range X X I don’t like this slide – Misleading For Example – Generically overhead is Indirect, but the column implies it could be both – Rather this slide should be pushed down to the last slide – as an example – to have limited illustration… Need to see how Steve uses this slide. - Really need to combine the concepts of 71 and 72 X 4/24/2017 21

“Full Cost” Requires Relating Other Relevant Cost
Assignment: The establishment of relationship between a sending cost object and a receiving cost object based on a quantity (with a rate for valuation) being consumed by the receiver Requires: Activity Type or Business Process quantity as sender A rate associated to valuate the quantity flow Mechanism for capturing or imputing the sender quantity Allocation: The establishment of a relationship between a sending cost object to one or more receiving cost object(s) based on % (even if a quantity is utilized to generate a %, e.g. # FTEs) Requires: Mechanism for capturing a quantitative or monetary value on the receiver(s) which is then utilized to determine the % split of the sender costs Acceptance of batch processing Main difference is presence of a rate. Rates come from Resource Pools we discussed yesterday, which we call….ACTIVITY TYPE RATES If rates aren’t available, I can allocate by number of employees and push out employee’s to the receiving allocation I have established This process is less exact, so a decision needs to be made between maintaining rates vs. running the cycles. Cost Center 1 $220 -$200 Order 1 Order 2 Hr $10 = $80 $10 = $120 Assignment Cost Center 2 $220 -$220 Order 1 Order 2 50% Allocation 4/24/2017 22

“Full Cost” Assignment vs. Allocation
Pros: Direct relationship Real-time information for analysis Reduces systemic burden during period close Dynamic (can change as the environment changes) Capacity Management (resource utilization) Cons: Must have the ability to track quantity from send to receiver or impute Allocation: Pros: Provides mechanism for cost association when tracking of quantity is not possible or cost prohibitive Cons: Full-absorption approach Typically less accurate High demand on system resources during period-end close Static assumption set often infrequently updated Difference in need for a rate with assignment Allocations are run less frequently, tend to be at end of the month so all transactions for the period are recorded Assignments can occur immediately after action has been taken, hours have been worked, materials have been consumed. 4/24/2017 23

Illustration Of Difference Between Budget Obligations and Full Cost
Relating Budget: Providers/Inputs Cost: Outputs/Consumers Cost of Brigade Weapon Sys $ (VAMOSC) HQDA $ Military Pay Contracts (CLS) Direct $ $ Assign or allocate Army Service Component Commands Direct Reporting Unit Direct $ Unit Training Ground OPTEMPO $ Army Commands Installation SSP1 (Labor Tracking) Assign or allocate $ School Training Initial Entry Equip the Force Acquisition Assign or allocate $ $ $ Direct GFEBS enables Army to “slice and dice” data for decision-making 4/24/2017 4/24/2017 24 24

© DISTASIO ASSOCIATES, LTD
Course Outline Section I: Cost Management Why cost management? Focus Concept of Operation Analysis Exercise Section II: Cost Management and GFEBS Implementation Initiative Section III: Using Cost Management Cost culture Cost controlling 4/24/2017 © DISTASIO ASSOCIATES, LTD

Chief Of Staff’s Perspective
“I know that our Nation expects us to be a part of the solution to our debt. This implies we must more wisely share resources – and burdens -- and apply them in the most efficient and effective manner. It's ultimately about achieving greater effectiveness in global security.” Gen. Raymond T. Odierno, Chief of Staff of the Army Using resources efficiently and effectively requires knowing the cost implications of decisions and taking actions to control costs 26 4/24/2017

Not A New Responsibility
“d. Major commands, field operating agencies, and direct reporting units will establish and maintain cost and economic analysis expertise sufficient to support the acquisition and resource allocation processes within their command and supported elements; review and validate cost and economic analyses or other cost comparisons for currency, reasonableness, completeness, and compliance with Department of Defense and Army guidance; implement contractor cost data reporting; collect, analyze, store, and distribute program and cost data; and provide members to study advisory groups, cost review boards, or other cost/economic analyses related groups.” The Cost and Economic Analysis Program Army Regulation 11–18 Requirement for controlling cost is not new 4/24/2017

Current Cost Management Guidance
Assess your organization’s current cost management program and develop a plan for improvement Execute disciplined, quarterly cost management reviews when on-line with GFEBS Use Cost-Benefit Analysis (CBA) or similar analytic approaches to support resource informed decision making Army Campaign Plan (ACP) Major Objective 9-5, Strength Financial Management CMCC graduates –you – gain knowledge to play key role in establishing and conducting cost management 4/24/2017

Using Cost Management Begins With Understanding …
More than obligations from specific budget ~ full cost Management Art but not science that includes scientific methods Discipline of getting people or an entity to accomplish a goal and objectives Principles typically include: Planning ~ setting goals and objectives Organizing ~ structuring Staffing ~ motivating and communicating Directing ~ leading Controlling ~ measuring performance Cost Management Getting leaders, managers, and everyone Focusing on full cost for performance, i.e., full cost for quantity and quality of outcome or output In all their decisions and work, i.e., “normal way of doing business” 4/24/2017

Cost Management – Controlling Applies As Normal Part Of Budget Execution
Involves: Cost Planning – Includes: What do we need to accomplish? What are our priorities? What resources are available? How do we plan on using the resources over time? Cost Controlling Compare actual performance to plan. How are we doing? Are we progressing according to schedule? Are we consuming resources as planned? Are we using available resources efficiently and effectively? Culture -- Shared “taken-for-granted” attitudes, assumptions, beliefs, values, expectations 4/24/2017

Involves Most Organizations
Cost Controlling Involves Most Organizations Resource Managers Operational Managers Inputs Conversion “Work” Outputs Resources: Labor Material Equipment Supplies Contracts Assets Process: Work Performed by Organizations (Cost Centers) to Produce Products and Services for Customers Outcome-output: Services Goods Tests Research projects Training events Ready forces 4/24/2017 31 31 31 31

And The Army’s Cost Management Concept
Cost Controlling And The Army’s Cost Management Concept Cost controlling involves taking actions to apply “Best Practice” and achieve “Best Value” Cost Planning Controlling Analysis Accounting Management Concept Actions taken based on Cost Analysis and/or deviations from Cost Plans Execute trade-off decisions, e.g. overtime versus external support Redeploy resources between or among outputs Change outputs, processes or inputs Update/revise plans and planning information such as Standard Rate Cost Controlling capitalizes on the other components of the cost concept 4/24/2017 32

Cost Management -- Controlling Focus Managers And Efficient And Effective Use Of Resources
Analysis Planning Controlling Accounting Management Process Operational Operational managers allocate resources to work; therefore, Cost Planning and Cost Controlling should be part of their tool kit 4/24/2017 © DISTASIO ASSOCIATES, LTD

Cost Controlling Evaluation ALWAYS Includes …
Three essential types of data: Cost data – full cost Non-financial quantitative on outcome/output E.g. # of helpdesk tickets, # students Non-financial qualitative data on outcome/output E.g. average # days to close helpdesk ticket, % Completion Rate How much did we get? What was the quality? What was the cost? Balancing 4/24/2017

Cost Controlling Analysis Overview
Process Input Output Labor Material Supplies Plant Property Equipment Trained and ready forces Job, e.g. Maint & Repair Building Project Weapon System Services Events Courses Cost Controlling – Best Value or opportunities to do better? 4/24/2017

Cost Controlling Analysis Begins With Output And “cost object”
What must you achieve? Outputs GFEBS Categories Building Project, Weapon System Project / Program Internal Order WBS / Work Order Services, Events (SSP, Course) Job (Set of Tasks), e.g., Maint & Repair Note: IMCOM Service Support Programs (SSPs) 4/24/2017 36

Cost Controlling Analysis Focuses On “Appropriate” Object
Representative types of objects – i.e., outcomes or outputs Organizations Products/Services Customers Services: Food Services, Transportation, CIF, etc. IMCOM: Garrison - Tenants Projects: - SW Development Smart Munitions Quick MEDS AMC: RDEC - PEO Aviation - CMDS PM - FORSCOM Units: Optempo, Mobilization, Events, Etc. FORSCOM: 3rd Army - 1st BCT - Mission Commander 4/24/2017 37

Processes, e.g. work and conversion
Cost Controlling Analysis Involves “…activities performed by other entities” How it gets done! Processes, e.g. work and conversion B A C D 4/24/2017 38

Cost Controlling Analysis Includes “Sum of all costs required…”
Resources that go into “it.” Means Labor Material Supplies Plant Property Equipment 4/24/2017 39

Cost Controlling Analysis
Full Costs – i.e., Assigning or Allocating Cost Data Full Cost By Organizations Full Cost By Product/Services Full Cost By Customers Director of Logistics Services Provided Cost Center Office Supplies Battalion XXX OMS Cost Center/Resource Pool Military Labor Hrs Property Usage Transportation Services Central Issue facility Company XYZ MATES CIVHR UoM = Hr Civilian Employees Clothing DET ZZZ CNTHR UoM = Hr GSA Buses Contractors MILHR UoM = Hr Subsistence . . Etc. 4/24/2017 40

Cost Controlling Analysis Applies Various Cost Analysis Techniques
Forecasting: using prior period information to predict future dollars and quantities Variance Analysis: comparison analysis of standard vs. Actuals, Plan vs. Actuals, or multiple periods (e.g. Jan vs. Feb) Trend Analysis: Analysis of cost/qty over multiple consecutive time frames (e.g. Monthly to Month, Year to Year, etc.) Economic Analysis: Analysis of economic benefits of multiple options over different pans of time Cost/Benefit Analysis: Analysis of Decision to examine costs versus return Life Cycle Cost Estimate: Estimate of program or project over the full life cycle from concept development to disposal Cost/Risk Analysis: Analysis assessing cost in reference to probability/risk of potential outcome 4/24/2017 41

Cost Controlling Analysis ALWAYS Involves Outputs
Locally or across the Army -- what should the tasks costs Supports comparative analysis between sites, tasks, types of work, groups of resources to identify best practice vs. inefficiencies Allows for realization of trade-offs between delivery and resource consumption Cost of Closing Tickets Number of Tickets 4/24/2017

Cost Controlling Analysis Illustration
Input 2ABM0065: AMMO SUPPLY Name Cost Element Amount Quantity Ammo 9400.AMMO 10 EA 2ABM0014: LEGAL (ILO) Name Cost Element Amount Quantity Perm B1 $5,000 100 hrs Process AMMO FIRED Output 10 rounds at $50 Training Event (UIC) WARS Qty is valuated with rate Name Cost Element Amount Quantity Ammo 9400.AMMO $500 10 EA AMOUNT AND QUANTITY ARE OUTPUTS OF THIS PROCESS 4/24/2017 43

Cost Controlling Summary Focuses on Cost of Output
Output measures can be used to -- Capture total costs Influence decisions or behavior Justify resources Retain data on completed operation tasks Output measures facilitate both qualitative and quantitative measures. This can also be viewed as efficiency and effectiveness: How efficiently are resources utilized (e.g. how much is expended to close a ticket in 4 hrs, 8, hrs, 2 days?) How effectively is the product/service provided to the customer? (e.g. how long does it take for me to close a ticket) 4/24/2017

Cost Controlling Analysis Use Common Sense -- Rules For Analysis
Rule 1. The Willie Sutton – go where the money is! Rule 2. The Churchill -- however beautiful the strategy and the approach, always focus on the results. Rule 3. The Eisenhower -- where is the money going to come from and what are the trade-offs? Pareto principle or the 80/20 rule – getting the last 20% may take 80% time or effort 4/24/2017

Cost Controlling Illustrative Considerations
Does the output quantity support the cost by BCT or ARFORGEN? HQ needs? Field’s products or services? (e.g. ammo used for training, # soldiers) Is the output quantity currently used by scheduling/operational managers on a timely basis? Can an output change the behavior of an organization or individual to be more efficient and effective (e.g. # cancelled course registrations in ATAARS) Are output quantities used for justifications and/or requests for funding? If it supports cost management – efficiently & effectively - then considered 4/24/2017

Who Should Use Cost Controlling?
There are three kinds of people – Those that make it happen Those that watch it happen Those that say, “What happened to me!” Leader and Manager who want to make it happen 4/24/2017 47

Where Should Cost Controlling Be Used?
Managers At “shop” level Where the work is done At the organizational level – Local command Intermediate organization, e.g., region or equivalent At the HQ level Think of the BDE triangle slide and make the mental leap to your mission Army Cost Expert See Hon Matiella’s Memorandum, Jan 7, 2011: Leaders and Managers involvement is key for success 4/24/2017

Cost Controlling Examples
Shop and Organization level: e.g., SUPDIST Hesson, Management Division & Command Review & Analysis Ad hoc -- Identify “savings” with management analysis Monthly – Review and Analysis ~ for organization leadership Project: Concepts Analysis Agency Ad hoc -- Performance against plan Command HQ: Cost Analysis Office – all actions & POM Ad hoc – Wiesbaden; NORTHAG Scheduled – Program & Budget Formulation Present to Commander and leadership 4/24/2017

When Should We Do Cost Controlling?
Review cost reports – weekly, monthly or quarterly Compare to plan Identify favorable or unfavorable variances Consider alternatives -- include full costs Determine remedial course of action, if appropriate Conduct Ad Hoc reviews – event driven schedule Set parameters to trigger review and evaluation Management by exception -- the squeaky wheel Cost controlling: Focus on continuously improving by doing better than before, eliminating waste and reducing cost 4/24/2017

Cost Management And Control
References DASA-CE recommendations

A Cost Management Perspective
“I say the patriot today is the fellow who can do the job with less money.” -- President Dwight D. Eisenhower 4/24/2017

Cost Management Objectives
Achieve a practical understanding of – Cost Management Army General Fund Enterprise Business System (GFEBS) and Cost Management Cost Culture and Cost Controlling Why cost management is important Army’s concept of cost management How cost management and budgeting differ What is a practical approach for using cost management? How does General Fund Enterprise Business System (GFEBS) fit into cost management? When would you use cost management? Who should use cost management? How is the Army’s implementing cost management? Understand the Army’s intent Become knowledgeable of Army’s initiatives Play key role in establishing cost management culture 4/24/2017 © DISTASIO ASSOCIATES, LTD

Frank A. DiStasio 19-20 March 2012 Cost Management Certificate Course (CMCC) Naval Postgraduate School CMCC 12-5 Week 3 Cost Management and U.S. Army.

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Frank A. DiStasio 19-20 March 2012 Cost Management Certificate Course (CMCC) Naval Postgraduate School CMCC 12-5 Week 3 Cost Management and U.S. Army.

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Presentation on theme: "Frank A. DiStasio 19-20 March 2012 Cost Management Certificate Course (CMCC) Naval Postgraduate School CMCC 12-5 Week 3 Cost Management and U.S. Army."— Presentation transcript:

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