Cost culture brief for USA
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AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
M. Anvari
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
M. Anvari
THE STRENGTH OF THE NATION
Financial and Performance Assessment
Financial and Performance Assessment
Enterprise Wide Performance Results
Enterprise Wide Performance Results
Executive Comptroller Course
Executive Comptroller Course
Syracuse University
Syracuse University
Wednesday, June 15, 2016
Wednesday, June 15, 2016
10:30 AM-12:00 PM
10:30 AM-12:00 PM
Mort Anvari
Mort Anvari
Director, Programs and Strategy
Director, Programs and Strategy
US Army, ASA(FM&C)
US Army, ASA(FM&C)
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AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
Agenda
Agenda
M. Anvari
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
M. Anvari
THE STRENGTH OF THE NATION
•
•
•
•
Evolution of Army Cost Management
Cost Management Direction and Guidance
Linking Outcomes to Costs – the Cost Management Framework
Enterprise Cost Management Initiatives:
–
–
•
•
Cost of Training Readiness (COTR)
Installation Management Data Integrity Program (IMDIP)
People are Our Most Important Resource - Cost Management Training
What’s Hot for the Army Analytics in 2016?
2
AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
M. Anvari
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
M. Anvari
THE STRENGTH OF THE NATION
Evolution of Cost Management
Evolution of Cost Management
3
AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
M. Anvari
•
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
M. Anvari
THE STRENGTH OF THE NATION
•
•
•
Historical & Current Situation
Historical & Current Situation
Costs are typically tracked vertically either by organization level and then by commodity (examples: Civilian
labor at AMC HQ, Fuel at the 101st CAB, travel costs at ATEC) OR by key 4 line of accounting
o
Fund (APPN, FY, Base/Supplemental); Command; SAG/APE; and MDEP
The costs for “horizontal” Army processes are typically not tracked, particularly those that cross
organizational boundaries, yet processes are how the Army accomplishes its primary Title 10 missions—
training, equipping, recruiting, acquiring, maintaining, etc.
The full fielding of the General Fund Enterprise Business System (GFEBS) provides unprecedented capability
to better determine Army costs
Budget constraints place a greater emphasis on better informed decision making
4
AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
M. Anvari
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
M. Anvari
THE STRENGTH OF THE NATION
Cost Management DIRACTION AND GUIDANCE
Cost Management DIRACTION AND GUIDANCE
5
AMERICA’S ARMY
Army Directive 2016-16
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
THE STRENGTH OF THE NATION
Changing Management Behavior:
M. Anvari
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
M. Anvari
Every Dollar Counts
On 15 Apr 16, SecArmy directed: Army commanders and leaders at
2Star HQ level and above will:
Establish & track annual performance measures…focus on the highest
level of readiness with the greatest efficiency;
Tie resources expenditures (costs) to outcomes and levels of readiness;
Identify and manage total costs;
Eliminate ‘use or lose’ funding practices;
Reward leaders & organizations who demonstrate exemplary stewardship
& innovative ideas.
Can
Can we
we focus
focus the
the energy
energy of
of this
this directive
directive to
to advance
advance the
the Army
Army toward
toward a
a “cost
“cost culture”?
culture”?
6
AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
THE STRENGTH OF THE NATION
Strategic Environment
M. Anvari
M. Anvari
Driving Change in Army FM Enterprise
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
AFMO Campaign Plan
AFMO
AFMO Objectives
Objectives
LOE
LOE1:
1: Systems
SystemsDomain
Domain
LOE
LOE22:: Business
BusinessProcesses
Processes
AFMO
AFMO End
End State
State
An
An integrated
integrated effective
effective and
and efficient
efficient end-to-end
end-to-end financial
financial
(1)
(1) Achieve
Achieve and
and Sustain
Sustain Auditability
Auditability
management
management enterprise
enterprise operation,
operation, optimized
optimized to
to provide
provide
necessary
necessary resources
resources to
to meet
meet the
the Army’s
Army’s missions
missions with
with
LOE
LOE3:
3: Organizations
Organizations
(2)
(2) Deliver
Deliver FM
FM Operations
Operations Efficiently
Efficiently and
and
proper
proper stewardship
stewardship and
and accountability
accountability of
of resources
resources and
and
Effectively
Effectively
providing
providing accurate
accurate and
and timely
timely financial
financial information
information and
and
analysis
analysis for
for actionable
actionable decision
decision making
making that
that will
will receive
receive
LOE
LOE4:
4: FM
FMProfessional
ProfessionalWorkforce
Workforce
(3)
(3) Improve
Improve and
and Sustain
Sustain Readiness
Readiness in
in FM
FM
LOE
LOE55:: Internal
InternalControls
ControlsEnvironment
Environment
LOE
LOE 6:
6: Army Cost Management
LOE
LOE7:
7: Strategic
StrategicManagement
Management
aa favorable
favorable Financial
Financial Statement
Statement clean
clean audit
audit opinion
opinion ..
Elements
Elements
(4)
(4) Provide
Provide Financial
Financial Information
Information and
and Business
Business
Analytic
Analytic Support
Support for
for Improved
Improved Decision
Decision
Making
Making
&&Communications
Communications
7
AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
THE STRENGTH OF THE NATION
Army Cost Management (CM) is working
Army Cost Management (CM) is working
M. Anvari
M. Anvari
People
People
l
deel
Mood
ssss M
e
c
roce
PPro
CCM
M
1.
2.
3.
Leadership
Leadership Commitment
Commitment
Training
Training
FM
FM Workforce
Workforce (AFMO)
(AFMO)
4.
5.
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
Technology
Technology
Data
Data Quality
Quality (ERP
(ERP Cost
Cost Data,
Data, Performance
Performance Metrics)
Metrics)
Tools
Tools &
& Models
Models ((Analytics,
Analytics, BI
BI))
Process
Process
6.
7.
8.
9.
Cost
Cost Planning
Planning (Cost
(Cost Estimates,
Estimates, …...)
…...)
Cost
Cost Analysis
Analysis (CBA,
(CBA, AoA,
AoA, ….)
….)
Cost
Cost Integration
Integration to
to Requirement,
Requirement, Acquisition
Acquisition &
& Resource
Resource
Cost
Cost Control
Control (LSS,
(LSS, AFBRT,
AFBRT, …..)
…..)
Training
Training
CCM
M
M
Ma
attu
urrit
ityy M
Mo
odde
ell
CM
CM Goal:
Goal: Better
Better Value
Value for
for Lower
Lower Cost
Cost
•
•
•
•
•
Stewardship
Stewardship of
of nation’s
nation’s resources
resources
Cost
Cost informed
informed decision
decision making
making
Data
Data Quality
Quality
Continuous
Continuous improvement
improvement
Accountability
Accountability for
for costs
costs
Cost
Cost Analysis
Analysis
Tracking
Tracking progress
progress
8
AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
M. Anvari
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
M. Anvari
THE STRENGTH OF THE NATION
Army Financial Transparency
Army Financial Transparency
Challenges
Challenges
•
•
•
•
DOD
DOD Audit
Audit Readiness
Readiness
Visibility
Visibility into
into Cost
Cost and
and Spending
Spending
Meaningful
Meaningful Business
Business Analytics
Analytics for
for Decision
Decision Making
Making
Financial
Financial System
System Interface
Interface Errors
Errors and
and Rework
Rework
Opportunity
Opportunity
•
Army
Army Cost
Cost Data
Data Capture
Capture Strategy
Strategy and
and CM
CM
Progress
Progress
•
•
•
•
•
•
Cost
Cost Culture
Culture and
and Cost
Cost Management
Management (CM)
(CM) Initiatives
Initiatives
Army
Army General
General Fund
Fund Enterprise
Enterprise Business
Business System
System (GFEBS)
(GFEBS)
Addressing
Addressing Financial
Financial Material
Material Weaknesses
Weaknesses -- LSS
LSS
Army
Army Financial
Financial Benefits
Benefits Reporting
Reporting and
and Tracking
Tracking (AFBRT)
(AFBRT)
Army
Army CM
CM Steering
Steering Group
Group
Army
Army Financial
Financial Management
Management Optimization
Optimization (AFMO)
(AFMO)
9
AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
Cost Management Data Capture Strategy
Cost Management Data Capture Strategy
M. Anvari
Improve data quality and cost data visualization tools for decision making.
Improve data quality and cost data visualization tools for decision making.
Incorporate rigorous Cost Management in funding decision to reduce future cost risk.
Incorporate rigorous Cost Management in funding decision to reduce future cost risk.
Plan for capture of execution data in support of CM and PPBE processes.
Plan for capture of execution data in support of CM and PPBE processes.
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
M. Anvari
THE STRENGTH OF THE NATION
Cost Management Steering Group (CMSG)
CostPrioritized,
Management
Steering
(CMSG)
Aligned,
andGroup
Optimized
Cost Data
Prioritized, Aligned, andCapture
Optimized Cost Data
Capture
Integrate Cost Management into PPBE and Core
Integrate
Cost Management
End-to-End
processes into PPBE and Core
End-to-End processes
10
AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
How Are We Going to Get There?
THE STRENGTH OF THE NATION
M. Anvari
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
M. Anvari
Army Cost Management Strategic Implementation Plan (CMSIP)
II
Align strategic goals with cost objectives, framework, and
reporting
II
II
Integrate analytical capabilities in key decision making forums
Utilize the CM Framework to leverage
III
III
the Enterprise
Resource Planning (ERP) for better decision making
Document & sustain audit ready CM process
IV
IV
Establish, Sustain, & Recognize Cost Managed Organizations
(CMO) through training, best practices, and knowledge
V
V
management
11
AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
M. Anvari
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
M. Anvari
THE STRENGTH OF THE NATION
LINKING OUTCOMES TO COSTS – THE COST MANAGEMENT FRAMEWORK
LINKING OUTCOMES TO COSTS – THE COST MANAGEMENT FRAMEWORK
12
AMERICA’S ARMY
Align Strategic Goals with Cost Objectives, Cost Framework and
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
THE STRENGTH OF THE NATION
Reporting
ASA(FM&C)
ASA(FM&C)
M. Anvari
M. Anvari
INFLUENCERS
INFLUENCERS
CMSG
CMSG
Army
Army Cost
Cost Framework
Framework
ARMY
ARMY COST
COST FRAMEWORK
FRAMEWORK (ACF)
(ACF)
E2E
E2E Cost
Cost Management
Management Processes
Processes
Methodology
Methodology
RECRUITING
RECRUITING
Enterprise
Enterprise CFs
CFs
USARC
USARC
WEAPON
WEAPON SYSTEM
SYSTEM
READINESS
READINESS
CMSG
CMSGPrioritization
Prioritization
Army Cost Management & Financial Transparency
EXTERNAL
EXTERNAL
REQUIREMENTS
REQUIREMENTS
HQDA
HQDA // PEG
PEG
Army Cost Management & Financial Transparency
POLICY
POLICY
USAREUR
USAREUR
FORSCOM
FORSCOM
READINESS
READINESS
Org
Org CFs
CFs
WEAPON
WEAPON SYSTEM
SYSTEM
FOR
FOR
UNIT
UNIT
SCO
SCO
M
M
Scope
and
Verification
Validation
Scope
and Requirements
Requirements
Verification and
and
Validation
Implement.
Implement. Plan
Plan
USA
USA
RC
RC
USA
USA TRA
TRA
REU
REU DO
DO
R
R
C
C
RECRUITING
RECRUITING
COPIS
COPIS Business
Business
…
…
Model
Model
Design
Cost
Design Rationale
Rationale
Cost Model
Model Blueprint
Blueprint
…
ARMY
ARMY WORKFORCE
WORKFORCE
POLICY
POLICY
TRAINING
TRAINING
ENABLERS
ENABLERS
13
TOOLS
TOOLS
13
AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
THE STRENGTH OF THE NATION
A standard approach to defining strategic and operational cost
structure and measures to inform leadership resource decision
M. Anvari
M. Anvari
•
What is Army Cost Framework (ACF)?
making and enable Army’s desired mission outcomes
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
(performance goals)
•
Includes processes and documentation artifacts to define business
models (COPIS) and cost management models
•
ARMY
ARMY COST
COST FRAMEWORK
FRAMEWORK (ACF)
(ACF)
A pre-requisite to Cost Management that links performance and
cost metrics to maximizing Army’s value
Enterprise
Enterprise CFs
CFs
READINESS
READINESS
Org
Org CFs
CFs
WEAPON
WEAPON SYSTEM
SYSTEM
UNIT
UNIT
FOR
FOR
SCO
SCO
RECRUITING
RECRUITING
M
M
USA
USA
RC
RC
USA
USA
REU
REU
R
R
TRA
TRA
DOC
DOC
…
…
COPIS: Tool to define, link, and document Customers – Outputs – Processes – Inputs – Suppliers associated with enterprise and/or organizational
business models
14
14
AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
M. Anvari
ACF Provides Leadership Cost Information Needs
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
M. Anvari
THE STRENGTH OF THE NATION
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AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
Readiness Example
THE STRENGTH OF THE NATION
M. Anvari
President
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
M. Anvari
Decision Makers Span of Control & Influence (SC&I)
How big does the Army need to be?
Cost of Soldiers?
Congress Army Ldrs
Reports
Dash Boards
CM Maturity
Analysis
Cost of Training?
Program
Budget
Cost of Equipment?
Execution
Cost of Standard Services?
Force Structure
Cost of Readiness
DECISIONS
Correlate
What is readiness?
PERFORMANCE
COST MANAGEMENT
MANAGEMENT
Trained Units
OSMIS / FORCES / AMCOS
KNOWLEDGE
SMS
$’s Spent
Unit/Installation Status
DATA SOURCES, FILE SYSTEMS, dB’s
UNSTRUCTURED DATA
Transactions
GFEBS
GCSS-A
ERP SYSTEMS
INFORMATION
Reports
LMP
SMS
16
AMERICA’S ARMY
CM: Cost of Readiness
CM: Cost of Readiness
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
THE STRENGTH OF THE NATION
Notional Example:
Notional
Example:
Cost
of Readiness
for Personnel
Cost of Readiness for Personnel
B
C
M. Anvari
A
D
Cost
Requirement
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
M. Anvari
Readiness/Requirements
Readiness/Requirements vs.
vs. Capacity/Cost
Capacity/Cost
Illu
s
tra
t i ve
Illu
s
Da
ta
t ra
tive
Da
ta
FY14 FY15 FY16 FY17 FY18 FY19 FY20
Capacity’s Impact on Readiness
Zone
Capacity/Cost
Readiness Component Capacity Baseline
Readiness
A
B
P
C
D
Readiness Component
A
No Change
Personnel
B
C
D
Under Capacity
Supply-on hand
Readiness-Equipment
Below Minimum
Training
Illu
s
tra
t i ve
P
Da
ta
P
P
17
AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
Army Cost Management Architecture
Army Cost Management Architecture
M. Anvari
Army Enterprise Cost
Management Needs & FM
Transparency
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
M. Anvari
THE STRENGTH OF THE NATION
Data Capture Strategy (Big
Data)
Advanced Analytics
Advanced Capabilities
Cost Performance knowledge
will improve with subsequent
iterations
18
AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
THE STRENGTH OF THE NATION
Enterprise CM Data Need
Enterprise CM Data Need
Views
1.
1. Customers
Customers
2.Contracts
2.Contracts
M. Anvari
Army Cost Management & Financial Transparency
1
1
Full
Full Visibility
Visibility -- Big
Big Cost
Cost Data
Data
# Tables = N * (N-1) / 2
# Tables = N * (N-1) / 2
for 10 views 45 cost visibility table is needed
for 10 views 45 cost visibility table is needed
Multi-dimensional Polygon Cost Visibility
Multi-dimensional Polygon Cost Visibility
1- Customers by Contracts
es
es
3.Servic
3.Servic
2.
2. Contracts
Contracts
5
2
1- Customers
by Contracts
2- Customers
by Services
5
2
2- Customers
by Services
3- Customers
by Funding
3- Customers
by Funding
4- Customers
by Cost Centers
4- Customers
by Cost
Centers
5- Contracts
by Service
5- Contracts
by Service
6- Contracts
by Funding
4.Funding
4.Funding
3.
3. Services
Services
6- Contracts
by Funding
7- Contracts
by Cost Centers
7- Contracts
by Cost
Centers
8- Services
by Funding
6
3
8
6
3
8
8- Services
by Funding
9- Service
by Cost Centers
9- Service
by Costby
Centers
10 –Funding
Cost Centers
10 –Funding by Cost Centers
Centers
Centers
4.
4. Funding
Funding
5.Cost
5.Cost
Army Cost Management & Financial Transparency
M. Anvari
Views
4
4
.
10
9
7
.
10
9
7
.
.
.
.
Org, Year, Supplier, Type .
.
.
?
19
AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
M. Anvari
CM: Visualization of Cost Interdependencies
CM: Visualization of Cost Interdependencies
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
M. Anvari
THE STRENGTH OF THE NATION
20
AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
M. Anvari
CM: Cost Attribution Models
CM: Cost Attribution Models
Data Views
Data Views
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
M. Anvari
THE STRENGTH OF THE NATION
21
AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
THE STRENGTH OF THE NATION
Cost Management Data Architecture
Cost Management Data Architecture
Reports
Dash Boards
Analysis
M. Anvari
Data
M. Anvari
Data
Standardization
Common Data Value
Common Data Value
Layer
A
Data
Data Warehouse
Warehouse
& Information
BI Engine
BI Engine
Data Warehouse
OLAP
(AESIP)
Data Marts
Management
Layer
Common Exchange Mechanism
Common Exchange Mechanism
& Information
Management
Layer
Data
Data Integration
ETL
Unstructured Data
Integration
Layer
B
Common Entity Model
Layer
Common Entity Model
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
Standardization
Presentation
Presentation
Layer
GCSS-A
IPPS-A
Data Sources
GFEBS
Data Sources
Layer
Layer
Sources
Databases
Unstructured Data
File
Systems
ERPs
SOA, ESB,
Web
GFM-DI
GFM-DI
High
High Cost
Cost of
of Data
Data Standardization
Standardization at
at Data
Data Source
Source Layer
Layer ?
?
22
AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
THE STRENGTH OF THE NATION
M. Anvari
Strategic Environment
AFMO Campaign Plan
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
M. Anvari
Army Cost Management Business Process
AFMO
AFMO End
End State
State
AFMO
AFMO Objectives
Objectives
LOE
LOE1:
1: Systems
SystemsDomain
Domain
An
An integrated
integrated effective
effective and
and efficient
efficient end-to-end
end-to-end financial
financial
management
management enterprise
enterprise operation,
operation, optimized
optimized to
to provide
provide
LOE
LOE 2:
2: Business
Business Processes
Processes
(1)
(1) Achieve
Achieve and
and Sustain
Sustain Auditability
Auditability
LOE
LOE3:
3: Organizations
Organizations
(2)
(2) Deliver
Deliver FM
FM Operations
Operations Efficiently
Efficiently and
and
proper
proper stewardship
stewardship and
and accountability
accountability of
of resources
resources and
and
Effectively
Effectively
providing
providing accurate
accurate and
and timely
timely financial
financial information
information and
and
LOE
LOE4:
4: FM
FMProfessional
ProfessionalWorkforce
Workforce
LOE
LOE55:: Internal
InternalControls
ControlsEnvironment
Environment
LOE
LOE 6:
6: Army Cost
Management
necessary
necessary resources
resources to
to meet
meet the
the Army’s
Army’s missions
missions with
with
analysis
analysis for
for actionable
actionable decision
decision making
making that
that will
will receive
receive aa
(3)
(3) Improve
Improve and
and Sustain
Sustain Readiness
Readiness in
in FM
FM Elements
Elements
favorable
favorable Financial
Financial Statement
Statement clean
clean audit
audit opinion
opinion..
(4)
(4) Provide
Provide Financial
Financial Information
Information and
and Business
Business
Analytic
Analytic Support
Support for
for Improved
Improved Decision
Decision
Making
Making
LOE
LOE7:
7: Strategic
StrategicManagement
Management
&&Communications
Communications
23
AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
THE STRENGTH OF THE NATION
Cost Management Process
Resource-Informed Decision Making
Organization's Business Processes, Products & Services in Order to Provide the Best Value.
M. Anvari
M. Anvari
Managing Business Operations Efficiently & Effectively Through the Accurate Measurement & Thorough Understanding of the "Full Cost" of an
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
Capture and Valuate Data
Cost Planning
–
–
Set Cost Targets and Efficiency Goals
Compute Standard Rates
–
–
Accurate, timely and relevant data
Connecting operational output/performance data to
financial data
–
Allocate Overhead
Cost Analysis
Cost Controlling
–
–
–
–
Move to action based on analysis
Change targets
Change resources
–
–
–
–
Change quality
Variances
Depreciation
Trends and forecasting
Product, service or activity cost by element (labor, contract
etc)
–
Understanding full costs of organizations, operations,
products and services
24
AMERICA’S ARMY
THE STRENGTH OF THE NATION
AMERICA’S
ARMY
Army Cost Management End-to-End Process
Army Cost Management End-to-End Process
M. Anvari
Develop & Maintain
Army Cost Management & Financial Transparency
Army Cost Management & Financial Transparency
M. Anvari
THE STRENGTH OF THE NATION
Perform
Perform Cost
Cost
Framework
DevelopCost
& Maintain
Planning
Planning
Cost Framework
Determine Cost
Perform Cost
Perform
Perform Cost
Cost
Accounting
Perform
Cost
Perform Cost
Analysis
Analysis
PerformControlling
Cost
Accounting
Controlling
CM
CM Process
Process Activities
Activities
Maintain Cost Model
Objectives
Level
Level One
One
Establish Planned
Establish Planned Costs
Develop Cost and
Output
(inputs)
Performance Targets
Capture Actual Costs
Capture Actual Outputs
Capture Actual Costs
Capture Actual Outputs
Develop Metrics
Perform Cost Assignment
Perform Cost Assignment
Perform Period End Close
Perform Period End Close
CM
CM Process
Process Activities
Activities
Level
Level Two
Two
Compare Results to Plan
Process Improvement
Adjust Targets
Select Method of Control
Implement (changes to) Policies &
Procedures
Manage Tradeoffs
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