Army Cost Management & Financial Transparency MIT CDOIQ Symposium 23 July 2014 Mort Anvari

1. Army Cost Management & Financial Transparency MIT CDOIQ Symposium 23 July 2014 Mort Anvari Director, Programs and Strategy US Army

2. Army Financial Transparency • Challenges • DOD Audit Readiness • Visibility into Cost and Spending • Meaningful Business Analytics for Decision Making • Financial System Interface Errors and Rework • Progress • Cost Culture and Cost Management (CM) Initiatives • Army General Fund Enterprise Business System (GFEBS) • Addressing Financial Material Weaknesses - LSS • Army Financial Management Optimization (AFMO) • Army Financial Benefits Reporting and Tracking (AFBRT) • Audit Ready by FY17 2

3. Army Cost Management (CM) People Leadership Commitment Training FM Workforce (AFMO) CM Process Model Technology Data Quality (GFEBS) Tools & Models • Process • Cost Planning • Cost Analysis (CBA, AoA) • Cost Integration to Requirement, Acquisition, & Resource • Cost Control (LSS & AFBRT) CM Maturity Training • CM Goal: Better Value for Lower Cost • Stewardship of nation’s resources • Cost informed decision making • Continuous improvement • Accountability for costs • Tracking progress Cost Analysis Data Quality 3

4. Enterprise Data Capture Strategy • Improve data quality and cost data visualization tools for decision making. • Incorporate rigorous Cost Management in funding decision to reduce future cost risk. • Comprehensive execution data capture in resource allocation process to support auditability. Prioritized, Aligned, and Optimized Cost Data Capture Integrate Cost Management into PPBE and Core End-to-End processes 4

5. Total Cost Data Visibility - Big Data 1. Customers Views 2.Contracts # Tables = N * (N-1) / 2 1 • for 10 views 45cost visibility table is needed • Multi-dimensional Polygon Cost Visibility • 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 2. Contracts 3.Services 5 2 3. Services 4.Funding 6 3 8 4. Funding 9 10 5.Cost Centers 4 7 . . . . . . . Org, Year, Supplier, Type . . ? 5

6. Data for Cost Management Reports Analysis Dash Boards Presentation Layer Data Standardization A Data Warehouse &Information Management Layer BI Engine Data Warehouse (AESIP) Data Marts OLAP Common Data Value Common Exchange Mechanism Common Entity Model Data Integration Layer ETL Unstructured Data Data Sources Layer IPPS-A GCSS-A GFEBS B Sources Databases Unstructured Data File Systems ERPs SOA, ESB, Web GFM-DI High Cost of Data Standardization at Data Source Layer ? 6

7. GFEBS Business Intelligence Cost Management Report UIC level Cost Center Cost Management Role (Cost Cum Report) filter. Example format showing Commitment Item (formerly EOR); Fund, Fund Center, Cost Center, UIC and SAG. Filtered for Fund Center = A76* (FORSCOM) Fund = OMA Base and OCO Direct 2013 7

8. GFEBS Business Intelligence Cost Management Report by UIC level Cost Center Shown is the output format after submitting the filter criteria on the previous screen shot. 8

9. GFEBS Business Intelligence HQDA Budget Reporter Tab: SOF HQDA Cum Report Filter Screen User selected Fund = 2020*D14; where 2020 = OMA; the * is a wild card for Base and OCO; and D14 indicates Direct FY14 funds. SAG (Sub Activity Group) shown filters for 111-116 (Army OPTEMPO) Status of Funds (SOF); Headquarters Dept of Army (HQDA); Cumulative FY year to date summary. 9

10. GFEBS Business Intelligence HQDA Budget Reporter, showing FY14 Obligations year to date for SAG 111-116 (OPTEMPO) By Fund. This is the first screen after selecting filter criteria and before selecting drill down elements listed as “Free Characteristics” on the lower left of the screen shot below. 10

11. GFEBS Business Intelligence HQDA Budget Reporter, showing FY14 Obligations year to date for SAG 111-116 (OPTEMPO) This view shows the same information as the previous screen shot, with the addition of “Funds Center” having been dragged from “Free Characteristics” in the “Rows” section. Green arrows show Funds Center data in the output. The user can select other attributes as desired to drill into and then select the “Export to Microsoft Excel” button to generate a file for later analysis. 11

12. Table of Acronyms AESIP - Army Enterprise Systems Integration Program • AFBRT - Army Financial Benefits Reporting and Tracking AFMO- Army Financial Management Optimization AoA - Analysis of Alternatives BI - Business Intelligence CBA - Cost benefit Analysis ERP - Enterprise Resource Planning ESB - Enterprise Service Bus ETL - Extraction Transformation and Load GCSS-A - Global Combat Support System-Army GFEBS - General Fund Enterprise Business System GFM-DI - Global Force Management Data Initiative IPPS-A - Integrated Personnel and Pay System-Army OLAP - Online Analytical Processing SOA - Service Oriented Architecture