Brief for DLA Finance Process Review Committee Meeting

1. Brief for DLA Finance Process Review Committee Meeting November 2009

2. What is ERP?

3. The History of the Navy ERP Program SSP/ONR“Go-Live” (Oct 12) Initial Operating Capability (May 08) 2011 2013 Milestone C (May 07) 2009 2007 2005 ASN (RD&A) directs convergence of pilots 2003 NAVSUP 1.0 “Go-Live” (Oct 08) NAVSEA Working Capital Fund (Oct 11) 2001 Chief Financial Officer’s (CFO) Act NAVAIR 1.0 “Go-Live” (Oct 07) NAVSUP 1.1 Single Supply Solution (Feb 10) Cabrillo Pilot NAVAIR Pilot SIGMA went “Live” NAWC, WCF (Jan 03) 1999 NEMAIS Pilot SIGMA Pilot NAVSEA General Fund“Go-Live” (Oct 10) SMART Pilot NAVAIR Pilot SIGMA went “Live” (GF, Oct 02) 1990 SPAWAR 1.0 “Go-Live” (Oct 09) NAVSUP Pilot SMART went “Live” (Jan 03) SPAWAR Cabrillo Pilot went“Live” (Jul 01) Pilots Award Contracts toIntegrators NAVSEA Pilot NEMAIS went “Live” (Jun 02) Navy Launched 4 Pilot Programs (1999)

4. Navy ERP Strategy • Financial and Acquisition (1.0): • Designed to give an Echelon II or III command a full suite of tools to perform their financial & acquisition functions • Functionality falls into five major categories: • Financial Management: General Fund & Navy Working Capital Fund • Procurement • Work Force Management • Program/Project Management • Wholesale and Retail Supply (1.1): • Designed to support the Navy’s Single Supply Solution • Functionality falls into five end-to-end supply chain management processes: • Planning • Allowancing • Procurement • Repair of Repairables • Order Fulfillment • Potential Future Capabilities:Financial Extension, maintenance, reporting, contracting, Capital Asset Management (CAMS-ME), Foreign Military Sales (FMS), Manufacturing Planning & Control, material tracking, etc. PARTNESHIP

5. Program Functionality

6. Interfaces by Release

7. Navy ERP Governance

8. Program Schedule and Funding

9. Navy ERP Snapshot

10. Release 1.0 Status: SPAWAR Implementation Executing the Cutover Plan on schedule, SPAWAR reaches Full Operational Tempo 16 Dec 09 SPAWAR Conversion Update SPAWAR completed Year-End Legacy Close Echelon II Time and Attendance started on 1 Oct with 100% success for the first period Data Conversion is complete Catch-Up activities began 28 Oct 09 FMO/DFAS Financial Validation Update FMO/DFAS Conversion Validation team has been working to validate the production data that was loaded into Navy ERP. There was a 75% initial match rate for the 20,218 U.S. Government Standard General Ledger (USSGL) balances. (This is an improvement over the 62% initial match rate experienced with NAVAIR deployment (Oct 2007)). FMO/DFAS team has made excellent progress as only 1,534 remain from the initial 4,973 (unknown variances). FMO/DFAS goal is to close out all unknown variances between both systems with supporting documentation and explanations.

11. 1.0 Status: NAVSEA Implementation Recent Accomplishments Began GF Setup and Analysis Phase Completed WCF Advanced Planning Phase Kickoff At the October 2009 Commander's Conference NAVSEA Leadership called for the total commitment to the deployment and implementation of Navy ERP across the NAVSEA Enterprise. In Process Preparation for GF third Data Conversion test run (Mock 3), started 16 Nov Mock data conversions identify and resolve issues with the data and process in a test environment resulting in an optimized transition to the Production environment Finalization of End User Training Strategy and identifying core trainers Near Term Tasks Begin WCF Business Process Workshops, 1 Dec Begin monthly Drumbeat Meetings, 5 Nov Develop Role Mapping Strategy WCF is holding data mapping meetings at the College of Southern Maryland Nov 17-19. Upcoming Tasks Late Jan 2010 – WCF Offsite Dec 2009/Mar 2010 - WCF Workshops WCF Mock1 begins 1 April, 2010 WCF Mock2 begins 1 June, 2010

12. Release 1.1 Status Major Accomplishments Completed Solution Development Completed system build and master data loads for Cutover Practice (99.9% successful load rate for 47.9 million of 59.2 million records) Completed development of the Instructor Led Training (ILT) materials (16 new 1.1 courses) and Web-Based Training materials (6 courses) for FEB 2010 deployment Train the Trainer (TTT) started 19 Oct and is progressing on schedule Completed Integrated Systems Testing (IST), all test cases executed, 425 test cases failed with open 155 defects Began UAT 16 Oct with 2680 core business process test cases that, as time allows, may increase up to 3200 test cases Began STP 16 Oct with approx 1800 test cases of 31 RICE objects including NALCOMIS (700 test cases) and HAZMAT In Process Completed transactional data loads for Sales Orders and Purchase Orders in Cutover Practice Conversion, loaded 51.9 Million of 62.4 Million records (BW and CIF Master Data loads remain) TTT and Teach-back sessions with 80+ NAVSUP Instructors Completing 12 remaining ILT courses for FEB 2011 deployment

13. Benefits of Navy ERP Financial Extension

14. Back Up

15. Program Highlights 35,255 Production users with 99.85% system availability (28 Jul 2009) Navy ERP certified as the Navy Financial System of Record by ASN Financial Management & Comptroller (FM&C) (1 Oct 2008) OPTEVFOR Recommendation of Full Fielding of Navy ERP System Release 1.0 (20 Jul 2009) Completed Continuity of Operations Exercise (COOPEX) Certified SAP Customer Center of Excellence (CCoE) Positive GAO Report on management controls Level 3 Compliant with the GAO Enterprise Architecture Maturity Model CMMI Level III Certified

16. Pilot Sponsor Area(s) of Focus # Geographic Sites # Users Stand-Up Date SIGMA NAVAIR Program Management, including linkage among Contracting, Financial, and Human Resources GF - 5 7000 Oct ‘02 NAWC - 4 15000 Jan ‘03 CABRILLO SPAWAR Warfare Center Management 5 3500 Jul ‘01 SMART NAVSUP / NAVAIR National & Local Supply Management, I-Level Maintenance Management Interface to Aviation Depots 4 440 Jan ‘03 NEMAIS NAVSEA / CLF / CPF Regional Maintenance, including I-Level Maintenance Management, Project Systems, and Human Resources 1 2500 Jun ‘02 Scope Of Navy Pilots

17. NAVSEA GF 1.0 Implementation Schedule

18. Release 1.1 Development & Deployment Timeline

19. SPAWAR High Level Cutover Plan

20. System ImplementationKeys to Success Communication Open lines of communication allow for identification of issues and the more timely resolution of these issues Example: On-Site Support Communicate and emphasize the Value-added / “Big Picture” Standardized process across the entire DON Enterprise Eliminate legacy systems Senior Leadership Involvement Establishment of the Navy ERP Financial Management Network Change Management Use of Pilots to prove the concept at Navy Training Monthly “Getting Started with Navy ERP” Virtual Conferences Right amount at the right time Problem-Solving/Creativity Complex issues require complex solutions Short-term manual work-arounds may be required to ensure business operations continue Data Conversion Transitioning “Old Business” to a new business framework Different levels of granularity with end-to-end process partners Practice/validation improves the final conversion process

21. Financial Benefits of Navy ERP

22. Work Force Mgmt Benefits of Navy ERP (Cont)

23. Benefits of Navy ERP (Cont) 23