DCMA and Balanced Scorecard Management

DCMA and Balanced Scorecard Management Presented By: Charles Kiessling, Management Analyst Business Information Center (DCMAC-F) March 2003

Who is DCMA?

The DCMA Organization Established March 2000

The DCMA Organization DCMDW Three Districts: - Eastern US - Western US - International DCMDE 60 US Field Contract Management Offices Europe Americas Southern Europe --- HQ DCMDI Northern Saudi Arabia Pacific 5 International Contract Management Offices covering 21 Countries and 566 Fuel Sites

What Does DCMA Do?

Mission, Vision, and Goals The Mission Provide Customer Focused Acquisition Support and Contract Management Services to Ensure Warfighter Readiness, 24/7, Worldwide The Vision An Indispensable Partner, Providing Our Customers Flexible and Responsive Contract Management and Acquisition Life Cycle Solutions It Starts With Me! The Goals Deliver great customer service Lead the way to efficient and effective business processes Enable DCMA people to excel

Service Sets - What we do for our customers Acquisition Planning Support Major Program Services Earned Value Management Software Acquisition Management How we manage Integrated Management System Policy set in DCMA One Book Engineering Support QA/Product Acceptance Right Item Labor hrs reported by process Readiness and Delivery Mgmt Financing/Payment/Contract Closeout Property/Financial Mgmt Systems Pricing and Negotiation Aircraft Test/Acceptance/Delivery Industrial Base Analysis/Corporate Assessment Contingency Contract Management Right Time Right Price Activity Based Management Agency-wide Performance Contracts Accountability for results

What Data Does DCMA Collect?

Business Plan Covers: Strategic Plan Mission Statement Performance Planning Performance Planning Drives Data Requirements! General Goals & Objectives (3 of the 4 BSC Perspectives) Environmental Assessment (External Influences) 5 Years Forward, Updated Every 3 Years Performance Plan (Covers 3 of 4 BSC Perspectives) Performance Goals (Established by Process Owners & Their Teams) Performance Indicators (Metrics) (PIO s Monitor) Resources Required Budget Formulation

DCMA s Data Requirements Performance data on each performance goal Multiple metrics for each goal are possible Cost data for each performance goal Unit Cost Budget Execution Demographic data Who, What, Where Contracts data & information Type, Kind, $, Status, etc Contractor performance Cost, Schedule, Performance Data is stratified by multiple parameters!

DCMA s Performance Goals 42 Goals Links to DCMA s One Book

How Does DCMA Collect the Data?

Old Web Architecture Here s why we need rapidly adaptable Invoice Program Office PR Acctg Station (Multiple Systems) DFAS Staging Area Inventory Control Points Buying Offices PR PR Funding Office Legacy Systems SPS / PD 2 Transitional / Legacy System One Way Electronic Data Flow Two Way Electronic Data Flow Paper Data Flow Both Paper and Electronic Direct Connection EC/EDI DEBX MOCAS DEBX SPS / PD 2 SDW Son of MOCAS EDW EDA Web Site DFAS Corp Data Base The Infamous Spaghetti Chart EDM The Infamous Spaghetti Chart PD 2 UDF UDF EC/EDI EC/EDI PDF SEPS PDF Browser PDF Form DCMC and CAOs Wide Area Workflow EC/EDI Form DPPS DFAS Std Disb Sys Form Contractor EC/EDI SEPS VAN EC/EDI Destination EFT EC/EDI MIRR

Current Web Architecture DCMA Network

DIRAMS (Former) Architecture DCPDS MASS DSIS MOCAS CPMS SICM DADS/ DCARRS PLAS SPI ACTS DCPS ALERTS PASS60 SDW TAMS SPS HEWLETT PACKARD T-600T 600 HEWLETT PACKARD T-600T WIDE AREA NETWORK DCMDW (AMSW) ProLiant SERVERS DCMDE (AMSE) ProLiant SERVERS LOCAL AREA NETWORKS DIRAMS INPUT SCREENS/IMPROMPTU QUERIES

IDB (Current) Architecture OTHER SOURCES Former DIRAMS Modules Linked SDW DCW M I D D L E W A R E I N T E G R A T E D D A T A P R O C E S S I N G QUERY/ REPORTING TOOLS (Oracle Discoverer) E-Tool applications (Skunkworks) USERS ERS Integrated Database (IDB)

DCMA E-Tools Features (Input) Provide a consistent look and feel to all DCMA applications so that complexity is reduced and user re-training is minimized Provide a central resource for DCMA information by centralizing data in the Integrated Database (IDB) Provide easy access and analysis of information using pre-developed reports

Input Tools (E-Tools) Customer and User Advantages E-Tools incorporates latest software and technology Data entry is reduced and data integrity improved Many data fields are auto-populated Standardized selections available using pick lists Enhanced validation and on-line help is available throughout E-Tools Applications use database information directly to provide accurate and timely information Modularized applications can be enhanced to incorporate user requested enhancements Uses familiar Web browser concepts to access E-Tools

Input Tools (E-Tools) Customer and User Advantages (cont) E-Tools users do not require specialized software on their PC Users always have the latest version of applications Access is global and easily accessible from remote locations Support is provided for DCMA applications as well as applications available to our external customers Portal provides personalized (based on SSO) access to applications & reports directed specifically to the user Standard reports are available through the portal

Input Tools (PLAS) PLAS - Performance Labor Accounting System A windows-based, Local Area Network (LAN) served program that permits employees to charge time to DCMA processes Hours are summarized to support the informational needs of the DCMA Integrated Management System Each DCMA employee contributes workhour data which rolls from all field locations to DCMA Headquarters, by Process PLAS Collects: Hours Worked (by Process, Program & CAGE) Leave Hours (by Leave Type) Reimbursable Hours (by DCN) Work Units (by Process) Over 12,000 PLAS Users - World Wide

Input Tools (E-Tools) Input Output Help

Input Tools (PLAS) Change Dates To select codes from the dropdown menus, click on the applicable box

How Does DCMA View the Data?

Output Tools (E-Tools)

Output Tools (Other) Oracle Products Discoverer (User & Administrator) (Client / Server) Discoverer Plus (Adhoc, Web Based Queries) Discoverer Viewer (Web Based Report Viewing) Oracle Reports (Web Based Report Viewing) Cognos Products (being phased out this year) Impromptu Transformer PowerPlay Portfolio Microsoft Products Access Excel

What Does DCMA Do With the Data?

Std Balanced Scorecard Model STRATEGIC PERSPECTIVES How do our customers See us? CUSTOMER SERVICE What must we excel at? FINANCIAL RESULTS MISSION VISION STRATEGY INTERNAL BUSINESS PROCESSES Do we get the best Deal for the Government? LEARNING AND GROWTH Do we continue to improve And create value?

DCMA s Scorecard Model Goal 1 Deliver Great Customer Service BALANCED SCORECARD STRATEGIC PERSPECTIVES Unit Cost/ABM FMR Process Budget Execution How do our customers see us? FINANCIAL RESULTS CUSTOMER SERVICE MISSION VISION STRATEGY What must we excel at? Goal 2 Lead the way To efficient and effective Business practices INTERNAL BUSINESS PROCESSES Do we get the best deal for the Government? LEARNING AND GROWTH - Do we continue to improve and create value? Goal 3 Enable DCMA People to excel

DCMA s Scorecard Model (Results) Obj 11: Engage early in the acquisition cycle to improve business results 111 - Preaward Survey Timeliness 112 - Small Business Subcontracting 113 - Small Business Prime Contracting Obj 12: Team with Service program managers to achieve customer desired results 121 - Customer Satisfaction Obj 13: Ensure customers receive quality products & services 131 Deficiency Reports Obj 14: Ensure timely delivery of products and services $88M Goal 1 Deliver Great Customer Service ~$554M 141 On-Time Deliveries 142 - Outstanding Delinquencies 143 - Delay Notice Coverage 144 - Carrier Payment Timeliness Obj 15: Team with & represent our customers in securing best value products & services 151 Undefinitized Contract Action Rate 152 ACO Pricing Actions 153 Forward Pricing Rate Coverage Obj 16: Provide payment & financial mgmt services that promote efficient & effective operations 161 Canceling Funds 162 Performance Based Payments Obj 17: Complete all aspects of contract closeout in a timely manner $55M 171 Contract Closeout Timeliness 172 Contracts Past Final Delivery Date 173 Overage Contracts 174 Plant Clearance Cases Obj 18: Provide combat support services that support warfighter readiness and $4M contribute to the national defense None at this time $275M $22M $44M $44M $22M

DCMA s Scorecard Model (Results) Obj 21: Use risk mgmt to improve efficiency in supplier & internal business mgmt processes 211 Supplier Risk Management Obj 22: Promote increasingly efficient and effective contractor business and financial systems 221 Contractor Systems in CSS 222 Contractors Subject to Full CAS Coverage Obj 23: Provide timely, quality aircraft operations services 231 Safety Training Officers 232 Aircrew Currency Rate Obj 24: Increase the efficiency of DCMA services support 241 - Paperless Transactions 242 PLAS Reporting 243 Reimbursable Execution 244 IT Costs Per Workstation $11M $132M $132M $33M Goal 2 Lead the way to efficient & effective business practices ~$308M

DCMA s Scorecard Model (Results) Obj 31: Build and maintain a work environment that attracts, develops, and sustains a quality workforce $242M 311 Unit Cost 312 Facilities 313 Integrated Management System 314 DAU Quotas 315 DAWIA Certification 316 Training Hours Per Employee 317 Employees with >= 40 Tng Hrs 318 EEO Complaint Processing 319 Military Evaluation Reports 3110 Customer Sat on Legal Spt 3111 Vacancy Fill Time 3112 Rep of Persons with Disabilities Goal 3 Enable DCMA people to excel ~$242M

DCMA s Scorecard Model (Results)

DCMA s Scorecard Model (Results) Maintenance & Facilities Profile Maintenance & Facilities Plant Locations Percent DCMA Pleasantville Percent 01 - BasicCAS 20,11475 10000% 63550 10000% 031A - Contract Receipt and Review 5,82525 2896% 11500 1810% 085 - Supplier Quality Assurance 4,28075 2128% 26300 4138% 086 - Schedule & Delivery Management 2,58725 1286% 825 130% 038 - Program Integration 1,34475 669% 2900 456% 181 - Contract Closeout 1,26375 628% - 000% 049 - Over and Above Work Request Process 98975 492% 7525 1184% 041 - Pricing & Negotiation 80575 401% 300 047% 064 - Contractor Aircraft Operations 49900 248% 2200 346% 066 - Deficiency Reports (DRs) 45200 225% 600 094% 064A - Military Aircraft Operations 36700 182% - 000% 071 - Software Contract Management Services 34800 173% - 000% 102 - Contract Property Management 31250 155% - 000% 141 - Public Vouchers 24225 120% 7900 1243% 159 - Industrial Security 18000 089% - 000% 160 - Ctr Sfty Rqts-Amo,Expl&Otr PstAwd Hazd/Sfty Rqts 12800 064% - 000% 132 - Transportation-Shipment Processing 10700 053% - 000% 070 - Earned Value Management (Contractor Perform Msmt) 10025 050% - 000% 149 - Other Payment Support 8200 041% 3200 504% 062 - Configuration Management 5100 025% - 000% 105 - Plant Clearance 3800 019% - 000%

DCMA s Scorecard Model (Results) Other Financial Data Analysis Cost Per Unit Variance How do you compare to your peers Process Profile Variance Are you using a consistent mix of processes Unit Cost - Rate of Change How efficient are you over time Unit Cost Master Index All things considered, how high cost a provider are you compared to other activities Budget Execution

DCMA s BSC Management Approach Collect the performance data Report and analyze this data Incorporate the financial data Determine if resources are being efficiently and effectively utilized Effect corrective action if necessary If imbalances between cost and performances are noted, adjust the resources accordingly

We re Almost There What s Left? Structured trade-off analysis among the 4 perspectives Improved results orientation in some goal areas Improved customer input/measurement Structured feedback from metrics back to strategic plan Identification of where we need to redouble efforts to establish balanced goals and measures Make it personal

Questions? Chuck Kiessling charleskiessling@dcmamil 703-428-1352