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Organizational Execution Plan Briefing Template

11 April 2013

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• Purpose: The purpose of this Briefing Template is to provide Components and ODOs with instructions and required format to prepare and present the OEP Brief for submission. This template is a critical part of the DBS Investment Management Process Guidance, specifically the Organizational Execution Plan Briefing Elements section (found in 2.2).

• Instructions for the submission slides are provided in the notes section for each slide.– For instructions to complete this template, click View -> Notes Page in the PowerPoint menu.

• Charts were placed in the OEP briefing template to show where charts conceptually fit in the OEP briefing. All charts requesting data must be submitted in the excel spreadsheet. For MILDEPs, all data must be submitted by each respective OEP Chapter submission

• Submit the completed OEP Brief (PowerPoint and Excel files) via signed e-mail to IRB.Support.Staff@osd.mil no later than 14 June 2013.– When submitting, please name the attached files using the following naming convention: Component

name_chapter name_OEP_submission date. For example, “Army_FM_OEP_14062013”. (‘Chapter name’ not applicable to ODOs because they submit one combined OEP)

Template Overview

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Sample* Portfolio Business Summary

Primary Business Process Operations

Portfolio Certification Request: Sample Portfolio IntroductionOur acquisition and logistics management function obtains spare parts from defense suppliers, receives and stores them, and provides them to Component customers. Approximately $600M of inventory is acquired annually, with annual business costs of approximately $150M. Request certification of $38M for 6 IT systems. Our IT funding request this year will have a focus on development and modernization to improve efficiency of our warehousing function.

• Contracting Processes requires approximately $29M of the $150M annual business cost (direct and indirect)

• Receipt and Warehousing Processes absorbs approx. $39M of the $150M business costs (direct and indirect)

• Order Fulfillment and Distribution Processes requires approx. $42M of the $150M (direct and indirect)

• Other costs (e.g., management, business information) absorb approx. $2m of the $150M

• IT infrastructure costs $38M of the $150M

Major Cost Drivers

• Contract writing – transaction volume / complexity of contracts drive labor volume hours/labor costs due to cycle time

• Receipt and warehousing – transaction volume with cycle time * labor hours/labor costs and equipment operational costs

• Order fulfillment and distribution - transaction volume with cycle time * labor hours/labor costs and equipment operational costs

• Etc.

Cost business rules drive the above

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Sample* Strategic Alignment

Goal/ Objective ID#

Goals and Objectives IT BPR Cost MeasureFunctional Strategy

SMP Strategic Alignment

ACQ/LOG #1

Improve the efficiency of the warehousing receipt function to reduce warehousing costs by 20% using a computerized warehouse management system

Y Y Y Y ACQ & LOG 1.7 &1.9 SMP goal 4.8, 6.1, 6.4

ACQ/LOG #2

Reduce the costs of outgoing shipments by at least 10% through improved consolidation of shipments through better use of the computerized order fulfillment and contracting systems, by improving their process interoperability.

Y Y Y N ACQ & LOG 2.1 SMP Goal 4.1

ACQ/LOG# 3

Improve the efficiency of the warehousing order fulfillment and distribution function to improve inventory release for On time delivery by 30% using a computerized warehouse management system

Y N N Y ACQ & LOG 2.1 SMP Goal 4.8, 6.4

FM# 1

Improve the efficiency of the warehousing inventory activity to help achieve audit readiness by FY 2015 using a computerized warehouse management system

Y Y Y y FM 2.1 & 2.4 SMP goal 2.1

I&E #1

Reduce the equipment operational energy use at least 5% by shifting to more energy efficient forklifts and other warehousing equipment, supported by using a computerized warehouse management system to better schedule equipment use

N Y N N I&E 5 SMP Goal 5

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Sample* Performance Measures

Goal/Objective ID#

Benefit of Goal/Objective Measure Implementation Date

ACQ#1Cost savings which equate to overall reduction in portfolio - Achieve a $5M direct cost savings of 20%.

Receipt and warehousing direct labor costs.

FY 2015

LOG#2On time delivery - amount delivered to customers on time and in full. Increase on-time delivery by at least 25% above baseline.

On-time delivery (logistical efficiency)

End of FY 2015

FM#3

Certificate of audit readiness – Demonstrates advancements in becoming fully auditable in FY17. 75% increase to overall portfolio audit readiness

Audit Readiness End of FY 2015

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Sample* Portfolio Defense Business IT Systems Summary

Covered DBS by Certification FY 2014 Funding Request

Planned and Actual Funds by Fund Type DM & CS

(past and over FYDP)

Covered DBS by Transition Plan State(past and over FYDP)

OEP Certification Request: # of DBS in OEP:

Covered DBS by Functional Area(Use this for Other than MILDEPS)

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 20180

5

10

15

20

25

30

35

40

DMCS$M

1-5M 5-10M 10-25M 25-50M01234

Covered DBS

Covered DBS

FY14 Certification Request Dollars Ranges

Cove

ed D

BS

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 20180123456789

LegacyCore

Cove

red

DBS

55

105

2065

100

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Financial ManagementAcquisition & LogisticsDefense Security En-terpriseInstallations & En-vironment Human Resources Management Enterprise IT Infra-structure

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Sample* IT Efficiency

Include any notes here.

IT EfficiencySystem(s) by Acronym, if applicable

Cost efficiency ($)% IT Efficiency

ReductionEfficiencies Realized or

Planned

Enterprise software licensing

DFBS, NEWGEN_PPBE $3M 15% Realized

Reducing duplicative systems

MMS $2M 10% Planned

Data center consolidation

All $3M 10% Planned

Cloud computing “Cloud First” policy

SAFESYS $0.5M 15% Planned

TOTAL 9.5M

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Portfolio Accomplishments

• Expected FY2013 end of year business results/outcomes

• Define major business results/outcomes bound by a measurable benefit that are expected to be realized in FY2014

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PCA Results

• Changes in transition plan state from FY2013 OEP• Systems sunsetted in previous year (FY2013)– Provide actions taken and associated cost avoidance for

sunsetted systems

• Certification requests not recommended by PCA– <<insert certification requests not recommended>>– <<insert certification requests not recommended>>

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Sample* Compliance: Mandatory Enterprise Standards

Mandatory Enterprise Standards

Compliant(Yes/No)

Cost Estimate to Comply

Compliance Suspense Date (Projected or Achieved)

Standard Financial Information Structure (SFIS)

Yes N/A Feb-13

Common Human Resources Information Standards (CHRIS)

No $1M Dec-13

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Sample* Portfolio Enterprise Resource Planning (ERP)

ERP Capability Sunk Cost Measures BPR opportunities

ERP DITPR ID and Acronym:

BENEFITS:

ERP Capability Sunk Cost Measures BPR opportunities

ERP DITPR ID and Acronym:

BENEFITS:

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Sample* Compliance: Mandatory Enterprise Systems

Mandatory Enterprise Systems

Implemented?Use /

Data Feed/ Data Pull

Implementation Suspense Date (Projected

or Achieved) Any Explanations

Fourth Estate Manpower Tracking (FMTS) DITPR ID:1234

Yes Yes – data fed to Feb-13 N/A

SPS No No – using EPS TBD Explain

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Sample* Roadmap to the Target Environment and a Corresponding Execution Timeline (SV-8)

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Sample* Portfolio Risks and Challenges

AreaRisk or Challenge (to cost, schedule, and

performance)Mitigation/Resolution

Constraint on mandatory use of specific systems

Requires IT development to support the needs of legacy systems which forces ERPs to develop outmoded solutions (e.g. the mandatory use of WAWF).

PM ongoing solution analysis to enable the best way ahead to prevent outmoded solutions.