2012-MMT110

Developing Standardized Cost Element Structures for the United States Marine Corps

Methods and Models I Track

MMT110_Presentation_DevelopingStandardizedCostElementStructuresforUSMC_Eden

Abstract:

This presentation explains the development of a Cost Element Structure (CES) for use in United States Marine Corps (USMC) Logistics Requirements Funding Summaries (LRFS). Industry and the Assistant Commander for Life Cycle Logistics formed an Integrated Product Team (IPT) to create a new CES. The IPT comprised logisticians and cost estimators who worked together over the course of one year to create the new USMC LRFS CES.

The USMC LRFS CES has undergone multiple updates in the past 10 years. In recent iterations, it has been divided by logistics discipline (e.g., Maintenance Planning, Supply Support, Configuration Management) vice dividing the elements by program phase. In this most recent update, the CES was still divided by logistics discipline at the second level, but at the third level, the CES was divided by logistics roadmap phases outlined in updated Marine Corps Logistics Roadmap. Within the roadmap are 8 logistics phases beginning with Requirements Analysis and ending with Disposal. The advantage of using the roadmap phases is the logisticians’ familiarity with the work required in each phase. Another advantage is that using a CES that is consistent with existing logistics documentation helps avoids confusion of terms. At the fourth CES level and below each element involves either labor or materials required in support of program logistics.

The LRFS IPT was divided into several sub-committees, each of which focused on a particular discipline. Each sub-committee met with the cost estimating team to develop a comprehensive list of elements for CES level 4 and below. For most disciplines, this was an iterative process of meeting, discussing the required elements, refining the CES, and meeting again to improve the structure. The end result was a CES that captured all of the logistics activities for Marine Corps Programs in over 1000 elements.

Author:

Jeremy Eden
Booz Allen Hamilton
Mr. Eden has been with Booz Allen Hamilton for 5 years, assigned to the Defense Business Segments Analytics practice. Mr. Eden provides cost estimating, project and business analysis support. Mr. Eden has over 9 years of experience performing feasibility studies, intelligence analysis, design, implementation, maintenance, and reporting of engineering and economic projects. For the last 3 years, Mr. Eden has supported a task for the United States Marine Corps Market: The Logistics Requirements Funding Summary Cost Estimating Tool. Mr. Eden co-authored a cost tool for non-cost estimator logisticians to use in the completion of an LRFS. This tool utilizes heavy usage of Visual Basic, an interface that interviews the user, interactive help feature, and an extensive model database. Previous work has included supporting the United States Defense Information Systems Agency (DISA) Defense Information Systems Network (DISN) Diversity Study. Mr. Eden co-authored a cost tool for assessing DISA’s worldwide fiber-optic network diversity effort. This tool utilizes regression analysis of previous diversity actions, as well as current market and industry parameters to provide high confidence estimates of the impact of the program on current and future agency budgets. Mr. Eden also supported the United States Marine Corps Joint Light Tactical Vehicle (JLTV) Cost Analysis Requirements Description (CARD). This task included the editing, updating, and modifying of a CARD document on a weekly basis as customers requirements and objectives changed. Other previous work has included support for the United States Marine Corps Amphibious Assault Vehicle (AAV). Mr. Eden provided support in editing and updating the cost model analysis for the AAV program. This support included the utilization of Visual Basic for Applications (VBA) script modification, specifically for Microsoft Excel to create a final tool that was complete, but available for further utilization and modification by the client as requirements changed.