Transcript CAM-I May 2006

Consortium for
Advanced Management - International
Over Three Decades of Industry-led
Collaborative Research
CAM-I’s Participation
Over Three Decades of Industry-led
Collaborative Research
CAM-I’s international consortium consists of:
 Public and Private Organizations
 Government
 Professional bodies
 Software companies, System providers
 Academia
Who work in collaboration to solve current organization problems
and critical business issues that are common to the group
Global Leadership in Cost, Process and Performance Management
How CAM-I Creates
the Body Of Knowledge
Over Three Decades of Industry-led
Collaborative Research
Dissemination
CAM-I Body of Knowledge
Program/Interest Group/ Project Collaboration
Academic
Research
Subject
Matter
Experts
Practitioner
Experience
Existing Knowledge and Current Trends on
Cost, Process and Performance Management
Global Leadership in Cost, Process and Performance Management
CAM-I Participating Companies
Over Three Decades of Industry-led
Collaborative Research
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ABS Consulting, Inc.
ATI
Avnet, Inc.
Baker Tilly Mexico
Boeing Company
CALIBRE Systems
Certified Management Accountants Canada
Decimal
Department of Labor
Executive Management Associates
Grant Thornton LLP
IBM Corporation
Institute of Cost and Works
Accountants of India
Korea Management Accounting
Association
MEDRAD Inc.
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Navistar
On Semiconductor
Pilbara Group Inc.
Pinnacle West
Regence
Rockwell Collins
Royal Australian Navy
SAP AG
SAS Institute
Shell Oil Company
Tata Consulting Services Limited
U. S. Air Force
U. S. Coast Guard
U. S. Marine Corps
U. S. Patent and Trademark Office
VEN International CLG
Whirlpool Corporation
Global Leadership in Cost, Process and Performance Management
CAM-I
Over Three Decades of Industry-led
Collaborative Research
• Industry-led collaborative research consortium over 35 years
• Internationally recognized for advancing Cost, Process and Performance
Management practices providing our members with techniques, methods,
tools that are applied in their organizations.
Current Initiatives:
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Target Costing Best Practices
Business Intelligence
Process Based Management – Roadmap, Assessment and Implementation
Risk Management
Performance Management
Planning and Budgeting
Operational Data and Financial Management Assessments
Armed Services approach on Cost, Performance Management, Lean Six
Sigma
Global Leadership in Cost, Process and Performance Management
CAM-I Initiatives Touch Points
Over Three Decades of Industry-led
Collaborative Research
Performance
Performance
Management
Management
Business
Intelligence
Cost
Management
Process Based
Management
Logical Enterprise Data Framework Standards
Global Leadership in Cost, Process and Performance Management
CAM-I Exploratory Groups
Over Three Decades of Industry-led
Collaborative Research
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Logical Enterprise Data Framework Standards - CAM-I’s vision is to
create data interdependence and a uniquely logical integration of data
and organizations
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Health Care Supply Chain
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Sub Project for Process Based Management, multi-dimensional
reporting where Risk Management, Value Statements and Process
Based Management Statements presented side by side with Income
Statements and Balance Sheets.
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Environmental Management Accounting (Green Sustainment)
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Next generation Planning and Budgeting for today’s environment
Global Leadership in Cost, Process and Performance Management
CAM-I Initiatives
Over Three Decades of Industry-led
Collaborative Research
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Target Costing – Providing a vehicle for sharing target costing best practices. The
current focus is to develop a series of “how to” technical bulletins on extending target
costing to the supply side. The first is “Involving the Extended Value Chain in a
Target Costing/Life Cycle Cost Process Model”. The second will cover leading
practices for accessing manufacturing cost data and recommendations for the future
on integrated costing systems across the supply chain. Chair: Tami Capperauld
Phone 425-234-4458 or [email protected]
Deliverables in progress  Data dictionary for manufacturing models
 Technical bulletin “Involving the Extended Value Chain in a Target Costing/Life Cycle Cost
Process Model”
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Risk Management - Working on basic taxonomy of risk management terms and
phrases with a follow-on project of developing a practical applications and
implementation guide. Chair: Frank Wood Phone 202-372-4564 or
[email protected]
Deliverables in progress  A model for an approach to integrating risk, cost, and performance management; an
implementation methodology for that approach, key success criteria and pitfalls to avoid, and
new elements of risk management to consider.
Global Leadership in Cost, Process and Performance Management
CAM-I Initiatives
Over Three Decades of Industry-led
Collaborative Research
Operational Data & Financial Measurement Assessments
Provide assessment criteria for operational data required for relevant
operational planning & control & good cost measurement. Align with
Baldridge assessment approach. Provide assessment criteria for cost
measurement that is integrated with and driven from the operational data
assessment. Chair: George Millush Phone 248-637-8665 or
[email protected]
Deliverables in progress  Financial Measurement Assessments
– The first assessment addresses the quality of operational data used for planning
and operational execution. A significant portion of the total combined point value
in the scoring instrument will be assigned to this operational data.
– The second assessment addresses the quality of the existing cost measurement
methodology and its ability to support strategic decisions.
Global Leadership in Cost, Process and Performance Management
CAM-I Initiatives
Over Three Decades of Industry-led
Collaborative Research
• Business Intelligence – This working group will be developing a
roadmap to assist organizations improve and mature their Business
Intelligence efforts. Chair: Shobik Chaudhuri Phone 703-637-2728
or [email protected]
• Performance Management – Finalizing a practical performance
management framework maturity model that will enable the
assessment of public, non-profit and private sector organizations
level of maturity and apply elements of a performance management.
Chair: Derek Sandison Phone 905-855-0765 or [email protected]
Deliverables in progress –
 First phase of Performance Management Maturity Levels
Global Leadership in Cost, Process and Performance Management
CAM-I Initiatives
Over Three Decades of Industry-led
Collaborative Research
• Planning & Budgeting – This group is looking at a
much bigger picture that will include private and public
sectors. They are examining the current and future
trends for budgeting and planning which will include
Beyond Budgeting. One of their other objectives is to
develop a “WIKI”. Chair: Alan Stratton Phone 503-5903911 or [email protected]
Deliverables in progress  Planning & Budgeting Wiki
Next Generation Planning and Budgeting
Global Leadership in Cost, Process and Performance Management
CAM-I Initiatives
Over Three Decades of Industry-led
Collaborative Research
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Armed Services Cost & Performance Management – Published report
on essence of performance and cost management principles and
concepts in the five armed services in 2005. Currently working on best
practices to be published in Fall 2008. Chair: Bob Misch Phone 703637-3042 or [email protected]
Deliverables in progress 
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Report on the survey results for Lean Six Sigma and Continuous Process
Improvement (Dec 2008)
A Blue Book on Lean Six Sigma Best Practices in the Armed Services (March
2009)
Global Leadership in Cost, Process and Performance Management
Over Three Decades of Industry-led
Collaborative Research
Armed Services Cost
& Performance Management
Questionnaire
Objective: Utilizing the Cost Management Maturity Model (CM³) framework,
conduct an assessment of the current Army cost management culture ("AsIs" state). Use findings to establish enterprise-wide targets and action items
("To-Be" vision).
Procedures: The CM³ framework consists of nine Elements. For each of the
Elements / Sub-Elements, please read the five Maturity Level narratives
along with the associated measures, then select a Level that most closely
describes the "As-Is" condition for the Army. Add a short narrative in the
Justification / Evidence block to support your selection. Only assess
elements where you have experience and knowledge to select an
appropriate level; however, make comments in the block if you are not able
to make an assessment.
General Description of Elements: Process Integration, Accountability /
Performance Management, Leadership Commitment, Workforce
Competencies, Workforce Acceptance / Attitude, Enterprise Perspective,
Data Quality, Knowledge Sharing/Best Practices, Integration with Quality/
Productivity Improvement
Global Leadership in Cost, Process and Performance Management
Process Based Management
Over Three Decades of Industry-led
Collaborative Research
Roadmap
Assessment
Maturity of PBM
- Pathway
- Stage
- Category
PBM Stages
Implementation
of Action Plans
Pathways to PBM
Gaps in implementation
Action steps
Suggested Action plans
Global Leadership in Cost, Process and Performance Management
Figure 2 – Roadmap to Process Based
Realization
Management
Over Three Decades of Industry-led
Collaborative Research
Optimization
Institutionalization
Embed
Transformation
Integration
Transition
Managing
Processes
Foundation
Engagement
Discovery
Commitment
Awareness
Minimal process
efforts
PBM Assessment
completed
Pockets of process
success
PBM implementation
strategy
Process
governance
Classification
framework
Process teams
launched
Process teams
operational
Managing individual
processes
Process Council
assumes ownership
of PBM
Cross process
integration and
measurement
PBM extended
externally
PBM goals &
objectives are
part of the
organization’s
culture
Processes are
primary
structure
supported by
functions
Alignment of
integrated
processes and
strategy
CI initiatives
integrated,
prioritized and
resourced by
strategy
Process
PBM transformation performance
tied to
is part of goals &
incentives
objectives
Goals & objectives
based on process
Executive support
Management of individual process(s)
Process Based Management
Global Leadership in Cost, Process
and CAM-I/ATI
Performance Management
Source:
PBM Program
2006
Over Three Decades of Industry-led
Collaborative Research
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University and
Professional Affiliations
Kellogg (Northwestern)
The University of Akron
Babson College
Gutenberg University
Naval Postgraduate School
US Coast Guard Academy
Arizona State University
Great Lakes Institute of
Management – Chennai,
India
• HEC Montréal
• Institute of Management
Accountants
• Metropolitan State University
• PDES, Inc
• Texas State University
• University of Texas, Austin
• Wake Forest University
• University of Virginia
• Yonsei University – Seoul,
Korea and Korea Economic
Daily
Global Leadership in Cost, Process and Performance Management
Deliverables
Over Three Decades of Industry-led
Collaborative Research
Delivered –
Blue Book - Marginal Analytics & Resource Consumption Accounting
The Armed Services Interest Group Phase II Lean Six Sigma Survey
In Progress –
Management Accounting Guidelines on Process Based Management (Feb 09)
Target Costing
Data dictionary for manufacturing models
Technical bulletin “Involving the Extended Value Chain in a Target Costing/Life Cycle Cost Process
Model”
Risk Management
A model for an approach to integrating risk, cost, and performance management; an implementation
methodology for that approach, key success criteria and pitfalls to avoid, and new elements of risk
management to consider.
Performance Management Survey (CAM-I/CMA conference 2008)
Levels and maturity of Performance Management
Armed Services Interest Group A Blue Book on Lean Six Sigma Best Practices in the Armed Services (March 2009)
Global Leadership in Cost, Process and Performance Management
Next CAM-I Members Meetings
Over Three Decades of Industry-led
Collaborative Research
• March 8th -11th 2009 – San Diego, CA
Keynote speaker – Dave Clifton USMC status
Performance Management Maturity map deliverable
• June 8th – 10th 2009 – Austin, Texas
• September 7th – 10th 2009 – Washington, DC
• December 7th to 9th, 2009 – San Antonio, Texas
Global Leadership in Cost, Process and Performance Management
CAM-I Events
Over Three Decades of Industry-led
Collaborative Research
• The next CMA/CAM-I conference
Calgary – 14th to 16th October 2009
Global Leadership in Cost, Process and Performance Management
CAM-I Publications
Over Three Decades of Industry-led
Collaborative Research
Global Leadership in Cost, Process and Performance Management
CAM-I Strategic Management
Process Model
Over Three Decades of Industry-led
Collaborative Research
Customer/Market
Decision Domains
Strategic Management Processes
Product
Process
Resource
Global Leadership in Cost, Process and Performance Management
Activity-Based Cost Management
Capacity Management
Target Costing
Closed Loop Planning and Budgeting
Extended Enterprise
Process Management
Integrated Performance Management
Risk Management
Asset Management
Over Three Decades of Industry-led
Collaborative Research
Activity-Based Costing
The CAM-I Cross
Resources
Cost Drivers
(Causes of Cost)
Activities
Performance
Measures
Cost Objects
(Products, Services
or Customers)
CAM-I (Consortium for Advanced ManagementInternational)
Global Leadership in Cost, Process and Performance Management
CAM-I Board of Directors
Over Three Decades of Industry-led
Collaborative Research
Srikant Sastry
Grant Thornton
Chairman
Todd Scaletta
CMA Canada
Jennifer Holmes
Navistar
George Millush
Chrysler – (Retired)
Ashok G. Vadgama
CAM-I
President and Treasurer
Keith Hallin
Whirlpool Corporation
Ms. Nancy Thomas
CAM-I
Member Services
CAM-I Futures Forum
Dr. Bala Balachandran – Northwestern - Kellogg, Great Lakes Institute of
Management
Global Leadership in Cost, Process and Performance Management
Contacts
Over Three Decades of Industry-led
Collaborative Research
Ashok G. Vadgama
President
[email protected]
Phone: (512) 617-6428
Nancy Thomas
Member Services
[email protected]
Phone: (817) 426-5744
Global Leadership in Cost, Process and Performance Management