Success story | Support to an army vehicle program Estimate At Completion (EAC) breakdown and control

Support to an army vehicle program Estimate At Completion (EAC) breakdown and control

CHALLENGE

A Defence company is set to deliver more than a 1000 armored vehicles. Nearing its full rate production, challenges to reach recuring costs targets remain.

CYLAD’s mission was to review the cost deviation root causes and realize improvement potentials.

SOLUTION

• Highlight cost deviation root causes and potential optimizations:

– Establishment of a “single source of truth-based EAC” thanks to a comprehensive understanding of EAC assumptions, changes, cost drivers, risks and current level of confidence

– Identification and analyses of cost deviations root causes such as variations in procurement costs, overconsumption or design changes

– Development of a set of recommendations including organizational alignment and use of Power BI and visual management

• Deployment of a Performance Cockpit and establishment of Power BI as basis for Visual Management and new ways of working (governance and routines, ‘PDCA’ drumbeat, KPI management)
• Setup of a new organizational matrix to better involve line functions into the program while redefining roles and responsibilities throughout the product development process

KEY DELIVERABLES

• Clean and well-structured cost database
• Cockpit to monitor performance (Power BI)
• New organizational matrix with defined roles, responsibilities, and interfaces

Contact

olivier.paget@cylad.com