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