Fundamentals of Business Management DAU M3.pdf - BCF 110 Fundamentals of Business Financial Management(Module Three DAU Contents Module 3 Introduction

Fundamentals of Business Management DAU M3.pdf - BCF 110...

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DAU BCF 110 Fundamentals of Business Financial Management (Module Three)
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1 Contents Module 3 - Introduction to Planning ............................................................................................................ 5 Lesson 3.1 - Module Overview .................................................................................................................. 5 Introduction to the "PPBE Planning Phase" Module ............................................................................ 5 Module Objectives ................................................................................................................................ 5 Module Outline ..................................................................................................................................... 5 PPBE Overview ...................................................................................................................................... 6 PPBE Overview, cont. ............................................................................................................................ 6 Objectives of PPBE ................................................................................................................................ 7 Module Overview .................................................................................................................................. 7 Lesson 3.2 - Planning Process ................................................................................................................... 8 Lesson Objectives .................................................................................................................................. 8 Planning Phase Overview ...................................................................................................................... 8 Strategic Documents ......................................................................................................................... 8 Flowchart .......................................................................................................................................... 9 Planning Phase Primary Inputs ............................................................................................................. 9 Primary Inputs ....................................................................................................................................... 9 Example - Role/Impact of Planning on Service PPBE Process ............................................................. 12 Primary Output ................................................................................................................................... 12 Planning Phase Fiscal Guidance .......................................................................................................... 12 How Strategic Document Impacts the Fiscal Guidance ...................................................................... 13 Planning Phase: Timing ....................................................................................................................... 13 Principal Players: Planning Phase ........................................................................................................ 15 Lesson Summary ................................................................................................................................. 15 Lesson 3.3 - Module Summary ................................................................................................................ 16 Module Summary ................................................................................................................................ 16 Module 4 - Introduction to Programming .................................................................................................. 17 Lesson 4.1 - Module Overview ................................................................................................................ 17 Introduction to the "PPBE Programming Phase" Module .................................................................. 17 Module Objectives .............................................................................................................................. 17 Module Outline ................................................................................................................................... 17 Module Overview ................................................................................................................................ 18 Module Overview, cont ....................................................................................................................... 18
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2 Lesson 4.2 - Cost Estimate ...................................................................................................................... 19 Lesson Objectives ................................................................................................................................ 19 Lesson Introduction ............................................................................................................................ 19 Introduction to Cost Analysis Terms ................................................................................................... 19 Life-Cycle Cost (LCC) ............................................................................................................................ 20 LCC Categories & Appropriations ........................................................................................................ 21 LCC Distribution by Cost Categories .................................................................................................... 22 Cost Analysis Requirements Description (CARD) ................................................................................ 22 CARD Development ............................................................................................................................. 23 Life Cycle Cost Estimate (LCCE) ........................................................................................................... 24 Coordinating and Preparing a Life Cycle Cost Estimate (LCCE) ........................................................... 24 Key Participants of LCCE ...................................................................................................................... 26 Best Practices for Cost Estimating ...................................................................................................... 26 Component Cost Estimate (CCE) ......................................................................................................... 27 Program Office Estimate (POE) ........................................................................................................... 27 Independent Cost Estimate (ICE) ........................................................................................................ 27 Should Cost and Will Cost ................................................................................................................... 28 Should Cost and Will Cost, cont. ......................................................................................................... 28 Reward Cost-effectiveness and Efficiency .......................................................................................... 29 Better Buying Power 2.0 Will Cost/Should Cost ................................................................................. 30 Better Buying Power 3.0 ..................................................................................................................... 30 Better Buying Power 3.0, cont. ........................................................................................................... 31 Better Buying Power 3.0, cont. ........................................................................................................... 32 Should Cost Management Motivation ................................................................................................ 32 Will Cost vs. Should Cost ..................................................................................................................... 32 Where to Look for Opportunities ........................................................................................................ 33 Where to Look for Opportunities, cont. ............................................................................................. 34 Where to Look for Opportunities, cont. ............................................................................................. 34 Total Ownership Cost (TOC) ................................................................................................................ 34 TOC Elements ...................................................................................................................................... 35 Reducing Total Ownership Cost (R-TOC) ............................................................................................. 36 Additional LCC Resources .................................................................................................................... 36 Lesson Summary ................................................................................................................................. 37
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3 Lesson 4.3 - Affordability ........................................................................................................................ 37 Lesson Objectives ................................................................................................................................ 37 Lesson Introduction ............................................................................................................................ 37 Affordability Definition ....................................................................................................................... 37 Background on Affordability ............................................................................................................... 38 DoD Acquisition Policy ........................................................................................................................ 38 Affordability Analysis .......................................................................................................................... 39 Affordability and the DoD 5000.02 ..................................................................................................... 39 Introduction to Cost As an Independent Variable (CAIV) ................................................................... 39 Overview of CAIV ................................................................................................................................ 40 Lesson Summary ................................................................................................................................. 40 Lesson 4.4 - Programmatic Guidance ..................................................................................................... 41 Lesson Objectives ................................................................................................................................ 41 Understand How Programming Guidance is Developed .................................................................... 41 Understand How Programming Guidance is Developed, Cont. .......................................................... 41 Linking National Strategy to Operational Level .................................................................................. 42 Guidance Influenced by Political Climate and Current Threat ............................................................ 43 Cost Estimates are Complete, Accurate, Defensible and Affordable ................................................. 44 Budget Controls TOA ........................................................................................................................... 45 How the Financial Manager Supports the PM and Manages TOA ...................................................... 46 How Program Requirements Are Prioritzed Against the Component Planning Guidance ................. 46 Lesson Summary ................................................................................................................................. 48 Lesson 4.5 - Programming Process ......................................................................................................... 49 Lesson Objectives ................................................................................................................................ 49 Programming Phase Overview ............................................................................................................ 49 Programming Phase Inputs ................................................................................................................. 50 FYDP Purpose & Content .................................................................................................................... 51 FYDP Three Major Dimensions ........................................................................................................... 52 Major Force Program (MFP) ............................................................................................................... 52 Program Elements ...............................................................................................................................
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