These issues-and more-require careful thought and attention when Government contractors plan an ERP implementation. They will be covered in depth-along with many other issues-in this course.

Course Faculty

A distinguished faculty of experienced practitioners in the art and science of Government contracts will guide you through this course. Their backgrounds and qualifications are described below. In addition, you will receive a comprehensive set of materials for bookshelf reference.

We invite you to join us.

The Course Curriculum

BACKGROUND & OVERVIEW

1. Congressional Hearings
   1. Inaccurate costing to contracts
   2. Treating contract inventory as company- owned inventory
   3. Inaccurate pricing of manufactured parts
   4. Inaccurate public voucher and progress payment amounts
   5. Transfer of material without Government approval
   6. Inaccurate costing of transferred fabricated parts
   7. Pricing of bills of material without consideration of available inventory
   8. Failure to fully disclose the impact of the MRP netting process at time of contract negotiation

2. Statutory and Regulatory Developments and Government Audits
   1. FAR
   2. Cost Accounting Standards
   3. Public Laws

3. Definitions
   1. Material Resource Planning (MRP)
   2. Manufacturing Resource Planning (MRP II)
   3. ERP

4. MRP II and Its Purpose
   1. Master Production Plan
   2. Master Production Schedule (MPS)
   3. Inventory management
   4. Work Order Schedules pegged to model/unit
   5. Capacity and flow scheduling
   6. Scheduling of non-MPS subassemblies and details
   7. EBOMs, MBOMs and part lead times
   8. Interrelationship with Procurement, the Shop Floor and Cost Accounting
   9. What did we learn from MRP II?

   MMAS

5. Material Management & Accounting System
   1. Dollar threshold for mandatory implementation of MMAS
   2. The “Ten Key Elements,“ including written policies and procedures such as how the Contractor will comply with and/or meet the Government’s expectations concerning:
      1. Ensuring that costs of material charged to a contract are based on valid time-phased requirements
      2. Bill of Material and Master Production Schedule accuracy
      3. Inventory accuracy and inventory controls
      4. Intercontract transfers of parts (loan/paybacks)
      5. Criteria for costing material transactions
      6. The identification of, and the ability to resolve, system control weaknesses, provide audit trails necessary to evaluate system logic and to verify that the system is operating properly
      7. Requirements for internal audits and internal controls

   ERP PROGRAMS

6. Enterprise Resource Planning; An integrated Management System
   1. Process mapping
   2. Disposition of legacy business systems
   3. Training
   4. Definitive Sales and Distribution Process
      1. Incoming contract review/acceptance and Order Entry
      2. Check inventory
      3. Pick/Ship, Make-to-Order (MTO) and Available To Promise (ATP)
   5. Supply Chain Planning
      1. Forecasting
      2. Transport Planning
      3. Distribution Requirements Planning
      4. Finite Planning
   6. Production
      1. Planning
      2. Execution
      3. Cost Build-up (Materials, Labor and Overhead)
   7. Materials Management
      1. Inventory
      2. Purchasing
      3. Warehousing
   8. Quality management
      1. Batch Management
      2. Quality Testing
   9. Engineering
      1. EBOMs
      2. MBOMs
      3. Change Management
   10. Human Resources
       1. All processes
   11. Finance
       1. Accounts payable
       2. Accounts receivable (including public vouchers and progress payments)
       3. General ledger
       4. Management of assets (tangible and intangible, including cash, inventory, equipment, hardware and buildings)
   12. Internal and Customer Reporting
       1. Cost Performance Reports/Earned Value Management
       2. Internal performance measurement and reporting

   GOVERNMENT CONTRACTS

7. Government Contracts Implementation Problems
   1. Accounting & Finance
      1. Cost allocability
      2. Cost allowability
      3. Pricing
      4. Defective Pricing
      5. Audits
   2. Purchasing & Materials
      1. MRP systems
      2. CPSR
      3. Vendor systems
      4. Inventory control
   3. Manufacturing/Operations
      1. Information flow
      2. Build & assemble
      3. Production control
      4. Systems test
   4. Quality Assurance/Quality Control
      1. Measurement
      2. Reports
   5. Human Resources
      1. Recruiting, Hiring
      2. Allocation of resources
      3. Time and labor reporting
   6. Customer Service
   7. Compliance reports
   8. Certification requirements

8. ERP Programs/A&D Specific ERP Solutions

   ORGANIZING & MANAGING THE PROJECT

9. Management Considerations
   1. Planning and organizing
      1. Make-up of Project Implementation Team
      2. Team members as technology wizards, implementers, and end users
      3. Team members should be dedicated to the project
      4. Role of the Project Director/CIO
         1. Goal Setting
         2. Implement now/modify later?
         3. Modular implementation/pros & cons
         4. Organizational input & agreement
      5. Training/Organizational Change
         1. People problems
         2. Resistance to change
         3. Classic methods to overcome resistance
         4. Management commitment
         5. Involve the end users
         6. Participation in the project
         7. Demonstrate the benefits
         8. Acknowledge all recommendations
      6. Trainers On The Project Team
         1. Selecting instructors
         2. Pilot training
         3. Team training
      7. Outside Consultants
         1. Systems knowledge
         2. Generalized vs. unique operations knowledge
         3. Advantages/Disadvantages
         4. Best Practices

10. Demonstrating That The System, As Changed By ERP, Meets The MMAS Requirements
    1. Internal Controls and Internal Audit
       1. Billings
       2. Earned value
       3. Inventory valuation and ownership
       4. Open commitments
       5. Open shop orders
    2. Demonstration: DCAA Audit with Government Team
       1. DCAA MMAS Audit Plan

11. Special Considerations
    1. Changes to Accounting, Progress Payment, Estimating, and Purchasing Systems
    2. Unique contracts, e.g., R&D
    3. Combined government and commercial contracts

12. Lessons Learned