DoD Business Process Reengineering Assessment Guidance

DoD Business Process

Reengineering

Assessment Guidance

September 28, 2012

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Version History

Version

Publication Date

Author

Description of

Change

September 28, 2012

EBI

Final

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Table of Contents

1. Overview ……........................................................................................................................................ 4

1.1. Background and Statutory Requirements ............................................................................ 4

1.2. Purpose, Scope and Audience ............................................................................................... 4

1.3. Effective Date .......................................................................................................................... 4

2. DoD Approach to Business Process Reengineering ……........................................................ 5

3. BPR Assessment Process……........................................................................................................... 7

4. Integration with Other Requirements …….................................................................................. 8

4.1. DoD Instruction (DoDI) 5000.02 – Operation of the Defense Acquisition System…8

4.2. Business Capability Lifecycle (BCL) . ................................................................................... 8

4.3. Clinger-Cohen Act ................................................................................................................... 8

Appendix A – BPR Standard …….......................................................................................................... 9

Appendix B – BPR Assessment Requirement Matrix .................................................................... 18

Appendix C – Glossary ……................................................................................................................... 20

Appendix D – Acronyms ……................................................................................................................ 25

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1. Overview

1.1 Background and Statutory Requirements

Section 1072 of the National Defense Authorization Act (NDAA) for Fiscal Year 2010

introduced new

requirements into the Department’s investment review process stipulating defense business system

(DBS) modernizations may not be certified to obligate funds in excess of $1 million without a

determination of whether appropriate business process reengineering (BPR) had been completed.

Section 1072 integrated this requirement into the Department’s Investment Review Board / Defense

Business Council (IRB / DBC) and Defense Business Systems Management Committee (DBSMC)

governance framework and required BPR determinations be made by the Department of Defense (DoD)

Deputy Chief Management Officer (DCMO) or one of the Military Department Chief Management

Officers (CMO) depending on which Component’s business processes the DBS modernization supports.

Section 901 of the National Defense Authorization Act for Fiscal Year 2012

modified the BPR

requirements of the Department’s investment review process by stipulating that funds available to the

DoD, whether appropriated or non-appropriated, may not be obligated for DBSs in excess of $1 million

over the period of the current future-years defense program, referred throughout this document as

covered DBSs, until the Pre-Certification Authority (PCA) has determined that appropriate BPR had

been undertaken.

1.2 Purpose, Scope and Audience

The purpose of this document is to provide BPR Assessment Guidance to all appropriate stakeholders

to include, but not limited to Functional Process Owners, Functional Sponsors, Program Managers, non-

Military Department PCAs, Military Department (MilDep) CMOs, Principal Staff Assistants (PSA), and

the IRB / DBC. Compliance is required for all covered DBSs with the exception of DBSs with a

transition plan state of legacy and a termination date within 36 months of certification request.

A single BPR effort may support and be supported by multiple covered DBSs. Conducting appropriate

BPR ensures business processes are streamlined and efficient as well as improves the support provided

by covered DBSs. The BPR Standard outlined in Appendix A is an important step toward ensuring

DBSs are given the greatest chance of success and fielded quickly. Conducting appropriate BPR will also

help the Department rationalize its covered DBS’s portfolio, improve its use of performance

management, control scope changes, and reduce the cost of fielding business capability.

This document supersedes the memorandum, guidance and BPR assessment form issued on April 30, 2011.

1.3 Effective Date

This guidance is effective October 1, 2012 and will be reviewed annually.

Public Law 111-84

Public Law 112-81

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2. DoD Approach to Business Process Reengineering

DoD developed this guidance to implement a useful and tailored approach to BPR. The Department

also sought to align its BPR approach with other existing oversight processes as discussed in Section 4 of

this guidance.

DoD has taken a holistic approach to BPR which includes a Portfolio and End-To-End (E2E)

perspective. The Department defines BPR as a ―logical methodology for assessing process weaknesses,

identifying gaps, and implementing opportunities to streamline and improve the processes to create a

solid foundation for success in changes to the full spectrum of operations.‖ This definition covers

various perspectives of BPR and aligns with the principles of Doctrine, Organization, Training, Materiel,

Leadership and Education, Personnel, Facilities, and Policy (DOTMLPF-P) analysis

From a Portfolio perspective, the Department’s DBS investment management process requires the

alignment of DBSs within an Organizational Execution Plan (OEP) to a Functional Strategy’s strategic

goals. This effort aligns with the goals of DoD Directive (DoDD) 8115.01, Information Technology

Portfolio Management policy. This Directive established the management of DoD information

technology (IT) investments as portfolios. Portfolio Management should seek to 1) link portfolio

objectives to Enterprise vision, mission, goals, objectives, and priorities, 2) develop quantifiable

outcome-based performance measures, 3) identify capability gaps, opportunities, and redundancies, 4)

identify risks, and 5) provide for BPR. DoDD 8115.01 requires assessment of the portfolio, internal and

external to DoD. DOTMLPF-P analysis does not focus primarily on a materiel solution; however if an

IT investment (materiel solution) is indicated, the proposed IT investment must be assessed to identify

commonality in the portfolio and provide potential solutions that may be in the best interest of the

Enterprise.

From an E2E perspective, the Department has identified business operations with underlying processes

that cut across many of its traditional organizations and functional business areas, and developed 15 E2E

Business Process Flows. On April 4, 2011, DCMO published a memorandum directing DBS owners to

(1) use E2E as the framework to drive and organize Business Enterprise Architecture (BEA) content

within the federated BEA ontology; and (2) synchronize future releases of the BEA with DoD's highest

priority system acquisition and modernization efforts related to critical activities within the E2E lifecycle

models. This essential framework may be used by the investment review process to guide and constrain

DBS investments. Because BPR looks at business processes that are supported by DBS, it is important

that conformity with the BPR Standard be a joint effort which includes all appropriate stakeholders, to

include the Functional Sponsor and Program Manager (as applicable).

Conducting BPR is an ongoing process that should focus on increasing efficiencies and/or streamlining

the business processes. Determining whether appropriate BPR has been undertaken validates that the

business process supported by the DBS have been streamlined, and/or eliminated or reduced unique

requirements and interfaces to the maximum practical extent.

CJCSI 3170.01H

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The Department recognizes covered DBSs are in different levels of maturity or stages of development

and appropriate BPR may be tailored for each stage. The different BPR Submission Types based on the

stage of a covered DBS are: 1) Development, 2) Modernization, 3) Research, 4) Technical Refresh, and

5) Sustainment. Detailed information is provided in the BPR Assessment Requirement Matrix

(Appendix B) regarding the BPR Submission Types and the tailored assessment for each. The glossary

(Appendix C) provides full definitions for each submission type.

The BPR assessment process will seek to ensure there is clear documentation of the business need and

confidence that the solution meets the need prior to approval/certification of funds. Utilizing and

complying with the BPR Standard constitutes appropriate BPR and ensures enabling technologies are

developed based on well-defined requirements, and a clear business need to position the covered DBS

for success.

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3. BPR Assessment Process

DoD’s BPR assessment process has been integrally tied to the IRB / DBC process

. As part of that

process, the BPR Standard (Appendix A) must be used as the basis for assessing each covered DBS

except DBSs with a transition plan state of legacy and a termination date within 36 months of its

certification request. The PCA is responsible to determine whether appropriate BPR has been

accomplished prior to submitting request for funding certification (documented in the OEP). The BPR

determination will be identified: 1) in the Portfolio Certification Request Memorandum (PCR Memo),

and 2) in response to the BPR Performed

declaration on the Certification Page in the Defense

Information Technology Portfolio Registry (DITPR).

Annually, the Office of the Deputy Chief Management Officer (ODCMO) will conduct a visual

assessment of the objective evidence validating that appropriate BPR efforts have been sufficiently

undertaken based on the BPR Standard to ensure that:

The business process supported by the DBS is (or will be) as streamlined and efficient as practicable; and

The need to tailor commercial-off-the-shelf systems to meet unique requirements or incorporate unique interfaces has

been eliminated or reduced to the maximum extent practicable

Upon completion of the BPR assessment, one of the following dispositions and a brief description of

the finding will be provided to the PCA and the IRB / DBC:

Evidence validates appropriate BPR was performed.

Evidence does not validate appropriate BPR was performed.

For Fiscal Year 2013:

In October 2012, DCMO will begin validating a sampling of the BPR assessments certified by the PCAs.

The covered DBSs to be assessed will be determined based on the NDAA Compliance attachment to

the FY13 OEP PCR Memos indicating appropriate BPR had been undertaken. Furthermore, PCAs will

be required to provide a plan of action for covered DBSs in which BPR was not certified in fiscal year

2013 based on the BPR Assessment Requirement Matrix (Appendix B).

For Fiscal Year 2014:

In the third quarter of fiscal year 2013, DCMO will coordinate with appropriate PCAs and begin

validating the fiscal year 2014 BPR assessments certified by PCAs.

Defense Business System Investment Management Process Guidance of June 29, 2012

BPR Performed is a DITPR Data Element declared on a DBS which indicates DoD BPR compliant requirements have

been met.

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4. Integration with Other Requirements

4.1 DoD Instruction (DoDI) 5000.02 – Operation of the Defense

Acquisition System

Many of the standards of BPR discussed above are considered good program management/implementation

practices – and in some cases, already part of DoDI 5000.02. As DBSs move through the acquisition process

outlined in DoDI 5000.02, we encourage use of documentation already routinely produced to objectively

demonstrate what is asserted in the BPR Standard. As stated earlier, however, answers to the questions from

the BPR Standard should also specify which part of the objective evidence directly supports any assertions.

Additionally, BPR is, in many respects, continuous and ongoing throughout a development/modernization’s

lifecycle. It is not the intent of this process to ask organizations conducting BPR to complete work out-of-

cycle of their acquisition approach. However, if an organization asserts certain elements of the BPR Standard

are not applicable to specific programs which support the BPR efforts, they must fully explain the reasoning

and indicate how those elements will otherwise be addressed.

4.2 DoD Business Capability Lifecycle (BCL)

Many of the standards described in this guidance are also present in the Acquisition Policy for DBSs,

issued by the Under Secretary of Defense for Acquisition, Technology and Logistics on June 23, 2011. In

many cases, documentation produced as part of the BCL process, such as the Problem Statement

Document and the Business Case Document, will contain many of the same requirements as this BPR

Assessment Guidance and could serve as objective evidence to the BPR Standard.

4.3 Clinger-Cohen Act

The Clinger-Cohen Act (CCA), formally the Information Technology Management Reform Act of 1996,

was enacted by Congress to improve the way Federal Agencies acquire and manage IT resources. The

CCA established the DoD Chief Information Officer (CIO) role in helping ensure IT acquisition

programs were being appropriately managed. The CCA explicitly requires Functional Sponsors to

analyze their missions and assess their business processes and, based on this analysis, redesign their

mission-related and administrative processes (as appropriate) before making significant investments in

IT. The BPR Assessment Guidance is consistent with the requirements of the CCA.

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Appendix A

Business Process

Reengineering

Standard

Version 1.0

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Purpose

This standard is intended to improve the conformance, quality, consistency and audit-ability of BPR

assessments. The content replaces the BPR assessment form issued on April 30, 2011 and provides a

standard method for assessing BPR efforts to support consistent compliance with BPR requirements.

Many questions within the BPR Standard require that objective evidence be available at the time of

assessment. The intent is not to recreate existing documentation or to duplicate efforts, but to ensure

evidence exists that appropriate BPR was undertaken on the business processes supported by a covered

DBS.

The last page of the BPR Standard may be used as a template for listing all applicable objective evidence,

including reference question number, BPR Standard category, description and file name of the objective

evidence.

For questions, please contact the Enterprise Business Integration (EBI), ODCMO at (571) 372-3034.

BPR Standard Version 1.0 - Assessment Questions

Q1. What business need are you trying to solve or sustain through this BPR

submission?

Describe and document the current or existing need to be addressed. The business need shall:

Define the scope, magnitude and duration of the business need (e.g., issue, situation or

opportunity).

State the product or service developed, delivered, or being maintained to support the

business process involved.

Identify the customer of the product or service, and describe the expected standard of

quality.

Describe the current operating environment and performance level of the product or the

service provided.

Describe the problem, issue, situation or opportunity as a quantifiable gap between current

performance and customer expectations.

Describe why the status quo is a challenge (or opportunity) to the organization’s mission.

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Q2. Which of the 15 BEA End-to-End Processes does the business need

support or sustain?

Identify the primary and any secondary E2E process (es) relating to the involved business need. The

submission shall:

Identify the E2E business process flows aligning to the business need.

Identify the Operational Activities (OV-5) aligning to the business need (whether they are

connected to E2Es or not).

o Identify all standards associated with operational activity (ies) aligning to the

business need.

(e.g. Operational activities with associated Standard Financial Information Structure (SFIS)

identified within the BEA)

Identify all redundant functional capabilities across the business processes to include secondary E2E

processes in order to leverage existing solutions internal and external to the organization.

Q3. Have you completed an “As-Is” map of the current process that illustrates

the specific business need that requires change? If yes, include objective

evidence.

Document an ―As-Is‖ process map of the current-state business process relevant to the business

process being reengineered. The process map shall:

Identify process start and stop point(s) in the business process that encompass the full scope

of the business need.

Fully document the current state of the business process, with sufficient detail to visually

analyze rework loops, errors, duplication of effort, and process constraints.

Identify those laws, regulations and policies mandated for compliance.

Q4. What are the operational process metrics (e.g., time, defects, production,

and cost savings/avoidance) for the baseline "As-Is" process?

Based on the business need in Q1, identify the baseline/current performance and source of data. The

submission shall:

Identify and describe the operational process metrics for the baseline/current performance.

Identify and document operational process metrics that include no less than:

o Operational definitions, thresholds, scope, and calculations.

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o A data collection plan, including data sources, collection method (e.g., manual,

system-generated), and required data fields.

Q5. Root Cause Analysis - What are the root causes of the business need

identified above?

Conduct Root Cause Analysis (RCA) on the specified suboptimal situations/conditions described in

the business need. The submission shall:

Document the method used to identify each root cause.

Document root cause(s) in the order of determined impact to the problem, issue, situation

or opportunity.

Document specific efforts to involve affected stakeholders directly impacted by specific root

causes in the analysis.

Analyze and document environmental impacts on the root cause(s), including laws,

regulations, directives, policies, governance, personnel to include senior level, training or lack

thereof, oversight, facilities, etc.

Q6. What non-materiel solutions (e.g., process, organizational, or training

changes) are you implementing across the full spectrum of operations to

address the business need? Why are non-materiel solutions alone insufficient

to solve the business need?

Document how each step of the DOTMLPF-P Analysis is applied to each root cause identified by

Root Cause Analysis. The submission shall:

Identify non-materiel solution(s) utilized in an attempt to address the business need.

Document if/how the identified non-materiel solution(s) will impact existing

DOTMLPF-P.

Q7. What other existing materiel solutions (internal and external to DoD) did

you consider to meet your business need? Why were these solutions unable

to meet the business need?

Identify existing materiel solutions across the business missions that can potentially satisfy the

business requirements. The submission shall:

Document the method used to evaluate /consider existing materiel solutions within DoD,

and Commercial Off-the-Shelf /Government Off-the-Shelf (COTS/GOTS) solutions,

including resources used, decision making criteria, and efforts to ensure sufficient analysis.

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o Document a detailed justification if the existing material solution that is unable to

meet the business need is currently identified in a Functional Strategy as a

Mandatory / Enterprise Solution or System

Document the Analysis of Alternatives conducted to demonstrate why the existing materiel

solutions and/or COTS/GOTS solutions may not be sufficient to address the problem,

issue, situation or opportunity.

Q8. Which industry best practices/ benchmarks were leveraged to develop

and evaluate potential “To-Be” processes and solutions? For example, did you

consult with industry leaders, use the Supply Chain Operations Reference

(SCOR) Model or an equivalent, incorporate written government best

practices, incorporate industry leading performance metrics, etc.?

Describe benchmarking conducted and best practices adopted in developing and/or evaluating the

proposed ―To- Be" processes and RCA solutions identified. The submission shall:

Document the method used for benchmarking and incorporation of best practices.

Document how benchmarking and best practices enhance the ―To-Be‖ process and address

the problem, issue, situation or opportunity OR describe how the ―To-Be‖ process was

enhanced and the problem, issue, situation or opportunity was addressed without using best

practices and bench marking.

Q9. Have you completed a “To-Be” map of the target process that illustrates

the improvements to the “As-Is” process that this effort will generate? If yes,

include objective evidence.

Document a ―To-Be‖ process (map) describing the future state of operations, indicating

improvements, and efficiencies that will meet the business need. The ―To-Be‖ process map shall:

Identify start and stop point(s) that encompass the full scope of the future state business

process.

Fully document the future state of the business process with sufficient detail to visually

analyze rework loops, errors, non-value added steps, potentials for duplication of effort, and

process constraints.

Identify and document resolutions for each root cause identified in the RCA as well as the

efforts taken to ensure that effective resolution of the identified root cause will inhibit

recurrence of the problem, issue, or situation.

Demonstrate where processes were improved on the ―To-Be‖ map or separate document to

include at a minimum:

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o Hand-off(s) between individuals or organizations are eliminated.

o Reduced resource requirements in achieving outcomes.

o Reduced time in achieving outcomes.

o Impact of laws/regulations/policies constraining the ―To-Be‖ process.

Identify standard enterprise data exchanges for all interfaces that are planned to remain as

part of the target processes (e.g. the Standard Line of Accounting/Accounting Classification

(SLOA)).

Q10. How have you eliminated or reduced the need for unique requirements,

processes, or Reports, Interfaces, Conversions, or Extensions (RICE) objects?

How many RICE objects are planned as part of this

development/modernization?

Identify and itemize the business need for unique requirements and/or unique interfaces by using the

RICE approach. Detail and furnish justification for the involved RICE objects. The submission

shall:

Evaluate and document Non-value added (NVA) activities.

Identify and describe RICE related to the business need.

Documented RICE analysis at a minimum should include:

o Assessment of existing RICE.

o Assessment of existing RICE for reuse opportunities.

o Assessment of opportunities to leverage COTS/ GOTS vice new RICE

development.

o Detailed justification for proposed RICE, tying need and purpose to business need,

customer requirements and/or process performance expectation.

Q11. What are the operational process metrics (e.g., time, defects,

production, and cost savings/avoidance) used for the targeted outcome "To-

Be" process?

For each metric in Q4, identify the target performance and source of data. The submission shall:

Identify and describe the operational process metrics used to measure the targeted outcome.

Identify and document operational process metrics that include no less than:

o Operational definitions, thresholds, scope, and calculations.

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Q12. How have you engaged key stakeholders in your BPR process to ensure

they are willing to change their processes/operations as needed?

Document how key stakeholders were/are engaged in the BPR process to ensure buy-in. The

submission shall:

Document quantifiable method(s) used to identify and assess the impact on stakeholders

including people, groups of people, or institutions on the success of the business project.

Describe specific stakeholder interests in the BPR effort.

o Project’s benefit(s) to stakeholder(s).

o Changes that the project might require the stakeholder to make.

o Project activities that may cause conflict for the stakeholder.

o The importance of a stakeholder's interests to the success of the proposed project.

o The likelihood and impact of a stakeholder’s positive response to the project.

o The likelihood and impact of a stakeholder's negative response to the project.

Document the strategy in obtaining support or reducing obstacles to the project.

Q13. Have you developed an implementation /change management plan that

includes: operating procedures, organizational training, interoperability,

personnel, governance, infrastructure, etc? How have your stakeholders and

solution providers been involved in the creating of this plan?

Develop an implementation/change management plan to include operating procedures,

organizational training, interoperability, personnel, governance and infrastructure involving

stakeholders and solution providers in creation of the plan. The submission shall:

Document an implementation/change management plan considering no less than:

o Organization

o Training

o Interoperability

o Personnel

o Governance

o Infrastructure

o Other aspects determined relevant by consequential senior leadership

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Documentation of the communication of root causes beyond the scope of control of the

project lead to involved senior leaders for escalation.

A response plan for performance outside expected tolerances, including who is responsible,

what the plan is, how the plan will be executed, and what the escalation plan is if

intervention is insufficient.

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Objective Evidence Reference List

Please document all objective evidence gathered while conducting BPR. This list may be used to cross

check that you have documented all objective evidence. All objective evidence must be available for the

BPR assessment conducted by the PCA and DCMO.

Question #

Objective Evidence

Description of Objective Evidence

Name of file attached

Business Need

Strategic Alignment

―As-Is‖ Process

Baseline Business

Performance Metrics

Root Cause Analysis

DOTMLPF-P

Existing Materiel

Solutions

Industry Best Practices

and Benchmarking

―To-Be‖ Process

Customization and

Extension Justification

Target Business

Performance Metrics

Stakeholder

Engagement

Implementation

/Change Management

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Appendix B

Business Process

Reengineering

Assessment

Requirement Matrix

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Assessment Requirement by

BPR Submission Type

Development

Modernization

Research

Technical Refresh

Sustainment

Legacy

Required BPR Standard

Q1 - What business need are you trying to solve or sustain through this BPR

submission?

X X X X X

Q2 - Which of the 15 BEA End-to-End Processes does the business need

support or sustain?

X X X X X

Q3 - Have you completed an “As-Is” map of the current process that

illustrates the specific business need that requires change?

X X X

Q4 - What are the operational process metrics (e.g., time, defects, production,

and cost savings/avoidance) for the baseline "As-Is" process?

X X

Q5 - Root Cause Analysis - What are the root causes of the business need

identified above?

X X X X

Q6 - What non-materiel solutions (e.g., process, organizational, or training

changes) are you implementing across the full spectrum of operations to

address the business need? Why are non-materiel solutions alone insufficient

to solve the business need?

Q7 - What other existing materiel solutions (internal and external to DoD) did

you consider to meet your business need? Why were these solutions unable

to meet the business need?

X X

Q8 - Which industry best practices/ benchmarks were leveraged to develop

and evaluate potential “To-Be” processes and solutions? For example, did you

consult with industry leaders, use the Supply Chain Operations Reference

(SCOR) Model or an equivalent, incorporate written government best

practices, incorporate industry leading performance metrics, etc.?

X X

Q9 - Have you completed a “To-Be” map of the target process that illustrates

the improvements to the “As-Is” process that this effort will generate?

X X

Q10 - How have you eliminated or reduced the need for unique requirements,

processes, or Reports, Interfaces, Conversions, or Extensions (RICE) objects?

How many RICE objects are planned as part of this

development/modernization?

X X

Q11 - What are the operational process metrics (e.g., time, defects,

production, and cost savings/avoidance) used for the targeted outcome "To-

Be" process?

X X

Q12 - How have you engaged key stakeholders in your BPR process to ensure

they are willing to change their processes/operations as needed?

X X

Q13 - Have you developed an implementation /change management plan that

includes: operating procedures, organizational training, interoperability,

personnel, governance, infrastructure, etc? How have your stakeholders and

solution providers been involved in the creating of this plan?

X X

BPR Not Required X

BPR NOT REQUIRED FOR LEGACY SUBMISSIONS - MUST HAVE TERMINATION DATE WITHIN 36 MONTHS OF FUND

CERTIFICATION REQUEST

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Appendix C

Business Process

Reengineering

Assessment

Glossary

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Term

Definition

Alignment

The degree of agreement, conformance, and consistency among

organizational purpose, vision, and values; structures, systems, and

processes; and individual skills and behaviors.

"As Is" Process Model:

A model that graphically portrays how a business process is currently

structured. In process improvement efforts, it is used to establish a

baseline for measuring subsequent business improvement actions and

progress.

Baselining

Obtaining data on the current process that provide the metrics against

which to compare improvements and to use in benchmarking.

Benchmark

A structured approach for identifying the best practices from industry

and government, and comparing and adapting them to the

organization's operations. Such an approach is aimed at identifying

more efficient and effective processes for achieving intended results,

and suggesting ambitious goals for [DBS] program output,

product/service quality, and process improvement.

Best Practices

The processes, practices, and systems identified in public and private

organizations that performed exceptionally well and are widely

recognized as improving an organization's performance and efficiency

in specific areas. Successfully identifying and applying best practices

can reduce business expenses and improve organizational efficiency.

Business Case

A structured proposal for business improvement that functions as a

decision package for organizational decision makers. A business case

includes an analysis of business process performance and associated

needs or problems, proposed alternative solutions, assumptions,

constraints, and risk-adjusted cost/benefit analysis.

Business Process

Reengineering

A logical methodology for assessing process weaknesses, identifying

gaps, and implementing opportunities to streamline and improve these

processes to create a solid foundation for success in changes to the full

spectrum of operations.

Change Management

Activities involved in (1) defining and instilling new values, attitudes,

norms, and behaviors within an organization that support new ways of

doing work and overcome resistance to change; (2) building consensus

among customers and stakeholders on specific changes designed to

better meet their needs; and (3) planning, testing, and implementing all

aspects of the transition from one organizational structure or business

process to another.

Continuous Process

An ongoing effort to incrementally improve how products and services

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Improvement

are provided and internal operations are conducted.

Covered Defense Business

Systems

Defense business systems in excess of $1 million over the period of the

current future-years defense program

Customer

Groups or individuals who have a business relationship with the

organization; those who receive and use or are directly affected by the

products and services of the organization. Customers include direct

recipients of products and services, internal customers who produce

services and products for final recipients, and other organizations and

entities that interact with an organization to produce products and

services.

Cycle Time

Time elapsing from the beginning to the end of a process.

Defense Business System

An information system, other than a national security system, operated

by, for, or on behalf of the DoD, including financial systems, mixed

systems, financial feeder systems, and IT and information assurance

infrastructure, used to support business activities, such as acquisition,

financial management, logistics, strategic planning and budgeting,

installations and environment, and human resource management (10

U.S.C. 2222(j)(1)).

Defense Business System

Modernization

The acquisition or development of a new defense business system; or

any significant modification or enhancement of an existing defense

business system (other than necessary to maintain current services)( 10

U.S.C. 2222(j)(3)).

Development

Design and development of a new functional capability that is currently

not being provided in the Department of Defense.

Function

A set of related activities that is part of a process, often known as a sub

process within a process. Organizations often divide themselves into

functional units, such as purchasing, product development, order

fulfillment, etc.

Input

The financial and nonfinancial resources the organization obtained or

received to produce its outputs.

Legacy

(1) Any system with a sunset [termination] date within 36 months of

the date of the certification request. Legacy systems are not required

to undertake effort to assert BEA compliance but must identify a

sunset [termination] date and the systems(s) it is being replaced by.

Legacy systems are not allowed to obligate modernization dollars.

(2) For BPR Submission Type ―Legacy‖: Maintain an existing covered

DBS in support of past functional capabilities in a portfolio across the

Department of Defense that is scheduled to be sunset within 36

months over the FYDP.

Model

A representation of a set of components of a process, system, or

subject area. A model is generally developed for understanding,

analysis, improvement, and/or replacement of the process.

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Modeling or Flowcharting

A graphic representation of the activities and sub processes within a

process and their interrelationships.

Modernization

Changing an existing capability in order to provide new functional

capability that is not currently provided in the Department of Defense.

Outcome

The ultimate, long-term, resulting effects--both expected and

unexpected—of the customer's use or application of the organization's

outputs.

Pre-Certification Authority

The PCA is the senior accountable official that is responsible for

ensuring compliance with investment review policies prescribed by the

Component and the DBS Investment Management Process Guidance.

For each Military Department, the PCA is the respective Chief

Management Officer. For the Defense Agencies, the PCA is the

Agency Director. The Combatant Commanders serve as the PCA for

their respective Combatant Commands. For any system developed by

an OSD organization or by an ―Other Defense Organization‖

(excluding Defense Agencies), the appropriate OSD Principal Staff

Assistant is the PCA.

Process Management

Approach

Approaches, such as continuous process improvement, business

process redesign, and reengineering, which can be used together, or

separately to improve processes and sub processes.

Process

A set of activities that produce products and/or services for

customers.

Process Owner

An individual held accountable and responsible for the workings and

improvement of one of the organization's defined processes and its

related sub processes.

Research

Testing possible functional capability in a controlled environment in

order to make a recommendation for whether there is a need for a new

functional capability or enhancement to an existing functional

capability within the Department of Defense.

Root Cause Analysis

A technique used to identify the conditions that initiate the occurrence

of an undesired activity or state.

Stakeholder

An individual or group with an interest in the success of an

organization in delivering intended results and maintaining the viability

of the organization's products and services. Stakeholders influence

[DBS] programs, products, and services. Examples include

congressional members and staff of relevant appropriations,

authorizing, and oversight committees.

Supply Chain Operations

Reference Model

The Supply Chain Operations Reference-model (SCOR) is a process

reference model that has been developed and endorsed by the Supply

Chain Council as the cross-industry standard diagnostic tool for supply

Department of Defense Page 24 of 27

chain management.

Sustainment

Maintaining the functional capabilities of a target technical solution

within the Department of Defense.

Technical Refresh

Updating of a technical infrastructure or platform of an existing

technical capability within a portfolio across the Department of

Defense. There are no operational changes or enhancements to the

business process(es) that the covered DBS supports, but there is an

upgrade to the covered DBS in order to meet regulatory compliance.

Technical refresh is a system change to upgrade system quality vice

business process.

Department of Defense Page 25 of 27

Appendix D

Business Process

Reengineering

Assessment

Acronyms

Department of Defense Page 26 of 27

Acronym

Definition

BCL

Business Capability Lifecycle

BEA

Business Enterprise Architecture

BPR

Business Process Reengineering

CCA

Clinger-Cohen Act

CIO

Chief Information Officer

CJCSI

Chairman of the Joint Chiefs of Staff Instruction

CMO

Chief Management Officer

COTS

Commercial-off-the-shelf

DBC

Defense Business Council

DBS

Defense Business System

DBSMC

Defense Business Systems Management Committee

DCMO

Deputy Chief Management Officer

DITPR

Defense Information Technology Portfolio Registry

DoD

Department of Defense

DoDD

Department of Defense Directive

DoDI

Department of Defense Instruction

DOTMLPF -P

Doctrine, Organization, Training, Materiel, Leadership and education,

Personnel, Facilities and Policy

EBI

Enterprise Business Integration

E2E

End-To-End

Fiscal Year

GOTS

Government-off-the-shelf

IRB

Investment Review Board

Information Technology

MILDEP

Military Department

NDAA

National Defense Authorization Act

NVA

Non-Value Added

ODCMO

Office of the Deputy Chief Management Officer

Department of Defense Page 27 of 27

OEP

Operational Execution Plan

OSD

Office of the Secretary of Defense

PCA

Pre-Certification Authority

PCR

Portfolio Certification Request

PSA

Principal Staff Assistant

RCA

Root Cause Analysis

RICE

Reports, Interfaces, Conversions, Extensions

SCOR

Supply Chain Operations Reference Model

SFIS

Standard Financial Information Structure

SLOA

Standard Line of Accounting/Accounting Classification