TECHNICAL BOARD NOTES

VISUAL TCM 2011

rolls out at the

ANNUAL MEETING

ACE International provides its members with the necessary resources to enhance their skills and knowledge as cost engineering practitioners and to ensure continued growth and success. Part of this endeavor is the continuing development of AACEs Total Cost Management (TCM) Framework. First published in 2006, the TCM Framework is a significant, original contribution to the cost management profession applicable to all industries. It is the AACE cornerstone technical document that integrates the current body of knowledge and literature for related fields; such as project management, operations management, and management accounting. It is also consistent with the latest organizational and portfolio thinking which ties all practices and processes back to overall business investment strategies and objectives. TCM is a structured, annotated process map that for the first time explains each practice area of the cost engineering field in the context of its relationship to the other practice areas, including allied professions. The TCM Framework is a sys-

H. Lance Stephenson, CCC Technical Board Member

tematic process for applying the skills and knowledge of cost engineering. With a greater focus on project control, the TCM Framework adds richness in many of the processes. More importantly, the TCM Framework addresses strategic asset cost management practices in business and capital planning, operations and maintenance, and product cost management, both

Ultimately, the vision of VTCM is to provide our membership with a complete, integrated system that links all of the AACE product lines together.

COST ENGINEERING JUNE 2011

Figure 1 A Representation of What a User Should Expect to See When Using the Visual TCM upstream and downstream of the project processes. Asset owner companies will particularly appreciate the enhanced coverage of areas such as historical data management, cost modeling, economic and decision analysis, and value analysis. The intent is that the TCM Framework will be studied, applied, and continuously improved by a worldwide audience from all industries, thereby advancing the profession of cost engineering and cost management. The next phase of the continuous improvement platform of the TCM Framework is to provide our membership with a web based application (Visual TCM) that enhances the understanding and usability of the processes within the framework. The web application will provide the cost engineering community with an increased awareness of the power of TCM. The Visual TCM will be accessible to all AACE members at no additional fee.

What Does the Visual TCM Look Like?

Similar to the book, Visual TCM includes high-level, integrative process maps showing basic inter-relationships and sequencing of processes, and a rudimentary flow of information. The processes are hyperlinked, allowing the user with the mobility to move to and from related process maps and reference material. This allows for the optimal effectiveness of understanding and using the process and sub-process in the context of and relationship to associated sub-processes that share common strategies and objectives. Visual TCM allows the user to view and apply the TCM section-by-section, at a subprocess or functional level. Visual TCM was developed to visually enhance the process maps in order to drive the understanding of the relationships that were established when the TCM Framework was first developed. In other words, VTCM first represents the graphical aspects of each process map. Figure 1 is a representation of what a user should expect to see when using VTCM.

Combining web-based technology with the skills, knowledge and expertise of the Total Cost Management Framework
Visual TCM (VTCM) graphically demonstrates the integration of the strategic asset management (SAM) and project controls (PC) process maps of the TCM Framework. The Visual TCM application has been designed to provide a dynamic view of the TCM processes, from the overall strategy process maps to the mid-level processes and detailed activities. VTCM will provide the ability to navigate the TCM Framework, through its entirety, as long as you have connectivity to the internet. VTCM will be at our memberships finger tips, allowing them access into the world of the AACE Total Cost Management Framework.

Look Beyond the Magnifying Glass!!!

The magnifying glass is the VTCM gateway to other processes within the TCM Framework. This gateway allows you to enter into the related sub-process to better understand the inner workings of the TCM Framework.

Just Follow Your Finger!!!

The finger pointer allows the user to navigate through the Visual TCM. This gateway allows you to enter into the related sub-process.

COST ENGINEERING JUNE 2011

Figure 2 Description Sample of Related Reference Material Accessible Using the Visual TCM Features As an example, the Level 2 project controls process map provides the user with the ability to navigate to the subprocesses that make up the overall project controls process map. The Level 2 map also provides the user to navigate to the activity descriptions, input and output requirements, key concepts and terminology, and further readings and sources associated with the process map. ization through efficient orientation, process standardization, and usability. Provide a learning experience based on the information they need to know and more. And, Finally, VTCM will introduce to the individual and organization a way to identify and provide real time on-line training.

What our Membership Should Expect Over the Coming Months

Visual TCM is a product of the AACE Technical Board. The Technical Board will release the first phase of VTCM, as described here, by this years Annual Meeting, June 19-22, in Anaheim, Calif., at the Disneyland Hotel. The Technical Board will continue to develop VTCM, which may include integrating other products such as: Recommended Practices; Professional Practice Guides; Skills & Knowledge of Cost Engineering; and, Certification Study Guides.

Hover over top of any of the boxes or annotated script relating to a process and the finger pointer appears. This allows the user to gain access to the description of the activity or related reference material (as shown in figure 2).

Activity Description
Visual TCM is a highly interactive assembly of process maps and related reference material within the TCM Framework, and provides the user with a powerful tool to navigate through a document considered to be the cornerstone within the cost engineering community.

Ultimately, the vision of VTCM is to provide our membership with a complete, integrated system that links all of the AACE product lines together. Consider this the beginning of a highly integrated AACE Virtual Library!

Benefits of the Visual Approach to the Total Cost Management Framework

Web technology provides a model for developing cost engineering education and training, advanced product delivery, and supporting curricula that will serve those individuals and enterprises in need of a broader, more integrated perspective. The following identifies some of the key benefits that VTCM offers. Links the process maps to support the interactive relationships with other processes maps within the TCM. Provides collapsible/expandable bookmarks for user interface efficiency. Eliminates time rustling through literature and reference data in search of collateral information. For corporations, increases the productivity of your organ-

Visual TCM is a product of the AACE Technical Board. The Technical Board will release the first phase of VTCM, as described here, at this years Annual Meeting, June 19-22, in Anaheim, Calif., at the Disneyland Hotel.
Stay Tuned . . .
AACE International and the AACE Technical Board would like to thank the Genesee Valley Section, the Aurora-Edmonton Section and the Chinook-Calgary Section for their financial contribution in the development of the Visual TCM. Without their support, the VTCM would not have been possible.

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COST ENGINEERING JUNE 2011