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CHIPS Articles: Navy ERP Achieves Initial Operational Capability

Navy ERP Achieves Initial Operational Capability
By CHIPS Magazine - July-September 2008
A major milestone in the Navy Enterprise Resource Planning program was achieved May 12 in ERP's acquisition life cycle. The attainment of initial operational capability (IOC) signals a significant step in bringing Navy ERP, the Navy's integrated business management system, to 88,000 users across the service when fully implemented.

The Navy ERP program brings total asset visibility and financial transparency to Navy business operations as part of the Navy's transformation of its business affairs.

The system, now in operation at the Naval Air Systems Command (NAVAIR), integrates management functions in program management, finance, workforce management, supply and maintenance into one system that standardizes and modernizes Navy business practices.

The program constitutes the Navy's adoption of best commercial business practices as it employs a commercial off-the-shelf (COTS) system that is in use in hundreds of private, commercial concerns.

The Navy conducted four pilot programs to assure that the unique requirements of the Department of Defense and Navy could be successfully supported by a commercially-based system. Lessons learned from the pilots allowed the Navy ERP program office to develop the system that will meet the Navy's requirements while increasing the effectiveness and efficiency of its business operations.

"Achieving IOC is a significant and well-deserved accomplishment for the Navy ERP program and a transformational step forward for the Navy Enterprise," said Rear Adm. Tim Flynn, Program Executive Officer for Enterprise Information Systems (PEO EIS). "The IOC milestone recognizes the dedication and tireless energy of the Navy ERP team in bringing this essential capability to the warfighter."

Release 1.0, now operating at NAVAIR, serves as the foundation of the Navy ERP system, and encompasses financial, program management and workforce management capabilities. In October of this year, Release 1.0, will be rolled out to the Naval Supply Systems Command and is scheduled to be implemented at the Space and Naval Warfare Systems Command in October 2009.

Release 1.1, which is currently under design, will be the Navy's Single Supply Solution, combining the operations of retail and wholesale supply support for the Navy. This release is scheduled for implementation at the Naval Supply Systems Command in February 2010.

"We are extremely pleased that IOC has been reached. This program has been a very complex undertaking, requiring the best of the remarkable talents of our program team. This IOC declaration affirms the transformation of the Navy's business practices is on track to achieve great things for the Navy," said Valerie Carpenter, acting program manager for the Navy ERP program.

The Navy ERP program uses a product produced by SAP, and is the largest ERP implementation in the Department of Defense — and among the largest implementations ever accomplished.

Navy ERP is a Department of the Navy PEO EIS program. Go to www.spawar.navy.mil, for information about the PEO EIS.

Calvin Newby, head of testing for Navy ERP, and Terry Mitchell, test team member from NAVAIR, work on the extensive test program executed by the Navy ERP program, part of the rigorous requirements necessary for the program to achieve initial operational capability.
Calvin Newby, head of testing for Navy ERP, and Terry Mitchell, test team member from NAVAIR, work on the extensive test program executed by the Navy ERP program, part of the rigorous requirements necessary for the program to achieve initial operational capability.
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CHIPS is an official U.S. Navy website sponsored by the Department of the Navy (DON) Chief Information Officer, the Department of Defense Enterprise Software Initiative (ESI) and the DON's ESI Software Product Manager Team at Space and Naval Warfare Systems Center Pacific.

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