PriSim Business War Games Inc. launches EAC-Lab™, an Estimate-At-Complete Business Simulation for the Aerospace and Defense Industry and Other Contracts-Intensive Industries
PriSim Business War Games, a premier business training firm, announced the launch of EAC-Lab™, an Estimate-At-Complete (EAC) scenario-planning educational tool for use in the aerospace and defense industry and other contracts-intensive industries. The simulation is an offshoot of PriSim's BizFighter™ aerospace and defense business simulation.
Chicago, IL (PRWEB) February 11, 2009
PriSim Business War Games, a premier business training firm, announced the launch of EAC-Lab™, an Estimate-At-Complete (EAC) scenario-planning educational tool for use in the aerospace and defense industry and other contracts-intensive industries. The simulation is an offshoot of PriSim's BizFighter™ aerospace and defense business simulation.
EAC-Lab™ is a computerized aerospace and defense scenario-planning tool designed to help decision-makers and program managers better understand the impact of program-level cost, profit, risk, and opportunity assumptions on Estimate-At-Complete (EAC) forecasts. EAC is an Earned Value Management (EVM) metric used in aerospace and defense and other contracts-intensive industries to forecast the costs and profits of a company's contracts, projects, and programs. An offshoot of PriSim's BizFighter™ aerospace and defense business simulation, the EAC-LAB™ "what-if" tool focuses on the elements that drive EAC in a contracts and EVM-intensive business.
The EAC-Lab™ introduces participants to fundamental and advanced EAC concepts and allows them to experience firsthand the impacts of their assumptions on EAC. Teams of participants set, adjust, and monitor estimates of program-level costs, profits, and the impacts of risks and opportunities on both cost-plus and fixed-cost programs. In addition, they record and detail the logic of their risk and opportunity assumptions in Basis of Estimate (BOE) reports. Program-level performance metrics are tracked and adjusted including EAC Variance, Management Reserve, Cost Performance Index (CPI), Schedule Performance Index (SPI), and Total Cost Level (TCL). Participants also see the potential impact across project types on company-level metrics such as stock price and ROIC.
This interactive scenario-planning approach is very constructive in bringing to light the key concepts of EAC. The complex, cascading impact of assumptions on both the program's and the company's ultimate performance is emphasized in the EAC-Lab™. Deep insights are catalyzed because participants not only learn the theory behind EAC but also see that theory put into action.
"The EAC-Lab™ helps program managers, financial managers, and other program staff understand the effect that their assumptions have on the forecasted performance of their programs and on the company," said Jeff Lefebvre, a Partner at PriSim. "A lot of people are looking at these forecasts, both management at the company and analysts outside of it. If assumptions are unreasonable, either above or below a threshold of what the actual performance eventually turns out to be, both the program and the company are at risk. Cash-flow, profit forecasts, and the company's credibility can be deeply affected."
The EAC-Lab™ is literally a business "laboratory" where the impact and accuracy of program estimates can be experimented with in a controlled environment and compared to actual results. Fundamental EAC concepts are taught and a competition is run between teams to produce the best program-level and company-level results. The interactive nature of the experience make the learning real, and the key drivers of EAC come alive to participants.
The EAC-Lab™ is another scenario-planning tool from PriSim that builds upon the success of the company's previous ROIC - Lab™ profitability analysis and What-If™ dealership scenario planning tools. These scenario-planning tools are of great value when focused, intensive education on specific performance metrics is required.
PriSim Business War Games' business simulations and courses provide managers across all industries with a practice-ground where new ideas can be tested and where strategies can be practiced in a risk-free laboratory environment. With the addition of the EAC-Lab™, PriSim has further expanded its course-delivery reach as it continues to provide unique, computer-simulation based business training courses for leading organizations worldwide. PriSim is the premier partner for companies that have a goal of developing their decision-makers' business acumen. At PriSim, we make learning real™.
ABOUT PRISIM BUSINESS WAR GAMES INC:
PriSim Business War Games Inc. works closely with leading organizations to build and deliver customized business simulations. PriSim assists clients in utilizing these custom tools to develop their employees' business acumen. PriSim develops tools and materials that help clients communicate more effectively, proactively explore strategic alternatives, involve multiple levels of management in business development, and share a common model and language of business and finance. Industry-specific simulations include insurance carrier, insurance agency and brokerage, mortgage banking, aerospace and defense, dealership, publishing, e-commerce, and manufacturing. PriSim helps clients make better business decisions while helping them to "See things differently, think differently™". PriSim, we make learning real™.
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