September 2013 Newsletter: Executtive-in-Residence News: Jim Ruma: "Michigan Defense-Based Business Planning: Delivery on Time, Within Cost and to the Requirements"

“Delivery on Time, Within Cost and to the Requirements” is Phase III of the necessary defense/commercial market entry criteria to assure business success. More information can be found in prior newsletters on Phase I, “Identifying and Engaging the Customer” and Phase II, “Making the Sale to Achieve Contract Award.”

Known as the Esstential3, cost, schedule and performance are the essential criteria that must be managed and met to satisfy customer’s needs and perpetuate business growth. To be awarded new work, one must show the customer that the Essential3 have no hazardous risk in being met and that the assessment of work to be performed is the most competitive that beats all others.

During the proposal process and following contract award, trades may need to occur in the Essential3. For consideration, building a schedule or funding margin into an estimate can offset potential for over cost, over schedule or underperforming. With aggressive yet agile project management, one can minimize these margins to be more competitive. However, some element of margin must be included to guarantee meeting contract expectations of the customer. These margins mitigate the risk of failure to perform and assure some level of business success and, hopefully, continued growth.

Jim Ruma is a Macomb OU-INCubator Executive-in-Residence and assists businesses in the defense sector, specifically in the development of technology, engineering, manufacturing and sustainment. Jim spent 42 years with General Dynamics Land Systems, where he most recently served as Vice President of Engineering Programs and Project Management. He currently serves on the Board of Directors for the National Defense Industrial Association Michigan chapter. Jim can be reached at the Macomb OU-INCubator at (586) 844-9320.