The Navy's Programs for Intensified Management of Supply Items Need Improvement

LCD-78-230: Published: Aug 9, 1978. Publicly Released: Aug 9, 1978.

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The Navy's special programs for intensified management of material in the supply system have the objectives of expediting repairs of equipment components and modules and improving supply readiness. A study sought to determine if the programs were accomplishing their objectives and were cost-effective. The study concentrated on the Closed Loop Aeronautical Management Program (CLAMP), developed by the Aviation Supply Office, which was designed to insure one-for-one exchange of repairable items, improve retrograde control, enforce system discipline, and identify failure causes for designated items. No formal cost-benefit analyses comparing alternative methods of achieving program objectives were made; the Navy had no benefit tracking system for evaluating the programs; and performance indicators did not conclusively demonstrate the programs' effectiveness. Recently, the Fleet Material Support Office was asked to develop a benefit tracking system, but it has not yet been approved. Service items were sometimes returned erroneously to a repair contractor, and other items were shipped to the wrong repair facility. The Secretary of the Navy should take action to expedite completion of an evaluation system to accurately measure benefits from management programs.

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