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The Navy Can Improve Material Management at Naval Shipyards

NSIAD-85-71 Published: May 06, 1985. Publicly Released: May 06, 1985.
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Highlights

GAO conducted a review of four naval shipyards to determine the effectiveness of Navy materiel management activities.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Navy The Secretary of the Navy should direct the Commander, NAVSEA, to initiate a one-time special project to have shipyards identify and record all existing unrecorded materiel and retain only that materiel allowed by Department of Defense (DOD) and Navy regulations, return all other needed materiel to the supply system, and dispose of materiel that is no longer needed.
Closed – Implemented
Corrective action has been deferred until fiscal year 1991, in order to make automatic data processing changes. Since this is 4 years after the issuance of the GAO report, a follow-on review may be in order.
Department of the Navy The Secretary of the Navy should direct the Commander, NAVSEA, to: (1) collect accurate information on materiel used during overhauls; (2) properly account for unused materiel upon the completion of each overhaul; and (3) record all manufactured materiel in the historical usage database.
Closed – Implemented
The Navy has materiel management improvements underway, but they are not specifically responsive to the recommendations. Since the GAO report was issued 4 years ago, keeping this recommendation open would not be purposeful. A follow-on review may be in order.
Department of the Navy The Secretary of the Navy should direct the Commander, NAVSEA, to adopt and implement a materiel requirements planning subsystem that the shipyards can use to analyze historical usage data.
Closed – Implemented
The Navy has materiel management improvements underway but they are not specifically responsive to the recommendations. Since the GAO report was issued 4 years ago, keeping this recommendation open would not be purposeful. A follow-on review may be in order.
Department of the Navy The Secretary of the Navy should direct the Commander, NAVSEA, to ensure that shipyards implement procedures to analyze actual usage data when ordering materiel for future overhauls.
Closed – Implemented
The Navy has materiel management improvements underway, but they are not specifically responsive to the recommendations. Since the GAO report was issued 4 years ago, keeping this recommendation open would not be purposeful. A follow-on review may be in order.
Department of the Navy The Secretary of the Navy should direct the Commander, NAVSEA, to ensure that shipyards: (1) perform the required physical inventories; and (2) properly identify, analyze, and dispose of excess shop-store materiel.
Closed – Implemented
The Navy has materiel management improvements underway, but they are not specifically responsive to the recommendations. Since the GAO report was issued 4 years ago, keeping this recommendation open would not be purposeful. A follow-on review may be in order.
Department of the Navy The Secretary of the Navy should direct the Commander, NAVSEA, to set organizational goals for each shipyard that address the efficiency and effectiveness of materiel management activities.
Closed – Implemented
Performance goals were detailed in February 1988 guidance on shipyard materiel policies. Each shipyard completed operation plans which satisfactorily addressed materiel management and were in compliance with NAVSEA plans.
Department of the Navy The Secretary of the Navy should direct the Commander, NAVSEA, to closely monitor the shipyards' implementation of any changes in guidance concerning physical inventories and excess materiel.
Closed – Implemented
NAVSEA plans to monitor shipyard compliance with revised policies by setting up a reporting system. Semiannual internal reporting to NAVSEA will start in the last quarter of fiscal year 1990. Since this is 4 years after the issuance of the GAO report, keeping this recommendation open would not be purposeful. A follow-on review may be in order.
Department of the Navy The Secretary of the Navy should direct the Commander, NAVSEA, to require that shipyards include appropriate standards in the performance appraisals of shipyard employees responsible for materiel management activities and hold them accountable for meeting the standards.
Closed – Implemented
On October 6, 1988, NAVSEA directed shipyards to use Shipyard Material Policies when establishing performance goals for individual employees under the performance appraisal system.

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Topics

Inventory controlLogisticsNaval facilitiesPlanningProperty and supply managementRecords managementShipyardsInventoriesMilitary materielMilitary forces