The Navy Can Improve Material Management at Naval Shipyards

NSIAD-85-71: Published: May 6, 1985. Publicly Released: May 6, 1985.

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

GAO found that the naval shipyards do not effectively determine direct materiel requirements for future overhauls because: (1) complete and accurate usage data are not collected; and (2) historical usage information on prior overhauls is not analyzed. As a result, materiel shortages and surpluses reduce efficiency and increase costs of shipyard depot maintenance. Further, usage information is inaccurate because it includes unused materiel placed in unrecorded stockpiles instead of being returned to the proper inventory location. Usage information is also inaccurate because it does not include many items used during overhauls that the shipyards have manufactured. Furthermore, materiel planners do not have an adequate management information system. Instead of using the data analysis part of a Naval Sea Systems Command (NAVSEA) automated materiel requirements planning system, shipyards have continued to use ineffective local systems. As a result of ineffective planning, large amounts of unused materiel from prior overhauls have been accumulated. In addition, the shipyards have not performed required physical inventories of shop stores or effectively identified, analyzed, and disposed of excess materiel. Finally, because the shipyards have not been held accountable for implementing NAVSEA systems and procedures, or held their personnel accountable for implementing the procedures, previously identified materiel management problems remain unsolved.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: 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.

    Recommendation: 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.

    Agency Affected: Department of Defense: Department of the Navy

  2. Status: Closed - Implemented

    Comments: 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.

    Recommendation: 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.

    Agency Affected: Department of Defense: Department of the Navy

  3. Status: Closed - Implemented

    Comments: 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.

    Recommendation: 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.

    Agency Affected: Department of Defense: Department of the Navy

  4. Status: Closed - Implemented

    Comments: 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.

    Recommendation: 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.

    Agency Affected: Department of Defense: Department of the Navy

  5. Status: Closed - Implemented

    Comments: 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.

    Recommendation: 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.

    Agency Affected: Department of Defense: Department of the Navy

  6. Status: Closed - Implemented

    Comments: 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.

    Recommendation: 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.

    Agency Affected: Department of Defense: Department of the Navy

  7. Status: Closed - Implemented

    Comments: 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.

    Recommendation: 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.

    Agency Affected: Department of Defense: Department of the Navy

  8. Status: Closed - Implemented

    Comments: On October 6, 1988, NAVSEA directed shipyards to use Shipyard Material Policies when establishing performance goals for individual employees under the performance appraisal system.

    Recommendation: 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.

    Agency Affected: Department of Defense: Department of the Navy

 

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