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Defense Inventory: Improved Management Framework Needed to Guide Navy Best Practice Initiatives

NSIAD-00-1 Published: Oct 21, 1999. Publicly Released: Oct 21, 1999.
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Highlights

Pursuant to a legislative requirement, GAO provided information on the Navy's best practices implementation schedule for the acquisition and distribution of secondary inventory items, which the Navy submitted to Congress on June 16, 1999, focusing on: (1) the extent to which the schedule responds to the provisions of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999; and (2) identifying specific elements of a management framework needed for effective implementation and oversight of the Navy's best practice initiative.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense To provide a mechanism to improve the potential for successfully implementing the initiatives and measure results, the Secretary of Defense should direct the Secretary of the Navy to improve the management framework for implementing the 25 initiatives based on principles embodied in the Results Act. Specifically, the management framework should include direct links to top-level DOD goals and objectives, including objective and precise outcome measures related to reducing pipeline time, improving customer service, and reducing total inventory.
Closed – Implemented
In its third quarter fiscal year 2000 update to its best practices implementation schedule, the Navy included direct links to objectives in the Department of Defense Logistics Strategic Plan and specific information on outcome measures related to reducing total inventory and pipeline time and improving customer service. For some of the initiatives in the schedule, however, the update did not include information that could be used to periodically measure implementation progress and the overall impact the initiatives have on inventory levels and supply system responsiveness.
Department of Defense To provide a mechanism to improve the potential for successfully implementing the initiatives and measure results, the Secretary of Defense should direct the Secretary of the Navy to improve the management framework for implementing the 25 initiatives based on the principles embodied in the Results Act. Specifically, this management framework should include clearly defined initiative goals, quantifiable performance measures, implementation schedule milestones including specific implementation dates, and key issues and methodologies that will be used to periodically assess the overall impact the initiatives have achieved in reducing inventory levels while improving the responsiveness of the supply system to user needs.
Closed – Implemented
In its third 1uarter fiscal year 2000 semiannual update to the best practice initiatives implementation schedule, the Navy included more specific implementation milestone dates and quantifiable performance measures where possible. The Navy plans to continue periodically updating and refining the schedule as plans unfold over the five year life of the schedule.

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Topics

Best practicesEquipment repairsFederal property managementInventory control systemsLogisticsMilitary inventoriesNaval procurementPerformance measuresPrivate sector practicesSpare partsStrategic planning