Navy Can Improve Management of Shipyard Labor Resources Through Better Work Measurement Practices

Highlights

GAO reviewed the adequacy of the Navy shipyard work measurement and cost accounting systems.

Recommendations

Recommendations for Executive Action

Agency Affected	Recommendation	Status
Department of the Navy	The Secretary of the Navy should direct the Commander, NAVSEA, to: (1) establish an improved work measurement system by ensuring that labor standards are properly set, supported, and used in calculating "should cost" allowances; (2) identify and provide the staff required to effectively administer work measurement programs and to do work measurement studies; and (3) develop training policies and plans which improve the skills required of those who administer, develop, and upgrade shipyard labor standards.	Closed – Implemented Numerous initiatives were taken to improve work planning and execution. They include: (1) issuance of work sampling policies; (2) increasing industrial engineering resources; and (3) providing work measurement training.
Department of the Navy	The Secretary of the Navy should direct the Commander, NAVSEA, to implement stronger controls to validate the accuracy of labor-charging practices by making sure that labor checks are done more frequently, are done in the prescribed format, and are used to help management correct problems, such as those relating to rework and lost time.	Closed – Implemented NAVSEAINST 7510.2 was issued to provide policy and guidance on labor verification. It calls for labor checks, internal reviews, and reporting to NAVSEA.
Department of the Navy	The Secretary of the Navy should direct the Commander, NAVSEA, to set organizational goals and objectives which address the quality of work measurement activities, and include these activities in designing and incorporating mandatory entries on performance evaluations to measure the effectiveness of shipyard employees involved.	Closed – Implemented The Department of Defense (DOD) agreed that organizational goals and objectives are needed, but does not agree that mandatory performance elements are required. GAO continues to believe that those who administer, develop, and upgrade labor standards should be held accountable for their performance.

Full Report

Full Report (36 pages)

Media Inquiries

Sarah Kaczmarek

Managing Director

Office of Public Affairs

media@gao.gov

Public Inquiries

Topics

Government Operations

AccountabilityAttendance recordsCost accountingFederal agency accounting systemsLabor costsMilitary cost controlNaval personnelPerformance measuresShipyardsWork measurement