Management of Naval Supply Center Labor Resources Can Be Improved

GAO reviewed the effectiveness of labor resource management at seven naval supply centers.

GAO found that opportunities exist for better labor resource management at the centers. Between fiscal years 1980 and 1984, annual civilian labor costs increased from $152 to $259 million. In the late 1960's and early 1970's, Department of Defense (DOD) activities used work-measurement techniques as part of a formal program, reporting annual cost savings of $121 million. However, by 1974, the Navy began to deemphasize work measurement. GAO found that the Naval Supply Systems Command (NAVSUP) does not have an effective work-measurement system for the supply centers or an overall plan to develop and implement one. Instead, the supply centers rely on a management information system that is not effective in evaluating the efficiency of the labor force. Some supply centers have individual ongoing projects to improve work measurement, but they are limited in scope. In 1985, NAVSUP initiated a project which includes an industrial engineering survey to determine the most efficient material and work processes flow, develop standards to control the movement of materials, and track work processes. In addition, NAVSUP initiated a physical distribution resourcing plan to determine the cost of physical distribution work at a supply center, project work loads, and determine a labor rate for work loads to measure performance against. The Navy planned to expand the use of the rate system at supply centers in October 1985.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: John Landicho Team: General Accounting Office: National Security and International Affairs Division Phone: (202) 275-6504