NCJ Number
66095
Date Published
1978
Length
36 pages
Annotation
RESULTS AND RECOMMENDATIONS ARE REPORTED FROM A GENERAL ACCOUNTING OFFICE (GAO) INVESTIGATION OF THE MANAGEMENT OF AIRCRAFT CARRIER INVENTORIES.
Abstract
DURING A RECENT 2-YEAR PERIOD, ATLANTIC AND PACIFIC FLEET AIRCRAFT CARRIERS REPORTED INVENTORY EXCESSES AND SHORTAGES AVERAGING $154 MILLION AND $216 MILLION, RESPECTIVELY. GAO DETERMINED THAT THESE CONDITIONS WERE CAUSED BY LACK OF ADEQUATE MANAGEMENT CONTROLS AND SUPPLY DISCIPLINE WHICH WOULD PREVENT OVERORDERING, UNTIMELY AND INACCURATE UPDATING OF INVENTORY RECORDS, FAILURE TO PROMPTLY CANCEL OR REDISTRIBUTE EXCESS STOCKS, FAILURE TO ORDER NEEDED STOCKS ON A TIMELY AND ACCURATE BASIS, UNTIMELY AND INACCURATE UPDATING OF INVENTORY ALLOWANCES IN RESPONSE TO CHANGES IN USAGE, AND INADEQUATE FUNDING CONTROLS AND VISIBILITY OVER AIRCRAFT CARRIER INVENTORIES AT HIGHER MANAGEMENT LEVELS. THE NAVY CAN SAVE AN ESTIMATED $114.8 MILLION ON FUTURE PROCUREMENT AND REPAIR OF AVIATION PARTS OF AIRCRAFT CARRIERS OVER AN 18-MONTH PERIOD. ALSO, THE LARGE INVENTORY EXCESSES AND SHORTAGES CAN BE SUBSTANTIALLY LESSENED. THIS CAN BE ACCOMPLISHED BY IMPROVING SHIPBOARD MANAGEMENT TO ENSURE MORE STRINGENT REQUISITIONING CONTROLS, MORE TIMELY AND ACCURATE UPDATING OF INVENTORY RECORDS, AND MORE TIMELY CANCELLATION OR REDISTRIBUTION OF EXCESS STOCKS. FURTHER, THE ACCURATE UPDATING OF CARRIER INVENTORY ALLOWANCES IN RESPONSE TO CHANGES IN USAGE COULD SAVE AN ESTIMATED $26.4 MILLION. IMPROVING CONTROLS AND VISIBILITY OVER AIRCRAFT CARRIER INVENTORIES AT HIGHER MANAGEMENT LEVELS COULD ALSO RESULT IN LARGE SAVINGS. THE NAVY AND THE DEPARTMENT OF DEFENSE AGREED WITH GAO'S FINDINGS AND CORRECTIVE ACTIONS. REFORMS ALREADY TAKEN BY THE NAVY WILL RESULT IN PROCUREMENT AND REPAIR COST SAVINGS TOTALING $65.8 MILLION. (AUTHOR ABSTRACT MODIFIED--RCB)