Indirect labor and material operations codes e the same as corresponding maintenance erhead codes, except that provision is made the separation of driver and operator sts from the costs of all other operations rsonnel. Thus coded are (1) training and fety personnel, excluding personnel from e training or safety office, and including scellaneous consumable material, (2) standtime of drivers and operators, (3) official siness of drivers and operators, (4) miscelneous time allowed for drivers and operators, O driver-operator servicing time, (6) driveerator training time, and (7) leave of drivers d operators. However, many of these items e used in a report that is in itself optional.

ork Center Codes

These work center codes are 2-digit codes at provide a means for identifying particular ork area or shop and for accumulating hours orked in a specific area, so that the actual urs may be compared to standard hours, determine operational effectiveness of the ork center. The code also shows the actual nount of money expended by any one work enter. Use of this code makes it possible r management to determine manpower utization, by comparing actual hours worked to ailable manhours. Performance accomplishent is also indicated when actual hours are mpared to standard hours. The following ocks of numbers are assigned for transortation work center codes:

shops. These codes are normally used to designate whether work is generated by scheduled preventive maintenance inspections, or by trouble reports made by drivers and operators.

The effectiveness of the Preventive Maintenance Program may be determined by an analysis of the work load in these codes. For example, excessive trouble reports may be an indication that the Preventive Maintenance Inspections are not disclosing mechanical conditions in need of correction. It could also indicate improper care and handling of the vehicle by the driver.

Work may be generated through regular preventive maintenance inspections, driver or operator reports; interim repairs or wrecks; or by requests for repairs by ships or other activities. Usually, repair work is scheduled as a result of periodic inspections of equipment. The Preventive Maintenance (PM) program is broken down into A, B, and C inspections and servicing. In this way, it is believed that operating equipment can best be kept in the best possible operating condition with a minimum of costly repair jobs. By this means, each piece of equipment is scheduled for regular inspection and servicing.

Interim repairs caused by wrecks and breakdowns requiring road service place an additional work load upon the repair facility.

Work requests in the category of interim repairs may be made by other activities as a one-time request for repairs or service, or they may be accomplished if the equipment is scheduled under the Preventive Maintenance Program.

Labor Class Codes

Labor class codes identify the type or class of work performed by an employee within a maintenance division. Examples are, work performed on equipment assigned to the activity, work done for outside customers (other activities), chauffeurs, drivers, operators of construction equipment, and railroad train

crews.

Repair Codes

Stock repair codes will be used when the material in store is repaired under the 69000 series of expenditure accounts.

REPORTING PROCEDURES

Cost data can be of value only when they are analyzed and submitted in report form for interpretation in terms of economy and efficiency of operation. To evaluate performance and to further the effectiveness of transportation maintenance, a series of reports is prepared by the accountable fiscal office from the cost records assembled there.

These prepared reports fall into the general categories of use. These are (1) reports for use at division level, and (2) reports for use at division and station management level.

Reports for use at division level are for local use only and are intended as an aid in measuring performance in the repair shops. They are as follows:

1. Labor by equipment maintenance and overhead code.

2. Labor by work center and overhead code.

3. Labor and material by work generator code.

4. Labor and material by equipment maintenance, overhead, and operations code.

Reports for use at division and station management level are prepared from the information submitted in the report listed as item 4, above. These reports are as follows:

1. Transportation Maintenance and Operations Cost Report, NAVDOCKS 2200.

2. Transportation Maintenance Overhead Analysis, NAVDOCKS 2057.

Overhead

3. Transportation Operations Analysis, NAVDOCKS 2057A. (The use of this form at an activity is optional.)

4. Transportation Maintenance Manpower Cost Analysis, NAVDOCKS 2680.

CEC officers on active duty at Navy activities can refer to Transportation Equipment Cost Accounting Handbook NAVEXOS P-1502, for information on frequency of submission and use of these reports.

The number of units of transportation equipment, and the extent of maintenance shop facilities, are taken into account in establishing reporting requirements. Limited reporting is required of activities that have less than 50 units of transportation equipment and no transportation shop facility. Under these circumstances, the activity submits an annual Transportation Maintenance and Operations Cost

Report (NAVDOCKS 2200). Complete reporting is required of activities that have more tha 50 units of transportation equipment and ar provided with a maintenance shop facility The reporting procedure under these circum stances will include the preparation and sub mission of all of the reports above under th two general categories. The reports are pre pared quarterly and annually, as required and locally as determined.

TABULATED TRANSPORTATION

COST REPORTS

Standard forms are provided for tabulatin Transportation Maintenance Cost Reports These forms show actual and standard hours charges for direct labor and for materials and overhead in terms of time and cost. E referring to figure 4-2 in the following sectio of the text, you can see the data appearin on the tabulated cost reports are summarize on the analysis reports.

The central item appearing in all of th tabulated reports is that of labor. Labor i reported in relation to maintenance and over head and to work center and overhead. Labo and material are reported in relation to wor generator codes and to equipment maintenance maintenance overhead, and operations.

The reports are prepared on standard sto EAM (Electronic Accounting Machine) pape NavDocks Form 1953 or NavDocks Form 195 We will briefly state the purpose and discus the preparation of each of the tabulated report

LABOR BY EQUIPMENT MAINTENANC AND OVERHEAD CODE (NAVDOCKS FOR 1953 OR 1957).- Local requirements will de termine the frequency of preparation of th report which is used by management to determi (a) wrong coding, (b) excessive actual hour over standard hours, and (c) excessive ove head hours and amount. This report indicate the extent of need for corrective action stay within operating standards.

The report is prepared from labor i cards. The report will show:

1. Equipment maintenance and
codes

2. Labor class code

3. Standard hours

4. Actual hours

The report is prepared on either NavDocks Form 1953 or 1957, depending on the accounting machines available. In preparing the report, with tabulating machines, the cost cards are sorted by equipment maintenance, overhead, or operations codes, and then by labor class codes.

MANAGEMENT COST CONTROL REPORTS

These are for use at division and station management levels. The reports are analytical in nature and are for the purpose of detecting trends in operational and maintenance costs in relation to manpower, overhead, and material. The information provided by the reports enables management at the local and bureau level to evaluate performance to the end that more efficient maintenance and operations functions may result.

Analysis of Transportation Maintenance Overhead

This report form, shown in figure 4-2, provides an analysis of all overhead expenses of the transportation maintenance shop. The report is prepared quarterly by each activity having more than 50 units of transportation equipment, and operating a maintenance shop. The report has proved to be a sound management tool, as it indicates excessive overhead costs with relation to direct labor costs. Data from this report are used to compute the overhead to be prorated against the cost of each maintenance code on NavDocks 2200. The information from this report makes possible the development of standard and actual shop labor rates. The shop effectiveness in controlling costs can be measured by comparing the shop control rate with local commercial rates. This comparison will indicate whether or not the shop is being operated efficiently, at a cost equal to or lower than local commercial rates.

Analysis of Transportation Operations Overhead

Overhead labor and certain direct labor expenses resulting from the operation of a motor pool or service station may be reported on NavDocks form 2057A; however, this report is optional. It can be used to analy ze operational

overhead, and is of assistance in the preparation of the Transportation Maintenance and Operations Cost Report, NavDocks 2200, shown in figure 4-3.

The analysis shows transportation fuel costs by labor class codes, operations and overhead labor by labor class codes, operations and overhead material. It also shows the total percentage of operations overhead to fuel costs by the percentage applicable to the dispatcher and the operations service station attendant.

The basic information for the preparation of the report may be obtained from NavDocks 1953, NavDocks 1957, or the data reported on standard EAM paper.

Maintenance and Operations Costs

Reports made on this form provide complete information on maintenance and operations costs for each equipment maintenance code. The average cost is arrived at in terms of 1000

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miles, or 100 hours of operation, whicheve is appropriate. Management uses this repor to determine the rise or fall in costs for eac type of equipment. When the report indicate that costs of a certain type of equipment ar out of line, a detailed analysis of the cause may be prepared from the data contained in NavDocks Form 1953, NavDocks Form 1957 or the data reported on standard stock EAM paper. The report is prepared quarterly. A the close of the fiscal year, the quarterl reports are consolidated into an annual repor for submission to BuDocks via the DPWO

Maintenance Manpower and Cost Analysis

This report provides a simple and effectiv method for evaluating data reported on Nav Docks Form 2200. Manhours and costs expended in maintaining automotive equipment are com pared against standards for labor and costs contained in automotive manpower input and

st standards. Standards tables have been veloped from detailed study of Navy Maintece manpower and cost performance. (The C officer on active duty will find these ndards in NAVEXOS P-1502.)

ANALYSIS OF REPORTS

Many important changes in concept and plication have taken place since the inception the Transportation Cost Control Program. erefore, the program is subjected to periodic mparative analysis in order to evaluate ogram status and to control maintenance costs. anagement is enabled to take corrective action en it has a true evaluation of the deviation Om standard costs. Corrective action must in line with current policy, and within the ope of availability of funds.

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Automotive and equipment maintenance programs are subject to official inspections conducted by the Navy Inspector General and the Shore Establishment Survey Board. Resulting reports may may be critical or commendatory. As a result, recommendations usually follow which are in close conformance with Departmental policies.

District Public Works Offices prepare summary punched cards for those activities not supported by tabulating equipment. Tabulated summary reports will then be prepared on NavDocks Form 1953 or on standard EAM paper. A complete deck of punched cards and one copy of the tabulated report is forwarded to BuDocks. When tabulating equipment is not available, the District Public Works Office will forward to the Bureau of Yards and Docks a copy of each annual report and any punched card and tabulated reports received.