INCREASED SUPPLY NECESSITATED BY Extraordinary supply and logistic problems are created as a result of stocking three designations of track assemblies, identical except for the center guide, which problems could be eliminated if the juxtaposing of vehicle roadwheels were standardized. Supply Manual TB ORD 562, page 42 (Exhibit 12), describes track assemblies T84, T84E1, and T84E2 as differing from each other only in shape and dimension of the center guide. This variation precludes interchangeability between the several using vehicles because the pairs of vehicle roadwheels are juxtaposed at different distances (Exhibit 13). Earl A. Perry, foreman, Vehicle Rebuild Branch, Shops Supply Division, said that if manufacturers would standardize the juxtaposition of vehicle roadwheels only one type assembly need be procured. Capt. Robert E. Smith, chief, Shops Supply Division, said that his unit in Korea modified roadwheels of track-laying vehicles to accommodate available track assemblies with different type center guides than specified. He said that the modified vehicles performed as well as originally intended. The vehicles that use these track assemblies follow: 1/ The commanding officer said that he knows of no logistic requirements for juxtaposing vehicle roadwheels differently by the several manufacturers. 1/ Department of the Army Supply Manual TB ORD 562, pages 3, 4, & 5. EXCESSIVE PROCUREMENT Failure to Follow Procedure Requisitioning of track assemblies from Ordnance stock without first determining adequacy of supplies on hand in Field Service stock 1/ has resulted in an overprocurement costing more than $230,700, including freight. On August 10, 1954, 2,100 track-laying vehicle track assemblies (stock number G226-70-72236) were requisitioned from Pueblo Ordnance Depot, Pueblo, Colorado, to fulfill requirements for a rebuild program on 100 each M47 Tanks. 2/ Jack E. Walters, chief, Storekeeping Branch, Shops Supply Division, said that sometime between August 10 and September 3, 1954, he found many more than 2,100 identical assemblies in Field Service stock on the depot, including 528 that had been requisitioned in February 1954 for the same program and excessed to Field Service two days after receipt. He said that on September 3, 1954, as a result of his discovery, the 2,100 assemblies were ordered from Field Service and on September 8, a letter was written to Pueblo Ordnance Depot cancelling the August 10, 1954, requisition. On September 14 a shipment of 70 assemblies was received from Pueblo Ordnance Depot and the next day a teletype was sent again cancelling the requisition. Despite the request for cancellation, a total of 1,040 more assemblies were received between September 15 and 28, 1954, making a total of 1,110 received in addition to the 528 received in February 1954 from Pueblo Ordnance Depot. Information was obtained from Rock Island Arsenal, Rock Island, Illinois, where accountability for Field Service stocks was maintained 3/, that the available stock of this item at Tooele Ordnance Depot, on August 10, 1954, was 13,353. The procurement of 1,110 assemblies from Pueblo Ordnance Depot, at a cost of $224,220 (excluding freight), was therefore unnecessary. / Keith Bringhurst, chief, Property Control 1/ Keith Bringhurst, chief, Property Control and Requisitioning Branch, Shops Supply Division, said that normal procedure is to check Field Service stocks. 2/ The number of M7 tanks for rebuild was increased to 109 after the program was started and track assemblies requisitioned and authority was subsequently received to include in the program the rebuild of 20 M6 tanks which require the same type track assembly. 3/ Accountability has since been transferred to Pueblo Ordnance Depot. / Not included is $106,656 acquisition cost and $3,123.36 freight charges for the 528 assemblies requisitioned in February 1954 as records showing stock balances for that period were not available. However, records show that there was an available balance of 1,109 assemblies on hand in Field Service stock on March 31, 1954, indicating the probability that procurement of the 528 in February 1954 was also unnecessary. and Requisitioning Branch, Shops Supply Division, and 0. P. Miller, deputy chief, Shops Supply Division, acknowledged that an excess has resulted and that surplus assemblies would be declared excess at the completion of the program. Based on information supplied by the Transportation Division the computed cost of shipping the 1,110 unneeded assemblies from the Pueblo Ordnance Depot was 6,566. Unrealistic Forecasting Fear of stopping or delaying production and use of inadequate catalogue guide data causes unrealistic forecasting resulting in overprocurement and creation of excesses. The Shops Supply Division procures and supplies parts for the Combined Maintenance Division based on program forecasts by the latter division. Records applicable to two programs, selected by the chief, Property Control and Requisitioning Branch, as typical of new programs, disclosed that 73 percent and 47 percent of the line items of repair parts forecasted were not used, thereby creating excesses. (Exhibit 14) Maj. J. R. Kinsinger, chief, Shops Supply Division 1/ and the chief, Property Control and Requisitioning Branch, admitted the tendency to forecast beyond requirements. They said that when actual experience during the program proves that the forecast is high and it is not possible to stop recurring deliveries, the items become excess or surplus property. Lt. Col. Albert W. Rhoades, assistant for supply operations, said that it is imperative that production lines be continuously operated. He said, as did Major Kinsinger, Captain Smith, and the chief, Property Control and Requisitioning Branch, that fear of stopping production lines and the fact that catalog guides do not give consideration to climate, soil conditions, maintenance care, and varied storage conditions, cause overforecasting. The chief, Property Control and Requisitioning Branch, said that he would use statistical information similar to that shown in Exhibit 1 to encourage improvement in forecasting. Captain Smith said that he hopcd recent experience would result in developing more realistic repair parts mortality tables and that, if possible, an Ordnance Corps current statistical record of experience in maintenance care, climate and soil conditions, and other factors vital to forecasting should be provided. The commanding officer said that the Ordnance Tank Automotive Center, Detroit, Michigan, has been cognizant of, and is working on, the mortality experience problem and the need for improved forecasting. He said that the depot has been submitting reports on mortality of parts for the past two years. 1/ Succeeded by Capt. Robert E. Smith in February 1955. Unless otherwise stated, all references to chief, Shops Supply Division, refer to Captain Smith. 75318 0-6115 UNREALISTIC PRICES The use of noncurrent pricing data in the rebuild programs results in unrealistic estimates, cost reports, and inventory values. Comparison of prices shown on stock record cards in Shops Supply Division, (generally taken from pricing guides) with those shown on shipping documents show a wide disparity (Exhibit 15). The former prices are used in estimating parts costs for rebuild programs, determining economical reparability, and computing costs of completed programs. Orville Mooberry, comptroller, said that shipping document prices are current and are those used by supplying depots in transferring accountability. The commanding officer expressed concern over the disparity and, in referring to the second and fourth items in Exhibit 15, said that accuracy in cost reporting was not possible under the circumstances. EXCESS EXPENDABLE PROPERTY A high percentage of unreported excess expendable property was noted, particularly in Ordnance steel stocks. This resulted from excessive requests by using activities, discontinuing requirements, and rescheduling or discontinuing activities. An analysis was made of expendable property stock record card balances maintained by the Depot Property Branch, by application of SR 711-15-5 dated January 15, 1954. 1 A five percent random selection of the stock record cards, projected on a 100 percent basis, shows: There were excesses also noted in the Transportation, Engineer, and Quartermaster services, however, percentagewise they were negligible. E. A. Dalton, depot property officer, said that existing excesses were the result of: (1) requests by using activities in excess of actual needs; (2) discontinuing of a requirement after issue experience indicated a need; and (3) rescheduling or discontinuing mission activities. He said that the selection of stock record cards, although made on an impartial basis, could greatly influence projection results and for that reason he could not agree that the projected excesses were representative. He said that he believed the regulations covering reporting of excess stock should not be considered a mandatory rule but rather as a guide and that he would continue using current practices to report excess stocks. He said that he hoped through cooperation with the using activities to reduce excesses to a minimum. Because of the indicated high value of excess steel, a 100 percent 1/ Consideration was given to standby and retention levels and "due in" and "due out" quantities. 2/ Represents only one line item. 3/ Inventory values also include nonexpendable property. |