Answer. Proceurement of nonstandard materials are not entered into until after the requisition has been researched for possible substitution of standard items. Substitutions are made on out-bound issue invoices based on stock position with the view of minimizing procurements and redistribution action. All nonstandard items requested for depot maintenance are researched for possible substitution of standard items before procurement. 23. Substitution for nonstandard material Question. Who determines what type of shipping is done, and when? Answer. The dopot's Traffic Branch determines the method of shipment to be utilized to meet the required deadline delivery date. The mode of transportation is selected from: Rail freight, motor freight, rail express, parcel post, air parcel post, air freight, or military air transport. High priority shipments are made immediately upon receipt in the Traffic Branch. Low priority or routine shipments are consolidated into carload and truckload lots. Material is held for consolidated not to exceed 10 days, to develop a minimum of 25,000 to 30,000 pounds loads, in the interest of saving transportation costs to the Government. 24. Determination of shipping method Question. On what basis are freight costs determined? The basis of freight costs are established in the regular commercial published freight tariffs, on file in the Interstate Commerce Commission office, or in the event that a commercial carrier serving the depot has established a section 22 quotation as permitted under part I of the Interstate Commerce Commission Act, those rates which are less than commercial are used. In every instance, shipments are thoroughly screened to obtain the lowest cost to the Government, in keeping with the deadline delivery date required. Material on a high priority with a long deadline delivery date is consolidated and shipped the cheapest way provided the deadline delivery date can be met. 25. Basis for determining freight costs Question. Do you have a policy regarding using various modes of transportation aside from the question of costs? Answer. Yes. The policy is set by the Assistant Chief of the Bureau of Supplies and Accounts (for transportation) and is outlined in part I of the Navy Shipping Guide, NavSandA Publication No. 6. Briefly, that policy is as follows: (a) Any shipment 1,000,000 pounds or over-mode determine by BuSandA. (b) Any shipment under 1,000,000 pounds—mode determined by Navy Central Freight Control Office. (c) Any shipment under 10,000 pounds-Officer in charge, Traffic Branch makes determination. (d) Exception to above when storage-in-transit privileges are involved officer in charge, Traffic Branch may select mode up to two carloads. Exceeding two carloads, mode is designated by Navy Central Freight Control Office. (e) Navy policy is to make an equal distribution of shipments to all common carriers serving this depot. This is being done. 26. Policy regarding using various modes of transportation Question. What are the current results of the beneficial suggestion and methods improvement programs? Answer. (a) The methods improvement program since its inception in August 1951 has produced the following results: 614 proposals for improvement have been made, 270 recommendations have been approved, 226 recommendations have been rejected, 118 proposals are being investigated, 2,082 employees have been indoctrinated in the program. (b) The beneficial suggestion program has been increased as reflected by the following comparative figures for 1951 and 1952 to 1 August: 1951 suggestions submitted, 282; awards, 97; paid, $5,527.50. 1952 suggestions submitted, 428; awards, 169; paid, $6,785. Estimated annual savings: (1951) $148,064.17, (1952) $184,554.10. 27. Beneficial suggestion and methods improvement programs Participation in savings bonds.-In May of 1951, NSD Clearfield had 62 percent participation in the purchase of savings bonds and stood eighth place among the 31 12ND activities. Admiral Gillilan suggested to several persons that NSD should be able to attain the Minute-Man Award. Industrial Relations appointed bond-promotion representatives throughout the depot and Public Information arranged for publicity. The drive was announced to the depot June 1, 1951, and was to run for 5 weeks. On June 6, 1951, Mr. C. A. Mead, head of the Treasury Department's Payroll Deduction Bond System, presented a plaque to Admiral Gillilan for having reached the highest mark in bond participation of any major defense installation in Utah (62 percent). In the Seagull of July 13, 1951, it was announced that the depot had achieved 90 percent participation. On September 5, 1951, Georgia Neese Clark, Treasurer of the United States, presented the Minute-Man flag to Admiral Gillilan. We had 90.5 percent participation. Minute-Man lithographs were framed and given to organizational components who had achieved 90 percent. Thermometers were distributed, showing participation of various departments, divisions, and branches. All new employees were encouraged to participate at the time of hire. By the end of March 1952, we had attained 100 percent. On April 10, 1952, Mr. Vernon L. Clark, National Director, United States Savings Bond Division, Treasury Department, presented a flag designed by the depot, acknowledging our 100 percent participation. Since the end of World War II, NSD Clearfield was the first activity with more than 3,000 employees to attain the goal of 100 percent. 28. Savings bond participation Report of progress in safety during the past year. For the past 5 years the depot has earned the Secretary of the Navy award for achievement in safety. Frequency rate for 1952 to date is 1.57-the lowest in the history of the depot. Fifteen departments received safety plaques for 1,000 day no-lost-time-accident records. (Over 6,500,000 man-hours.) There have been no lost-time eye injuries since installation of eye program in 1947. A new hearing program is in progress which will be a great factor in medical and safety programs; 26 fiveman teams have been trained in first aid under the disaster program. First aid cases have dropped from an average of 103 per month to 65. 29. Progress in safety during the past year Question. What is the current authorized depot mission? Answer. Current authorized depot mission as set forth in Chief, BuSandA Circular Letter OL3/4059 A3/NT4-15 A2-6/1. The Naval Supply Depot, Clearfield, Ogden, Utah, will operate in an active status to: (a) Serve as reserve-stock point for the following types of naval material: General stores, dry provisions, 55-gallon steel drums, materials-handling equipment, special electrical fittings, aeronautical stores, photographic material, electronic material, ordnance material, submarine material, Bureau of Ships components and repair parts (cognizance symbol S), special training devices, material under the cognizance of Bureau of Naval Personnel, and medical stores. (b) Serve as reserve-stock point and distribution point for clothing (except women's clothing), and Bureau of Ships repair parts (cognizance symbol H). (c) Provide general stores to Naval Air Station, Denver; Naval Ordnance Plant, Pocatello; and other activities as directed. (d) Serve as storage and issue point for national stockpile materials; industrial equipment reserve and other industrial machinery and equipment in reserve storage, and the metal-cutting tool reserve program. (e) Assemble and store specialized components of advanced base component material as directed by the Chief, Bureau of Supplies and Accounts. (f) Identify, clean, and preserve for long-term storage materials on hand. Effect minor repairs to materials in store. (g) Provide maintenance and repair services to Naval Officers' Quarters, Fort Douglas, Salt Lake City, Utah. (h) Serve as minor relay center for such Western States as are assigned by the Twelfth Naval District. (i) Provides storage of materials for other Government departments on a reimbursement of cost basis, as authorized by the Chief, Bureau of Supplies and Accounts. (j) Provide nontemporary storage for household goods. (k) Conduct surplus property disposal functions for Army, Navy, and Air Force activities in the Salt Lake City area as directed by the Chief, Bureau of Supplies and Accounts. (1) Serve as a Navy personal effects distribution center. (m) Provides accounting functions (stores, cost, and appropriation), payroll services (civil and military), and savings-bond issuing services for the naval supply depot and activities as may be designated by Com-Twelve with concurrence of the Chief, Bureau of Supplies and Accounts. 30. Depot mission Status of reports and forms control programs: Reports control: Program installed September 1951: 334 Forms on record as of July 31, 1952. Number 95 in this category is prescribed by Bureau or other higher authority. 31. Reports and forms control programs Question. What has been accomplished in improving the depot's correspondence methods and procedures during the past 12 months? Answer. Major areas of improvement made during the fiscal year 1952 in correspondence methods and procedures are as follows: 1. Outgoing mail.-Eliminated unnecessary checking; improved processing of documents; eliminated unnecessary file copies-estimated savings-$1,055.0 annually. 2. Incoming mail.—Improved methods sorting ships invoices; routing, indexi and delivery services; revised route sheet; improved messenger service; elin- ! inated all but the minimum requirement in time-stamping mail-estimated savings-$5,929.80 annually. 3. Internal practices.-Improved distribution of specifications; rearranged office layout; procured new labor-saving equipment (addressograph, letter openers); improved filing practice-estimated savings-$2,049.20 annually. 32. Refined correspondence procedures Question. What is the current status of the depot's records disposal program? Answer. 1. All records are disposed of in accordance with the schedule in BusandA Manual, Article 12202. 2. Shipments are made twice each year to the Naval Records Center; the last shipment consisting of 349 boxes was shipped in January 1952. 3. Temporary storage of noncurrent records is maintained in Storehouse D-9 under the custody of the administrative officer. 4. Departmental records representatives advise the Administrative Serv- 11 ices Department when records are to be stored in D-9; shredded or shipped to the Records Center. Administrative Services Department follows up to insure the disposition schedule is followed. 33. Records disposal program OGDEN EXHIBIT 3 REVIEW OF ARMY REPORTING SYSTEM IN SUPPLY AND PROCUREMENT-SUMMARY AND RECOMMENDATIONS, MAY 1951 DEPARTMENT OF THE ARMY OFFICE OF THE ASSISTANT SECRETARY Washington 25, D. C. Memorandum for: The Chief of Staff. Subject: Report on Survey of the Army Reporting System in the Supply Area. 1. The attached report has been prepared after a thorough survey of the present Army reporting system in supply and procurement, by a team headed by Mr. Harold Pearson, special consultant to the Secretary of the Army, who has had extensive business experience, particularly in merchandising. He estimates that implementation of the recommendations contained in the report will result in a saving of 1,750 civilian and military spaces and $7,000,000 annually at the present level of activity. The savings would be proportionately greater as activities increase. In addition, the following important aids to management may be expected to accrue: improved supervisory structures at all echelons, better control of inventories through the consistent use of stock level controls, improved statsitical controls of matériel being accumulated for mobilizations, more reliable figures on major items, closer merchandising attention to secondary items, and better management knowledge of the status of logistical programs. 2. It is desired that those recommendations with which you agree be impleated as rapidly as practicable; that, on those recommendations with which you disagree in whole or in part, the interested agencies and Mr. Pearson jointly onduct further exploration and study (testing by pilot operations, where deArable) and, if unable to reconcile viewpoints by 31 July 1951, submit separately to this office their respective recommendations; that a schedule of implementation also be furnished by 31 July 1951, specifying the staff agency responsible for implementing each of the recommendations on which there is agreement and the dates of expected partial or full implementation; and that a progress report be forwarded quarterly thereafter until the project is completed. Mr. l'earson will be available to any staff agency which may have need of his services in connection with this project. 3. As soon as tangible progress has been accomplished, it is desired that the bends of such staff agencies as you may designate make a presentation to the Army Policy Council, setting forth the problems and progress toward solution. This presentation will be scheduled not later than August 1951. Introduction. CONTENTS KARL R. BENDETSEN, Assistant Secretary of the Army. Evaluation of existing supply records and reports--preface. Supply reporting in continental armies (ZI). Technical services: Quartermaster. Ordnance. Chemical. Congestion of supply reporting facilities-all technical services surveyed. Evaluation of Department of the Army facilities for supervising the Army reporting system in supply and procurement: Assistant Chief of Staff, G-4, Logistics. Comptroller of the Armry. Summary of conclusions: Adequacy, reliability, and timeliness of data, and efficiency and economy of processes. Summary of recommendations: Part I. Part II. 1. Memorandum, Secretary of the Army to the Comptroller of the Army, subject: "Special Review of Statistical Reporting in conjunction with surveys of three Technical Services," dated 12 October 1950. 25062-53-43 Mission 2. The purpose of the study was to analyze and evaluate the practices and systems employed in developing, maintaining, transmitting, analyzing, and presenting statistical data required for the supply and procurement activity; to define the strengths and weaknesses of existing practices and resources; to outline the characteristics of an improved system; and to indicate the specific steps which need to be taken in order to achieve that objective. 3. The supply and procurement operations involved included but were not limited to maintenance of inventory records (pricewise and quantitywise); reporting stock status, usage, and replacement factors; current procurement objectives; work measurement; costs; modification of equipment; utilization of resources other than money and manpower; performance under various types of contracts; production schedules delivery schedules; and production expediting and inspection actions. 4. The major statistical activities involved included but were not limited to recording of basic data; statistical tabulation of basic data; statistical and progress reports; analyses and presentation of program objectives, accomplishments, and deficiencies at all levels; and use of statistics by management. 5. The study identifies and describes briefly the planning, programing, scheduling, and control processes and organization employed in each stage of the supply and procurement operation at each level. The primary purpose of the study, however, was not to appraise and improve those processes, but to appraise and define the related statistical reporting and analysis services required. Accordingly, the study analyzes and appraises the records, practices, techniques, methods, equipment, personnel, other resources, organization, and total systems employed in the statistical reporting and analysis activities. Procedure 6. A sampling technique was employed, wherein fifteen test items were selected as typifying different procedures in three Technical Services-Quartermaster, Ordnance, and Chemical, and the records and facilities of reporting of these test items were studied at all related Army levels-i. e., Department of the Army and selected class II procurement offices, stock control offices, depots, arsenals, Overseas Supply Division (G-4), and Air Force (on cross-service matters); also in an Army Headquarters and in selected Troop Units in Posts, Camps, and Stations, and National Guard and Organized Reserve Corps Units. 7. At each installation surveyed, the supervisory personnel and segments of the working staffs were interviewed; organization and flow-of-work charts were obtained or drawn; and related records and reports were examined by reference to original documents and to Stock on Hand, where applicable. 8. Three teams of three men each devoted ten weeks to the field fact-findin phase of the review. A total of eighty-two separate surveys were conducted, and the results summarized herein. All survey reports are thoroughly documented, and all details in support of this report are available for analysis in the Management Division, Office, Comptroller of the Army. Preface EVALUATION OF EXISTING SUPPLY RECORDS AND REPORTS 9. The basic concept of the Army Supply Reporting System requires the maintenance of a perpetual inventory of each one of the thousands of items carried in the Supply System. This requires scores of millions of stock accounting entries in order to record each transaction and strike off balances on hand, by items, by condition, and by accounts. The same basic records are maintained for issues valued at one cent as for those valued at many thousands of dollars. This procedure is based upon (1) the implied audit requirement of item accountability, (2) the necessity of reporting historical data for guidance of remote centralized stock management, (3) the practice of editing requisitions for stock availability before they are sent to warehouses for filling, and (4) the assumed necessity for keeping stock balances by accounts. 10. The organizational structures of the Supply System in two of the Technical Services surveyed are based upon the principles of almost complete centralization of responsibility for Supply Management. In the third Technical Service surveyed, the principles of almost complete decentralization are applied. Volumes of reports on current stock conditions and historical background flow to designated stock-control points, from which requirements are computed and procurement actions initiated. These points are also the central clearinghouses for handling extracts of items which the mission depot cannot fill, and leveling stocks 1 |