Navy Supply: Improved Material Management Can Reduce Shipyard Costs (Chapter Report, 07/27/94, GAO/NSIAD-94-181). Material management practices at naval shipyards have improved since GAO's last review in 1985, but further improvements are possible. The shipyards' material requirements determination process still is not working as intended. As a result, shipyards ordered more material than was needed to repair ships and the shipyards had unused material on hand after the repairs were completed. The quantity of unused material exceeded the Navy goal and had to be written off as a loss when it was unneeded elsewhere. In fiscal years 1991 through 1993, the shipyards wrote off $88 million in losses for unused material, including $56 million in items sent to disposal. Excess material orders resulted from several factors, including the lack of analysis into reasons for unused material and the absence of historical material usage data to help determine requirements. Also, because adequate management controls were not in place, the shipyards maintained inventories of material that went unrecorded on official inventory records, issued more shop store material than was needed for repairs, and did not ensure compliance with policies to eliminate excess inventories and protect material from loss. --------------------------- Indexing Terms ----------------------------- REPORTNUM: NSIAD-94-181 TITLE: Navy Supply: Improved Material Management Can Reduce Shipyard Costs DATE: 07/27/94 SUBJECT: Military vessels Property and supply management Shipyards Management information systems Inventory control Military inventories Inventory control systems Military cost control Naval supplies Repair costs IDENTIFIER: Defense Business Operations Fund DOD Wholesale Supply System NAVSEA Advanced Industrial Management Program ************************************************************************ We regret that the full text of this item is presently unavailable. See the GAO FAQ - Section 2.0 for printed copy ordering information. The FAQ is automatically retrieved with all WAIS search results or can be obtained by sending e-mail to: [email protected]