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OCR for page 7
3
THE DEFENSE LOGISTICS E~IRO~NT
This chapter deals with the Defense Logistics Agency's (DLA)
organizational environment as a part of the Department of Defense (DOD).
In reviewing the DLA's role and relationship with other components of the
DOD, we found a number of doctrinal and policy issues that the agency
cannot be expected to resolve on its-own. We believe that these issues
need to be care-fully addressed because they affect both the DLA's ability
to modernize and the design decisions that will need to be made. Figure 1
shows the relative position of the DLA in the DOD organization, its
relationship with its customers, and its dependence on the Office of the
Secretary of Defense (OSD) for policy guidance.
The scope of the Logistics Systems Modernization Program (LSMP)
involves more than replacing obsolete automation systems and manual
methods. The Major Automated Information Systems Review Council (MAISRC)
has recognized this by stating that "additional action is needed to refine
the planning and focus of the longer term LSMP" (Memorandum from John R.
Quetsch, November 4, 1986, on file). The agency has responded by
undertaking a thorough analysis of its businesses and information needs in
order to develop its long-term plans and view of its future. We believe
that these efforts are commendable and necessary but that it is not
sufficient to look only inward. The deficiencies and opportunities for
enhancements should be incorporated into logistics systems modernization
objectives and plans for all Services and DOD agencies.
Doctrinal and policy issues, each of which influences the direction
and scope of "root" decisions at service and agency levels, leave the
logistics and information systems communities groping for leadership and
direction in many basic areas. The following issues are sufficiently
important to warrant additional policy guidance directives by the OSD.
Such documents need to ensure that system modernization plans incorporate
capacity and capability to permit implementation within specified time
frames. Such documents should cover the following points:
o Visibility of assets below the wholesale system. For use by
national inventory managers for keeping track of designated type
inventories at specified organizational levels. The document should also
specify the authority of the inventory managers to consider excess assets
in buy and redistribution decisions. Visibility of stocked items,
including those under service control, are an important aspect of
efficient and economic materiel management.
7
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8
SECRETARY
.
OF DEFENSE
UNDERSECRETARY
OF DEFENSE
ACQUISITION
JOINT CHIEFS
OF STAB
| ARMY
_
NAW
AIR fORCE ~
J , MARINE CORPS I
._ __ 1 _ _ ~
. ;
-. . . ~ ~
.
DEfENSE ~ ~
KRISTIN aa.~;
A6ENCT
_ ,_
FIGURE 1: The DLA in the DOD Organization
SOURCE: Command Briefing given to committee on May 5, 1987
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9
o Development of budgets and buy decisions using weapon systems
application, essentiality, and programmatic data.- Inherent in this
guidance is the need for interchange of application, production, and
deployment data across all DOD activities. This is needed to improve
weapon system availability without increasing stock levels.
O Ready access to assets declared excess by inventory managers and
located in, or in transit to, the disposal system. This is needed to
insure maximum use of existing assets and investments.
0 Revised credit and penalty policy for excess inventories held
below the wholesale level. Currently, excess inventories may be held by
the services because of insufficient motivation for their return. Revised
policies might provide the motivation to return them and allow better use
of those assets and investments.
o Guidance on sizing new automatic data processing (ADP),
telecommunications and warehouse capacity, and contractor capability
sufficient to cope with a full mobilization scenario. This guidance is
needed to properly plan such capacities and make appropriate acquisition
and investment decisions. -
0 Inventory stocking~policy and practices for reducing defense-held
inventories. Increased reliance on direct support from commercial sources
and "just-in-time" concepts might reduce such inventories when acceptable
for wholesale support in a peacetime and/or limited wartime environment.
o The degree of customer access to asset and technical data held by
the National Inventory Manager and central repositories. This would
optimize decision making and improve readiness and efficiency. Such
guidance is also needed to properly size ADP and telecommunications
capacity.
o Contract administration structure and system design essential to
maintaining an aggregate profile of contractor capability and
performance. These profiles would permit more timely decisions in the
buying process.
o Cost data elements, procurement history, and technical data that
should be maintained and the degree to which such information should be
accessible to buyers. This guidance would facilitate adequate system
design and response to meet specified production and administrative
lead-time goals.
o A forced discipline for electronically interchanging data between
buying and contract administration offices. This will increase the
accuracy of data bases, and thus the accuracy and concurrence of data
passed between buying and contract administration offices.
o Identification of data elements to be maintained in contract
administration or other appropriate data bases. Such guidance is critical
to planning and assessment of industrial preparedness.
o A framework for centralizing administration, accounting, and
finance functions in an environment where ADP and telecommunications
capability will make functional performance transparent to the physical
location.
0 Functional productivity goals, to be treated as targeted
performance criteria for developing architectural structure and system
design plans. These are needed to correctly plan and specify functional
and system requirements.
OCR for page 10
10
a
o Protocols, standards, and circumstances in which mandated data
sharing and data interchange will reduce uneconomical duplication of data
bases. This is needed for planning and specifying interoperable systems.
o Initiatives for personnel such as accession standards, grade
structure, career ladders, training, and retraining. These must be
adequate to build and maintain proficiency in the design and use of
technology for modern logistics systems.
We believe that there are significant benefits associated with
integrating logistics operations and coordinating the overall management
of logistics and supporting information systems throughout the DOD.
Modern ADP and telecommunications afford an excellent opportunity to move
toward greater levels of integration when considering both technical
feasibility and cost. However, we found that there is insufficient
motivation toward an integrated approach to logistics. This deficiency
became increasingly apparent during our review, which revealed a lack of
data and policy on customer needs, capabilities, and interoperability
issues. Voids in policy and direction are responsible for this
understandable lack of motivation and we would expect improvement to
depend on appropriate guidance from the OSD.
Representative terms from entire chapter:
inventory managers
