Navy Supply: Improved Material Management Can Reduce Shipyard Costs
Abstract
The Navy's public shipyards support peacetime fleet maintenance needs and provide a base for responding to wartime requirements. Although the eventual size of the public shipyard industrial base is uncertain because of fleet downsizing, each shipyard should operate as efficiently as possible. Because the shipyards spend hundreds of millions of dollars annually on ship repair material and maintain substantial inventories, GAo evaluated the Navy's methods for managing and controlling shipyard material costs. Shipyard material management has improved since GAO last reviewed the subject in 1985. However, 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 accomplish ship repairs and the shipyards had unused material after repairs were completed. The quantity of unused material exceeded the Navy goal and resulted in waste when it had to be written off as a loss because it was not needed elsewhere. In fiscal years 1991 through 1993, the shipyards wrote off $88 million in losses for unused material
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 01, 1994
- Accession Number
- ADA283051
Entities
Organizations
- United States Government Accountability Office