Defense Inventory: Extent of Diminishing Manufacturing Sources Problems Still Unknown.
Abstract
The DMSMS program is intended as a management tool for the early identification and resolution of situations when there is a loss or an impending loss of manufacturers of items or suppliers of raw materials. Such situations can occur when manufacturers and suppliers cease production, discontinue distribution, or move to a foreign country. Additionally, DMSMS situations can be caused by rapidly changing technology and low demand for the items or materials. The loss of item manufacturers and material suppliers can affect weapon systems and equipment during initial design, development, production, and life-cycle suppoft. When the services are notified that a manufacturer or supplier plans to discontinue production or distribution, they can (1) try to encourage the existing source to continue production, (2) try to find another manufacturer or supplier, (3) attempt to identify a substitute item, (4) redesign the system soit does not require the problem part, (5) redefine the military specifications and consider buying the item from commercial sources, or (6) make life-of-type buys. Because the services are often not aware of the discontinuance of an item until the manufacturer has made the decision, the services may be in a reactive mode with limited options for addressing the problem.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 1995
- Accession Number
- ADA293772
Entities
Organizations
- United States Government Accountability Office