Navy Ordnance Analysis of Business Area Efforts to Streamline Operations and Reduce Costs
Abstract
This is our second report in response to your request that we review financial and management issues related to the ordnance business area of the Navy Working Capital Fund. The Navy reorganized this business area in 1993 in order to reduce costs and address various deficiencies in ordnance logistics management that were identified during Desert Shield/Desert Storm operations and by various working groups and studies. However, the business area has experienced financial difficulties since the reorganization; losing a reported $212 million during fiscal years 1994 through 1996 despite price increases of about 78 percent. Our March 1997 report discussed the causes of these price increases and losses, including the fact that business area managers have not been able to reduce overhead costs as rapidly as their workload has declined. This second report (1) provides our evaluation of the Navy's proposed and ongoing actions to reduce the business area's costs and (2) identifies additional cost reduction opportunities.
Document Details
- Document Type
- Technical Report
- Publication Date
- Oct 01, 1997
- Accession Number
- ADA331008
Entities
Organizations
- United States Government Accountability Office