An investigation into CRUDESPAC CASREPTS and their relation to … · 2016. 6. 9. ·...

326
AN INVESTIGATION INTO CRUDESPAC CASREPTS AND THEIR RELATION TO MATERIAL SUPPORT Gerald Gi Ibert Lutz

Transcript of An investigation into CRUDESPAC CASREPTS and their relation to … · 2016. 6. 9. ·...

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AN INVESTIGATION INTO CRUDESPAC CASREPTSAND THEIR RELATION TO MATERIAL SUPPORT

Gerald Gi Ibert Lutz

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n^Pi R

M L

frionierey^baiiiGroia

TWsag Bsaet

AN INVESTIGATION INTO CRUDESPAC CASREPTS

AND

THEIR PJELATION TO MATERIAL SUPPORT

by

Gerald Gilbert Lutz

and

Walter Michael Wasov;ski

March 197 5

Thesis Ad\''isor Dan C. Boger

Approved for public release; distribution urslimited.

T166562

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SECURITY CLASSIFICATION OF THIS PAGE (Wh»r< D»im Entermd)

REPORT DOCUMENTATION PAGE READ INSTRUCTIONSBEFORE COWPLET.Sr, FORM

1. REPORT NUMBER 2. GOVT ACCESSION NO. 3. RECIPIENT'S CATALOG NUMBER

4. TITLE fand Subtllle)

An "investigation Into CRUDESPAC CASREPTSAnd Their Relation to Material Support

5. TYPE OF REPORT ft PERIOD COVERED

Master's Thesis^iarch, 19756. PERFORMING ORG. REPORT NUMBER

7. AUTHORC*;

Gerald Gilbert LutzWalter Michael Wasowski

8. CONTRACT OR GRANT NUMBERC*;

9. PERFORMING ORGANIZATION NAME AND ADDRESS

Naval Postgraduate SchoolMonterey, California 93940

10. PROGRAM ELEMENT. PROJECT, TASKAREA 6 WORK UNIT NUMBERS

11. CONTROLLING OFFICE NAME AND ADDRESS

Naval Postgraduate SchoolMonterey, California 93940

12. REPORT DATE4arch, 197513. NUMBER OF PAGES159

U. MONITORING AGENCY NAME & ADDRESSC// cf'/Zofenf from Controltlnt Otlica)

Naval Postgraduate SchoolMonterey, California 93940

15. SECURITY CLASS, (ol thia report)

Jnclassif ied

15«. DEC LASSlFI CATION'' DOWN GRADINGSCHEDULE

16. DISTRIBUTION STATEMENT (of Ihia Rtport)

Approved for public release; distribution unlimited.

17. DISTRIBUTION STATEMENT (ot tho mbatrtct mtmrod In Block 20, 11 dldorenl Uom Rupert)

18. SUPPLEMENTARY NOTES

19. KEY WORDS (Continue on t»vef» aid* it ntceaamry tnd Identify by block nuinbor)

Supply Support Repairable Management

CASREPTS COMCRUDESPAC

Repairables20. ABSTRACT (Contlnua on ravataa aida it nacaaaary and Idantify by block nianbar)

The declining tempo of Pacific Fleet operarioiis , combinedwith the introduction in recent years of significant numbers ofnew destroyer classes, should have had the effect of improvingthe readiness of the Cruiser-Destroyer Force, Pacific. However,analysis of current fleet eqaip~ent casualties, as reported onCASREPTS, does not support this assumption. A study is madeof current CRUDESPAC CASREPTs to stratify significant supply

DD ( JAN 73 1473 EDITION OF 1 NOV 68 IS OBSOLETE(Page 1) S/N 0102-014-6601

I

SECURITY CLASSIFICATION OF THIS PAGE (Vhan Data tntarad)

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CuCU^flTY CLASSIFICATION OF THIS PAGEr»»i«n Drtm F.nltfJ-

20. Abstract (Continuation)

support factors related to this data. Managerial techniques,currently employed to control NIS repairable assemblies, areexamined. Finally recommendations for changes in current proce-dures are proposed, along with a list of areas for additionalstudy.

DD Form 1473 (BACK)1 Jan 73

S/N 0102-014-G601 security classification of this PACEr*1i«n Dmt» Enffd)

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An Investigation Into CRUDESPAC CASREPTSand

Their Relation to Material Support

by

Gerald Gilbert LutzLieutenant Commander, United States Navy

B.B.S., Lakeland College, 1960

and

Walter Michael WasowskiLieutenant, United States Navy

B.A. Pennsylvania State University, 1957

Submitted in partial fulfillment of therequirements for the degree of

MASTER OF SCIENCE IN MANAGEMENT

from theNAVAL POSTGRADUATE SCHOOL

March 1975

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DUDLEY KNOX LfBR'-RyNAVAL P:,3TG.;Ar,'JAT£ SCi^OOLWOMjEfttir. CALIFORNIA 9394Q

ABSTRACT

The declining tempo of Pacific Fleet operations, com-

bined with the introduction in recent years of significant

numbers of new destroyer classes, should have had the

effect of improving the readiness of the Cruiser-Destroyer

Force, Pacific. However, analysis of current fleet equip-

ment casualties, as reported on CASREPTS, does not support

this assumption. A study is made of current CRUDESPAC

CASREPTS to stratify significant supply support factors

related to this data. Managerial techniques, currently

employed to control NTS repairable assemblies, are examined.

Finally, recommendations for changes in current procedures

are proposed, along with a list of areas for additional

study.

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TABLE OF CONTENTS

I. BACKGROUND 10

II. PROBLEM DEFINITION 15

III. PRESENTATION OF DATA 18

IV. DISCUSSION OF DATA 25

V. MANAGEMENT OF REPAIRABLES 33

VI. USE OF 3M DATA 40

VII. CONCLUSIONS AND RECOMMENDATIONS 42

VIII. INDICATED AREAS OF FURTHER STUDY 46

APPENDIX A (Casrept Parts Data Review Listing - 56EIC/FIIN Sequence List) —

APPENDIX B (Casrept Parts Data Frequency Listing) 143

BIBLIOGRAPHY 157

INITIAL DISTRIBUTION LIST 159

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LIST OF FIGURES

FIGURE 1. COSAL Computation Model 47

FIGURE 2. Allowance Logic Schematic 48

FIGURE 3. COMCRUDESPAC 49

FIGURE 4. Summary Analysis of COMCRUDESPAC CASREPTParts Data 50

FIGURE 5. Analysis of CASREPTS by Part Frequency 51

FIGURE 6. Length of COMCRUDESPAC CASREPTS forNIS Parts 52"

FIGURE 7. Analysis of Repairables by InventoryControl Activity 53

FIGURE 8. Population and Sample Data 54

FIGURE 9. Repairable Responsibility Summary 55

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TABLE OF ABBREVIATIONS

AFS - Fleet Issue Ship

APA - Appropriation Purchase Account

CASCOR - Corrected CASREPT

CASREPT - Casualty Report

COG - Material Cognizance Class

COMCRUDESPAC - Commander Cruiser-Destroyer Force, Pacific

COSAL - Co-ordinated Shipboard Allowance List

CRUDESPAC - Cruiser-Destroyer Force, Pacific

DIAL - Deficiency In Allowance List

DPSCPAC - Data Processing Support Center, Pacific

FUN - Federal Item Identification Number

FIRM - Fleet Intensified Repairable Management

FMSO - Fleet Material Support Office

NAVELEX - Naval Electronics System Command

NAVSEA - Naval Sea Systems Command

NAVSUP - Naval Supply Systems Command

NC - Not Carried

NTS - Not In Stock

NRFI - Not Ready For Issue

OPTAR - Operations and Maintenance Target

FEB - Propulsion Examining Board

RFI - Ready for Issue

READIMP - Readiness Improvement Program

SIM - Selected Item Management

SNSL - Stock Number Sequence List

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SPCC - Ships Parts Control Center

TAT - Turn Around Time

TYCOM - Type Commander

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ACKNOWLEDGEMENT

We wish to thank our thesis advisor, Lt. Dan C. Boger,

for his understanding, guidance, and assistance during this

effort. We would also like to thank Captain F. A. Derby,

SC, USN, Force Supply Officer at COMCRUDESPAC , Mr. W. C.

Yandrasitz, MSOD-9311 of the Navy Fleet Material Office,

and Lt. W. Stanton, CODE 841 of the Ships 's Parts Control

Center, for their time and assistance in making much of

the data contained in this thesis available.

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I. BACKGROUND

The maintenance of an operationally ready force of

surface ships, in the vast area which the Pacific Theater

encompasses, is the responsibility of the Commander Cruiser-

Destroyer Force, Pacific (COMCRUDESPAC) . With the increas-

ing sophistication of electronics equipment, the modular

approach to most weapons systems, and the recent emphasis

on improving the readiness condition of engineering plants

and equipment, the task of maintaining the availability

of Cruiser-Destroyer Force, Pacific (CRUDESPAC) ships has

become increasingly difficult.

In order to accomplish his job, COMCRUDESPAC must be

able to call upon any unit, at any time, to perform any com-

bination of numerous missions for which his ships are de-

signed. To do so, with any measure of success, he must

depend not on the perfect performance of each system and

component carried aboard the m.odern Naval Vessel, but on

the ability of the supply system to ensure rapid replace-

ment of those components which either fail or must be re-

placed on a periodic basis.

The inability of the system to provide necessary spares

at the time and place required leads to situations in which

units of the fleet are unable to perform some, or all, of

their assigned missions. This situation, identified by the

Casualty Report (CASREPT) , is of prime concern to the Navy

Supply System, and is the benchmark against which the effi-

ciency of material support can be measured.

10

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COMCRUDESPAC, as Pacific fleet logistics force com-

mander for all cruisers and destroyers, has responsibility

for almost 100 ships ranging in size from the small des-

troyer escort to the larger and more sophisticated frigates

and cruisers. Geographically, this force operates in the

entire Pacific, encompassing the largest military area of

responsibility in the world.

To accomplish this task, COMCRUDESPAC is supported by

the Naval Supply Systems Command (NAVSUP) whose responsi-

bility it is to set forth the general supply policies and

procedures for the forces afloat. This guidance is con-

tained in NAVSUP Publication 485 which details those man-

agerial practices which govern the support of all fleet

units. Tncliided are requisitioning procedures and objec-

tives, policies on control of repairables and retrograde,

and a detailed model of the interrelationships of all

supply echelons in the system.

Sources for material support of Pacifc fleet surface

units and the echelons to which they belong include the

following:

a. First Echelon

1. Ships' Storeroom Stock

2. Screening of other units in squadron or

operating force for high priority requirements.

3. Cannibalization of item or next higher assem-

bly from other units or activities.

b. Second Echelon (Retail Stock Points)

11

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1. Naval Supply Depots and Centers

2. Fleet Issue Ships (AFS)

3. Shipyards and tenders for repair capabilities

as applicable

c. Third Echelon (Wholesale Stock Points)

1. Navy Supply Center, Oakland, California

2. Navy Supply Center, Norfolk, Virginia

3. Repair depots, parts substitution, and acqui-

sition from civilian manufacturers

With the total number of individual items required to

support the fleet exceeding 1.8 million, the ability of

the various levels of the supply system to maintain stock

of all items is impractical if not impossible. In fact,

the capability of the system as a v/hole to maintain an

inventory of all possible spare parts required is finan-

cially impractical. A system has been developed, there-

fore, under which items are stocked in an attempt to main-

tain that level of readiness dictated by the Chief of

Naval Operations in consonance with the coordinated defense

of the United States.

SPCC is tasked with the responsibility of identifying

all items required for each particular unit in the fleet.

The result - the Co-ordinated Shipboard Allowance List

(COSAL) - is designed to provide an accurate technical

document describing and listing all systems installed on

Bureau of Naval Personnel, NAVPERS 10487, Supplyingthe Navy , U.S. Government Printing Office, 1967, p. 4

12

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a vessel and the parts and components contained therein.

2Its development is outlined in Figures 1 and 2.

A second task of SPCC is to identify the particular

range (individual item identification) and depth (stocking

limits) to be carried by each particular ship. This list-

ing, which is a separate section of the COSAL called the

Stock Number Sequence List (SNSL) , is based on historical

demand for parts for individual systems, when available,

or from contractor's best estimate of demand in the case

of new equipment.

Individual stocking levels are then managed on the

basis of Selected Item Management (SIM) in accordance with

NAVSUP Publication 485. In brief, SIM allows for the stock-

ing of spares within high and low limits specified in the

COSAL for items with a demand of at least two units within

a six month time frame. Items falling outside this cri-

terion are reordered as funding permits. At the present

time all items with a value of under $2.00 are reordered

to allowance. Items exceeding this amount are reordered

on a one for one basis when a zero balance is reached.

Deficiencies in allowance due to this constraint are

reported under an existing program - Deficiency in Allow-

ance List (DIAL)

.

Funding for initial COSAL outfitting of newly commis-

sioned ships and for ships going through regular overhaul

2Hakemian, R.G. , "Supply Support - Part III The Coor-

dinated Shipboard Allowance List (COSAL) Computation,"NAVSEA Journal , v. 23, no. 8, p. 6 and H, August 1974.

13

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is provided by the Naval Sea Systems Command (NAVSEA)

.

Thereafter, replenishment of consumable spares used by

units is accomplished by COMCRUDESPAC with funds provided

for operations and maintenance (OPTAR) . Items which are

classified as repairable, normally exceeding a value of

$1,000.00, are designated as appropriation purchase account

(APA) items and are funded by the applicable inventory

control point (ICP)

.

14

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II. PROBLEM DEFINITION

The purpose of this thesis is to examine demonstrated

problem areas in material support identified through the

CASREPT reporting system.

The termination of the Vietnam War has resulted in a

marked period of decreasing fleet activity. Not only have

retirements from the active fleet reduced CRUDESPAC size

by over 15% in the last three years, but also a concurrent

reduction in the tempo of operations has produced a signi-

ficant decrease in actual ship-operating days. From a

period of time during the Vietnamese War when CRUDESPAC

units were deploying with turnaround times as short as six

months and maintaining an operating tempo as high as 70

to 80%, there has been a material improvement to today

when a unit's average turnaround time has increased to more

than 10 months and the operating tempo, while deployed, is

averaging less than 45%.

Another factor which should have significance for the

material readiness posture of CRUDESPAC has been the de-

creasing average age of the active units. With the retiring

of almost all World War II units and the introduction to the

fleet of significant numbers of new destroyer classes, the

average age of CRUDESPAC units has declined from 16.5 to

14.4 years.

15

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The logical conclusion to reach in view of the above

trends is that the total number of actual CASREPTS should

also be declining. However, during the period from June

1973 to October 1974, total outstanding CASREPTS increased

sharply and, more significantly, the average time to correct

CASREPTS has continued to increase. The significance of

this becomes apparent when these figures are projected

against ship operating years as in Figure 3,

Although some of this trend can certainly be attri-

buted to policy changes and recently instituted programs

such as the Readiness Improvement Program (READIMP) and

the inspections conducted by the 1200 lb. Propulsion Exam-

ining Board (PEB) , this does not alter the fact that COM-

CRUDESPAC is facing an increasing problem which can be

traced to a breakdown in the supply system.

It is to this problem that this thesis is directed.

Against a background of several tours with CRUDESPAC, and

taking into consideration experience gained in both the

line and supply aspects of the system, a hypothesis has

been developed that an independent study of current CASREPT

data might lead to the identification of causal relation-

ships between the increasing rate of significant material

casualties within CRUDESPAC, and supply procedures within

the scope of that command's authority.

An analysis of CASREPT data for fiscal year 1974 will

be presented in Section III. Sections IV, V, and VI will

be concerned with an analysis of this data and some of the

16

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relevant problem areas, while sections VII and VIII will

be devoted to the authors' conclusions, recommendations

for interim changes to current procedures, and indicated

areas of further study.

17

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III. PRESENTATION OF DATA

An initial data-gathering trip was made to COMCRUDES-

PAC, San Diego, for the purpose of obtaining raw data on

a significant number of CASREPTS. At the present time,

all CASREPTS are reported by individual units in message

format to COMCRUDESPAC and other interested commands. It

was assumed, then, that historical data on CASREPTS could

be obtained from either COMCRUDESPAC or from the Data

Processing Support Center, Pacific (DPSCPAC) , the local

command providing computer services to COMCRUDESPAC. Un-

fortunately, it was discovered that COMCRUDESPAC maintains

a file of only current, outstanding CASREPTS and a histori-

cal file of corrected CASREPTS (CASCORs) for six months.

At the same time, DPSCPAC was unable to retrieve this data

from their data bank due to software problems.

In attempting to find another source of raw data, it

was discovered that the Navy Fleet Material Support Office

(FMSO) , having been included as an addressee on the fleet

reports, was also maintaining a data base on CASREPTS.

A special parts data review listing was obtained from

3FMSO covering fiscal year 1974. This listing, which con-

sisted of all parts reported on CASREPTS during the period

was the data base analyzed in this thesis.

3Navy Fleet Material Support Office, Report SymbolSUP 4400.28-111-9 for the period ending 30 June 1974,Consolidated CASREPT Reporting System.

18

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In preparation for review, the FMSO report was edited

to reduce redundancy, eliminate non-essential information,

and to highlight certain aspects of the data. These format

changes are listed below as an aid to any subsequent re-

searchers in this area:

a. Parts data is listed in alpha-numeric sequence by

Material Cognizance Class (COG) and stock number, and is

grouped by equipment in sequence by Equipment Identification

Code (EIC) . The equipment identification line contains the

first four characters of the EIC and the noun name of the

equipment, as in the original report.

b. The following is an explanation of the various

items in the original report and their status in the edited

report:

Data Element Description

APL/CID Number Allowance Parts List Number/

Component Identification Number.

Used in identifying part/stock

numbers and other information,

mainly aboard ship. (Excluded

as extraneous)

.

COG Cognizance Symbol. Two charac-

ter code which identifies the

specific command having inven-

tory management responsibility

for specific equipments and

parts.

19

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FSN Nomenclature

Ship Type

Hull Number

EIC Number

FSN/NSN/PN Federal Stock Number/Navy Stock

Number/Part Number. Stock num-

ber used in identifying and

ordering parts.

Noun name of individual part.

Code specifying class of ship

requiring part as prescribed in

SECNAVINST. 5030.1 (series).

Identifies specific ship of class

reporting CASREPT.

Current Equipment Identification

Code used in the 3M system. (Ex-

cluded as redundant of informa-

tion contained in the equipment

identification line)

.

Specific work center number

assigned to a maintenance action

aboard ship under the 3M system.

(Excluded as extraneous)

.

Reference Symbol Circuit symbol number for use

in identifying parts required

in electronic equipment.

(Excluded as extraneous)

,

Readiness Code. Single digit

code reporting CASREPT severity

in accordance with NWIP 10-1.

Job Control No.

RC

20

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Code Meaning

4 Unable to execute assigned

combat mission.

3 Capability of executing

assigned mission is severely

limited

.

2 Capability of executing

assigned combat mission is

not severely limited.

RA Repair Activity. Repair echelon

required for assistance in cor-

recting the casualty. Uses

following code:

S - Ship's Force

R - Shipyard/Tender

T - Technical Assistance

O - Overhaul Repair Facility

D - Drydock

ALL CD Allowance Code.

Yes - Item is on applicable

Allowance Parts List and should

be stocked aboard ship.

No - Item is not on appli-

cable APL.

Numeric Value - Allowed

quantity on applicable APL.

21

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0/B CD On board code.

Yes - Item is on board.

No - Item is not on board.

Numeric Value - Quantity

on board.

UI Unit of Issue. Abbreviations

which represent quantities es-

tablished as standards of

measurement for issue of mater-

ials or supplies,

RQN QTY Requisition Quantity. The quan-

tity of each particular line

item for which a requisition was

submitted as reported in para-

graph FOXTROT of the CASREPT.

REQ QTY Required Quantity. The quantity

of a particular item required to

correct the casualty,

NIS Not-In-Stock. Data element to

identify those items which

should have been stocked aboard

ship but were not on board in

sufficient quantity to correct

the casualty. Determined by

comparing ALL CD, 0/B, CD, RQN

QTY, and REQ QTY.

22

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REP Repairable. Data element added

to identify repairable assem-

blies which are managed by the

ICP designated by the COG code.

A complete copy of this revised data listing is in-

cluded as Appendix A to this thesis for follow-on research

as may be required.

Having obtained an accurate data base, a program was

written to analyze the parts data. Several reports were

generated including a summary analysis of parts data by

type of CASREPT and classification of required part (Figure

4) , a frequency listing of required parts (Appendix B) ,

and an analysis of repairable parts by frequency reported

(Figure 5)

.

This data and its imputed significance is discussed at

length in section IV.

Initial analysis of the data indicated that the cate-

gory of repairable parts appeared in a significant number

of casualties. A second data-gathering trip to San Diego

was made in an attempt to:

a. ascertain the extent of the repairables problem

and its impact on COMCRUDESPAC readiness

b. ascertain the level of awareness, level of respon-

sibility, and current management measures being taken by

various commands

c. discover any existing correlation between CASREPT

data and data reported under the Maintenance and Material

23

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Management (3M) System which could be used to provide an

early indication of possible breakdowns in the supply

system and

d. determine any other significant factors which

could be of use in alleviating the current problem.

In determining the severity of the problem, a 10%

sample by type ship of COMCRUDESPAC units was drawn to be

analyzed over a six-month period. Using the COMCRUDESPAC

outstanding CASREPT file and the historical file of correct-

ed casualties, data were gathered on the length of time

required to correct casualties in several categories. A

summary of this data is included as Figure 5.

Finally, an analysis of repairable CASREPT parts by

inventory control activity was done to determine any sig-

nificant areas for further scrutiny. The results of this

analysis are presented in Figure 7.

24

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IV. DISCUSSION OF DATA

As displayed in Appendix A, the basic data that were

used for analysis in this section are the total of

COMCRUDESPAC CASREPTS reported during the period July 1973

through June 1974. Although 3M usage data were also ac-

quired from the Fleet Material Support Office (FMSO) for

4the same time period, the authors were unable to effec-

tively compare this data with the CASREPT data for a

variety of reasons. This comparison problem, and the

general lack of aggregate supply usage information inherent

in the 3M data, will be discussed, interalia, in a later

section.

The CASREPT reporting system constitutes the most

significant daily report of deficiencies in surface ships*

mission-essential equipment available today. Since the

CASREPT, by definition, is limited to those items of equip-

ment and supply without which the unit cannot perform all

of its assigned mission areas, an analysis of these data

will effectively zero in on those supply problems with the

highest impact on any unit or organization. Since more

than half of all CASREPTS reported are caused by a lack

of spare parts (rather than a deficiency in either qua-

lified technicians or specific repair capability such as

4Navy Fleet Material Support Office, Report No. MSO

4790 S. 2663, Report 358A Part Data For Supply SourceCodes - By EIC .

25

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a drydock) , it is a management tool defining the most

critical, hard core support deficiencies in the supply

system. As such it can, and should, be used in monitoring

significant trends in CASREPT activity. Some examples of

this type of use would include the analysis of:

a. changes in total numbers of CASREPTS

b. changes in categories of support cited on CASREPTS

(part versus technical assist or repairable assemblies

versus consumables)

c. time required for CASCOR.

Although one year of CASREPT data is insufficient to

determine long range trends, it is felt that the data will

highlight current problem areas which account for the major-

ity of equipment down-time. This, then, is the framework

within which the authors will discuss the CASREPT data.

Due to both funding restrictions and space limitations

aboard ships, CNO has established goals for both gross

issue effectiveness (percentage of all repair part requests

placed upon a unit's supply department which can be met

by on-hand stock) and net issue effectiveness (percentage

of COSAL requests which can be met from on-hand stock)

.

Currently these standards are set at 65% and 85%, res-

prectively. Unfortunately, under current reporting proce-

dures it is impractical, if not impossible, to obtain the

current level of effectiveness aboard CRUDESPAC ships.

5Hakemian, Op. Cit., p. 6

26

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Further, these goals of net and gross availability, as

measures of effectiveness for the supply system, would be

deceptive because of the differences inherent in both the

management and importance between mission essential and

non-mission essential equipment. A more logical measure

of effectiveness would be the amount of equipment down-

time as a result of supply support deficiencies with

special emphasis on mission essential items.

Appendix A lists a total of 1906 instances where

failed parts were associated with CRUDESPAC CASREPTS

generated during FY 74. As stated earlier in this thesis,

this number is disturbing in view of the decrease in num-

ber of units reporting, operating tempo, and unit age. As

detailed in Figure 4, a total of 121 instances (6% of total)

were reported in which, although specific parts were cited,

there was no breakdown in the supply system. In these

cases, even though CASREPTS were initiated on down equip-

ments, the required parts were available but the equip-

ments could not be repaired for some other reason (e.g.,

qualified technicians or repair capability were not

available) . For this reason, these items have been dis-

counted from the rest of the analysis.

The second major category of reported supply defici-

ency was in the area of not carried (NC) parts. Of the

total, more than 58% (1111 items) fell in this category.

These items were not COSAL supported because they did not

meet the demand or criticality criteria, and were not

27

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included as shipboard spares » As such^ these items were

supported at some higher echelon of supply (probably at

the wholesale stock point as insurance items) . It is ex-

pected that most CASREPTS will fall into this category. No

logical inventory model could support stocking these items

aboard ships, considering both funding and space limita-

tions. Consequently, inventory managers use, as COSAL

stocking criteria, system inputs of previously experienced

demand, individual ships' experienced demand, projected

demand input from the fleet, and, in the case of new

equipments, estimated demand from the applicable contractors.

Additionally, under the present stocking criteria, an item

will automatically be included under shipboard support if

there is a high enough demand aboard any particular unit.

For example, a not-carried part experiencing a second de-

mand within a six month period is handled as a stocked

item, and subsequent demands would fall into the category

of a not-in-stock (NIS) spare. For these reasons, the

authors have assumed that the current COSAL model is pro-

ducing an adequate gross effectiveness and that little

could be gained by attempting to solve inventory/support

problems associated with low demand base items.

The remaining items reported in the CASREPT base (67 3

or 36% of the total) fell in the NIS category. This cate-

gory is of major importance to any support manager since

the associated parts should have been carried aboard the

ship as replacement spares, but for some reason were

28

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temporarily out of stock when requested. Normally, the

reason for a NIS situation can be traced to the inventory

support manager (at all echelons) for reasons such as:

a. inadvertent failure to reorder

b. failure to forecast predictable demand increases

c. lack of requisition/transportation follow-up

resulting in excessive delays

d. mismanagement of scarce resources.

There are, however, instances in which the fault may

not lie with the support manager such as:

a. rapid increase in demand caused by higher than

forecasted failure rate, or

b. abnormal surges in demand which could not be

forecasted (e.g., change in estimated operating tempo,

etc. ) .

Whatever the reason, there is a breakdown in the designed

system and it is felt that further study of the NIS parts

problem will lead to better use of management techniques

thereby enhancing the material support posture aboard

ships.

In pursuit of this goal, a further breakdown of the

category of NIS parts was made. As documented in Figure

4, 49.7% of the problem was in the sub-category of repair-

ables. The remainder of the parts were non-repairables

(bit, piece, and consumable) . The significance of this

50/50 split becomes apparent when considering the break-

down of spare parts as a population. As an example, for

29

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all line items managed under the cognizance of SPCC,

repairables constitute only 13%.

To determine the magnitude of the NIS repairable pro-

blem, it was decided to attempt some comparison based on

equipment down-time as a measure of effectiveness. To

this end, a 10% sample of COMCRUDESPAC units was selected

to determine the lengths of time CASREPTS, in various

classes, remained outstanding.

Units to be included were chosen from classes of com-

parative size and configuration to maintain a profile

approximating that of CRUDESPAC as a whole. These classes,

populations, and units selected are given in Figure 8.

In order to determine some measure of severity, the

file of CASREPTS for the last six m.onths for each unit was

examined and statistics for parts required were extracted

by category. These data are only contained in the hard-

copy file of CASREPTS maintained by COMCRUDESPAC, and are

maintained for the most current six months. At the time

this survey was conducted, the file contained CASREPTS for

the period May through October 1974. The results of this

survey are tabulated in Figure 6.

As shown by category of repairable versus non-repair-

able, the sample produced a breakdown of 27 and 33 items

(45% and 55% of total) , respectively, which is reasonably

close to the figures for FY 74 CASREPTS. Examining total

This information was furnished in a telephone con-versation by Lt, W. Stanton, Code 841, Ships Parts ControlCenter on February 13, 1975.

30

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days outstanding for this sample however, we see that

repairables, with 1378 CASREPT days, account for 73.9%

of the total. When we look at the comparison of average

days outstanding for the two categories we obtain another

view of the significant difference (e.g., 3 or 4 to 1

ratio of CASREPT days outstanding for repairables versus

non-repairables)

.

Using the lengths of time for CASCOR vice the aggre-

gate totals of CASREPTS as a measure of effectiveness

gives a better feel for the severity of the NIS repairable

problem. The current emphasis on the total numbers vice

the length of time CASREPTS are outstanding leads to a

false sense of security for the manager. The severity

of a major piece of gear down for 10 days must attain the

same if not greater recognition as that of 10 pieces of

equipment which are down for periods of one day each.

This is inherently true because an operational commander

can generally get by with a major piece of equipment down

for one day, but planned missions become an impossible

task when major assets are not available for long periods

of time. Therefore, the problem for COMCRUDESPAC is not

only in the increase in total numbers of CASREPTS, but

also in the length of time required to correct each

casualty.

In another stratification of the NIS problem, the

data were analyzed by frequency of demand (e.g., the num-

ber of times one line item appeared on the CASREPT report

31

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in a year time frame) . As shown in Appendix B, this analy-

sis again pointed to the severity of the repairable problem,

When examined by individual stock number on the basis of

CASREPT frequency during the fiscal year, repairable items

accounted for an obviously large percentage. The fact that

all items with a frequency greater than 7 are repairable

(see Figure 5) , coupled V7ith the fact that one item was

responsible for 42 CASREPTS during the year, highlights

the possible snowballing effect which can result when a

repairable item becomes a supply deficiency.

The nature of repairable versus non-repairable manage-

ment is discussed in the next section in an attempt to

provide an explanation for this phenemenon.

32

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V. MANAGEMENT OF REPAIRABLES

In the previous section, an analysis of CASREPT data

indicated the seriousness of the NIS repairable problem.

The severity of this problem was highlighted when the

measure of effectiveness of supply support is linked to

the length of time required for the requesting unit to

acquire the repairable item.

Some obvious questions which arise from an analysis

of this type include:

a. Why does it take three or four times longer to

receive NIS repairables from the Navy supply system than

NIS non-repairables?

b. Why is there such a high redundancy factor asso-

ciated with CASREPT repairables?

c. What management factors must be considered in

dealing with repairables vice non-repairables to enhance

supply effectiveness?

To answer the above questions one must look at the

basic differences between the two categories of spare

parts. As a general explanation, consumable items by

their very nature are normally low cost, generate con-

sistent demand, and require less procurement lead time

than repairables. This contrasts sharply with repairable

items which are generally high cost, generate lower or

33

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sporadic usage, and normally require lead times between

six and eighteen months.

Consumable items are relatively easy to manage since

essentially only two factors come into play:

a. historic and forecasted demand

b. procurement/transportation lead time.

RepairableS/ however, require a higher degree of control

and management expertise.

In addition to the demand and procurement/transporta-

tion lead times, a management program is required to con-

trol the not-ready- for-issue (NRFI) carcass from the end

user, to and through the repair site, and back to the

applicable stock point or diverted directly to an end user

as the case may be. This entire cycle is commonly referred

to as the turn-around-time (TAT)

.

Regarding inventory control of repairables, the follow-

ing categories are critical for successful management:

a. a good estimate of TAT so that sufficient quanti-

ties are procured to meet demand

b. a good estimate of attrition to program for inter-

mittent procurement to satisfy these losses (e.g., physical

losses in the supply system or losses caused by the repair

item being beyond the capability of repair at any level

of maintenance)

c. compressing TAT through system-wide management

to save procurement dollars on these expensive items

d. a priority induction/repair program to maintain

the highest degree of effectiveness with existing assets

34

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e. an excellent overall monitorship program by the

controlling agency to determine problem areas at any

supply echelon (e.g., a procedure must exist to determine

where the breakdown is, why the breakdown occurred and

what management techniques are needed for corrective

action)

.

This high degree of repairable control involves all

echelons within the supply system. Although the inventory

control manager has overall responsibility for repair item

management, he must rely on the effectiveness of the ship's

supply officer, type and fleet commanders, wholesale and

retail stock points, commercial and material systems

command repair facilities, transportation system, etc.

The ability of the inventory manager to control TAT

is one factor directly related to the projected investment

cost. The procurement schedule of a given repairable item

is predicated on a given TAT and a projected failure rate

(e.g., if TAT or failure rate doubles, then procurement

of repairable carcasses must increase significantly to

maintain equal effectiveness) . Due to lengthly procure-

ment lead times, any system deficiency leading to either

an increased TAT or a higher failure rate will quickly

result in a NIS problem. Additionally, since procurement

dollars have been a scarce commodity, there may be times

when dollars are not available to alleviate the NIS

problem. This is especially true today with tightly

controlled budgets and austere funding.

35

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Procurement of consumables can be initiated at all

levels of management due to their typical low cost and

relative simplicity. This includes utilizing the ships

imprest fund to procure locally when time is critical.

Therefore, the flexibility exists to "buy" out of the

CASREPT problem. In the case of repairables, however,

the' combination of high cost and technology usually pre-

vents the manager from "buying" out of a problem. The

relatively few manufacturers capable of producing most

repairables and the inability to significantly reduce

procurement lead time at any penalty cost, combine to en-

sure difficulties. This is one of many problems the in-

ventory manager is confronted with when the NIS repairable

problem occurs.

The cognizant ICP lacks total system repairable (APA)

asset visibility and this aggravates the NIS repairable

problem. Especially in cases where equipments are peculiar

to CRUDESPAC/CRUDESLANT ships, a large percentage of the

total repairable assets (those stocked aboard these ships)

is not reported to the ICP. Consequently, the ICP does

not know the exact quantities (RFI or NRFI) carried aboard

these ships. This lack of asset visibility at the ICP is

especially serious when the following conditions occur;

a. both wholesale and retail stock points are NIS

b. CASREPTS are starting to develop

c. repair activities report only a few assets being

inducted with no guarantee of repair

36

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d. procurement lead time is eighteen months.

Management of repairables is a delicate and complex

problem with an abundance of variables to consider. No

one manager has absolute control because he must rely on

other managers within the various echelons of supply. It

therefore takes an astute manager, constantly monitoring

the supply system for breakdowns, to successfully maintain

a high degree of material readiness.

It is not the intent of the authors to "reinvent the

wheel" on the magnitude of the repairable management pro-

blem, but rather to offer some simple explanations and

thoughts regarding the repairable CASREPT problem.

Figure 9 details the specific responsibilities applic-

able to the various management levels for managing repair-

7able items. The Naval Electronics System Command (NAVELEX),

NAVSEA and SPCC are the three cognizant commands that account

for most repairable material supporting the surface fleet.

As such, they control the day-to-day management of TAT,

commercial repair contracts, developing future requirements,

budgets and urgency of repair requirements. Figure 9 also

indicates the responsibilities of the fleet and type com-

manders (e.g., selected/critical item management and coordi-

nation of logistical problems affecting the fleet)

.

In looking for other significant factors relevant to

the CASREPT problem, an analysis of NIS and NC repairables

by cognizant inventory manager was performed. Results of

7Bureau of Naval Personnel, Op. Cit. , p. 45.

37

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this are shown in Figure 7. Of special note are the numbers

and percentages associated with SPCC (i.e., SPCC had cogni-

zance of 81.8% of all CASREPT repairables but accounted for

97.3% of the NIS category). Although this seems to point to

an area for further attention by the applicable ICP, it is

mentioned at this time as an example of the type of analysis

which should be performed at other levels of management

(specifically the type commander level) to identify possible

problem areas for additional managerial attention. Addi-

tionally, the CASREPT frequency listing (Appendix B) shows

approximately 35 repairable line items causing approximately

350 repairable shortages on CASREPTS, for a minimum redun-

dancy in frequency of 5 or greater for the fiscal year.

These 35 repairable line items are the most critical hard-

core support problems affecting the fleet and should be can-

didates for possible fleet control and immediate coordina-

tion with the applicable ICP. In the above examples, addi-

tional research is required to determine the significance

of these statistics and/or possible remedies of these pro-

blems, but time and funding constraints have precluded it

being done in this thesis.

In an attempt to better manage selected repairable

items, a program was recently initiated by SPCC calledQ

the Fleet Intensified Repairable Management (FIRM)

.

oNavy Ships Parts Control Center message date-time

group 051912Z October 1974, Subject: Fleet IntensifiedRepairables Management (FIRM) Inventory .

38

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It was coordinated with COMCRUDESPAC and all other type

commanders both PAC and LANT. In effect, this program

established total carcass quantity and condition visibility

of selected repairable items by requesting a one time in-

ventory by all stocking activities, including the ships.

Hopefully, this may have some impact on the NIS repairable

problem stated earlier in this section.

39

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VI. USE OF 3M DATA

As mentioned earlier in section IV, 3M data was obtained

from FMSO for analysis. As a tool of the type commander, it

was hypothesized that this information could be correlated

with CASREPT data to provide some predictive model which

might be utilized effectively in the management of repairables,

Under the current 3M material reporting system, excep-

tion reporting is used to report those usage items which

result in work stoppages or that are used in specified equip-

ments identified by certain project codes. It was antici-

pated that this data could be used to show some pattern of

high frequency of work stoppage prior to an item appearing

on the NIS CASREPT list. Unfortunately, several problem

areas were discovered which minimized the usefulness of the

3M data:

a. The material usage historical file format for 3M

is different from CASREPT data. CASREPT data can be re-

trieved by APL, FUN or frequency sequence, whereas 3M

data is essentially maintained in EIC sequence. Conse-

quently, a correlation of CASREPT with 3M usage data would

have to be accomplished manually.

b. There is a significant lag time inherent with 3M

data (approximately 3 months) which complicates correlation

with CASREPT data.

c. 3M is an exception reporting system which only

shows material usage/work stoppages for specified equipments.

40

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d. Accuracy of 3M material usage data is questionable.

Informal telephone conversations with representatives

from FMSO and SPCC indicate little or no utilization of sur-

face unit 3M material usage data for the reasons cited above

41

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VII. CONCLUSIONS AND RECOMMENDATIONS

Sections IV and V of the thesis discussed CASREPT

statistics and the managerial breakdowns related to the

NIS repairable problem. The importance of this type of

supply breakdown, and its resulting effect on the fleet,

was highlighted through stratification of the CASREPT data,

and an analysis of the average total time CASREPTS were

outstanding for various categories. It is emphasized that

this combination of gross numbers and the length of time

outstanding is the true measure of the severity of the

CASREPT problem.

The identification of 35 line items, which were res-

ponsible for approximately 350 CASREPTS during FY 74, pointed

out the snowballing effect which quickly develops for NIS

repairables due to long procurement lead time. Although

several echelons of management retain responsibility for

repairable item management, it is apparent that little can

be done at the applicable ICP (when the NIS repairable pro-

blem occurs) due to this lengthy lead time and the lack of

visibility of shipboard assets.

For these reasons, it is felt that the type commander

is in the best management position to identify and handle,

through fleet control procedures, critical items of a

repairable nature. Specifically, the type commander is in

the best position to:

42

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a. weigh the importance of individual unit's requests

for scarce assets based on operating schedules and general

shipboard readiness,

b. monitor shipboard asset status of critical items

through CASREPT information and fleet control inventory

reports,

c. control shipboard asset redistribution,

d. control and monitor supply department procedures

for handling retrograde shipments of critical repairable

assemblies.

The high procurement cost and limited sources of supply

for repairable assemblies dictate a system of repairable

replacement with the base stock kept at a minimum and

performance keyed to the TAT of system assets. The success

of this system is based on managerial control of all related

supply activities at all echelons. Type commander designa-

tion of certain critical items as fleet control insures

rapid shipboard turn-in of NRFI and better control of RFI

assets carried aboard PACFLEET/LANTFLEET ships. However,

it does not insure a specialized managerial control for

rapid turn-around and ultimate redistribution of assets

throughout the many support echelons of the supply system.

Consequently, there does exist a need to integrate manage-

ment control of ICP NRFI assets with associated fleet

control RFI assets to maintain an overall control of these

designated critical assets. In this regard, it is felt

that some form of special coordination is required between

43

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the TYCOMS and the applicable ICP for designated fleet

control repairables.

A final item of suggested change is in the area of

early identification of supply deficiencies. Although

the current 3M system is designated to provide information

on systems reliability and parts requirements, it is

apparent to the authors that these provisions cannot be

meaningfully met at present. There appears to be no

reason/ however, why TYCOM level modifications could not

be introduced to fulfill these needs. One example of the

type of change which could be instituted would merely pro-

vide for the priority handling of 3M reports on designated

new equipments or systems. This in turn would allow

managers on the TYCOM level to monitor repairable part

failure rates in order to verify mean-time-between-failure

data used in inventory management models. Although no

verification of this hypothesis was attempted, it is felt

that this could be a significant factor in the current

repairable item NIS problem.

The data processing facilities available at DPSCPAC

and FMSO to the type commander/ICP offer tremendous oppor-

tunities for improved management of all activities related

to repairable assemblies. However, an understanding and

awareness of the actual magnitude and direction of the

repairable problem is required at all levels before deci-

sive action can be taken.

44

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The outlook for the current situation is not pro-

mising. The introduction in the near future of signi-

ficant numbers of new ships (DD-963, PF and DLGN Classes)

will enable the retirement of the remainder of the World

War II and Korean War vintage units. The composition of

CRUDESPAC at that time will reflect almost entirely the

technological advances in electronics and propulsion made

in the last twenty years. At the same time, the increased

sophistication and cost of not only the exotic electronic

suites, but also of the installed engineering plants and

weapons systems aboard these ships, will have dictated

an increasing reliance on repairable assemblies. Unless

steps are taken to increase managerial control of these

parts, at all echeloxis within the supply system, the

result will be the continued degradation of force readiness.

45

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VIII. INDICATED AREAS OF FURTHER STUDY

In the course of this thesis several areas of addi-

tional study became apparent which, because of time or

funding constraints, were not able to be investigated.

They are listed here to assist follow-on researchers in

this area;

a. An analysis of the correlation between high re-

dundancy CASREPT repairable items and length of time an

item of equipment has been in the fleet.

b. An analysis of actual and predicted mean-time-

between-failure rates used in determining support levels,

c. . Further analysis of SPCC cognizant items to

determine reasons for the extraordinarily high rate of

NIS repairables.

d. Further study of 3M data for correlation with

current material supply support usage data at the appli-

cable ICP.

46

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COSAL COMPUTATION MODEL

PART I

THE APL

PART II

THECONFIGURATION

BASELINE

FIGURE 1

47

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CRUDESPAC TRENDS

SHIP

OPERATING

DAYS

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MORE THAN

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49

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Length of COMCRUDESPAC CASREPTS for NIS Parts

Period May-October 1974

Average Down TimeNumbers Of Days Repair As % Of

Unit

Repairable

Parts Outstanding Time (Days)

52.2

Total

CGN-9 4 209 79.5

Non-Repairable 3 54 18.0 20.5

Total 7 263 37.6

DD-826 Repairable 2 93 46.5 86.9

Non-Repairable 2 14 7.0 13.1

Total 4 107 26.8

DDG-15 Repairable 4 193 48.2 77.2

Non-Repairable 6 57 9.5 22.8

Total 10 250 25.0

DDG-31 Repairable 4 188 47.0 73.2

Non-Repairable 5 69 13.8 26.8

Total 9 257 28.6

DLG-30 Repairable 4 288 72.0 81.1

Non-Repairable 6 67 11.2 18.9

Total 10 355 35.5

DE-1041 Repairable 4 105 26.2 76.1

Non-Repairable 4 33 8.2 23.9

Total 8 138 17.2

DE-1088 Repairable 3 88 29.3 56.8

Non-Repairable 4 67 16.8 43.2

Total 7 155 22.1

DE-1071 Repairable 1 53 53.0 60.9

Non-Repairable 2 34 17.0 39.1

Total 3 87 29.0

AD-37 Repairable 1 161 161.0 63.9

Non-Repairable 1 91 91.0 36.1

Total 2 252 126.0

Total Repairable 27 1378 51.03 73.92

Non-Repairable 33 486 14.72 26.07

Total 60 1864

FIGURE 6

31.06

52

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Population and Sample Data

CLASS SHIP POPULATION SIZE OF UNITSBREAKDOWN TYPE BY TYPE SAMPLE CHOSEN

1 CG 1 2 CGN-9

CGN 1 DLG-30

CLG 1

DLG 10

DLGN 3

2 DD-710

DEG

7

3

1 DD-826

3 DD-945 5 2 DDG-15

DDG 17 DDG-31

4 DE-1037

DE-1040

1

5

1 DE-104:

5 DE-1052 20 2 DE-107

DE-1078 4 DE-1081

6 AD

AVM

4

1

1 - AD-37

Total 83

FIGURE 8

54

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BIBLIOGRAPHY

Brennan, G. E. and Starkey, G. L, , An Investigation ofthe Independence Betv/een Supply Echelons for the ShipsSupply Support Study , M.S. Thesis, Naval PostgraduateSchool, Monterey, California 1973.

Bureau of Naval Personnel, NAVPERS 10487, Supplying theNavy, U.S. Government Printing Office, 1967.

Commander Cruiser Destroyer Forces, Pacific, Instruction5000. 3E of 11 April 1973, CRUDESPAC regulations .

Hakemian, R. G., "Supply Support - Part I the AllowanceParts List (APL)," NAVSEA Journal , v. 23, no. 6, p.4-9, June 1974.

Hakemian, R. G. , "Supply Support - Part II the ConfigurationBaseline," NAVSEA Journal , v. 23, no. 7, p. 4-7,July 1974.

Hakemian, R. G., "Supply Support - Part III the CoordinatedShipboard Allov/ance List (COSAL) Computation," NAVSEAJournal , v. 23, no. 8, p. 5-10, August 1974.

Material Division (OP-41) , Deputy Chief of Naval Operations(Logistics) , Second Interim Report, Ships Supply SupportStudy , by the Ships Supply Support Study Group, 14August 1972.

Naval Postgraduate School, Monterey, Report NPS 55Rh72121A,A Stochastic Model of a Repairable Item InventorySystem , by F. R. Richards, December 1972.

Naval Supply Systems Command, NAVSUP Publication 485,Afloat Supply Procedures , 24 September 1974.

Navy Fleet Material Support Office, Equipment IdentificationCode Master Index of July 1974.

Navy Fleet Material Support Office, REPT NO MSO 4790 S. 2663,Report 358A Part Data for Supply Source Codes - by EIC .

Navy Fleet Material Support Office, REPT SYM SUP 4400.28-111-9 for the Period Ending 30 June 1974, ConsolidatedCASREPT Reporting System.s .

157

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Navy Ships Parts Control Center Message Date-Time-Group051912Z October 1974, Subject: Fleet IntensifiedRepairables Management (FIRM) Inventory .

Navy Ships Parts Control Center, Publication No. 9 Indexof Electronics Equipments of 1 April 1974.

Straub, D. R. , "Supply Support - Part IV the AllowanceChange request (ACR) ,

" NAVSEA Journal , V. 23, No. 9,

p. 6-10, September 1974.

158

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DISTRIBUTION LIST

Copies

Defense Logistics Studies 1Information Exchange (DLSIE)

Fort Lee, Virginia 23801

Defense Documentation Center 2

Cameron StationAlexandria, Virginia 22314

Library, Code 0212 2Naval Postgraduate SchoolMonterey, California 93940

Department Chairman 1Code 5 5

Department of Operations Researchand Administrative Sciences

Naval Postgraduate SchoolMonterey, California 93940

LCDR Gerald G. Lutz 5

#7 Forest Rise PlaceMonterey, California 93940

LT Walter M. Wasov/ski 11146 Chaparral RoadPebble Beach, California 93953

LTJG Marnee Finch 1NPO 556USNAVFACPatrick, AFB, Florida 32925

LT Dan C. Boger^

1Code 55Naval Postgraduate SchoolMonterey, California 93940

Professor F. R. Richards 1

Code 55Naval Postgraduate SchoolMonterey, California 93940

159

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