COST REDUCTION AND MANAGEMENT IMPROVEMENT PROGRAM FOR FY-68 AND FY-69

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP70B00501R000100010014-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: December 9, 2016
• Document Release Date: June 26, 2001
• Sequence Number: 14
• Publication Date: August 25, 1967
• Content Type: MF

Approved For ReleaJ001/08/07: CIA-RDP70B00501 R000W10014) A -/0
DD /u& 2#3q577-67
25 August 1967
MEMORANDUM FOR: Comptroller, Directorate of Science and
Technology
SUBJECT : Cost Reduction and Management Improvement
Program for FY-68 and FY-69
REFERENCE : A. Memo fr Compt/DS&T to D/OCS dtd
7 Aug 67, same subject
B. Memo fr O/PPB to Chiefs of Offices,
Staffs and Operating Divisions, dtd
1 Aug 67, same subject
C. BoB Circular No. A-44 Revised, dtd
29 Mar 65
1. Forwarded herewith are Cost Reduction and Management
Improvement Program Forms (No. 2500) in response to Reference A.
2. Four actions have been detailed which project cost reduction
or management improvement in FY-68 and FY-69:
Savings
FY-68 FY -69
CRP-l Security Automated Name Check
Activity (SANCA)
2 Automated Computer Utilization
Logs
3 Reduction in Contractor Support
to Computer Projects
Automatic Flow Charting of
Computer Programs
1: .1
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Excluded from antomatt(
downgrading and
deciasslticatlon
SECRET cccua't
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3. The provision of central ADP services to various user
offices contributes to cost reductions in the functions of these
offices. The assessment of these savings should be made by the
offices receiving this support, giving due consideration to the cost
of the computer support.
4. As you know, OCS has taken action to purchase approxi-
mately equipment in lieu of continued
rental of this equipment. The intent and result of this action is
clearly a cost reduction; however, it has not been possible to report
this action in the format of Form 2500. The crux of the problem lies
in the fact that this form only allows for actions in FY-68 and 69
which produce savings in those years, whereas, the true savings from
our FY-68 equipment purchase does not occur until the end of FY-71
when accumulated rental savings will have equalled purchase and
maintenance costs. The savings from that time. on will amount to
approximatel
5. It is recommended that the cost reduction item described
above be reported to the Office of Planning, Programming, and
Budgeting in narrative form for inclusion in the Agency's report
to BoB.
CHARLES A. BRIGGS
DArector of Computer Services
Attachments : a / s
Distribution:
Orig + 1 - Adse
1 - D/S&T Registry
1 - OCS/Admin
2 - O/D/OCS (Subject & Chrono)
D / OCS ru:4011(2 5Aug 67)
S E C R E T
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 Approved For Relea4&2001/0 /Q7SF I - DP70B00501R00040010014-9
en j e n)
OFFICE CONTROL NO.
-
Central Intelligence Agency OCS CRPI
COST REDUCTION AND MANAGEMENT IMPROVEMENT PROGRAM
DATE
23 August 1967
1. PROJECT OR ACTION TITLE
Security Automated Name Check Activity (SANCA)
TEGORY
BC
3. NATURE OF REPORT
A
2. PROGRAM CATEGORY AND PROGRAM SU
-'
V
11
PROPOSED
Information Processing/ Central ADP Services
AMENDMENT OR REVISION
4. COST REDUCTION CATEGORY (check one)
5. NATURE OF SAVINGS
A. 11NCR E,A SED PRODUCTIVITY AND EFFICIENCY
RECURRING
J
8. ELIMINATION OF LOW PRIORITY ACTIVITIESr SUBSTITUTION OF LESS COSTLY ALTERNATIVES
NONRECURRING
??
MANAGEMENT AND PROGRAM EFFECTIVENESS
'~ '??? :~? ?`?'~'??'?'?'' '
'
C
8. BRIEF DESCRIPTION OF'PROJECT OR ACTION (include implementation plan and timetable; if this is an amendment or2 5X1
revision, explain changes)
During the 3rd quarter of FY 68, computer pros es for maintenance, search, and
information retrieval activities concerned with
ds will be converted from a batch processing computer system to an on- ine,
recor
This change will greatly improve service by permitting periodic
t
em.
time-sharing sys
d in the central computer from terminals
t
ore
processing throughout the day of the files s
is done
i
ng
located in the Office of Security. Under existing batch procedures, process
only once in a 24-hour period. In addition, processing costs for computer operations
ill be si nificantly. reduced; from 200 hours per month to 50 hours per month, from
w
8. ESTIMATED SAVINGS ACCOMPLISHED IN CURRENT
7. ESTIMATED SAVINGS GOALS
YEAR
. {4 ....::::::..:: :v.~: ?
CURRENT NEXT
FIRST HALF YEAR TOTAL FISCAL YEAR
FUNDS (Personal Services)
FUNDS (Other)
TOTAL
MAN-YEARS
0. ACTUAL USE OF SAVINGS *
9. PROPOSED USE OF SAVINGS
FIRST HALF YEAR TOTAL FISCAL YEAR
$
A. USE TO FINANCE INCREASED COSTS. SUCH
PAY INCREASES
$
B. APPLY TO PRODUCTION OF MORE UNITS OF
$
C. APPLY TO RAISE QUALITY OF SERVICE OR
PERFORMANCE
$ $
D. USE TO FINANCE SOME OTHER APPROVED P
OR ACTIVITY
$ $
E. PLACE IN RESERVE OR APPLY TO REDUCIN
PRESIDENT'S BUDGET
+ EXPLAIN ITEMS 9 and 10 ON SEPARATE SHEET
It. RECOMMENDED BY (Office Head or Designee) DATE 12. APPROVED FOR AGENCY BY DATE
23Au 67
q
e
. 11- 13-42)
FORM 2500 OBSOLETE PREVIOUS SECRET "'"?,'"?:""N1Np1 ??"
7. 66 AI3O9-oved For Release 2001/08/07 :CIA-RDP70BOO501 R000100010014-9
 Approved For Releas 001/08/07 : CIA-RDP70B00501R000IW10014-9
ATTACHMENT TO COST REDUCTION AND MANAGEMENT IMPROVEMENT
PROGRAM, Form 2500 - OCS - Control No. CRP-1
Explanation of Item 9 "Proposed Use of Savings"
This relatively modest amount of personnel funds savings
(4, 000) will be applied to normal increases in the personnel costs of
the Office which result from pay raises, grade increases, and step
increases. Trends in computer service requirements indicate that
it would be judicious to apply the savings in "other funds" (23, 750)
equally among the objectives of: (a) producing more units of work;
(b) raising the quality of service; and (c) financing other approved
programs and activities.
Approved For Release 2001/08/07 : CIA-RDP70B00501R000100010014-9
 Approved For Release..2001/08/07 ?NA4bP70B005O1R000WO10014-9
(WFen Filled In)
OFFICE CONTROL NO.
Central Intelligence Agency OCS CRP-2
COST REDUCTION AND MANAGEMENT IMPROVEMENT PROGRAM
DATE
23 August 19 67
I. PROJECT OR ACTION TITLE
Automated Computer Utilization Logs
PROGRAM CATEGORY AND PROGRAM SUBCATEGORY
2
3. NATURE OF REPORT
.
i
X PROPOSED
ces
Information Processing/ Central ADP Serv
MENT OR REVISION
AMEND
4. COST REDUCTION CATEGORY (check one)
5. NATURE OF SAVINGS
A. INCREASED PRODUCTIVITY AND EFFICIENCY
X
RECURRING
B. ELIMINATION OF LOW PRIORITY ACTIVITIESI - SUBSTITUTION OF LESS COSTLY ALTERNATIVES
NON RECURRING
c MANAGEMENT AND PROGRAM EFFECTIVENESS
6. BRIEF DESCRIPTION OF'PROJECT OR ACTION (include implementation plan and timetable; if this is an amendment or
revision, explain changes)
In October 1967, IBM 360 computer operating systems will be modified so that
utilization data by date, time, job, programmer, and function will be automatically
generated as jobs are processed on the various computer systems. This will
replace the present procedures which require that computer operators manually
log such data. Savings from this action are not quantifiable. Benefits are in
the form of:
--Greater accuracy in recording utilization data and preparing utilization
reports
--Reduced demands on operator's time which makes it possible to devote
more attention to quality control and other computer functions
7. ESTIMATED SAVINGS GOALS
B. ESTIMATED SAVINGS ACCOMPLISHED IN CURRENT
YEAR
CURRENT
NEXT
FISCAL YEAR
FISCAL YEAR
FIRST HALF YEAR
TOTAL FISCAL YEAR
FUNDS (Personal Services)
$ 0
$ 0
$
$
FUNDS (Other)
0
0
$
$
$
$
TOTAL
O
0
MAN-YEARS
O
O
10. ACTUAL USE OF SAVINGS
9. PROPOSED USE OF SAVINGS +
AMOUNTS
FIRST HALF YEAR
TOTAL FISCAL YEAR
A. USE TO FINANCE INCREASED COSTS. SUCH AS
$
0
5
$
PAY INCREASES
8. APPLY TO PRODUCTION OF MORE UNITS OF WORK
$ 0
$
$
C. APPLY TO RAISE QUALITY OF SERVICE OR
$
0
$
$
PERFORMANCE
D. USE TO FINANCE SOME OTHER APPROVED PROGRAM
$
0
$
$
OR ACTIVITY
E. PLACE IN RESERVE OR APPLY TO REDUCING
$
$
$
PRESIDENT'S BUDGET
0
+ EXPLAIN ITEMS 9 and 10 ON SEPARATE SHEET
11. RECOMMENDED BY (Office Heed or Designee)
DATE
12. APPROVED FOR AGENCY BY
DATE
Charles A. Briggs
23Aug67
FORM OBSOLETE PREVIOUS SECRET (1.13.42)
7.66 2500 ED'Af5toved For Release 2001/08/07: CIA-RDP70BOO501R000100010014-9
 Approved For Release 2001/08/07 ~ - DP70B00501R000100010014-9
(When Filled In) _
25X1A
Central Intelligence Agency
OFFICE
CONTROL NO.
COST REDUCTION AND MANAGEM
NT
OCS
CRP 3
E
IMPROVEMENT PROGRAM
DATE
23 August 1967
1. PROJECT OR ACTION TITLE
Reduction in Contractor Support to Computer Projects
2. PROGRAM CATEGORY AND PROGRAM SUBCATEGORY
3. NATURE OF REPORT
PROPOSED
Information Processing/ Central ADP Services
M
AMENDMENT OR REVISION
4. COST REDUCTION CATEGORY (check one)
5. NATURE OF SAVINGS
X
A. INCREASED PRODUCTIVITY AND EFFICIENCY
X
RECURRING
B. ELIMINATION OF LOW PRIORITY ACTIVITIESI SUBSTITUTION OF LESS COSTLY ALTERNATIVES
NONRECURRING
c. MANAGEMENT AND PROGRAM EFFECTIVENESS
P
BRIEF DESCR
P
I.
I
TI
ON
O
F
'
R
OJECT OR ACTION (include implementation plan and timetable; if this is an amendment or
revision, explain changes)
In FY-68 contractor personnel supporting problem analysis, system design, and
programming activities for computer applications will be reduced and staff personnel
for these activities will be increased. For FY-67 and FY-68 the level of contractor
25
support is estimated respectively. Assuming an equal
competence between s ap rsonne an contractor personnel, and an avera a cost
savings man year from the use of staff personnel, a savings
is anticipated in FY- 8.
CURRENT
O
VI
NG
G
A
L
S
7. ESTIMATED
S
A
SAVINGS
YEAR 25,
FIRST HALF YEAR TOTAL FISCAL YEAR
FUNDS (Personal Services)
$
FUNDS (Other)
TOTAL
MAN-YEARS
9. PROPOSED USE OF SAVINGS * 10. ACTUAL USE OF SAVINGS *
FIRST HALF YEAR TOTAL FISCAL YEAR
A. USE TO FINANCE INCREASED COSTS. SUCH
$
PAY INCREASES
8. APPLY TO PRODUCTION OF MORE UNITS O
C. APPLY TO RAISE QUALITY OF SERVICE OR
$
PERFORMANCE
D. USE TO FINANCE SOME OTHER APPROVED
$
OR ACTIVITY
E. PLACE IN RESERVE OR APPLY TO REDUCING $ $
$
PRESIDENT'S BUDGET
* EXPLAIN ITEMS 9 and 10 ON SEPARATE SHEET
It. RECOMMENDED BY (Office Head or Designee)
DATE
12. APPROVED FOR AGENCY BY
DATE
Charles A. Briggs
8/23/67
1A
Approved For Release 2001/08/07 CIA-RDP701OO501R000100010014-9
 Approved For Release '94O1/08/07 : CIA-RDP70B00501 R000106fi 0014-9
ATTACHMENT TO COST REDUCTION AND MANAGEMENT
IMPROVEMENT, Form 2500 - OCS - Control No. CRP-3
Explanation of Item 9 "Proposed Use of Savings"
Since this savings is possible only with increased staff
personnel, a portion of the savings should be used to finance
increased costs such as pay increases, training, travel, etc.
Trends in computer service requirements indicate that the
remainder of the savings should be applied to producing more
units of work, raising the quality of service, and financing
other approved computer programs and activities. An equal
distribution of the savings to these four objectives is proposed.
Approved For Release 2001/08/07 : CIA-RDP70B00501R000100010014-9
 Approved For Releasem2001/08fQZe~ Y i 30B00501R000 010014-9
Central intelligence Agency
OFFICE
OC
S
CONTROL
COST REDUCTION AND MANAGEMENT IMPROVEMENT PROG
V
CRP-4
RAM
-
DATE
23 August 19 67
1. PROJECT OR ACTION TITLE
Automatic Flow Charting of Computer Programs
2. PROGRAM CATEGORY AND PROGRAM SUBCATEGORY
3. NATURE OF REPORT
Information Processing/ Central ADP Se
i
X
PROPOSED
-
rv
ces
AMENDMENT OR REVISION
4. COST REDUCTION CATEGORY (check one)
5. NATURE OF SAVINGS
A. INCREASED PRODUCTIVITY AND EFFICIENCY
X
RECURRING
B. ELIMINATION OF LOW PRIORITY ACTIVITIESI SUBSTITUTION OF LESS COSTLY ALTERNATIVES
NONRECURRING
C, MANAGEMENT AND PROGRAM EFFECTIVENESS
:?:::;::tip.;:~ ;}::': :
. ................... . ....
6. BRIEF DESCRIPTION OF'PROJECT OR ACTION (include implementation plan and timetable; if this is an amendment or
revision, explain changes)
During FY-68 and 69 an automatic flow charting system (AUTOFLOW) will be used
to replace laborious manual flow charting. At present, rough, manual flow charts
are used during the development of a computer program. After programs become
operational, these flow charts are put in finished form and become a part of the
documentation of the computer system. Changes in computer programs require
updating and re-drawing of flow charts from time-to-time. Also, some computer
programs are obtained from other computer users without complete documentation. 25X1
In this situation, the AUTOFLOW system can be used to prepare flow charts and to
generate data about the program which facilitates the pro rammer's analysis of the
program. It is estimated that t
each year. Offsetting costs are
A EN
. ...?. ,non;,;.'-n-.:.: ;:.~:: ------- --- YEAR
CURRENT NEXT
FIRST HALF YEAR TOTAL FISCAL Y EZ6X1
FUNDS (Personal Services)
$
FUNDS (Other)
--~-- -
$
TOTAL
MAN-YEARS
?
9. PROPOSED USE OF SAVINGS ^ ACTUAL USE OF SAVINGS
F
IRST HALF YEAR TOTAL FISCAL YEAR
A. USE TO FINANCE INCREASED COSTS. SUCH
$
PAY INCREASES
APPLY TO PRODUCTION OF MORE UNITS OF
9.
$
. APPLY TO RAISE QUALITY OF SERVICE OR
C
$
PERFORMANCE
0. USE TO FINANCE SOME OTHER APPROVED PR
$
OR ACTIVITY
E. PLACE IN RESERVE OR APPLY TO REDUCING $ 3
$
PRESIDENT'S BUDGET
EXPLAIN ITEMS 9 and 10 ON SEPARATE SHEET
11. RECOMMENDED BY (Office Heed or Designee)
DATE
12. APPROVED FOR AGENCY BY
DATE
Charles A. Briggs
8/ 23/67
FORM OBSOLETE PREVIOUS
2500 EDITIONS SECRET
7.66
Approved For Release 2001/08/07: CIA-RDP70B00501 R000100010014-9
 Approved For Release2001/08/07 : CIA-RDP70B00501R0001*0010014-9
ATTACHMENT TO COST REDUCTION AND MANAGEMENT
IMPROVEMENT PROGRAM, Form 2500 - OCS - Control No. CRP-4
Explanation of Item 9 "Proposed Use of Savings"
Since this action produces more units of work and improved
quality of service, it is proposed that savings be used to finance
further actions of this type.
Approved For Release 2001/08/07 : CIA-RDP70B00501R000100010014-9