ANALYSIS OF AGENCIES COMPUTERIZED FINANCE AND RESOURCE MANAGEMENT SYSTEM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85-00988R000700020001-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 149
• Document Creation Date: December 16, 2016
• Document Release Date: July 1, 2005
• Sequence Number: 1
• Content Type: REPORT

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MANAGEM NT SYSTEM
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MEMORANDUM FOR: Director of Logistics
SUBJECT-: ADP Systems Study
1. Attached is a study entitled "Analysis of Agencies
Computerized Finance and Resource Management System." That
study identifies components of the finance and resource
management system and their operating characteristics in order
to flag inefficiencies and recommend alternatives. Recommendations
contained in paragraph four were an integral part of that study
and are being forwarded for review and approval consideration.
2. The computerized system network consists of four stand
alone ?systems (SAS) maintained independently of ICS, several
internal systems under the command jurisdiction of OL, and OL
controlled systems designed for interfacing with components of
DOD and the Office of Finance. Maintenance responsibilities for
the four, SAS are as follows;
Data bases for the SAS
network house essentially the same data elements, yet these
systems
Data elements resident to
other systems
were programmed independently often in. different languages.
as well as agent
With this mOnor exception data
include those common to the
names, equipment frequency, etc.
elements residing in the network
are roughly comparable to those in ICS.
T.
CONFIBENIIAL
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Subject: ADP Systems Study
3. Internal OL administered systems belong to two classes;
first, those already operational and; second, those in various
stages of design. CONIF and AWCS are illustrative of the former
class whereas PARS, the Vehicle Control System and the stand
alone procurement system represent the latter. Like the SAS
network, this component consists of independently programmed
applications. Item Identification Branch, SD, .manages one system
which interfaces with the Defense Logistics Services Center. This
application, together with that designed to bridge data to the
Office of Finance, constitute the only computerized interfaces of
the network. The configuration of this network contributes directly
to inefficiency and exorbitant overheads. The design of an integrated
system offers the most promising option for improving performance
capabilities of the total system at less cost. Integration has
the potential of increasing operational efficiency because ICS
and other updates translate into system updates which decreases
dependency on manual update.
4. Analysis of Supply Division workload factors confirm a
downward spiral. This trend is believed attributable to five
factors; first, external components are relying increasingly on
SAS networks for resource management which tends to decrease
reliance on logistics; second, the Director of Central Intelligence
C3EliLlEti
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25X1
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Subject: ADP Systems Study
routine logistic support which is certain to impact on logistics
in terms of reduced workloads; third, certain operational
programs are being retrenched or deactivated altogether; fourth,
recent OC procurement of organic spares required to maintain major
systems for their entire life expectancy, together with purchase of
repair and return materiel from direct materiel procurement
allotments, has resulted in a decrease in transaction processing
because directs are excluded from formal accountability, and; fifth,
inability of the computerized system to flag repetitive demand to
provide a wider base for stockage. Implementation of an integrated
system will reverse this trend and permit logistics to play a more
positive role in resource management.
5. Based on the foregoing it is recommended that:
a. Staffing of the Systems Analysis Branch be
expanded to include logisticians having credentials
in automation technology in order to esynthesi;-:?.
requirements of operating components for reduction
to design specifications;
b. Operating Divisions organize a cadre of system
analysts to formulate data processing requirements in
response to guidance from sAa
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Subject: ADP Systems Study
c. Systems personnel be tasked to define
specifications for an integrated system together
with a sound strategy for implementation.
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TO : Chief, Supply Division
SUBJECT: Analysis of ICS - Limitations and Capabilities
1. This study is being submitted in response to your request that
limitations and capabilities of ICS be analyzed, particularly with reference
to its capability to interface with; a) internal computer systems such as
etc, serving components other than OL; b) external DOD
computerized systems and; c) other OL stand alone systems now operational
or in the process of being implemented such as CONIF, AUCS, EARS, etc. It was
also requested that the performance capabilities of ICS be related to current 25X1
and future ADP requirements.
represents the most critical element of the Agency logistic system. This stems
from the fact that resources allotted to these,systems are divisible into shelf
stocks positioned at forward storage facilities for release in response to 25X1
demand with residual resources emplaced for operational use. Four independentry
programmed and maintained computer applications have been activated to exercise
budget and management control over this network; namely,
25X1 lone common denominator links this system network
together. That linkage derives from the fact that the four computerized systems
have the capability to control the acquisition, storage, maintenance, and
distribution of electronic resources. Basically, the mission of ICS can be
expressed in similar terms which makes this system network compatible in terms
of intent and purpose but incompatible in terms of maintenance and operation
because the four systems exist independently of one another.
3. Collectively, the dollar value of materiel prepositioned at foreward
storage facilities (stock), monthly transaction counts, and the number of line
'IgX1
Items maintained in the four stand alone systems (SAS) are nearly comparable
to their counterparts in ICS. This proposition can be confirmed by contrasting
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SUBJECT: Analysis of ICS - Limitations and Capabilities
line items were maintained at CD as of 31 Dec. 1977 compared to an estimated
12100 for SAS the count of which is predominately non-expendable. Comparision
of these quanta lead to the conclusion that system workloads are nearly evenly
divided between ICS and the SAS network. One notable difference exists between
these systems; namely, ICS engages in volume processing whereas SAS transactions
normally represent singular equipment transactions. Original versions of SAS
were designed to achieve low level data processing tasks. Enhancement of these
early versions augmented the applicable components inventory management and
control potential. This, in turn, encouraged components to become more actively
involved in resource management responsibilities. Seemingly, the shift toward
decentralization impacted on ICS in terms of declining workload.
4. The four SAS were programmed independently of ICS and one another,
often in different data base management or programming language. This
exclusionary principle is also an essential property of peripheral OL
systems now operational or soon to be activated in logistics. FARS, AWCS,
CONIF, and ICS clearly demonstrate the ascendancy and acceptance of SAS
doctrine. Systems included in this network may be individually efficient
and yet be extremely inefficient from the stand point of total system operations
This contradiction is attributable, in part, to the fact that the output of one
system must be manually entered in the next system of the data processing chain.
Thus file updates in the ICS/SAS network entail double inputs which increases
overheads. Elements of this system are so numerous and complex that it is pro-
bably not feasible to link the system together via computerized interface. Five
reasons contribute to inefficiencies and high maintenance cost associated with
this network; first, systems comprising the network must be programmed and
enhanced separately which increases development costs; second, duplicate keying
of identical or similar inputs for updating these systems increase manpower
burdens and computer costs; third, file redundancies exist throughout the network
which increases computer utilization costs; fourth, yields associated with
Integration are forfeited in SAS networks because enhancements must be implemented
separately which is not true of the integrated system and; fifth, the continued
activation and deactivation of different software systems essential to the
operation of the ICS/SAS network is extremely costly.
25X1
5. Supply Division workload factors have decreased rather precipitously in
recent years. This decrease is believed attributable to the interplay of five
factors which are self reinforcing; first, the Director of Central Intelligence
maintained by cognizant offices have decreased dependance on logistics; third,
accentuation of trends to purchase organic spares and repair/return materiel
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SUBJECT: Analysis of ICS - Limitations and Capabilities
from direct materiel procurement allotments, the accountability of which is
excluded from ICS, has decreased transaction densities in ICS; fourth,
implementation of systems designed to control the acquisition, storage,
surveillance, and distribution of the logistic resource such as the computerized
repair/return system recently programmed for OC to control 15,000 line items
outside the formal supply system, and; fifth, the throttling down or deactiviation
of operational activities.
6. Certain propositions described earlier can be verified statistically.
For example, ICS processed an estimated 9834 transactions monthly in FY75, 6492
monthly in FY76, 6450 monthly in 77, and 5526 monthly so far in FY78. Similarly
procurements financed from direct materiel procurement allotments, expressed in
dollar terms, accounted for 57% of total purchases in FY76, 69% in TQ, 77%
in FY77, and approximately 80% to date in FY78. Statistically it can be argued
that ICS processing levels are decreasing as a result of direct shipments. This
phenomena can ue reversed; provided, ICS is redesigned in such a manner that it is
capable of flagging repetitive demand and the trend toward decentralization is
reversed. The impact of decentralization is best illustrated by example. Supply
Division maintained 13,257 line items at CD as of 31 Dec. 1977. Assuming OC's
computerized repair/return system spans control of 15000 line items rici that the
four SAS continue to manage approximately 12100 line iters in the future, external
systems will control twice as many line items as ICS. If these trends materialize
In the future they may lead to a totally decentralized system in which logistics
plays quite a different role in resource management.
7. Factual data for the analytical phase of the study was assembled on the
basis of personal interviews, dollar value distribution reports furnished by
Office of Finance, statistical reports provided by SOB and DCB, and special
computer reports supplied by DCB. Raw data was subject to a verification rate
approaching ninety percent. Accordingly, a certain margin of error may be
Inherent in the study. These errors, however, are not sufficient magnitude to
distort projections presented therein or negate the validity of the study.
8. The study concludes that present trends toward decentralization can be
reversed through the design of an integrated inventory management and control
system. Concurrently, it is concluded that efficiency and economy of operations
can be maximized through integration.
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25X1
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ANALYSIS
OF
AGENCIES COMPUTERIZED
FINANCE AND RESOURCE
MANAGEMENT SYSTEM
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S..
TABLE OF CONTENTS
1. PURPOSE Page 1
2. LEGISLATIVE AND REGULATORY SETTING 1
a. CURRENT 1
b. PROPOSED 4
3. SYSTEMS INTEGRATION STANDARDS 5
4. SCOPE AND INTENT 7
5. CHARACTERISTICS OF INVENTORY MANAGEMENT SYSTEM 8
6. SYSTEM DATA FLOWS 11
7. SYSTEM INTERFACES, DOCUMENT GENERATION, AND DECISION
MAKING POTENTIAL OF AUTOMATED SYSTEMS 14
8. QUANTITIVE ATTRIBUTES OF SYSTEM OPERATION AND
SYSTEM PERFORMANCE CHARACTERISTICS 17
9. ADP SYSTEM PLANNING FOR FUTURE - CAPABILITIES
AND LIMITATIONS 27
10. PROPERTIES AND PERFORMANCE CAPABILITIES OF
INTEGRATED SYSTEMS 37
11. CATALOGING INTERFACE 43
12. FINANCE AND ASSOCIATIVE INTERFACES 47
13. SYSTEM REVIEW AND APPROVAL STANDARDS 52
14. TRENDS AFFECTING DESIGN REQUIREMENTS OF ADP SYSTEMS 58
15. DOD SOFTWARE SYSTEMS 61
16. CONCLUSIONS 63
17. RECOMMENDATIONS 65
18. GLOSSARY OF TERMS 67
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1. PLECIMI:
Succeeding paragraphs describe characteristics of several inventory
management systems designed, developed and implemented independently of
the Logistics Inventory Control System (ICS). The objective of this
research effort is to determine whether or not the proliferation of
stand alone systems is in violation of statute, regulation, or operational
efficiency. Findings presented in this study must be regarded as pre-
liminary as time precluded comprehensive analysis
actual or planned autonomous systems operate.
Legislatizr_lattory Setting:
a. Current:
Exclusionary clauses in CIA enabling and
of environments
which
associative legislation
provides a basis for implementing financial property accounting and control
systems independently of statutes, regulations and GAO system audits per-
taining to other government instrumentalilities. This exclusionary feature
has seemingly been interpreted to mean the Agency nay adopt such procedures
as may be necessary to ensure compliance with both the spirit and intent of
legislation governing other executive agencies. The Agency s exemption
from GAO audits is directly traceable to statute. The Central Intelligence
Agency Act of 1949, as amended, states that the Agency may expend confidential
funds within approved limitations "without regard to the provisions of law
and regulation relating to the expenditure of Government funds." (50 U.S.C.A.
r
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403j(W) (See Appendix A). This act further states that the director's
certification on expenditure documents "shall be deemed a sufficient voucher
for the amount therein stated" and "are to be accounted for "solely on the
certification of the Director" or the Deputy Director per authority contained
in 41 Comp. Gen. 429 dated 2 January 1962. (Appendix D) Provisions of this
act have been interpreted to mean that audits "would be limited to deter-
mining that such certifications have been made" which precludes comprehensive
confidential fund audits by GAO.
Public law 04-863 reinforces the exclusionary principle by vesting
responsibility for the establishment and maintenance of internal property
control systems in the "head of each executive agency" (31 U.S.C. GG a (c))
(Appendix C). This individual is also responsible for executing such
internal audit procedures as may be necessary to protect the public interest.
This statute, in concert with decisions rendered by the Comptroller General,
authorizes the establishment of such CIA internal audit procedures as may
be deemed appropriate; providing only that comprehensive internal audits be
conducted to eilsure resource management and control. Viewed in this per-
spective the design of stand alone systems does not violate any known
statute or regulation. Moreover, development of autonomous systems is
consistent with past command directives. Paragraph 3, OL 2 0024a, dated
19 January 1972, provides a testimonial to this approach wherein it is
stated :;i)at "the Office of Communications and Technical Services Division"
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.?$-,';',-74fW7111 r
,
nay "wish to maintain certain in-use records under the new Materiel
Resources System." (Appendix D) Provisions of this memorandum also state
that this office (OL) is not qualified to address those requirements and
suggests that the Task Force (ODP) take up such questions with those offices
and other offices that might be concerned." The intent of 3L-2-092.4a was
not to delegate carte blanche authority for independent systehs development
to technical components, yet this interpretation did in fact prevail.
Accordingly, tire cellular approach to design became rooted in tradition.
Current organizational function and mission statements do not delegate
responsibility for ADP system design to either the Director of Logistics or
his designee
(Appendix E). Planned mission- updates, however, do
vest responsibility for the design of a worldwide supply system in the Office
of Logistics. Pursuant to provisions of the planned mission statement the
Director of Logistics is also responsible for establishing and approving pro-
perty accounting systems whether automated or manual. These responsibilities
Ar
derive from paragraphs c100 and (p) wherein it is stated that the Director of
Logistics shall "develop, establish, and administer a worldwide supply system"
and concurrently "establish and/or approve Supply Management systems for
maintenance of decentralized accountable records and their adoptations to
automated processes where necessary and cost effective." (Appendix F) Implicit
in these delegations is the responsiblity for the Director of Logistics to
periodically review all on-going systems to ensure effective control over the
acquisition, use, and accountability for the logistic resource.
^ ? ? '
? 111,-, Lu 4.1.e
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b. Proposed
Provisions of Title I, Section 113 of the proposed "National Intelligence
Reorganization and Reform Act of 1973", seemingly rescind previous legislation
concerning the applicability of legal and external regulatory requirements to
Agency operations. This legislation states that entities of the intelligence
community "shall be subject to financial and program management audit and
review by the Comptroller General of the United States", provided such audits
are either commissioned or approved by designated committees of the Congress.
(Appendix G) Pursuant to provisions of this act, the director has discre-
tionary authority to exempt certain activities from review for national
security reasons. Exercise of this authority, however, will require that
the director notify the appropriate Congressional committee of the exemption
together with reasons for granting it. This statute, unless amended, leaves
little latitude for interpretation with regard to the question as to whether
or not internal reviews are authorized.
41!1=1.0MWMMUM
Property-management reviews conducted by GAO are normally system audits
designed to determine whether or not; a) management information and control
systems are efficiently organized and administered and; b) management
policies and procedures are consistent with applicable legal and external
regulatory requirements such as those uefined in the "Budget and Accounting
Act of 1950, Public Law 04-863 approved August 1, 1956", etc. The "National
Intelligence Reorganization and Reform Act of 1970" does not specifically
exclude the intelligence community from statute and regulation, therefore,
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the act presupposes compliance. Given this setting, it seems safe to predict
that the director's authority to restrict the scope of audits and system
reviews nay be circumscribed. Assuming the Comptroller General rules that
compliance with legal and external regulatory requirements is mandated by the
act, GAO may recommend; a) adherence to accrual accounting procedures for
reasons of budgetary and property control; b) implementation of an inte-
grated inventory management and control system to eliminate waste associated
with the maintenance of a profusion of computerized systems performing
essentially identical tasks and; c) the adoption of a centralized line
item reporting and control system to provide better property accountability.
Currently a multitude of stand alone data bases must be accessed to deter-
mine the asset posture of a given item worldwide.
The "National Intelligence and Reform Act of MO" does not set forth
specific standards or objectives applicable to the comptroller general's
audit and review functions. Consequently, the precise impact of the act
cannot be anticipated at this time for planning purposes. Certain initiatives
might be .undertaken for preparatory purposes such as the design and implement-
ation of an integrated inventory management and control system to reduce
overheads and enhance system performance capabilities. Endorsement
of this option has the advantage of preparing the system for comprehensive
review as well as streamlining operations.
3. Systems Integration Standards:
Organizational elements tasked with system review and approval respon-
sibility normally define standards which are linked to the degree of integration
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desired in system operations together with system performance requirements.
System integration may assume three forms which frequently overlap to some
degree; first, the highly centralized system in which system components are
automated and controlled centrally; second, the centralized management infor-
mation system coupled with a decentralized command and control structure and;
third, the decentralized system consisting of autonomous components marginally
capable of integration. Centralized control systems function best in automated
process control operations such as power distribution systems-refineries, etc.
The centralized management information, decentralized command and control
system is normally capable of capturing, storing, and producing management
Information needed by the decentralized command structure. Military systems
are of this variety and consist of highly integrated-interactive systems which
preserve traditional logistic command structures. Contrastlyjthe Agency's
system consists of numerous stand alone systems which are marginally capable
of direct interface and integration. For example, the ICS does interface to
some degree with General Accounting System (GAS) but operates independently
of other system components such as
25X1
System integration standards normally relate to the identification of
external and internal systems with which computerized interface is desired
together with software compatibility requirements. An external system interface
might provide a capability to bridge data exchanges between ICS and MILSTRIP,
25X1
DIDS, DAAS, and other systems. Contrastly, internal interface might be expressed
In terms of computerized bridges between ICS and
.T*1
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4.
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CONIF, and other internally programed systems. The chemistry of integrated
systems demands hardware/software conpatibility because modularization requires
that the output of the relinquishing nodule be formatted for input to the
receiving module.
System integration standards also influence hardware/software system
selection. For example, feedback loops are normally designed into highly
automated systems in order to reduce routine repetitively performed clerical
operations. A feedback loop nay consist of a prepunched IBH card containing
DCN, stock number, location, and quantity ordered for release by depot
personnel. After pulling stores the warehouseman inserts the prepunched card
into a card reader and keys the quantity released into the reader. Similarly,
keying operations are performed at each discrete control center within the
job order stream to provide for system update.
Scope and Intent:
The scope of research effort described in this study was limited to a
cursory analysis of seven stand alone systems identified in Appendix H; namely,
AIMS and ICS. Stand alone systems serving
similar property management and control objectives are normally more costly to
maintain and operate than integrated systems and are generally less efficient.
These high cost and low performance factors are frequently attributable to
several causes; first, input and output information flow streams cannot be
efficiently automated in stand alone systems due to incompatibilities in
programming language and other factors; second, considerable data redundancy is
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"
essential to the operation and maintenance of stand alone systems because the
self-sane data elenent must be replicated in multiple file structures; third,
components comprising the stand alone network must be programmed separately
thereby augmenting overall development costs and; fourth, stand alone systems
compete for scarce computer resources, thereby degrading response times and
performance. The intent of this study is to determine whether or not ICS
is organized for efficient and economical operation.
J. Characteristics of Inventor, Management stem:
ICS is a stand alone system because of its isolation from other computer-
ized internal systems. Also, ICS currently lacks the capacity for direct inter-
face with the Defense Integrated Data System (DIDS), the Defense Logistics
Services Center (DLSC), the Defense Logistics Agency (DLA) and other
external computerized systems which furthers its estrangement. Isolation
has also encouraged the design of internal stand alone systems such as
These systems lack the capacity for
direct interface with one another and with ICS thereby completing the circle
of isolation for the conglomerate of systems involved in inventory management
and control applications. Architectually, these systems are roughly comparable
in terms of data base content, however, the systems do diverge in the retrieval
or report generation node of operation. This divergence is attributable to the
fact that one system may be designed to support property budget and planning
25X1 objectives
while another system may be designed for financial
25X1
property accounting control (example -
'71-7
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.; 1 Z'Alr?
Data element differentiation does exist within this system framework,
however, differentiation appears more definitional than real. For example,
relies on a stock number (SN) as the key descriptor for updating and
retrieving data from the system.
25X1 number (REID) and
25X1
25X1
relies on the reference identification
relies on the reference number (RENO). Establishment
of the stock number as the key descriptor for interchanging data between these
systems would provide an initial step in constructing the ladder of standard
25X1
ization. Further illustrating the gulf in these systems are data elenents used
to identify user installations.
or activity codes maintained in Finance registers. Another nay assign an
Identifier from internal logs. These identifiers are of markedly different
configuration than those maintained by Finance. Obviously, standardization of
location codes is another requisite
problem as well as the design of an
Certain data elements resident
application.
to the resolution of the definitional
integrated system.
25X1
in the system network are unique to a given
rates are commingled with management oriented data elements. The design of a
separate mini-computer system to handle operationally sensitive information
offers one viable alternative to this problem. Similarly, the design of a
system providing corridors for the passage and retrieval of data within the
same system network offers a second potential alternative; provided, OTS is
the only component capable of triggering sensitive data flows.
'"171
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,
The seven stand alone systems analyzed in this study were designed to
record materiel acquisition, storage, and distribution actions. Secondary
objectives such as the capability .oef track equipment locations on the basis
of serial number, together with historical profiles, were designed into certain
of these systems. Essentially, systems designed for property management,
tracking, historical, and financial property accounting purposes are dependent
on data elements common to most inventory management systems. These systems
trap unit price, characteristic data, stock numbers or alternate identifiers,
location, date received, etc., which provide a capability for generating output
reports for a wide range of property management and accounting purposes. The
majority of these systems are organized to generate property distribution
reports on the basis of geographical area and projects or activities within
geographical area. Reports are also subdivided in accordance with equipment
categorization e.g., receivers, transmitters, audio, and associative reports.
Generation of financial property accounting and other reports are easily pro-
grammed in this environment and make design of an integrated system a feasible
objective.
The present system contains no conduits for the computerized interchange
of data. This attribute has virtually isolated one system from another and
fostered evolvement of even more sophisticated systems along the periphery of
the network. Host elements of this network commenced as low level data
processing systems. Complexity was introduced through enhancement and
today several of these systems are equal to or surpass ICS in capability and
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performance. Moreover, these systems perform many operations currently per-
formed by ICS and are therefore duplicative systems. For example,
records dues-in, dues-out, in-transit, etc., transactions in response to
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the receipt and processing of supply actions.
also relies
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on computerized flags to signal reorder point violations. ICS has been
moderately enhanced since it went operational. These enhancements did improve
ICS efficiency. This inward focus discouraged development of computerized data
paths to external systems notwithstanding the fact that data elements residing
In ICS are coincident with data elements housed in other systems. Moreover,
reports generated by these systems are dependent on similar data elements which
removes another obstacle to integration.
6. System Data Flow:
Data entering ICS is trapped in internal file structures even though certain
of this data is manually keyed into other systems. Information flows depicted
In Appendix H indicate that ICS generates no computered data flows to companion
systems. Four of the seven systems account for the majority of ICS initiated
transactions processed; Maintenance25X1
of these four systems creates uneconomical clerical burdens because data elements
contained on shipping documents are manually keyed into companion systems. Given
this network, systems reliability factors are also degraded because computerized
data flows are nearly error free whereas keying errors are an essential property
of manual operations. Accordingly, duplicative input costs, together with
degraded reliability, affect performance levels of this system.
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The seven systems were coded separately in several programing languages
which cannot help but hamper design of an integrated system. Considerable
manpower was expended in the original design and enhancements to each of these
systems. The alternative, design of an integrated system would call for a heavy
commitment of manpower in initial design because of interface requirements
associated with external and internal systems with which ICS interacts. Inter-
dependencies of these systems, in concert with comparable data processing
objectives for each of its members, make design of an integrated system an
economical option. The integrated system has the potential of eliminating
duplicate development costs as well as reducing clerical overheads. Another
advantage is that systems now performing low level data processing tasks would
be enhanced through the introduction of an integrated system. This is because
benefits of standardization and integration are automatically telescoped to all
components of the system.
ICS is programmed in "Generalized Information Management" System (GIMS), data
25X1 base language.
is programmed in NIPS (National Military Command System
Information Processing System). ICS invokes GINS software in response to
supply actions, queries, report generation requirements, data element change,
and associative transactions. Activation of GPIS is costly in terms of
both manpower overheads and utilization of the computer resource. After (IMS
transaction processing is complete, the system is deactiviated and NIPS soft-
25X1 ware is invoked to update
files because this system is separately
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maintained. The continual invocation and swapping of separate software
packages to drive this complex of systems is not only costly but also grossly
inefficient. Another source of inefficiency and excessive cost derives from
the fact that file structures are duplicated within the total system network
which augments data storage requirements.
Appendix I identifies source documents containing data entering ICS and
systems. The chart tracks data movements between these systems.
The front end assembly of the computerized system is the Supply Management
Branch, Supply Division. Requisitions are validated for terminal input by
SMB personnel for stock releases at this point. The next entry in the
mechanized chain is issue verification which is initiated by Depot personnel.
Shipping documents are manually prepared with distribution to OTS and consignee.
4usi OTS systems personnel extract data from shipping documents and add data elements
25X1 unique to the
system for update purposes. The final step in this
processing chain is consignee acknowledgement that shipment was received. Four
incidents of input exist in this structure which involves essentially the same
or comparable data elements. Assuming availability of an integrated system OTS
files would be updated on the basis of original SIM inputs with unique data
elements being entered by OTS. Thus, the integrated system has the potential
of reducing clerical overloads while at the same time enhancing organizational
efficiency.
The stand alone system network promotes inefficiency and provokes
excessive maintenance and operation expense for five reasons; first, the
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several systems comprising the network must be separately programmed; second,
the manual keying of common inputs for updating each of these sytems increases
rather than decreases manpower burdens and computer costs; third, file re-
dundancies are replicated throughout the network which appreciatively in-
creases data storage and computer utilization costs; fourth, yields associated
with integration are forfeited in the autonomous system network because
enhancement must be implemented separately which consumes manpower and
increases computer utilization costs and; fifth, the continued activation
and deactiviation of different software systems essential to the maintenance
and operation of this complex represents an extremely costly processing
alternative. Another cost associated with this autonomous system complex is
that the system nay saturate with concomitant degradation in response tine.
This degradation factor, in turn, discourages enhancements because more
computer time and memory must be committed which has the potential of further
aggravating an already critical situation.
7. S sten Interfaces Document Generation, and Decision Making Potential
of Automated Systems:
Computerized inventory management systems normally improve response times,
increase performance capabilities, reduce hard copy documentation, mechanize
the flow of information between components of the network, make low level
decisions and mechanize repetitively performed tasks. Computerization has
modified perceptions of audit trails in the sense that hard copy documentation
is no longer required to support transaction data preserved in computer
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storage. Given this situation the first objective of computerization is, more
often than not, the elimination or reduction of hard copy documentation
which exerts a correlative effect on system manpower requirements. Considered
in this context four criteria are available to measure the impact of computer-
ization; first, the degree to which documentation has been reduced or eliminated;
second, the extent of overhead reductions resulting from diminished filing,
mechanization of repetitively performed tasks etc.; third, the improvement of
response time resulting from computer query in contrast to manual file search;
and fourth, the degree to which low level decision processes have been auto-
mated such as the generation of purchase order requests in response to reorder
point violations.
ICS must engage in message exchange with highly sophisticated external systems
such as MILSTRIP, FEDSTRIP, DIDS, and DLA. These systems contain sentinels
such as router indicators and addressee codes for directing and controlling
the flow of data within the computerized network. Logistics has not attempted
to develop automated interfaces with external systems, therefore, information
passing over this network must be manually processed. Message content of
transactions passed over this network either reside, or could be programmed to
reside, in the ICS data base. Conversely requisition status information
generated via MILSTRIP/FEDSTRIP is received in punched card format and is
manually processed. Other external systems are also programmed to
generate output in machine sensible format. For example, the Cataloging
Management Data Notice (Mud) constitutes a most significant source of Logistics
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CID data
identifies the Depot responsible for stocking materiel, unit price, unit-of-
issue, etc., and all changes appropriate thereto. C=I feedback is received
in machine sensible format, reduced to hard copy and, where appropriate,
manually keyed for purposes of updating ICS.
ICS was not designed to interface with external systems. The one
exception to this statement is DLSC's manufacturers part number to stock
number cross reference guide. ODP was able to program this interface quickly
because those few data elements were involved. ICS's isolation from other
systems, both external and internal, has prevented Logistics from harvesting
other benefits associated with computerization. ICS cannot be classified as
other than a passive system by any evaluative standard. The system is neither
designed to respond to the receipt of messages in machine sensible format from
external systems nor is it capable of passing data in machine sensible format
to internal systems such as
etc. ICS responds only to
manual keying via predefined menu. This limitation discourages mechanization
of repetitively performed tasks and reduction of hard copy documentation. ICS
query capabilities are definitely superior to those involving manual search,
however, the system is not capable of tracking the status of supply actions
from date of entry into system to date of exit. This lack of tracking
capability lowers performance thresholds and degrades yield.
ICS is not capable of affirmative response to the receipt of transaction
data. Data keyed into the system does trigger the release of the Depot Issue
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Notice. This is the only document associated with the materiel release process
which is computer generated. Shipping document and purchase order preparation
remains a manual process. Horeover, no effort has been made to harness the
computers capability to record, monitor, and schedule the movement of materiel
transitting the supply pipeline. For example, predefined routines could be
invoked for purposes of scheduling shipments from point of receipt through
test and inspection, packing and crating, and transportation. One outgrowth
of this capability is that it provides a basis for consolidating materiel
release actions in accordance with destination and shipment mode. Advantages
associated with this class of system are five fold; first, clerical personnel
can be displaced; second, work flows can be scheduled; third, repetitively
performed tasks, such as shipping document preparation are automated;
fourth, bottlenecks in the supply pipeline can be identified with relative
ease; and, fifth, performance standards can be developed for purposes
evaluating efficiency.
8. Quantitive Attributes of System Operations and System Performance
Characteristic:
As of 4 Hay 1977, the Property In-Use (PIU)* system consisted of
of
25X1
25X1
definition departs from the official description of PIU under which Logistics
maintains accountability for materiel in the departmental area and designates a
responsible officer to maintain property control.
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t
Appendix J shows that the majority of these accounts
are capitalized at $500,000 or less. The average capitalization, expressed in
terms of the arithmetic mean, amounted to approximately $80,400 whereas the median
capitalization for the array was $43,575. Accountable property consigned to these
activities is normally divisible into office machines, office furnishings, house-
hold furniture appliances,
25X1
Classifica-
tion of the PIU system in accordance with value distribution factors indicate that
eighty two percent of the total number of PIU accounts control only seven percent
of the dollar value of materiel maintained in the PIU system. The most salient
characteristic of this component of the system is that resources allocated to it
are not subject to rapid turnover and are quantitatively relatively static.
Materiel replacement and retirement programs are predominately responsible for
supply actions initiated by these activities. Computerization of this component
of the Agency's inventory management system as a prime design objective is probably
25X1
not justifiable in terms of anticipated yield.
materiel residing in the PIU system. These system components differ both struct-
urally and in terms of mission objectives. Resources allocated to small PIU
accounts are relatively fixed and used primarily for internal support. Large
accounts are primarily responsible for the Logistical support of other projects.
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evidenced in attachments to Appendix K. The remaining thirty one percent consist
of activities in which resource allocation is for the direct support of internal
operations such as !WIC, ODP and others involving high capital investment. These
two components of the system command maintenance of highly sophisticated and
responsive inventory management systems, a point especially applicable to
activities engaged in supply distribution. Otherwise personnel responsible for
materiel management would not be aware of what materiel was available for issue
at what location.
25X1
means. Combining he sixteen percent capitalization factor applicable to fixed
plant with the forty eight capitalization in mobile resources reveals that sixty
five percent of the total dollar value of assets maintained in the PIU system are
managed via computer means. Analysis of the PIU system confirms that most
significant components have already been computerized the essentiality of which
is not open to challenge. Given this situation, the area offering the most
potential for advancement is that of designing an integrated, unified, and
economical inventory management system tailored to meet multiple user requirements
1 `1
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25X1
25X1
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ICS processed approximately 6459 transactions monthly in FY77. Transaction
clusters included in this count are identified in Appendix L, page 1 and Appendix
M. Figures set forth in these two appendices confirm a significant reduction in
workload between June 75 and Oct 77. Transactions initiated in external system
elements were roughly comparable to those of ICS in FY77. Transaction counts
applicable to external systems contained biases not easily identified for removal.
25X1
These biases were compensated for by scaling down external system transaction
counts to arrive at more realistic comparability factors. For example,
processed 790 transactions weekly which was reduced to 500 in order to reduce
bias.
Another bias contained in PIU transaction counts is that receipt of property must
Lie acknowledged in certain PIU systems which results in two inputs per transaction.
25X1
No effort was made to eliminate this bias. Transaction counts for five external
systems were included in the study, namely,
Transactions for these systems averaged
6370 monthly contrasted with 6450 for ICS. These figures demonstrate that input
burdens are nearly evenly divided between external and internal systems.
Comparative dollar value figures for the PIU system and ICS were formulated
on the basis of total system and select system segments. As of 30 December 1)77,
the dollar value of property positioned
having a book value of
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ICS data processing burdens equate generally to those of four major external
PIU systems tasked with resource management responsibilities. The accuracy of
this proposition can be validated within the context of three standards; first,
counts of transactions initated and processed; second, comparison of values
associated with resources maintained in ICS and the four external PIU systems,
and; third, the nm:)er of line items maintained in each of the several systems25X1
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25X1
The actual ICS
inventory count total of 13257 line items, degraded by a estimated factor of
one third to eliminate expendable supplies and materiel for which there is no
demand, leaves an active non-expendable inventory count estimated at 3332 line
items. Contrasting these two figures, it is evident that the four principle
PIU accounts of the system are responsible for the maintenance of more line it 25X1
than ICS. Ho effort was made to eliminate duplications in PIU accounts.
Costs associated with the operation of external systems were not available
for analysis. Projected ICS operating costs are compiled periodically by ODP
and accounted to $815,000 in FY70 which includes manpower development costs,
(see appendix P). Computerization of companion systems entailed initial
development and implementation expense as well as operational costs. neither
initial development nor system maintenance cost for external systems were
available for purposes of documenting these factors in this study. ODP does,
however, compile estimated maintenance cost data for each component involved.
Data processing costs directly attributable to the operation of the external
system complex are probably less than those associated with ICS. This estimate
is based on the fact that updates are batched in external systems whereas
updates are processed on-line in ICS. Generally speaking, the batch mode is more
economical and efficient than the on-line mode. Moreover, external systems rely
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on different software packages presumably with different levels of efficiency to
drive their system.
The absence of external system cost data together with other factors forbid
development of meaningful comparative cost relationships. Notwithstanding these
limitations several general conclusions regarding cost and efficiency can be
stated; first, initial development and implementation costs are incurred for each
computerized component of the system which increases overall development cost;
second, components of the system generate similar input/output streams via manual
means which increases clerical overhead and promotes inefficiency in hardware and
software utilization; third, maintenance of autonomous systems generate file
redundancy in the network which is costly and degrading in terms of performance and
response times, and; fourth, enhancements in one system cannot be telescoped to
other systems without expensive redesign. Contrastly, integrated system
enhancements are automatically communicated to all system elements at minimal
expense.
The capabilities of any system, whether hardware or software, are finite.
Assuming boundaries of these systems are violated, additional computer resources
must be appended or the system must be redesigned in order to better use the
computer resource. Data base management systems undergoing frequent enhancement
ultimately become potmarked with hastily devised routines required in file
maintenance operations. As saturation points are approached minor enhancements;
a) . require excessive applications of manpower and commitments of time; b) create
a need for additional storage; c) degrade response times and; d) quickly transform
the system into the marginally efficient category. Seemingly, enhancements to ICS
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are already becoming more difficult to implement and may force the system into a
static state. Certain computerized PIU systems surpass the capabilities of ICS.
Whether or not ICS has the potential for enhancement to match these capabilities
was not a subject for affirmation or denial in this paper.
ICS probably cannot be enhanced to the extent necessary to meet assocative
data processing requirements of procurement and depot operations. Accordingly, the
path of the future must be in one of four directions; first, redesigning Girs in
such a manner that interactive data base structures can be maintained; second,
displacing GINS as the propelling software system; third, development of a
distributive network system in which mini-computers are programmed to perform
highly specialized tasks so as to free the prime computer system for higher
order tasking or; fourth, combining certain of these approaches in future
design. The concept of distributive networks is easily described. Mini-
computers are programmed to serve as both terminals and local processors. Data
processing operations in this environment are highly structured which involves
finite tasking for both the prime computer system (PCS) and the terminal
processor (TM. For example, PCS's are frequently programmed to transmit supply
actions for release of stores to the TIP. The TIP is programmed to generate
depot release orders and to record feedback confirming completion of the stores
retrieval operation. Next the TIP prepares a summary of materiel scheduled
for shipment in accordance with both consignee and shipment mode and triggers
the release of shipping documents without human intervention. Distributive
network systems are designed to free PCS's from time consuming tasking thereby
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enhancing
-
enhancing response capabilities of the system.
Appendix Q identifies components of the organizational inventory management
and control system, both current and planned. This appendix confirms that future
planning simply perpetrates the current concept of designing systems capable of
meeting requirements specified by the component involved. Traveling this pathway
rendors computerized linkage between similar or comparable systems a difficult
objective to obtain. This has encouraged development of self contained systems
because ICS lacked the capability of meeting total system requirements. This
outcome can be verified on the basis of comparative workload factors covering
a three year interval. For example, ICS processed 9334 monthly transactions in
FY75 (Appendix L), 6402 monthly in FY7G (Appendix R) and 6450 monthly in FY 77
(Appendix M). Part of this drop is attributable to declining workloads. While
external components were unable to provide reliable workload factors for the
three year tine interval it was generally conceded that growing numbers of
transactions were processed. This assessment adds credence to the proposition
that the organization nay be moving in the direction of a decentralized support
system because of ICS limitations. The trend toward decentralization can only
be reversed through development of an intergrated system capable of meeting
system data processing requirements.
Declining rates of issue are believed attributable to three
factors; first, shrinkage of global support requirements; second, Office of
Communication's increasing reliance of direct procurement for printed circuit
boards, nodules, and subassemblies processed as Repair and Return Materiel (RRM)
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in the supply system; and third, the growth of self contained systems which has
encouraged development of a microcosm of inventory management and control
systems. Direct procurement of this un circumvents the need for maintaining
formal accountable records because acquisition costs are expensed at tine of
receipt and issues need not be formally documented. RRM, in-turn, displaces
numerous individual components such as diodes, transistors, vacuum tubes,
capacitors, etc, comprising the circuitry of older generation equipment.
Naturally the shift.to RRM precipitated a decline in the number of line items
maintained in the system for the support of staff communications equipment. The
most recent OC audit report noted that accountability was not maintained for
non-expandable RRM and recommended that OC "comply with prescribed accounting
procedures for non-expendable property or obtain the approval of Director of
Logistics for the current deviations from the regulations". (Appendix S, page 4)
Prior to the advent of printed circuit board and nodularization technology,
equipment update programs, or the introduction of advanced equipment, exerted up-
ward pressure on the number and quantity of operational spares maintained in the
system. Previously, the Item Identification Section, SD, metered the number of
new items introducted into the supply system. Counts associated therewith provided
a reasonably accurate barometer for monitoring the impact of equipment replacement
or update programs on the system. Compilation of this statistic was suspended in
the recent past, therefore, the impact of equipment programs on the supply system
cannot be accurately measured. Personnel assigned to the Item Identification
Section advise that the number of new items maintained in the system as operational
spares has been reduced from a constant flow to a dribble. Accordingly, it is
" r
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reasonable to project ever declining workloads in the Supply Division unless
action is taken to enforce centralized control over property acquisitions and
distribution programs.
The most recent OL audit report recognized the impact development of self con-
tained systems and enhancements thereto have on efficiency and system development
and maintenance costs. These observations were made manifest in Appendix T, para-
graph 7, page 4, wherein it is explicitly stated that the duplication of effort
required to develop individual automated property systems is uneconomical and
inefficient" and, further, that "the development of automated accounting systems
should be centralized in the Office of Logistics". The posture of the audit staff
regarding responsibility for management of the Agency logistic resource is that
"Agency regulations assign responsibility for contol of property to the Office of
Logistics" (Appendix T, page 3, paragraph 5). Implicit in this delegation is the
responsibility for designing the most efficient, economical, and responsive
system tailored for total system applications. The report implies that the
integrated system route is the most favored for reasons of efficiency and cost.
9. ADP System Planninf7 for Future - Capabilities and Limitations:
Current planning seemingly encourages design of stand alone systems.
Several systems scheduled for activation, or in the process of review, are
identified in Appendix Q, the description of which confirms this' proposition.
The Federal Automated Requisitioning System (FARS) represents one such system
ODP has defined specifications for this system which provides an interface with
elements of DOD systems. FARS's primary data processing objectives are;
a) to relay requisitions via electronics means, to appropriate DOD or GSA
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Inventory Control Points for supply action; b) to update both ICS and FARS
files on the basis of feedback relayed via AUTODIN, and; c) to generate
formaVld copies of receiving reports for Receiving Section,
25X1
and others. Activation of FARS involves preparation of outgoing messages in
accordance with requirements specified in the Defense Automated Addressing
System (DMS). This facet of the program represents low level tasking. Feed-
back from Inventory Control Points is in machine sensible format and consists
of status information such as date materiel is due-in, price changes, sub-
stitutions, cancellations, etc. Initially, FARS will not provide the capabi-
lity for instantaneous ICS file update, because processing methodologies for
cross referencing WASH stock numbers to federal stock number for directs as
well as the problem of substitutions has yet to be resolved.
The FARS feasibility study recommended acquisition of a mini-computer for
automating that application. Conceptually, FARS involves the maintenance of two
data base systems; namely ICS and FARS. The study is silent with respect to file
maintenance methodologies, however, it appears evident that the same data elements
are maintained in t;oth systems. Tuning this network requires that both systems
be updated in response to the receipt of status information such as acquisition
price differences, unit-of-issue change, substitutions, and other system updates
such as cancellations, order quantity changes initiated by requisitioners, etc. As
near as can be determined, the FARS's development plan commands concurrent update
to two independent data base systems in order to maintain synchronization.
Assuming that system objectives have been properly described and that processing
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methodologies have been accurately defined, installation of the mini-computer
will increase rather than decrease system processing burdens because of the dual
input doctrine. One anticipated benefit associated with the maintenance of
duplicate systems is that response capabilities will be enhanced because FARS will
be accessed for routine queries which relieves GUMS of that burden.
Mini-computers are routinely programmed to execute data processing routines
where large scale data transformation is involved. Consolidation of line items
in accordance with consignee and shipment mode for automated generation of shipping
documents illustrates data transformation. Similar processing methodologies apply
to automation of the packing and crating nodule. Line items consolidated on the
basis of consignee and other criteria in order to schedule multiple line item
packaging box emp9 data transforuation in this application. Data transformation
is alien to FARS because updates' simply replace one value with another. The FARS
feasibility study explicitly defines a requirement for the preservation of historica
data which commands concurrent update of FARS and ICS. Apparently, FARS is not
being designed to decrease ICS main frame tasking. This being the case, benefits
accruing from FARS`may have been matched or even surpassed through ICS redesign.
Interdepartmental Support Branch's off-line text processing equipment is
programed to generate the Form 2216, and the IBM punched card needed for the
initiation of data transfers over the AUTODIN system. Data transposed to these
documents are retrieved from; a) the ICS data base; b) data elements identified
on the incoming requisition or amendments thereto and; c) microfiche files
maintained in Supply Management Branch. ICS redesign has the potential of
automating the preparation of the Form 2216 and formating messages transmitted
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over the AUTODIN system because data elements contained therein either reside,
or could be programmed to reside, in ICS files. The possibility of upgrading ICS
to perform this very essential reproduction task offers an alternative to the
installation of a mini-computer system. While assignment of the forms production
task to the mini-computer has the potential of freeing the prime computer system
for alternate use the savings may not offset cost associated with the maintenance
of two systems.
Office of Communications relies increasingly on the acquisition of organic
spares for the maintenance of staff communications equipment. Printed circuit
boards and other modularized components of the system are frequently unique to
that equipment which is not marketed commercially. Uniqueness poses pro-
visioning problems with respect to maintenance of operational spares because
production necessitates retooling for each order received. The economics of
this situation may favor the purchase of sufficient operational spares to
maintain equipments over their estimated life expectancy. Recent trends
affirm that organic spares are in fact being purchased on the basis of equip-
ment mortality rat. Extrapolating this trend into the future, it seems
reasonable to predict increasing reliance on one time purchase of operational
spares. This attribute of system operations has shifted processing priorities
from these associated with stockage of spares to that of maintaining a quick
response posture because stockage of organic spares is presupposed.
Office of Communications solicited OUP assistance in the development of
a Repair and Return [lateriel System (REIS). This program has already been
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debugged and will become operational after peripherals are installed at
The system was designed to control approximately 15000 line
Items with an estimated transaction frequency of 2000 per month. OC envisions
purchase of organic spares from direct materiel procurement allotments. This
acquisition means circumvents the necessity of maintaining formal accountability
in the OL Logistics System. The most recent audit report, however, took exception
to the storage of high dollar value property without maintenance of accountability.
This report stated that "there are about 5000 property line items at the Central
Repair Facility (CRF) which are defined by regulation as non-expendable, but
are administered as expendable property". DC's planned computerization of
REMS is believed to be in response to exceptions defined in the Audit Report.
Apparently, OC intends to purchase ever increasing quantities of repair and
return property from direct procurement funds which has the effect of skirting
OL's formal accounting system.
REMS is the first application in which a directorate, other than Logistics,
assumed responsibility for materiel required in support of non-sensitive
operations. PreceLnts for delegating responsibility for resource management
to external components are available for reference, however, these examples
have normally been associated with operational projects or programs affecting
national security interests. Such projects may be endowed with internal support
mechanisms to avoid external referrals. Property procurements incident to the
maintenance of REM are financed from CIA appropriated funds, therefore, do not
qualify for exemption from normal operating procedures. OL has traditionally
,
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been tasked to manage and maintain accountability for these resources.
Implementation of REM will sever OC's umbilical chord with OL for an important
segment of materiel maintained in the supply system. The impact of separation
may be catapulted into other components of the system. For example, OC cannot
warehouse organic spares without a storage capability. Considerable pressure
may-be exerted on OL in the future to meet these space requirements. Moreover,
personnel, peripherals, and secure work area requirements inevitably lead to
separation which constitutes duplication. Perhaps the most serious disadvantage
associated with maintenance of autonomous supply management systems is that
they disenfranchise incentives for maintaining a comon support capability.
The cost of maintaining separate yet comparable systems is also prohibitive.
Systems Analysis Branch, OL, examined the feasibility of computerizing
certain routines in the Procurement Division. This study concluded that
computerization was economically feasible. Further it was recommended that
the procurement subsystem be interfaced with CONIF and ICS in order to fuel
that subsystem with information resident in other systems. Procurement
Division declined acceptance of the integrated systems approach. Apparently,
rejection was based on the proposition that the approach was not responsive
to requirements. Specifications were tan defined to guide formulation of a
follow-up study. Essentially these requirements reduced to those associated
with a mechanized forms management system having memory modules capable of
capturing and reproducing history of procurement buys. Subsystem specifications
for procurement are being defined without reference to data processing requirements
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of associative systems which eliminates the need for interface. Ramifications
of this approach will be an additional flowering of disjointed systems.
Logically, procurement subsystem requirements can not be framed without
reference to data processing requirements of the larger universe. The present
system is only marginally capable of tracking supply actions as they pass through
that system largely because of the autonomous configuration of systems comprising
the network. Supply Nanagement Branch identifies control points assigned
pending purchase actions (IDSB, Gen Proc.
Contracts, etc.) and 25X1
fingerprints that assignment in the ICS data base. This entry constitutes one
of a chain of entries essential to the maintenance of a system tracking module.
Next, Data Access Center personnel enter due-in dates in ICS suspense files
on the basis of dates annotated on purchase orders prepared by Procurement
Division. This combination of entries in ICS provides a limited tracking
capability, however, tine gaps inherent in this system preclude automated
response to requests for status information. For example, SHB may have processed
a requirement to Procurement for purchase action and updated ICS so as to record
referral. Tine Ialses between the date referrals are made to Procurement and the
date completed purchase orders are received at DAC nay be considerable. Time
lapses, together with the fact that the system is dependent on the transmittal
of manually prepared documentation rather than computerized transmissions,
normally requires that both manual and computer files be accessed in order to
ensure integrity of response to requests for status information.
The integrated system provides a capability for bridging time gaps built
in manual systems. This bridging process facilitates response to requests for
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status information and provides the basis for the development of a procurement
management system. The integrated system provides a vehicle for; a) flagging
delinquent procurement actions; b) generating formated follow-up letters to
suppliers in response to time frame suspense violations governing delinquent
actions; c) generating multiple line item purchase instruments based on sorts
by vendor, etc; d) identifying the Procurement Officer assigned responsibility
for purchase order execution; e) modifying item descriptions, stock numbers,
manufacturers part numbers, unit-of-procurement, price, order quantity, due-in
dates, and other data maintained in the system in response to feedback from
vendors, requisitioners and Supply Division personnel; f) measuring workloads
handled at select procurement control points of the system; g) tracking the
movement of procurement actions within the system so as to provide automated
responses to requests for status information, and; h) such other management
objectives as may be designed into the system. Normally, requests for materiel
stocked in the system are not bottlenecked because response tines are relatively
short for stock releases. For this reason procurement lead tine represents
the volatile element in the process the control of which holds promise for yield.
Integrated process control systems require that data be sequentially keyed
into the computerized system. Illustrative of the sequential chaining of data
elements is the procurement module which is capable of; a) acknowledging and
time dating receipt of requirements for purchase action; b) identifying the
Procurement Officer responsible for purchase order execution, together with the
date assignment was made; c) recording vendor selection and the date materiel
is due-in at destination; d) consolidating multiple line items on a single
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purchase order; e) cross referencing Document Control Number to Procurement
Instrument-Number for tracking and retrieval purposes; f) modifying data
elements resident in the system in response to substitutions, price variances,
and other changes occurring subsequent to initial entry; g) time stamping
date materiel was actually received which provides a criteria for vendor
performance evaluation and; h) accepting and time stamping receipt of partials
and split orders for identical items between two or more vendors. Efficiency
of procurement modu)e operation is related to the kind of feedback mechanisms
available for update and the degree to which the computer can track, sort, con-
solidate, and flag delinquencies for the attention of management personnel.
Certain data elements resident to CONIF are also maintained in ICS. Examples
of dual residency are; a) order quantity; b) acquisition price; c) item
characteristic data; d) stock number; e) manufacturers part number; f) date
due-in; g) etc. Frequently, this date is modified in the negotiation or production
process which prompts secondary update. Formal extension of a due-in date
illustrates a secondary input requiring concurrent update of both the COIF and
ICS because data ements are resident in both systems. Implementation of an
independent procurement subsystem nay require that certain initial transactions,
together with associative secondary updates, be manually keyed into three systems;
namely, ICS, CONIF, and the autonomous procurement subsystem. Synchronization in
this sytem network requires concurrent inputs which represents an objective
beyond the realm of realization. Because of this limitation the impact of
designing an independent procurement system will; a) multiply clerical burdens
required in system maintenance; b) result in an additional proliferation of
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data base structures; c) further degrade reliability factors because of high
error rates and lack of synchronization; d) require the installation and
maintenance of duplicative hardware/software, and; e) degrade system response
times. Computer tasking requirements of the Procurement Division may well justify
the installation of a mini-computer to consolidate line iters in accordance with
vendor and to generate purchase orders for transmittal to vendors, provided, the
design of the mini-computer is an adjunct of the integrated system.
ODP recently implemented the Agency Automated Weapons Control System (AUCS).
Computerization of this application involved manual interfacing between ICS
and AWCS. Seemingly, updates recording the issuance of firearms will be pro-
cessed against both ICS and AUCS files with serial numbers being added to the
AWCS entry. Permanent separation of these systems is ensured unless both ICS
and AWCS are redesigned because AUCS is coded in NIPS and ICS in GINS. Accordingly,
AWCS's design objective was not perceived to be that of an integrated system but
rather that of a small independent system. This notwithstanding the fact that
integration has the potential of eliminating dual inputs, improving system
response time, enha'ocing reliability of system operations, and avoiding computerized
maintenance of nearly identical segments of the total system. OL requested that
Systems Analysis Branch, OL, automate the Vehicle Information Manangement and
Control System. It seems reasonable to predict that this application, like its pre-
decessors, will also be programmed as an independent system. This outcome
will further augment the population of autonomous sytens maintained in the
inventory management network.
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Inventory management responsibilities cannot be efficiently executed
in a totally decentralized environment because elements of the stand alone
system network perform essentially the sane tasks. Decentralization involves
duplicative; a) clerical and management skills; b) hardware/software
systems and; c) capabilities to initiate and control message flows
throughout the network. The totally decentralized system is fraught
with yet another danger; namely that the decision to integrate may
necessitate design pf an entirely new system because existing resources
such as hardware/software cannot be efficiently and economically organized
for integration.
10. Properties and Performance Capabilities of Integrated Systems:
The proliferation of systems involved in inventory management and
associative applications are neither organized to track supply actions nor to
monitor, performance of the system via tine frame suspense routines. Tracking
modules are normally designed to record and monitor the movement of supply
actions through predetermined points of the network. These control points nay
span several functIonal jurisdictions such as inventory management, procurement,
depot operations and finance. For example, Supply Hanagenent Dranch generates
suspense ICS updates for non-stock materiel release actions prior to passing
comrend and control to procurement. Procurement in turn, passes that same action
through several discrete control points in that system prior to passing command
25X1 and control to DAC,
and alternate receiving locations.
Tracking modules monitor the movement of supply actions between nodes
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of the system whereas the time frame suspense nodule predicts time
Intervals supply actions are expected to remain at select nodes or
control points in the network. Stated another way, time frame suspense
modules are designed to record arrival and departure times at control
points and to estimate time lapses at each on the basis of past performance,
current workload requirements, and resource availability.
Systems designed for tracking and time frame suspense normally
qualify as sophisticated inventory management information and control
systems. These two nodules combine to provide a systems capability to;
a) respond to requests for status information with little or no human
Intervention; b) establish performance standards governing system
operations together with the measurement of deviations therefrom;
c) identify actual or potential bottlenecks in the processing chain;
d) eliminate document processing and, where appropriate, filing require-
ments at control points in the network and; e) extrapolate trends so as
to maintain balance between projected workloads and resources required
to sustain that lev.21 of effort. Tracking and time frame suspense
modules cannot be efficiently annexed to autonomous systems because of
discontinuous data flows. The stand alone system normally requires manual
entry of data in order to activate the system; hence continuous and logic
data flows arc interrupted if output of one system is passed to a companion
system for manual update. This attribute renders the stand alone system
network marginally capable of; a) computerizing repetitively performed
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tasks; b) monitoring performance characteristics of the system; c)
monitoring and recording the mover,ent of supply actions in the system;
d) preparing advisories for management review in response to slippages
in time frame suspense; e) conserving manpower and; f) quick and
reliable response.
Integrated systems are capable of generating whatever hardcopy
documentation is required via the prime computer, or alternately, a
mini-computer system. ICS is programmed to generate the Depot Issue
llotice in response to receipt of transaction data. Other forms required in
the materiel acquisition, storage, and distribution system are prepared manually.
Computerization of ICS has reduced neither the number nor frequency of doucments
circulating in the system. The
was not designed to displac(25X1
a form but rather supplements data contained in the original requisition (Form 83)
without actually displacing that form. Performance appraisals of ICS lead to the
conclusion that this system has not succeeded in reducing manhours invested in
document preparation and distribution and has automated no known process
associated with tho management of the logistics resource.
ICS's decision making capabilities are nonexistent. For example,
lead tines together with acquisition cost analysis frequently determine
procurement source for low value repetitively consumed supplies. Computers
can be routinely programmed to preserve procurement lead times associated
with the delivery of identical items from two or more vendors. Similarly,
these systems normally capture and preserve acquisition costs for identical
items available from two or more suppliers. Given the availablility of this
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information, the computer can be programed to select the most advantageous
procurement source given the tine element necessities and sterility of the
requirement. High dollar value materiel is normally excluded from automated
decision processes in order to reduce the probability of costly replenishment
and programing error. Economic order quantities for materiel subject to
repetitive demand can be determined on the basis of average turnover and other
factors arrived at via the computer resource.
ICS design does not; a) harness the decision making potential of the
computer resource; b) provide for automated generation of documentation;
c) transmit data between control points in the system on the basis of pre-
defined decision rules and; d) interface with external systems so as to
eliminate duplication. ICS, therefore, must be classified as a bookkeeping
system which, from the standpoint of the total system, consumes rather
than releases manpower for alternate applications and offers few manageriel
yields.
Computerized inventory management systems are capable of flagging
repetitive demand.'' Several methods or combination of methods can be
specified for the attainment of this objective; first, entry of part
number, model number, or manufacturer is treated as mandatory to provide
a capability for sorting and merging requirenents for materiel not
managed in the system; second, requisitioners are held responsible for
determining whether or not materiel is subject to repetitive demand and
to code the ordering instrument accordingly and; third, components of the
resource management system are tasked with the responsibility for
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identifying materiel to be stocked in the system either on the basis of
requirement forecasts or actual consumption patterns extrapolated into the
future. Generally the third alternative has been applied internally
because reasonably accurate requirement forecasts are compiled for equipment
and associative spares. This system removes the initiative for introducing new
items into the supply system from Supply Division, and except for specific
categories of materiel, vests that responsibility in cognizant offices.
Cognizant offices are in a position to influence the structure and
content of inventory. Still, the position of the cognizant office is
one step removed from actual requisitioners. Separation nay represent
an obstacle to efficient resource management because certain requisitioners
consume resources outside the control of the cognizant offices of which
they are a part. Given this setting, requirement forecasts may be
formulated for; a) major equipment or operational spares incident to the
maintenance of that equipment, and; b) strategic reserves maintained in
a ready-for-issue condition to meet contingency situations. These
forecasts may exclde collateral requirements for furniture, appliances,
maintenance supplies, vehicular spares, hand tools, etc. Requirements
for these items occur randomly throughout the system yet the present
system is not organized to flag repetitive demand to ensure pursuance
, of a rational stockage scheme. Another shortcoming is that requirements
for materiel not maintained in the system may be assigned WASH numbers.
This assignment precludes execution of sort and merge routines capable
of identifying materiel subject to repetitive demand. Capture of
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manufacturers part or model number for subsequent sort and merge re-
presents the most practical and economic means for flagging repetitive
demand.
Comparision of obligations/expenditures against Materiel and Direct
Procurement Allotments over tine offers a reliable index for gauging
the degree to which the system is capable of supplying demand from inventory
as opposed to purchase. Analysis of these two quantums definitely confirms
that the percentage of demands supplied via direct procurement exhibits a
steady increase. Expressed in dollar value terms direct procurement accounted
for 57% of total purchases in FY76, 69% in Transitional Quarter, 77% in FY77,
and 84% so far in FY78. Assuming present trends continue, approximately 85% of
organizational requirements for materiel in terms of dollar value will be met'
through direct procurement in FY73. The design of a system capable of flagging
repetitive demand has the potential of reversing this trend by closing
gap between direct procurement and replenishment.
Minor applications computerized in ICS design are; a)
S0111c
locator system and; b) the generation of status reports to facilitate
physical inventories. According to
personnel the manual
25X1
25X1
locator system continues to be maintained in tandem with the automated
system. The rationale underlying the maintenance of parallel-duplicative
systems is apparently attributable to low confidence factors in the
automated system. Displacement of one of these systems has the potential
of reducing overheads. Analysis of the automated system designed to facilitate
the conduct of physical inventories was not subjected to in-depth study.
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personnel have advised, however, that they periodically request
inventory balances of all items within a Federal Commodity Class. Items selected
for count are then manually selected from the composite listing so as to flag any
deviations between actual and recorded balances. The computerized approach
has the advantage of displacing the cumbersome system relied on at present
and has the potential of; a) systematizing the physical inventory function;
b) eliminating bias in the selection of items to be inventorad, and;
c) ensuring that a representative cross section is covered in each count
cycle. For example, algorithms allowing random selection of ten percent
of items maintained in a given Federal Commodity Class might be considered
representative whereas a five percent random might be applied to another
Federal Commodity Class.
11. Cataloging interface:
Item Identification Section relies on four primary sources of
information in cataloging operations; first, maintenance and status
Information received from DLSC in magnetic tape format; second,
microfiche received periodically from DLSC identifying materiel
maintained in the federal system; third, item characteristic and
correlative management data contained on Cataloging Action Requests
processed by Supply ilanagement Branch; and fourth, screening actions
processed against the DLSC data base to determine if the item is a
constituent of the federal supply system. Approximately fifty percent
of the total number of managed items in ICS are identified by federal
e,
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stock number, therefore, the federal supply system constitutes a
prime procurement source for materiel managed in the Agency system.
This dependency pattern makes a partial or total computerized interface
between ICS and DLSC a meaningful design goal.
Information maintained in DLSC is segmented for storage and
retrieval purposes. Segment A identifies an item maintained in the
federal system by; a) stock number; b) item name code; c) FIIG number;
d) criticality code, and; e) related data elements. Segment C of the
DLSC data string contains manufacturers part number to stock number
cross reference data. Decision rules and logic operations governing
maintenance of the DLSC system are extremely complex. This complexity
in turn makes development/len automated interface between DLSC and ICS
a formidable design goal. DLSC transmits all data residing in a given
segment in response to item updates. This transmission node requires
that recipient systems have the capacity to determine which data element
or elements residing on ULSC data string have been changed prior to
internal system update. System update could be accomplished by overlaying
ICS data elements with those contained in the segment. Continuity of system
operations also requires that changes be preserved for reference purposes to
ensure that they can be tracked and explained. ODP designed a program to
present data elements contained in these segments in hard copy. Cataloging
personnel manually compare hard copy entries with data elements residing in
the data base and generate such menu updates as may be required. The only
d
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computerized interface in the system is that contained in segment C which is,
manufacturers' part number to stock number cross reference. This component
of the system is automated.
DLSC and ICS contain several incongruities in design. For example,
item descriptions nay be housed in a field displacing in excess of one
thousand characters under DLSC. Contrastly, ICS has allotted a maximum
field of three hundred characters to retain descriptive data. Given
this discrepancy in field length implementation of an automated interface
would require that the GEIS record length be lifted or expanded, because
a large percentage of items maintained in DLSC exceed this limitation.
Another incompatibility between these systems is that of decimal point
(unit price) management. DLSC's_decimal system is maintained in cents
whereas GINS currently allocates three positions to the right-of the
decimal which is mills. Accordingly, a computerized interface would
demand invocation of a routine to add a non-significant zero to DLCS's
incoming unit price prior to updating GINS. Alternatively truncation of
the right most digit in the price field in GIZ would accomplish the
sane objective. Further aggravating compatibility factors is the fact
that DLSC drops cents for line items having a unit price in excess of,
say, $10 million. Hateriel now maintained in the Agency system does not
penetrate this barrier and is not expected to do so in the future, there-
fore, the example is illustative only.
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System incompatabilities, other than those described in preceding
paragraphs, exist between DLSC and ICS. Reconciliation of these
divergencies for computerized interface might prove prohibitive in terms
of initial design and system maintenance cost. Moreover, a large per-
centage of DLSC maintenance actions require cognizant office approval
prior to acceptance and ICS update. These delays in the decision process
would require that DLSC transaction updates be held in obeyance pending
acceptance. Profiles of these interrupts can best be illustrated by
example. The stock number and description of an accepted replacement
item must be recorded in suspense in response to DLA notification as well
as the effective date of the change. Updates of this type may require
referral to cognizant offfices for acceptance or rejection which requires
maintenance of a suspense file for monitoring purposes. Moreover, in
order to adhere to DLSC's effective date doctrine, the internal system
would have to rely on simple time frame suspense routines for maintenance
purposes.
Basically, GINS and DLSC are incompatible systems. The design of
conversion programs capable of computerizing this interface would be
complex and costly to develop. Given these restrictions interfacing
represents a long range design goal. The design of ICS, however, should
be such that interface requirements can be meshed sometime in the future
without dramatic redesign. Interface problems explained herein are
illustrative only and are not intended to imply that these specific
' t
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computerized interfaces between DLSC and ICS are either planned or
desirable.
12. Finance and Associative Interfaces:
Interfaces between ICS and the Office of Finances General Accounting
System (GAS) are computerized but do not qualify as automated interfaces.
For this reason the logistics and finance subsystems are more analogous
to stand alone than integrated systems. ICS is programmed to generate
file entries in response to supply actions affecting PRA accounts.
Periodically GAS extracts data from ICS files, reformatA that data
and batch updates that system for subsequentil entry into the Financial
Resource System. Time wise these systems are not synchronous because ICS
updates on-line whereas GAS is subject to batch update. Both systems generate
PRA status reports, ICS the PRA Tracking (PRAT) kind Finance the Status of
Operating PRA (SOPRA) report. The fact that PRAT and SOMA report generators
involve access to two separate data bases (ICS/GAS) makes reconciliation of
these reports difficult, Another obstacle to reconciliation is limitations
in ICS design. Comparison of balances maintained in the two systems confirm
the proposition that output discrepancies are legion. For example, a
$5,562.773 unresolved difference existed in FY76, a $131,563 difference
in TQ, a $1,174,972 in FY77, and a $25,763 difference to date in FY78.
Differences in PRAT and SOPRA reports are attributable to two
primary factors; first, the financial system relies on cents for PRA
computation purposes whereas ICS relies on mills, and; second, information
extracted from ICS files and copied on GAS files includes reimbursable
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PRA transactions whereas reimbursable PRA transactions are excluded from
SOPRA reports. nanual adjustments to SOPRA and PRA reports are capable of
resolving some differences in these reports, however, unresolvable gaps
remain. These gaps prompted implementation of a manual PRA tracking system
to ensure operationaL integrity of the accounting system. The output of the
manual system yielded yet another balance which diverged from those of SOPRA
and PRATS. This system has since been deactivated but gaps the system was
designed to bridge persist. Another potential souce of error is attributable
to the configuration of data flows between ICS and GAS. ICS is programmed to
pass data to GAS, however, the system cannot reverse this data flow pattern.
This constraint allows Finance to update its data base without concurrent ICS
update. Finance updates consist mainly of Project Number changes. Logistics
is not notified of changes involving the last four numbers of the P11 but is
advised of those affecting the third and forth digits of the P,N. Accordingly,
the system rendors reconciliation of project
level a questionable enterprise. 25X1
ICS is not programmed to accept and evaluate transactions for the
purpose of selecting routines for systems update. Management personnel
intervene in this process because menu's must be selected prior to processing
supply actions. Accordingly, system maintenance relies heavily on judgemental
factors which increase in complexity for certain transaction categories.
Procedures associated with stock number and unit price change illustrate
this complexity. For example, Item Identification Section can execute a stock
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4
number change simply by calling forth the appropriate menu and processing
the update. Price changes may be associated with stock number change which
requires that command and control responsibility be transferred to MI where
a separate menu is invoked for update purposes. Processing is further
complicated by the fact that the stock number change menu is incapable of
reaching into suspense files in which dues-in and dues-out are layered. This
constraint requires execution of a query to determine whether or not a
suspense exists for the item involved. If so, another menu must be called in
order to update the suspense.
ICS dependency on human interfaces for file update and maintenance favors
high error rates, low reliability, and degradation of system response tines.
Error corrections represent a tine consuming and complex process which have
been reduced to the extent possible through; a) manual validation of updates
processed in response to certain classes of supply action and; b) diffusion
of update responsibilities within the system. Simple errors such as those
associated with the keying of an erroneous price at tine of receipt frequently
corvand the invocation of eight separate menus for correction. Updates of this kind
normally span several files as well as multiple data elements within files for
which no computerized linkage exists. Error rates are certain to increase
exponentially in this type environment. SHB has pre-euptedrifrom keying the 25X4
receipt of stock replenishment materiel in order to reduce the incidence of process-
25X1 ing error.
has, however, retained responsibility for updates
associated with directs. Accordingly, updates confirming receipt of materiel arc
t.?.1
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processed by two widely separated components. This spatial separation
complicates transaction processing and degrades response time because multiple
components of the system may have to be accessed for status information.
Another property of system operations is that associated with manual
-?palyTA5
validation of transaction data. JA? personnel manually validate all
supply actions reflecting a cost of $10,000 or more in order to flag and
correct errors. Data Management Section workload statistics indicate that
approximately three and one-half man years of effort is expended annually in
data validation and verification operations, error correction, manual reconcilia-
tion of PRATS and SOPA reports, and evaluating the impact of enhancements on
reliability factors. This manpower expenditure pattern demonstrates that ICS is
a marginally reliable system which entails a substantial manpower commitment to
maintain. The degree of data integrity needed for the financial interface has
proven particularly burdensome. Processing procedures described in this and
preceding paragraphs were designed to ensure that data lifted from ICS for
entry in GAS is reasonably accurate. Notwithstanding efforts to enhance data
integrity via manual means, gaps in these systems persist and will continue to
do so unless an effort is made to design an integrated system.
Another obstacle to implementation of an integrated system is the lack
of a unified numbering system needed to identify and track transactions
through the supply system. Requisitioners are responsible for assigning
a document control number (DC(I) to requirements forwarded to logistics. This
number identifies that action in all intermediate processing states except
those actions passed to procurement division. Initially SMB assigns a Logistics
hrl TTS. .! A
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Control Number (LCD) to transactions passed to procurement. Subsequently the
procurement entity assigned responsibility for executing the purchase instrument
modifies the LCN. At this point the modified LC il is redesignated as the
Purchase Instrument Number (PIN) for purposed of updating ICS. Frequently,
the LCD is not used to identify the actual purchase instrument but rather
represents an intermediate number which stands midway between the DON and the
number finally assigned the purchase action. For example, requisitions passed
to the CONIF systen.for appropriate action pick up a unique identifying number
which may differ from both the DCN and PIN. Similarly, requirements passed to
IDSB are assigned a fourteen position DCN for processing via the MILSTRIP or
FEDSTRIP system.
IDSB assigns a DCN to requisitions entering the MILSTRIP/FEDSTRIP system.
MILSTRIP/FEDSTRIP requisitions do not set aside fields in which to inscribe
the PIN, therefore, DOD billings are keyed in the DCN. Finance does not
reference CD receiving reports in connection with the DOD billing and
reimbursement process. Consequently, the computerized system lacks the capability
to maintain DCN an PIN cross reference data for requisitions passed to DOD for
supply action. IDSD compensates for this gap in the data processing stream
through maintenance of a manual cross reference log. Periodically this log is
forwarded to finance to provide a capability for cross referencing the DCN and
PIN prior to effecting reimbursement.
One design objective of FARS is to computerize generation of the PIN/DCN
cross reference listing so as to close this gap in the data processing chain.
Activation of FARS has the potential of streamlining interfaces with FRS,
r1?,' 0?"?'"n"1"4 /if;
Ajt
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however, the creation of another stand alone system offers little promise of
enhancing ICS performance capabilities. Already, :ICS depends on two systems
to feed information to FRS; namely SNO and
CONIF also feeds data to FRS gX1
constitutes a third system. Adding FARS to this data path network cannot help
but add a forth feeder and aggravate rather than ameliorate discontinuties in
the data exchange network. Grafting EARS to ICS for integrated operations may
surface such complex design problems that the two systems will be forced to
co-exist with little or no computerized linkage.
13. System Review and Approval Standards:
Standards associated with systems review and approval processes are
normally related to missions defined for the application involved. One
standard Hight reference the capacity of the proposed system to conform with
reporting requirements of the Agency's Financial Property Accounting System
(FPAS). Exclusive linkage to this standard, however, would be both impractical
and restrictive. This standard can not apply universally because several
applications now operational, or currently in process of review, cannot be
evaluated in these terms. For example, the prime mission of EARS is that of
interfacing with MILSTRIP, FEDSTRIP, and the Directorate of Finance, whereas
AUCS is firearms control sytem designed to track weapons issued to authorized
recipients. Analysis of these and other systems confirm the proposition that
the review and approval process cannot always be related to specific reporting
requirements. Most computerized inventory management systems are capable of
capturing stock numbers, descriptions, serial numbers, and associated data
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elements and are easily programmed to generate prescribed FPAS reports. This
attribute of conputerization frequently relegates compliance with reporting
requirements to a subordinate position.
Cost effectiveness frequently serves as a system review and approval
standard. Application of this standard presupposes that most benefits and
costs associated with conputerization can be quantified for donparative
analysis. Concepts underlying this strategy normally relate to the degree
of integration specified for system operations. For example, the design format
of DOD inventory control systems centralize information management responsibi-
lities but decentralize connand and control. Application of this organizational
concept provides an adhesive for joining components of the system into a finely
tuned and integrated whole. Initial design cost for the integrated system may
exceed those associated with the design of a profusion of stand alone systems.
Offsetting these high initial development costs are much lower operation and
maintenance costs. Perhaps the most redeeming feature of the integrated
inventory control system is the efficiency with which it executes its data
processing tasks. This offshoot of integration takes the form of intangibles not
capable of precise quantification. The capacity to flag repetitive demand,
enhance response tines, decrease error rates, execute tasking objectives
cutting across two or more administrative or operational jurisdiction etc; are
illustrative of these intangibles. Analysis of intangibles clearly demonstrate
the risk of excluding then from the evaluation process. Stand alone systems
performing essentially identical data processing tasks, yet programmed in
different languages, hold little potential for tangible yield at the systems
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level of operation.
Reliance on the strategy of cost effectiveness in the evaluative process
entails consideration of hardware/software efficiency. Efficiency thresholds
for computerized systems range from totally inefficient to extremely efficient.
Inefficient systems exact exhorbitant overheads and, more often than not, prevent
users from harvesting benefits of computerization; particularly, those belonging
to the intangible class. GAD is becoming increasingly critical of federal
agencies maintaining incompatible software systems. Articles setting forth
the GAO position in this matter have appeared in several issues of Computer
World published by CU Communications Inc., Newton, Massachusetts. Responsibility
for defining software standards reside with ODP, therefore, the Director of
Logistics is not in control of, but rather, is controlled by ODP in matters
associated with hardware/software system selection.
The efficiency of hardware/software systems configurations cannot be
measured in todays environment from the users perspective. For example,
projected development and implementation costs associated with computerization
under GIMS compared with costs of implementation under a different system would
provide a comparative base for evaluation. Traditionally cost distribution
factors have been formulated on the basis of projected stand alone system
development expense without reference to the alternative; namely, integrated
system development. Current review processes naturally lead to the selection
of stand alone systems which are less time consuming and costly to design.
This process does not offer a means for evaluating hardware/software efficiency.
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Given this setting, efficiency standards can not play a meaningful role in the
selection process. Application of cost effectiveness standards require that;
a) organizational concepts be defined and; b) the decision to enhance or
redesign the system be made on the basis of cost versus benefit studies.
Adoption of this standard presupposes that hardware/software efficiency is
being maximized.
Cost and urgency of demand may have been responsible for the configuration
of the internal system network. Time certainly influenced the system selection
process because integrated system design requires extensive manpower commitments
over long tine intervals. Given the immediacy of the system design requirement
it became necessary to forego long range advantage for short tern gain. These,
together with the interplay of other factors, are believed to have been causal
in the development of a system in which efficiency occupied a subordinate
position. One paradox is common to stand alone system networks; namely, that
efficiency of any particular system of the network may be exceedingly high while
total system performance is marginal. Analysis of ICS and its satellites
convincingly demonstrates that efficiency and inefficiency can coexist within
the system particularly in those networks not stressing integration and the
design of computerized interfaces. The design of an integrated inventory
management and control system holds promise of erasing this contradiction.
Moreover, adoption of integrated system concepts provide a better foundation
for the review and approval process in which system development or enhancement
can be more extensively analyzed in terms of cost versus benefit.
ei
" .
L',111 u t
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t.. IL?L.
Statute, regulation, and command and control normally determine operational
characteristics of supportive computerized systems. Enabling legislation
frequently specifies that a federal agency is subject to GAO audit reviews.
GAO's perception of an efficiently organized computer system provides a base
for the evaluative process. For example, GAO may flag the maintenance of
incompatible software systems for inventory management as a potential source
of inefficiency. System reviews nay also search for inefficiencies associated
with the maintenance of stand alone systems performing essentially identical
tasks as another source of inefficiency. ;lormally, stand alone systems are
designed especially for components they support and must therefore be considered
a derivative of command and control relationships. For this reason, efficiency
of the total system is not an essential property of the stand alone system
approval process.
Legislation specifies that federal agency's are required to; a) adhere to
accrual accounting procedures for budgetary and management control purposes and;
b) formulate such policy and procedural controls as nay be necessary to manage
the logistic .resource. Internally/statutes are interpreted and reduced to a
body of regulations controlling day to day operations. Regulations pertaining
to the field of inventory management specify the accepted methodologies for
exercising property control. Provisions of HR-
pecify delegations of 25X1
authority with regard to the property management function and concurrently
define the general capabilities of the supportive property control system.
According to this regulation the Director of Logistics is responsible for the
development and management of "an accurate and reliable system of inventory
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C
control", with enforcement responsibilities clearly specified in that section
which states that he shall "establish and/or approve supply management systems
... and their adoption to automated processes where necessary and cost effective".
The scope of inventory management is defined in section (2) (0) of this
publication wherein it is stated that the Director of Logistics shall "develop,
establish, and administer a worldwide supply system". Accordingly, statute,
regulation, internal cbaland and control relationships, and the eventuality
of a GAO system audit reinforce the need to commence design of an integrated
inventory management and control system in order to maximize efficiency and
minimize cost.
The data processing system is not organized to respond meaningfully to
urgency of demand factors. Consequently, most supply actions are accorded
equal priority for processing purposes. Responsive computerized systems
require that the system process high priority requirements prior to those
assigned low priority. Inclusion of urgency of demand factors in systems
design is essential because requirement processing always triggers competition
for scare resources. Accordingly, the efficiency with which computerized
systems operate is determined, in part, through the enforcement of processing
disciplines. Neither tine frame suspense nor tracking routines can be
effectively joined to a system in which most requirements are assigned
essentially identical processing priorities. Urgency of demand standards,
therefore, are an essential property of systems design.
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25X1
14. Trends Affecting Design Requirements of ADP Systems:
the impact of that directive translated into declining workloads in Supply Division.
Reinforcing that decline was the fact that many operational programs were throttled
down or deactivated. Analysis of requisitions processed through the supply system
confirm a rather precipitous decline since FY76. Contrastly, analysis of line items
purchased by the Small Purchase Branch (SPB) exhibit nominal 25X1
change. Average monthly line items processed in FY76 by SPB amounted to 1507,
1599 in TQ, 1303 in FY77, and 1530 to date in FY73. SPB is not an integral part
of ICS, therefore, transactions diverted to that branch are not recorded in thn
computerized ICS. Extrapolation of present trends into the future portends
further declines in ICS workloads. 25X1
LSD purchase
actions are excluded from ICS statistics. Yet, these procurement sources are
essential componenis of the total system notwithstanding the fact that
activities occurring in that universe cannot be quantified. Accordingly, it is
theoretically possible for ICS to be inactive while transaction densities mount
in external support systems. Considering the configuration of that system the
decline in ICS may be attributable, in part, to requisitioners preference to
acquire materiel from sources external to the formal supply system. Recent
retrenchments in operational projects also curtailed the issuance of firearms
and other materiel categories to some degree. Requisitioners may now be
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concentrating on the acquisition of inexpensive materiel through sources other
than those comprising the formal supply system. ICS is neither structured nor
organized to yield intelligence and performance data upon which to analyze these
trends. This shortcoming derives naturally from the fact that ICS workloads
represent a small fraction of total activity occurring in the support system.
Accordingly, strengthening data collection capabilities via computer means holds
promise to; a) improve efficiency of system operations; b) flag repetitive
demand so as to realize economies of large scale purchases; c) provide an
infbrmation management system capable of generating necessary logistic
intelligence for decision making and planning purposes, and; d) provide a
response capability which will decrease requisitioners dependency on external
support mechanisms.
Long ago, logistics maintained a reasonable facsimile of a centralized property
control system. Gradually, maintenance burdens forced a shift to the less rigid
decentralized system. The shift to decentralization spawned the need to exploit
capabilities of computer technology in order to properly exercise resource
management at component level. Emerging from this pattern was a proliferation
of stand alone computer systems each presumably designed to meet unique reporting
and management requirements of the component involved. Orginally, these systems
were designed to accomplish low level data processing tasks but in the course of
evolution and enhancement, stand alone systems assumed the properties of higher
order inventory management and control systems. Augmentation of resource
management capabilities, in turn, encouraged components to develop independent
management doctrines. This process is believed to have partially responsibl2 for
.
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otwq,k,
the drop in Supply Division workload factors which has been matched by
increased workloads in the stand alone system network. This conclusion is
convincingly demonstrated in comparative system analysis. Three indices
support the conclusion; a) comparision of asset worth between logistics
inventory and four PIU systems; b) comparision of line items processed between
logistics and the four PIU systems, and; c) comparision of line items maintained
between logistics and the four PIU systems. Analysis of these three quantuns
indicate rough comparability which means that total system workloads are now evenly
divided between logistics and four PIU accounts. Assuming perpetration of present
trends, it is reasonable to conclude that components will assume residual
resource management responsibilities now being exercised by logistics.
The Office of Communications plans on implementing a stand alone system for
the express purpose of managing approximately 15,090 line items now positioned, or
25X1 soon to be positioned,
Apparently, OC plans to finance the
acquisition of materiel to be allocated to ram and associative systems from direct
materiel procurement allotments so as to circumvent formal accounting control
procedures. Impler,entation of REM will impact on logistics in several ways; first,
it will automatically delegate responsibility for the management of approximately
23,000 line items
25X1 13,000 plus items now managed
maintain in the system to external components which exceeds the
by a multiple of two and; second, the success
of these ventures has the potential of encouraging other components to follow
suit. Accordingly, programs now in progress may restrict the director of logistics
sphere of influence in resource management. These shifts, while contributinD
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to the efficiency of operations at component level, can be expected to degrade
efficiency at systems level.
Analysis of Materiel Procurement Allotment obligation and expenditure
patterns indicate that the dollar value of directs has increased. Uhether this
trend is permanent or transitory cannot be determined at this point. The trend
does seem to reflect an Agency wide pattern. 41oreover, with regard to OC the
trend has the appearance of being permanent. This component plans to augment
its procurement from direct Materiel Procurement Allotments which may reinforce
trends occurring in the support of other Agency components. Collectively these
trends have the potential of further decreasing ICS workload factors. The
design of a system capable of flagging repetitivt79a4iya)reverse this trend.
15. DOD Software Sys tens :
Attachment -T" defined specifications for the Uni ted States Army 's
automated Commodity Command Standard System (CCSS). A cursory analysis of this
system indicates that it may have applicability in the Agency's environment;
provided, minor modifications are made in the software system. CCSS operation
and maintenance personnel are assigned to the Army Logistics Nanagenent Center
and have the capability to install the system at user request. The only
stipulation is that the user installation not effect software change subsequent
to installation. CCSS has features of interest to logistics and is capable of
performing data processing tasks GINS is not organized to execute. For example,
GINS is not programed for high level computerized interface with external
systems and is not likely to be so programmed in the future. These interfaces
are designed into CCSS. The advantage of considering CCSS as a candidate
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system is that the program is already coded. Whether or not.CCSS has the
capability to meet Agency requirements could not be ascertained except
through detailed analysis of that systems capabilities and limitations.
GSA and other DOD components have developed specialized inventory
management and control systems for distribution to user installations.
The only stipulation in connection with installation is that the system
not be modified in the absence of command approval. The probability of
commercial systems meeting data processing mquirenents of the federal
supply system are remote. This is because no counterpart to DLSC exists
in the commerical world requiring complex interfacing techniques.
1116%)1;..%
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_
16. Conclusions:
This study concludes that:
a. Stand alone systems comprising the network perform their data pro-
cessing tasks responsively and efficiently. These benefits, however,
are not transferable to the total system because neither computerized
interfaces nor integration has been established as a system design
standard. Consequently, few benefits have been harvested at the
total systems level of operation as a result of computerization,
particularly those associated with cost, efficiency, and quick response.
Operational characteristics of the current system, together with the
autonomy of its elements, make redesign of the entire system the only
logical approach to the problem.
b. ICS's information storage and retrieval operations are very limited
In scope and relate primarily to inventory control. This system is
marginally capable of; 1) automating repetitively performed tasks;
2) eliminating manual file structures and manually controlled logs;
3) document preparation and distribution; 4) time frame suspense and
tracking operations; 5) generating status information in response to
queries or in response to violations of time frame suspense routines;
6) flagging repetitive demand; 7) computerizing routine decision making;
8) integrating subsystem activities such as those associated with CONIF, EARS,
AWCS, the Vehicle Control System and the four SAS into a unified system;
9) reducing error rates associated with system operations and; 10) inter-
facing with external systems such as DLA, DIDS, DAAS, and others.
_
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Given these gaps, implementation of ICS may well have increased
rather than decreased manpower burdens with concomitant loses in efficiency.
c. The SAS network occupies a crucial position within the total system
context. Without computerization of this component of the system, additional
increments of manpower would be required to discharge finance and resource
management responsibilities. Accordingly, it is imperative that any
effort at redesign take tasking requirements of externals into account in
order to ensure that component efficiency is not jeopardized. Redesign
will require considerable time because data processing requirements
must again be defined and be translated into a program. Concurrent with
this phase of the development effort, feasibility studies associated with
hardware/software selection could be conducted to ensure operational
efficiency.
d. Statute, external regulatory requirements, the probability of future
GAO system audit and review, the most recent Audit Report and provisions
25X1 of
Implicitly suggest that the integrated systems approach
represents the most economical and efficient route to a computerized finance
and resource management system. This study also concludes that the integrated
system has the potential of being more cost effective and efficient than
a proliferation of stand alone systems performing essentially identical
data processing tasks. The totally decentralized ADP system yields few
manageriel benefits because logistics personnel cannot be meaningfully
and efficiently utilized in this environment. Perpetuation of current
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L
trends into the future, therefore, runs the risk of rendering certain
components of logistics obsolete notwithstanding the fact that decentral-
ization is much more inefficient that a centralized information management
system. Existing command and control structures can be preserved in the
integrated system, therefore, this argument cannot be used in countering
the integration scheme.
17. Recommendations:
It is recommended that:
a. Systems Analysis Branch be chartered to develop requirements for an
Integrated finance and resource management system and that this branch be
staffed by professional logistics personnel faMilar with logistics operations
and systems techology as well as the contingentof ODP personnel now assigned.
b. The initial redesign effort be directed at the computerization of supply
division operations.- Presumably the scope of this effort might include, but
not necessarily be limited to integration requirements for ICS, depot
operations. FARS the vehicle control system, AWCS, and the cataloging
module.
c. Phase two of the redesign effort logically follows and entails integra-
tion of CONIF, the Procurement Module, and the design of an updated GAS
-interface.
d. Design specifications for phase three may well be addressed to the
definition of interfaces with companion DOD systems such 'as DIOS, OMS,
DLSC, DLA and other.
e. Phase IV, the integration of the four SAS will entail considerable effort
in order to cop. data from the four data bases and reformate that data for the
resident data bate.
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f. The content of candidate internal and external training programs be
explored to enhance the potential of those assigned systems development
responsibilities.
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GLOSSARY OF TERMS
AWCS ? Agency Weapons Control System programmed to record the serf el
number of weapons maintained in the system.
25X1
CCMS - Commodity Command Standard System. Automated system used by Army
for resource and budget management.
CMDN -
Cataloging Management Data Notice. Machine sensible output of DIOS
notifying authorized subscribers of data base updates.
CONIF - Contract Information System designed for OL use.
DAAS - Defense Automated Addressing System. Defines standards and operating
procedures for transmitting and receiving electronic messages over
DOD communications system.
DAC - Data Access Center, OL.
DCN - Document Control Number. Control number assigned requisitions by
submitter for control purposes.
25X1
DIDS Defense Logistics Data System. This system maintains the data base
for the DOD inventory management and assocative systems.
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DLA - Defense Logistics Agency. Elements of this system are responsible
for the issuance of supplies and equipment to authorized entities
of the U.S. Government.
DLSC - Defense Logistics Services Center. DOD element responsible for the
management of item identification and management data.
DOD - Department of Defense.
FARS - Federal Automated Requisitioning System. Internal system designed to
format, transmit, and receive electronic messages over DOD communications
system.
FEDSTRIP-Federal Standard Requisitioning System. This system is GSA maintained
and defines procedures for requisitioning materiel through the GSA
system.
FRS - Finanical Resource System. Automated system designed to provide
summary accounting data.
GIMS - Generalized Information Management System. ODP maintained data base
management system used by OL for the maintenance of ICS, CONIF, and
other applications.
ICS - Inventory Control System. This system was developed by ODP as an
internally maintained inventory management and control system.
LADS - Automated inventory management system developed by ODP for implementa-
tion
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LCN - Logistics Control Number. Control Number assigned to supply actions
diverted to Procurement Division.
MILSTRIP-Military Standard Requisitioning System. This is a DOD maintained
system and defines procedures for routing requisitions to DOD storage
centers for supply action.
NIPS - National Military Command System - Information Processing System.
Data base management system developed by DOD.
NPIC - National Photographic Intelligence Center.
OC - Office of Communications. Responsible for maintenance of
REMS.
OTS - Office of Technical Services. Responsible for maintenance
PRA - Property Requisitioning Authority. Provides a cost ceiling to
requisitioners against which to charge issuances of materiel.
PIN - Purchase Instrument Number. Control number assigned by Procurement
Division, IDSB, and, where appropriate the decentralized procurement
teams to identify contracts.
PRAT - Property Requisitioning Authority Tracking System. This system is
maintained by OL and was designed to maintain current balances of PRA
In the system.
PCS - Prime Computer System. Identifies the main frame computer in a
distributive network consisting of component terminal processing or
mini-computers.
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PIU - Property In Use. Signifies that accountability/responsibility for
materiel issued by OL or acquired by other means resides with the
REMS - Repair and Return Materiel System. OC computerized system soon to be
implemented for the control of organic spares or spares, subassemblies,
and components of major systems returned to internal facilities for
restoration and return.
SMB - Supply Management Branch, OL.
SOPRA - Status of Operating Property Requisitioning Authority Report. Prepared
periodically by Office of Finance to provide status information to
authorized components of the system.
SPB - Small Purchase Branch, OL.
T/P - Terminal Processor. Mini-computer normally programmed to relieve
PCS of routine data processing burdens.
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?
-
. .
- ?.!
? -;
equrnen and dov;ces, inclmling tc)cgrapl a.d tektyp.:
crielpment; iicLas, ir..-1;ntanance, operation, repair, and kre at
passengf?r i'tor and aircraft, and vesw.ls? of all kin0:;
subjt:ct to polices es tal )1is!: :A by tho 1)5: actor, banspoilatim o:
CI.;c7e.rs arid caip3oyees of the Ag:.-..y in Governc71:1;!-ov.,nc.?:.1
atta-
ve ecnip:n3.)t betv.,ecn their d(;miosles and 1.*:ccs
V. Ii such personn,71 are engap,c41 in v.'ork ?,,-hich makes
transportati necessary, and transportation in such c':_i_7.7.2:nent, to
and horn s'clooi, of children of Agency pc rsolinel who have quarters
for them-;:h..-s acl.theS3- families z)t. .isulatc,d stations outside the
continenta'. United Slates whc:rc adequate public or pr.'?'at::! tm,::;-
portation is not available; printing and binding; puichase, rnain-
nance, and c7eaning of firearms, inc din purchase, storage, and
maintenance of ammunitie;,; subcct to policies est had by the
Director, expenses of travel in COMICC:i0D with, and expanses inci-
dent to aucr,17:nce at inceting,s at pror,:,..ssional, technicd,
and other similar organi7ation3 when such attendance would be
a benefit in Cie conduct of die work of the Agency; 'association :Inc;
library dues; payment ei premiums or costs of suroty bonds for
officers cc ein:lo:,?ccs without regard to the rovision. t,f's.r:ction 1.1
of Title Ci;" pa> ment :of cLdm pursuant to Title 28; nect,.::zition oi
necessary- lard and the tlearing ef:-;:c;h crsi;717c'.1.:::77 or .1.)171-
5ngs and facilities without regard to secti4.-ms 259 arr.7 5"7 of Titic
40;" repair, rental, operation, and maintenance of bt:i1cLngs, utili-
ties, faciiiti:- 7, and appurtenances; and
(2) suppes, equip:7,137:1J, and personnel and contract,.,:li services
pLherwise authorized by law and re,t:;tilations, when a:Tio,%.7c..? by the
Director."
(b) The sums wade availr.ble to the Agency ma?,.. !Jr,. exT3or.3.ed
vvithout regard to the provisions of law and regulations relating to
the expenditure of Government funds;" and for objects of a con-
fidential, extraordinary, or emergency nature, such f:.:1-lenclitul'es
to
be accounted for solely on. t;-.:e certificate of the Director and
every such certifica0 shall.bc,deerned.r.,.tblicient voucher for the
Innount therein certified."
?
SEPARAEMTY OF PROViSIONS
Sc. ::).42if any. provision of thif Act, or the appli,..ation of
sucT: p;?ovisien to any pe.-son or eireurns;tances, is hela. invalid, .the
Ser.ternber 1070
38
Excerpt From "Central Intelligence Agency Act of 1949"
Appendix .A
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726, 3 U.S.C.A. 105) the President s authorized to fix the compensation
of the Executive Secretary of the National Security Council at a rate "of
compensation not to exceed that of revel 11 of the Federal Executive Salary
Schedule." For the rate set for level 11 see Federal Executive Salary Act
of 1964 at page 173 of the Guide.
12 The Director is cllsojhe "President's primary advisor on foreign intel-
ligence" (subsection 3(d) of Executive Order 119'05), with interagency
authorities and responsibilities prescribed primarily by subsections 102(d)
and (e) of the National Security Act and by Executive Order 11905.
13 The Act of 1947 did not include the position of Deputy Director and
for several years there was no "provision of law establishing a Deputy
Director with statutory authority to act for the Director or to perform
such functions as the Director may assign to him" (H.R. Rep. No. 83-219,
March 30, 1953). The existence of ttle position was given statutory recog-
nition by the enactment of the Executive Pay Act of 1949 (63 Stat. 880,
P.L. 81-359, October 15, 1949), wbich prescribed compensation for the
position. The position of Deputy Director was created by an amendment
of 1953 to subsection 102(a) (67 'Stat. 19, P.1. 82-15, April 4, 1953),
I ,
thereby enhancing the authority and stanAing of the position and its
incumbent. The statute also served Fto put to rest any contention that the
statutory acknowledgement of the position in the Executive Pay Act of
1949 converted the position to an appointive office to which a commis-
sioned officer could not be appointed in view of the statutory prohibitions
against the appointment of such officers to appointive offices (now 10
?
U.S.C.A. 973). The 1953 amendment also amended subsection 102(b) to
render that subsection applicable to the Deputy Director, as well as to the
Director.
i(
14 In addition to the authority to "act for, and exercise the powers of
the Director during his absence or disability," it is considered "inherent
In the statutory position of the Deputy Director that the holder will assist
the Director in the performance oe his duties, including those vested by
law in the Director" (41 Comp. den. 429 (1962), Guide, p. IX-9). the
,
President has directed that the Direvor "shall, to the extent consistent with
his statutory responsibilities, delegate the day-to-day operation of the
Central Intelligence Agency to the Deputy Director of Central Intelligence"
(Executive Order 11905, subsection 3(d)(3)).
#-12
15 November 1977
Excerpt from Footnotes tp the "National Security Act of 1947"
Appendix B
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'A
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1
ACCOUNTING
SEC. 6
In the 1950 lax,v, the Congress specifies that the head
of each executive agenscyl is responsible for esta:blishing
and maintaining syStems of accounting and internal con-
trol which conform to tfieP rinP ' ei les standards,t and related
requirements preseribed by the Comptroller General of
the United States. ' furkhor cfo.rified by Public Law" 84-86.3f
rs.pproved August 1, (73 7z)..3), the. law provides -a
framework of ij.rialloia;..;,;..:3-.,znager_ICiq within Which an
accounting system must necessarily operate in achieving
these objectives.
Accounting is not an end in itself but is an portant
part of each agency's management control systern. Satis-
factory accounting systems are necessary to proVide es-
sential and reliable irifOrmat'ion to management 'officials
for use in achieving efficient and economical operations and
to enable them to satafactorily report on the custody and
use of resources under their management.
Although the head.of each agency is responsible under
the law for the accoupting systems in his organization,
authority for carrying .out the accounting function is ordi-
narily delegated. 14owever, the ultimate responsibility re-
mains with him and he Aould atisfy himself that:
(1) A proper accounting system is established, based
on prescribed 'accounting principles and standards
applicable to his operations.
(2) The information provided by the accounting system
lends itself to Tffective use.
(3) Such information is being used by responsible offi-
cials in programming the agency's activities, in
preparing budget data, and in achieving and main-
taining efficient and economical operations.
,
'Sections 114, 116, and 119 of the cited act apply to Govern-
ment corporations and agencies subject to the Gov? ernment
Corporation Control Act (59 stat. 597).
.2-7
TS 2-22 8/1/72
Excerpt from "General Accounting office, Policy and Procedures
Manual for guidance of Federal Agencies" title 2 accounting.
Appendix C
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1
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I
1 r
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IvIE:10RANDUNI FOR: Lircctor, Support Information Processing System
(SIP-6) Task Force
Stja;ECT : Property In-Use
REFERENCE : Merao'dtd 3 jnit 72 to OL/ADP Coordinator ix -
C/M1Q,SI2S Task Force, same subject
I. In response to paragraph 2a of the referent memo,. the Office of
Logistics expects to have the necessary staffing coalpleted so that Property. in-
Use ad Type HI accounts .can be converted to the simplified Type II Financial
Acoo-.1.nt4;. (172A) procedures c;foctive no later than 1. July 1972. hUe
the convercion is a si.:Tificant citange in policy and procedure, ve do not antici-
pate any difficulty in ei.taining the necessary concurrence.
2. Paragraph 2b of the reference addresses the ,general policy repirciing
Logistic:8 records on Property In-Use and recioires a more careful analysis.
For c.mpic ve must contInu?::, to coil oat aild record data conz,:erning Ve;IICT(2S.
ThiS
is being done at present by two mcAhods: (a) t basic line item doScription
inforalation i3 carried in the.arpropriata Type In or Pxoperty In-Use account,
and (7.:-) that basic description plus additional technical descriptive data Is carried
separately in the vehica I information data base. Vhile the latter data base takes
on .sorre aspects of Property In-Use, it is and must continue to he maintained for
purpos other than to meet the requirements of FPA. N',.e may wish to extend
that control and re.:cordkeepina philosophy to other areas of property (e.g.,
weapons) but those systems also would be something other than the Property In-
Use system as we know it today.
7. We believe that the Office of Communications and Technical Services
Division will wish to mainzain certain in-use records trader the new Materiel
Resources Syst?m. TbAs Calice is not qualified to address those requirements,
however, and sugEsts that the sk Force take up such questions with those offices
and other offices that might ha concerned.. ,
.Distribution:
Orig & 1 - Addressee
- OL/SD/SMB - Officio:
? ? 1 - OLISD/SNILVGNINIS (
1 - OL Files
? 1 - D/L chron
,
OL/SD/SMB/
Approv
John F. Blake
Director of Loxistics
OL 2-0112,Lt
(1,4 Ian 72)
: CIA-RDP85-00985R0007008010011j3( D .
? A
. 25M
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I 1! [, 1,, 1
Excerpt -from "Natioual InLellis_;ence ,and .ReCorm Act or 197F,"
,p; -,-; ,,' T c ,-- 1 4 ,-,. 1 i ?-?-?st '?
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I00111
5 .2-rier.
(4) Any activity ,',1-e[=-d from the Fund that -continues
after the end of the fiscal year in which such activity was
initiated shall be funded thereafter through the regular
budgetary process at the earliest practicable time.
(c) The Director may approve the expenditure of funds tO
cover matters relating to national intelligence activities of an
extraordinary or emergency nature. The expenditure of funds for
'such purposes shall be accounted for solely. on the certificate of
the Director and every such certificate shall be deemed
sufficient voucher for the amornt certified therein, but funds
expended for such purpose may be expended only for activities
authorized by law. The Director shall report quarterly to the
Committee on Appropriations of the House of Representatives, the
Committee on Appropriations of theSenate, the Permanent Select
Committee on Intelligence of the House of Representatives, and
the Select Committee on Intellf.gence of the Senate on
expenditures made under the authority of this subsection.
(d) (1) All funds appropriated to the Office of the
1
Director, all funds appropriated to entities of the
Intelligence Community, and all national intelligence
activities, counterintelligence activities, and
counterterrorism activiti's conducted by entities of the
Intelligence Community, and information and materials
relating thereto, shall be subject to financial and program
Management audit and review by the Comptrollara_f_eneral of
the United States upon the request, or with the approval,
of (A) the Permanent Select Committee on Intelligence of the
HouseofRepresentatives,(B) the Select Committee on
Intelligence of the Senate, or upon the request of (C)
,
? t
other committee of either Uouse of
Congress; except that in
the case of any financial and program management audit and
review conducted by the Comptroller General ef the United
States upon the request of any other committee (other tha
. ?
the Permanent Select Commi,ttee on Intelligenee of the House
of Representatives. and the Select Committee nn Intelligence
of the Senate), the abdit and review may not extend beyond
_
?
f.
(/)-((4prtiged FrorlReleecipe 26135/A5j/12 CIMRDP85-00988R000700020001-3
? (? f J4 / l'1 aft s. , / -r,-,`4
Appendix G
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.??
the activities over whicl_:.luch coE,mittee .as legislativo
jurisdiction. _
(2) Notwithstanding the foregoing provisions of this
subsection, the Director may exempt from any such audit and
review any funds expended for a particular activity, and the
activity for which such funds are expended if the Director
(A) determines such exemption to be essential to protect the
security of the United States, (B) notifies the appropriate
committees of the Congress of such exemption and the reasons
for granting it, and (C) reports semiannually to the
-Permanent Select Committee on Intelligence of the House of
Representatives and the Select Committee on Intelligence of
the Senate on each activity exempted under this subsection.
(3)
Any audit or review conducted by the Comptroller
General of the United States under authority of this
subsection shall be conducted in accordance with such
security standards as the Director and the committee
requesting or approving such audit shall prescribe.
(4) The results of any audit and review conducted
under authority of this subsection shall be submitted to (A)
the Permanent Select Comnlittee on Intelligence Of the House
of Representatives, in the case of any audit or review
requested or approved by a committee of the House of
Representatives, and shall be made available by such select
committee, in accordance with and subject to the provisions
of the resolution establi
hing such select committee, to the
committee of the House of Representatives (other than the
Permanent Select Committee on Intelligence) which requested
or approved such audit or review, and (B) the Select
Committee on Intelligence of the Senate, in the case. of any
. .
audit or review requested or approved by a cmittee of the
Senate, and shall be made available by such select
Committee, in accordance with and subject to the provisions
of the resolution establishing such select committee, to the
committee of the Senate (other than the Selct. Committee on
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Intelligence) which rcquestd or approved such audit or
review.
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FARS
C.)
4-)
VECS, Input 1
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Profile of Agency Property Management System
Automated Interface
DLSC Output
Mfrs Part Nbr To
Stk Nbr Cross Ref
Requisition
!Manual
lInput
OS/TS
ilounpvVV
Manual
Hard Copy ICS
GIMMS
V
NDEPENDENT SYSTEM
15,000 Line items est.
Teletypewriter and
equipment communicatibn ?
spares
Manual
Hard Copy
DLSC
DAC
Manual
Input
OTS
COMMO
NPIC
DDS&T
Output of DLC/DLSC in machine
sensible format yet no machine
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Cr;
u4
AWCS.
NIPS 25X1
NI PC
Assembly
LADS
PL-1
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25X1
25X1
Approved Fot ezeteave 2otrstetm ciA-RDittesl-dritsdiobifiduiinout
ICS and
System Data Flows
Stock Release Transaction
Prepare /To Consignee
Manua:H.), >
/
I
Update Files
DAC
Shipping
Document
?>
Shipping
Document
Consignee
Acknowledge Receipt
Manual
Input
I FZ
_ Issue
Verification T
Input
Depot
Computer
Generated
Suspense
Files
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Computer
System
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25X1
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X1
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ICS Estimated Monthly Volumes, 2 June 1975
exc1udinlz c,7)
--r--
*Nkpmber
Inputs Menu Transactions
of
-. No. of Characters
X Per Input
Total Xo. of
= Characters
Suspense-File
Stock (6's) 1001
Directs (7's) I001
2472
2473
60
60
148,320
148,380
Stock Replenishments (OR) 1001:
.373
60
.22,380
Receipts 1006
Directs Coll)
73
31
2,263
Stock Replenishments (1A,2A),
385
31
11,935
Amendments (7 ' s , OR) 1008
, 3000
30
90,000.
Cancellations ' 1009
40
13
520
WO Rel 1010 .ease (Mgt)
45--?-:
13
585
Requisition, Confirming 1004
44
60
2,640
(6's,71s)
Inventory Adjustments , 1012
310
50 .
15,500
(S-AL-C-Price)
hid Inventory Maintenance y 1013
200 '
?- - 50
10,000
' (Reorder Point, etc.')
Cost Adjustment (9's) 1019
,
. .
50
50
2,500
.
Property' Turn-1n ? 1005
223
50
11,150
(2's except 2A's)
MONTHLY TOTALS:
.. 9834
466,173
.
? Daily Transactions 447
Daily Total No. of Characters - 21;200
Xey Strokes Per Minute Capability - 15**
? Daily. Production for OnOperator - 6 hours
21,200-i 15 hey strokes per minute = 1413 minutes
1,413 60 minutes = .24 hours
24..: 6 hours = 4 operators
?
NOTE (-umber of Transactions
Based on April 1975 Volumes
**Considers: Inexperienced Operators
System Bohn Time
Manual Preparations of Documents
for Input.;
-Queries
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Appendix L
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25X1
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25X1
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25X1
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Transactions Processed
,FY-76
July
6472
August
6186
.September
5992
October
6616,
November
5438
December
6613
January
6441
February
.6480
March
7080
April
7589
May
5878
June
7121
TOTAL
77,906
Average FY-76 = 6492
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Appendix R
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241
MEMORANDUM FOR: Director of Communications
FROM
SUBJECT
Chief Audit Staff, 0/IG
??
/-/
t)F.0 Zgo
Report of Audit, Office of Communications,
1 November 1974 - 31 August 1976
1. Attached is a copy of subject report.
Please advisethe Chief, Audit Staff of action taken
on recommendations contained in the report.
2. We appreciate the cooperation and assistance
extended to the audit team during the audit.
zpo
Attachment:
as stated
Distribution:
- D/CO
1 - DDA
1 - 0/Com
1 -
? 1 - fl /Fin
1 NIG
ppen
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1 . MEMORANDUM FOR:
,
25X1; FROM
'
Director of Logistics
-V /
L
General ri
THROUGH : - Inspector
?
Chief, Audit Staf
SULJECT : Report of Audit,
Office of Logistics - Supply Division
1 February 1975 - 31 October 1976
1. Subject report is attached. Please advise this
office of action taken on .recommendations contained in this
report.
2. We appreciate the cooperation and assistance fur-
nished the auditor during the audit.
Attachment:
as stated
- Distribution:
- fl/Log
1 - DDA
1 - 0/Compt/DCI
1 - fl/Fin
1 - 0/IG
25X1
y
25X1
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tjr:(71
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REPORT OF AUDIT
Office of Logistics
Supply Division
For the Period
1 February 1975 - 31 October 1976
.SUMA1:N OF OBSERVATIONS
Supply Division (SD) personnel are dedicated to the. needs
of the Agency. They perform their functions in a cempetent
and professional manner.
Division operations generally are conducted in compliance
with applicable directives and regulations. However we believe
that some of the directives and regulations should be amended
to strengthen controls over non-expendable property in use.
The division conti,nues to meet the time requirements
of its customers when filling requisitions from existin;,,
stock or through its own purchasing facilities. Some cleys
occur if procurement action is required. The Procurement
Division backlog is discussed in a separate report.
Several major Agency components have developed or are
developing their own property ac ountability systems, a
condition which leads to duplica,ion of effort by Office of
Data Processing and the originating component.
This rep61t includes comments and recommendations on a
variety of subjects including:
- Property Accountability
- Management Procedures and Controls
Other matters were brought to the attention of division
officials for appropriate action.
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-
SCOPE DY AUDIT
The audit included:
a review of controls and procedures related to
the requisition and ri:anagement of property
in the Agency .supply system
an examination of the effectiveness of the
changes in SD since its reorgo:lization in 1974
- an evaluation of the extent to which customer
requirements were met on a timely basis ?
- an examination of controls and procedures
to determine the adequacy of safeguards ? over
Agency assets
a review of operations to determine whether
they are conducted in compliance with applicable
directives and regulations
25X1
A site audit'
will be audited at a later tate.
The results of an audit of the Inventory Control System
will be reported on separately.
'ExiJnditures related to Supply Division activities
were re:lewed during a concurrent audit of the Office of
the Director of Logistics.
I.
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BACKGROUND
14 Tho Supply Division budget for Fiscal Year 1976
is cl154t t
as follows:
25X1
2. The division has a table of organization of 202
positions. The charts attached as Exhibits A, (Supply
Division) show how the division is
organized and indicate the number of people assigned to 25X1
the major units.
DETAILED COMMENTS
Property Accountability System
5. Agency regulations assign rc:-J;o:
control of property to the Office of
Director of Logistics has charged
task of developing appro7iiate accouli'..?
,
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-4-
25X1
6. In recent years several Agency components adopted
automated property management systems through which they
maintain propeity accountability. Other components are
studying the feasibility of developing their own systems.
The Office of Technical Services, Office of Communications,
and the National Photographic Interpretation
Center are among the components interested in having their
own property systems.
7. The Components are interested in developing their
own automated systems for both. management and property
accountability purposes. The components felt that per-
sonnel reductions and the size and activity in their
accounts made the manual system unworkable. In order
to automate their systems some components went directly
to the Office of Data Processing for assistance. Others
tasked programmers within their own organization to
design and program an automated property system., The dupli-
cation. of effort required to develop individual automated
property systems is uneconomical and inefficient; it may
lead to multiple cases of "re7inventing.the wheel". The
development of automated property accounting systems shotld
be centralized in Office of Logistics.
Recommendation fl: Develop automated property
accountability systems i:.hat can serve the needs
of all Agency ?components.
8. Supply Division is reviewing the property accounting
system with the view towards strengthening controls yet
retaining simplicity. We too have been concerned for some-
time about weakness in the system. The system does
not provide a centralized control that identifies the
location and value of non-expendable property. There ca:?
be no assurance that all non-expendable property is
accounted for. In our opinion the fonowing measures
should be considered in. any revision to peeoperty account-
ability procedures:
_
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a centralized Headquarters control over
property to assist management .in knowing
where all non-xpendable property is located
a procedure to control all non-expendable
and expondol)le. property over a given dollar
value (now $200) until the receiving component
can document the consumption of the property
a revised dollar value for non-expendable
property from $200 to a higher limit to. take
into account the effect of inflation
a property control register to control accountability
a schedule of shipments to advise responsible
property officers what shipments were made
a cable or shipping document to support the
document recording the transfers between accounts
9. The Audit Staff recently- -17LI.s invited to comment on
the proposed revision to the property accountability handbook.
Our detailed comments will be the subject of a. separate -report.
Test and. Inspection Procedures
10. We previously reported that testing and inspection
(TI) of all non-expendable procerty resulted in delay of
payment to vendors. We also rer.Jrted a low rejection rate
of items tested. We felt that t.le knowledge of the inspectors
as to which materiel is likely t.) be rejected justified
inspection of property on a test basis. No changes in
procedures were made during the audit period. However in
February 1977, a supply instruction was revised to provide
for inspection on a test basis. The new procedure should
help speed the flow of receiving reports and the payment
to vendors.
Follow-up on Requisitions
11. Each of the three commodity teams within Supply
Management Branch (SMB) include one member .vlic) bas the
responsibility of follow-up action when a cu,;temol- (1,12tions
the status of a requisition. However most re uii Mn:. iac
through SMB before foliow-up becomes necessry. C-
SMB personnel must refer the on0,-.1-- on to -
Data Control Unit at 1 where 1..;1.
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action takes place. We also learned that various sections
of the warehouse recive direct calls, from customers interested
in pafticular requisitions.
25X1
12. The supply system Tecords "due-outs" (unfilled
customer requisitions) some of which are quite old. Supply
Division has considered iollow-up action to. determine whether
the ordered property is still desired. But no procejtre
has been established to accomplish this action. Failure to
take follow-up action may result in purchase and delivery of
property which is no longer needed,
Recommendation ?'3: Institute a follow-up
program to determine whether old unfilled
customer requisitions are still valid.
Time Frame Suspense Module
i. The Tine Frame Suspense (TES) module, an enhance-
ment to the Inventory Control System, is expected to be phased-in
during Fiscal Year 1977, This module will enable management
to track transctions through the system. Variations from
prescribed standards should become apparent thereby enabling
prompt orrective action. Oace TFS is ,implemented, the
product- vity of those units performing the inventory control
functie can be measured. TFS also is expected to allow
retrieval of data on Materiel Procurement Allotment (MPA)
issues and Property Requisitioning Authority (PRA). MPA and
PRA are procedures followed to control the issue and
replenishment of property for components. Until the TFS
enhancenent is implemented, management cannot effectively
determine the efficiency of the various components of
Supply Eivision. We plan to review the effectiveness of
the TFS nodule during the next audit.
25X1
hoca'cion of pply ManaPement Branch (SMB)
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has ciVtsidc.red the move.. in .the past and found merit
in the suggestion. 'hit. the move was not made. We believe
the beiJefits to be derived from the move should be re-
considiered. The move wid provide a chnce for SMB personnel
to recpive cross-training in. The move 25X1
would permit more efficient use of: per(J)
snn l. Those assigned
.
to areas with temporary. slack periods in their workload can
be reaSsigned to other areas that have a backlog c)7i work.
The moye also would eliminate the duplication of requisiti,3a
files and should eliminate the. need for follow-up action to
more than one location. And finally , the move wou'J d provide
branch personnel with a.better understanding of the entir
supply operation.
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Property Out for Repair
25X1
18. Classification, Repair. and Disposal Section (CRDS)
maintains records at to control property sent
out fo-,: repair. No follow-up procedures exist to ensure
that the property was returned. No follow-up action has been
attempted. Often times the property may be returned by the
company performing the repairs directly to the Agency
component concerned. Without follow-up action between
other offices of Logistics and the repair facility or Agency
component concerned, there can be no assurance that the
Property was returned. Some property may have been lost.
CRDS rcords indicate some items sent out for repair before
1972 have not been returned.
Recommendation 117: Establish procedures
ich would allow for an annual follow-up
on property out for. repairlonger than
six months.
25X1
Property Disposals
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On-Loan--Property
21. Supply Management Branch has a procedure Which
permits ',gency components to use property for a 90-day
period wthout cost to the user. This .on-loan-property
procedure was established so that components could acquire
property on a temporary basis primarily for test and
evaluation purposes. A written justification is required
to extend the loan beyond 90 days. The Chief, Supply Division
must approve extensions beyond 180 days. The records
indicate that some property is held past the initial loan
period with little or no, justification offered for the
extension. Consequently some components use property
kor exterded periods without charge to their account.
Recommendation #9: Ensure that property
loaned?in excess. of 90 days is justified
or approved.
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2. Property on loan to Agency components originally
was placed in allocation code 05 (on loan to Agency activities
for t&st and evaluation). Government furnished equipment
(GFE)Iconnected with contracts with other Government agencies
also yas assigned the same 05 allocation code. Subsequently
allocation code 05 was replaced with code 6E.
k. The Analytical Section/SMB has had little success
in reconciling the on-loan-property documentation with a
machine listing of code 6E property. Three problems were
identified:
identifying and clearing on-loan-property
still in allocation 05
identifying and clearing GFE from allocation
codes OS and the 6E
ensuring receipt of requisitions coded
on-loan-property from the Commodity Teams
in SMB where the transactions are origi-
nally coded.
24. The last problem cited was resolved during the
audit: the Analytical Section/SMB must approve all allocation
code GE transactions.
25. The resolution of first two problems requires a
continuing effort to research past data. Current charges
are being monitored by extractig a monthly listing of
code GE property from the Inven ory Control System and
reconciling any changes which my have effected the listing
during the month. These procedures were implemented after
our initial discussion aid review of controls over on-loan-
property. The new procedures will be reviewed next audit.
Recommendation #10: Continue to follow-up
on discrepanciesdiscovered during the review
of allocation code OS End 6E property.
Duplicate Files at Depot
26. The Preservation and Packing Section (PUS)
maintains shipping document files. About 75% of the FY 75
? files we reviewed were invalid because PUS does not reeeive.
information on those requisitins canceled or retired to
archives by the Data Control RCM. The DCII is respon-
? sible for maintainj e d: conti-01 number (DCN)
files at ITbe :21 the IL'j files to
25
1
e4se,2005/97/12 L:CIA-RDP85-00988R000700020001;3.
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25
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Recommendation #11: Keep current the
separate sTapping document files in the
Preservation and Packing Section.
Forklift Maintenance Contract
-27. We previously discussed the limited use of fork-
lifts at thel We recommended that consideration
be given to ieuucing tne number of forklifts on hand.
Since the audit seven were disposed of and two were trans-
ferred to another division.
28. We reviewed the cost of maintenance contracts
for the forklifts and found that in 2 years about $61,000
was spent for 2,000 hours of labor and for small parts.
The value of the small parts could not be determined from
the records. I personnel support our opinion that
consideration _should be given to hiring a mechanic to
perform maintenance in lieu of renewing the contracts.
The estimates the mechanic's salary would begin at
about '14,000 a year. For comparison purposes, overhead
costs of about 28% would have to be added to the base salary.
Recommendation 1112: Determine the feasibility
of hiring a Tirkfat mechanic prior to
renegotiating the maintenance contract in
September 1977.
Vehicle Maintenance Records
29. Logistics Management does not take advantage of the
One of the autoAL:-iie mechanics maintains records on 25X1
vellcles/trailers ant:, 7 gas forklifts. The records
are summarized each mon4I lo shot; such things as odometer
readings, gasoline thP average mileage per
gallon for each vehic: lecord shows all main-
tenance and repDir, on ch vehicle.. None of the
detailed vehicle maintenance records available at
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-00988R000700020001-3
information is is provided to management. Consequently
management does not review such things as vehicle efficiency
.and maintenance costs..
Recommendation #13: Use available main-
reITECT-T?eccirTs?TO" monitor efficiency of
vehicle. operations.
Value of Property
30. The value of property recorded in the Inventoii
Control System exceeded by $116,400 the value recorded by
the Office of Finance. The difference has remained sub-
stantially unchanged since October 1975. Supply Division
concluded that the difference occurred when the entries
were made to incorporate the stock value at
into the Inventory Control System. Supply Management
has been researching the difference.
25X1
Recommendation #14: Furnish the Office of
'Vinance with thj?information to bring the
accounts into agreement.
Cash Count Procedures
31. The cash counting procedures
should be strengthened. The individuals selected to
count cPsh each month count all cash and cash items in
the pos'ession of the finance officer. But they do not
count ino funds held in Small Purchases Branch ($10,000)
and the Office of the Chief ($3,000). The funds are ad-
vanced by the finance officer informally on hand receipts.
The funds should be verified along with the finance officer's
cash.
Branch
Recommendation #15: Ensure that All funds
.',C-Earge-a?to th&?Trliance officer are counted
each month.
Receiving Reports
32. The Offiee of Finance/Audit & Certification
Division (A&C) ceentinusd to experience problems with re-
ceiving reports. TH:: reports were received on a more
timly basis tliutt in the past. But AC personnel did
not have a cr0:31 point or contact tc locate missing
reports or to le ,e ,e et:her receiving report problems.
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Also, the Office of Finaace and Office of Logistics had not
resolved which office had the responsibility to contact '
the vendor when circumstances so dictated. Subsequent to
the audit we were inform:3d that as a result of joint meetings
between Office of Finance and Office of Logistics that the
problems have been resolved.
Verification of Aflp.E2ying Officer.
33. Supply Division plans to accept requisitions without
verifying approving officers' signatures. The division found
that it is a time consuming task to verify the approving
officers' signature on each requisition. And the task sel-
dom is productive. As an alternative to present procedures,
the division yould require each component to be responsible
for properly approved requisitions. The effectiveness of
internal control procedures and the validity of signatures
would be tested during regularly scheduled component audits.
The Audit Staff concurs that the proposed plan has merit .25X1
but defers formal concurrence pending further review.
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25X1
42. Protection masks are available in the vicinity
of the apparatus, but they seldom are worn by the operator.
Other employees also work in close proximity to the machine.
Recommendation P23: Determine a safe dis-
tance from?The apparatus to locate employees
other than the operator.
25X1
' CONCLUSION
43. The report contains 23 recommendations on a variety
of subjects. Some relate to matters already being considered
by Management; others relate to matters which may not yet
have received sufficient attention. We believe Supply Division
personnel will give our, recommendations a conscientious
review and take appropriate action.
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25X1
25X1
LOW4ctACS
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Division
Orgaruzation Chart
Office
" of the
Chief
Operations
Sunport
Branch
?
i ? I. f
1*-1
25X1
Technical Rzgulations
Advisory & Procedures
Section Section
1Management
Control
i Section
Supply
_Management
Branch
Data
Control
Branch
Analytical
Section
Data Base
Management
Section
-
Commodity
Team
A
Item
Identification
Section
Numbers in lower left corner indicate personnel assigned at 29 October 1976
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COmmodity
Team
25X1
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stAT
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r?it'r,-,1,-Nr\ ? "I
".:; : ?
13FORjATION TO:
FEWM:
61F3JECT:
Chief, Supply Division, OL
Clief, Supply ;lanae713at P,ranen,..SD
.L Ld)ata .;ase lacAger
Review of Departht of Ar;zy Autcmtated
Loi? tic; 'ianaLenttc
STAT
1 7 FED 1013
1. Attacheat 1 contai,ls a brief ovcrvic.,f of the ArPy's
LoIstical LY te.: .2hd is prcsented here as inferrlation only.
AJ/i..), attende,3 a tour of a locc.1 Ar:ily installa-
L4VA recently and broaat baci: a copy of the tr.ijning manual
for this system.
,
2. 'this syte;:i contains muc% riore canability than we
Th ever eJ bui: it does contain overytnin 1*.a do need.
Ary systco is batc.L1 vice on-line. The soEti.mre.paeca!;e
is ?free and requires aa Li60 or I:otter for har?jware.
are l00%in into a similar Air :Force syste;a wItich is o:1-lihe.
11/4 '
Att.
Distribution:
Orig. - Addressee w/att
1 - C/3.L3 w/att
v1 - 01,/,30/DC:: (Official) Watt
STAT
/ OL/SO/DCn,
pata J;ase 141aaLer
Pi/373 (17 1ebrunry 1973)
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Appendix U
STAT
? i
Approvrkkgraalpfua2400i.07/11
1*.et $ .?
PoRaPrte98"8119EN7y0020001-3
Review of the Automated Leistics :-Ianagement Systems
Activity (\1 \) Al;:-53L123-1 dated :,;arch 1!)77.
1. Tne Co_p:.edity Ce:-Imand Standard System (CCS.)) is an
outz,rowth of a U.S. Ar..ly ateriel i(evelop,,Iont and Aeadiness
Com!land (nAcDi) preyraat to (level?, s::nndarl operatin(7
on standArJ eui ';ent it1 tfia,lard co?puter softre for
wholesale logistics, depot operations, and arsonal/lab operations.
2. CCS 5 is .1-cconized one the largest automatic
data processini business and accounting systeLis ever developed.
Key features ot tAiS systeia are:
a. Extensivo data 1;:a1ntnance and retrieval
b. Standard data ?le-tents
c. CCSS Co;:lputer/Counication Center
(Auto,lin Intera:ac)
d. Standard rdanagcc,ent process
3. The key functions of this Army system and the most
important features are as follows':
a. Provisioning:
1. Auto.aatic )LSC screening for stock
numbers.
2. Esterisive editing of input data
3. Capability to retrieve any data stored
4. Autoc.tatic generation of repair parts and
special tools list
S. AutAatic fleneration of data for establishing
an item in the .tional Steck .;umber flaster
Data ,ecod (iiSA,IAR)
Cataloging:
1
1. Automated record entry to the 24SN:!DR
2. Zxtensive au:Oer identiCication caability
3. Extensive interchaal;caule aad substitutaole
item file updates
4. :Taster Data accord CIX1) generated ArLly
Master Data fillo (A. ::)F) changes
S. Auto:lated deletion system
?
C. Supply iianagement:
1.
2..
Activator Li oreclude oot-o2-sto6; situation
Pre-requirec.lonts determination and execution
system up-date
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$
!..."1"--,r1
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1.1'41 it aim rho
0001-3
3. Computation of requirement levels and
execution
4. L%!f,7!n-.It: Utilization 1),rogram
(-0)UP) autoclation
5., Autoatic ;uquiroments Computation Systoa
Initial Provisioning (ARC31P)
6, 1)017) 1.)unt ztro.tificatioa
7. Pric rcoputation
8. Administrative aad procurement leadtime.
rec(Jputation
9. Inventory stratification
d. Procurement and, Production:
1. Autoated funding
2. Autoiaated Procurement Work Directives (PWD)
3. Ageing and stain;
4. Autot::ated delivery orders
S. Record of all,contractual data in ALSCAP
Master File
6. Semi-A.c,tomated .purnase orders and delivery
-..orders
7. Procurcont .stlzus inquiries
8. aork Urderingad Reporting Collalunications
Syste.0 (,:ORCS)
? 9. Autoaated i;h1ders List (ABL)
10. Breakout update
Stock Control:
,
I. Precise requisition control
2. Systef,is decisions-reuisition processing
. 3. ?bacorder establishment
4. sackorr relcose
S. reporting
6. Full MILliZIP processing
7. Automated surv:Iillaucc of manual action
8. Invuntory rocqaciliation
9. Station excess
10. Transportation management data
f. aintenance:
1. Maintenance programs ?
2. flaintenance -017.orarl asset reporting
3. Overaaul cunsu:aption data
4. Maintenanc3 ...)vdavi. factor reporting syste2
S. Parts explo-sion
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-1100i-9-48.kRi.:06304Y1 -3
'6. Depot Maintenance Parts Requirenents
List (L)
74 Arw.y aintonance Management Data Exchange
(AMI=)
Financial anagerilont:.
1. Stock fuaa
4. aaeral i7.r ainteaance
3. .:up,.)lyirrocent/FinsIncial integration
4. FILlj rica
S. Prosra:-.! ful,d control
6. Custoer biiii
7. Plaaaciai ry,)orting
Ii. Depot f.Aandard System (SPEEDEX):
1. Shipent.plannin
2. Transportation movenent and route planning
3. Auto:ated !Iroparation of GBL
4. Automated trLnsportatioa uanagement reporting
J. ,fiateriel receipt .control
6. Depot stock locator system
7. Physical irivntory of stocks
8. Inspection schedules of ammunition
9. Quality inforation syten
10. Auto;-.:ated,wofUoad
11. Autoated .update of 1-,:aintenance data bank
12. Automated jlaintenance shop schduling
13. Auto.f,tated parts forecasting for maintenance
14. Expc.:nse appro,p:Aation manage!Aent
15. Work measurement
16. etc
4. It is obvi6a3 many of these features in the Army system
are sLailar to those LI our system, except under different nalY;s.
The in selling point of the :\17.:y syste:11 is tne total intera-
tion of LQ0.2-;tics/iinance functions, elininatin-; the need for
numerous 'stand alone syst61;is such as we have today.
? ' , `'' ?? .1 ?
rtv,1;ii
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DATA-FLO
January/February 1978
Bimonthly Newsletter of Mohawk Data Sciences Corp..1
Series 21 Grows Again
For the second time in less than a
year, Mohawk Data Sciences
announced a major peripheral
expansion to its Series 21* line of
intelligent systems. The new products
include desktop magnetic tape drives,
a ten megabyte disk drive and a
keyboard rest for added operator
comfort during long keying
operations. Previous enhancements
included three line printers ? 90 to
600 lines per minute ? and a
compatible channel for connecting
Series 21 directly to larger MDS* data
entry/communications systems.
Introduced in January, 1977 as the
first low cost, easy to use distributed
processing system, Series 21 has
subsequently gained worldwide
acceptance. Present users cite
modularity as a principal factor in their
choice of Series 21.
"MDS Series 21 lets you walk before
you run," said one user. "You can
start with basic data capture
applications on System 21/20, and
then when time and workload permit,
you can upgrade the system in-place
to a user-programmable System
21/40. One by one, local programs
can be developed using MOBOL*
(Mohawk Business Oriented
Language). Eventually, most of your
job responsibilities can be autama -ed esentative.
Approvea i-ortKeleasgai665/09fli2 a. CIAgRfirite5-00988R00011462000'43
*Trademarks of Mohawk Data Sciences Corp.
for greater efficiency and less
dependency on mainframe
processing."
Promise Fulfilled
The new enhancement package goes
a long way toward fulfilling the
commitment made at the introduction
of Series 21: "Planned extensions to
the Series will provide increased
processing power for a broader range
of distributed applications. This means
Series 21 users will always be assured
of a long-term growth path within the
same product family, thus protecting
prior investments in systems
programming, documentation and
operator training."
The new tape and disk peripherals are
favorably priced compared to similar
competitive devices, and they have
been engineered for a high degree of
reliability. Since distributed processing
systems are normally widely dispersed,
it makes sense to design them for
minimal service attention.
Desktop Tape
Two, new 25 inch-per-second
magnetic tape drives for Series 21 are
designed to rest on a table or desk.
Their compact design and quiet
operation make them ideally suited to
an office environment, where space
The new drives provide a computer-
compatible medium, in either 9-track
800 bpi or 1600 bpi formats, for
transferring diskette files to central
processing. Both drives accommodate
up to 1200 feet of industry-standard
tape
Magnetic tape on Series 21 may serve
as an input/output device for MDS
data communications and media
utility programs. Tape is also
accessible via MOBOL programming
for customized file manipulation.
Series 21 magnetic tape is an
economical, reusable medium for
long-term file storage, such as
customer names/addresses or part
numbers/descriptions and pricing
information.
10 Megabyte Disk
A new, mass storage disk drive is
available for System 21/40 ? the
user-programmable version of Series
21. This highly-reliable drive
incorporates a non-removable disk
pack having an on-line storage
capacity of 10 million characters.
Disk on Series 21 is accessible for
data communications, media utilities
and MOBOL programs. For example,
user-written programs can access disk
files, with the information being
displayed on the video screen for
operator reference or modification of
stored data.
The 10 mb disk is offered in two
configurations: either as a
freestanding drive, housed in its own
cabinet (similar to the 2.5 mb disk
shown above); or the drive can be
integrated into the Series 21
Controller Console.
Keyboard Rest
Keyboard Rest is a convenience
accessory for Series 21 Operator
Stations. It extends the front of the
keyboard, providing a place for the
operator to rest his/her wrist during
keying. This low-cost option is
recommended for large-volume keying
operations, where fatigue could
411111
adversely affect production.
For further information on these and
other Series 21 features, contact your
Approved For Release 2005/07/12 : CIA-RDP85-00988R000700020001-3
processing objectives. For example,
r Decentralization: Boon To Management some businesses find that an
intelligent key/disk system, with its
pre-processing capabilities provides
sufficient localization of computing
power. Others, particularly smaller
businesses, effectively rely on a locally-
placed RJE or intelligent terminal to
interface with a mainframe for report
processing. D,. however, brings to
any business the added dimension of
customized processing on a local
level, complementing_the high-volume
work being done on a mainframe.
Any enterprise can increase its
managerial efficiency by providing
department heads with a DDP
management tool. The advantages to
be gained go far beyond reduced
paper flow. Benefits such as local data
base management, improved work
scheduling and fewer demands on
central computing also result.
Adapted from SYSTEMS magazine
Current Trend Toward Individualism
In pecember, 1977 the U.S. Census
Bureau announced that the American
population is evidencing a trend
toward individualism. Factors such as
smaller family size, more single-family
dwellings and greater independence of
the elderly were cited in the report.
Similarly, many businesses have much
of the individualism which
characterizes the rest of society.
Starting as small, personally-run
enterprises, they grew into larger
structures joined only by management
or department heads. Individual
managers were charged with the
responsibility of meeting common
corporate objectives within their own
areas of specialization.
Reliance On Specialists Reversed
With increased specialization and
diversification, data processing too
developed its own specialists. Other
departments had to rely on the
combined skills of d.p. professionals
for automation of their particular
operation. This was understandable,
because the high price tag of
mainframe computers made it
essential to spread the cost over many
users. Economies of scale
necessitated centralization of the
computing function.
The early 1970's saw a reversal of this
trend. Low-cost componentry made
the "personal" computer practical. It
was difficult for individual managers to
experiment with new methods while
locked into a centralized system.
Today's manager now has access to
the computer-aided innovations which
so often herald progress.
DDP Is Child of Decentralization
Although still in its infancy, distributed
data processing (DDP) represents a
major trend toward more accessible,
up-to-date management information.
In recent decades, management has
been hampered by a "paper
explojon",,Epper has been the
traditional vehicle of information.
Finding such information as current
status of jobs in progress, --Oro --------
received of _g_q_c_l_c9n1:91101-TAAyays
meant paging through voluminous
^eports.
in the interest of greater efficiency,
there is a real need to convert paper
flow to information flow. DDP enables
operations by extending computer
intelligence into local offices,
warehouses and factories.
DDP Is Management Tool
DDP may take various forms. There is
no single way to satisfy all distributed
Series 21 Highlights
Check the following features of Series
21:
0 Building Block Architecture
Start with only what you need, and
grow as you go to more complex
applications.
O Turnkey System
Formatted Data Entry Program
(FDEP) and media utility routines
give immediate usability.
O User Programming
Mohawk Business Oriented
Langauge (MOBOL) enables
customized processing of source
data with System 21/40.
O Interactive Processing
Enables operator to interface with
stored program for entry/retrieval
of information in an intelligent
environment.
O Local File Storage
Files can be keyed from source
documents or transferred from
central to remote sites to allow
local data base inquiries.
O Utilities
MDS-provided programs allow
data transfers between devices
and edit routines for on-site
printing.
LI Multiple Operator Stations
Up to four operator stations can
O Three Keyboard Styles
User may select data entry, key-
punch or typewriter style key-
boards for minimal operator
training.
D Large Display Screen
15" CRT with variable display
attributes, blinking cursor, upper/
lower case, and 480 or 1920
character display capability.
O Prompting
Displayed messages guide
operator step by step through
complex transactions.
O Operator Statistics
Built-in counters in the FDEP
monitor operator performance
and other production factors.
El Data Communications
BSC and SDLC protocols for
universal network compatibility.
MDS 1200/2300/2400
Interface
Direct channel interface provides
data transfers with existing
networks of MDS 2300 intelligent
terminals or MDS 1200/2400
systems for high speed data
communications compatibility with
a wide range of computer
the automation of rnany --
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MDS Communication Terminals Speed EFT Handling
For Manufacturers Hanover And Chemical Bank
MDS System 2400 facilitates same-day processing of paperless transactions
Manufacturers Hanover and Chemical
Bank, both of New York, are two of a
number of banks that are using
electronic data processing systems to
handle customers' "lock box"
operations. Lock box is a special
service extended to high-volume users
like insurance companies and other
_banking institutions whereby a bank
sets up a collection point (like a post
office box) for receiving transactions
from the customer.
At Manufacturers Hanover, an MDS
System 2400 provides 24-hour data
input functions, mainly for lock box
operations, but with the ability to
service other data transmission
demands that occur. Peter Prestipino,
officer in charge of the Data Entry
Department's Technical Admini-
stration says: "The new equipment is
powerful enough to enable us to
communicate with different computer
systems and also leaves room for us
to add on capabilities such as disks,
card readers and printers. In essence,
the equipment can grow as our
demands for its use grow." According
to assistant vice president Nicholas
Siragusa, there are currently 1500
transactions transmitted daily to lock
box customers.
Chemical Bank provides lock box
services to some 800 active
customers and handles a volume of
,4.0,4 bout two million items. 21 post office
pick-ups per day minimize peak load
pile-ups and assure same-day
handling. Once received, the items are
Because Chemical Bank makes
multiple deposits as late as 11 p.m.,
their lock box service assures a
greater percentage of same-day
deposits than the companies
themselves would be able to during
their own business hours. To expedite
daily updating of accounts receivable
records, Chemical transfers payment
data to magnetic tape at three of its
MDS data communications terminals.
Tapes are then delivered to local
customers, while distant customers
receive their data via telecom-
munication facilities. As part
of its services, the bank receives tape
transmissions from other lock box
locations and pools the data as a
summary of the day's payment
transactions. An MDS communication
terminal is then used to communicate
data directly to the customer's main
computer site.
Another type of operation, Deposit
Concentration, is one aspect of
Manufacturers Hanover's involvement
in Electronic Funds Transfer (EFT).
They operate this system for bank
customers with a large number of
branches and provide the most
efficient method of concentrating
funds from local bank accounts into
one concentration account. A daily
transaction tape is transmitted via an
MDS communications terminal
directly to the customer's central
office.
"This system eliminates mail float as
well as 50% of the paper flow involved
readied for proces4nOrirvo'i= Pgrhieerreasen2IMO .
systems," says Saul Jones, officer in
charge of Customer Service for Lock
Box and Deposit Concentration. "It is
lower in cost and more controllable
than wire transfer systems."
MDS 21/40 Simulates
On-Line Environment
"In Series 21, MDS put the
processing power where it's supposed
to be," said Anthony Barashke
pointing to the 15" video display
screen. Barashke is data processing
manager for Saxton Products, Inc., a
manufacturer of decorative telephones
and electronic products for the CB
and hobbyist markets.
An MDS System 21/40 with 3
operator stations and 3 diskette drives
is installed at Saxton headquarters in
Congers, N.Y.; a 2.5 megabyte disk
drive will eventually be added. A
second 21/40 with 2 stations is at
their distribution center in nearby
Nyack Both systems are user
programmable via MOBOL (Mohawk
Business Oriented Language).
Barashke's staff is presently writing
MOBOL programs to handle Saxton's
order entry and inventory control
applications.
Initially, both systems are
programmed for data entry and
validation under control of a
Formatted Data Entry package
provided by MDS. "The ability to get
our systems up and running right
away, without having to program it
ourselves, was instrumental in our
selection of Series 21", Barashke said.
Source data is presently hand-carried
from the Nyack distribution center for
processing at Saxton headquarters.
Information from two other Saxton
distribution centers ? Rockford, Ill.
liell9s81W-W1508ti-V-0988R000700020001-3
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Great Western Sugar Forms
DDP Network
The Great Western Sugar Company of
Denver, Colorado has implemented
the first distributed data processing
network involving MDS Series 21
systems. Three MDS System 21/40's
link Great Western's corporate
processing center, sugar cane factory
and central headquarters via standard
telephone facilities. Information flow
between company locations has
improved by an order of magnitude,
with one week turnaround shortened
to one day.
Several factors account for the
improvement:
? source data entry,
? pre-editing capability, and
? substitution of data transmission
for postal communications.
Accounting data formerly mailed from
Great Western's headquarters in
Dallas, Texas to their Denver
keypunching center is now captured
at the source. A Dallas operator enters
accounts payable and general ledger
information on Series 21 diskette, and
transmits the files to Denver for same-
day processing on their Burroughs
4700 mainframe. The remote MDS
system is programmed for extensive
data validation such as batch
balancing, check digits, table lookups
and range checks.
Richard Gentry, MIS Director for Great
Western Sugar said: "The ability to
validate data at the source, prior to
mainframe processing, is a
tremendous advantage. Replacement
of 'dumb' data capture devices with
intelligent Series 21 gave us pre-
editing capability for the first time;
there's no way to measure the value
of that!"
Great Western's sugar cane factory in
Louisiana utilizes their System 21/40
to prepare applications involving order
entry, payroll, inventory control and
standard costs budgeting. There too,
extensive use is made of Series 21's
ability to pre-edit each transaction.
Series 21 intelligence has virtually
eliminated error runs on the
mainframe, with little need to return
exception reports to the source for re-
keying.
Each day, completed files are
transmitted to Denver in unattended
mode via Series 21 tape drives at the
two remote sites. During the night, the
processed files are returned
unattended so reports can be
produced the next morning on the
remote Series 21 printers. Through
these daily exchanges, Great
Western's corporate, manufacturing
and processing facilities remain
current and in step with one another.
MDS 21/40 cont.
and Cerritos, Calif. ? is transmitted
from IBM 3741's at the remote
facilities.
Barashke explained that the 3741 has
a small screen which displays only 3
lines of data and has limited operator
prompting capability. "With System
21/40, we can emulate an on-line
system", Barashke said. "This means
we can move terminals out into
operating departments, such as
accounts payable. Personnel there can
learn to use the system simply by
looking at the screen. That also
means less reliance on data entry
specialists who are becoming harder
to find."
Once Saxton people have developed
and tested the needed application
programs in MOBOL, the Nyack
system will be replicated at the other
two distribution centers. The remote
systems will include abbreviated
customer and item files, stored on
disk and available for access by
remote site operators. "This will give
us data editing capability at the
remote locations for the first time",
Barashke said. "Local storage
capability will also ease the demand
on our mainframe".
"It does cost a bit more per month to
replace an essentially 'dumb' device
with a distributed processing system",
he concluded, "but the extra
capabilities such as user
programmability and data formatting
will lead to personnel cost reductions,
better response to customers and
increased efficiency throughout our
organization. That's a worthwhile
investment!"
DATA-FLO
Mohawk Data Sciences Corp.
Marketing Communications Dept.
Palisade Street
Herkimer, N.Y. 13350
[phone]
Data-Flo is a regular publication of-
Mohawk Data Sciences Corp., Parsippany,
N.J. With this newsletter, we aim to keep
Mohawk Data users abreast of the latest
time-saving/money-saving techniques
being employed in EDP shops worldvlide.
We will also supply current information on
the continually evolving MDS product line.
Editorial comments and story
contributions from Data-Flo readers are
welcome. To obtain copies of Data-Flo,
contact Walt Sexton, Editor at the above
address.
Printed in U.S.A. by MIAPPFers?
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