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Maritime Logistics Community News : Winter 2011
37 NAVY SUPPLY NEWSLETTER WINTER 2011 production is fully automated, thus allowing effort to be focussed on cost- conscious decision making. Overview FHQ will provide ships with annual Naval Stores budgets. Ships and individual departments will have an incentive and available information to use stores in a cost-conscious manner and will be given credit for the return of items to stores (100% for serviceable items and 50% for U/S repairable items). In turn, this should reduce waste and hoarding of stores, and improve the availability of repairable items. MCM will help inform and modify decision making. At a ship level, for example, an MEO may choose to repair items (e.g. by replacing components) where complete assembly costs are excessive. At an aggregated level, MCM should help drive stores demands towards more cost effective and essential items and thus gain more capability value for Navy from item replenishment and repair funding. Reports MCM includes a suite of consumption and supply chain reports available to ships through SLIMS and ashore via NAVALLOW. These reports are intended to be intuitive and include sufficient detail to support decision making. Consumption reports allow ships to understand internal stores costs. For example, the report on the previous page shows how the ship is progressing (i.e. cumulative spend line) against its annual budget. The next report (pie graph) clearly indicates that three internal customers are consuming most of the ship's stores by value, while the third report (grid) provides detail to support further analysis and decision making. The Supply chain report shows the net movement of stores to and from the ship and other ships/organisations (e.g. DNSDC Moorebank). While ships will be primarily concerned with internal consumption and are to continue to store to allowances, the Supply Chain report will help to identify if ships are ordering above allowances or failing to return U/S repairable items. FHQ or FLSEs can also produce these reports through NAVALLOW. Additionally, a report (column graph) can be selected that provides FHQ or FLSEs with a simple comparison of consumption between selected ships. Conclusion MCM empowers ships to easily understand the cost of stores and thus to use them more efficiently. It also provides command and management' to 'provide Command and managementthe scope to analyse usage and review processes that may be causing excessive consumption. MCM will be subject to ongoing review and update in subsequent years. It is intended for units to become fully responsible for their consumption performance. This performance may be linked to personal and unit appraisals. The inclusion of fuel, rations and explosive ordnance is also envisaged in future iterations of MCM. All units are urged to embrace this initiative.