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Bureau of Supplies and Accounts to prepare a plan "for the establishment and operation of an integrated supply system" embodying certain specified principles. In compliance with this request, A Study of an Integrated Naval Supply System was submitted by the Chief of BuSandA to CNO in June, 1946.

Following revision and modification, CNO forwarded, in December, 1946, this study under the title of Plan for an Integrated Naval Supply System to SecNav for approval. On 14 February 1947, SecNav approved all recommendations in this plan. The name of the plan and system was changed to The Navy Supply Plan and The Navy Supply System, respectively.

The Navy Supply System is, in effect, the coordination of specialized supply operations and applies "in toto" to items of material having a replenishable nature. It represents the culmination of the progress made in recent years in applying the experiences on supply matters evolved during the war to a standard pattern of supply for the Navy.

One of the principle changes effected by the adoption of the plan is the assignment of responsibility to the Bureau of Supplies and Accounts for the centralized direction and the performance of supply functions. It further ensures and defines those technical functions and authorities of the various Chiefs of Bureaus, and fixes clear-cut responsibilities and authorities for the coordinated performance of supply and technical functions. In addition, it ensures a specialized system of supply for each major type of replenishable material while providing for over-all coordination of the system as a whole.

NAVY SUPPLY FUNCTIONS

The defining of the functions relating to the supply of material and clarifications as to the responsibilities of the bureaus of the Navy Department for the performance of these functions was a major accomplishment of the

plan. The functions were divided into two categoriesTECHNICAL and SUPPLY. The performances of the technical functions are the responsibility of each bureau (including BuSandA) for the types of material which each control. The performance of the supply functions is the responsibility of a single bureau-BuSandA. Figure 21 illustrates the breakdown in responsibility and also shows the changes made in conditions existing during World War II by the Navy Supply Plan.

It will be noted that some of the changes were effected prior to the approval of the plan. This is particularly true in the case of Aviation Supply and noteworthy of the fact that many concepts of the plan were based upon relationships that existed between BuAer, BuS&A, and ASO as a result of the evolution of the Aviation Supply System during World War II.

In the case of some of the functions involved in material logistic support, they cannot be identified as either a strictly technical or a strictly supply function. As an example of the difficulties inherent in the assignment and defining of functions, the determination of requirements involving roughly five phases is used. This function requires technical information and information of a supply nature. The items to be stocked, the initial determination of requirements on new items on which no usage data has been developed, and planned requirements are properly the functions of the technical bureau. The accumulation of usage data, the stock status information, and the application of the planned requirements to stock status and usage data to arrive at the determination of actual requirements are properly a supply function.

SUPPLY PLAN LEVELS OF CONTROL

The Navy Supply Plan provides a supply organization functioning around a system of control at four levels, as shown in figure 22.

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Figure 21.-Comparative functional study of the Navy Supply System.

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Figure 22.-Organizational relationships of the Navy Supply System.

TOP LEVEL

MANAGEMENT

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1. POLICY CONTROL at the Assistant SecNav—CNO level for direction and evaluation of effort. Application of standardized methods and procedures developed from experience is insured by this control, and information on long range operational requirements is furnished here.

2. OPERATIONAL MANAGEMENT CONTROL at the bureau level to insure application of technical aspects and developments to the system and to interpret and implement the policy directives with respect to their specialized application. BuSandA has special functions. at this level as the coordinator of supply operations, as well as the responsibility for the proper performance of all supply functions.

3. INVENTORY CONTROL at the supply-demand control point level established for the several major categories of materials. Here standards of good business are applied in the control of the categories of Navy stocks. The supply-demand control points are agents of the Bureaus and perform both technical and supply functions necessary in the administration of stocks. These control points serve two masters the technical bureaus for the performance of technical functions and the Bureau of Supplies and Accounts for the performance of supply functions.

Stock status and issue information collected from field stocking activities, and that information combined with operational and technical data furnished by the technical bureaus, furnish the basis for material requirements. For the materials assigned to them, these control points have control of cataloging, determination of requirements, procurement, distribution and disposal. The supply-demand control points will be called supply office, for example-Aviation Supply Office.

4. LOCAL CONTROL at the issue point is effected

through the Supply Center Organization. Within each major area of Naval Operations, a Naval Sup

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