ilian Executive Assistants, and Naval Professional Assistants. These tasks re "POLICY CONTROL", "NAVAL COMMAND", "LOGISTICS AD[INISTRATION AND CONTROL", and "BUSINESS ADMINISTRAION" of the NAVAL ESTABLISHMENT.

"POLICY CONTROL" is the task of interpreting, applying and upholdig national policies and interests in the development and use of the NAVAL STABLISHMENT. In addition to providing policy guidance to the Navy as whole, and continuous appraisal of over-all performance, it encompasses the roadest concept of "public relations" which includes many and vital relaonships such as those with the Congress, the President, the Secretary of Deense, public information media, and private concerns.

"NAVAL COMMAND" is the task of commanding the OPERATING 'ORCES and maintaining them in a state of readiness to conduct war; of ɔmmanding the deployment, maneuvers and actions of the OPERATING 'ORCES, both during war or national emergency, and in times of peace when hey are training and preparing themselves for emergencies. It also includes ne promulgation of directives throughout the NAVAL ESTABLISHMENT mbracing matters of naval operations, security, intelligence, discipline, comunications and similar functions of a military character, including their adinistration. It deals broadly with the conduct of all who wear the uniform of ne Navy, and assumes full control of such personnel and their duties when they re serving with the OPERATING FORCES; and is concerned with preerving the customs and traditions of the naval services.

"LOGISTIC ADMINISTRATION AND CONTROL" is the task of cordinating and directing the efforts of the NAVY DEPARTMENT and HORE ESTABLISHMENT in order to assure the development, procureent, production and distribution of materials, facilities and personnel to the ›PERATING FORCES. This task involves two distinct phases:

a. "Consumer Logistics"-that of planning and forecasting the requirements for material and personnel from the standpoint of the consumer (the OPERATING FORCES), and the distribution of such requirements based on known or projected employment of the OPERATING FORCES, and

b. "Producer Logistics"-that of developing and procuring the requirements of the OPERATING FORCES from the standpoint of the producer (NAVY DEPARTMENT exclusive of CNO, and SHORE ESTABLISHMENT), and the provision of services necessary to maintain

them.

'Consumer Logistics" is intimately related to the task of "NAVAL COMAND”, while “Producer Logistics" is intimately related to the task of

"BUSINESS ADMINISTRATION" of the NAVY DEPARTMENT an the SHORE ESTABLISHMENT. The line of demarcation between the "Con sumer” and “Producer" concept of naval logistics cannot be readily fixed be cause of the fact that they are interdependent and represent a continuou "cause and effect" relationship which cannot be fully severed. However, th two functions are divided, from a top management viewpoint, in order to assur the best qualified supervision of each and to free the Chief of Naval Opera tions from the burden of administering the "Producer" aspect of the work o the NAVY DEPARTMENT and the SHORE ESTABLISHMENT.

It has been pointed out in Part I, "Organization for National Security' that the Joint Chiefs of Staff (of which the Chief of Naval Operations is th Navy member) makes broad strategic and logistic plans for national security and assigns logistic responsibilities among the Departments of the Army, Navy and Air Force. This has the effect of setting the level of logistic requirement for the total Navy effort in relation to the efforts of the Army and Air Force.

"BUSINESS ADMINISTRATION" refers to the task of business man agement of the NAVAL ESTABLISHMENT. In addition to the tasks of ad ministering the Navy from the “POLICY”, the “NAVAL COMMAND" and the "LOGISTICS" viewpoints is this further specific task which is imposed or the top management of any well operated organization that of developing and maintaining economy and efficiency in the operation of the NAVAL ESTAB LISHMENT with particular regard to matters of organization, staffing, administrative non-military procedures, the utilization of personnel, materials and facilities, and the budgeting and expenditure of funds.

Distribution of Executive Responsibilities

The first of the four basic tasks, that of "POLICY CONTROL", has beer retained by the Secretary as his prime responsibility, since on him rests final accounting for the results of the work and efforts of the entire NAVAI ESTABLISHMENT. In the formulation and administration of guiding policies, the Secretary draws on the advice and assistance of his executive organization.

The second of the four basic tasks, that of "NAVAL COMMAND", and a portion of the third, that part of "LOGISTICS ADMINISTRATION AND CONTROL" previously referred to as "Consumer Logistics", have been assigned to the Chief of Naval Operations. This official, by reason of his training and experience, is best fitted to discharge these major responsibil ities.

With respect to "Consumer Logistics", General Order No. 247 (Appen dix C) assigns the following functional responsibilities to the Chief of Nava Operations:

Planning and forecasting the needs of the OPERATING FORCES for finished material, trained personnel and supporting services.

Issuing statements of these requirements-in as broad terms as practicable of what is needed, when it is needed and where it is needed-to the bureaus and offices of the NAVY DEPARTMENT and through them, to the SHORE ESTABLISHMENT. This responsibility shall encompass the determination of naval characteristics for material to be procured or developed, and the determination of the training and instruction required to fit naval personnel and commands for service with the OPERATING FORCES.

Reviewing and evaluating the progress of the bureaus and offices and of the SHORE ESTABLISHMENT in fulfilling the above requirements, (two paragraphs immediately above), and issuing such instructions as required to assure compliance therewith.

Collaborating with the Civilian Executive Assistants in expediting fulfillment of these requirements; in evaluating and strengthening the policies and procedures governing the determination of stock levels and replenishment requirements, and the administration of inventory control systems.

The remainder of the third basic task, that part of "LOGISTICS AD[INISTRATION AND CONTROL" previously referred to as "Producer ogistics", and the fourth basic task, that of “BUSINESS ADMINISTRA'ION”, have been assigned among the Civilian Executive Assistants. These fficials, by reason of their training and practical experience in our civilian conomy, are best prepared to discharge these major responsibilities.

With respect to "Producer Logistics", General Order No. 247 (Appendix ') assigns the following functional responsibilities to the Civilian Executive Assistants:

The promulgation of policies and general procedures governing the activities of the NAVY DEPARTMENT and the SHORE ESTABLISHMENT with respect to: the procurement and production of materiel and facilities; the determination of stock levels and replenishment requirements in collaboration with the Chief of Naval Operations, and the administration of inventory control systems; the correlation and programming of research, experimental, test and developmental activities; and the procurement and administration of personnel.

The review and evaluation of the compliance of the bureaus and offices and of the SHORE ESTABLISHMENT with the policies and pro

cedures, (first paragraph immediately above), and the issuance of suc orders as required to assure compliance therewith.

Collaboration with the Chief of Naval Operations in reconciling di ficulties encountered in meeting the requirements of the OPERATIN FORCES due to scarcity of funds, materials, products, facilities or per sonnel.

Representation of the Navy's procurement requirements before othe governmental agencies controlling the availability of products, material and facilities.

It should be pointed out that with respect to "BUSINESS ADMINI STRATION", the responsibilities of the Civilian Executive Assistants ex tend directly over the bureaus and offices of the NAVY DEPARTMENT and through them, to the field activities comprising the SHORE ESTAB LISHMENT. As to the OPERATING FORCES, they collaborate with and assist the Chief of Naval Operations in evaluating and improving "BUSI NESS ADMINISTRATION" therein.

The respective bureaus and offices under the direction of the Naval Technical Assistants constitute the "home office" within the NAVY DE PARTMENT for the activities of the SHORE ESTABLISHMENT as signed to them. These assistants are the executives through whom the NAVY DEPARTMENT exercises supervision and direction over activities of the SHORE ESTABLISHMENT assigned to them. Thus, collectively the Naval Technical Assistants are responsible for providing the logistics support required by the OPERATING FORCES ; and individually, they are responsible for the immediate supervision and direction of all of the work of their respective organizations both within the NAVY DEPARTMENT and the SHORE ESTABLISHMENT; all in accordance with orders and directives of the Secretary of the Navy, or the Civilian Executive Assistants and the Chief of Naval Operations according to their assigned responsibilities.

As pointed out above, the four basic tasks of the executive organization have been distributed among the Secretary, his Civilian Executive and Naval Professional Assistants in accordance with their training and practical experience. Thus, the "public interest" is best served by a form of organization which provides for full participation by both naval and civilian executives according to their normal training, experience and abilities.

The Naval Professional Assistants have full authority over matters inherent in naval administration and command, while the role of the civilian executive is established as that of directing and improving the work of the NAVY DEPARTMENT and the SHORE ESTABLISHMENT in fulfilling their mission of supporting the OPERATING FORCES.