$ SAVINGS COST BILLION $11.3 AVOIDANCE COST BILLION $17


CURRENT TOTAL


BILLION $28.3


32 34 36


28 30


22 24 26


18 20


10 12 14 16


2 4 6 8


DOLLARS & SENSE


The Army is facing tremendous pressure to meet Soldiers’ needs with reduced manpower, funding, and contractor support. To answer this challenge, the Assistant Secretary of the Army for Acquisition, Logistics, and Technology (ASAALT) is committed to identifying cost savings and avoidance in all areas of Army acquisition. Army AL&T Magazine is tracking this effort.


As of Feb. 2, ASAALT organizations had completed 837 Continuous Performance Improvement (CPI) projects valued at $28.3 billion in efficiencies, through actions directly attributable to the DoD-wide Better Buying Power (BBP) initiatives and Lean Six Sigma (LSS) process improvement projects. The Army had achieved acquisition pro- gram efficiencies totaling $11.3 billion in cost savings ($11 billion attributable to BBP and $317 million to LSS), and $17 billion in cost avoidance ($12.7 billion BBP and $4.3 billion LSS). Some examples follow.


BBP INITIATIVES


 Combining Vehicle Buys to Attain Economies of Scale (Project Management Office Stryker Brigade Combat Team (SBCT), Program Executive Office (PEO) Ground Combat Systems)—The SBCT Project Management Office focused on combining the procurement of two separate orders of Stryker Double-V Hull configuration vehicles with the buy of Stryker nuclear, biological, and chemical reconnaissance vehicles to attain economies of scale. The initiative netted a validated savings of $66 million, which will be used to purchase survivability kits for vehicles in Operation Enduring Freedom.


LSS IMPROVEMENT PROJECTS


 TDY Reduction (Lower Tier Project Office, PEO Missiles and Space)—Excessive temporary duty (TDY) assignments caused lost work opportunities and used excess funding, which reduced the ability to get products to the Soldier quickly. An LSS team reviewed the TDY process. Improving the Travel Standard Operating Proce- dures and formalizing the TDY process will eliminate excessive trips and reduce overall travel costs, for a total cost avoidance of $1.8 million.


 Survival Equipment System Reset (Project Manager Soldier Warrior, PEO Soldier)—The Primary Survival Gear Carrier System (PSGCS) consists of the flight gear worn by an aircrew member. Product Manager Air Warrior established a reset capability to inspect, evaluate, repair, and/or replace components, refurbishing the PSGCS to “as new” condition. A cost savings of $2.82 million was recognized in FY11, with a projected cost savings/avoidance of $5.59 million over the next two years.


For more information on ASAALT efficiencies initiatives, contact Colleen Prasil in ASAALT’s Strategy and Improvement Directorate at colleen.f.prasil.civ@mail.mil.


ASC.ARMY.MIL 117


EFFICIENCIES


BILLIONS


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