TARGET: SAVINGS


WHAT PRICE SAFETY? A controlled burn at Milan AAP, TN, blankets the grass in April 2011, managed by firefighters from the AAP, U.S. Department of Agriculture employees, University of Tennessee administra- tors and others. Fire safety services are one of the areas in which the cost of GOCO operations exceeds that of comparable private-industry facilities, and fire protection is one of the tiger team’s six areas of requirements analysis. (Photo by Jerry Watson)


In the short term, the team is focusing on ways to reduce current costs quickly and easily. Tis includes assessing and rec- ommending opportunities for improving the AAPs’ operations. Te team is inves- tigating the cost drivers and inefficient processes that are contributing to the AAPs’ overhead. Tis immediate effort has identified the facilities’ PWSs as an area for reducing overhead costs while balancing risk. For example, relying on the local community for fire protection will reduce the AAP’s fire protection costs; however, this must be weighed against the increased response time.


Over the long term, the team is focusing on strategic, significant cost reductions. Tis long-range approach involves a more aggressive, possibly unprec- edented review of


the PWSs, with the 152


incorporation of best business practices and regulatory changes, identification of possible changes to legislation and an assessment of the current AAP business model for operations.


Te objective of both approaches is


reduced operating costs for the GOCO AAPs, which will enable them to be more competitive in the marketplace, while incorporating business efficiencies with the potential to reduce the cost of ammu- nition production.


TWO TEAMS, ONE GOAL To leverage the groups’ talents, strengths and resources, the tiger team has lead- ers from both industry and government. One of its subordinate integrated process teams (IPTs) is focused on PWS costs, activities and commercial best practices


for operating the facilities. In addition, a sub-IPT is reviewing the regulations, rules and practices that drive the PWSs and approaches for reducing or elimi- nating their impacts, including possible waivers to regulations. Te two teams share information frequently and con- duct monthly in-process reviews.


To better identify cost savings, the tiger team has broken down the costs into the following six categories of requirements, with examples:


• Maintenance (roads, rail, locomotives, grounds, buildings).


• Security (staffing, electronic surveil- lance, anti-terrorism procedures).


• Fire protection (staffing, readiness drills, reliance on local communities, training, emergency medical service).


Army AL&T Magazine


April–June 2014


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