By Carol DePorter and Dr. Paul-Thomas Ferguson (JMC)October 7, 2019
ROCK ISLAND ARSENAL, Ill. - In the ongoing effort to overcome evolving threats, Joint Munitions Command is achieving efficiencies in the ammunition mission, at both the headquarters and installation level, to enhance strategic readiness of Multi-Domain Operations. This involves numerous approaches that collectively make the most of available resources and funding to achieve the right outputs.
The JMC Resource Management Directorate is leading multiple efforts that reduce, avoid or eliminate costs, thus providing more funding to support Joint Warfighter ammunition readiness and safety. These efforts involve closely scrutinizing all requirements -- mission, contracts and support costs -- to prioritize funding in ways best suited to support JMC's end state.
The Army continues to identify ways to challenge existing processes, incorporate best practices, maximize outputs and improve readiness to achieve more with current resources. Accordingly, the Army and Army Materiel Command have instituted program evaluation group resource deep dives to examine the details of expenditures across the Army. These reviews clarify whether resources achieve desired outputs, allowing commands and Army senior leadership to identify achievable efficiencies and transfer saved funds to other priorities.
According to Brooke Crippen, chief, Integration and Policy Division, "JMC participated in the first deep dive reviews with AMC during Fiscal Years 2018 and 2019, proposing efficiencies that would reduce JMC requirements by $200M across the Program Objective Memorandum years of FY 21-25."
The efficiencies identified by JMC align with those of the Secretary of the Army and Chief of Staff of the Army, and include: positioning munitions around the world to facilitate rapid transition to armed conflicts; implementing best business processes across the JMC Organic Industrial Base; maximizing available demilitarization capacity and addressing capability gaps; reshaping the demilitarization footprint and accelerating the movement of obsolete stocks from Korea.
"Efficiencies achieved by JMC and other entities enable the AMC Commander to reassess funding priorities and allow Army senior leadership to repurpose funds to other mission priorities," according to John Campbell, Deputy Chief of Staff for Resource Management.
In FY18, JMC identified and implemented direct labor hour efficiencies, resulting in a 20 percent reduction of direct man-hour standards in FY20 at Army Working Capital Fund sites. "This successful effort drove down the total cost of operations across the enterprise," according to Don Earley, Revolving Funds Division.
These changes led to price reductions for JMC goods and services, giving customers more buying power in FY20 and beyond, aligning with JMC's focus on the total price a customer pays rather than focusing only on the hourly labor rate. JMC monitored progress through monthly tracking to ensure that the command met reduction goals heading into FY20. Moving forward, new teams are working to identify potential savings in indirect costs, to ensure that JMC continues to provide its customers with the best price, value and quality.
Another area JMC continues to review for reductions is operations and maintenance, Army operating costs. JMC established internal ceilings in several OMA areas to ensure support for critical missions while re-purposing funds for additional readiness requirements. OMA operating cost areas which have achieved efficiencies include travel, overtime, supplies, non-tactical vehicles and contract service agreements.
From FY17 to FY19, JMC reduced travel costs by 17.6 percent. Close tracking of overtime resulted in a 21 percent decrease from FY17 to FY18. JMC continues to review overtime usage at headquarters and installations for further potential reduction. JMC achieved more efficient consumption of supply stock as a result of a Lean Six Sigma Green Belt project that consolidated supplies at headquarters. In addition, JMC identified numerous non-tactical vehicles for turn in, with additional cost savings expected in this area. Finally, JMC reduced OMA contract service agreement ceilings by $5.2 million, a 30 percent reduction from FY17 to FY19. Brig. Gen. Michelle Letcher, Commanding General, JMC, continues to review each CSA to ensure costs are reasonable and within ceiling estimates, providing lethality that wins.