NAVFAC P-300 Management of Transportation Equipment

4-1.8.5 Inventory Objective (IO) Control. Control of inventory to IO is necessary if
the transportation director is to function within the operating plan and established
standards. Maintenance and operating costs for equipment in excess of the approved
IO places undue strain on the O&M,N budget. Since the approved equipment IO is the
basis for the transportation budget, every effort must be taken to remove equipment
from service within 15 days after replacement equipment is received. Retaining
equipment in excess of IO also adversely affects COMNAVFACENGCOM's position in
justifying the procurement of replacement equipment.
4-1.8.6 Equipment Downtime. Transportation equipment downtime is based on a
24-hour day and a 365-day year. The maximum acceptable standard downtime is
normally 10 percent of the total hours, which equates to 10 percent of the fleet out of
service (OS) for maintenance at any given time. The demand hours based on a
24-hour day, 365-day year, is 8,760 hours per year. Within the 10 percent downtime,
some 3 percent can be expected to be out of service awaiting maintenance (OSM),
another 3 percent out of service being worked on (OSW), and some 4 percent out of
service awaiting parts (OSP). The term "deadline" is often used when referring to
equipment out of service awaiting parts (OSP). The terms "out of service" and
"downtime" have identical meaning. For transportation cost reporting purposes, the
total downtime will be shown. Downtime hours shall begin when the vehicle/equipment
is removed from service and end when the user is notified that the vehicle/equipment is
ready to return to service. An Out of Service Analysis form, such as that illustrated in
Appendix H, Figure H-21, can be used by the maintenance manager on a daily basis to
monitor the status of equipment out of service. Corrective action should be taken when
the analysis indicates planned out of service levels are exceeded.
4-1.8.7 Maintenance Man-Hour Input. Maintenance man-hour input standards listed
in Appendix G are the basic elements used by management in determining O&M,N
funding and staffing requirements for the maintenance of CESE. It is therefore
essential that the Transportation Division Director, through Maintenance Branch Head
and inspectors, control the amount of maintenance man-hours authorized for
accomplishment of SROs. An analysis in the format suggested in Figure 4-1-4 can be
compiled on a monthly basis (by data processing or manually) which will provide the
budgeted/standard maintenance man-hour versus actual expended man-hours to date.
This simple analysis will alert management if the expenditure of maintenance
man-hours is not being controlled within the budget plan. Activities that prepare the
transportation budget in accordance with the guidelines contained in Appendix G will
have the total annual budgeted/standard maintenance man-hours projected for each
cost account already computed. Other activities should follow the guidelines contained
in paragraph 2.c of Appendix G in computing the total annual standard maintenance
man-hours for each cost account. The Operating Budget/Expense Report,
NAVCOMPT Form 2168, or similar tabulated report, will provide the actual direct labor
man-hours expended for each cost account. The percentage of the budgeted or
standard maintenance man-hours direct labor should not exceed 8.3 percent per
month.
4-1-11