NAVFAC P-300 Management of Transportation Equipment

COLUMN (4) MAN-HOURS. Enter the total man-hours for each indirect function.
Compute on the basis of 1,728 hours for each full time indirect employee and add hours
required for direct personnel performing indirect/overhead functions.
COLUMN (5) LABOR RATE. Enter labor rate for each entry. To obtain take the
average base pay for each title listed, add fringe benefits and projected cost of living
increase.
COLUMN (6) LABOR COST. Enter total labor dollars for each entry. This entry is
obtained by multiplying Column (4) by Column (5).
COLUMN (7) MATERIAL COST. Enter the estimated cost of material for each
indirect entry.
I. Budget Control. A sound management system requires allocation of a cost
effective level of funding in a budget plan that will require efficient management to
execute within this level of funding. Effective budget control depends on management
receiving timely feedback information that will enable the manager to isolate his problem
areas, make proper decisions, and initiate the necessary corrective action. Such
information must relate performance against the resources plan (budget) and established
standards. The Navy Resources Management System (RMS) as set forth in NAVSO
P3006-1, Financial Management of Resources, provides these reports on a monthly basis
as an output from the activity financial management reporting system. These reports are
as follows:
(1) Performance Statement (NAVCOMPT 2169). This report is the transportation
manager's major tool for control. The report compares actual performance and
expenditure data with the budget plan, and indicates the percent expended to date. It
compares work units achieved to date with the planned work units, and compares actual
unit cost data with standard or budgeted unit cost. This information is provided for each
line item in the budget. The transportation manager can then detect deviations from the
budget plan and initiate the necessary action to determine the cause of the deviation.
Should a further data breakout of specific elements of expenditure be required, the
NAVCOMPT 2168 Operating Budget/Expense Report described in the following
paragraph should be used.
(2) Operating Budget/Expense (NAVCOMPT 2168). This report provides a detail
breakout of the cumulative line item expenditures shown on the NAVCOMPT 2169. This
report provides the manager with data to determine what element of cost is causing the
deviation from the budget plan. Actual man-hour expenditures per mile, for example, can
be computed and compared with the standard used in the budget plan. A similar analysis
can be done for material expenditures.
G-5