STOCK CHURN IN ALLOWANCE LISTS

A NAVSEA FY87 EVALUATION OF COSAL ALLOTMENT SHOWS UP TO $60M CHANGE IN COSAL MAY BE UNNECESSARY. THIS STOCK CHURN IS A PRIME TARGET OF THIS STUDY. EXCESS STOCK CHURN REPRESENTS WASTE IN THE FORM OF REDUCED READINESS AND INEFFECTIVE INVESTMENT. STOCK CHURN WILL NEVER BE COMPLETELY ELIMINATED AS LONG AS THERE IS CHANGE TO THE SYSTEMS SUPPORTED. HOWEVER, AN UNDERSTANDING OF THE CAUSAL FACTORS IN STOCK CHURN CAN LEAD TO THE IDENTIFICATION OF UNNECESSARY CHANGE. ELIMINATION OR MINIMIZATION OF CHURN DERIVING FROM THE UNNECESSARY IS THE PATH TO WASTE REDUCTION. SUCCESS OF THIS PROJECT WOULD BE MANIFESTED BY AN INTEGRATED MANAGMENT SYSTEM DIRECTED TO THE ELIMINATION OF THE CAUSES OF UNNECESSARY CHRUN IN THE COSAL GENERATION AND MAINTENANCE PROCESSES. THE SPECIFIC OUTPUT OF THE PROJECT SUPPORTIVE OF THIS OBJECTIVE WOULD INCLUDE; DECISION CRITERIA, STANDARDS, CONTROLS FOR INPUT DATA, DATA QUALITY PROCEDURES, AND MANAGEMENT CHANGE RECOMMENDATIONS.