Productivity Management in the Defense Supply Agency

Abstract

Since the advent of the Department of Defense in 1949, many changes in the concept of its operations have occurred. The Defense Supply Agency (DSA) is an example. It evolved from the objectives of the National Security Act of 1947. The Department of Defense Reorganization Act of 1958 included a mandate to consolidate any functions or services which would result in more efficient and economical administration. The McCormack Amendment to that Act set the stage for integrated management of common supplies and subsequently the establishment, by the Secretary of Defense, of the DSA in 1961. During the 11 years since its inception, DSA responsibilities have grown and today embrace the three-fold mission of supply support, contract administration, and management of several logistics services in support of the military services, defense agencies, and several civil agencies. The present DSA organization includes the headquarters and 25 major field activities; six supply centers, 11 defense contract administration services regions (DCASRs), four defense depots, and four logistics services centers. DSA operates at some 1,200 government and contractors' locations. In supply operations, where inventories are financed under the revolving fund technique through sales to customers, DSA is similar to a giant wholesaler; for example: * Requirements determination, procurement, storage, and distribution of 1.7 million items of food, clothing, medical, fuel, construction, industrial, general and electronics supplies. * Annual sales of about $2.4 billion. * Operating stock inventories of about $750 million, backed up with $1.5 billion in mobilization reserve and economic retention stocks.