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ment of Defense and delegate the specific authority needed by him to carry out effectively his assigned mission.

E. Significant actions taken and under study which will improve the effectiveness of the general management within the Department of Defense are as follows:

1. Charters for most of the major officials in the Office of the Secretary of Defense have been revised to reflect the provisions of the 1958 Reorganization Act and to enable these officials to work effectively as the principal functional staff assistants of the Secretary of defense. The revision of the remaining charters will be completed in the near future.

2. The reorganization of the civilian secretariats of the military departments, to include the reduction from four to three Assistant Secretaries prescribed by the new Reorganization Act, will be completed in early February.

3. Operating methods in the Office of the Secretary of Defense have been reviewed and the reporting requirements of the military departments reduced. Nearly 200 joint Department of Defense committees have been abolished.

4. Directives have been issued to facilitate the transfer of officers between the military services and to establish new review procedures for personnel actions involving three- and four-star officers.

Analysis of civilian employment

1. During the period from January 1, 1958, to January 1, 1959, a net reduction of 81 civilian employees was effected in the Office of the Secretary of Defense. This consisted of a reduction of 69 full-time personnel and 14 WOC's and an increase of 2 part-time personnel. The net reduction of 67 full-time and part-time personnel resulted principally from the completion of the 12-percent reduction which the Secretary of Defense directed during the 12-month period ending June 30, 1958.

2. The number of full-time personnel employed by the organization of the Joint Chiefs of Staff during the calendar year 1958 was increased by 86. This represents an initial increment toward strengthening the organization of the Joint Chiefs of Staff to provide the military assistance required for effective strategic planning and operational direction of the Armed Forces including the new chain of command to the unified and specified commands anticipated under the Department of Defense Reorganization Act of 1958.

3. Other activities for which the Secretary of Defense provides administrative support, increased 30 full-time and 3 part-time personnel. Almost all of this increase was occasioned by the establishment during February 1958 of the Advanced Research Projects. Agency to engage in assigned advanced projects in the field of basic and applied research which pertain to weapons systems and other military requirements essential to the responsibilities of the Department of Defense.

4. In summary, there was a reduction of 67 full-time and part-time civilian employees and an increase of 14 WOC's in the Office of the Secretary of Defense, an increase of 86 full-time employees in JCS and an increase of 33 full-time and part-time employees in other activities, representing a net increase of 52 full-time and part-time employees and a decrease of 14 WOC's for these activities.

DEPARTMENT OF THE AIR FORCE

The following narrative, submitted by the Department of the Air Force, sets forth appreciable changes during calendar year 1958 in manpower authorizations and personnel assignments, that have resulted from organizational actions and other activities:

Air Force wings versus manpower authorizations

The number of wings in the Air Force operational program decreased from 127 to 111 during during the period January 1, 1958, through December 31, 1958. This decrease in major forces is the result of reprograming actions undertaken by the Air Force to meet objectives established for the end of fiscal year 1959.

The net decrease in manpower authorizations during this period (86,710 military and 10,016 civilians) signifies the progress achieved toward establishing a firm manpower program within an ultimate military strength of 850,000 for end of fiscal year 1959. The December 1958 military authorization reflects early action taken to accommodate new or accelerated Air Force activities during the remaining two quarters of the fiscal year. A comparison of manpower authorizations as of the end of calendar year 1957 and calendar year 1958 follows:

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1 Includes laundry and dry cleaning, but excludes seasonal employment. Civilian 01 authorizations will drop to 318,224 by end June 1959 and on board strengths will not exceed 311,640 in accordance with the Presidential request for a 2-percent reduction.

Operational versus supporting forces assigned strengths

The general objective of the Air Force is to utilize a maximum amount of military manpower resources in the operating forces and a minimum in the supporting and training areas. The following table illustrates the ratio of military personnel assigned to the operating forces versus the supporting forces as of January 1, 1958, and November 30, 1958.

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Upon implementation of a single EDCSA system of accounting for personnel in the oversea pipeline, all manpower spaces previously provided for transient personnel were absorbed within the operating

forces, supporting forces, and training forces. This transient accounting concept is responsible for the substantial reduction in transients and patients between January 1, 1958, and November 30, 1958.

The ratio of military personnel assigned to the operating forces continued to increase during this period even though the total Air Force strength is being reduced to meet an end fiscal year 1959 objective of 850,000.

Civilian vacancy review

Air Force policy requires that all vacant positions be reviewed before hiring action is taken. A recent survey by Headquarters USAF of command implementation of this policy showed that approximately 6,800 vacant positions were cancelled as a result of the vacancy review program. The release of these spaces permitted the Air Force to accommodate, within limited civilian manpower resources, such high priority requirements as the accelerated ballistic missile program, and to provide for SAC alert requirements and quick reaction capability for USAFE and PACAF.

Manpower utilization survey

In December 1957, major commands were directed to make a detailed manpower utilization survey in all functional areas at all command echelons. This self-analysis was conducted by selected individuals from within each command. Procedures were developed by the USAF IG and included on-the-spot interviews with employees, a review of work habits and productivity, and research into the need for and use of the products. Specific emphasis was placed on elimination of unnecessary echelons of supervision and nonessential or unproductive manpower. The survey was concluded in March 1958 and reductions from requirements previously computed by the major commands were approximately 35,500 military and direct-hire 01 civilians by the end of fiscal year 1959.

Authorization of airman grades E-8 and E-9

In accordance with Public Law 85-422, May 20, 1958 (Armed Forces salary increase) the Air Force has recently (June 30, 1958) authorized the two new airman supergrades of E-8 and E-9 to subordinate echelons. These new grades will serve to relieve the compression that currently exists at the grade of master sergeant crew chief reports to a master sergeant flight chief who in turn is responsible to a master sergeant line chief. The Air Force is instituting controls on these new grades to insure that they are utilized where needed. Most of these are in critical skills in highly technical areas. It is expected that recognition of the extra responsibility of certain enlisted positions will result in improved morale and prestige of the master sergeants promoted to these grades and increased efficiency in organizational operations.

Development of manpower policy and criteria

Manpower policy and criteria have been developed for most of the 68 major functional areas in the Air Force. These criteria are constantly being reviewed and revised to keep pace with technological advancements of the weapons systems and improved management techniques. Constant surveillance is being maintained over each command in its use of manpower in terms of the criteria.

Reorganization of USAF band program

In October 1957 a revised USAF band program was approved. This new program provided for deactivation of 20 partially manned bands, which resulted in a reduction of 505 manpower spaces from the band program in fiscal year 1958 (19 officers and 486 airmen). Personal equipment functional study

A study of the personal equipment function indicated that consolidation of personal equipment sections at certain Air Force bases would provide better utilization of manpower and equipment. Reports from major commands reflect a reduction of 87 manpower spaces in this function. This study is typical of a number of projects which do not result in large manpower savings. However, it is indicative of the extent of the management effort exerted to identify areas where spaces can be diverted to offset manpower shortages.

Expert and consultant services

In order to simplify the administrative procedures for obta ning authority to procure the services of experts and consultants by contract, AFR 25-4 was rev sed December 1, 1958. Previously this regulation pertained solely to the area of contractual management engineering. The revised regulation will enable the requesting commands to obtain a decision from Headquarters USAF more economically and with greater rapdity inasmuch as the regulation outlines all the information required by Headquarters USAF to process a request to secretarial level for authority to procure contractual services.

Included in the revised regulation for the first time is Air Force policy regarding the use of expert and consultant services and guidance to commanders regarding the procedures and substantiating data required to obtain authority to procure by contract the services of experts and consultants.

Grassroots improvement program (project GRIP)

Project GRIP is a management control system being implemented in all supply depots and air materiel areas under the control of Air Materiel Command. The system is designed to establish controls which will provide facts which can be used to gage the effectiveness of supply operations to highlight problem areas, and to encourage the application of management on a "by exception" basis. This is a continuous project in that it is a system for improving management in the Air Materiel Command depot supply area and therefore will always be subject to revisions as new and improved methods and procedures are developed.

Some of the benefits realized by Air Materiel Command as a result of the GRIP system are as follows:

(1) The manpower requirements portion of the fiscal year 1960 P-432 depot supply operations budget estimates was computed utilizing the established procedure as well as the GRIP method to permit evaluation and study by Headquarters, Air Materiel Command. Based on this evaluation, certain refinements and improved programing techniques will be incorporated AMC-wide, effective with the fiscal year 1960-61 financial plan/budget estimate cycle.

(2) A revised depot-level supply cost and performance report

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is progressing with a service test anticipated to begin January 1, 1959, at Dayton Air Force Depot.

(3) Basic guidance has been provided to field installations in the areas of determining Hi-Valu Supply workloads, the applicable labor standards criteria, and the desired methods improvement actions and priorities. Although most difficult, development also continues in the area of production control. Progress continues in the application of electronic data processing equipment (EDPE) to the GRIP systems.

USAF manpower validation system

The purpose of the project is to design a system which, when applied by commands, will afford a method whereby USAF manpower requirements may be validated. The development of this system which is in its embryo stage will be expressed through the distribution of an appropriate Air Force manual to embrace elements of work measurement, workload analysis, manpower survey, correlation, experience and best judgment. It is planned that pilot testing will take place at five Air Force bases between June to December 1959. Plans further call for Air Force-wide implementation between Janurary and June 1960.

Management engineering study of the USAF manpower system (Project MANPAU)

The

The purpose of this study was to simplify and integrate the methods and procedures involved in the programing, allocation, and utilization evaluation of the USAF manpower resources. The study recommended certain manpower procedures be eliminated, concurrently introducing procedures and methods designed to furnish manpower resource information in a more timely and accurate manner. integrated manpower system will, when implemented, furnish manpower information covering the entire 4-year program period. Operationally, this is a significant change which should result in a more timely and better distribution of limited Air Force manpower resources against command stated manpower requirements.

Movement of major command headquarters

As a result of an economy and efficiency study, it was decided to move Headquarters Military Air Transport Service from Andrews Air Force Base to Scott Air Force Base, and to move Headquarters Air Research and Development Command moving to Andrews Air Force Base from Baltimore, Md. Space at Scott Air Force Base was obtained by consolidating certain Air Force training command activities. These moves were completed at a one-time cost of approximately $3.3 million, with a resultant reduction in manpower space requirements of approximately 800 and a maintenance and operating cost reduction of about $7 million.

Consolidations within MATS

Pacific Division, Headquarters Military Air Transport Service, was discontinued in April 1958. Continental Division Headquarters was moved from Kelly Air Force Base, Tex., to Travis Air Force Base, Calif., in April 1958 and it assumed the responsibilities formerly assigned to Pacific Division. Effective July 1, 1958, Continental and Atlantic Divisions were redesignated Western Transport Air Force and Eastern Transport Air Force, respectively. The above actions

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