i TOTALQUALITY

MANAGEMENTIm

MASTER PLAN

I

Accession ?or

DTIC TA IRE: Distribution StatemrntaI C uAe C) Approved for Public Release. DistributionUnannounced 13Sjusti$1©ation Unlimited.3Per Lt. Col. Callahan, DLA/Q

Distribution/

Availability CodesAvail and/or

Dist Special

.- -- DEFENSE LOGISTICS AGENCYJANUARY 1989I'

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I A MESSAGE FROM THE DiRECTOR ONTOTAL, QUALITY NKAGEEEfT

II

I Am you read the DLA Total Quality ManagementMaster Plan, I ask each of you to reflect on theapplication of "Quality* in your life style. InI the context of TQM, the definition of life styleincludes --- work style, management style, andleadership style.

Total Quality Management is not the traditionalQuality Assuwance approach with which we are

all familiar. Rather, it embodies a philosophythat says there is a realm of quality in the waywe think, act, conduct our business, and interactwith others.

STotal Quality Management suggests that we mustidentify and review the processes that affectour lives and continuously strive forimprovement. In the biblical sense, it almostsounds religious. In some mays it is. TQMdemands commitment, discipline, and continuousimprovement starting with the top executive of anorganization.

Rest assured, Total Quality Management has myfullest attention and commitment. I expect it tohave yours too. As you become familiar with theTotal Quality Management life style, I trust thatyou will share my enthusiasm and lead DLA alongthe path of Total Quality Management.

I

CHARLES McCAUSLANDLieutenant General, USAFDirector

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JAWAU II

mulsalff M'MAL OAL~ffINAIU&MM wn M

CANJO VA7UALUMVA FA I

PAGN i i

I CO AEIIS

I SECTION

Concepts 1.

TOM Basics 2.

DoD TQE Philosophy 4.

3TQ in DLA 3.

methodology I1.

TQM Structure 13.

Reaponsibilitiea 14.

Core DLA TQE Goals 17.

Develop a Trained Workfoorce 18.

Harmonize Directives 19.

Integrating Existing Initiatives 20.

Sensitize Industry to TQM 21.

Demnstrate Uncompromising 24.Commitmnt to Quality

Enhance DLA'a Recognition and 27.Award System

Develop Feedback And Comwunication 28.Sy temw

Institutionalize TOM Within DLA 29.

Execution 31.

Nileatones 33

Appendices 36.

Glossary Of Terim A.I.

Headquarters' Initiatives B.l.

Field Activity's Initiatives C.l.

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II CONCEPTS

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A CONCEPTS

' ~TQM BASICS

- The Total Quality Management (TQM) concept is:based upon the pioneering work of Dr. W. Edwards

WHAT IS TQE Doming. Dr. Joseph H. Juran. Philip B. Crosby.and others.

TQM IS:

- A systematic process for improvingproducts and services

- A structured, disciplined approach toidentifying and solving problemsI

- A participatory work style, conveyedby management actions and comnitment,which harnesses the creativity and ideasof all employees-

- Long term;

- Supported by Statistical Process Control 3- Practiced by each and every employee.

TQM is NOT:

- A program or fad

- Crisis management I- Conveyed by slogans

- Short term

- Driven by Statistical Process Control

- Assigned to subordinates

STRATEGY Total Quality Management strategy is directed at Iachieving:

CONTINUOUS PROCESS IXPROVENIT 3Continuous improvement, the TQM hallmark, isrealized by focusing on the processes thatcreate products and services.

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U CONCEPTS

IContinuous Improvement in realized by creatingan environment in which all employees areempowered to make Improvements in the processes CONTINUOUSthat create products and services. By focusing ZNPROVNZFfon the processes and listening to thesuggestions of those who work within theprocess, management can bring aboutimprovements.

Successful implementation of TQM requires:

- Disciplined long term organizationalgoals

- Empowering all employees by creating anenriched environment in which to work ENRZCNED

- Instituting an organized training effort EI RONEE5T

- Employing formal, structured processimprovement techniques and practicingteamwork at all levels in all situations

TQM requires consistency of purpose which mustbe oriented towards:

- Process improvement

i Satisfying customers' needs

I KEY ELEMENTS

o REQUIRES COMMITMENT BY TOP MANAGEMENT

o CREATES AN ENVIRONMENT FOR CONTINUOUSI PROVEMENT

o a SATISFIES CUSTOMER NEEDS

o FOCUSES ON TEAM WORK

o INVOLVES EVERY INDIVIDUAL

o RECOGNIZES THE IMPORTANCE OF PEOPLE

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CONrCSPTSI

DoD TQM PHILOSOPHY ITQM is a DoD initiative for continuouslyimproving performance at every level and area ofDoD responsibility. Improvement is directed atsatisfying broad quality, productivity, cost andschedule goals, and at modifying management

TQN IN DOD techniques. TQM brings together existingimprovement efforts and specialized technicalskills under a disciplined structure focused onimproving all DoD procemes. It demandscommitment and discipline. It involves everyone.Increasing user satisfaction in the overridingTotal Quality Management objective.

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XKrY ILEN'TS

o DoD INITIATIVE

o DISCIPLINED MANAGEMENT PROCESS Io CONTINUOUS PROCESS IMPROVEMENT

o EVERYONE INVOLVED

o QUALITY PRODUCTS AND SERVICES

o REDUCED COSTS

o SATISFY CUSTOMERS' NEEDS I

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I CONCEPTS

TQM IN THE DEFENSE LOGISTICS AGENCY

The Defense Logistics Agency fully supportsDoD's TQM initiatives for continuous improvement NOT Aat every level. The DLA TQN Master Plan serves SLOGANas the foundation for the implementation of TQM FAD ORwithin the Agency. BUZZ WORD

TQM is not just another program, fad, slogan, or*Buzz Word'. It in a philosophy which will berooted as a way of life within DLA. Adopting

this philosophy will require a cultural changein the way we think and do business.

DLA stands to realize major gains from theimplementation of TQM throughout the Agency.As a Quality Buyer, a substantial portion ofthese gains will be found in the products andservices we acquire from industry.

We will work towards ensuring that our suppliersembrace the principles of TQM. Our Outreachprogram will be oriented to encourage industryto adopt TQM. and to guide industry by examplein furthering TQM principles, practices, andphilosophy. DLA will be universally recognizedas a *World Class' logistics support activity.

We do not intend to abandon the many productiveand innovative improvement programs already INTEGRATESI!developed and working throughout the Agency. On EXISTINGthe contrary, on-going programs will be enriched INITIATIVESthrough renewed emphasis under the TQM umbrella.

The TQM Master Plan and the DLA Strategic Plancomplement each other. The principles of TQMphilosophy are embodied within the strategicplanning process and the plan itself.

DLA productivity improvement initiativespursuant to Executive Order Numbers 12552 and12637 will enjoy renewed focus under the TQMumbrella. Some other initiatives under TQMinclude: Competition for Performance,Statistical Process Control (SPC), automated

data processing modernization programs, SuccessSharing, the Model Installation Program, and theManagement Improvement Program.

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CONCEPTSII

This plan recognizes the importance of'4centralizing TQM planning and execution. Itis purposely broad so as not to stymie Primary I

DECE9NTRALIZED Level Field Activity (PLFA) innovation andinitiative. It is recognized that the major TQMbenefits will be accrued at, and by, DLA

Isubordinate activities.

KEY ELEMENTS

o TOP LEVEL COMMITMENT Io A CULTURE. NOT A PROGRAM. FAD, SLOGAN.

OR 'BUZZ WORD'

o ENCOMPASSES ALL PROCESS IMPROVEMENT

INITIATIVES

IThe following TQM fundamentals form the promiseupon which the DLA TQM Master Plan is built.

I

EVERYONE HAS different tanks performed daily by members ofA CUSTOMER our very talented workforce. There is at least

one customer for the efforts expended in the Iperformance of every task.

Whether customers are co-workers, bosses,organizations, activities, or Soldiers, Sailors,

Airmen, and Marines, our customers expect, anddeserve, the best we, individually and

collectively, can provide.

TQM embraces this important customer/supplierrelationship by focusing attention on providing Itimely quality products and services in

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CONCEPTS

I everything that we do. Contractors, alsocustomeps, deserve quality, on-tim serviceseg. inspection, payment.

Because of the diversity of the DLA mission, thecustomer/supplier relationship takes on an addeddimension within the Agency's TQM implementationstrategy.

Providing quality products or serviceson-time requires that we know and thoroughly UNDERSTANDunderstand each of our customer's needs. CUSTOMERS'Likewise, customers must understand the NEEDScapabilities of the processes which we use toproduce products or services.

* Both parties in the customer/supplierrelationship mast work together to ensure thatneeds and capabilities are correlated to themaximum extent practicable.

The DLA TQM effort requires a closecustomer/supplier relationship, and theflexibility to achieve continuous improvement.

KEY ELEMENTS

o CUSTOMER ORIENTATION -- THEY DESERVE THEBEST

o KNOWLEDGE OF CUSTOMERS' NEEDS REQUIRED

o CLOSE CUSTOMER/SUPPLIER RELATIONSHIPESSENTIAL

o FLEXIBILITY PARAMOUNTI

1People are our most important resource. Thesuccess of TQM throughout DLA necessitates theactive involvement of each and every member of PEOPLE AREthe DLA family. Everyone is personally INPORTATresponsible for developing an attitude withinthe Agency that encourages constructive change, PAGE 7.

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CONCEPTS I

identifies opportunity, and stimulatesinnovative ideas for continuous improvement.

Management is responsible for creating anenvironment which values all individuals andfosters the trust which allows opencommunication and permits change.

Individual contributions will be actively soughtin our quest to upgrade the quality of the Iproducts and services DLA buys and produces.

Concurrently, management must strive to upgradethe quality of worklife which will alsocontribute to an environment which fosterscontinuous improvement.

Individuals and activities will be appropriatelyRECOGNITION recognized for contributions to process, qualityIS ESSETIAL of work life, and participatory management

improvements.

IKEY ELENENTS

o PEOPLE ARK THE MOST IMPORTANT TQMRESOURCE

o EMPLOYEE RECOGNITION CRITICAL

IA process is a systematic approach toaccomplishing a specific task. Just as everyonehas customers, every task involves processes.

COITINUOUS Focusing on the processes used to createPROCESS products and services is fundamental to TQM.INPROVENEINT

Whatever the task. many people areinvolved with the myriad of processes whichcontribute to DLA mission accomplishment. IEmployee knowledge, analysis, measurement, andimprovement of work processes is key to thesuccess of TQM.

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i CONCEPTS

IIt Is a basic precept of TQM that all employeeshave a profound knowledge of each process withwhich they are involved. and that they us* thatknowledge to enhance efficiency and PROFOUNDeffectiveness. Positive improvement is primarily KNOWLEDGEgenerated from the ideas of those whoparticipate in processes.

Only after every aspect of each process ismastered, can analysis. measurement, andImprovement efforts be effected which integrateTQM into the DLA business modus operandi.

Process analysis is a critical component of theDLA TQM effort. Many proven managementtechniques and analytical tools are availableto assiut in proces8 analyses.

i Through profound knowledge and appropriate

statistical tools, potential improvements can beidentified, beginning with the areas offering PROCESSthe largest return on investment. It is ANALYSISimperative that critical control points beisolated in processes where opportunities for

* improvement exist.

IKEY ELEMENTS

o PERFORMANCE INVOLVES PROCESSES

PROFOUND KNOWLEDGE OF PROCESSES NEEDED

I MANAGEMENT TECHNIQUES AND ANALYTICALTOOLS ARE KEYS TO PROCESS IMPROVEMENTI

* Process improvement necessitates application ofdisciplined systems. By applying problemsolving techniques, systemic weaknesses and PAGE 9.I

CONCEPTS I

Ipotential solutions can be identified, and the

DZSCIPLIEND Impact of alternative solutions determined.SYSTEMS Statistical Process Control and other graphic I

methods can help in determining if processes arewithin acceptable tolerances.

Special Process Action Review Committees I(SPARCs) (further addressed in the next

TEAM section under methodology) will be formed toCONCEPT assess processes requiring & multi-talented

and/or multi-functional team effort. SPARCmembers should be trained in problem solvingtechniques and statistical analysis methods to Ienhance their effectiveness.

SPARC focus will be on process improvement --

the cornerstone of TQM.

IMeasurement data will be used to determine ifprocess analysis and improvement techniques are

NEASURENEIT successful. If changes to processes areineffective, new or revised process changes willbe incorporated in the process improvementcycle.

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KEY ELENENS

o DISCIPLINED IMPROVEMENT SYSTEM VITAL

o TEAM1XORK IS FOUNDATION TO SUCCESS

o PROCESS CHANGE MEASUREMENT IS CRITICAL I

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II NITNODOLOGY

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IMrTRODOLOGY I

Cultivating Total Quality Management as a wmay oflife for DLA will require development of a TQM

NOr TO structure, identification of responsibilitiesand establishment of goals. It will alsorequire follow-up by all levels of manageent totrack implementation and progress. 3The DLA TQM Master Plan contains broad goalsand objectives which provide a framework forTotal Quality Management in DLA. These broad Igoals and objectives will be reflected andsupported by specific process improvement goalsdeveloped by the Headquarters DLA PrincipalStaff Elements (PSEs) and the PLFAs.

In DLA, TQM goals will be translated intoImproved products and services through the Irepetitive, continuous use of a processimprovement cycle. The process improvementcycle will consist of: 3

- Identification of work processes

- Identification of relevant measurement 1points

- Identification and prioritization ofopportunities for improvement

- Implementation of the best solutions

- Monitoring effectiveness

SPARCs will be formed to effect processimprovement both within a functional area andwhen it is necessary to address processes thatspan two or more functional areas. The staff Ielement having primary staff responsibility forthe initiative will determine the SPARCmembership and appoint a team leader.

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JfJ BODOLOUY

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XKY ILIUMr m

o DEVELOP TQM STRUCTURE

o D19FIN RKSPOSIBILITIES

o eSTABLISH GOALS

o MANAGEUN FOLLOW UP

ImTQM STRUCTURE

A TQM structure will be established whichpiggybacks on the current organization to the LSADSIES HIPmaxiu extent posaible. The basic TQM structure INOLVENENTfor DLA is diagrwamd below:

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COMMI.TT--E GROUP"rI

II PLFA*) WORKIN°

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The Headquarters DLA TQM structure will conlitof an Kxecutive Steering Comittee (28C), anExecutive Working Group and PSI FunctionalWorking Groups. The USC will include all PSIheads and will be chaired by the ExecutiveDirector, Directorate of Quality Assurance. TheExecutive Working Group membership will includean action officer designated by each PSI and agroup leader appointed by the XSC chairman. PSIworking group membership will be determined by Ueach PS Head.

Each PLFA will establish a Steering Committeewhich reports to the PLFA Commander and i:supported by Working Groups. The compositionof Steering Committees and Working Groups willbe determined by each PLFA.

KEIY £LEIT~fS 3o CONSISTENT WITH DLA ORGANIZATION

o INVOLVES TOP MANAGEMENT

o INCORPORATES WORKING GROUPS

IRKSPONSIBILITIES

The overall DLA TQM effort will be theresponsibility of the DLA ESC which will reportto the Director of the Agency. The DLA ESCwill:I

- Advise the Agency Director

- Establish broad DLA TQM goals

- Provide guidance and direction for TQMimplementation

- Oversee TQM in DLAPAGE 14.

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I #ATHODOLOGY

IThe USC will met at the call of the Chairman,but no lest than quarterly, to discuss,formulate. and refine TQM policy. initiatives,goals and achievements. The USC will besupported by the Executive Working Group whichwill facilitate TQM implementation at theHeadquarters, assist the PLFAs with theirprograms and serve as the Agency focal point forI TQM.

The PSK heads supported by Working Groups willimplement the HQ DLA Master TQM Plan, prepareI PSI TQM plans and provide oversight offunctional area TQM implementation by the INFLSNNITINGPLFA(s). The PSI plans will incorporate the DLA PLANSMater Plan methodology and broad goals, providespecific functional area process improvementgoals, and contain procedures for tracking theimplementation of TQM initiatives.

The PLFAs will prepare TQM implementing planswhich incorporate the methodology and goalsestablished by the Headquarters DLA USC andapplicable functional area goals identified inthe PSI TQM plans. The PLFA plans will alsocontain PLFA unique/specific goals, as may beappropriate, and procedures for trackingprogress.

PSI and PLFA implementing plans will include thefollowing five sections: Concept, Methodology,Goals, Execution, and Appendices. A copy ofeach PSE and PLFA implementation plan will beprovided to the Executive Working Group.

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KYT SODOLOG' I

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o ESC Ioo DLA TQM MASTER PLAN

oo MANAGENT OVENS IG

o P

oo INPLZMET ING PLAN

oo FOCUS ON FUNCTIONAL ARIA

o PLFA

oo IMPLZITING PLAN Ioo INCORPORATE HQ DLA GOALS 3oo SPECIFIC PLFA GOALS

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II CORE DLA TON GOALS

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COBS DLA TQN GOALS I

The TQM Core Goals listed in this section areconsidered necessary for successful integrationof TQM throughout DLA. They do not exhaust allof the actions required nor do they limitadditional goals as we progress to the qualitylife-style engendered within the TQM philosophy.Field activities, particularly, my want toexpand these goals to better encompass themission of their organization.

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DEVELOP A TQM TRAINRD W)RXFORCO

Successful implementation of TQM in DLA requiresa properly trained blue and white collarworkforce, including executives, managers.facilitators and workers alike. TQM requires a

CONNITIMNT level of comitment, involvement and dedicationTO which can only be achieved by a structured,

TRAIEIFG continuous education program. This trainingmust begin at the executive level anddeliberately permeate the entire organization Ithrough an organized downward training cycle.DLA training will consist of five elements:

- Introduction of TQM concepts to iexecutives, managers, supervisors andemployees.

- Training of TQM facilitators who willserve as internal consultants to supportTQM in operation.

- Utilization of publicity/informationservices to keep the program andtraining opportunities in the forefront.

- Identification of subsequent,increasingly detailed continuing TQM Utraining opportunities for supervisors

and managers.

- Establishment of the necessary processes Ito administer the TQM training program.

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i CORE DLA TON GOALS

While training will be a continuous effort, asuccessful, organized approach to TQM requiresthat the highest levels of management receiveproper training an a priority, followed by thedevelopment of facilitators and training ofmiddle management and other personnel requiring CONTIiUOUSspecialized training. Specific milestones will TRAININGbe developed by each PSK and PLFA for theiractivity. Training will focus on both internaland external applications of TQM and relatedmanagement principles.

I KEY ELEMENTS

o SECURE APPROPRIATE TRAINING

o TOP DOW TRAINING

o DEVELOP FACILITATORS

o CONTINUOUS TRAININGI

I HARMONIZE DIRECTIVES

DLA, like any organization, operates underpolicies, guidelines, regulations and laws fromboth internal and external sources. If we areto amoure that Total Quality Managementpermeates our daily activities, and fostersimprovements in our processes, inconsistencies

within existing directives must be corrected.The basic intent is to eliminate barriers tosuccess whether internally or externallyimposed.IAs the Total Quality Management process takeshold in DLA, management must assure commonality INTERNALand consistency of improvement approaches by BARRIERSeliminating contradictory signals. Motivatingfactors must be consistent with the TQMphilosophy. Directives, regulations, PAGE 19.

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CORE DLA TEV GOALS

Instructions and attitudes will be reviewed foraenf liat with the TQM approach and haimonizedaccordingly.

Total Quality Minagement requires review of theprocesses of our work environment. By virtue ofthe mission of DLA, w i Interface with a

IXTAIBUAL multitude of outside agencies, whose directives.BAUtSl IN policies and attitudes directly Impact DLA's I

work environment. UMile often mope difficultto resolve than internal issues. externalbarriers must also be reviewed and properlyassessed In light of TQM. An approach must bedeveloped for removing any external obstacles. I

EXY ILINIIM

o IDENTIFY AND REMOVE INTERNAL OTACLE 3o HARMONIZE TQM EFFORTS AND DIRECTIVES

o IDENTIFY EXTERNAL OBSTACLES

o DEVELOP APPROACH TO REMOVE EXIRNALOBSTACLES

INTEGRATE EXISTING INITIATIVES

Existing initiatives within DLA which encompas the principles of continuous process improvementwill be defined and synchronized under the TOM

SYICNROMIZI umbrella. PS~s or PLFAm responsible for each Iinitiative will carefully review the applicationof each initiative or program and modify orrefine procedures to insure tLat they are in Iconformance with TQM. A discussion of momeongoing initiatives or programs which fall underthe TQM umbrella is provided at appendices B andC. These appendices are not intended to be all

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i COR DLA TQN GOALS

inclusive. Additions or deletions may occur asTQM implementation and training progressesthroughout the Agency.

IKEY ELEMENTS

o DEFINE EXISTING INITIATIVES

o MODIFY OR REFINE

o SYNCHRONIZE UNDER TQM

ISENSITIZE INDUSTRY TO TQM,

AND ENCOURAGE ADOPTION IN BUSINESS STRATEGY

DLA is uniquely suited to accommodate this goalby virtue of our:

- Defense Contract Administration

Services (DCAS) mission (Administrationof over 400.000 prime contracts andapproxiumately 100,000 support contractsat 30,000 contractor facilities)

- Geographic dispersion ( Nine DCALS MILITARYRegions, 39 DCAS Management Areas and 46 INDUSTRIALDCAS Plant Representative Offices) IIffEFAC.

- Colocation with industry holding majorgovernment contracts (AdministrativeContracting Officers and their teams

including Quality Assurancei Representatives)

- Frequent, routine visits with seniorindustry officials who mold businessstrategy and influence businessoperations (DLA leaders routinelyparticipate in contracting andadministration symposia and seminarssponsored by industry associations andindividual companies)

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CORN DLA TQE GOALSI

Theme industrial sector contacts provide anideal forum to further DoD acquisition goals andobjectives while influencing industry businessoperations.

OUT"RACH DLA has a very active industry outreach programoriented to provide information regarding:

- Real and projected contractingopportunities

- Efforts to expand the Defense industrialbase for selected products and productlines

- Initiatives to increase contractingopportunities for targeted business andand socio-economic sectors

This outreach network is an ideal catalyst toemphasize the TQM philosophy, concepts and Iinitiatives in both written and verbalcommunications. The primary focus is toemphasize the advantages inherent byinstitutionalization of a total quality cultureto include:

- Better opportunity to maximize profits

- Enhanced competitiveness in the private.public and international sectors

- Increased cash flow, influenced bycontractor's contributions to quality I

DLA enters into more than 1.400.000 contractsannually for goods and services to support our IArmed Forces. Our solicitations for expressionsof interest and for proposals are an effectiveextension of the DLA outreach program. Theyprovide an excellent means to cause industry toembrace the TQU philosophy.

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I CORE DLA TQE GOALS

Solicitations serve as a catalyst to gain andhold contractors' attention because of DLA MORLD CLASS"World Claus Customer* initiatives which:

- Reward quality producers

- Buy on the basis of best value awarddecision criteria vice lowest cost

- Consider past performance in sourceselection decisions

Many aggressive and innovative initiatives arealready ongoing throughout the Agency. Most are QUALITYoriented at eliminating poor performers and BUYERbuying qual~ty up-front through source selectionstrategies which embrace TQM by identifying DLAas a Quality Buyer'.

KEY ELENTrS

o SENSITIZE INDUSTRY TO TQM

o BUILD TQM INCENTIVES INTO THEPROCUREMET PROCESS

0 o OUTREACH TO INDUSTRY

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CORE DLA TIN GOALS II

DENDNSTRATE AN UNCOMPROMISING CONITMNTTO BUYING AND SUPPLYING TIM HIGNIST

QUALITY PRODUCTS AND SERVICES.

The active and innovative participation of theentire team of DLA multifunctional subordinate

AC'TVZ activities Is the foundation of the DLA TQM UPARTICIPATION effort. Success requires a total quality,

customer satisfaction orientation in everyagency mission area directly supporting eachphase of the Weapons System Life Cycle. Theseinclude the:

- Procurement of products and services. I- Stocking, storing and distribution of

materiel I- Administration of contracts assigned by

the military services and DLA

- Disposal of materiel declared obsoleteor surplus 3

- Support provided by DLA Service Centers

DLA manages over 2.8 million items, approximately60 of the consumable DoD national stocknumbered inventory. To accomplish this vital

DLA Defense readiness responsibility, the DefenseCEINERS Supply Centers execute about 1,400,000 contracts

annually. The processes required to accomplishthis monumental procurement and contracting taskwill enable DLA to:

- Identify and effect corrections to realand suspected bottlenecks to government Icontracting

- Test innovative procedures and practicesto fix contracting process flaws and tostreamline the contracting process

- Reorient buying practices and strategies 3to better assure timely delivery ofquality products

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I CORE DLA 7QH GOALS

I- Help restore public trust and confidence

in the DoD Procurement Process

I - Enhance our credibility with, and thesatisfaction of, customers we support

I In this regard the DLA buying activities havesought, and will continue to pursue, contractingstrategies which:

- Base awards on beat value proposals vicelowest cost

- Disqualify poor performers from INNfOVATZVIcompeting COfTRACTIG

- Recognize and/or reward provenresponsible contractors in the sourceselection process

Approximately two million items valued at about11.5 billion are stored in the DLA depot DLA

system. Our six depots receive and issue more DEPOTSthan 20 million requisitions annually. DLAdepots have demonstrated sensitivity for the

i need to:

- Streamline operations

- Reduce depot operating costs throughincorporation of TQM techniques

- Better &assure depot stock is of thehighest quality and conforms to customerneeds

Improvement programs are being tested,demonstrated, and installed throughout our depotsystem. The Agency will continue to take thelead to develop and initiate programs tocontinuously improve depot management, materieloversight, and operating procedures which will,in turn, enhance customer support worldwide.

The DCASRs will also continue to aggressively CONTRACTsupport this goal through initiatives which: ADMINISTRATION

I - Reduce the potential for nonconformingmateriel entering the DoD logisticspipeline. PAGE 25.

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CORN DLA QN GOALS I

- Encourage contractors to reduce costsassociated with production inefficiencyand poor quality

- Enhance comunications with corporatemanagement

- Evaluate effectiveness of contractoruse of SPC and other analyticaltechniques

- Train the ACO teams in SPC and otheranalytical techniques

- Eliminate poor performers duringpreaward surveys

- Provide current information to buyingand specification control activitiesregarding contractor progress and issues Irelating to technical data, which mayrequire Government action

- Pursue quality producers which will Uallow reduction in contract managementovernight

The Defense Reutilization and MarketingService(DRMS) operates field offices at over 200

DRES locations worldwide to receive, redistribute,and conduct public sales and otherwise dispose ofsurplus and excass property. Annual throughputof five million line items is valued at sevenbillion dollars. DRUB will continue to supportTQM through initiatives to:

- Develop a clear, functional businessstrategy for each mission area

- Improve methods for handling andaccounting for low value condomed items

- Streamline local sales procedures

- Simplify operating regulations andprocedures

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I CORE DLA TeM GOALS

- Upgrade aging and unsightly facilities

- Ensure full compliance withenvironmental requirements

The DLA family will continue to pursueinnovative and enterprising techniques andprograms which further the TQM philosophy anddemonstrate an uncompromising commitmont tobuy and supply the highest quality products and

i services.

iEEy ELEMNTS7

o UNCOMPROMISING COMITMENT TO QUALITY

o aENTIRE DLA FAMILY PARTICIPATES ANDCONTRIBUTES

o CUSTOMER SATISFACTION ORIENTED

0 IMPROVED MATERIEL READINESS SPINOFF

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ENHANCE DLA RECOGNITION AND AWARD SYSTEM

An with other disciplines embodied under theumbrella of TQM, recognition and awards fordeserving individuals and groups will bea ccomplished through existing methods. However, REA"RDrecognition programs will be enhanced to reward ACHIEVERSTQM super achievers and to publicize success

i stories.

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ICORE DLA TOM GOALSI

KEY LENEIWS

o RECOGNIZE TQM ACHIEVEMENTS

o USE EXISTING/ENHANCED RECOGNITION iMETHODS

o SPREAD THE WORD ON SUCCESS STORIES

IDEVELOP FEEDBACK AND COHMNICATION SYSTEM

Feedback and communication system will beCOWRTNICATI developed or enhanced to provide imechanisw for

capturing and sharing benefits resulting fromTQM implementation. Existing functional are&feedback systems which Measure customersatisfaction will be fine-tuned to facilitatethe evaluation of process improvements and TQMimplementation. Communication system includingelectronic mail,e.g.,Idea Net will be used toshare information concerning successful TQMinitiatives throughout DLA. A quarterly TQM

PUBLIC Newsletter will be developed to publicizeRELATIONS TQM at all levels of the Agency's workforce, and

eventually, to DLA customers and contractors.

KEY ffLI XNr'S

o ENHANCE EXISTING FEEDBACK PROGRAMS

o COMMUNICATE AND PUBLICIZE TQM

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I CORE DLA TQN GOALS

I INSTITUTIONALIZE TQM WITHIN DLA

The ultimate goal in to incorporate TQM into theeveryday life of the Agency. The principles,training practices and processes aimed atachieving continuous improvement will become WAYroutine business for DLA. The TQM label will OFeventually fade from use when continuous process LIFEimprovement is ingrained throughout the Agencyas the normal method of operation by allemployees at all levels.

Thin goal will be accomplished through thecommitment and participation of the Agency's topmanagement at the Headquarters and the PLFAs.Top leadership commitment will be amplified by acontinuous education program which will be usedto instill the TQM philosophy at all levels ofthe workforce.

This TQM Master Plan constitutes guidance anddirection regarding implementation of TotalQuality Management throughout the DefenseLogistics Agency.

3 KEY ELEMENTS

o TOP MANAGEMENT COMITMENT

3 o CONTINUOUS EDUCATION

o INGRAINED THROUGHOUT THE AGENCY

I CONTINUOUS PROCESS IMPROVEMENT

P 2II

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PAGE 30.!

Iwm mmminiim mNI m InI

IIXECUTION

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PAGE 3).

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I

EXECUTION IIII

This portion of the plan contains the actions DLAis taking to implement TQM throughout the Agency.Listed on the following pages are the broad orencompassing actions necessary to complete majormilestones for the execution strategy.

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IAPPEND I CIS I

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PAGE 36.

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II APPI MDI K A

III3 GLOSSARY OF TERMS

IIIIIIIIIIII PAGE A.).

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APPENDIX AI

TRIM

Process - A systematic approach to accomplishing a specifictank.

Control Chart - A method of monitoring the output of a processor system, through the sample measurement of a selectedcharacteristics or characteristics and the tracking/analysis ofits performance over time.

Fishbone Chart - A cause and effect diagram for analyzingproblems and the factors that contribute to those problems.

Histogram - A bar graph displaying a frequency distribution of Iactual factors.

Pareto Chart - A bar graph of identified causes shown in Idescending order of magnitude or frequency.

Scatter Diagram - A graph displaying the correlation of twocharacteristics, normally a comparison/relationship.

Process Improvement Cycle - An analytical method for improvingprocesses. The improvement cycle consists of: identificationand definition of the processes by which work is accomplished.identification of relevant measurement points, identificationand prioritization of opportunities for improvement, Iimplementation of the best solutions and monitoring ofeffectiveness.

Productivity - The efficiency with which resources are used to Iproduce a government service or product at special levels ofquality and timeliness.

Special Process Action Review Committee - Action teams which areformed as needed for those TQM initiatives which addressimprovements to processes.

Statistical Process Control - A measurement method used forassessing the performance of processes.

Total Quality Management - A strategy for continuously improvingperformance at every level and in all areas of responsibility.

Quality - The extent to which a product or service meetscustomer requirements and is fit for use.

PAGE A.2. III

I

I APPENDIX A

I ABBREVIATIONS

3 ACO - Administrative Contracting Officer

AI - Artificial Intelligence

CFR - Conceptional Funtional Requirements

DCASR - Defense Contract Administration Services Region

DLA - Defense Logistics Agency

DMINS - Distributed Miniture Computer System

DSC - Defense Supply Center

El - Excellence & Efficiency in an Enriched Environment

ESC - Executive Steering Committee

IDTC - Indefinate Delivery Type Contract

3 PLFA - Primary Level Field Activity

PSE - Principal Staff Element

3 QAR - Quality Assurance Representative

QUEST - Quality Effectiveness Sensing Technique

I SAIMS - Standard Automated Materiel Management System

3 SPARC - Special Process Action Review Committee

SPC - Statistical Process Control

3 SPD -Special Purpose Data

TQM - Total Quality Management

I VE - Value Engineering

AI* PAGE A. 3.

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APPENDIX A II

HQ DLA PRINCIPLE STAFF ELEMENTS

DLA-A - Directorate of Contract Management

DLA-B - Office of Public Affairs

DLA-C - Office of Comptroller

DLA-D - Director, Defense Logistics Agency

DLA-G - Office of General Counsel IDLA-I - Office of Command Security

DLA-J - Office of Contracting Integrity

DLA-K - Office of Civilian Personnel 3DLA-L - Office of Policy and Plans

DLA-M - Office of Military Personnel IDLA-N - Directorate of Stockpile Management

DLA-O - Directorate of Supply Operations

DLA-P - Directorate of Contracting

DLA-Q - Directorate of Quality Assurance

DLA-S - Directorate of Technical and Logistics Services IDLA-U - Office of Small and Disadvantaged Business Utilization

DLA-W - Office of Installation Services and Environmental IProtection

DLA-X - Office of Administration IDLA-Y - Office of Congressional Affairs

DLA-Z - Office of Telecommunications and Information Systems

IPAGE A. 4.I

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II APPENDIX B

III

i HEADUARTERS * INITIATIVES

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II PAGE.n== =,.Bn.rm .I

APPENDIX B I

IThe Defense Logistics Agency has under way a number of verysuccessful process-improvement initiatives. By synchronizingand refining them, DLA hopes to improve the uniformity of their Iapplication, which will contribute to their institutionalizationas key components of the TQM philosophy.

I

ARTIFICIAL INTELLIGENCE (AlD

Expert systems, natural language interfaces, vision and voice msystems, and intelligent robots are being used to reduce routinedecision-making by DLA personnel so that they can concentrate onmore important issues.

Examples of current projects include an Inventory Manager'sAssistant to reduce the manual workload associated with Ireviewing recommended buys from the Standard Automated Materiel

Management System, a Buyer's Assistant to help a buyer inselecting contract clauses for solicitations in bulk fuelprocurements, and a laptop computer application to assistcontract administration personnel in reviewing purchasing systemprocedures.

DLA is also forming an Artificial Intelligence CoordinatingGroup to focus on Al policy issues, identify projects, anddevelop systems and support mechanisms. I

IBUYING BEST VALUE

DLA productivity activites have taken the lead to introducevalue (quality), vice price alone, into our pricing process.Buying Best Value initiatives demonstrate DLA's commitment tobe universally recognized as a *World Class* logistics supportactivity.

Under DLA's Competition for Performance program, contractorswith a sterling delivery and quality history are being includedon a Quality Vendor List and thus far have won 28 contracts at a Iprice higher than the lowest offeror's. Similarly, under the

PAGE 0.2.

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I APPENDIX B

Defense Personnel Support Center's "greatest value sourceselection* and 'low cost, technically acceptable' approaches,technical and managerial factors are considered in addition toprice.

DLA is also developing tools for evaluating and quantifying howmuch it costs the government to conduct preaward surveys andsource inspections or to accept late deliveries. In explicitrecognition of the cost of doing business with less than

I stellar performers, such costs will be added to an otherwiseapparent successful low offeror's bid before a contract is let.

I

This document represents the distillation of all concepts andprojects associated with DLA's modernization effort. Itcontains the elements of technology that will support thefunctional changes in the automation process that the agencyexpects to occur in the near and long terms.

DLA's modernization effort recognizes that benefits will dependon systems that are interoperable within DLA, with the services,and with industry and other government agencies. The CFRemploys the "subject area" data base concept and new technicalarchitecture platforms to achieve this interoperability, servethe needs of the business areas and provide the flexibility forI continued modernization.

IIIII PAG B. 3.

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APPEDIX B I

DLA STRATEGIC PLAN

Published in 1985 and revised in 1988, this plan is the resultof a major effort within DLA to rethink its mission, problems,opportunities, goals, objectives, strategies and tasks. Itconsiders the fundamental nature of the environment in which DLAand the defense logistics community will operate in the future.

The plan builds on business area analyses and requirementsdeveloped during DLA's systems modernization program. Focusing Ion logistics information management, it represents a grandstrategy for improving service to the military services throughan improved understanding of customer consumable-item needs,item availability and industrial capabilities. The plan is aliving document in the sense that it has the flexibility toexpand and change as new requirements and tasks develop.

II

FUTURES

In May 1987 all DLA commanders provided their written viewsabout the state of the art of human resources management in DLAand what must be done in the next three to eight years to ensurethat the agency is prepared for personnel management challengesin the 21st century. Top-level managers from each fieldactivity and the headquarters subsequently met and debated theissues; the ensuing report included recommendations which wereendorsed by the agency director, and implementation is ongoing.

In November 1988 a second conference used the same approach to 3consider the development of the work force and managers, thework environment, and the culture of the agency. A report isforthcoming.

II

PAGE 8. 4.I

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I 4APPINDIX B

IINDUSTRIAL ENGINEERING

DLA personnel trained in industrial engineering are developingwork measurement standards that define the optimal method ofcompleting given tasks, forming the basis for determining

I organizational and functional efficiency. The standardsdocumentation is a starting point for the reviews used in TQM togenerate improvement, and the data form a baseline for measuringthat improvement.

I,PAY FOR KNOWLEDGE DEMONSTRATION PROJECT

This Office of Personnel Management-approved project at theDefense Depot Ogden Utah is structured around work teams ratherthan individual positions. Scheduled to begin by the end of FY1989 and last for five years, the project applies novelpublic-sector compensation concepts gleaned from the best in theprivate sector. Major employee development opportunitiesunderline the project, providing the potential for major gainsin employee job satisfaction. More significantly, the projectcalls for fundamental cultural change in the depot managementphilosophy of performance assessment and organizational design.An independent evaluation will provide a basis for recommendingpermanent legislation.

I

PRODUCTI VITY

In December 1988 DLA published Excellence and Efticiency in anEnriched Environment, which describes in detail the agency'sproductivity program. It embodies TQM philosophy, and is acatalyst for long-term improvement in productivity throughoutthe Agency.

DLA's earliest productivity efforts focused on methodsimprovements and capital investments in equipment andautomation, which now are integral to the agency's strategic

PAGE. B. 5.

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APPENDIX 8 I

plan. Subsequently, DLA emphasized people-oriented efforts suchas quality circles and employee suggestion programs. Today, theagency believes that long-term gains require a profound changeto the organizational culture that is grounded in participatorymanagement. Areas of emphasis include:

- Meaningful employee involvement through self-managed Iwork teams with a focus on customers and work processes.

- Quality of work life and program which recognize,reward and evaluate employees and enhance and motivateprofessionalism, productivity and quality andperformance.

- Use of industrial engineering and Statistical ProcessControl (SPC) data and techniques to support continuedimprovement of work processes. I

- Recruiting and training a flexible work force to respondto DLA's highly volatile work load and work processes.

I

QUALITY EFFECTIVENESS SENSING TECHNIQUE (QUEST)

For years the Defense Contract Administration Services has beenhampered by a lack of meaningful data to measure theeffectiveness of its quality assurance function. But in 1986, aStudy Advisory Group developed QUEST, a mathematical model whichprovides a relative measure of QA effectiveness for both Iin-plant representatives and the contractor.

The model rates facilities with respect to their peersnationwide and stratifies peer groups by commodity, in-plantquality requirements and the number of government QA personnelassigned. QUEST helps first-line supervisors and higher-level QAmanagement identify problems with the Contract Quality AssuranceProgram and the contractors.

QUEST was successfully tested in DCASR Chicago and will beexported to the other eight DLA regions during 1989.

IPAGE B. 6.

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3 APPENDIX B

I RECOGNITION AND AWARD SYSTEM

The incentive awards program recognizes outstanding employeeswith cash awards for special acts or services, sustainedsuperior performance, and other on-the-spot accomplishments.The program also rewards employees for creative ideas thatenhance efficiency and effectiveness.

Under TQM, DLA is developing a special awards scale to providebonus funds for TQM-related achievements. A competitivehonorary award for Total Quality Managers is in the planningstage. Employee accomplishments will be publicized in agency and3 commercial publications.

U

I REDUCTION IN PRODUCT NONCONFORMANCE

Thin initiative addresses the large amount of material presentedfor acceptance to the government which does not meet contractspecifications. Originally conceived by DCASR Boston as theIncentive Based Corrective Action program, it called fordedicated involvement in corrective action by both thegovernment and the manufacturer; lack of progress resulted in a

requirement that the contractor provide monetary considerationfor the shortfall.

Eventually, this evolved into GET SPEC, or the Get SpecifiedProduct End Conformance program, which establishes thresholds ofa'ceptable levels of nonconformance as well as goals forreducing it. Under this program, consideration was obtainedonly if the contractor failed to meet the negotiated goals.

The current program includes many elements of GET SPEC as wellas military service initiatives such as the Army's ContractorPerformance Certification Program. This latest evolution haspositive incentives for quality contractors and negativeincentives for those who fail to adhere to standards of quality.Focusing on profits has significantly motivated top-levelcorporate managers.

II PAGE B.7.

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APPENDIX B I

STATISTICAL PROCESS CONTROL (SPC) UThis scientific method of identifying and eliminating problemsis applicable to manufacturing, engineering, purchasing, sales,

service and general administration. Each step of a work processis analyzed and critical junctures pinpointed so that managersand employees can take necessary corrective action to improveoperating efficiency. Tools include pareto charts, fishbonecharts, histograms, scatter diagrams and control charts.

DLA is sensitive to the benefits which can accrue through theeffective application of SPC. Ongoing initiatives aremulti-faceted to continuously enhance overall Agencyeffectiveness, customer support and product quality.

The procurement community has long recognized SPC as aneffective tool to reduce production process variations andimprove product quality. Policy requires that a special clauserequiring SPC be considered for incorporation into DLAcontracts. The clause would require contractors to develop aformal plan to use SPC in their production processes.Additionally, the Defense Industrial Supply Center (DISC) isdeveloping an SPC clause to incorporate into all contracts forfasteners identified by the military services as safetycritical. The intent is two fold: to direct procurements ofsafety critical fasteners to actual manufacturers vicedistributors; and to better ensure that absolute control is maintained over production processes. Consideration will begiven to expanding the mandatory use of SPC to other contractsfor special categories of material purchased by DLA.

Comprehensive training is being provided Quality AssuranceRepresentatives (QARg) to insure they are adequately skilled tooversee contracts which require SPC. A 40-hour training courseis provided, and the 20 instructors (facilitators) on-boardthroughout the Agency have trained over 600 Quality Assurancepersonnel.•

SPC is also being effectively utilized to improve internal DLAoperations by identifying specific functions to which SPC iswell-suited, developing appropriate statistical tools for itsimplementation and establishing automated support systems suchas the Distributed Miniature Computer System (DMINS) for its Uapplication. SPC is also being successfully used to distribute

work load, justify resources, determine need for process andpolicy changes, and to highlight requirements to redirectprograms and training emphasis.

PAGE 8.6.

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I APPSNDIX 8

VALUE ENGINEERING (VE)

This program has traditionally focused on cost reductions andproductivity gains, largely dismissing quality as a "fringe'benefit. TQM recognizes that quality pays.

I DoD's newly revised value engineering directive states, *Theobjective is to simultaneously improve quality, reduce cost, andimprove schedules.' This acknowledges that VE's traditionalapproach, combined with a renewed emphasis on quality, cansignificantly lower life cycle costs. DLA directives arebeing changed to incorporate this significant reorientation toTQM philosophy.

I

I WORK TEAM BUILDING

I Work teams combine all the skills required to support a singleset of customers or products. This concept which applies novelpublic-sector compensation concepts, has increased productivity,quality and worker satisfaction. Team members feel a greatercommitment to the organization, are more conscious ofcustomers'needs and willing to improve the process.

The Depot-wide efforts at DDOU are part of a five yeardemonstration project. However, some benefits of a teamstructure can be realized without changes to current CivilService regulations. This will be examined by DLA functionalexperts in a fashion similar to the earlier Business AreaAnalyses.

The creation of teams requires a cultural change. Differentways of interacting, communicating, making decisions, andsupervising require participatory management styles. Since teammembers will perform several tasks in support of customers,broad skills must be developed.

.II PAGE B.9.

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IAPPENDIX B I

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3 PAGE C.)1.

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APPINDIX C I

Many Primary Level Field Activities have initiated programs thatsupport the concept of Total Quality Management. The synopsesthat follow demonstrate the breadth of approaches and activitiesunder way to enhance the quality of products and servicesprovided to DLA's customers. I

I

CUSTOMER VISITS IDefense Depot Tracy California (DDTC) uses this program toresolve problems more promptly and thug establish a positiverapport with its customers. DDTC is presently addressingprocess improvements related to dedicated truck shipments,multipack containers and identification of unserviceable metalproducts. 3

INVENTORY CONTROL POINT ACADEMY IThe Defense Electronic Supply Center (DESC) is conducting aseries of comprehensive training sessions on the essentialelements of managing an Inventory Control Point (ICP).Mid-level military and civilian managers and supervisors spend96 hours discussing parts control and standardization,requisition processing, technical data and item standardization.purchasing and base contracting, and total quality management.

PI

PAGl C. 2. 3

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I APPENDIX C

IONE STOP SERVICE

DCASR Chicago is organizing its human resources managementfunction around the needs of its various clients: employees,supervisors, external authorities and the public. As a result,

i the "that's not my job - go to the next station" routine sooften associated with a bureaucracy is eliminated. Depending onthe size, diversity, and requirements of each PLFA, this servicecan follow the organizational construct of a management team, anaccount executive system or a general personnel list approach.

PROJECT EXPO

DCASR Cleveland is one of three DLA activities participating inthe Experimental Personnel Office Research Project. Under this3-year Defense Department initiative. Cleveland is delegating

classification authority to line managers, eliminating mandatoryinterviews for merit promotion selections, using letters ofdiscipline instead of formal disciplinary actions, and referringqualified candidates without rating and ranking them.

Managers and supervisors have saved a substantial amount of timethus far in classifying and filling Jobs and in discipliningemployees. Because of their success, the clasaification and

merit promotion initiatives have been authorized for use atother DLA activities. In addition, a simplified performancemanagement program may soon be tested at DCASR Cleveland.

I

I QUALITY OF WORK LIFE

In an attempt to provide an enriched environment for its workforce, the Defense Depot Ogden Utah (DDOU) is improving variousphysical facilities and developing an employee wellness program.

3 PAGE C.3.

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APPENDIX C

For example, DDOU is renovating its lunchrooms and restrooms,adding paved parking close to heavily staffed work stations, andupgrading warehouse lighting. The depot also now offers itspersonnel access to a physical fitness center as well ascholesterol testing and blood pressure testing. The result hasbeen reduced tardiness and absenteeism and a generally lessfrustrated work force making fewer stock selection errors.

II

STATISTICAL PROCESS CONTROL

Three DLA activities - Defense Personnel Support Center (DPSC).Defense General Supply Center (DGSC) and Defense DepotMechanicsburg Pennsylvania (DDMP) - are already makingwidespread use of this tool to improve processes. DPSC is usingSPC to analyze clothing factory processes, ADP systemavailability, and solicitation and contract clauses. DGSC'sinitial application reduced its processing time of PurchaseRequests (DD Form 353) by four days. And DDMP has used SPC toimprove its productivity in medical set assembly by 12.5percent. 3

ISOURCE SELECTION I

Emphasizing best value rather than lowest cost, this innovationpermits the Defense Personnel Support Center (DPSC) to placecontracts with highly qualified, established firms using suchconsiderations as product quality, timely delivery andmanufacturing control processes. While the use of thismethodology will require additional training for contracting andtechnical personnel, benefits should be significant and longterm.

II

PAGE C.4.I

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U APPENDIX C

ISUCCESS SHARE

3 Begun in October 1987 at Defense Depot MechanicsburgPennsylvania (DDMP), this variation of DLA's Success ShareProgram in designed to improve vertical and lateral* communication throughout the depot, thereby encouraging greaterteamwork and employee involvement while reducing operatingcosts.

I

3 TECHNICAL EXCHANGE PROGRAM

DCASR Cleveland met its major buying activities in May 1988 todiscuss face-to-face interoperational problems being experiencedby both. Subject-matter experts focused on problem definition,alternative solutions, and problem resolution. Areas of

emphasis included processing of quality deficiency reports.value engineering proposals, waivers and deviations, engineeringchange proposals and technical data packages. The main benefitswere the establishment of a rapport and a clearer understandingof ways to resolve problems before they escalate to highermanagement levels.

U UNIFORM PROCUREMENT STUDY GROUP

Under a charter from the Under Secretary of the Army, theDefense Personnel Support Center (DPSC) brought togetherindustry's top Clothing and Textile executives to evaluate themethods by which the military services acquire their uniforms.The so-called Stone Commission's report recommended 44improvements that focused on such technical issues as:specification development takes too long, industry comments arenot given due consideration, verifications are not updated toreflect technological advances, and the services do not makesufficient use of commercial item procurements and performance

specifications. DPSC is expected after review to implement manyof the Commission's recommendations, resulting in systemiciin the uniform acquisition process.

PAGE C.5.

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IAPPENDIX CI

C IWORK FORCE MOTIVATION

The Defense Electronics Supply Center began this program in UFebruary 1988 after a brainstorming session with managers andemployees. Several hundred ideas were culled into more than 100projects, some of which are completed and others ongoing. Amongthose that are ongoing are the installation of modular furniturefor 2.500 work stations, selection of an employee as the'Commander for a Day.' a 9250 Pocket Perk award, and invitationsto five employees to attend the commander's staff meeting eachweek.

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IPAGE- C u.6. 3lllll