A major focus  of the unit cost reduction objective was to reduce positions as well as  streamline operations and develop a more efficient organization. Customers are systematically  selected while waiting in checkout lines. Personnel Reductions Have Not Hampered Most Commissaries’ Store Operations or Customer Satisfaction

Despite the workforce reductions, store operations and customer service  have been maintained at the same level, and in some cases improved. DeCA has used various measures to eliminate 2,602 full-time positions, or  85 percent of the planned reductions as of December 31, 2002; very few  employees have been separated from the agency. However, because  DeCA’s strategic plan does not include specific goals for achieving a  certain full-time/part-time workforce mix in stores, the planned percentage  of part-time positions varies widely by individual store and region. It accomplished this by eliminating 137 vacant  positions (114 in headquarters and 23 in the regional offices). The remaining 261 efficiency reductions  are planned in fiscal year 2003. 304 positions were eliminated as a result of 15 store closings. In addition, some store directors told us that a greater use  of part-time workers has allowed them to increase their store operating  hours. Customer Satisfaction Survey Methodology Is Reasonable, but Analysis Could Be Improved

Overall, DeCA’s customer satisfaction survey methodology is a  reasonable approach to obtain customer feedback. However, some improvements in the analysis of survey  data could be made to provide more precise and complete customer  information. Furthermore, the current survey does not collect information on the  number of service members who do not shop at a commissary and reasons  why they do not. Recommendations for Executive Action

We recommend that the Under Secretary of Defense (Personnel and  Readiness), in consultation with the Chairman, Commissary Operating  Board, require the Director, Defense Commissary Agency, to    update the strategic plan to include goals that identify the percent of  the store workforce that is expected to be full- and part-time to  achieve further efficiencies from reshaping the workforce;  reassess the management reductions at small stores to ensure managers  can balance their workload and maintain store operations;    adjust the customer survey results on the basis of sales volume and    document the number of survey non-respondents and their reasons for not  completing the questionnaire; and    examine potential methods and analyses to periodically determine how  many and why eligible personnel do not shop at commissaries, to identify  ways to improve service and increase the number of potential customers  using the commissary benefit. We continue to believe  the recommendation is an appropriate one for the Defense Commissary  Agency to implement. To determine the status of DeCA’s personnel reduction plan, we  obtained data from DeCA headquarters and each regional office on the  number of reductions planned by region by store as well as made as of  December 31, 2002.
Why GAO Did This Study

In response to concerns about the impact of proposed cuts in the Defense Commissary Agency's workforce, the House Armed Services Committee placed in its report on the Bob Stump National Defense Authorization Act for Fiscal Year 2003 a requirement that we evaluate the effect of the personnel reductions. Specifically, we assessed (1) the status of personnel reductions and how they have affected store operations and customer service, and (2) whether the agency uses a reliable methodology to measure customer satisfaction with its commissaries.

What GAO Found

The Defense Commissary Agency's commissary operations and customer services have been maintained at the same level, and in some cases improved, despite the recent reductions in workforce. As of December 31, 2002, the agency had completed most of its 3,047 planned personnel reductions in full-time positions. It accomplished this primarily by achieving efficiencies or eliminating vacant positions in the stores. Only 122 employees have been separated and 341 retired as a result of the personnel cutbacks. A major focus of DeCA's personnel reductions, as outlined in its strategic plan, was to reshape the workforce and develop a more efficient organization. We found that commissaries are making greater use of part-time employees because of the reductions. This has allowed some stores to increase their operating hours to better meet customer needs. It has also given store managers more flexibility in meeting workload fluctuations. However, DeCA's strategic plan does not include specific goals for achieving a certain full-time/part-time workforce mix in stores. As a result, the planned percentage of part-time positions varies widely by store. A recent customer satisfaction survey showed that commissary patrons expressed high satisfaction with their overall shopping experience, as well as with such key indicators as time waiting in line and convenient hours. However, the managers of the smaller commissaries reported concerns over balancing workload and maintaining store operations. We found that the Commissary Customer Satisfaction Survey methodology is reasonable. However, some improvements in the analysis of survey data could ensure that the findings are more complete and consistent. Such changes could include adjusting survey results for the volume of sales at individual stores or for the number of shoppers who refuse to fill out the questionnaire. Furthermore, the current survey does not collect information on the number of, and reasons why, potential customers do not shop at their local commissaries.