Looking for ways to offset significant defense budget reductions, the DOD Comptroller recommended that CIM implementation efforts in the logistics functional area focus on selecting standard, or “migrating,” information systems that could be used departmentwide. Joint Office Created to Improve DOD’s Materiel Management and Depot Maintenance

In November 1991, the PSA for logistics established the Joint Logistics System Center (JLSC) to achieve CIM goals for the materiel management and depot maintenance business areas. Yet, DOD continues to focus on information technology and migration systems. DOD Believes Migration Systems Are Critical to Business Process Improvement

In its Logistics CIM Migration Master Plan, DOD gives two reasons why the selection and implementation of migration systems are critical first steps toward business process improvement. First, they provide needed quick cost recoveries. Under this authority, JLSC is to identify funding that could be eliminated from a budget request for any information system development project that duplicates a project or operational system of another service. Impediments to Further Progress

Three critical impediments are jeopardizing JLSC’s ability to successfully implement its strategy for improving business practices. First, some DOD functional and technical managers have not fully accepted CIM. Second, DOD has not integrated its various CIM efforts, including those of JLSC. Third, program management authority is unclear because of confusing DOD guidance. These latest actions, we believe, are important steps toward resolving cross-functional issues. Recommendations to the Secretary of Defense

To overcome the fundamental weaknesses in the management of the CIM initiative and to further encourage cultural changes needed to support the new DOD business operations, we recommend that the Secretary take the following actions:
Revise the CIM management strategy to ensure that functional managers, particularly the service Chiefs of Staff and DLA Director, actively participate and lead efforts to reengineer DOD’s business processes under the CIM initiative.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) implementation of its Corporate Information Management (CIM) initiative, focusing on: (1) DOD progress in improving the logistics functions and depot maintenance under the initiative; and (2) impediments to further progress in achieving CIM goals.

What GAO Found

GAO found that: (1) CIM has had little effect on improving DOD materiel management and depot maintenance business practices; (2) DOD reengineering efforts have been delayed because the Joint Logistics Systems Center (JLSC) has been focusing on selecting standard logistics information systems that it believes are necessary in the reengineering process; (3) DOD believes that improving migration systems will generate quick cost savings that are needed to offset budget reductions; (4) the mandated 3-year milestone for implementing the migration systems may not allow enough time to ensure that the systems meet the services' and the Defense Logistics Agency's operational requirements; (5) JLSC has selected some migration systems, begun preliminary work on improving business processes, and reduced budget requests for redundant migration systems development projects; (6) impediments to CIM implementation include the reluctance of some DOD managers to accept CIM, DOD failure to integrate its CIM efforts, and confusing DOD guidance on CIM management authority; and (7) DOD has developed a strategic plan for improving business operations and clarifying authority over systems development, and a mechanism to handle cross-functional issues.