COST SAVINGS AND EFFICIENCY MEASURES- DOLLAR FIGURES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87-01146R000200030023-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 28
• Document Creation Date: December 19, 2016
• Document Release Date: July 11, 2005
• Sequence Number: 23
• Publication Date: January 1, 2000
• Content Type: MF

Approved For Release 2006/10/17: CIA-RDP87-01146ROO0200030023-3
?
VIA C/P&PS/OL
P$PS/0L
?
FROM
Acting,Chie , Printing E Photography Division, OL
SUBJECT Cost Savings and Efficiency Measures -
Dollar Figures
REFERENCE Memo for C/P&PD/OL, dated 15 June 1981;
From: AC/P&PD/OL
1. The purpose of this memorandum is to provide
requested dollar saving figures from the beginning of FY-79
to the present relative to the cost saving and efficiency
measures contained in the referent. Additional information
regarding P$PD's planned initiatives is also included.
G
2. Accomplished Dollar Savings:
A. Printing Plant Consolidation - $532,000
has been saved since plant consolidation. Of this
figure $392,000 results from 'manpower savings,
$100,000 from equipment cost ~~s--avings, and $40,000 was
_Fn of 2400 square feet of
saved as a result of the turn
B. Acquisition of Web Press - $86,500 has been
saved since the installation of the web press. This is a
combined labor and materials savings figure.
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savings worth $10,125 has resulted from the installation
of this machine in February of 1980.
a $14,000 savings in manpower cost thus far.
D. ETECS Full Page Composition The full page
composition of selected NFAC publications has allowed
E. Bisynchronous Communications Data Link - No
savings thus far.
F. Camex ProFormer - Recently installed, no
savings thus far.
G. Management Information System - Un determined.
C
H. Press Comments Format Change - This change
in format has resulted in $13,000 in manpower savings,
and $6,000 in materials savings.
I. Videotape Replication - Recently initiated,
no savings thus far.
tC,
& 14, OOCJ
J. DDO Technical Manual Duplication - $5,400,000 has
been saved by converting from a photographic to a xerographic
production process. This figure represents labor and
material savings.
LIW C) 0/C,
3. Total savings from FY-1979 to the present are
$6,061,625.
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4. Projected Dollar Savings (FY-1982):
A. P&PD Reorganization - A reduction of three
positions will permit a first year saving of $84,000.
B. Reduction in Maintenance Cost - Providing
expanded in-house maintenance will result in a $14,500
savings.
C. Census Built Camera - Undetermined
D. Motion Picture Film Processor - It is expected
that an $18,000 savings will result from this procurement.
E. Laser Platemaker - The utilization of a laser
platemaker will effect an $80,000 materials cost avoidance,
and a savings of $56,000 in manpower for a total savings
of $136,000.
F. 50-Inch, Single-Color Press - $28,000 in manpower
will be saved through the use of this press.
G. 40-Inch, Four-Color Press - $28,000 in manpower
will be saved through the use of this press.
H. Full Page Composition of NFAC Publications -
Fullycomposing all of NFAC publications will net a $56,000
manpower savings.
I. Mini-Edit - A $14,000 manpower saving will
result from the use of this system.
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J. Xerox 5700 - Savings undetermined.
K. Project MIDAS - Savings undetermined.
L. Cable Generation Via ETECS - Cable generation
via ETECS will save $28,000 in manpower.
M. Remote Electronic Printing - Savings
N. Consolidated Copier Management - It is expected
that $50,000 in machine rental and maintenance cost will be
avoided in the first year as a result of copier management
consolidation.
5. Total projected savings for FY-1982 are $456,500.
6. If you/ require additional information regarding th.e't.-
memorandum please contact
0
STAT
STAT
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Reduce Printing Cost Through More Efficient Production of Publications
Background:
We recommend the establishment of a Publication Review Panel to ensure
that effective methods, where appropriate, are used and economy in printing is
maintained. In general, the effect of the proposal is to reduce the number of
colors on certain publications, to reduce cost of material by eliminating prestige
papers and cover stocks, and to modify or combine pages to reduce the number of
printing plates required in publications.
Pros:
-- More efficient printing through elimination of unnecessary colors.
-- Cost reduction resulting from fewer printing plates.
-- Elimination of special cover and paper stocks.
-- Improved turnaround for "intelligence" products.
-- Firm policy towards printing economy through establishment of panel.
-- Reduced quality for public relations material.
-- Danger of an overall reduction in quality and appearance of intelli-
gence products where color and presentation are critical; e.g., the
President's Daily Brief, the SALT Monitor Report, and the President's
Report.
Impact/Comments:
In general, the intent of the proposal is not to jeopardize the quality of
the intelligence product. It is, rather, to eliminate some unnecessary niceties
in administrative and public relations support material. Some specific examples
include:
a. Reducing the number of colors in public relations booklets from
nine to four or five. (In 1980 22,000 copies were produced.)
b. Combining the classification statement with title page information
to eliminate individual warning statements for some 2,000 publications.
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c. Reaffirming the standard size for publications as 8" x 10 1/2"
versus the growing trend to 8 1/2" x -11".
d. Periodically reviewing publications to ensure that economy is main-
tained through effective use of color, paper stocks, and use of
typesetting (for data compression) when appropriate.
The impact of all of this will produce positive results in terms of better
printing management for.the entire Agency and more effective utilization of
resources for intelligence support rather than administrative.
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Increase Use of Sea Shipments
Background:
Shipments from Agency depots are made in the least expensive transportation
mode that is commensurate with the required delivery date imposed by the customer,
location and cover of installation, and size. of shipment. Military/commercial
sea channels ar.e.generally the least costly methods of shipment; and, normally,
heavy and bulky shipments are made via these modes, as are containerized ship-
ments consisting of an accumulation of small items for the same destination.
Currently, shipments of materiel Lin excess of 1,000 pounds or 100 cubic feet
require customer justification.
Despite these efforts to hold down transportation costs, many large ship-
ments are made by MAC or commercial air at the insistence of customers. A prime
exam le is the Office of Communications (OC) SKYLIrIK systems
which OC insists cannot go by sea because of long delivery times and need
or rapid upgrade of communications systems. Another example is the occasional
shipment of large volumes of teletype paper to installations that have permitted
stocks to become critically low.
We recommend that existing regulations be changed to require that customers
pay for premium transportation costs for shipments in excess of 1,000 pounds or
100 cubic feet. Because of the budget cycle, this cannot commence until fiscal
Year 1984 in order to permit offices to provide for these costs.
Pros:
-- Cost savings (one-quarter to one-third the cost of air shipments).
Cons:
-- Slowest shipping mode.
-- Risk of unacceptable delays at ports and customs and possibility of
inadequate inland shipment facilities.
-- Requirement for premium protective packaging.
-- Greater susceptibility to damage, loss, and security compromise/
tampering.
-- Infrequency of vessels.
-- Impracticality for relatively small parcels which tend to get
lost/stolen.
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Impact/Commend
Although disadvantages are numerous, they can be more than offset
by the savings resulting in shipping via sea channels. An example is the
cost of shipping a SKYLINK system by sea at approximately $8,000 as opposed
to an air shipment costing $25,000. With approximately 15 SKYLINKS to be
shipped during each of the next two fiscal years, the savings that could be
realized are readily apparent.
Diversion from air to sea will require concurrence and perhaps better
long-range planning on the part of our major customers; i.e., OC, the Office
of SIGINT Operations, and the Office of Technical. Service. Previous efforts
to get customers to plan ahead have not been fruitful. If they were required
to absorb premium transportation costs, however, we would in all probability
see a concerted effort in the area of planning so that extra costs could be
avoided.
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Eliminate Early Morning and Late Afternoon Shuttles
Background:
There are presently four shuttle buses that run between Agency buildings
beginning at 0745 hours and terminating at 1800 hours. Elimination of these
runs would save both salaries and fuel.
Pros:
-- Annual savings of $64,000 in salaries and overtime.
-- Small amount of fuel savings.
-- Less mileage on buses, thereby reducing maintenance and replacement
costs.
-- Elimination of the unofficial use of the shuttles to avoid trans-
portation and parking charges.
Cons:
-- Probable adverse impact on employee morale and efficiency.
- POV mileage claims for transportation to and from early morning
and late afternoon meetings.
Impact/Comments:
The impact on employee morale and efficiency if this proposal were imple-
mented is unknown; however, it would affect employees' flexibility in scheduling
meetings and in attending training sessions at outlying buildings.
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Close Executive Dinin Room
Background:
The Executive Dining Room, located on the seventh floor of the Headquarters
Building, provides luncheon and special reception facilities to Agency SIS
officers. It provides a place where senior level executives can quickly eat
their lunch and share time with their colleagues.
Pros:
Eliminate positions at a salary cost of $62,755.
-- Utilize space for offices or other critical needs.
-- Eliminates a facility where senior executives can have lunch and
securely discuss classified matters.
-- Eliminates a facility to host Brookings, Mid-Career, and other senior
course luncheons and receptions.
-- Eliminates a facility to hold special receptions.
Impact/Comments:
It is felt that senior Agency executives would resist this proposal. Other,
less private, areas such as the cafeterias would have to be used for luncheons
and receptions. There would probably be less informal information exchange
among Agency senior officials.
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Limit New Furniture Issues and Procurement
Background:
Logistics Services Division (LSD) reduced their FY 81 furniture budget
by $398,000. There remains $125,000 in the budget for replacement furniture.
It is recommended that we continue to reduce funding for furniture expenditures
in the coming years.
Pros:
--
Reduce costs.
Better utilization of existing furniture resources.
--
Longer life cycle for furniture.
Cons:
--
Inability to service customer requests for new furniture.
--
Individual components would fund for new furniture requirements.
Impact/Comments:
This proposal will result in substantial savings over the coming years.
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Consolidate Agency Graphics Design Operations
Background:
There are at least nine graphics design facilities located in various
components throughout the Agency. These facilities employ in excess of 33
people. They are used to create and produce briefing and training aids and
graphics input for Agency publications. These facilities are becoming more
heavily involved in computer graphics, which requires large capital investments
for equipment. There has not been a recent study on the consolidation of
graphics facilities; therefore, no specific statistics on potential savings
are available.
Pros:
-- Possible position savings through consolidation.
-- Elimination of duplication of effort in the design and production
of graphics.
-- Better equipment utilization of expensive computer graphics
equipment.
-- Savings of capital investments for duplicate equipment to service
multiple facilities.
-- Floor space savings by consolidating nine facilities into one.
-- Better control over the types and quality of graphics produced for
Agency use.
Cons:
-- Customer throughput requirements would have to be placed in priority
order and serviced accordingly; i.e., less personal service.
-- Separation of physical locations of Agency components would create
initial difficulties in providing instant response to requester;
e.g., NPIC
and OTE at Chamber of Commerce Building.
-- Logistical problems of moving proposed or finished art work between
buildings as well as difficulties in connection with requester/artist
interface.
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Impact/Comments:
The major impact would be the individual components' resistance to
the consolidation effort. Additionally, during an initial phase of consolida-
tion, there would be a disruption of service due to reorganization of physical
space, cross-training of personnel, and the natural reluctance to change.
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Closing the DCI Garage
Backaround:
The DCI garage area contains 16,860 square feet of floor space in the
underground southeast corner of Headquarters Building. There is parking
available for the DCI and senior-level (SIS-5 and above) Agency executives.
There is a private DCI elevator from the garage to the DCI's office. The
garage provides a private entrance for certain foreign and other officials.
Pros :
Utilize the space for computer equipment, UPS facilities, map
library storage, or other critical space needs.
Eliminate a guard post.
Save energy by closing a large outside door.
Cons:
No privacy for DCI and DDO sensitive visitors.
Senior officials lose a "perk" available to many other comparable
Government officials.
Hioh cost of renovation.
Loss of efficient area to evacuate seriously ill employees via
ambulance.
Im act/Comments:
Another method for getting DCI and DDO sensitive visitors into the
building would have to be developed or such meetings would have to be held
at other locations. A number of reco:.J;,ended uses for the space will be
presented to the Space Steering Conanittee at its next meeting. With respect
to sensitive visitors, during the period 1 September 1980 to 31 January 1981,
there was an average of 15 such visits each month. Additionally, an average
of two ambulances per month use the garage.
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Consolidation of Agency Micrographics Facilities
Background:
There are currently seven organizationally independent groups actively
involved in micrographics management or production. Consolidation of these
facilities would permit significant supply, space, equipment, and manpower
savings. A 1977 study estimated annual savings in excess of $244,000.
Pros:
-- Reduce personnel.
-- Reduce floor space requirements.
-- Reduce annual operating cost.
-- Promote better equipment utilization of expensive production
equipment.
-- Eliminate duplication of effort among the components involved.
Cons:
-- 'Less timely production of so:,e micrographics products.
-- Sensitive operations-type material would have to be filmed by
DDA employees.
-- individual components would have less control over their materials
and micrographics production.
- Additional r%anpower requirements to wrap and log material to be
sent to a central facility.
impact/Co-jn_nts:
There has not been an in-depth study of micrographics consolidation since
1977. It is recommended that the proposal again be discussed with the other
Directorates and the Comptroller and their cooperation be solicited to bring
the previous study up to date, at which time recc;-:^endations would be made
by the DDA on consolidation.
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Copier f~anacement Consolidation
Background:
This is an area conducive to broad savings and more efficient management.
Under our present system of budgeting, each component has budgetary and approval
authority for their copy machines. The Printing and Photography Division, OL,
reviews their requests from a technical standpoint as to the suitability of
particular copy machines to do the job as specified by the component. (This
does not mean that they will procure the equipment reco-nmended.) This, in
turn, has led to the procurement of a wide variety of copiers with little or
no centralization of component requirements. While we have been successful
on several fronts, such as demonstrating substantial savings can be achieved
through purchase as opposed to lease of certain machines, establishing and
maintaining a record of every machine and its utilization, and providing a
report to each component, we believe there is still room for savings and more
effective management.
-- Significant reduction in the number of copier/duplicator contracts.
-- Reduction in copier/duplicator rental costs.
-- Some reduction in the number of individual copier/duplicators.
-- Streamlined bill payment procedures.
-- More precise alignment of copying equipment requirements.
-- Reduction in copier supply inventories.
-- Improved maintenance and repair service.
-- Improved liaison between the managing component and user.
-- Perceived loss of control by users.
-- Consolidation of funding would create a larce budget item ',':at
would be subject to 0MB cuts.
Impact/Cements:
OL has assigned a Presidential Intern to study copier consolidation and make
reco-r.erdations for improvements. We believe the results cf this study will be
.ore acce:-table since he has no preconceived ideas or positions on the matter
and his Lira fides are above question. Upon receipt of his study and recom-
~.ar. at ns, we Lelieve agreerent must be obtained from the Comptroller and other
Direct;;ra:e5 to implE.rent the concept of Budget Centralization and Standardization.
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Consolidation of Multiple Office Equipment Procurement
Requirements Through Equipment Standardization
Background-
During the past year, Procurement Division, OL, has reduced the number of
word processing service contracts from 158 to 74 and the number of copier
service contracts from 178 to 88. Further cost reductions are possible through
equipment standardization. It is estimated that standardization would reduce
the annual equipment cost by 10 to 25 percent. Additionally, personnel resources
would be saved because of the reduced number of contracts to administer and manage.
-- Reduced operating cost.
-- Reduced personnel requirements for administering and managing the
equipment contracts.
-- Equipment compatibility.
-- Reduced training requirements for operators.
- Reduced supply problems.
better service response.
-- User acceptance.
-- User requirements for equipment other than that which is available '
as an Agency standard.
1mpaCtLc0 1ents:
Because of the estimated savings associated with equipment standardization,
Procurement Division is continuing with this program to reduce service contracts.
Tmplenentation of the plan will require approval of the Directorates and the
Controller to either centralize applicable budget amounts or provide for their
reprogramming to OL. Also necessary is copier manac-ment authority for P&PD/OL
to establish copier standardization and ODP determination of word processor
standards.
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Capital Expenditures for Printing Plant Automation
Background:
The Office of Logistics Printing and Photography Division (OL/P&PD) has
requested $1.9 million in the FY 83 Program Call for equipment upgrade and
automation. These expenditures are necessary to replace obsolete equipment
and upgrade existing equipment in order to meet customer demands, improve pro-
duction throughput time, and automate existing labor-intensive operations.
Through automation, P&PD, over the past five years, has been able to reduce
its personnel strength by seven positions while at the same time doubling its
production output. The capital investment listed above will allow this stream-
lining effort to continue.
-- Eliminate a minimum of two positions.
-- Improve production throughput time.
-- Reduce annual supply expenditures in excess of $80,000.
-- Reduce manpower requirevents for maintenance on obsolete equipment.
-- Eliminate outside contract for film processing support ($15,000
per year).
-- Large dollar investment in equipment.
Impact/Comments:
P&PD's equipment obsolescence is a direct result of dwindling resources
over the past five budget years. A one-time outlay of this magnitude will
allow P&PD to streamline its operation, reduce personnel, and cut operating
cost while at the same time improving production throughput and meeting cus-
tor..er demands.
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Category nl:
SECOND Program - the automation of the Industrial Security
Approval Record Index. Efficiencies are realized by achieving
increased capabilities not dependent on a manual system.
Category #2
Establish a microfische file index of the Industrial Facility
Record Folders. Would reduce hard copy holdings by 75%, gain
additional work space, and provide greater safety of the
records against contingencies.
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FUTURE EFFICIENCIES WITHOUT ANY ADVERSE EFFECT ON SERVICE
OR IMPROVEMENT OF SERVICE
1. Use civilian guards
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2. Close Center for Study of Intelligence 10 ,~ 4 C 4 ,'j
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3. Collect interest on bank accounts
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4. Use of Government Travel Requests by people under cover C ~(AC4)
5. Eliminate classification review (EO 12065)
6. Eliminate Freedom of Information Act
7. More use of conference calls
8. All-weather tires vice snow tires
9. Establish Regional Support Activity
10. Consolidate all transportation in OL (OSG, OSO, OD&E, etc.)
11. Use office personnel for some ADP programming and maintenance
("do your own")
12. Decentralize recruiting and pay "headhunters" and employee bonuses
13. More up-front planning - reinitiate support annexes
14. Reduce or eliminate most unclassified publications - FBIS, Heads of State, etc.
15. Make customers of printed products outside the Intelligence Community pay
for publications
16. Make FBIS and JPRS self-sustaining
17. Cut down on conferences
18. Contract out secretarial services for unclassified work
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FUTURE EFFICIENCIES THROUGH CENTRALIZATION OR
ELIMINATION OF DUPLICATION
1. Merge
DDO centers
2. Collocation of C-4 and 1DDO center
3. Consolidate micrographics
4. Consolidate copier management
5. Agency-wide equipment standardization
6. Consolidation of graphics
7. Publications review committee
8. Use contract guards and "blue blazers" in Metropolitan Washington Area
Tl/ C(.",/
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FUTURE EFFICIENCIES THROUGH CAPITAL INVESTMENT
1. TEMPEST test equipment
Maximum buy of cryptographic equipment
4. Acceleration of installation of secure voice switches
5. Extension of overseas tours
6. Front-end investment in SKYLINK
7. OC Recapitalization
8. New Building at Headquarters
9. Logistics Integrated Management System (LIMS)
10. New printing and material handling equipment
11. Utility reliability improvements
12. Augmentation of covert action support mechanism
13. Additional classroooms at Chamber of Commerce Building,
14. New automated payroll and information management system
15. Reduction of manual operations through data processing:
LIMS (Logistics Integrated Management System)
ASAPS (Agency Standard Automated Property System)
FARS (Federal Automated Requisitioning System)
STA (Single Transportation Allotment)
16. More diesel vehicles
17. Improved energy efficiency of existing buildings
Headquarters,
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FUTURE EFFICIENCIES WITH ADVERSE EFFECT ON SERVICE
1. Reduce training time
(OC)
2. Reduce training Agency-wide
3. Limit movement of secure or black telephones
4. Reduce cable dissemination file
5. Eliminate handwritten corrections, additions, deletions on cables and
telepouches
6. Reduce paper reports through ODP
7. Eliminate guard services at garage and tunnel
8. Close DCI garage .
9. Close Executive Dining Room
10. Eliminate Media Highlights
11. Greater support from cover agencies
12. Increase sea shipments
13. Eliminate early-morning and afternoon shuttles
14. Eliminate chauffeurs
15. Accept security clearances from other agencies
16. Eliminate pneumatic tube system
17. Combine office space-for OP OS domestically
18. Put Genographics in P&PD
19. Print cables ten lines per inch
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