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Show Nov. 13 Hilltop Times 24,1993 Costs must come down McPeak says example, he said, due to better engineering, the flying hour cost of the 7 will be 40 percent less than the by TSgt. Sarah L. Hood Air Force News Service 66 - The Air Force is LOS ANGELES on the prowl for cheaper ways to get the job done and still keep the force ready to fight, said the Air Force chief of staff. "We need to look under every rock for cost savings," said Gen. Merrill A. McPeak. "Reducing total costs not holding cost steady and doing more, but reducing costs is essential to fulfilling our vision of building the world's most respected air and space force." The Air Force has already trimmed much of its fat, but still faces a spiral-in- g budget and set force structure. Consequently, one of the "biggest puzzles" facing senior leaders is where to go to save money, McPeak said. At the Air Force Association Symposium in Los Angeles Oct. 28, McPeak said the Air Force is doing a fairly good job of getting more for its money by improving such areas as productivity, readiness, quality and morale. But it hasn't done as well with cost reduction getting the same for less money. thing In 1946, after four years of war, the budget shortfall was approximately $16 billion. In 1993, after four decades of Cold War, the deficit exceeds $300 billion. That deficit, coupled with the collapse of the Soviet empire, results in a defense budget reaching historic d War II lows, said McPeak. The Air Force budget has dropped some 44 percent since the peak years and people and Air of the have "taken their Force structure Active-duty he .said. ,end hits," down a third and is strength already the combat fighter force is down to about half of what it was five years ago. McPeak reads that as meaning the Air Force can't expect funding to improve; that its budget is definitely "headed further south. "We also can't, in good faith, support more cuts in force structure over post-Worl- mid-1980- s, ,, C-1- C-5- not holding steady and Reducing total costs is essential to doing more, but reducing costs fulfilling our vision of building the world's most respected air and space force. 99 Gen. Merrill A. McPeak Air Force chief of staff . and above those called for in the (Pening the force. "Of course, we must prop bottom-uceed with care when tapping our O&M said. he review," tagon's) "We have already gone down as far (operations and maintenance) account as we can and still do what an Air as a source for cost savings," he said. "We're talking about core tasks Force is asked to do what the president will rely on us to do if called on flying airplanes, monitoring satellites, to fight and win two nearly simultane- maintaining missiles," said McPeak. ous major regional conflicts." They are the line items in the operaeliminattions and maintenance account, and has already Restructuring ed unnecessary layers, consolidated the "bedrock" of readiness, which reheadquarters and reduced staffs. mains the Air Force's top priority, he Major commands have been cut from said. 13 to eight a 40 percent reduction. "But, we simply must look at O&M because have there is no where else to look." More than 1,000 colonel positions chief For been has been cut since McPeak example, while the Air Force will of staff. By 1995, there will be about fly more than a million fewer hours in 3,500 colonels in the Air Force. He said 1995 than it did in 1985, O&M costs it seems like only yesterday there were will increase from 30 percent to 36 percent over the same decade. 6,000. shedin McPeak envisions at least three been also made has Progress ding Cold War programs, such as in- steps to help reduce operating costs: tercontinental ballistic missiles. Other 0 One is a better accounting sysB-- 2 and tem, one that accounts for costs in a programs, such as the more timely and accurate manner. said McPeak been restructured. have B Two, he said, the Air Force needs these cancellations and restructures War re- to continue improving the reliability reflect the purge of - Cold ' V Shd maintainability of its systems. In quirements. Reforming the acquisition process 1995, 13 percent of the Air Force's top could also "go a long way" toward line budget will be spent on the part reducing the cost of doing business, he of O&M that includes such things as fuel, depot maintenance and depot said, adding the Air Force will "fly formation in any broader effort to over- repairable parts. "We can address this issue in two haul the way this country buys hardware." ways," said McPeak. "We can work military What that leaves the Air Force with the problem up front by better deis the cost of operating and maintain sign of the equipment we acquire." For - C-1- 7, - OFF $1000 ANY SPA AND The other option is to work the "back end" finding ways to make the repair process itself more efficient. For example, surcharges for such things as transportation and storage costs incurred when repairing parts or providing supplies often doubles the overall repair cost. In other words, it costs as much or more to manage the repair as it costs to make it, he said. "We simply must do better." D Third, McPeak said the Air Force needs to "turn loose the talent and creative energies of people at the point of contact. "This is what the Quality Air Force initiative is all about empowering people, letting them take the initiative to find better ways to do the mission." But, he said, it will take more than it will take inencouragement centives. In fiscal 1993, money for depot repair of exchangeable spare parts was put into the wing commander's budget for the first time and not in a global Air Force account. Now when the wing commander pays the bill, he has an incentive to come up with new ways to both reduce breakage and fix what's broken on base thus reducing costs, said McPeak. The same concept is being applied to fuels giving the dollars to the wing commander. "In '93 we selected three bases for a pilot program. In one year, Seymour Johnson (AFB, S.C.) alone saved $1.4 million in fuel costs and they got to keep half that. Now that's a powerful incentive." But the Air Force can't win the battle alone and is looking to its partners in the defense industry to help cut y cost costs. An Air scrub of the program will save the service about $5 million in support costs next year. "We need more success stories like this," said McPeak. Force-industr- B-1- B SALE STOVEFeaturing Consumer GAZEBO PACKAGE X OVMJM.OOO zL A Ugfra Mil 141,01111 Digest's "Best Buy" w-- . - IM fire with "naturalgas. Listed 30 Yr. Warranty 8.5 Financing Available m W L UL J$r Stoves And Accessories. IA OAC. I This year Americans will produce more litter and pollution than ever before. If you don't do something about it, who will? mm. LAYTON 690 SO. MAIN 544-883- 5 ft iffiPJi worth highwav OGDEN 3214 WASH. BLVD. 621-195- 3 J |