Management Department of the Army Productivity …

1 army Regulation 5 4 ManagementDepartment ofthe ArmyProductivityImprovementProgramHeadqu artersDepartment of the ArmyWashington, DC1 August 1982 UNCLASSIFIEDSUMMARY of CHANGEAR 5 4 Department of the army Productivity improvement ProgramThis Change 1--o Revises chapter 5, alters paragraph 6-5b, and adds appendixes E and Prescribes new guidance for idea interchange and for the Productivity CapitalInvestment of the ArmyWashington, DC1 August 1982 ManagementDepartment of the army Productivity improvement Program* army Regulation 5 4 Effective 1 September 1982H i s t o r y . T h i s p u b l i c a t i o n h a s b e e nreorganized to make it compatible with theA r m y e l e c t r o n i c p u b l i s h i n g d a t a b a s e.

2 N ocontent has been This regulation consolidatesthe policy and guidance necessary for theestablishment and utilization of a produc-tivity improvement Not and exception proponent agency of this regulation isthe Office of the Comptroller of the Management control u p p l e m e n t a t i o n . L o c a l l i m i t e d s u p -plementation of this regulation is, permit-ted, but is not required. If supplements arei s s u e d , A r m y S t a f f a g e n c i e s a n d m a j o rA r m y c o m m a n d s / s e p a r a t e a g e n c i e s w i l lfurnish one copy of each to the Comptrol-ler of the army , HQDA, ATTN: DACA-MP, WASH DC 20310.

3 Other commandswill furnish one copy of each, supplementto the next higher changes. Interim changes arenot official unless they are authenticatedb y T h e A d j u t a n t G e n e r a l . U s e r s w i l ldestroy interim changes on their expira-tion dates unless sooner superseded or Improvements. Users areinvited to send comments and suggestedimprovements on DA Form 2028 (Recom-m e n d e d C h a n g e s t o P u b l i c a t i o n s a n dBlank Forms) direct to HQDA (DACA-RPM) WASH DC i s t r i b u t i o n . A c t i v e A r m y , A R N G ,USAR: To be distributed in accordancewith DA Form 12-9A requirements forAR, (Listed by paragraph and page number) chapter 1 GENERAL, page 1 Purpose.

4 This regulation 1 1, page 1 Background. 1 2, page 1 Scope. 1 3, page 1 Explanation of terms. 1 4, page 1 Objectives. 1 5, page 1 Concept. 1 6, page 1 Policy. 1 7, page 2 Responsibilities. 1 8, page 2 Relationship to Civilian Supervisor Development Program. 1 9, page 3 Reporting. 1 10, page 3 chapter 2 Productivity MEASUREMENT AND EVALUATION PROGRAM, page 4 Section IGENERAL, page 4*This regulation supersedes AR 5 4, 4 September 1973, including the DAMRIP reporting requirements (RCS CSCAM 197) and rescinds DA Forms 4133,4134, and 4136; ltr, DAMA PPP C, 22 Aug 74, subject: Capital Investment Opportunities Program; Msg HQDA (DACA PI) 171612Z Dec 74, subject:Interin Change to AR 5 4, 4 Sep 73; Msg, HQDA (DACA MP), 302129Z June 75 subject: Department of the army Management Review andImprovement Program Report; Msg, HQDA (DACA MP), 090123Z Jul 75, subject: Department of the army Management Review and ImprovementProgram Report.

5 Msg HQDA (DACA MP), 291401Z Aug 75, subject: Presidential Management improvement Award; HQDA Ltr 5 75 4, 16 Sep 75,subject: Restructure of the Departmnet of the army Management Review and improvement Program; HQDA Ltr 5 75 6, 12 Dec 75, subject: Quick Returnon Investment 5 4 1 August 1982iUNCLASSIFIEDC ontents ContinuedGeneral. 2 1, page 4 Scope. 2 2, page 4 Management requirements. 2 3, page 4 Section IIREPORTING OF Productivity DATA, page 4 General. 2 4, page 4 Uses. 2 5, page 4 Structure. 2 6, page 5 Establishment of goals. 2 7, page 5 Submission of goals. 2 8, page 6 chapter 3 METHODS AND STANDARDS PROGRAM, page 16 General. 3 1, page 16 Scope.

6 3 2, page 16 Objectives. 3 3, page 16 Definitions. 3 4, page 17 Policies and procedures. 3 5, page 17 Responsibilities. 3 6, page 19 army facilities engineering. 3 7, page 20 Reporting requirements. 3 8, page 20 chapter 4 VALUE ENGINEERING PROGRAM, page 22 Purpose. 4 1, page 22 Scope. 4 2, page 22 Definitions. 4 3, page 22 General. 4 4, page 22 Policy 4 5, page 22 Objectives. 4 6, page 23 Responsibilities. 4 7, page 23 Precepts. 4 8, page 25 Budget guidance. 4 9, page 25 Budget procedures. 4 10, page 25 Reporting requirements. 4 11, page 25 chapter 5 Productivity CAPITAL INVESTMENT programs , page 27 Purpose.

7 5 1, page 27 Applicability and Scope. 5 2, page 27 Objectives. 5 3, page 28 Policies and Procedures. 5 4, page 28 Quick Return on Investment Program (QRIP). 5 5, page 31 OSD Productivity Investment Funding (OSD PIF). 5 6, page 32 Productivity Enhancing Capital Investment Program (PECIP). 5 7, page 33 Responsibilities. 5 8, page 33 chapter 6 Management PRACTICES, page 38 Cost reduction. 6 1, page 38 Management practices/ Productivity improvement training. 6 2, page 38 Management improvement awards. 6 3, page 39 Motivation. 6 4, page 39 Idea interchange. 6 5, page 39iiAR 5 4 1 August 1982 Contents , page (See Glossary section), page AND ACRONYMS (See Glossary section), page PROJECTS FOR THE DOD PRODUCT ENGINEERING SERVICES OFFICE, page INTERCHANGE FORMAT (RCS: CSCOA-71), page AND STANDARDS (to be published), page ENGINEERING (to be published), page CAPITAL INVESTMENT programs , page 51 Table ListTable 1 1: DAPP Reporting system schedule, page 3 Table 2 6: Productivity data exhibit due dates, page 5 Table E 1: Index (Numerical), page 49 Table E 1: Index (Numerical) Continued, page 50 Table E 1: Index (Numerical) Continued, page 50 Table H 1.

8 Unit Identification (UIC) Codes, page 53 Table H 2: Functional Areas and Codes, page 55 Table H 2: Functional Areas and Codes Continued, page 55 Table H 3: Present Worth Table of Cumulative Discount Factors, page 58 Table H 3: Present Worth Table of Cumulative Discount Factors Continued, page 59 Table H 3: Present Worth Table of Cumulative Discount Factors Continued, page 60 Table H 3: Present Worth Table of Cumulative Discount Factors Continued, page 61 Table H 3: Present Worth Table of Cumulative Discount Factors Continued, page 62 Table H 3: Present Worth Table of Cumulative Discount Factors Continued, page 63 Table H 4: Program Project Year Discount Factors (Mid-Year Factors), page 63 Figure ListFigure 2 1: Functional Areas Susceptible to Productivity Reporting, page 7 Figure 2 2: Productivity Reporting Formats, page 8 Figure 2 2A: Exhibit A, page 9 Figure 2 2B: Exhibit B, page 10 Figure 2 2: Exhibit C, page 11 Figure 2 2D: Exhibit C-1, page 12 Figure 2 2E: Exhibit D, page 13 Figure 2 2H: Exhibit E-2, page 14 Figure 2 3: Format for Annual Functional Area Productivity Goals.

9 , page 15 Figure 3 1: DA Form 4525-R, page 21 Figure 4 1: Format for Statistical Summary of VE actions., page 27 Figure 5 1: Productivity Capital Investment programs project categories, effective FY 83., page 35 Figure 5 2: Summary of Reporting Requirements for All Productivity Capital Investment programs ., page 36 Figure 5 3: Examples of QRIP equipment (not all inclusive)., page 37 Figure 5 4: Examples of QSD PIF projects (not all inclusive)., page 38 Figure 6 1: Courses Appropriate for Attendance by Personnel Involved in the Implementation of DAPP., page 41 Figure D 1: Format for Proposing Projects to the DOD PESO., page 46 Figure E 1: Idea Interchange Format, page 47 Figure E 1: Idea Interchange Format Continued, page 48 Figure H 1: Documentation for Productivity Capital Investment Program (DA FORM 5108-R), page 64 Figure H 1: Documentation for Productivity Capital Investment Program (Page 2 of DA FORM 5108-R) Continued, page 65iiiAR 5 4 1 August 1982 Contents ContinuedFigure H 1: Documentation for Productivity Capital Investment Program (Page 3 of DA FORM 5108-R) Continued, page 66 Figure H 1: Documentation for Productivity Capital Investment Program (Page 4 of DA FORM 5108-R) Continued, page 67 Figure H 1.

10 Documentation for Productivity Capital Investment Program (Page 5 of DA FORM 5108-R) Continued, page 68 Figure H 2: Post Invetment Analysis (DA Form 5108-1-R), page 69 Figure H 2: Post Invetment Analysis (Page 2 of DA Form 5108-1-R) Continued, page 70 Figure H 2: Post Invetment Analysis (Page 3 of DA Form 5108-1-R) Continued, page 71 Figure H 3: Feeder Report to Annual Productivity Report PECI (DA FORM 5108-2-R), page 72 Figure H 3: Feeder Report to Annual Productivity Report PECI (Reverse of DA FORM 5108-2-R) Continued,page 73 GlossaryReproducible FormsivAR 5 4 1 August 1982 chapter 1 GENERAL1 1. Purpose. This regulation a. Establishes the Department of the army Productivity improvement Program (DAPP).