FORSCOM%20IR%20TEST

1
THE FORSCOM IR TEST
ANALYSIS OF TEST RESULTS REVISED BY OASA(FMC)
AS OF 22 JUNE 1996
2
Comparable Man-Years (CMY)

• Internal Command
• Review Audit (CA)
• Total Avail Man-Days 3,120 2,246
• Less Liaison Man-Days - 250 -32
• Comparable Man-Days 2,870 2,214
• Divided by Days per YR 260 260
• Comparable Man-Years 11.04 8.52

3
TEST RESULTS FACTOR 1 INPUTS (COST)

• TOTAL COST OF OPERATIONS
• INTERNAL REVIEW 826.4K
• COMMAND AUDIT 687.8K
• TOTAL MAN-DAYS PURCHASED
• INTERNAL REVIEW 4,193
• COMMAND AUDIT 2,934
• COST PER MAN-DAY (MD)
• INTERNAL REVIEW 197. 09
• COMMAND AUDIT 234.45
• COST PER MAN-YEARS (MY)
• INTERNAL REVIEW 51.2K
• COMMAND AUDIT 61.0

COST PER MAN-YEAR
61.0K
51.2K
NOTE AVAILABLE MAN-DAYS AND CORRESPONDING COSTS
WERE EXTRACTED FROM INVESTMENT/INPUT DATA
SHEETS COVERING THE PERIOD 1 AUG 95 - 31 MAR 96
4
TEST RESULTS FACTOR 2 OUTPUT (PRODUCTIVITY)
TOTAL AUDIT ENGAGEMENTS PER CMY

• TOTAL AUDIT ENGAGEMENTS COMPLETED
• INTERNAL REVIEW 88
• COMMAND AUDIT 52
• TOTAL CMY
• INTERNAL REVIEW 11.04
• COMMAND AUDIT 8.52
• TOT ENGAGEMENTS PER CMY
• INTERNAL REVIEW 7.97
• COMMAND AUDIT 6.10

7.97
6.10
SOURCE PRODUCTIVITY OUTPUT DATA SHEETS FOR THE
PERIOD 10/01/95 - 03/31/96.
5
TEST RESULTS FACTOR 2 OUTPUT (PRODUCTIVITY)
TOTAL AUDIT ENGAGEMENTS A CLOSER LOOK
FOLLOWUP AUDITS PER CMY
CONSULTING PROJECTS PER CMY
FORMAL AUDITS PER CMY
IR 2.99 CA 1.41
IR 4.44 CA 1.41
IR .54 CA 1.41
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TEST RESULTS OUTPUT
MONETARY BENEFITS IDENTIFIED PER CMY

• TOTAL MONETARY BENEFITS
• INTERNAL REVIEW 23.5M
• COMMAND AUDIT 11.9M
• TOTAL CMY
• INTERNAL REVIEW 11.04
• COMMAND AUDIT 8.52
• MONETARY BENEFITS PER CMY
• INTERNAL REVIEW 2.13M
• COMMAND AUDIT 1.40M

2.13M
1.40M
DOLLARS SAVED (MILLIONS)
.46M
SOURCE PRODUCTIVITY OUTPUT DATA SHEETS FOR THE
PERIOD 10/01/95 - 03/31/96.
7
TEST RESULTS OUTPUT
ESTIMATED RETURN ON INVESTMENT

• TOTAL MONETARY BENEFITS
• INTERNAL REVIEW 23.5M
• COMMAND AUDIT 11.9M
• ESTIMATED 6-MONTH OPERATING COSTS
• INTERNAL REVIEW 615K
• COMMAND AUDIT 526K
• ROI BENEFITS / COSTS
• INTERNAL REVIEW 38.2 TO 1
• COMMAND AUDIT 22.6 TO 1

38.2 TO 1
22.6 TO 1
ESTIMATED 6-MONTH OPERATING COSTS COST PER M/D
FROM 8 MONTH DATA AVAILABLE MANDAYS DURING
6-MONTH TEST PERIOD.