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WILS 5
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I AMT JILLI AMCP 11-5

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Sports
ARMY PROGRAMS

LINE OF BALANCE

HEADQUARTERS , U.S. ARMY MATERIEL COMMAND AUGUST 1968

 HEADQUARTERS
UNITED STATES ARMY MATERIEL COMMAND
WASHINGTON , D.C. 20315

AMC PAMPHLET 29 August 1968

No. 11-5

ARMY PROGRAMS

LINE OF BALANCE

AMCP 11-5 , Line of Balance , is published for the information and guidance
of all concerned . The use of Line of Balance as a management control
technique is a prerogative of the user .

( AMCCP - PS )

FOR THE COMMANDER :

OFFICIAL : CLARENCE J. LANG

Major General, USA
Chief of Staff

fra G
WM . A. GREGORY
on
Colonel , GS
Chief , Administrative Office

DISTRIBUTION :
A and B
 AMCP 11-5

FOREWORD

ine of Balance ( LOB ) technique set forth in this pamphlet is a

lic management tool which is based on the principle that balanced
it and resources must be of major consideration in the management
ess from initial planning through the attainment of the end
uct .

portrays the relationship of one variable factor with another in

ay that highlights the deviations from original plans , thereby
ying to measure progress attained and highlighting need for
rective action at established control points .

: LOB management technique is easily expanded or contracted to

form with the peculiarities of each individual situation . It may

used for the life cycle management of a complete system , or for

ntrol of the separate phases to include development , production ,
ocurement and supply operations , and inventory control .

his pamphlet discusses

LOB principles ; how the technique can apply
management of systems within the U.S. Army Materiel Command ; and
ncludes instructions for the construction and use of management
nformation displays .
1
 AMCP 11-5

Paragraph

Section I. INTRODUCTION
Purpose 1
Scope 2
Definition 3

II . THE MANAGEMENT PROCESS AND LINE OF BALANCE

ANALYSIS
LOB management process 4
Description , purposes , and advantages of LOB 5
Phases of LOB 6

III . THE LINE OF BALANCE PROCESS

Elements of LOB 7

IV . ANALYSIS OF LINE OF BALANCE INFORMATION

Comparison of current progress with planned
objectives 8
Patterns of imbalance 9
Comparison of actual delivery with planned
delivery 10

V. REPORTING
Reporting levels 11
Illustrative report formats 12

VI . MANAGEMENT CONTROL SYSTEM

General 13
Field repair and overhaul 14
Systems concept 15
Information flow 16
Level of detail 17

VII . APPLICATION OF LOB FOR A DEVELOPMENT PROJECT

( PROTOTYPE )
General 18
Sequence of study and charting 19
Developing the plan diagram ---- 20
Constructing the objective diagram 21
Constructing the progress diagram 22
23 .
" Striking" the line of balance

VIII . IMPLEMENTATION
Implementation actions 24

System operation 25

IX . LINE OF BALANCE COMPUTER PROGRAM

Fortran Computer Program 26
AMCP 11-5

Section I

INTRODUCTION

1. Purpose . This pamphlet provides guidance and procedures for the use
of Line of Balance ( LOB ) within the U.S. Army Materiel Command ( AMC ) .
is intended to serve as :

a.
A procedural guide of the LOB as a systems management technique
or for functional application in supply , depot maintenance , procurement ,
production , and inventory control ,

b. A text for managers throughout AMC who choose to utilize LOB as

a management control technique .

2 . Scope . The procedures contained in this pamphlet apply to Headquarters ,

AMC ; AMC major subordinate commands ; project managers ; and separate
installations and activities reporting directly to Headquarters , AMC .

3. Definition , Line of Balance is a technique for assembling , selecting ,

interpreting and presenting in graphic form the essential factors involved
in the management process from initial inception to completion of the end
product , against a background of time . In a more limited sense , it can be
used as a means of integrating the flow of materials and components into
manufacture of end items in accordance with phased delivery requirements ,
LOB is essentially a management - type tool , utilizing the principle of
exception which shows the important constraints imposed upon the program
which will have an adverse effect upon the delivery schedule of the end item .

Section II

THE MANAGEMENT PROCESS AND LINE OF BALANCE ANALYSIS

4, LOB management process . Line of Balance ( LOB ) has been in use for
many years . During the interim years , many customized versions of LOB
have been adapted for individual applications and requirements . Basically ,
all of these systems follow the LOB rationale which is further based on
the management process itself .

a. The LOB management process may be defined as the process of

identifying and organizing objectives and planning and employing resources
to accomplish them . An operating organization and its management provide
the means of accomplishing these objectives and activities . The
responsibilities of an operating manager are to organize and supervise
the work required to meet the production objectives . The manager must ,
therefore , be alert to opportunities which achieve the required objectives ,
efficiently using available resources and time . LOB measures the

effectiveness of an operation and reflects the manager's ability to

üttain the required objective within the quantity , quality , time , and
cost goals established in the planning to reach the objective .

2
 AMCP 11-5

b. Since LOB , like any management device or technique , regardless of

the degree of sophistication , is only a tool , it can never be a substitute
for effective managers . LOB must therefore be an integral part of the
entire management process . In any presentation of a management technique
such as LOB , a sound concept of the management control must first be
established before it can be effectively used .

The Management Cycle

Determine Develop Develop Evaluate Progress

Requirements Plans Detailed
Schedule

Recycle : To incorporate corrective action and required changes .

c. The prime function of the LOB management process entails the

continuous intelligent direction of others by determining and communicating
the prime and supporting objectives of the management system . This function
necessarily includes the development and use of an integrated time
phased plan of action , demanding reasonable requirements in the way of
resources and the subsequent balancing of resources as they are made
available and used . The basic steps of the LOB and processes are as follows :

(1 ) Determination and effective communication of prime and support

ing objectives . ( See para 6a ( 1 ) and 7. )

(2) Development of a coordinated plan of action for the

accomplishment of the objectives . ( See para 6a ( 2 ) and 7. )

(3) Conversion of the plan into integrated schedules within available

resources . ( See para 6a ( 3 ) and 7. )

(4) Regular reporting and concurrent evaluation of progress against

the planned delivery schedule and inventory quantities . ( See para 6a ( 4 )
and 7. )

(5) Recycling of the above process to achieve the incorporation

of desired new actions and required changes into a cohesive scheduled plan .
( See para 6a ( 5 ) and 7. )

5. Description , purposes , and advantages of LOB . a. Description . LOB is

a graphic management tool for measuring current progress against planned

objectives and as an indicator of needed management decision and subsequent
corrective action .

3
AMCP 11-5

b. Purposes and advantages . The most important purposes and advantages

are listed below :

PURPOSE
Indicates where the hardware ( major
item , subassemblies , components , and
parts ) is now with respect to where
it should be at a future date .

ADVANTAGES

Enables the measurement of current relationship of actual accom

plishment to scheduled progress .

Enables the manager to predict the likelihood of accomplishing

objectives in a timely and economic manner .

Imposes a more rigid discipline for considering the various elements

of effort required to achieve the desired objectives , including
interrelationship among the elements of the program system .

PURPOSE
A planning tool for integrating the
flow of materials and components into
manufacture of end items with
established requirements .

ADVANTAGES

Provides an indication of how well the various phases of scheduled

progress are synchronized .

Provides the basis for scheduling purchase orders and shop orders .

Provides definitive data for managers to substantiate funding ,

manpower , and facilities requests he may place upon higher authority .

Provides historical data for the program which can be drawn upon
for subsequent programs .

Provides visible proof that a planning job has been done .

Provides a structural plan which lends itself to systematic

determination of total estimated time required for a work effort
which can be compared to a directed or desired delivery schedule .

PURPOSE
Provides a positive means for
determining those areas of the
management process which need
remedial action .
4
 AMCP 11-5

ADVANTAGES

Forecasts potential delays in delivery schedules by identifying

those elements which are lagging and likely to adversely affect
timely completion of end items .

PURPOSE
Uses the principle of exception
to show clearly to higher levels of
management the important planned
deviations .

ADVANTAGES

Successively updated studies provide checks on the effectiveness

of remedial actions .

PURPOSE
Relates quantities of elements of a
program to the planned manufacturing
progress .

ADVANTAGES

Provides inventory and schedule information broken out by the

major elements and control points of the logistic pipeline .

PURPOSE
Monitors in - house as well as
contractor effort .

ADVANTAGES

Used as a reporting medium and as a means of communication with

contractors .

Eliminates great quantities of statistical information which is

often in too great detail for management decisions .

Sets forth time relationships between various elements in the

functional processes , and points out deficiencies in the
availability of subcontract elements , materials , parts , and
assemblies at selected control points .

6. Phases of LOB . a. The LOB technique is comprised of the following

five phases , which are listed in the sequence in which each is normally
developed :

5
AMCP 11-5

(1 ) The product -- a product - oriented work breakdown structure

beginning with the end article subdivided into successively smaller
subassemblies and components . ( See fig 1. )

(2) The objective -- the cumulative delivery schedule , which is

called the schedule objective plan . ( See fig 2. )

(3 ) The program --a time - phased flow plan consisting of the

physical steps which must be accomplished in order to complete each end
article , highlighting the flow and assembly of components into major
subassemblies and ultimately the end article itself . This flow plan is
called the production plan . ( See figs 3 and 4. )

(4) Program progress --the cumulative , completed to - date number

of components, subassemblies , and end articles completed for each control
point of the production plan . ( See fig 5. )

(5) Comparison of program progress to the objectives-- " striking

the Line of Balance . " This step consists of determining the necessary
completed quantities at each control point to insure end item deliveries
on schedule . ( See figs 6 and 7. )

b. Combining the three phases , .objective , production plan, and

progress chart into one overall chart comprises the LOB chart . ( See
fig 17. )

C. The level of detail to which it is desirable to apply LOB

is largely a matter of judgment and is related to the complexity
of the product which may vary from project to project as well as from
one part of a project to another .

Section III

THE LINE OF BALANCE PROCESS

7. Elements of LOB . a . General . The four major elements of the LOB

system are directly related to the major phases of the LOB management
process , outlined in paragraph 6 . The objectives and the requirements
of the product are contained in the :

(1 ) Work breakdown structure .

(2) Schedule objective plan . The development of plans and the

determination of schedules are included in the --

(3 ) Production plan and the evaluation of progress is included

in the

6
 -
AMCP 11-5

(4 ) LOB chart itself . Recycling actions are necessary due to

outside actions , such as the modification of the required delivery
schedule , and based upon the evaluation of progress using the LOB
chart .

bi The product . Establishing a production program for a prime mission

item and associated equipment is an effort that requires considerable
detailed planning since manufacturing is only one of the aspects of the
program . Fundamental to all planning is the establishment of the exact
nature of the product to be produced . Definition of the product as used
in this pamphlet means establishing configuration of the product ; i.e. ,
synthesis of the components into its major elements . This establishes what
is called the " work breakdown structure" ( WBS ) .

Work breakdown structure (WBS ) .

(1 ) The development of the WBS begins at the highest level of the

product with the identification of the major elements . The major elements
are then further divided into their components . ( See fig 1. ) This process
of product division is continued until those levels of detail are reached
that are of a logical and manageable nature . Some areas of the project may
be divided into greater detail than others .

(2) The WBS is not limited to hardware items but normally includes
all items of work associated with the product . Thus , items , such as
training , testing , studies , and handbooks , are also included in the WBS .
LOB should be implemented at the top summary level and at other levels only
when required in the judgment of the project officer ; i.e. , all items shown
on the WBS should not necessarily be controlled by LOB during production .
LOB applications should be made on a selective basis not only at the
hardware system contractor's facility but also at subcontractors , associate
contractors , and GFE suppliers .

d. The objective . The objective of the production process , where the

end item is being produced , is meeting the required delivery schedule
( fig 2 , schedule objective plan ) . The delivery information used and needed
in a LOB analysis is of two kinds , planned and actual .

(1 ) PLANNED-- the contractual delivery requirements , including any

authorized revisions .

(2) ACTUAL -- the delivery actually made by the producer .

e. The program , Following the setting down of the objective , the next
important step in LOB is to chart the program ( fig 3 , production plan ) .
The program , as used here , is defined as the producer's planned process
of manufacture and assembly . Deriving the production plan or " assembly
tree , " in terms of key plant operations or assembly points and their lead
time relationship to final completion , is the most vital stage in a

7
AMCP 11-5

LOB preparation . These control points are steps in the manufacturing

cycle , the completion of which can be used to monitor intermediate progress
of production toward its ultimate goal . Charting of the production plan
results from detailed collective study by those responsible for conduct
ing the LOB analysis .

( 1 ) The production plan covers the entire time span of operations

involved in the particular manufacturing process from work on raw materials
through assembly operations to point of shipment .

(2 ) The production plan or assembly tree data are developed from

three factors :

(a) Determining the operations to be performed . A determina

tion is made of various operations to be performed on such elements as

major components , purchased parts , company - furnished parts , Government
furnished equipment , subcontracted parts , and raw materials . Using the

principle of monitoring by exception , only the key operations and other

potentially limiting steps need be considered for the production plan . Care

should be exercised to eliminate from consideration as many as possible of

the simpler , less troublesome operations . A typical top level production
plan will contain approximately 50 control points . Whenever rapidly con
secuti ve ope rat ion s of an all ied nat ure can be gro upe d and named as a single
ope rat ion , thi s act ion sho uld be eff ect ed .

(b ) Determining the sequence of operation . A determination

is made of the sequence or order in which the components and hence the
subassemblies are directed into the final assembly stage . It is necessary
at this time to examine the list of components shown on the WBS . They are
usually arranged according to major assemblies which , in turn , are further
divided into subassemblies . A general chronological determination of flow
can be made at this stage concerning the approximate sequence , or order , in
which these materials and subassembly groups flow into final assembly opera
tions . These data should then be consolidated onto a flow chart which will
delineate the steps of the process in their proper sequence . The flow
chart so constructed is similar to a program evaluation and review
technique network .

(c ) Determining the processing and assembly lead time . A de

termination of the total time interval , in each case , is made between the
required availability of raw material , purchased components , manufactured
components , subassemblies , and the date of shipment of the completed end
item . This time is inclusive and , in addition to required processing time ,
it includes other aspects , such as in - plant storage or handling time . The

lead time is established by which each operation , subassembly , or other

event must take place in advance of ultimate delivery of the end item which
is expressed in definite time units , usually weeks . The longest lead time

8
 AMCP 11-5

for any one part within a subassembly group becomes the governing lead
time for that entire subassembly group when constructing the production
plan .

(3 ) Chart construction . Having determined the raw materials ,

components , fabrication stages , subassemblies , and assemblies comprising
the end article , and having obtained the applicable sequence of operations
and lead time information , the data are presented graphically in the
following manner :

(a) The production plan or assembly tree is constructed by

using a time scale in days or weeks . The time scale is normally set down
in workdays rather than calendar days . A week , therefore , consists of
5 days nd a month consists of 22 days , if the plan is operating on a
40 - hour week . For ease in interpretation , the production plan is coded by

symbol and number to indicate the type of operations being performed at each
control point .

(b ) The production plan is developed by setting down the

selected events and operations in their proper sequence , commencing at the
point of delivery and moving backward through the entire production process .
The control points , however , are numbered from left to right and from top to
bottom . This development will usually result in four or more general sequential
phases , as follows :

(c ) The final assembly process , preceded by major subassembly

work ,preceded by manufacture of components , preceded by acquisition and
preparation of raw materials and purchased parts .

(d) When graphically representing the lead time for a purchased ,

subcontracted ,or Government - furnished component , the initial control point
for that component should be placed at the number of weeks prior to shipment
of the end item for which the component must be available at the plant .
When the lead time is for a company manufactured component , the initial
control point representing that component should be plotted at the number
of days prior to shipment of the end item that the fabrication of the
component must commence .

(4 ) Legend . The legend which explains the meaning of symbols

utilized in the production plan must be shown in the LOB chart . It has
proved very beneficial to establish standard symbols for the functional
areas involved in the production plan .

(a) Each symbol marks a control point , and depending upon

where it is used , indicates an exact time requirement measured in terms of
days or weeks prior to shipment . The establishment of distinctive colors
or hachure for each functional area is effective and should be used when
ever possible .

9
AMCP 11-5

(b) Suggested standard symbols for use as control points on

the LOB Production Plan are shown on figure 4 .

f. Program progress . The program progress display ( fig 5 ) illustrates

the status of actual production and is essentially a bar chart which shows
the cumulative quantities of materials , components , subassemblies, and end
items which have passed each of the control points at a given time .

(1 ) Program progress chart construction is prescribed below :

(a) Program progress , or production progress , is measured in

terms of quantities of materials , components , and subassemblies which have
passed through the individual checkpoints , or control points , of the
production plan , including those contained in end items already completed .
This information is accumulated by a physical inventory for each control
point . The count is normally available from appropriate stock records ;
but if not available , a physical tally must be made .

(b) Whenever the contractor's stock control system is to be

used , a physical spot check by actual count should be made in order to .

insure that the contractor's stock control system is adequate and that
it is being properly implemented .

(c ) Program progress counts must not include defective or

rejected quantities which will not add to the usable inventory . The count
must be in end item sets and , therefore , must be factored or normalize d
whenever two or more units of an item are required in the completed assembly .

(d ) When it is necessary to tally parts or components which

are common to other manufacturing by the contractor , it will be necessary
to make allotments from the overall availability of them . In cases where
a single symbol or a single control point has been shown on the manufactur
ing plan to represent a family of operations or parts , the quantity tallied
for that control point should be the quantity of the least available of the
members of that group or family . Likewise , whenever a control point
represent s the beginning of an assembly process ( either subassembly or
final assembly ), the quantity tallied and used for that control point should
be the quantity of the least available component or part of that assembly
or subassembly .

(2)
The vertical quantity scale on the program progress chart is
the same as was used for the schedule objective plan . The horizontal scale
corresponds by duplication of numbers to the numbered control points of the
production plan .

8. omparision of program progress to objectives . Development of the

schedule objectives , the production plan , and program progress completes
the accumulation of physical information . There remains the task of relating

10
 AMCP 11-5

the intelligence already gathered . This relationship is accomplished by

striking a " line of balance , " which serves as the basis for comparing the
program progress to the objective ( fig 6 ) .

(1) The procedure for striking the LOB as illustrated in figure 71

is as follows :

(a) Plot the balance quantity for each control point .

1. Starting with data on the horizontal axis of the

cumulative delivery chart ( Schedule Objective Plan ) , mark off to the
right of the today line ( Date of Study ) , the number of workdays ( or weeks .
months , as appropriate ) of lead time for that control point . This
information is obtained from the production plan .

2. Draw a vertical line from that control point on the

horizontal axis to the planned cumulative delivery schedule line .

3. From that point on the planned cumulative delivery

schedule line , draw a horizontal line to the corresponding progress bar
on the adjacent progress chart (which would be control point No. 1 ) . This
is the balance quantity for that bar . Similarly , follow the above
procedure for each of the control points .

(b ) Join the balance quantities to form one staircase - type

line across the face of the progress chart .

(2) The balance line depicts for each control point the quantities
of components or sets which must be available at the end of the reporting
period to support the end article delivery schedule . In other words , it
specifies the quantities of item sets for each control point which must be
available in order for progress on the program to remain in phase with the
schedule objective .

» (3) The numerical difference between the " Line of Balance " and

the progress bars indicates the amount the production rate will have to be
increased if future end item delivery requirements are to be achieved .

1
Figure 7 is used merely to illustrate the procedure for striking the
line of balance and should not be confused with other LOB charts
contained in this document .

11
 BREAKDOWN
WORK
STRUCTURE
EXAMPLE AMCP 11-5

SCRAPER

POWER
HYDRAULIC
TRACTOR TRAILER

12
TRAIN
SYSTEM

TRANS
ENGINE MIS XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX
SION

1
Figure
 PLAN
OBJECTI
SCHEDU VE
LE

:
SYSTEM :
ITEM CHANGE REPORT
PERIOD
: S
CYMBOL
.REP
ONT
OMEGA Vehicle .
NO 64
FY
Qtr
Ist -101
AMCPM

CUMULATIVE
PRI 164
-9
FY 65
-19
FY 1 9_66
-FY 1
- 967
FY 1 9_68
-FY 1
- 9_69
FY
OR
Y
DELIVERIES

300
280 TODAY
260
240
220
PLANNED
-
200
180 SCHEDULE
160
140
120
PROJECTED
100
80
60

13
40

20 ACTUAL

CUMULATIVE
SCHEDULE 50 57 67 77 | 16
90
|1
282
282
282
274
252
251
235
227
213
205
190
178
165
155
143
03
30
ACTUAL
|35
29
DATE
TO
VARIANCE 15

:
REMARKS

REPORT
DATE
: :
MANAGER
PROJECT
OF
TITLE
AND
NAME
TYPED PROJECT
MANAGER
:SIGNATURE
OF
Mound
R.
M. M
. ound
MR
AMCP 11-5

2
Figu re
 EXAMPLE
PLAN
PRODUCTION

AMCP 11-5

12
HYDRAULICS
10

6 13
TR
11 AILE R

ASSEMBLY

5
ELECTRICAL

71
3

2 8
TRAIN
POWER

14
1 9
TRACTOR ASSEMBLY
TRACTOR

15 16 17
FINAL SHIP

ASSY

2.6
2.8
3.0
3.2
3.4
3.6
3.8
4.0
4.2 0
.2
.4
.6
1.0.8
1.2
1.4
1.6
1.8
2.4 2.2 2.0

WEEKS
IN
TIME
LEAD

3
Figur e
 PLAN
PRODUCT
ON
USED
SYMBOL
OF
LEGEND

PARTS ASED
PURCH BLUE

MATERIALS
RAW -BLACK

GOVERNMENT
FURNISHEDBROWN

15
ITEMS
SUBCONTRACT ORANGE
-

CONT
FURNI
G RACT
- REENSHED OR

ASSEMBLY RED

SHIP YELLOW
-

Figure
4
AMCP 11-5
 EXAMPLE
PROGRESS
PROGRAM

90
AMCP 11-5

80

70

QUANTITIES
-ACTUAL

60

UNITS
50

EQUIVALENT
40

16
30

20

10

0
1 2 3 4 5 6 7 8

POINT
CONTROL
5
Figur e
 OBJECTI
TO
PROGRES
PROGRA
OF
COMPAR VES
S
M
ISON

90

80

70 QUANTITIES
ACTUAL

BALANCE
OF
-LINE

60

50

UNITS

17
40

EQUIVALENT
30

20

10

.
0

1 2 3 4 5 6 7 8

POINT

CONTROL
AMCP 11-5

Figure
6
 BALANCE
LINE
OF
S HE
"TTRIKING

OBJECTIVE
PLAN CHART
PROGRESS
AMCP 11-5

UNITS
C
)( UMULATIVE

60

50
BALANCE
OF
LINE
40

30

20

It
1
-0

0
М.
F A M
М . I 2 3 4. 5 6

18
J
CONTROL
1 51
&
.A
NO POINTS
1
.3
NO
|
PRODUCTION
PLAN
2 4
.2
NO

3
1
No. 1 5
TODAYI
TIME
LEAD

STUDY
OF
DATE 4 3 2 1 0
1FEB MONTHS
LEAD
TIME

Figu
7 re
 AMCP 11-5

Section IV

ANALYSIS OF LINE OF BALANCE INFORMATION

8 . Comparison of current progress with planned objectives. The prime

purpose in preparing a LOB Chart is to develop a comparison of current
progress with the planned objective . The paramount observation to be
made is whether or not progress is in phase with the objective . The
progress bars which are below the balance line are the elements of the
project which can be seen by management as requiring remedial action . A

salient point to bear in mind is that shortages in the long lead time
elements will automatically create shortages in dependent shorter lead
time components .

9 . Patterns of imbalance . a.
Another important point of observation is
the noting of patterns of imbalance for various sources . For example , if
receipt of purchased parts is far ahead of respective balance quantities ,
some stretch out in subsequent deliveries may prevent excessive tie - up of
capital in inventory ; also , if in - plant manufacturing is considerably
behind , it is obvious that these two phases of the overall effort require
synchronization .

b.
For example , ( fig 17 ) bar 12 on the Progress Chart is far below
the LOB level as of the study date . An analysis is needed to determine
the cause of this situation , and take remedial action .

C.
According to the Production Plan , the start of the Final Assembly ,
control point 10 , is dependent upon the completion of subassemblies 7 and 5 ,
respectively . Looking at the Progress Chart , we find that bar 9 exceeds
the LOB level ; however , bar 8 is far below the level and is a factor
contributing to the delinquent final assembly . Note that the feeder
subassembly , bar 7 , is also delinquent . By moving back , we see bar 1 and
6 are above the LOB level ; however , bar 4 presents a problem requiring
remedial action . The unfilled portion of bar 4 represents too many units
that have been started but not completed , resulting in an imbalance of
production , A situation such as this requires synchronization . 2

10 . Comparison of actual delivery with planned delivery . Once

deliveries have commenced ,valuable information can be derived from a
comparison of the actual delivery curve with the planned delivery curve
on the Schedule Objective Plan . A comparison of the slopes of the two
curves will indicate whether or not current lead or lag ( trends ) of
deliveries may be expected to continue , Horizontal difference in the two
curves indicates lead or lag in terms of time ; whereas the vertical
difference indicates lead or lag in terms of delivered units .

b. In those cases where the cumulative quantity at any control point

falls below the LOB , an explanation in narrative form must be
provided which will briefly explain the cause of the behind - schedule

19
AMCP 11-5

condition , corrective measures being taken , impact on end item delivery

schedules , and expected date of schedule recovery .

C. Material should not be over - procured as protection against criticism

generated by having checkpoints fall below the LOB . In the event there
are items which are in excess of the LOB requirements , an excess inventory
report should be provided .

d. It should be noted that in some cases the progress bar may be

below the LOB in terms of completed end items , but there may be
numerous components which have been received in excess LOB require
ments . The excess inventory report portrays these components which
have been stocked in excess of schedule requirements . This report
furnishes procurement personnel with important information and may result
in action to ( 1 ) return to the vendors components which were shipped in excess
of schedule ; or ( 2 ) admonishment to prevent recurrences of this practice in
the future . Such action will greatly improve the inventory control status
and the attendant storage problem , and will also minimize scrappage or
expensive modifications , should implementation of engineering changes affect
such items .

Section V

REPORTING

11 . Reporting levels . a. Effective project administration and control

requires an upward flow of selective data . These data are used by progressively
higher levels of management in supporting and guiding the efforts of those
responsible for a specific project element .

b. The best approach in determining the information requirements for any

level of management is to consider each level's informational needs .
Manag ers at any level want only that information from LOB , or any other
system , which concerns their activities and responsibilities . It is imperative ,
therefore , that quality rather than quantity of reports be stressed .

12 . Illustrative report formats . For purposes of illustration , the

following reports applicable to the T - 53 / 55 Engine Systems are included :

a. Industrial Programing Line of Balance Chart ( AMC Form 1639 - R )

( fig 8 ) . The LOB chart shows status of progress toward meeting contract
schedules as well as the status at selected control points of the item produc
tion plan . Control point quantities of the items that should have been
completed at each of the production control points , as well as the actual
quantities completed at these same control points . If an item status is
below the balance line at any control point this fact indicates that the end
item contract delivery schedule can be expected to slip in the future if
corrective action is not taken .

20
 PROGRAMMING
INDUSTRIAL CONTRACTOR NUMBER
CONTRACT CONTRACT
IN
UNITS CONTRACT
DATE PREPARED
BY DATE
APPLYING CHART
NO
CHART
BALANCE
OF
LINE
PROGRAM
OBJECTIVE PROGRESS
PROGRAM
C( UMULATIVE UNIT
OF
MEASURE G( UHTULATIVE

MONTH
.CONTR
SCHED
ACT
.OEL
PLAM
PROGRAM
EVENTS
EQUENCE
&O(SPERATIONS
PROGRESS
)OF

21
LEGEND
B
Plue
-O
Parts
urchase
Creen
o
-G
Made
ompany
G
o
Furnished
Equip
-Bov't
rown
C
Sontract
ub
Part
O
-Orange
Material
B aw
Rlack
-O
D
vevelopment
Assembly
or
Terminal
R
- ed
C
Yoompletion
Shipment
-or
ellow
Admini
-Orange strative
Engine
KC
Planni
or
-R ed ng ering
Design
-O range
O
-B
Appropriation
lue
AMCP 11-5

AMC FORM 1639

R-
6AUG
68 SHEET OF (S)
SHEET
8.
Figure Time
Lead
Prior
Completion
.to
AMCP 11-5

b. Production Status Report ( AMC Form 1640 - R ) (fig 9). The Production
Status Report provides the manager with cumulative production data required
for effective management of the processes . This report displays variances
between scheduled and actual output , and also projects the anticipated get
well date and completion of the final unit for each activity , Analysis of
this report provides considerable insight into the production processes in
sufficient time to apply corrective actions where necessary . The LOB
graphical displays illustrate the same information in graphical form
that is shown on the Production Status Report in tabular form .

1.CONTRACT
(1 ) Blocks 1 through 4 . Self - explanatory .

.NO
(2) Block 5 -- CONTROL POINT : The successor event of a production
activity in question . In the case of an assembly point , the
description ( block 6 ) will be used to differentiate between
the merging activities .

(3) Block 6 --DESCRIPTION : The description of the activity which

precedes the control point . The description will be used to
differentiate between components required for end item ,
maintenance , and total requirements . For those control points
at which both end item components and maintenance quantities
are monitored , it should be indicated whether the quantities
in Blocks 7 , 8 , 9 , and 10 are end item sets ( equivalent units )
or absolute quantities .

(4 ) Block 7 -- UNITS TO BE PRODUCED : The equivalent ( or absolute )

units or batches to be produced by the activity described in

Block 6 .

(5) Block 8 -- SCHEDULED OUTPUT TO DATE : The cumulative scheduled

output (in terms of equivalent or absolute units ) of this
activity as of the date shown in the " cut - off" date field .

(6 ) Block 9 -- ACTUAL OUTPUT TO DATE : The actual output ( cumulative ,

in terms of equivalent or absolute units ) of this activity as
of the date shown in the " cut - off" date field .

(7 ) Block 10 --VARIANCE ; UNITS : The difference between actual output

to date and scheduled output to date expressed in terms of units .

(8 ) Block 11 -- SCHEDULED COMPLETION DATE : The scheduled completion

date of the final unit . This will , in most cases , reflect the
Schedule Objective Plan ( Project Manager's delivery schedule ) .

(9 ) Block 12 -- GET WELL DATE : The projected ( expected ) date the sup
plier expects his actual cumulative deliveries will equal or
surpass scheduled deliveries , if presently behind schedule .

( 10 ) Block 13 --REMARKS : Explanation of " not well " situations or

slippages in get well dates .

22
 PRODUCTION
STATUS .
NO
1.CONTRACT
REPORT

2. PROJECT 3. ORGANIZATION
REPORTING 4. REPORT
DATES
NETWORK
.
NO -NET
.SUB
NO TERM
s() pan
OFF
:CUT
DATE
RELEAS
DATE
: E

5. 6. 7. 8. 9. .
10 .
11 .
12 .
13
SCHEDULED ACTUAL VARIANCE
, .SCHED GET
CONTRO
POINT L DESCRIPTION UNITS
BE
TO TO
OUTPUT OUTPUT UNITS COMPLE WELL REMARKS
PRODUCED DATE DATE
TO (%) TION
DATE DATE

23
AMCP 11-5

FORM -1640
R
6AMC
A
68UG 9
Figure
 AMCP 11-5

C. Item Status Report (AMC Form 1641 - R ) ( fig 10 ) . The Item Status
Report should be prepared within the command , preferably by the Program
Control Division , for analysis by the command staff and the project manager .
The report shows for each of the three priorities of production and
deliveries ; i.e. , repairs , overhaul , and new end item , the scheduled and
actual production for a " not well" component , as well as the estimated get
well date in terms of repair quantities , overhaul quantities , and new end
item quantities for the component . Limiting parts causing the not well
situation are indicated , as well as the supplier , the reason , and any
corrective action taken to date . It should be emphasized that this report
is prepared only for those components which are not well in terms of the
overall total requirement : The report is prepared as follows :

( 1 ) Block 1 -- COMPONENT : Enter the name of the assembly , subassembly ,

or component which is " not well" in terms of its total requirement .

(2) Block 2a -- SCHEDULED : Enter the total amount of the component

scheduled for repairs to date .

(3 ) Block 2b --ACTUAL : Enter the actual amount or quantity of the

component delivered for repairs to date .

(4 ) Block 2c--GET WELL : Enter the date it is expected the actual

delivery line for repairs will cross the scheduled delivery line .

(5) Self
Block 3a --SCHEDULED ( overhaul quantities to date) :
explanatory .

(6) Block 3b --ACTUAL (overhaul quantities to date ) : Self - explanatory .

(7 ) Block 3c -- GET WELL : Enter the date the actual overhaul deliveries
will cross the scheduled overhaul deliveries .

(8 ) Block 48 -- SCHEDULED (new end items ) : Self - explanatory .

(9) Block 4b --ACTUAL (new end items ) : Self - explanatory .

( 10 ) Block 4c -- GET WELL (new end items ) : Self - explanatory .

( 11 ) Block 5 -- LIMITING PARTS : Enter the name of the part , subassembly ,

or item causing the component to be behind schedule in terms of
new end items , overhaul , or repairs .

( 12 ) Block 6 -- SUPPLIER : Enter the name of the supplier or suppliers

of the component or its limiting part or parts which are not up
1 to their scheduled delivery rate .

( 13 ) Block 7 -- REASON : The reason for the not well situation .

( 14 ) Block 8 -- CORRECTIVE ACTION TAKEN : Briefly describe actions by

the contractor or supplier to achieve a get well situation .

24
 REPORT
STATUS
ITEM

1. 2. REPAIRS 3. OVERHAUL .4 ENGINES

NEW 5. 6. 7. 8.
.
COMPONENT SCHED ACTUAL GET .
SCHED ACTUAL GET .
SCHED ACTUAL GET LIMITING .SUP REASON CORRECT
WELL WELL WELL PARTS PLIER ACT
IVE
b C a b с a b с TAKEN

25
AMCP 11-5

FORM 1641
-
R
6AM
A
68UGC 10 ure
Fig
AMCP 11-5

d. Technical Requirements Report . The Technical Requirements Report

is submitted by each performing organization involved in the production
process . This report has no specified format and contains information with
respect to the technical requirements of end item and spares , as outlined
in the production contract . Consideration should be given in the format of
the Technical Requirement Report to Configuration Management and provision
for accomplishment of Engineering Change Proposals ( ECP's ) .

e. Problem Analysis Report .

( 1 ) The Problem Analysis Report is a narrative report prepared to

supplement the LOB reports , as well as any other reports which identify
significant problems . The report consists of two basic sections :

(a)
An analysis of control points where current or potential
problems exist . Problems may be due to an end item requirement , maintenance
requirements , technical areas , or combinations thereof .

(b) A narrative description of : The nature of the problem ,

reasons for schedule and / or quantity variance , impact on the immediate
component , impact on the end item schedule , and corrective action -- what
action ? by whom ? when ? and the expected effect and get well date .

(2) Control points in which inventories are substantially in excess

of the LOB quantity should be explained in the Problem Analysis Report as
well as situations where the inventory is below the LOB quantity .

(3) The report flow and frequency are portrayed in figure 11 .

Section VI

MANAGEMENT CONTROL SYSTEM

13 . General . a. The U.S. Army Management Engineering Training Agency , Rock

Island , Illinois , system for the T - 53 and
has developed a management control
T - 55 engine programs , including overhaul and repair parts . It is the type
of system which could , with modifications , be applied in many other areas of
management control . This section is submitted as a guide and typical example
of the technique of management controls .

b . The T - 53 and T - 55 Engine Programs , as in the case of many other Army

Programs , are unique in many respects . Increased Southeast Asia requirements
for field repair and overhaul of the engines have consumed the existing supply
of spares . The AMC philosophy is to maintain those units in the field before
introducing new engines . Therefore , the following priority system has been
set up for the engines and their parts :

(1) In the field maintenance requirements .

(2) Overhaul requirements .

(3) New engine production .

26
 AMCP 11-5

T - 53 / 55 ENGINES REPORTING (EXAMPLE )

EXPLANATION OF SYMBOLS

AR AS REQUIRED AMC
BW BI - WEEKLY Master Plans . Q
Q QUARTERLY Reports
--

W WEEKLY
· LOB Charts . M
· LOB Reports . BW
. Prob . Analysis . . AR
· Significant Actions W

PM Management

• LOB Charts . BW
· LOB Reports . W
Level 1 • Production & O'haul Status . W
· Item Status W
. Prob . Analysis . • AR
. Technical Req'ments AR

MAJOR
SUB CMDS Requirements & Integration

• LOB Charts . BW • Req'ments Sched . W

• LOB Reports . W · LOB Charts . . BW Field
• Prod . Status . W · LOB Reports W
L el • Item Status . ...W / · Selected Con • O'haul Status . .... W
. Prob . Analy . . AR trol Points • Item Siatus W
• Tech . Req . . .AR · Part & OH Re · Prob . Analysis. AR
• Tech . Req . .
quirements AR
• Feedback

CONTRACTOR Production , Overhaul USER Overhaul

Level 3 Overhaul Overhaul

Data Data

Production
Data
Figure 11

27
AMCP 11-5

C.
Along with this system of priorities , AVCO - Lycoming , the new
engine producer , has been instructed to produce engines unassembled so the
parts can be used as spares . In addition , additional contractors have been
engaged in the manufacture of certain parts because production has been held
up by certain critical or limiting items .

d.
LOB uses the exception principle to highlight those assemblies ,
components , or parts which are causing , or will cause , schedule delays .
Predictability and the ability to focus attention on actual or potential
problem areas are two of the main advantages of a LOB type system which
would be of particular benefit to T - 53755 management .

14. Field repair and overhaul. a . Field repair and overhaul rates are avail
able at USAAVCOM and can be used to forecast requirements for engine parts
for these uses . The remainder of production capacity above field repair and
overhaul is available for new engine production . If it is desired to increase
the percentage of production going into new engines over that for field repair
and overhaul , the flying hour program can be decreased or the production rate
can be increased depending upon theatre and contract limitations .

b. While the project manager and USAAVCOM are interested in the breakout 20
of requirements for in - field repair , overhaul ,
and new engine production ,
the contractor's operating units are interested only in total production
requirements for a component ( whether for end item use or for spares ) . It
is possible , therefore , to determine the quantity requirements for a
component due to end item schedules plus the quantity requirements for spares
or overhaul of the component and , therefore , determine the total quantity
requirement for the component in question . USAAVCOM , the contractors , and
A RADMAC , therefore , can determine their needs throughout the production
process to meet delivery requirements as well as forecast the probability of
meeting these requirements . It will also be possible for the project
officer and contractors to determine which components are causing schedule
problems and which are likely to cause problems in the future , in time to
take corrective action to prevent any off - schedule situation .

15 . Systems concept . a. The system is based upon the LOB technique

and uses LOB to determine and control required quantities of assemblies ,
components , and parts at selected control points in the production
process . Pertinent information will be presented to the project manager
and USAAVCOM in a format and level of detail requiring a minimum of adminis
trative and clerical effort in the analysis of the information and the meet
ing of higher level reporting requirements .

b. The system is based upon the concept of the data pyramid ; i.e. ,
higher levels of management require progressively less detailed information
for their decisions . For example , operating level management requires more
specific and more detailed information to perform their duties than does
USAAVCOM . In turn , the project manager requires less detailed information
than USAAVCOM . Only that information considered essential to each level
of management has been incorporated into the system .

28
 AMCP 11-5

C. The T - 53 and T - 55 engine situations require a modification of the

conventional LOB system in that quantities other than completed end items
of concern , which conventional LOB has no provision for handling , and
several models of each engine are available , each with a minor variation
in basic components ; thus , the required modifications described below . The
steps required in calculating the LOB are as follows :

(1) Prepare the Schedule Objective Plan for the new engine production
models . This action is the desired requirement for each of the models in terms
of complete end items . While this category is last , or third , in priority , it
is calculated first because it provides an overall production plan which is
necessary to calculate spare parts and overhaul requirements .

(2) Prepare a production plan for the new engine production models
and compute component requirements at each control point , based upon end item
requirements . This action is accomplished using the LOB procedure outlined
in section III of this proposal ( fig 7 ) .

(3 ) Convert the balance quantities obtained in Step 2 ( above ) from

end item sets to absolute quantities . This step is necessary since spares
and repair parts are ordinarily considered in absolute quantities rather
than in terms of end item sets , and actual quantities cannot be added to
end item sets without conversion . This step is accomplished by multiplying
the end item set balance and actual quantities by the number of components
required per end item . For example , one automobile requires one end item
set of tires plus one spare . Since there are four tires per end item set ,
it is necessary to multiply by four to determine the absolute number of
tires ( 4 ) required per end item before the spare can be added ( fig 12 ) .

(4) Determine the requirements for in - field maintenance and overhaul

in terms of components of the end item . This information is available from
the flying hour program and the user ( ARADMAC ) and will yield the projected
3
repair and overhaul requirements , in terms of engine components , for a given
period of time . The LOB procedure is followed in determining the require
ments at the control points of this component only , based solely upon its
repair and overhaul requirements . This figure is in absolute terms as
opposed to end item sets ( fig 13 ) .

( 5) The requirements for the component based upon new engine

production and repair and overhaul requirements to achieve the total
requirement for the component are added . This procedure is illustrated in
figure 13 and is the total requirement which must be delivered by producing
organizations . It will be necessary to maintain records by model , contractor ,
component , and type of use ( i.e. , new engine or maintenance ) as backup to
this total component requirement schedule . The procedure for calculating
total requirements for a component is schematically diagramed in figure 15 .

29
 QUANTITIES
ABSOLUTE
VS.
SETS
ITEM
END

100 100
AMCP 11-5

90 90

80
80

70 70

60
60

0
50
.
50

Quantity

30
Sets
=
40
-
40

Item
Absolute
30 30

End
20 20

10 10

0
3
2
1 6
5
4 7 8 1 23 4 5 6 7 8

Point

Control
Units
E
/
1 nd 12 11
3
Item
Figure
12
 AMCP 11-5
LINE OF BALANCE FOR REPAIR AND OVERHAUL

Absolute
Units
-30
Maintenance
Maintenance Objective Plan
Progress Chart

20
Line of
Balance for Maint .
Today -2

10

O
May June Control 3 4 17 1 9
Point
9 1 1
1
7 1

3
4
Lead Time
3
z

Drive Train Production Plan

Igniter
Impeller
4
Drive Train
Turbine Driver
3 7 9 Spares Required

Housing
2
Fabricate Intake & Exhausts
1
Assembly
Z Ship 3
Fin - 124
al Assy

Overall Production Plan

1.5 1.0 0.5 0

2.0

Lead Time in Weeks

Figure 13

31
AMCP 11-5

(6) Compare the schedule requirements in total for the major

engine components with producer capacity for the component . Repair
components should be entered at the lower level of the chart ; overhaul ,
second ; and new production , third . This comparision corresponds to the
priority system set up for engine components . The intersection of the
capacity line with requirement lines indicates the date at which a par
ticular requirement will be met . Various levels of capacity can be
analyzed to determine the effect of increasing capacity is less than the
requirement for any component , the manager has two alternative courses of
action open to him . He can take action to increase the capacity ; and if
this action is not desirable or possible , he can adjust the total require
ment schedule to meet the capacity . It is assumed that capacity will not
be exceeded . ( See fig 16. )

16 . Information flow . a. The contractor should submit to the command a

LOB production plan for the entire end item ( at a middle management level )
showing those components which will be produced by subcontractors . Based
upon the end item required schedule , the contractor should submit schedules
required of contributing subcontractors as well . Contractors producing
components for the engin e shoul d submi t a defin itive specific schedule
showi ng plann ed deliv eries to the Gover nment . Usage rates will flow to the
comma nd from the field and overh aui requi remen ts will come from the user .

bi
The command will provide Schedule Objective Plans to the contractors
based upon the end item requirements plus Schedule Objective Plans showing
requirements for maintenance production at the major component level .
Directed delivery rates are established through this means . The contractor
will , in turn , submit Schedule Objective Plans for the end item and maintenance
the major component level , showing updated actual information . The user
will be furnished required overhaul schedules and will , in turn , follow the
LOB procedure for their overhaul responsibility .

C.
An overall Production Plan will be submitted for the entire end
item plus a Production Plan , at the same level of detail , showing that
portion of the overall Production Plan for which maintenance quantities are
required at the major component level .

d. Progress charts for the total production sequence , as well as for

applicable components for which maintenance quantities are required , will
be submitted showing the applicable LOB for the date in question plus actual
quantities for each control point in question . A total progress chart ( end
item requirement plus other requirements ) will also be submitted . ( See
fig 14. )

e. The Technical Requirements Report will be submitted in response to

specified technical reporting requirements of the contract , including
Engineering Change Proposal Actions .

f. The Problem Analysis Report will be submitted as backup to the above

reports on an as required basis .

32
 IREM ENTS
REQU LUTE
AB SOL
TOTA

702l
i lu
60

50

Units
40

30

20 100

10 90

Absolute
O 80
Control 7
6
4
5
1
3
2
70
Points Item
End
LOB
Requirem ents
60

Units
+
50
40

33
701
30 It
.
60

Absolute
20 a
50
10
.
40
0
30 Control
1 2 3 6
5
4 7

Units
Points
20 Total
LOC
Requirements

10

6
5
4
3
271

Absolute
Maintena
LOB
Requirem nce
ents

14
Figure
AMCP 11-5
 -FIELD
IN
REQUIREMENTS
COMPONENT
BY
REQUIREME
MAINTENANCE
NTS
FOR
SCHEDULE
AMCP 11-5

CERTAIN
COMPONENTS

REQUIREMENTS
OVERHAUL
COMPONEN
BY T

REQUIREMENTS
TOTAL
FOR
SCHEDULE
COMPONENT
A
Model COMPONENT
EACH
REQUIREMENTS
)(MAINTAIN
SUPPLIER
BY

34
ENGINE
NEW
TOTAL

REQUIREMENTS
COMPONENT
B
Model FOR
SCHEDULE
REQUIREMENTS
COMPONENT
EACH

New Engine Production

COMPONENT
C
Model
REQUIREMENTS

SCHEDULE
REQUIREMENTS
COMPONENT
TOTAL

Figure
15
 !
A
Leve
Capyl

B
Leve
Capy l

-
- New
Producti o
-
Total
Requirem ents

Overhaul

Quantity
35
*

Cumulative
Repair

TIME

CAPACITY
VS
REQUIREMENT
COMPONENT

16 ure
Fig
AMCP 11-5
 LEGEND COLOR
CHART
ОBALANCE
LINE
O -Blue
Parts
Purchased

-Black
Materials
Raw
OBJECTIVE
THE UNITS PROGRESS
CHART
.Furnished
Govt
-B rown
80

70
Iteins
.-OSubcontr
r
AMCP 11-5

C
90
% OMPLETE
60
.Furn.-
Contr
Green
CONTRACT
SCHEDULE 50 BALANCE
LINE
OF
-Red
Assembly )(CUMULATIVE M
1 AY
OF
AS
40
-Yellow
Ship
30

20

10
DELIVERY
-ACTUAL 0
MONTH DEC APR
MAR
FEB
JAN
JUN
MAY 11 19
18
17
16
15
14
13
200
12345678912
BAR
CONT
.-SCH 5 30
:5
80
20
1825
|14

36
.ACT
-DEL 0 1151
PRODUCTION
PLAN
STUDY
OF
DATE M
-1 AY

1 6
PURCHASED
PART

4
MADE
COMPANY 8

-ASSEMBLY
"A!SUB
2

SUB 5
-CONTRACT
PART 9
-ASSEMBLY
"BSUB 11
10 12

ASSEMBLY
FINAL

T
26 24
25 22
23 20
21
19
18 14
15
16
17 12
13 10
11 9 8 7 6 54 1
2
3 _0

SHIPMENT
TO
PRIOR
DAYS
WORKING
MONTH
22
-
PER
WORK

17
Figure
 AMCP 11-5

17 . Level of detail . a. It is recommended that a WBS be submitted to

the contractors , expanded to the level of detail at which reporting is
desired from the contractors . This level , in all probability , would
not exceed the 3d or 4th level of breakout . It is recommended that the
overall production plan ( covering the engine ) submitted to the project
manager , contain fewer thạn 60 control points . It is required that the
components , for which maintenance quantities are required , will use only
that portion of the production plan concerning the component in question
in the same detail as the overall production plan . ( See fig 13. ) These

data will be used in preparing the LOB for the component maintenance
quantities .

b. This level of reporting and control will enable management to exert

optimum control over the production and supply systems without receiving an
excess of data from the reporting organizations . Management should have
data at this level to : ( 1 ) adequately monitor progress and predict future
progress ; ( 2 ) answer questions from higher authority concerning the end
item schedule ; and ( 3 ) control the status of individual components and
systems in which higher level management will have a continuing interest .
Thus , data can be presented to higher management concerning the delivery
status of any given component plus an indication of future end item and
spare status .

Section VII

APPLICATION OF LOB FOR A DEVELOPMENT PROJECT ( PROTOTYPE )

18 . General . a. This application of LOB for a developmental project

involves the manufacture of a single piece of equipment , used for either
research and development or a pre - production model . The LOB as applied
to R & D basically serves the same purposes as the production application .
Problem areas are highlighted by the same means as previously described .
( See para 8 and 9. )

bi
Application of LOB for development projects differs in some respects
from the production application . These differences are as follows :

( 1) Ordinates on the objective chart and progress chart are shown

in terms of percent completion for the development application as opposed
to completion of units for the production application .

( 2) The start of a phase for a development application is denoted

as an open symbol on the plan diagram ; the completion as denoted by a similar
symbol that is filled in .

(3) The time base for development on the plan diagram is set up in
terms of calendar dates , rather than lead time prior to completion .

19 . Sequence of study and charting . The sequence for a development

project differs somewhat from the production application in that we start

37
 AMCP 11-5

the development study and charting with the plan instead of the objective .
Listed below are the sequential steps :

(1) Develop and diagram the plan , breaking the project into phases .

(2) Plot the objective diagram expressing the schedule of each

phase as an independent objective .

(3) Determine and plot current progress .

(4) " Strike " the line of balance .

20. Developing the plan diagram . a. To construct a diagram of the plan ,

it is necessary to resolve the project into phases and then denote the start
and completion of those various phases . ( See fig 19 , Production Plan
Diagram . ) The start of a phase is denoted by an open symbol and the completion
by a similar symbol that is filled in .

b. The time base on the production plan is estimated and a table is

developed showing each phase , phase number , total estimated input months ,
estimated months yet required to complete the phase , estimated percent
completed on the date of study , and overall composite totals of each column .
( See table 1. )

Table 1
(1) ( 2) (3)
Total Estimated Estimated
Pha se estimated months percent
No. input required completed
months yet to on 1 Feb
completel
Design of transmitter 1 8 2 75
Design of chassis and antenna 2 5 2 60
Manufacture receiver 3 6 4. 33
Manufacture transmitter 4 9 8 11
Manufacture chassis and antenna 5 2 2 O
Assemble receiver and chassis 6 3 O
Final assembly 7 4 4

OVERALL TRANSCEIVER 37 25 32
1The se estimates are as of the time of updating and are independent of the
original estimates for the entire phases .

21 . Constructing the objective diagram . A vertical line is drawn at the

Study Date ( 1 Feb ) . ( See fig 19. ) The schedules for the various phases
are taken from the Plan diagram and plotted as diagonal lines on the
Objective diagram . For example , phase 1 started 1 August and is
estimated to be 100 percent completed by 1 April . A straight line is
drawn from the start of the phase to the 100 percent completion line
( top line of diagram ) ( 8 months from the start of the phase ) . Like
wise ,phase 2 line is drawn from 1 October to the 100 percent completion
line 1 March ( five months from the starting date ) . Similarly , this
procedure is followed for each of the various phases .
38
 PRO PMENT
ELOT
DEVJEC
CHA
BAL
OF
LINERT E
ANC

PERCENT
OBJECTIVES COMPLETION PROGRESS
100
1 3
90
OVERALL
PROJECT 80
II
70
60
50
40

30
20
10
1 3 5 6
0
AUG SEP OCT NOV
DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOY DEC 1 2 3 5 6 OVERALL
PROJECT
STUDY
DATE F1 EB
KEY
DESIGN

39
PLAN MANUFAC
TURE
4 1 4 ASSEMBLY

TRANSMITTER

COMPLETE
3 TRANSCEVER
RECEIVER

CHASSIS RECEIVER
A& NTENNA + C& HASSIS
2. 25 5
ASSEMBLY 1
FINAL
AMCP 11-5

AUG SEP ост NOV DEC FEB MAR APR MAY JUN JUL SEP OCT
AUO NOY DEC
STUDY
DATE 1FEB
PLANNED
LEAD
MONTHS
IN
TIME
18
Figure
 OBJECTIVE
THE
CONSTRUCTING
DIAGRAM PROJECT
DEVELOPMENT

OBJECTIVE
1 C100
% OMPLETION
4
90
I OVERALL
PROJECT
80
AMCP 11-5

70

60

50

40

30
20

10
1
2 4 0
AUG
SEP NOV DEC
OCT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

DATE
STUDY F1
| EB KEY
11 DESIGN

LIRDILIDIRMI

07
.8MO 9 MANUFAC
PLAN TURE
1 4 1 4 ASSEMBLY
TRANSMITTER

COMPLETE
3 TRANSCEIVER
RECEIVER

CHASSIS RECEIVER
A& NTENNA & HASSIS
C 7
5 5 ASSEMBLY
FINAL
2

AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
DATE
STUDY 1FEB
1961
IN
TIME
LEAD
PLANNED MONTHS

Figure
19
--
 -
BALAN
OF
LINE
THE
"
S CE
TRIKI NG PROJECT
DEVELOPMENT

PERCENT
OBJECTIVE COMPLETION PROGRESS
100
3
1/
2/
90
OVERALL
PROJECT
80

70 BALANCE
OF
LINE
60

1,40

41
30

MUIR WINNUNUM
20
10
3 4
0
OVERALL
AUG OCT NOY
SEP DEC FEB
JAN APR
MAR JUN
MAY JUL AUG SEP
OCT NOV DEC 1 2 3 4 5 6 7 PROJECT

DATE
STUDY 1FEB

20
Figur e
AMCP 11-5
 AMCP 11-5

b. A composite planned schedule for the total project ( represented by

the curved line on the objective diagram ) may be computed by assigning

elapsed time values ( phase months ) to each of the phases on the plan and
then totaling them month by month . These were applied as follows : The

gross input for the project added up to 37 phase months ( although the
project covered a calendar period of 17 months ) ; therefore , each one - month
planned input phase was represented as 2.7 % of the project ( 100 • 37 = 2.7 % ) .
Then , at any time , the overall accomplishment would be 2.7 times the total
number of useful phase months input on the project so far . On this basis ,
the planned percentage of accomplishment became as shown in table 2 . These

data ( colm 3 of table 2 ) were used to plot the overall objective curve .

Table 2
(1) ( 2) ( 3)
Phase months Cumulative total Planned percent
End of operating phase months completion in
during month to date terms of
phase months
August 1 1 2.7
September 1 2 5.4
October 2 4 10.8
November 3 7 18.9
December 4 11 29.7
January 4 15 40.5
5 20 54.0
February
March 4 24 64.8
April 2 26 70.2
May 2 28 75.6
June 2 30 81.0
July 2 32 86.4
August 1 33 89.1
September 1 34 91.8
October 1 35 94.5
November 1 36 97.2
December 1 37 99.9

22. Constructing the progress diagram . a . Vertical bars representing the

percentage of completion are drawn for each of the phases . ( See fig 18. )
These bars are also keyed to the phase numbers of the Plan . It is recommended
that in addition to numbering , color coding would be an aid to quick
identification of the various phases .

b. The percentage of completion for the phases is computed as follows :

Let a = number of months yet required to complete a se . ( Estimate

must be based upon predetermined intermediate milestones . )

And A = total number of months originally estimated for the entire

phase .
42
 AMCP 11-5

Then at any time :

% completion = 100 (1 - a)
A

C. The percentage of completion for the overall project is computed

as follows :

Let b = the number of phase months yet required to complete all

the phases of the project ( utilizing a base of predetermined intermediate
milestones as indicated above ) .

And B = total number of phase months input originally estimated

for the entire project .

Then at any time :

b
% completion = 100 -
B

The percent completion for phases 1 , 2, 3 and 4 was then : ( data from
table 1 )

Phase 1: 100 ( 1 - 2/8 ) = 75 percent

Phase 2: 100 (1 2/5 ) 60 percent

Phase 3: 100 ( 1 - 4/6 ) = 33 percent

Phase 4 : 100 (1 - 8/9 ) = 11 percent

The percent completion for the overall project was then : ( data from
table 1 ) 100 ( 1 - 25/37 ) = 32 percent .

23 . " Striking " the LOB . a. As previously described in paragraph 21 ,

!
a vertical line is drawn on the objective diagram representing the
study date ( 1 Feb ) .

b. ( See
The procedure for " Striking" a LOB is prescribed below .
fig 20. )

(1 ) Draw a parallel line from the objective diagram at each of the

intercepts of the individual phases and study date lines to the corresponding
bars of the progress diagram .

(2) Connect the individual balance levels to form a LOB . The

stepped lines represent the Balance level for each phase at the time of
the study .

(3) The overall project level is projected from the intercept point
at the study date line and the curved line of the overall schedule on the

43
 AMCP 11-5

objective diagram . The LOB level on the Progress diagram represents that
percentage of completion at the time of the study for all phases of the
project .

C.In this type of application , the balance line will not necessarily
be a continuous descending line from left to right as it appeared on the
production chart . Note that if the schedule for a particular phase is not
intercepted by the vertical study date line , the balance level for that
phase must be either 0 percent or 100 percent ; for in such cases , the phase
will have been completed or not yet started .

Section VIII

IMPLEMENTATION

24. Implementation actions . a. The initial and most significant step

in the implementation of a management information system is the issuance
of policy statements by management . Such statements serve to indorse the
use and benefits of the system and to officially acknowledge it as the
vehicle for project planning and control . Experience has shown that such
statements can also serve as incentives to middle and working level management
in effective initial acceptance and sub sequent successful implementation .

b. The implementation of any management information system will require

the following actions :

(1) Documentation of the management system which includes necessary

in - house relationships , responsibilities , and authorities as well as limits
and requirements of the contractor .

(2) Acceptance by top management and issuance of policy statements

outlining the desired results .

(3) Orientation of personnel directly involved in the projects .

1
(4) Preparation of plans by the contractor for implementing the
LOB technique within his plants and with subcontractors .

( 5) Condition of subsequent contract awards , in part , be based upon

the planning requirements of the LOB technique , developed by the Directorate
of Procurement and Production , Headquarters , AMC, and submitted to the potential
contractors with the invitation for bid .

(6 ) Implementation guidance by personnel knowledgeable in the

application and administration of LOB systems . (Includes Government
personnel working initially with the contractor .)

(7) Clerical assistance is required at the project manager level in

the consolidation of the weekly and monthly reports to the project manager
into reports to be submitted to command headquarters and Headquarters , AMC .

44
 AMCP 11-5

(8 ) Contract modification . To accommodate

the proposed LOB System ,
the Army's contract with the contractor must be modified to provide for
the internal management system and reporting requirements which are part
of the overall system . This modification is the joint responsibility of
the project manager's office and the command .

(9 ) Train key personnel . Key personnel at the project manager's

office , the command ,
and the contractor should be trained in general
LOB techniques as early in the program as is possible .

( 10 ) Develop item breakout . It is important that this breakout repre

sent the logical , layered explosion of
the end item as well as a logical
grouping of parts , assemblies , subassemblies , components , etc. , for assembly
purposes and overhaul entities . This breakout is the responsibility of the
contractor , the command , and the project manager's office .

( 11 ) Develop the schedules . Included here should be schedules for the

individual components and end items for use in field , maintenance , overhaul ,
and new production . This information will be the result of theater and over
haul needs ; and it must consider production capabilities . It is the respon
sibility of the project manager's office , the command , and the user .

( 12 ) Develop production plans . The production processes and operation

lead times required to develop the items included in the item breakout
must be specified and portrayed . Control points specified from the next
higher level and expanded upon at the level in question must be included .
This plan is the responsibility of the organizational entities actually
performing the work ; i.e. , the contractor and the user , and must be
subject to review by higher level authorities ; i.e. , the command and the
project manager's office .

( 13 ) Compute the LOB . Based upon the item schedules and production
plans , the LOB ( following the procedure outlined in the management system )
should be calculated . The LOB and the production plan upon which it is
based must necessarily be at a greater level of detail for the contractor
and the user , for their in - plant control , than the level which is sent to
the command for integration and analysis . The project manager's office
should receive a LOB chart for overall production showing approximately
50 to 60 control points based upon the initial LOB analysis . Those com
ponents which are in trouble should be portrayed on separate LOB charts .
The same is true at the next lower level , the command , with the exception
that LOB charts and critical components will be reflected at one level
lower on the previously prepared item breakout . It is expected that the
contractor and the user will prepare and maintain LOB charts at the major
part level , to be summarized for presentation and submission to the command
for integration . Basic responsibility lies with the contractor and the user .

45
AMCP 11-5

25 . System operation . a. Compare progress with LOB . This com

parision must be done continually in accordance with the reporting frequency

specified on the project reporting structure and reflected in the contract
modification . Items which show up below the LOB in terms of cumulative
quantity for repair , overhaul , new production , or the total , will be
designated as critical components . This designation is the responsibility
of the contractor and the user , with review and analysis the responsibility
of the command and the project manager's office .

b. Take action on critical components . A component showing up on

the LOB chart as being critical ; i.e. , having control points at which
progress is below the LOB will be brought to the attention of the next
higher level of the project structure ; i.e. , those items showing up on the
contractors ' and the users ' LOB charts as being critical will be brought
to the attention of the command , and those items showing up as critical on
the command's LOB charts will be brought to the attention of the project
manager . Those items showing up as critical will be portrayed to the next
higher level of management at one lower level of detail until the criticality
is eased ; i.e. , if a subassembly shows up as critical on the normal LOB
charts submitted by the contractor to the command ; i.e. , level 2 , this
component will be reported to the command on a level 3 basis while it
remains critical . This action is the responsibility of the contractor , the
user , and the command with review and analysis by the command and the
project manager's office .

Section IX

LINE OF BALANCE COMPUTER PROGRAM

26 . Fortran Computer Program . a. A computer program has been developed

by the U.S. Army Management Engineering Training Agency ( USAMETA ) , which will
provide printouts of all the information portrayed on LOB charts . This
particular program has been written for a GE 215 8K word digital computer .

b.Computer programs not only completely duplicate the information

shown on LOB charts , but further provide an analysis of the production
system . Using the computer program would necessitate only the initial
grpahic LOB effort . Subsequent revisions or remedial actions would be
programed .

C. In most cases , the tabular format should shorten the lead time re
quired for the updated information to reach management .

d. A detailed treatment on LOB computer programs has been prepared

by US AMETA . 2

2Program Guide, a Line of Balance Fortran Computer Program , prepared by

U.S. Army Management Training Agency , Rock Island , Illinois .

46
U.S. GOVERNMENT PRINTING OFFICE : 1968 0-320-270
UNIVE MINN
RSITY O ESOT
F A

3 1951 DO3 770 703 E