Four  interrelated  subsystems  make  up  the RMS  to  meet  the  objectives  of  the  DOD.  They are  as  follows: Programming  and  budgeting Management of resources for operating units Management of inventory and similar assets Management of acquisition, use, and disposi- tion  of  capital  assets The  first,  third,  and  fourth  items  are  ap- plicable primarily at the department, bureau, or inventory manager level. The AK would be most concerned  with  the  second  item.  Current  guide- lines  for  the  management  of  resources  for operating units are found in  Financial  Manage- ment  of  Resources  Operations  and  Maintenance (Shore   Activities),   NAVSO  P-3006,   Financial Management  of  Resources  Fund  Administration (Operating   Forces),   NAVSO  P-3013-1,  and Financial   Management   of   Resources   Operating Procedures (Operating Forces), NAVSO P-3013-2. OBJECTIVES The  basic  objectives  of  the  RMS,  as  applied to  operating  units,  are  as  follows: l  To  determine  the  cost  of  operation  of  an activity  in  terms  of  total  resources  consumed  or applied. l To establish a system of controls that will be  of  maximum  value  to  commanders.  Com- manders use these controls to assure that resources are   used   effectively   and   efficiently   in   the accomplishment  of  the  mission  of  the  activity. l  To  furnish  operating  budget  grantors  and other levels of management, up to and including the  Navy  Comptroller,  that  degree  of  financial information  necessary  for  effective  coordination and  control  of  resources. These objectives are achieved by implementa- tion  of  the  planning,  programming,  and  budgeting system  and  the  use  of  such  functional  terms  as funds,  appropriations,  expense  operating  budgets, responsibility   centers,   cost   centers,   expense elements,  and  OPTARs.  With  an  understanding of the interlocking functions of all these factors, the  fiscal  side  of  supply  becomes  a  clear  and purposeful  system.  The  material  presented  in  this TRAMAN   provides   the   necessary   background information. Perhaps AKs may not be personally involved in the consolidation of budget estimates; however, it will be helpful if they know how the process  is  carried  out  and  how  the  action  taken at higher levels may both depend upon and affect what  they  do  locally, The  RMS  affects  the  entire  management process  in  the  DOD.  The  following  paragraphs briefly define steps in the management process. Figure 2-1 indicates the normal sequence of the steps  in  the  management  cycle. Planning  in DOD is concerned with develop- ing long- and midrange strategy and operational concepts,  objectives,  and  requirements  based  on continuously  projected  appraisals  of  the  world situation  and  on  technological  and  intelligence forecasts. Programming  is   concerned   with   setting specific 5-year defense goals and the schedule for achieving them, grouping functions and activities sharing the same objectives into major programs, and  estimating  resource  requirements  for  each. Budgeting  is  the  function  of  formulating 1-year  projections  of  resource  requirements  for programs, balancing priorities in the competition for  limited  resources,  and  obtaining  associated funds. Accounting  is  the  function  of  measuring  the results  of  performance  (progress  and  status  of Figure 2-1.—Department of Defense management process. 2-3