Aviation depot level repairable carcass tracking and billing : the effect of the two price system on budgeting and flying hour cost reporting. PDF
Preview Aviation depot level repairable carcass tracking and billing : the effect of the two price system on budgeting and flying hour cost reporting.
--PAOUATESCHOOL NA iF0RNlA93943-5002 NAVAL POSTGRADUATE SCHOOL Monterey, California THESIS AVIATION DEPOT LEVEL REPAIRABLE CARCASS TRACKING AND BILLING: THE EFFECT OFTHE TWO PRICE SYSTEM ON BUDGETING AND FLYING HOUR COST REPORTING by Carl Stephen Staggs December, 1991 ThesisAdvisor: Richard B. Doyle Approved for public release; distribution is unlimited 1258726 o Unclassified SECURITYCLASSIFICATIONOFTHISPAGE REPORT DOCUMENTATION PAGE la.REPORTSECURITYCLASSIFICATION 1b.RESTRICTIVEMARKINGS Unclassified 2a SECURITYCLASSIFICATIONAUTHORITY 3 DISTRIBUTION/AVAILABILITYOF REPORT Approvedfor publicrelease;distributionisunlimited. 2b.DECLASSIFICATION/DOWNGRADINGSCHEDULE 4 PERFORMINGORGANIZATIONREPORTNUMBER(S) 5 MONITORINGORGANIZATIONREPORTNUMBER(S) 6a NAMEOFPERFORMINGORGANIZATION 6b OFFICESYMBOL 7a NAMEOFMONITORINGORGANIZATION NavalPostgraduateSchool (Ifapplicable) NavalPostgraduateSchool 55 6c ADDRESS(City,State,andZIPCode) 7b ADDRESS(City,State,andZIPCode) Monterey,CA 93943-5000 Monterey,CA 93943-5000 8a NAMEOFFUNDING/SPONSORING 8b OFFICESYMBOL 9 PROCUREMENTINSTRUMENTIDENTIFICATIONNUMBER ORGANIZATION (Ifapplicable) 8c ADDRESS(City.State,andZIPCode) 10 SOURCEOFFUNDINGNUMBERS ProgramtlementNo ProjectNo TaikNo WorkUnitAcceiiion Number 11 TITLE(IncludeSecurityClassification) AviationDepotLevelRepairableCarcassTrackingandBilling: TheEffectoftheTwoPriceSystemonBudgetingandFlyingHourCost Reporting - , 12 PERSONALAUTHOR(S) 13a TYPEOFREPORT 13b TIMECOVERED 14 DATEOFREPORT(year,month,day) 15 PAGECOUNT Master'sThesis From To December, 1991 95 16.SUPPLEMENTARYNOTATION TheviewsexpressedinthisthesisarethoseoftheauthoranddonotreflecttheofficialpolicyorpositionoftheDepartmentofDefenseortheU.S. Government. 17 COSATICODES 18 SUBJECTTERMS(continueonreverseifnecessaryandidentifybyblocknumber) FIELD GROUP SUBGROUP AVDLR,AviationDepotLevelRepairable,CarcassTracking,NavyStockFund, FlyingHourCostReporting 19 ABSTRACT(continueonreverseifnecessaryandidentifybyblocknumber) ThepurposeofthisthesisistoexamineproblemswiththeNavy'stwopriceaviationdepotlevelrepairable(AVDLR)billingandtracking system. Theseproblemsincludefluctuationsinpostfiscalyearobligationlevelsandthedistortionofflyinghourcostreportingdueto AVDLRcarcasschargesandcreditsreceivedduringtheexpenditureavailabilityperiodsoftheOperationsandMaintenance,Navy appropriationsusedtofundAVDLRpurchases. Fluctuationsinpostfiscalyearobligationlevelscanpotentiallyresultintheunintentional overobligationoffunds. Distortionsinflyinghourcostsresultininaccurateflyinghourprogrambudgetrequests. Thisthesisalsoexplores thefeasibilityofatwoprice/onebillsystemofchargingforAVDLRswhichhasoftenbeenproposedasasolutiontotheproblemsmentioned above. Theconclusionreachedisthattheproblemshavediminishedsignificantlyovertime. Thetwopricebillingsystemremainsthebest meansofmaintainingsystemvisibilityofAVDLRcarcassesandholdingdownoverallAVDLRcosts. 20QDISTRIBUTION/AVAILABILITYOFABSTRACT 21.ABSTRACTSECURITYCLASSIFICATION UNCLASSIFIED/UNLIMITED ] SAMEASREPORT ] D1ICUSERS Unclassified 22a.NAMEOFRESPONSIBLE INDIVIDUAL 22b TELEPHONE(IncludeAreacode) 22c OFFICE SYMBOL RichardB.Doyle (408)649-3302 AS/DY DD FORM 1473,84 MAR 83APReditionmaybeuseduntilexhausted SECURITYCLASSIFICATIONOFTHISPAGE Allothereditionsareobsolete unclassified Unclassified Approved for public release; distribution is unlimited Aviation Depot Level Repairable Carcass Tracking and Silling: The Effect of the Two Price System on Budgeting and Flying Hour Cost Reporting by Carl Stephen Staggs Lieutenant Commander, United States Navy B.S., University of South Carolina, 1979 Submitted in partial fulfillment of the requirements for the degree of MASTER OF SCIENCE IN MANAGEMENT from the NAVAL POSTGRADUATE SCHOOL December 1991 ABSTRACT The purpose of this thesis is to examine problems with the Navy's two price aviation depot level repairable (AVDLR) billing and tracking system. These problems include fluctuations in post fiscal year obligation levels and the distortion of flying hour cost reporting due to AVDLR carcass charges and credits received during the expenditure availability periods of the Operations and Maintenance, Navy appropriations used to fund AVDLR purchases. Fluctuations in post fiscal year obligation levels can potentially result in the unintentional over obligation of funds. Distortions in flying hour costs result in inaccurate flying hour program budget requests. This thesis also explores the feasibility of a two price/one bill system of charging for AVDLRs which has often been proposed as a solution to the problems mentioned above. The conclusion reached is that the problems with the two price system have diminished significantly over time. The two price billing system remains the best means of maintaining system visibility of AVDLR carcasses and holding down overall AVDLR costs. 111 TABLE OF CONTENTS I. INTRODUCTION 1 A. DESCRIPTION OF THE PROBLEMS ASSOCIATED WITH THE TWO PRICE BILLING SYSTEM 1 .... B. ORIGIN OF NAVY STOCK FUNDING OF AVDLRS 2 C. EXPLANATION OF THE TWO PRICE AVDLR BILLING SYSTEM 7 D. SUMMARY 10 II. AVDLR OPERATIONAL FUNDING 13 A. INTRODUCTION 13 B. THE FLOW OF FUNDS 13 C. LIMITATIONS ON OPERATING FUNDS 15 D. THE TRANSITION FROM NAVY STOCK FUND TO END USE MANAGEMENT OF AVDLRS 21 E. AVIATION SUPPORT ACTIVITY STRUCTURE 22 F. THE POINT OF SALE 24 .... G. SECONDARY EFFECTS OF END USE OWNERSHIP 26 III. THE RELATIONSHIP BETWEEN ASO'S AVDLR CARCASS TRACKING AND BILLING SYSTEM AND THE NAVY'S FLYING HOUR PROGRAM 30 IV
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