Cost/benefit analysis of Commander, Naval Surface Force, U.S. Pacific Fleet's Supply Maintenance Training Team PDF
Preview Cost/benefit analysis of Commander, Naval Surface Force, U.S. Pacific Fleet's Supply Maintenance Training Team
NAVAL POSTGRADUATE SCHOOL Monterey, California THESIS COST/BENEFIT ANALYSIS OF COMMANDER, NAVAL SURFACE FORCE, U.S. PACIFIC FLEET'S SUPPLY MAINTENANCE TRAINING TEAM by Carlos D. Buzon, II and Michael D. Huggins December 1991 Thesis Advisor: Paul M. Carrick Approved for public release; distribution is unlimited T257744 UNCLASSIFIED SECURITYCLASSIFICATIONOFTHIS PAGE REPORT DOCUMENTATION PAGE la REPORTSECURITYCLASSIFICATION 1b RESTRICTIVE MARKINGS UNCLASSIFIED 2a SECURITYCLASSIFICATIONAUTHORITY 3 DISTRIBUTION/AVAILABILITYOF REPORT Approved for publicrelease;distribution isunlimited. 2b DECLASSIFICATION/DOWNGRADINGSCHEDULE D, PERFORMINGORGANIZATION REPORT NUMBER(S) 5 MONITORINGORGANIZATIONREPORTNUMBER(S) 6a NAMEOF PERFORMINGORGANIZATION 6b OFFICE SYMBOL 7a NAME OF MONITORINGORGANIZATION Naval PostgraduateSchool (Itapplicable) Naval PostgraduateSchool 3<i 6c ADDRESS(City, State,andZIPCode) 7b ADDRESS(City. State, andZIPCode) Monterey,CA 9394;$ 5000 Monterey,CA 93943 5000 8a NAMEOF FUNDING/SPONSORING 8b OFFICE SYMBOL 9 PROCUREMENT INSTRUMENT IDENTIFICATION NUMBER ORGANIZATION (Ifapplicable) 8c ADDRESS(City. State, andZIPCode) 10 SOURCE OF FUNDINGNUMBERS programHerr.emNo Pro/ectNc A Numb, r 11 TITLE (IncludeSecurityClassification) Cost/BenefitAnalysisofCommander,NavalSurfaceForce,U.S.PacificFleet's,Supply MaintenanceTrainingTeam 12.PERSONALAUTHOR(S) Buzon,CarlosD. ,II and Huggins,MichaelD. 13a.TYPE OF REPORT 13b TIME COVERED 14 DATE OF REPORT(year, month,day) 15 PAGE COUNT Master'sThesis From To December1991 16 SUPPLEMENTARY NOTATION Theviewsexpressed inthisthesisarethoseoftheauthoranddonot reflecttheofficialpolicyorpositionofthe Department ofDefenseorthe U.S. Government. 17.COSATICODES 18 SUBJECTTERMS(continueonreverseifnecessaryandidentifybyblocknumber) FIELD GROUP SUBGROUP Supply MaintenanceTrainingTeam,Cost/Benefit Analysis,Supply AssistanceCenter,Cost /BenefitAssessment,Cost/EffectivenessAssessment 19 ABSTRACT(continueonreverseifnecessaryandidentifybyblocknumber) Thisthesisisanattempttoaccomplishacost/benefitanalysisofCommander,NavalSurfaceForce,U.S.PacificFleet's iCOMNAVSURFPAC)Supply MaintenanceTrainingTeam(SMTT). TheeffectivenessoftheSMTTprogram isalsoevaluated. Data weregatheredfromsurveysofcurrentandformerSupplyOfficersofCOMNAVSUKFPACships,withtheShipboard Non-Tactical Automated Data ProcessingIIsysteminstalledandwhichhadreceivedallorpartofanSMTTassistancevisit. Interviewswereconducted with selectedNavyandciviliancontractormembersoftheSMTTstaff. Datawerealso gathered from variousrecordsand reportsmaintainedbythe SMTTstaffandbyCOMNAVSURFPAC'sSupplyAssistanceCenter. ThenatureofthecostandbenefitdataoftheSMTTprogramdidnotlend itselftoa homogenouscomparisonofcostslobenefits. Theauthors havedeterminedthatanattemptto"homogenize"thedatawiththeuseofeconomic"shadowprices"wasof littlevalue in meetingthe "measurableperformance"criteriaofthecost/benefitanalysis. Therefore,instrictterms,acost/effectivenessanalysiswasaccomplished. TheanalysisindicatedthattheSMTTprogramhasresulted inpositivegainsinafloatsupplyoperations. Many intangiblebenefitsare derivedfromtheassistancevisitsandthereareindicationsoftangiblebenefitsintheformofdollarandmanhoursavings. Thetrendofthedata showsavaluableprogramtothefleet. Althoughnotdefinitiveduelodata limitations,theanalysisindicatesa highprobabilitythatthebenefits 20 DISTRIBUTION/AVAILABILITYOFABSTRACT 21 ABSTRACTSECURITYCLASSIFICATION Lj HNCLASSIFIEDrUNllMHED J SAMEASMPOR1 J DTICUSERS UNCLASSIFIED 22a NAME OFRESPONSIBLE INDIVIDUAL 22b TELEPHONE (IncludeAreacode) 22c OFFICE SYMBOL ProfessorPaulM.Carrick (4081 646-2043 36/( a DD FORM 1473, 84 MAR 83APReditionmaybeused untilexhausted SECURITY CLASSIFICATIONOFTHIS PAGE Allothereditionsareobsolete UNCLASSIFIED UNCLASSIFIED SECURITYCLASSIFICATIONOF THIS PAGE DD Form 1473.JUN 86(Reverse) SECURITYCLASSIFICATIONOF THIS PAGE UNCLASSIFIED 11 Approved for public release; distribution is unlimited. CostyBenefit Analysis ofCommander, Naval Surface Force, U.S. Pacific Fleet 's, Supply Maintenance Training Team by CarlosD.3uzon,ll, 1981 Lieutenant, Supply Corps, United States Navy B.S., Chapman College and Michael D. Huggins Lieutenant Civil Engineer Corps, United States Navy , B.S., United States Naval Academy 1985 , Submitted in partial fulfillment ofthe requirements for the degree of MASTER OF SCIENCE IN MANAGEMENT from the NAVAL POSTGRADUATE SCHOOL December/T991 ^~) Department ofAdministrative Science iii ABSTRACT This thesis is an attempt to accomplish a cost/benefit analysis of Commander, Naval Surface Force, U.S. Pacific Fleet's (COMNAVSURFPAC) Supply Maintenance Training Team (SMTT). The effectiveness of the SMTT program is also evaluated. Data were gathered from surveys of current and former Supply Officers of COMNAVSURFPAC ships, with the Shipboard Non-Tactical Automated Data Processing SMTT II system installed and which had received all or part of an assistance visit. Interviews were conducted with selected Navy and civilian contractor members ofthe SMTT staff. Data were also gathered from various records and reports maintained by the SMTT COMNAVSURFPACs staff and by Supply Assistance Center. The nature of the cost and benefit data of the SMTT program did not lend itself to a homogenous comparison of costs to benefits. The authors have determined that an attempt to "homogenize" the data with the use of economic "shadow prices" was of little value in meeting the "measurable performance" criteria of the cost/benefit analysis. Therefore, in strict terms, a cost/effectiveness analysis was accomplished. The analysis indicated that the SMTT program has resulted in positive gains in afloat supply operations. Many intangible benefits are derived from the assistance visits and there are indications of tangible benefits in the form of dollar and manhour savings. The trend of the data shows a valuable program to the fleet. Although not definitive due to data limitations, the analysis indicates a high probability that the benefits of operations of the SMTT different components exceed the costs in varying degrees. IV
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