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DUDLEY KNOX LIBRARY NAVAL POSTGRADUATE SCHOOL MONTEREY CA 93943-5101 NAVAL POSTGRADUATE SCHOOL Monterey, California THESIS THE COST AM) BENEFITS OF REDUCED MANNING FOR NAVAL COMBATANTS U.S. by Matthew G. Fleming March, 1997 Thesis Advisor: W. Hughes Approved for public release; distribution is unlimited. REPORT DOCUMENTATION PAGE FormApprovedOMBNo.0704-0188 Publicreportingburdenforthiscollectionofinformationisestimatedtoaverage 1hourperresponse,includingthetimeforreviewinginstruction,searchingexistingdata sources,gatheringandmaintainingthedataneeded,andcompletingandreviewingthecollectionofinformation. Sendcommentsregardingthisburdenestimateoranyother aspectofthiscollectionofinformation,includingsuggestionsforreducingthisburden,toWashingtonHeadquartersServices,DirectorateforInformationOperationsand Reports, 1215JeffersonDavisHighway,Suite1204,Arlington,VA22202-4302,andtotheOfficeofManagementandBudgetPaperworkReductionProject(0704-0188) WashingtonDC20S03. 1. AGENCYUSEONLY (Leaveblank) 2. REPORTDATE 3. REPORTTYPEANDDATES COVERED March 1997 Master's Thesis TITLEAND SUBTITLE THE COST AND BENEFITS OF REDUCED FUNDINGNUMBERS MANNING FOR NAVAL COMBATANTS U.S. 6. AUTHOR Matthew G. Fleming PERFORMINGORGANIZATIONNAME(S)ANDADDRESS(ES) PERFORMING 7. Naval Postgraduate School ORGANIZATION Monterey CA 93943-5000 REPORTNUMBER SPONSORING/MONITORINGAGENCYNAME(S)ANDADDRESS(ES) 10. SPONSORING/MONITORING AGENCYREPORTNUMBER 11. SUPPLEMENTARYNOTES Theviews expressed inthis thesis arethoseofthe author anddo notreflect the official policyorposition ofthe DepartmentofDefense ortheU.S. Government. 12a. DISTRIBUTION/AVAILABILITYSTATEMENT 12b. DISTRIBUTIONCODE Approved forpublicrelease; distribution is unlimited. 13. ABSTRACT (maximum 200words) The increasing cost ofmanpower in the United States Navy has generated a new initiative identified as Smart Ship. Smart Ship, or the uses oftechnology for manpower reduction, challenges the culture, tradition and policies ofthe Navy. The life cycle cost for surface combatants can be reduced following the guidelines ofSmart Ship. However, limited analysis has been conducted into the material readiness cost associated with reduced maiming. It was the goal ofthis thesis to concentrate on the cost and benefits ofSmart Ship. A maximum savings of 0.54 percent ofthe total budget for the Department ofthe Navy is possible, using FY 1996 dollars. Through analysis conducted in the study, the current objective ofreducing manpower costs has been determined to be risky and imprudent. Nevertheless, the United States Navy should pursue Smart Ship to enhance combat effectiveness and quality oflife, thereby increasing fleet readiness, morale, productivity and retention. These factors will far outweigh any dollar savings from Smart Ship. 14. SUBJECTTERMS Mission Readiness, Reduced Manning and Smart Ship 15. NUMBEROF PAGES 73 16. PRICECODE 17. SECURITYCLASSIFICA- SECURITYCLASSIFI- 19. SECURITYCLASSIFICA- 20. LIMITATIONOF TIONOFREPORT CATIONOFTHISPAGE TIONOFABSTRACT ABSTRACT UL Unclassified Unclassified Unclassified NSN7540-01-280-5500 StandardForm298 (Rev. 2-89) PrescribedbyANSIStd. 239-18298-102 11 Approved for public release; distribution is unlimited. THE COST AND BENEFITS OF REDUCED MANNING FOR NAVAL COMBATANTS U.S. Matthew G. Fleming Lieutenant, United States Navy B.S., Norwich University, 1990 Submitted in partial fulfillment ofthe requirements for the degree of MASTER OF SCIENCE IN MANAGEMENT from the NAVAL POSTGRADUATE SCHOOL March 1997