Cost/benefit analysis of Commander, Naval Surface Force, U.S. Pacific Fleet's Supply Maintenance Training Team

138 Pages·2.3 MB·en_US

by  Buzon, Carlos D.;Huggins, Michael D.;Carrick, Paul M.

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

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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
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ProfessorPaulM.Carrick (4081 646-2043 36/( a
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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