Unit costing in the shipyard environment

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Authors
Anderson, Michael D.
Subjects
Unit cost
Shipyard
Incentives
DBOF
Advisors
Terasawa, Katsuaki L.
Gates, William R.
Date of Issue
1993-03
Date
March 1993
Publisher
Monterey, California: Naval Postgraduate School
Language
en_US
Abstract
Unite costing is the latest initiative to achieve saving in DoD. Shipyards, which operate on a cost per unit system, illustrate the potentials gains and hazards of unit costing. Economic theory is applied to provide a basis of comparison for shipyard operations. Unit cost theory is illustrated along with definitions of controllability, scale and efficiency. A model of shipyard operations is proposed and compared to theory. Questions of output measure and quality are addresses under the model. Dangers of output comparison are illustrated by example. The validity and limits of unit cost theory are established by applying the shipyard model. A practical investigation into the applicability of the unite cost systems to government operations focuses on elasticity, budget variability and performance evaluation. This study concludes that unit costing alone is not sufficient to meet states objectives. Additional incentives and increased autonomy are requires to meet efficiency goals.
Type
Thesis
Description
Series/Report No
Department
Department of Administrative Sciences
Organization
Naval Postgraduate School (U.S.)
Identifiers
NPS Report Number
Sponsors
Funder
Format
32 p.
Citation
Distribution Statement
Approved for public release; distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.
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