Cost Management in a Tactical Environment: A Case Study of the 316th Expeditionary Support Command (ESC) in Iraq, 2007-2008
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Authors
Mixa, Matthew
Williams, Michael
Subjects
Cost Management
316th Expeditionary Sustainment Command, Cost Management, Case Study, Deployed, Cost Control, Iraq
316th Expeditionary Sustainment Command, Cost Management, Case Study, Deployed, Cost Control, Iraq
Advisors
Date of Issue
2010-05-27
Date
27-May-10
Publisher
Monterey, California. Naval Postgraduate School
Language
Abstract
This project investigates the distinction between cost-benefit analysis and cost management. Although there exist several precedents in which elements of the Department of Defense have practiced cost management, nowhere to be found was an example of applied cost management in a theater of combat. This project provides a case study of the 316th ESC, which may begin to fill that void. The 316th ESC''s staff forecasted future consumption, supervised the execution of operational missions, measured the consumption of resources, and reviewed variances between what was planned and what actually happened. These steps raised questions that fed continuous improvement. Of the many projects initiated by the 316th ESC, the two that best exemplified the cost-management process were the institution of supply referrals and the reductions of Meal, Ready-to-Eat (MRE) inventories. Supply referrals significantly reduced inventories, lowered transportation costs, and improved customer wait time. The reduction of MRE inventories saved over $4.8 million in direct costs and saved Soldiers'' lives by reducing supply convoys. By planning, executing, measuring, and reviewing the consumption of resources, the 316th ESC was able to target inefficiency and overconsumption, while providing better service to its customers. It accomplished its mission at the right cost.
Type
Technical Report
Description
Case Study (for Acquisition Research Program)
Series/Report No
Department
Logistics Management
Graduate Student
Identifiers
NPS Report Number
NPS-LM-10-003
Sponsors
Naval Postgraduate School Acquisition Research Program
Funder
Format
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.