A business process analysis of the surface Navy’s depot maintenance program
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Authors
Northrup, Donald S.
Subjects
depot maintenance
naval surface forces maintenance
MSMO
MAC-MO
lean six sigma
Japanese supplier partnerships
naval surface forces maintenance
MSMO
MAC-MO
lean six sigma
Japanese supplier partnerships
Advisors
Dew, Nicholas
Date of Issue
2015-12
Date
Dec-15
Publisher
Monterey, California: Naval Postgraduate School
Language
Abstract
To maintain the Surface Fleet, the Navy spent approximately $7.2 billion in FY2015 and requested $7.8 billion for FY2016. In response to years of costs overruns and missed deadlines, the Navy wants to make better use of these funds by shifting from executing Multi-Ship Multi-Option Contracts with cost-plus fee types to Multi-Award contracts with fixed-price fees. The new contract choice will increase competition and shift risk to the contractor. This thesis conducts an in-depth analysis of the contract change process during execution of depot maintenance availabilities using five ships as case studies. It uses lean principles and lessons from buyer-supplier relationship studies to recommend improvements and to answer two questions. Is the Navy’s current construct prepared to execute a new contract strategy? Is this the best decision to reduce cost and meet schedule requirements? The thesis concludes that process improvement is required before shifting to a new contract strategy, and that improving the working relationship with the contractor is paramount to process improvement.
Type
Thesis
Description
Series/Report No
Department
Graduate School of Business and Public Policy (GSBPP)
Graduate School of Business and Public Policy (GSBPP)
Organization
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NPS Report Number
Sponsors
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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.