An analysis of the benefits and savings of the center of excellence within the Fleet Readiness Centers

Abstract

Recognizing the need to reduce cost, Naval Air Systems Command (NAVAIR) reorganized the Intermediate and Depot level maintenance structures to form the combined Fleet Readiness Center. By combining Intermediate and Depot facilities, NAVAIR can reduce Aviation Depot Level Repairable (AVDLR) costs by interdicting Beyond Capable Maintenance AVDLR's. NAVAIR further consolidated the Naval Aviation Enterprise by creating Centers of Excellence (COE) at designated FRC's to limit the amount of repair sites for particular Weapon Repairable Assemblies. The purpose of this MBA Project is to demonstrate that the COE decreases turnaround- time and drastically reduces AVDLR costs by interdicting BCM AVDLR's. This project provides a comprehensive overview of efficiencies and cost savings gained by FRC West's APG-65/73 radar system COE. This project utilizes Arena Software creating a model that better quantifies the benefits of the COE maintenance structure. In addition to demonstrating efficiencies, this project highlights potential detractors that could cause the COE to fall short of its intended goals of better efficiency and cost savings realization. This project was sponsored by FRC West, located in Lemoore, CA. The results identified by this project focus on FRC West, however, they can be generalized and be made applicable throughout the Naval Aviation Enterprise.