The use of a collaborative common parts catalog to achieve increased efficiency and cost savings in the fleet modernization plan

Abstract

Continual modernization and maintenance efforts are essential to ensure the U.S. Navy's ability to commit naval assets to deter adversaries abroad and contribute meaningfully to national security. Despite budgetary pressures to reduce defense expenditures, the need for deployable platforms remains constant. To address this tension between a reduction in resources matched with a constant demand signal, the U.S. Navy has invested considerable fiscal and human capital to develop effective and efficient processes by which to accomplish maintenance, modernization and repair for fleet assets. Using a Knowledge Value Added (KVA) methodology, this thesis looks to identify and quantify additional cost savings that can be achieved in the U.S. Navy's Ship Maintenance and Modernization Program (SHIPMAIN) through use of collaborative information technologies. Specifically, this study will look at the value of applying the Common Parts Catalog (CPC), a collaborative tool in use at many major shipbuilders, to direct use in SHIPMAIN. An analysis of a To-Be model of the SHIPMAIN process with CPC with the current As-Is model of SHIPMAIN suggests savings in excess of $2 0 million a year can be achieved over current processes.