Cost/benefit analysis of Commander, Naval Surface Force, U.S. Pacific Fleet's Supply Maintenance Training Team

Abstract

This thesis is an attempt to accomplish a cost/benefit analysis of Commander, Naval Surface Force, U.S. Pacific Fleet's (COMNAVSURFPAC) Supply Maintenance Training Team (SMTT). The effectiveness of the SMIT program is also evaluated. Data were gathered from surveys of current and former Supply Officers of COMNAVSURFPAC ships, with the Shipboard Non-tactical Automated Data Processing II system installed and which had received all or part of an SMTT assistance visit. Interviews were conducted with selected Navy and civilian contractor members of the SMTT staff. Data were also gathered from various records and reports maintained by the SMTT staff and by COMNAVSURFPAC's Supply Assistance Center. The nature of the cost/benefit data of the SMTT program did not lend itself to a homogenous comparison of costs to benefits. The authors have determined that an attempt to "homogenize" the data with the use of economic "shadow prices" was of little value in meeting the "measurable performance" criteria of the cost/benefit analysis. Therefore, in strict terms, a cost/effectiveness analysis was accomplished. The analysis indicated that the SMTT program has resulted in positive gains in afloat supply operations. Many intangible benefits are derived from the assistance visit and there are indications of tangible benefits in the form of dollar and manhour savings. The trend of the data shows a valuable program to the fleet. Although not definitive due to data limitations, the analysis indicates a high probability that the benefits of operations of the different SMTT components exceed the costs in varying degrees.