Implementation of reduced shipboard allowance levels : reapplication savings analysis

Abstract

Recently, the Navy instituted a new model (known as .5 FLSIP Plus) for determining the allowance quantities for shipboard spare parts inventories; and as a result, is now in the process of re-stocking ship's storerooms using the new inventory allowance list. The Navy has estimated the amount of savings from this allowance change by developing a cost savings model. This thesis involves evaluation of the cost savings model. It evaluates the reapplication savings estimates projected by the cost savings model by focusing on the actual experience of one ship during its conversion to the new spare parts allowance quantities. Using data developed by Ships Parts Control Center, a thorough analysis and explanation of the Navy's cost savings model is presented. Using the data generated by the Integrated Logistics Overhaul team during the ship's overhaul, a methodology for comparing components of the model's projected reapplication savings is developed. Potential explanations and justifications for deviations between actual and projected results are provided. The results should provide an approach for improving the accuracy of cost savings projections of future inventory model conversions. Reapplication savings analysis of reduced shipboard allowance levels.