An analysis of the factors affecting the net operating result at Naval Aviation Depot Cherry Point, North Carolina
Griffith, Scott M.
Mutty, John E.
Liao, Shu S.
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This thesis explains the current process involved in establishing stabilized rates for the Naval Aviation Depot (NADEP) Cherry Point, North Carolina. Existing data were examined to aid in understanding the process for determining stabilized rates, workload standards, and workload allocation. Additionally, this research provides an analysis of the inputs to the rate setting process to determine which has the most influence on the financial operating result. A general history of working capital funds is provided and an explanation of the financial and management goals of the Navy Working Capital Fund are spelled out. An assessment of existing methods was based on variance analysis between projected results and actual results. The variance analysis suggests that the current methods used for determining workload standards consistently underestimate the number of hours required to complete the work. Finally a sensitivity analysis was conducted to determine which input variable has the most influence on the net operating result. The sensitivity analysis suggests that changes to workload norms have the most influence on the bottom line at the NADEP.
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