Implementing the Defense Business Operations Fund, the case of the Naval Air Reserve at Point Mugu
Ward, John D.
Milligan, Richard D.
Hildebrandt, Gregory G.
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The purpose of this thesis is to study the implementation of the Defense Business Operations Fund (DBOF) in October 1991 at the Naval Air Weapons Center, Point Mugu and its effects on the Naval Air Reserve (NAR). First, the DBOF system and unit costing concepts are explained. The focus then shifts to the industrial activities of the DBOF at Point Mugu. The effects of the DBOF implementation on the business relationship between the Aircraft Maintenance Department (AMD) and the NAR are analyzed. In particular, the factors used in determining output measures for customer billings by the AMD at Point Mugu are explored. An identification of the cost drivers causing the recent annual cost increases from the maintenance work performed on the NAR's aircraft is also made. Problem areas associated with the DBOF at Point Mugu and how they effect the NAR are discussed.
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