Value engineering: application to the procurement of spare parts
Pockette, Michael D.
Warmington, Jeffery A.
Brown, David G.
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The purpose of this thesis is to determine how and to what extent the Department of Defense Value Engineering (VE) effort can be utilized to improve the procurement of spare parts. An in-depth research effort was undertaken in this area. Interviews were conducted and data were collected from the DOD, DLA, and Navy Supply Systems Command regarding this topic. A comparative analysis of the data revealed trends and opportunities for VE application to the procurement of spare parts, which resulted in three conclusions: First, VE is a proven cost saving tool but is underutilized in spare parts procurement. To maximize savings, VE should be emphasized in the replenishment spare parts process. DOD must initiate efforts to encourage more contractor VE participation in the spare parts procurement process. Second, there continues to be a lack of top management support within the DOD for VE as a whole, which directly impacts on VE investment in spare parts procurement. An intensive training and education process is necessary for Government and contractor acquisition personnel emphasizing the benefits of the VE program. The third conclusion is that the current DOD procurement environment of reduced budgets and fewer major weapons acquisitions heightens the need for greater use of VE in the spare procurement process. Proper use of the Value Engineering program, in major systems acquisitions and spare parts procurement, possesses numerous opportunities and advantages for both the Government and contractors alike.
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