Proceedings of the Tenth Annual Acquisition Research Symposium, Acquisition Research: Creating Synergy for Informed Change; May 15-16, 2013
Graduate School of Business & Public Policy
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Initiatives to reduce ship maintenance costs have not yet realized the normal cost-reduction learning curve improvements. One explanation is the lack of recommended technologies. Damen, a Dutch shipbuilding and service firm, has incorporated similar technologies and is developing others to improve its operations. This research collected data on Dutch ship maintenance operations and used it to build three types of computer simulation models of ship maintenance and technology adoption. Results were compared with previously developed modeling results of U.S. Navy ship maintenance and technology adoption. Adopting 3D PDF alone improves ROI significantly more than adopting a logistics package alone, and adding both technologies improves ROI more than adding either technology alone. Adoption of the technologies would provide cost benefits far in excess of not using the technologies, and there were marginal benefits in sequentially implementing the technologies over immediately implementing them. Potential benefits of using the technologies are very high in both cases. Implications for acquisition practice include the need for careful analysis and selection from among a variety of available information technologies and the recommendation for a phased development and implementation approach to manage uncertainty.
Disclaimer: The views represented in this report are those of the authors and do not reflect the official policy position of the Navy, the Department of Defense, or the federal government.Approved for public release; distribution is unlimited.Published April 1, 2013The research presented in this report was supported by the Acquisition Research Program of the Graduate School of Business & Public Policy at the Naval Postgraduate School.
NPS Report NumberNPS-AM-13-029
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