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How Does Disaggregating a Pooled Inventory Affect a Marine Aircraft Group?

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How Does Disaggregating a Pooled Inventory Affect a Marine Aircraft Group? CORE Metadata, citation and similar papers at core.ac.uk Provided by Calhoun, Institutional Archive of the Naval Postgraduate School Calhoun: The NPS Institutional Archive Theses and Dissertations Thesis Collection 2014-12 How does disaggregating a pooled inventory affect a Marine Aircraft Group? Mohler, Charles M. Monterey, California: Naval Postgraduate School http://hdl.handle.net/10945/44621 NAVAL POSTGRADUATE SCHOOL MONTEREY, CALIFORNIA MBA PROFESSIONAL REPORT HOW DOES DISAGGREGATING A POOLED INVENTORY AFFECT A MARINE AIRCRAFT GROUP? December 2014 By: Charles M. Mohler and Stephen A. Lacovara Advisors: Kenneth Doerr, Keebom Kang Approved for public release; distribution in unlimited THIS PAGE INTENTIONALLY LEFT BLANK REPORT DOCUMENTATION PAGE Form Approved OMB No. 0704–0188 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instruction, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of Management and Budget, Paperwork Reduction Project (0704-0188) Washington, DC 20503. 1. AGENCY USE ONLY (Leave blank) 2. REPORT DATE 3. REPORT TYPE AND DATES COVERED December 2014 MBA Professional Report 4. TITLE AND SUBTITLE 5. FUNDING NUMBERS HOW DOES DISAGGREGATING A POOLED INVENTORY AFFECT A MARINE AIRCRAFT GROUP? 6. AUTHOR(S) Charles M. Mohler and Stephen A. Lacovara 7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) 8. PERFORMING ORGANIZATION Naval Postgraduate School REPORT NUMBER Monterey, CA 93943-5000 9. SPONSORING /MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSORING/MONITORING N/A AGENCY REPORT NUMBER 11. SUPPLEMENTARY NOTES The views expressed in this thesis are those of the author and do not reflect the official policy or position of the Department of Defense or the U.S. Government. IRB Protocol number ____N/A____. 12a. DISTRIBUTION / AVAILABILITY STATEMENT 12b. DISTRIBUTION CODE Approved for public release; distribution in unlimited 13. ABSTRACT (maximum 200 words) In 2013, Marine Aircraft Group 11 (MAG-11) directed Marine Aviation Logistics Squadron 11 (MALS-11) to move Marine Fighter Attack Training Squadron 101’s (VMFAT-101) inventory allowances from MALS-11’s warehouses to VMFAT-101’s squadron spaces. The intent of this policy was to decrease requisition delivery time and increase VMFAT-101’s aircraft readiness. In only one month, MALS-11 staged the appropriate inventory at the squadron along with a detachment of Marines to manage the material. We review the effects of the inventory move on MAG-11 as a whole, in terms of order lead time and capacity utilization. In addition, we examine the new inventory policy’s other effects, such as workflow efficiency. 14. SUBJECT TERMS 15. NUMBER OF risk pooling, complexity management, MALS, lead time, utilization factor, Markovian model PAGES 67 16. PRICE CODE 17. SECURITY 18. SECURITY 19. SECURITY 20. LIMITATION OF CLASSIFICATION OF CLASSIFICATION OF THIS CLASSIFICATION OF ABSTRACT REPORT PAGE ABSTRACT Unclassified Unclassified Unclassified UU NSN 7540–01-280-5500 Standard Form 298 (Rev. 2–89) Prescribed by ANSI Std. 239–18 i THIS PAGE INTENTIONALLY LEFT BLANK ii Approved for public release; distribution in unlimited HOW DOES DISAGGREGATING A POOLED INVENTORY AFFECT A MARINE AIRCRAFT GROUP? Charles M. Mohler, Captain, United States Marine Corps Stephen A. Lacovara, Captain, United States Marine Corps Submitted in partial fulfillment of the requirements for the degree of MASTER OF BUSINESS ADMINISTRATION from the NAVAL POSTGRADUATE SCHOOL December 2014 Authors: Charles M. Mohler Stephen A. Lacovara Approved by: Dr. Kenneth Doerr Dr. Keebom Kang Dr. William R. Gates, Dean Graduate School of Business and Public Policy iii THIS PAGE INTENTIONALLY LEFT BLANK iv HOW DOES DISAGGREGATING A POOLED INVENTORY AFFECT A MARINE AIRCRAFT GROUP? ABSTRACT In 2013, Marine Aircraft Group 11 (MAG-11) directed Marine Aviation Logistics Squadron 11 (MALS-11) to move Marine Fighter Attack Training Squadron 101’s (VMFAT-101) inventory allowances from MALS-11’s warehouses to VMFAT-101’s squadron spaces. The intent of this policy was to decrease requisition delivery time and increase VMFAT-101’s aircraft readiness. In only one month, MALS-11 staged the appropriate inventory at the squadron along with a detachment of Marines to manage the material. We review the effects of the inventory move on MAG-11 as a whole, in terms of order lead time and capacity utilization. In addition, we examine the new inventory policy’s other effects, such as workflow efficiency. v THIS PAGE INTENTIONALLY LEFT BLANK vi TABLE OF CONTENTS I. INTRODUCTION........................................................................................................1 A. BACKGROUND ..............................................................................................1 B. PURPOSE .........................................................................................................3 C. RESEARCH QUESTIONS .............................................................................4 D. LITERATURE REVIEW ...............................................................................5 E. SCOPE AND LIMITATIONS ........................................................................6 F. ORGANIZATION OF THESIS .....................................................................6 II. PROCESS FLOWS ......................................................................................................7 A. PROCESS FLOW INTRODUCTION ...........................................................7 B. STANDARD REQUISITION PROCESS FLOW.........................................8 C. VMFAT-101 SSP REQUISITION PROCESS FLOW ...............................11 D. SUMMARY ....................................................................................................14 III. METHODOLOGY ....................................................................................................15 A. INTRODUCTION..........................................................................................15 B. MODEL ONE: MEASURING THE PRE- AND POST-SSP IMPLEMENTATION REQUISITION DELIVERY TIMES ...................15 1. Purpose................................................................................................15 2. Methods ...............................................................................................16 3. Assumptions........................................................................................22 C. MODEL TWO: MEASURING THE HYPOTHETICAL EFFECTS OF PROVIDING ADDITIONAL RESOURCES TO VMFAT-101 UNDER IDEAL CONDITIONS ...................................................................23 1. Purpose................................................................................................23 2. Methods ...............................................................................................24 3. Assumptions........................................................................................32 D. SUMMARY ....................................................................................................33 IV. RESULTS AND ANALYSIS ....................................................................................35 A. INTRODUCTION..........................................................................................35 B. MODEL ONE RESULTS AND ANALYSIS ...............................................35 C. MODEL TWO RESULTS AND ANALYSIS .............................................38 D. PROCESS FLOWS ANALYSIS ..................................................................40 E. SUMMARY ....................................................................................................41 V. SUMMARY AND RECOMMENDATIONS ...........................................................43 A. INTRODUCTION..........................................................................................43 B. SUMMARY ....................................................................................................43 C. RECOMMENDATIONS FOR FURTHER STUDY ..................................44 D. CONCLUSION ..............................................................................................46 LIST OF REFERENCES ......................................................................................................47 INITIAL DISTRIBUTION LIST .........................................................................................49 vii THIS PAGE INTENTIONALLY LEFT BLANK viii LIST OF FIGURES Figure 1. Organizational support relationship for MAG-11..............................................2 Figure 2. Normal requisition process flow ......................................................................10 Figure 3. VMFAT-101 Satellite Supply Point process flow ...........................................13 Figure 4. M/M/S scenarios before and after SSP implementation ..................................26 ix THIS PAGE INTENTIONALLY LEFT BLANK x LIST OF TABLES Table 1. VMFAT-101 t-Test ..........................................................................................36 Table 2. MAG-11 F/A-18 Attack Squadrons t-Test ......................................................37
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