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Analysis of Ticonderoga Class Cruiser Operating Targets for Other Consumables, Repair Parts, and Administrative Expenditures

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Analysis of Ticonderoga Class Cruiser Operating Targets for Other Consumables, Repair Parts, and Administrative Expenditures View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Calhoun, Institutional Archive of the Naval Postgraduate School Calhoun: The NPS Institutional Archive Theses and Dissertations Thesis Collection 2008-06 Analysis of Ticonderoga Class Cruiser operating targets for other consumables, repair parts, and administrative expenditures Mills, Jeffery S. Monterey, California: Naval Postgraduate School, 2008. http://hdl.handle.net/10945/10344 NAVAL POSTGRADUATE SCHOOL MONTEREY, CALIFORNIA MBA PROFESSIONAL REPORT Analysis of Ticonderoga Class Cruiser Operating Targets for Other Consumables, Repair Parts, and Administrative Expenditures By: Jeffery S. Mills Jason C. Warner Edison C. Rush III June 2008 Advisors: Kenneth Euske Dan Matthews Approved for public release; distribution is 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 June 2008 MBA Professional Report 4. TITLE AND SUBTITLE: Analysis of Ticonderoga Class Cruiser Operating 5. FUNDING NUMBERS Targets for Other Consumables, Repair Parts, and Administrative Expenditures 6. AUTHOR(S) Jeffrey S. Mills, Jason C. Warner, Edison C. Rush III 7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) 8. PERFORMING Naval Postgraduate School ORGANIZATION REPORT Monterey, CA 93943-5000 NUMBER 9. SPONSORING / MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSORING / MONITORING Commander Naval Surface Forces AGENCY REPORT NUMBER 11. SUPPLEMENTARY NOTES The views expressed in this report are those of the author(s) and do not reflect the official policy or position of the Department of Defense or the U.S. Government. 12a. DISTRIBUTION / AVAILABILITY STATEMENT 12b. DISTRIBUTION CODE Approved for public release; distribution is unlimited 13. ABSTRACT (maximum 200 words) The purpose of this project is to analyze Ticonderoga Class Cruiser Operating Targets (OPTAR) for the Atlantic Fleet (LANTFLT) and the Pacific Fleet (PACFLT). The scope of the analysis focused on the Ticonderoga Class Cruisers – the surface combatants with the least amount of configuration differences among the class. This project was conducted with the sponsorship and assistance of Commander Naval Surface Forces (CNSF). The goal of this project is to provide CNSF with underlying causes which explain lower expenditures for LANTFLT than PACFLT in the sub accounts of Other Consumable (SO), Repair (SR), and Administrative (SX). Due to levels of data available and the proportion of total expenditures that each sub-account represented, the emphasis of the analysis was concentrated on the Other Consumable and the Repair Parts Sub-accounts. The project developed a methodology to analyze expenditures within the cruiser class by three different levels; the sub-account level, the expense element level, and the system level. The cruisers were classified into groups based on their fleet, homeport, area classification (OCONUS or CONUS), and baseline configuration, at the sub-account and expense element level to see if there were relationships within the different groupings. 14. SUBJECT TERMS 15. NUMBER OF Ticonderoga Class Cruiser, baseline configuration, expenditures, Expense Element (EE), Operating PAGES Target (OPTAR), Other Consumable (SO), Repair Parts (SR), and Administrative (SX), Sub-account, 145 Equipment Identification Code (EIC), and National Item Identification Number (NIIN) 16. PRICE CODE 17. SECURITY 18. SECURITY 19. SECURITY 20. LIMITATION CLASSIFICATION OF CLASSIFICATION OF THIS CLASSIFICATION OF OF ABSTRACT REPORT PAGE ABSTRACT Unclassified Unclassified Unclassified UU i THIS PAGE INTENTIONALLY LEFT BLANK ii Approved for public release; distribution is unlimited ANALYSIS OF TICONDEROGA CLASS CRUISER OPERATING TARGETS FOR OTHER CONSUMABLES, REPAIR PARTS, AND ADMINISTRATIVE EXPENDITURES Lieutenant Commander Jeffery S. Mills, United States Navy Lieutenant Commander Jason C. Warner, United States Navy Lieutenant Edison C. Rush III, United States Navy Submitted in partial fulfillment of the requirements for the degree of MASTER OF BUSINESS ADMINISTRATION from the NAVAL POSTGRADUATE SCHOOL June 2008 Authors: _____________________________________ Jeffery S. Mills _____________________________________ Jason C. Warner _____________________________________ Edison C. Rush III Approved by: _____________________________________ Kenneth Euske, Lead Advisor _____________________________________ Dan Matthews, Support Advisor _____________________________________ Robert N. Beck, Dean Graduate School of Business and Public Policy iii THIS PAGE INTENTIONALLY LEFT BLANK iv ANALYSIS OF TICONDEROGA CLASS CRUISER OPERATING TARGETS FOR OTHER CONSUMABLES, REPAIR PARTS, AND ADMINISTRATIVE EXPENDITURES ABSTRACT The purpose of this project is to analyze Ticonderoga Class Cruiser Operating Targets (OPTAR) for the Atlantic Fleet (LANT) and the Pacific Fleet (PACFLT). The scope of the analysis focused on the Ticonderoga Class Cruisers – the surface combatants with the least amount of configuration differences among the class. This project was conducted with the sponsorship and assistance of Commander Naval Surface Forces (CNSF). The goal of this project is to provide CNSF with underlying causes which explain lower expenditures for LANTFLT than PACFLT in the sub-accounts of Other Consumable (SO), Repair (SR), and Administrative (SX). Due to the level of data available and the proportion of total expenditures that each sub-account represented, the emphasis of the analysis was concentrated on the Other Consumable and the Repair Parts Sub-accounts. The project developed a methodology to analyze expenditures within the cruiser class by three different levels; the sub-account level, the expense element level, and the system level. The cruisers were classified into groups based on their fleet, homeport, area classification (OCONUS or CONUS), and baseline configuration at the sub-account and expense element level to see if there were relationships within the different groupings. v THIS PAGE INTENTIONALLY LEFT BLANK vi TABLE OF CONTENTS I. INTRODUCTION........................................................................................................1 A. BACKGROUND ..............................................................................................1 1. The Force Composition .......................................................................1 2. The Readiness Environment ...............................................................4 3. The Budgeting Process ........................................................................5 4. The Funding Process............................................................................8 B. RESEARCH DISCUSSION............................................................................9 C. OBJECTIVES ................................................................................................10 1. Sub-accounts.......................................................................................10 2. Expense Elements...............................................................................10 3. Systems................................................................................................11 II. DATA COLLECTION AND METHODOLOGY ..................................................13 A. LITERATURE REVIEW .............................................................................13 B. SELECTION OF SHIP CLASS ...................................................................15 C. DATA ANALYSIS SCOPE...........................................................................15 D. METHODOLOGY ........................................................................................18 1. Sub-accounts.......................................................................................18 2. Expense Elements...............................................................................18 a. Baseline Comparison ..............................................................19 b. Fleet Comparison....................................................................19 c. PACFLT Homeport Comparison ...........................................20 d. LANTFLT Homeport Comparison.........................................20 e. PACFLT Ballistic Missile Defense Capable Comparison.....21 3. Systems................................................................................................21 III. DATA ANALYSIS.....................................................................................................23 A. SUB-ACCOUNTS..........................................................................................23 1. Utilities and Other Costs (SO) ..........................................................23 2. Supplies and Equipage (SR)..............................................................25
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