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 2012-03 USMC Aviation Maintenance and Repair Cost for the H-1 Upgrade Yearby, Shedrick Dashun Monterey, California. Naval Postgraduate School http://hdl.handle.net/10945/6891 NAVAL POSTGRADUATE SCHOOL MONTEREY, CALIFORNIA MBA PROFESSIONAL REPORT USMC Aviation Maintenance and Repair Cost for the H-1 Upgrade By: Shedrick Dashun Yearby March 2012 Advisors: Lawrence R. Jones Donald Summers 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 March 2012 MBA Professional Report 4. TITLE AND SUBTITLE USMC Aviation Maintenance and Repair Cost for the 5. FUNDING NUMBERS H-1 Upgrade 6. AUTHOR (S) Shedrick Dashun Yearby 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 is unlimited A 13. ABSTRACT (maximum 200 words) This research focuses on the Marine Corps Aviation Maintenance and Repair Cost for the H-1 Upgrade platform. Onsite visits with the Program Manager Air 276 (PMA-276), the Naval Supply Weapons Systems Support (NAVSUP WSS), the Defense Logistics Agency (DLA), and Marine Aviation Logistics Squadron 39 (MALS-39) are conducted to obtain information regarding readiness costs and efficiencies that have impacted the total cost for a transitioning aircraft in Marine aviation. PMA-276, NAVSUP WSS, DLA, and MALS-39 make up the H-1 Cross-Functional Team (CFT). The H-1 CFT provides actionable metrics and best practices that focus on cost concerns (programmatic, material, management, and execution) from all levels of aviation logistics and planning. Key areas of improvement or replication are identified through metric-based solutions that affect cost reductions throughout the AH-1Z and UH-1Y integration. 14. SUBJECT TERMS Aviation Maintenance, Repair Cost, Cross-Functional Team 15. NUMBER OF PAGES 79 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 is unlimited USMC AVIATION MAINTENANCE AND REPAIR COST FOR THE H-1 UPGRADE Shedrick Dashun Yearby, 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 March 2012 Authors: _____________________________________ Shedrick Dashun Yearby Approved by: _____________________________________ Lawrence R. Jones, Lead Advisor _____________________________________ Donald Summers, Support Advisor _____________________________________ William R. Gates, Dean Graduate School of Business and Public Policy iii THIS PAGE INTENTIONALLY LEFT BLANK iv USMC AVIATION MAINTENANCE AND REPAIR COST FOR THE H-1 UPGRADE ABSTRACT This research focuses on the Marine Corps Aviation Maintenance and Repair Cost for the H-1 Upgrade platform. Onsite visits with the Program Manager Air 276 (PMA-276), the Naval Supply Weapons Systems Support (NAVSUP WSS), the Defense Logistics Agency (DLA), and Marine Aviation Logistics Squadron 39 (MALS-39) are conducted to obtain information regarding readiness costs and efficiencies that have impacted the total cost for a transitioning aircraft in Marine aviation. PMA-276, NAVSUP WSS, DLA, and MALS-39 make up the H-1 Cross-Functional Team (CFT). The H-1 CFT provides actionable metrics and best practices that focus on cost concerns (programmatic, material, management, and execution) from all levels of aviation logistics and planning. Key areas of improvement or replication are identified through metric-based solutions that affect cost reductions throughout the AH-1Z and UH-1Y integration. v THIS PAGE INTENTIONALLY LEFT BLANK vi TABLE OF CONTENTS I. INTRODUCTION........................................................................................................1 A. BACKGROUND ..............................................................................................1 B. OBJECTIVE ....................................................................................................6 1. Primary Research Question ................................................................7 2. Supporting Question ............................................................................7 C. SCOPE OF REPORT ......................................................................................7 D. METHODOLOGY ..........................................................................................7 E. ORGANIZATION OF REPORT ...................................................................8 II. CROSS-FUNCTIONAL COST ANALYSIS TEAM (CAT) ....................................9 A. INTRODUCTION............................................................................................9 B. PURPOSE .........................................................................................................9 C. TIER BREAKDOWN ....................................................................................11 D. TIER RESPONSIBILITIES .........................................................................12 E. BENEFITS ......................................................................................................13 F. CONCLUSION ..............................................................................................14 III. METHODOLOGY ....................................................................................................15 A. INTRODUCTION..........................................................................................15 B. MARINE AVIATION LOGISTICS SQUADRON (MALS) .....................15 C. WORKLOAD FLOW STRATEGY .............................................................16 1. O-I Level Maintenance Workload Flow ..........................................16 2. AVDLR Material Requirements ......................................................17 3. AFM Material Requirements ............................................................20 4. Price Challenges .................................................................................21 5. Contract Maintenance Support ........................................................21 6. Fuel ......................................................................................................23 D. CONCLUSION ..............................................................................................24 IV. PROGRAM MANAGER 276 (PMA-276) ...............................................................25 A. INTRODUCTION..........................................................................................25 B. BACKGROUND ............................................................................................25 C. STRATEGY....................................................................................................26 D. CONCLUSION ..............................................................................................31 V. NAVAL SUPPLY WEAPONS SYSTEMS SUPPORT (NAVSUP WSS) ............33 A. INTRODUCTION..........................................................................................33 B. BACKGROUND ............................................................................................33 C. PROVISIONING STRATEGY ....................................................................34 D. PROVISIONING PROCESS ........................................................................35 1. Provisioning Statement of Work (PSOW) .......................................35 2. Provisioning Data Determination .....................................................36 3. Logistics Support Analysis Record ..................................................37 a. Maintenance Plan ...................................................................38 vii b. Interim Support Item List (ISIL) ............................................38 c. Design Change Notice ............................................................39