Operations Research, Systems Engineering and Industrial Engineering Commons^™

A Case Study In The Development Of A Cost Reduction Methodology In The Public Sector, Ross Cooper Haines

Engineering Management & Systems Engineering Theses & Dissertations

Intense fiscal pressures have caused the Department of Defense (DoD) to explore new ways of reducing operating expenses. The primary technique used to achieve this objective is the use of competition - recently for maintenance requirements not previously subjected to competition. One such maintenance requirement is the periodic overhaul of one of the Navy's front line fighter aircraft - the F-14A Tomcat. This case study documents the cost reduction methodology developed by the DoD's incumbent overhaul facility in preparation for competition. The methodology discusses task time estimation, cost center structure, labor rate development and analysis, internal cost transfers as well …