INCENTIVES FOR ACHIEVING COMPONENT STANDARDIZATION IN SHIP CONSTRUCTION

Abstract

The Equipment Standardization Incentive clauses examined are not likely to result in a significant increase in the degree of standardization achieved in each respective contract over the degree which probably would have been achieved without the incentives. The Equipment STANDARDIZATION Incentive clauses have made a significant contribution in attracting management interest in dealing more effectively with the problems of standardization. Except for Intra-Contract standardization, the contractor incentive approach to achieve Equipment Standardization is a more feasible and effective approach than applying mandatory requirements. The present Equipment Standardization Incentive clauses require modification in at least three areas to effectively achieve the goals of equipment standardization which are: (1) a wider scope of interest including intra-ship standardization and preferred component selections; (2) an incentive measurement base that relates to total degree of standardization achieved rather than to the smallest degree achieved of several selected categories; and (3) an incentive rate more directly related to Navy benefits.

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1967
Accession Number
AD0665680

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