Methodology for Evaluating Naval Shipyards. Phase 1 - Model Feasibility
Abstract
The study task was to develop a methodology for evaluating the relative utility of Naval shipyards in terms of cost and effectiveness. Phase I was a review of existing models and data, and selection of a model. The conclusion of Phase I is that no model can be found which will satisfy the requirement. Four possible models were investigated. The first two, a scheduling-cost model and a linear programming model were rejected because an essential element, a measure of shipyard productivity, is not available. LMI does not believe the construction of a measure of productivity for detailed models is practicable for several reasons: (1) the nature of overhaul and repair work (that is, it is large and complex, few jobs recur regularly and, when they do, work content varies widely); (2) the many constraints on shipyard operation; and (3) the differences among the shipyards themselves. The 3rd and 4th models, total cost comparison and fixed cost analysis, assume invariant productivity. The total cost model was found to discriminate inadequately between costs of new construction in private and Naval shipyards. The difficulty in finding comparable work packages in overhaul and repair work, the primary mission of Naval shipyards, suggests that that model would be even less useful. The fixed cost analysis assumes that there are fixed costs of operating a shipyard that would be avoided by closing a yard. However, LMI can find little to support that assumption. There is no clear evidence that fixed costs are large enough to offset the costs of closing a yard.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 01, 1972
- Accession Number
- AD0892508
Entities
Organizations
- LMI