Analysis of the Cost Center Performance Measurement System.
Abstract
The Air Force Cost Center Performance Measurement System (CCPMS) was implemented to provide a means for measuring the productivity of cost centers. Before all commands could fully implement the program, the Air Force made the CCPS report, the heart of the CCPMS, optional and eventually cancelled the CCPMS. This research was to determine the extent that major commands discontinued use of the CCPS when made optional, to determine if some managers did not find the CCPs useful, and to determine if some managers used the CCPS for decision making. The researchers found that the majority of major commands were apparently undermotivated towards the CCPMS and dropped the optional CCPS. From the analysis of cost center manager questionnaires, the researchers concluded that cost center managers found the CCPS to be not useful because it was not meaningful at their responsibility level, the output measures (for most cost centers) were not useful descriptors of output, and many managers received other more useful reports that contained the same information. The researchers recommend that a new output measurement program be established to meet the individual needs of cost centers, reflect the actual cost center's productivity and only feedback information concerning controllable costs. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1977
- Accession Number
- ADA044099
Entities
People
- Finch M. Jones Jr
- Philip A. Covell
Organizations
- Air Force Institute of Technology