Analysis of Cost Growth at Naval Shipyards FY79-FY82

Abstract

In January, 1983, MATHTECH began an analysis of Navy Industrial Fund (NIF) Operating Support Costs for Naval Shipyards. Early in our discussions with Navy personnel, we learned that the shipyards were losing money. This study focuses on the concern regarding excessive cost growth, particularly overhead costs. For each of the eight shipyards, we analyzed the relationships and trends of direct and indirect costs and labor hours between FY79 and FY82. The Shipyard Financial and Operating (F&O) statements provide extensive data on overhead costs and were our primary data source. We began our analysis by examining shipyard cost composition and growth and found that most of the cost increases were attributable to labor increases. Then we discuss labor hour findings and review some workload indicators. The behavior of shipyard costs follows, and observations and conclusions are presented. More detailed explanations of labor hour and cost growth are addressed.

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Document Details

Document Type
Technical Report
Publication Date
Nov 01, 1983
Accession Number
ADA135646

Entities

People

  • E. Krochalis
  • J. Lobi
  • M. Curtin

Tags

Communities of Interest

  • Ground and Sea Platforms

DTIC Thesaurus Topics

  • Business Administration
  • Contracts
  • Data Processing
  • Indirect Costs
  • Maintenance Costs
  • Management Engineering
  • Management Personnel
  • Manufacturing
  • Materials
  • Money
  • Navy
  • Personnel Management
  • Plastic Explosives
  • Puget Sound
  • Regression Analysis
  • Second World War
  • Training

Readers

  • Economics
  • Life Cycle Cost Analysis
  • Naval Engineering and Maritime Security