A Methodological Approach for Conducting a Business Case Analysis for the Advanced Technology Ordnance Surveillance (ATOS) Advanced Concept Technology Demonstration (ACTD)
Abstract
The purpose of this thesis is to provide a methodological approach for conducting a Business Case Analysis (BCA) for the Advanced Technology Ordnance Surveillance (ATOS) Advanced Concept Technology Demonstration (ACTD). This study provides a methodology for comparing the cost savings over time of having an ATOS infrastructure in place at Navy Munitions Management locations compared to the base case of "as-is" inventory management. ATOS is a Radio Frequency Identification (RFID)-based automated system that provides a capability to collect environmental data in near real-time and supports munitions management tasks on stored munitions pallets. This type of data has never before being available and is critical for Ordnance Managers and warfighters in making more effective decisions about the shelf life and operational performance of individual munitions throughout their service life. ATOS is not meant to be a replacement for the status quo processes of Ordnance Management (OM). Instead, ATOS is meant to enhance many of the current processes and add additional capabilities and dimensions to OM. A Business Case Analysis for a notional site, using exemplar data sets indicates that with an initial investment of $1.3M, a Net Present Value (NPV) of $5.3M can be obtained over a 10-year period. The payback period is less than one year, and the Return on Investment is 214% or almost 11% annual, compounded ROI.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 2005
- Accession Number
- ADA443369
Entities
People
- Gadala E. Kratzer
Organizations
- Naval Postgraduate School