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Over the past several decades, increases in acquisition costs for U.S. Navy combatants have outpaced the rate of inflation. To understand why, the authors of this book examined two principal source categories of ship cost escalation (economy-driven factors and customer-driven factors) and interviewed various shipbuilders. Based on their analysis, the authors propose some ways the Navy might reduce ship costs in the future.
Book Synopsis Why Has the Cost of Navy Ships Risen? by : Mark V. Arena
Download or read book Why Has the Cost of Navy Ships Risen? written by Mark V. Arena and published by Rand Corporation. This book was released on 2006 with total page 136 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past several decades, increases in acquisition costs for U.S. Navy combatants have outpaced the rate of inflation. To understand why, the authors of this book examined two principal source categories of ship cost escalation (economy-driven factors and customer-driven factors) and interviewed various shipbuilders. Based on their analysis, the authors propose some ways the Navy might reduce ship costs in the future.
Over the past four decades, the growth of U.S. Navy ship costs has exceeded the rate of inflation. This cost escalation concerns many in the Navy and the government. The real growth in Navy ship costs means that ships are becoming more expensive and outstripping the Navy's ability to pay for them. Given current budget constraints, the Navy is unlikely to see an increase in its shipbuilding budget. Therefore, unless some way is found to get more out of a fixed shipbuilding budget, ship cost escalation means that the size of the Navy will inevitably shrink. In fact, by some estimates, even boosting the shipbuilding budget from $10 billion annually to $12 billion would only help the Navy achieve a fleet of 260 ships by the year 2035 rather than the nearly 290 it now has (CBO, 2005). To better understand the magnitude of ship cost escalation and its implications, the Office of the Chief of Naval Operations asked the RAND Corporation to explore several questions. These include the magnitude of cost escalation, how ship cost escalation compares with other areas of the economy and other weapon systems, the sources of cost escalation, and what might be done to reduce or minimize ship cost escalation.
Book Synopsis Why Has the Cost of Navy Ships Risen? A Macroscopic Examination of the Trends in U.S. Naval Ship Costs Over the Past Several Decades by :
Download or read book Why Has the Cost of Navy Ships Risen? A Macroscopic Examination of the Trends in U.S. Naval Ship Costs Over the Past Several Decades written by and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past four decades, the growth of U.S. Navy ship costs has exceeded the rate of inflation. This cost escalation concerns many in the Navy and the government. The real growth in Navy ship costs means that ships are becoming more expensive and outstripping the Navy's ability to pay for them. Given current budget constraints, the Navy is unlikely to see an increase in its shipbuilding budget. Therefore, unless some way is found to get more out of a fixed shipbuilding budget, ship cost escalation means that the size of the Navy will inevitably shrink. In fact, by some estimates, even boosting the shipbuilding budget from $10 billion annually to $12 billion would only help the Navy achieve a fleet of 260 ships by the year 2035 rather than the nearly 290 it now has (CBO, 2005). To better understand the magnitude of ship cost escalation and its implications, the Office of the Chief of Naval Operations asked the RAND Corporation to explore several questions. These include the magnitude of cost escalation, how ship cost escalation compares with other areas of the economy and other weapon systems, the sources of cost escalation, and what might be done to reduce or minimize ship cost escalation.
The cost of U.S. Navy ships has risen faster than inflation indexes in recent decades. These cost increases are similar to those for other weapon systems and are driven in part by increasing complexity of ships. To reduce costs, the Navy may wish to consider stable or modular designs, slower increases in complexity, or mission-focused ships, or even to change how it purchases ships (e.g., make multiyear buys). Some manufacturing investments for greater efficiency in production can help reduce costs as well.
Book Synopsis Why Have Navy Ship Costs Risen?. by :
Download or read book Why Have Navy Ship Costs Risen?. written by and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The cost of U.S. Navy ships has risen faster than inflation indexes in recent decades. These cost increases are similar to those for other weapon systems and are driven in part by increasing complexity of ships. To reduce costs, the Navy may wish to consider stable or modular designs, slower increases in complexity, or mission-focused ships, or even to change how it purchases ships (e.g., make multiyear buys). Some manufacturing investments for greater efficiency in production can help reduce costs as well.
Book Synopsis Navy Maintenance by : United States. General Accounting Office
Download or read book Navy Maintenance written by United States. General Accounting Office and published by . This book was released on 1986 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Since the end of the Cold War, the perceived need for Navy ships has dropped, and so the shipbuilding budget has dropped. Seemingly coincidental with this budgetary pressure, and perversely aggravating the problem, ship costs began to rise steeply. We will set aside that ships have grown in weight by about three percent per year since World War II and that ever- more weapon systems are being put into them, and confine ourselves to discussions of costs rising for ships beyond the increase in content. We will also set aside rises due to commodity prices and inflation and that fewer ships, divided among a fixed industrial base, reduce the base for overhead and reduce opportunity for the effects of quantity-driven learning; these effects are well understood, and yet cost growth in ships exceeds that which they explain. This paper will show two additional effects, each of which causes ship direct labor to rise in a way that has never been adequately modeled. The paper will demonstrate, via a statistically significant model, cost growth both from loss of learning due to increased time between ship starts as well as from the lessening of efficiency due to inexperienced labor caused by fluctuating demand.
Book Synopsis An Enterprise Model of Rising Ship Costs: Loss of Learning Due to Time Between Ships and Labor Force Instability by :
Download or read book An Enterprise Model of Rising Ship Costs: Loss of Learning Due to Time Between Ships and Labor Force Instability written by and published by . This book was released on 2007 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the end of the Cold War, the perceived need for Navy ships has dropped, and so the shipbuilding budget has dropped. Seemingly coincidental with this budgetary pressure, and perversely aggravating the problem, ship costs began to rise steeply. We will set aside that ships have grown in weight by about three percent per year since World War II and that ever- more weapon systems are being put into them, and confine ourselves to discussions of costs rising for ships beyond the increase in content. We will also set aside rises due to commodity prices and inflation and that fewer ships, divided among a fixed industrial base, reduce the base for overhead and reduce opportunity for the effects of quantity-driven learning; these effects are well understood, and yet cost growth in ships exceeds that which they explain. This paper will show two additional effects, each of which causes ship direct labor to rise in a way that has never been adequately modeled. The paper will demonstrate, via a statistically significant model, cost growth both from loss of learning due to increased time between ship starts as well as from the lessening of efficiency due to inexperienced labor caused by fluctuating demand.
Book Synopsis Navy Has Opportunities to Reduce Ship Overhaul Costs by : United States. General Accounting Office
Download or read book Navy Has Opportunities to Reduce Ship Overhaul Costs written by United States. General Accounting Office and published by . This book was released on 1980 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:
This is a print on demand edition of a hard to find publication. Contents: (1) Introduction; (2) Background: Proposed 313-Ship Fleet; FY 2010 Shipbuilding Request; (3) Oversight Issues for Congress: Adequacy of Proposed 313-Ship Fleet: Adequacy of Shipbuilding Plan for Maintaining 313 Ships; Shortfalls Relative to 313-Ship Goals; Affordability of Shipbuilding Plan; (4) Legislative Activity for FY 2010: FY 2010 Defense Authorization Act; FY 2010 DoD Appropriations Act; Resolution Directing Submission of FY 2010 30-Year Shipbuilding Plan; Legislation on Individual Shipbuilding Programs. Appendixes: (A) December 2009 Press Reports About Draft FY 2011 30-Year Shipbuilding Plan; (B) Adequacy of Planned 313-Ship Fleet; (C) Size of the Navy and Navy Shipbuilding Rate. Charts and tables.
Book Synopsis Navy Force Structure and Shipbuilding Plans by : Ronald O'Rourke
Download or read book Navy Force Structure and Shipbuilding Plans written by Ronald O'Rourke and published by DIANE Publishing. This book was released on 2011 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a print on demand edition of a hard to find publication. Contents: (1) Introduction; (2) Background: Proposed 313-Ship Fleet; FY 2010 Shipbuilding Request; (3) Oversight Issues for Congress: Adequacy of Proposed 313-Ship Fleet: Adequacy of Shipbuilding Plan for Maintaining 313 Ships; Shortfalls Relative to 313-Ship Goals; Affordability of Shipbuilding Plan; (4) Legislative Activity for FY 2010: FY 2010 Defense Authorization Act; FY 2010 DoD Appropriations Act; Resolution Directing Submission of FY 2010 30-Year Shipbuilding Plan; Legislation on Individual Shipbuilding Programs. Appendixes: (A) December 2009 Press Reports About Draft FY 2011 30-Year Shipbuilding Plan; (B) Adequacy of Planned 313-Ship Fleet; (C) Size of the Navy and Navy Shipbuilding Rate. Charts and tables.
Discusses the U.S. Navy¿s proposed FY 2010 budget requests funding for eight new Navy ships. This total includes two relatively expensive, high-capability combatant ships (a Virginia-class attack submarine and a DDG-51 class Aegis destroyer) and six relatively inexpensive ships (three Littoral Combat Ships [LCSs], two TAKE-1 auxiliary dry cargo ships, and one Joint High Speed Vessel [JHSV]). Concerns about the Navy¿s prospective ability to afford its long-range shipbuilding plan, combined with year-to-year changes in Navy shipbuilding plans and significant cost growth and other problems in building certain new Navy ships, have led to concerns about the status of Navy shipbuilding and the potential future size and capabilities of the fleet. Illus.
Book Synopsis Navy Force Structure and Shipbuilding Plans by : Ronald O'Rourke
Download or read book Navy Force Structure and Shipbuilding Plans written by Ronald O'Rourke and published by DIANE Publishing. This book was released on 2010-03 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: Discusses the U.S. Navy¿s proposed FY 2010 budget requests funding for eight new Navy ships. This total includes two relatively expensive, high-capability combatant ships (a Virginia-class attack submarine and a DDG-51 class Aegis destroyer) and six relatively inexpensive ships (three Littoral Combat Ships [LCSs], two TAKE-1 auxiliary dry cargo ships, and one Joint High Speed Vessel [JHSV]). Concerns about the Navy¿s prospective ability to afford its long-range shipbuilding plan, combined with year-to-year changes in Navy shipbuilding plans and significant cost growth and other problems in building certain new Navy ships, have led to concerns about the status of Navy shipbuilding and the potential future size and capabilities of the fleet. Illus.
Book Synopsis Navy Contracting by : United States. General Accounting Office
Download or read book Navy Contracting written by United States. General Accounting Office and published by . This book was released on 1992 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Building a 600-ship Navy by : Peter T. Tarpgaard
Download or read book Building a 600-ship Navy written by Peter T. Tarpgaard and published by . This book was released on 1982 with total page 148 pages. Available in PDF, EPUB and Kindle. Book excerpt:
