An Activity Based Costing Analysis of the Department of the Navy's Enlisted Detailing Process
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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The Navy Personnel Command assigns over 100,000 Sailors annually utilizing in excess of 200 Detailers. Negotiations commence between Sailor and Detailer via telephone or e-mail approximately nine months prior to the Sailors expected rotation date from their current assignment. One method to examine where inefficiencies could exist in a process is to conduct an Activity Based Costing ABC study. The Activity Based Costing technique measures the cost of specific activities performed by an organization in producing a product or service. This thesis examines the detailing activities of the Administrative, Deck and Supply Rating Branch at the Navy Personnel Command in Millington, Tennessee and assigns relevant costs to the activities performed by a Detailer when assigning Sailors to their next duty station. The findings of the analysis are that approximately 75 percent of a Detailers available time is used in direct or indirect detailing activities. Depending on the paygrade of the Detailer, this equates to an annualized cost between 33,112.76 and 47,853.70 per Detailer. The Detailer spends 25 percent of their time in non-detailing related activities that equates to an annualized cost between 10,755.10 and 15,519.55 per Detailer.
- Economics and Cost Analysis
- Military Forces and Organizations