Performance Based Logistics (PBL) for the FA-18/S-3/P-3/C-2 Auxiliary Power Unit (APU) at Honeywell; An Applied Analysis
MBA Professional rept.
NAVAL POSTGRADUATE SCHOOL MONTEREY CA GRADUATE SCHOOL OF BUSINESS AND PUBLIC POLICY
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The purpose of this MBA project is to evaluate and assess the metrics, incentives and other terms and conditions of the Performance Based Logistics PBL contract between Naval Aviation Inventory Control Point NAVICP and Honeywell in support of FA-18S-3P-3C-2 Auxiliary Power Unit APU to determine if the contractual terms and conditions established are effective in facilitating and encouraging the full potential of PBL savings and improved performance. PBL is an acquisition reform initiative intended to improve weapon system logistics with the goals of 1 compressing the supply chain, 2 eliminating non-value added steps, 3 reducing total ownership costs, 4 improving weapon system readiness and reliability, and 5 reducing logistics footprint. An additional element of PBL is gain sharing, which ensures the contractors profit and the governments increased performance at a reduced cost. Based on the elements of PBL, the objectives of this project include 1 comparing the actionsactivitiesaccomplishments of the contract to the goals of PBL, 2 measure and appraise the attainment of those goals 3 provide information about the major factors causing the observed effects on the above, and 4 identify and analyze the metrics and incentives for their effectiveness in achieving the desired outcomes. In meeting the objectives of this report, our findings indicate that non-value added steps were eliminated, and there were potential reductions in the logistics footprint. On the other hand, the supply chain was not compressed aircraft maintenance costs did not decrease and more importantly, the APU reliability for the FA-18, S-3, and C-2 did not improve. Our research also determined that the reliability metric was inappropriate for measuring and tracking APU reliability improvements. Our report provides recommendations specific to the APU TLS contract and other recommendations for other PBL applications.
- Administration and Management
- Logistics, Military Facilities and Supplies