Navy Maintenance: Improved Labor Estimates Can Reduce Shipyard Costs: Nsiad-93-199

GAO reviewed the Navy's methods for managing and controlling direct labor costs at its naval shipyards, focusing on whether labor estimates: (1) for ship repairs were reliable and effective in helping managers to control labor costs; and (2) reflected the benefits from labor-saving improvements and new equipment.
GAO found that: (1) shipyard planners overestimate labor 3 to 23 percent per ship, which causes overstated repair prices, erroneous labor efficiency data, and overstaffing; (2) excessive labor estimates are caused by planners not consistently applying estimating policies and procedures, the lack of internal controls to ensure that labor estimates are properly developed and supported, and the failure to keep labor standards current; (3) the Naval Sea Systems Command (NAVSEA) has not fully implemented its initiatives to correct the problems; (4) although the shipyards have identified and implemented labor-saving and equipment improvements, the Navy does not ensure that the benefits from the improvements are incorporated into ship repair planning; (5) planners often base labor estimates on processes and equipment no longer used; and (6) the shipyards do not update labor standards to reflect new labor processes and equipment.

• Format: Paperback
• Language: English
• ISBN: 1287176267
• ISBN13: 9781287176268
• Release Date: May 2013
• Publisher: Bibliogov
• Length: 50 Pages
• Weight: 0.24 lbs.
• Dimensions: 0.1" x 7.4" x 9.7"