A methodological approach for conducting a Business Case Analysis for the Advanced Technology Ordnance Surveillance (ATOS) Advanced Concept Technology Demonstration (ACTD)

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 compares 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 making more precise 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 1.3 million dollars, a Net Present Value (NPV) of 5.3 million dollars 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.

Department dc:contributor.department

Operations Research

Grantor dc:publisher

Monterey California. Naval Postgraduate School

Year dc:date.issued

2005

Author dc:creator

• Kratzer, Gadala E.

Advisor dc:contributor.advisor

• Nussbaum, Dan

Handle dc:identifier.uri

https://hdl.handle.net/10945/1766

OAI identifier oai:identifier

oai:calhoun.nps.edu:10945/1766