The Department of Defense is likely to face years of declining resources as the U.S. government grapples with fiscal challenges. These challenges affect every account, including those associated with surface ship maintenance and operations. At the same time, there has been widespread concern that surface ship materiel readiness is declining due to a high pace of operations and a sense that there have been many instances of deferred maintenance. The need to balance fiscal reality and a continued need for ready ships is likely to be an ongoing challenge. At the request of the Assessment Division of the Office of the Chief of Naval Operations, this report: (1) determines the impact on long-term fleet readiness, Operational Availability (Ao), and Expected Service Life (ESL) caused by near-term reductions in Operations and Maintenance (O&M) accounts; (2) recommends potential strategies to minimize negative impacts to Ao and ESL and maintain the largest, most capable fleet possible; (3) develops a maintenance requirement concept, per ship class, that supports ESL, but allows for some risk within the maintenance strategy; and (4) defines the risks to Ao and ESL resulting from the new requirement. The methodology could be applicable to multiple ship classes.

The Department of the Navy wants to improve shore installation operations, readiness, and management by skillfully leveraging state-of-the-market technologies and business methods such as outsourcing, privatization, and partnerships with state and local governments, with a goal of reduced cost of infrastructure. For the Navy itself, where all forces float or fly, the shore establishment is synonymous with infrastructure, which includes "all activities that provide sup port or control of forces from fixed bases of operation."

The legendary New York Times bestselling tale of top-down change for anyone trying to navigate today's uncertain business seas. When Captain Abrashoff took over as commander of USS Benfold, it was like a business that had all the latest technology but only some of the productivity. Knowing that responsibility for improving performance rested with him, he realized he had to improve his own leadership skills before he could improve his ship. Within months, he created a crew of confident and inspired problem-solvers eager to take the initiative and responsibility for their actions. The slogan on board became "It's your ship," and Benfold was soon recognized far and wide as a model of naval efficiency. How did Abrashoff do it? Against the backdrop of today's United States Navy, Abrashoff shares his secrets of successful management including: See the ship through the eyes of the crew: By soliciting a sailor's suggestions, Abrashoff drastically reduced tedious chores that provided little additional value. Communicate, communicate, communicate: The more Abrashoff communicated the plan, the better the crew's performance. His crew eventually started calling him "Megaphone Mike," since they heard from him so often. Create discipline by focusing on purpose: Discipline skyrocketed when Abrashoff's crew believed that what they were doing was important. Listen aggressively: After learning that many sailors wanted to use the GI Bill, Abrashoff brought a test official aboard the ship-and held the SATs forty miles off the Iraqi coast. From achieving amazing cost savings to winning the highest gunnery score in the Pacific Fleet, Captain Abrashoff's extraordinary campaign sent shock waves through the U.S. Navy. It can help you change the course of your ship, no matter where your business battles are fought.

"RAND therefore investigated cost-effective workforce-management strategies, alternative workload allocations, and the relevant best practices of comparable organizations. The authors concluded that the Navy uses practices common in other organizations to manage workload variability and uncertainty. However, the Navy's workload forecasts have consistently underestimated the eventual demand on the shipyards. To accomplish the additional, unplanned work, the Navy has used overtime levels that significantly exceed cost-effective levels."-- P. [4] of cover.