Naval Aircraft Repair Organisation (Hansard, 17 December 1993)

§ Mr. Hanley

Responsibility for this matter falls to the chief executive of the Naval Aircraft Repair Organisation under its framework document. I have asked the chief executive to write to the hon. Member.

Letter from Captain D. Symonds to Dr. David Clark dated 16 December 1993:

1. In your Parliamentary Question to the Secretary of State for Defence, you asked about the measures used by the Naval Aircraft Repair Organisation (NARO) to assess efficiency, productivity, product costs and quality performance. Details of the measures are below:

(a) Efficiency is measured by comparing the time taken to complete the work with the Basic Time as defined in BS3138.

NARO Efficiency Index=[...]Measured Work Content [...]Measured Time Taken (Basic Time)

(b) Productivity is basically a measure of output per employee and is measured by:

Productivity=[...]Direct Output Units Achieved [...]Total Number of Employees (DOU)

where a DOU is a standard hour of work (as detailed in BS3138). (The Total Number of Employees does not include apprentices).

c. Product Cost is measured in 2 ways:

(1) Firstly

Cost per DOU=[...]Consumption Budget—Costs incurred by non NARO units [...]DOU

(2) Secondly, product cost where the full cost of an item including labour, overheads and material costs are deflated using HM Treasury GNP deflator index.

(d) Quality Performance is measured by reviewing the weighted number of Allied Quality Assurance Publication non-conformances over a period.

2. If I can provide any further details I will be more than happy to do so.