MIT1_258JS10_lec10

MIT1_258JS10_lec10 - COST ESTIMATION Outline 1. Why use a...

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Outline 1. hy use a Cost Model? Why use a Cost Model? 2. Conventional Model Types Fully Allocated Causal Factor Models Temporal Variation Models Incremental Fixed Variable Cost Models 3. New Approaches HASTUS - MACRO 1.258J/11.541J/ESD.226J Spring 2010, Nigel Wilson Lecture 10 1 COST ESTIMATION
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C Subs a ocat o a o u sd ct o s A. Predict cost change associated with a service change -- concerned with marginal (incremental) costs -- different results over different time periods -- utine performance monitoring/service policy triggers routine performance monitoring/service policy triggers B. Predict cost change associated with change in production process -- introduce part-time operators -- contract out maintenance work -- ontract out suburban routes contract out suburban routes -- new fare technology . ubsidy allocation among j g jurisdictions dy -- fairly allocate joint or overhead costs -- often critical to participation decision in regional transit uthority and even route level of service authority and even route level of service 1.258J/11.541J/ESD.226J Spring 2010, Nigel Wilson Lecture 10 2 Why Use a Cost Model? y
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Capital Costs: Vehicles Fixed facility construction -- track, garages, stations Other long term physical assets Operating Costs: Labor wages and benefits Materials and supplies Agency administration Other expenses incurred in operations 1.258J/11.541J/ESD.226J Spring 2010, Nigel Wilson Lecture 10 3 Classification of Transit System Expenses
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Modes Operating Expense (millions) Capital Expenses (millions) Bus 17,307.5 3,291.0 Heavy Rail 5,888.3 4,690.6 ommuter Rail Commuter Rail 014 7 4,014.7 446 4 2,446.4 Light Rail 1,169.5 3,041.7 Paratransit 4,420.8 747.7 Total 32,800.8 14,217.4 Source: APTA Fact Book 2009 for 2007 1.258J/11.541J/ESD.226J Spring 2010, Nigel Wilson Lecture 10 4 National Transit Profile (2007) ()
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(Milli Operating Expenses f D ll ) 2007 (Millions of Dollars) - 2007 Expense by Function Total Transit Agency Expenses Vehicle Operation 15,069.5 Vehicle Maintenance 5,801.3 Non-Vehicle Maintenance 3,062.5 eneral Administration General Administration ,599.6 4,599.6 Purchased Transportation 4,267.9 Total 32,800.8 Expense by Type Total Transit Agency Expenses Operators' salaries and wages 12,807.9 Fringe Benefits 8,915.5 Services 1,958.1 Materials and Supplies 3,754.2 Utilities 1,122.2 Casualty & Liability y y 792.9 Purchased Transportation 4,267.9 Other -817.9 Total Transit Agency Expenses 32,800.8 Source: APTA Fact Book 2009 for 2007 1.258J/11.541J/ESD.226J Spring 2010, Nigel Wilson Lecture 10 5
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A. Fully allocated causal factor models B. Temporal variation models C. Incremental fixed/variable cost models 1.258J/11.541J/ESD.226J Spring 2010, Nigel Wilson Lecture 10 6 Types of Cost Models yp
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teps: Steps: 1. Select causal factors: e.g. vehicle hours, vehicle miles, and peak vehicles.
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This note was uploaded on 12/06/2011 for the course ESD 11.380j taught by Professor Fredsalvucci during the Fall '02 term at MIT.

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MIT1_258JS10_lec10 - COST ESTIMATION Outline 1. Why use a...

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