Trafikförvaltningen (TF) is responsible for the pre-studies, acquisition and operational follow up of all public transportation systems within the boundaries of Stockholm County. Political decisions in the early nineties moved the responsibility for operations of traffic systems to private operators. This was a quantum shift in acquisition policy.
In order to establish the necessary cost governance process a series of cost models to predict the cost of traffic production were developed for use in predicting acquisition and operational cost and to evaluate operator tender costs during acquisition.
The knowledge and competence in the use of such models gradually diminished as the organisation underwent several changes resulting in a bottle neck in the organisation. Operator business models also evolved over this period resulting in the need to modify the existing cost models to reflect the current acquisition environment.
- Dependable and durable model
- Adaptable for each traffic system
- Capable of modeling the contract life cycle
- Provided management perspective for cost versus revenue
- Collaborative endeavor
- Structured handover to ensure organisational capability
What did Syntell do?
Syntell was asked to review and analyse the requirements for cost models from an organisational perspective. This review highlighted the need to create a generic cost model that could be adapted to suit each type of traffic acquisition, and for the first time to model costs over a contract life cycle.
A generic model was created, agreed with TF, and base-lined as the source for future adaptations which were then used on acquisition projects. Further to this a set of training materials and user documentation was produced to help implement the model within the organisation. Syntell also produced a matrix that identified ownership and governance of each cost data element.
What added value did Syntell deliver?
A pragmatic and joint approach between Syntell and TF created a collaborative environment. Syntell’s expertise in life cycle management gave a new perspective to a known problem. Our engagement with acquisition projects subsequently validated the models on a case by case basis. Using the notion of system life cycle management also identified opportunities to capture in-service operational data thereby providing a rich source of modelling data. The training material allowed TF personnel to take ownership of the model and its use.
Competences we used in this case: