TRANSPORTATION - RAIL, PLANNING ECONOMIC - ACCOUNTING

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600140282-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 8
• Document Creation Date: December 22, 2016
• Document Release Date: June 13, 2011
• Sequence Number: 282
• Publication Date: June 18, 1952
• Content Type: REPORT

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Comm/", CLaSSIFiCATION s-Ems'-C-R--E-T
?J$'OFICI ?I X CENTRAL EL IG~IVGE~ OCY
Transportat ion -? Rail, planning
Economic. - Accounting
Yill pOOUOT CONTAINS 6MPVM11aTiOO /1rtYTl*0 ENa HAVIa0A, OEMIn
O, %;C 011710 SIYTQS RITMIM 101 1011111$ 01 SSPIOMASI ACT SA
V. 1 C SI ANO /1.AS AMNI.OYI ITS TMAMSMISSIOM ON 7111 NYTSIAf,1
Oi ., entlmYIIIO NCOSON IS YNO.
WIMITS O~NT CA11', ? Y11lOOVCTION OF THIS TO#M IS 0000INITO0.
DATE DIST. J Jun 1952
NO. OF PAGES 8
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
AT(T''I: LE FROM r7,EC5 PERIODICAL ANALYZES
Y " . S 1' ILi A E N ' I " O F COST FIJW ID RAJIROAD TI PURT
The infcrmation in thi, report is taken from extracts from a book
by Oriotr, KolkuiLare vlastnich nakladu v zeleznicni doprave (Calcu-
lation cf Ccst4 in Railroad 'rransportation. pres1L' .bl~.a Russian
book orip,ina'ly which aPFes.red in a supplement to the Czech per-
iodical Cl /enove Zpravv?/
In the railroad transport fie.,d, at in any other sector of the fovie9'
economy, it it act poFSib_'e to evaluate total plan fulfillment merely by compar-
ing actual- and. p L.nned costs.
If volume of l.raffi7 has increased 1J percent over the amount planned, and
costs increased percent, this does not mean that the enterprise exceeded its
cost plan.
'.21>;e deareaae or increase in costs as compared vith the budget may indicate
loverbd or increased efficiency of operation, but it could also indicate lowered
or increased volume of traffic. Therefore, to evaluate coats correctly, the
budgetary amounts set aside for specific costs should be adjusted in direct ratio
to actual vol;uue, to give the proper basis for comparison as to fulfillment of
the cost plan.
Thus, if the planned operational cost of a railroad for a planned
8,800,000,000 ton--kilometers is 452.6 million rubles and the actual coat is 470
million rubles for the 9,500040,0007 ton-kilometers actually traveled, it would
be incorrect to state that the railroacA exceeded its cost plan by 17.4 million
rubles and that the cost per ton-kilometer Was 0.0515 ruble or 5..5 kopecks. The
9,600,000,000 ton-kilometers actually traveled, multiplied by the planned cost
of 5.15 kopecks per ton-kilometer, yield a total cost of 4y4 million rubles,
while actual costs were 470 million rubles, a saving of 24 million rubles.
CONPROL/TS OFFICIALS 0M;--
CLASSIFICATION S-s-C-S-E-T
STATE MY1 fia11e I u?-e7.??~L.....,
ARMY--- Atli ITT F61 I S - -~
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on
i
adjustment, the amount of fixed cost increases to 27.3 m million
percent of the total cost;, nni the variable costs decrease to 185._
rubles i 40.9 percent of total coct . As the result of increased traffic, the
variable costs increa-se as fol:ow
t
fore, ir. the annu P nlnctel repot of the railroad, solar za
anew: are. treated as fixed ,torte !ether than a., cps .ri,snt on volume. After. this
rubles 7
lli
t
,
in the cost. of amortara ac,c, ,s,x
cost of the fixed end tnvarisble program of maintenance of rolling stock. There-
i tton and mainten-
however, there will Ice no change, regard_esn o n..
;n- w:i" be the s amc- as in the plan) or in the
? -
The total costs which vou:_d result from increased volume of traffic on this
railroad are about 5-9.7 million rubles. These costa show up in running expenses;
v f i -eased or decreased traffic,
ra
how mush of it wa,s the direct result Of greater volume o
F or exampd.e, the fixed costs, i.e., those that remain static insofar as
volume of traffic ie concerned, of a given railroad are appraised as 207.6 mil-
lion r+ab:es and the variable ccst5 are estimated as 245 million rubles. In
this calculation the variable costs include maintenance of locomotives, main-
a ,. .,.7 reci ation of amortization O
nui ~~u ...~., .. e.. ..
teIl4nr=e and snri`i::. oVE'7 naali Of dep
equipment.
in operations:.
permanent installations, or whether it vas effected entirely because repair work
was omitted. Then, too, it is necessary to clarify the source of the saving, and
ffic
f t
be ascertainea WLECIiAG.i uaas.......ew....... ._- _._
annual overhaul of passenger cars took place; in other words, whether the saving
A.+rimeent to
Howrever, to evaluate this saving in operational costs intelligently, it must
___ ve,.a? n.,rrnn+ ,and whether
om
of 170 million rubles, divided by the 9,600,000,000 on-
results in 4.9 kopecks per ton-kilometer, which, compared with the planned cost
of 5.15 kopecks per ton-kilometer, shows a saving of 0.25 kopeck per ton-
kiiometer
s-E-R-E-r
This lowered operational cost can be stated in another way. The actual cost
eters traveled
t kil
3 x 9~6G~ :202 mil:: ion .etbles
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Thus, ce listed on the basis of planned cost per ton-kilometer, the actual
cost of the irr:ea_ed v^:.ice of traffic ?'-+ith oboervance of all quality indexes)
amounted to ociy t69.' mil.:; or. rubles, and, otmil=lion h r conditions remaining un-
changed, there ass an actual a`iraz
in eveduatipg the influence of Plan fulfillment on costs, it is necessary
to analyze the conditions under which transport was effected. Of prime im-
portance is the freight?.?rar park available to the railroad. It is necessary to
scrutinize the schievement.s of a. railroad which exceeded the plan for freight-
car turnaround time, or vhich exceeded the plan for collecting surplus rolling
stock, without speeding up the freight -car turnaround time.
After determining the amo?.ict by which the running expenses increased be-
cause of greater volume, it would to expedient to ascertain what influence on
the amount of operational costs was exerted by the fulfillment of qualitative
indexes, euch as utilization of transportation equipment loaf per axle, opro-
f
portion of emp`.iea, gross weight of train, percentage of auxiliary trips
locomotives, etc.
Uti..ll.zation of transportat;.nn equipment and its influence on actual costs
vary with the technical. equipment, of the track, density of traffic, number of
stations and junrtions. power of locomotives, and climatic conditions. Hovevar,
as there is little variation among the different railroads operating, the fol-
lovtng furmula may be used throughout the railroad net.
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Variations in Costs
(in percent, when absolute indexes of rolling-stock utilization vary one percent)
Total
Costs
Freight
Costs
Passenger-
Traffic
Costs.
Dynamic weight per freight-car axle
??-
0.23
Percentage of empties carried, as compared
with loaded cars
--
0.09
Gross weight of freight train
--
0.25
Percentage Of auxi?iary locomotive travel
Number of pa. sengera per axle
0.20
--
-
Passenger trains made up
--
--
Other traffic conditions will also be reflected in cost calculations. For
exaaap?.e, if the :Tabor cost of freight-train personnel has been budgeted as
5,280,000 rubles fora gross train weight of 1,310 tons and the actual gross
weight was ',350 tons? the following formula will express the true ratio-
F30,35? Ala ' 5,::20,000 rubles
Thus, the increased gross weight of trains has decreased the actual coat of
operation by 160,000 rubles.
An important influence on costs is a change in norms for labor, materials,
fuel, and electric power, in the case of a transportation unit as well as of
permanent instal.lat ien>.
The following fern will be u-eful in making further analyses.
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Indexes Unit
1. volume of traffic
ton-km Million
dependent on
number of peo-
ple employed Persons
dependent on
average monthly
wage Rubles
Actual Actual
Costs Coats
Present Planned Preceding,
Period Cost Period
Current
in Percent
plan of Prior
Flalfillment Period
,~c_ole num blank in origin+&7
b. Fuel for loco-
motives per
10,000 gross
ton-km
c. Electric motive
paver for trains Million rubles
Gross ton-km
d. Average cost of
reps of trane-
Po tion units Million rubles
Locomotives
Freight cars
rr n
rization
3~ Actual cost of ton-km
traveled Kopecks
4. Ton-km traveled
per iorke. Thousands
5. traiel 4f line Km
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which class of costs was responsible for the increase or decrease in actual ex-
penditures.
In s,nslyzirg the wage fund,. it is necessary to, study the, fuif illment of the
productivity plan, as determined by the number of ton-kilometers traveled per
productivity influences costs mainly because labor costs, for both blue- and
white-collar workers, are proportionately lowered as productivity increases.
Productivity in railroad transport has tripled since the October Revolution.
The productivity of workers in various categories is measured by different
relative number of- train-kilometers traveled per crew; productivity of the engine
crew, by the number of kilometers traveled by the locomotives; of car-maintenance
hours per 1,000 kilometers traveled by the car, etc.
In analyzing productivity, special attention should be paid to Stakhano-
of machines and eguaipment, etc.
equipment damaged by accidents, carelessness, etc.
the train kilometer. The number of trains determines the cost ratio for wages
of train crew and lighting of train signals. The "time-assembly" index
determines the cost of personnel employed in the yards classifying trains.
In the ic:omotive branch the :,umber of gross ton-kilometers traveled
determines the cost ratio of fuel used for mechanics' wages, maintenance,
and greasing of locomotives.
In the car service the basis. index is the car-axle--kilometer ratio and also
greasing, and servicing of cars; the latter determines the wages paid to crews.
In analyzing freight-car costs, the turnaround time on the individual
railroad only is considered, while the turnaround time of passenger cars is
all passenger train crews, as well as of service , ;d cleaning personnel.
The analysis of electrified roads and trains follows the same basic
A sample analysis of fuels and loads of locomotive.. per 10,000 gross ton-
Gross ton-kilometers (in miliiovs;
Freight and otter revenue traffic 2,800
Passenger traffic 7a"
Total 3,500
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Planned Actual
2,100
1,100
one- fay27 trip 200 199
,las,ification with yard locomotives 400 401
Other movements 300
Total 4,000 4,149
Use of fuel per 10,000 gross ton-kilometers in freight and passenger traffic
Locomotive-kilometers (in thousands)
Freight trairaa .2,C00
Passenger trains 1,000
0,8
1
Feel use per hour of id.e time, o~.om 38
UP kg,l
1,470
,ros weight of freight train (tons) 1,400
5n
Use of fuel, freight and passenger (kg)
Use of fuel, freight only (kg) 229
275
Use of fuel, passenger only `kg)
Fuel use pe:? .00 locomotive--Km, on-trip (tors )
Fuel ue p,,.,,: 100 locomotive-km, in cla3sification (tons) 1.2
otives with steam
100 100
In this example, the actual average temperature for the year was 3 degrees
centigrade, vhnreas the plan assumed 5 degrees mean temperature. The fuel used
for locomotives contained !5.14, r r.cent less ash than planned. In the year
mentioned there were x,000 instances of lowered travel speed due to defective
track and 300 :rescheduled stops.
The f c-m,?=t : :rhich follcwa show the effect of individual factors.
1. Gross veizht of trains as planned was 1,400 t':ns and actual weight was
1,L70 tens. Hence t 470___ x,422 x 100 - ? percent
Since every one-percent. increase in train weight lowers the fuel-
consampticiz vatic by 0.+r p::rce,t, 5 x 0.4 . 2 percent
The specifle weight of ton-kilometers traveled in freight and ot'rer
revenue traffic is, ' 01900 x 100 :- 81 pee:ent
3,62
The ratio expressing fuel cost in loth classes of traffic is lowered
as follows: 250 x 2 x 0.81 kilograms
l0C
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6n. mF,.. Irk'; . t n ps~
11, 500, the saving is 1.5 x 111,500, or 17,300 hours.
2. T'.xrnaround time of locomotives in freight traffic was below the plan
by 20 - 18.5 or 1.5 hours. Since the number of locomotives is 2,100,000 g,000=
200
3. The movement of empties has been decreased by 3 percent. Since one
percent of this decrease results in an approximate fuel saving of 0.25 percent,
the i'orsr1a is 0 25 x 3 0.75 ,percent. However, in both kinds of traffic the
lowered fuel -onsumption is 0.75 x 0.81 0.61 percent or 250 x 0.61 = 1.5 kilo-
1,000
ton?-kilometers, 65000 x 10000 1.7 kilograms.
820,000,000
fuel costs may be expressed as 3,8_x 27,300 d 658 tons, or, per 10,000 gross
4. The of fec.tr of decreased yard wore (classification, etc.) are computed
gr aams ,
Act'lal:iy, only 4 -:, 00 in-omotive-kilometers were necessary; therefore, 435,000 -
401,0t'KD - %'- 0'~1 Y_i'ome~.er . Since 1.2 tons of fuel are necessary for each 100.
kilometers, the resultant economy amounts to 1.2 x 34,0 n 408 tons of fuel per
The plan cal-5 for 400,00.0 114 kilometers of .yard work per million
10,000 g`c=: to '_.i om r.r_;, grid, 4.._088~,Q__ 7 xJASO 1.; k iogra.mr
3,-820,000,50n
' 00
x ..,.?^n J 4 ki_egram,
~~jop Jti1 rMJ
6 F_ann ci cesscnser traffic amounts to 70 (jYj _ 20 percent Lof all roil
traff A-uri rs