Guidelines for Evaluation of ITS Projects

1. Guidelines for Evaluation of ITS Projects Risto Kulmala VTT Communities and Infrastructure

2. Evaluation guidelines • Pre- and post-evaluation • Project description • Impact descriptions • Socio-economic analyses • incl. economic feasibility, impact analysis, feasibility assessment • Summary

4. Impacts A. TRAFFIC MANAGEMENT OPERATIONS B. TARGET OF IMPACTS C. MAIN IMPACTS D. TRANSPORT POLICY OBJECTIVES 1. INFORMATION SERVICES (INF) 2. DEMAND MANAGEMENT (DEM) 4. FLEET AND TRANSPORT MANAGEMENT (F) 5. INCIDENT MANAGEMENT (INC) 6. DRIVER SUPPORT FUNCTIONS (DRI) 7. ENFORCEMENT (E) 8. DATA COLLECTION AND MANAGEMENT (CM) 1. TRANSPORT DEMAND 2. TRAVEL TIMING 3. MODEL CHOICE 6. TRANSPORT SYSTEM MANAGEMENT 1. NETWORK AND ITS COSTS 2. FLEET AND ITS COSTS 3. QUALITY AND ACCESSIBILITY OF SERVICES 5. TRAFFIC SAFETY 6. NOISE, EMISSIONS AND ENERGY 7. VALUATIONS, COMFORT 3. REGIONAL EQUALITY 4. SOCIAL EQUALITY 6. MIN. DISBENEFIT TO ENVIRONMENT 7. MIN. USE OF NATURAL RESOURCES 8. ADAPTATION TO EXISTING SYSTEM 1. SOCIAL ECONOMY 2. PRIVATE ECONOMY 4. ROUTE CHOICE 5. VEHICLE, TRAFFIC BEHAVIOUR 3. TRAFFIC CONTROL (C) 5. MIN. DISBENEFIT TO PEOPLE 4. TIME AND ITS PREDICTABILITY 5. TRAFFIC SAFETY

5. Impacts

6. Checklists • Indicators for impacts on • network and its costs • fleet and its costs • accessibility • time and predictability • safety • noise, emissions, energy • valuations and comfort

7. Indicators - example

8. Study design

9. Logistical processes

10. ORDER/DELIVERY PROCESS ANALYSIS FUNCTION ANALYSIS IMPACT ANALYSES IMPACTS ON PUBLIC ECONOMY • QUALITATIVE IMPACTS • Availability • Lead time • Delivery accuracy • Flexibility of delivery time • Flexibility of mode of delivery • Reliability of delivery (amount and quality) • Delivery control • ECONOMIC IMPACTS • Net sales • Variable costs • Fixed costs • Depreciation • Fixed assets • Current assets • Financial assets YHTALI DETAILS OF FINANCIAL STATEMENTS IMPACTS PROCESSED BY THE DU PONT MODEL INDIRECT ECONOMIC IMPACTS ECONOMIC AND QUALITATIVE IMPACTS ON OTHER EVALUATION TARGETS FEASIBILITY ASSESSMENT

11. Gross profit Net sales Operating profit Operating profit before depreciation –MINUS –MINUS Profit percentage –MINUS % * 100DIVIDED Fixed costs Variable costs Net sales Depre-ciation • Materials • Personnel costs • Supplies • Tools • Waste • Supervision • Maintenance • Quality control • Acquisition • Inventory • Transport • Rents • Insurance • Leasing costs • Development • Marketing • Management • Amount • Price • Sales terms • Delivery costs • Quality • Service • Machinery and equipments • Buildings • Building lots and land • Investments Retum of capital XTIMES Net sales Financial assets Current assets Fixed assets Capital turnover +PLUS +PLUS %DIVIDED • Trade receivables • Loan receivables • Cash assets • Deposits • Advance receivables • Primary goods • Substitute parts • Fitment • Semi-manu-factured goods • Goods in production • Land • Buildings • Machinery and equipment • Securities Total equity

12. Socio-economic analyses • Profitability analysis • Private economy • Cost-benefit analysis • Multicriteria analysis • Impact analysis • Feasibility analysis

13. Feasibility analysis • Market assessment • Technical feasibility • Technical evaluation • Financial issues • Legal issues • Institutional issues

14. Checklists - example

15. Example evaluations • Traffic and road weather monitoring system • Port operations management system • Signal priorities for buses

16. Use of results • Product and system enhancement • System provider • Marketing • New innovations • R&D organisations • Industry • R&D needs

17. Use of results • Decisions on deployment • Road authorities • Cities, regions • Companies • Deployment strategies • System providers • Authorities, DOTs

18. Conclusions • Guidelines are being used • First results are promising • Need to develop further • changes in policy • changes in project evaluation • methods to assess the profitability of ITS systems