2001 Lenhardt & Colton, LLCSlide 1

Mn/DOT ABC Modeling

Linking Program Support with District Models

Prepared bySteve Colton, Lenhardt & Colton, LLC

January 26, 2001

2001 Lenhardt & Colton, LLCSlide 2

What is Linking?

A means of communicating between Program Support Office models and District models that

Allows demands to flow “up,” from the District models to Program Support, and

Allows dollars to flow “down,” from the Program Support models to the Districts.

Answers the following questions: What are the demands placed on Program Support resources

by the Districts? What are the costs of the Program Support services provided

to the Districts?

2001 Lenhardt & Colton, LLCSlide 3

The Districts

In Visual Terms

Program Support

Demands

Outputs& Costs

2001 Lenhardt & Colton, LLCSlide 4

The Districts

The Issue is Translation (Factoring) How and in Which Model

Program Support

Demands

Outputs& Costs

How many Program Support Outputs EQUAL

the District Demands?

2001 Lenhardt & Colton, LLCSlide 5

The Textbook SolutionEvery PSG Demand is a District Supply

Land Mgmt Model Activity output provided to the

Districts is a normalized Acquired Parcel

Unit of measure is the number of (n) Acquired Parcels

District Model Demand placed on OLM

Activity is XXX Unit of measure is YYY

Factor* = # of (n) Acquired Parcels # of XXX measured in YYY

*At some level in the District Model

2001 Lenhardt & Colton, LLCSlide 6

The Textbook Breaks Down

There are two different situations Program Support & District have similar capability—

Therefore Program Support does only some of District work Program Support has unique capability

Therefore Program Support does all of District work District Models designed to manage all work by

hours not by outputs (External resources are considered labor resources)

Program Support effort by activity is relatively small compared to other district costs

2001 Lenhardt & Colton, LLCSlide 7

The Districts

The Answer is Service Agreements

Program Support

Demands

Outputs& Costs

Service Agreements

2001 Lenhardt & Colton, LLCSlide 8

The Service Agreement CalculationOffice of Land Management Example

ActivityOutput Volume Measure

$'s perOutput

# of Outputs

Demanded

Cost of Outputs

Demanded

Hours per

Output

Dollars per Hour

Demanded

Hours Demanded

Cost of Hours Demanded

OLM-2 Verify Control SurveysRecorded

Control Survey554$ 12.4 44.68$

OLM-3 Purchase/DeliverPhotogrammetric Maps

MMUs 162$ ??? ???

OLM-4 Purchase/DeliverAerial Photography

FlightStrip Miles

287$ 1.7 168.82$

OLM-5 Purchase Real EstateAcquiredParcels

4,180$ 95.5 43.77$

Grand Total

(1) FromDistrict Model

(8) To District Model

(2) Spread of projected hours demanded

estimated by District

(6) Hours actually demanded calculated by

Program Support

(3) Cost of projected hours demanded

calculated by Program Support

(7) Cost of actual hours demanded equals #4

(4) Actual work requests from

District to Program

Support are for outputs

(5) Cost of work actually

requested calculated by

Program Support