A STUDY ON OPERATING COST ASCERTAINMENT PROCESS

FOLLOWED BY BUS COMPANY.

INTRODUCTION ON OPERATING COST:-

The operating cost of a company refers to the expenses incurred in the day-to-day operations and
maintenance of its business. For a bus company like Bus Company Pointer in Kalyan, accurately
determining and managing operating costs is crucial for its profitability, sustainability, and
effective decision-making.

Bus Company Pointer has been a prominent player in the transportation industry in Kalyan for
several years. It has established itself as a reliable and efficient provider of bus services, catering
to the commuting needs of the local population. The company has built a strong reputation for its
punctuality, safety measures, and customer satisfaction.

In order to ensure the smooth functioning of its operations, Bus Company Pointer needs to have
a comprehensive understanding of its operating costs. This includes factors such as fuel
expenses, maintenance and repair costs, labor wages, insurance premiums, and other overhead
expenses. Accurate cost determination allows the company to effectively allocate its resources,
optimize its operations, and make informed decisions regarding pricing, route planning, and fleet
management.

However, determining operating costs can be a challenging task for bus companies like Bus
Company Pointer. Fluctuating fuel prices, which are influenced by global market trends and
geopolitical factors, can significantly impact the company's expenses. Maintenance expenses,
including regular servicing and repairs, can also vary depending on the age and condition of the
buses in the fleet. Labor costs, which include wages, benefits, and training, add another layer of
complexity to the cost ascertainment process.

In this study, we aim to examine the operating cost ascertainment process followed by Bus
Company Pointer in Kalyan. By analyzing the various factors that contribute to the company's
operating costs, we seek to identify areas for improvement and suggest strategies for cost
reduction and efficiency enhancement. Ultimately, our findings will not only benefit Bus
Company Pointer but also provide insights for other bus companies in Kalyan and beyond.

INTRODUCTION TO BUS COMPANY:-

A bus company, such as Bus Company Pointer in Kalyan, is a transportation service provider
that operates a fleet of buses to cater to the commuting needs of the local population. These
companies play a crucial role in providing affordable and convenient transportation options for
individuals who rely on public transport.
Bus companies are responsible for ensuring the smooth and efficient operation of their services.
This includes managing various aspects such as route planning, scheduling, maintenance, and
customer service. They need to maintain a reliable and well-maintained fleet of buses to ensure
the safety and satisfaction of their passengers.

In addition to providing transportation services, bus companies also contribute to the local
economy by creating job opportunities for drivers, mechanics, and administrative staff. They also
generate revenue through ticket sales and other sources, which helps sustain their operations and
cover their expenses.

Operating a bus company involves significant costs that need to be carefully managed to ensure
profitability and sustainability. These costs include fuel expenses, maintenance and repair costs,
labor wages, insurance premiums, and overhead expenses such as office rent and administrative
expenses. Managing these costs effectively is crucial for the financial health of the company.

Bus companies also face various challenges in their operations. Fluctuating fuel prices can
significantly impact their expenses, making it important to monitor and plan for these
fluctuations. Maintenance and repair costs can vary depending on the condition of the buses in
the fleet, requiring regular inspections and timely repairs. Labor costs, including wages and
benefits, add another layer of complexity to the cost management process.

In summary, bus companies like Bus Company Pointer in Kalyan play a vital role in providing
transportation services to the local population. Managing operating costs is crucial for their
profitability and sustainability. By accurately determining and effectively managing these costs,
bus companies can optimize their operations, make informed decisions, and provide reliable and
efficient services to their customers.

BACKGROUND OF OPERATING COST:-

Operating costs refer to the expenses incurred by a business in its day-to-day operations. For bus
companies, these costs include items such as fuel, maintenance and repairs, labor, insurance, and
administrative expenses.

Bus companies have been in operation for centuries, with the earliest forms of public
transportation being horse-drawn omnibuses in the early 19th century. These early bus services
were privately owned and operated, with relatively low operating costs. The main expenses
included the cost of horses, drivers, and general maintenance.

As cities grew and urbanization increased, the demand for public transportation also grew. This
led to the transition from horse-drawn to motorized buses in the late 19th and early 20th
centuries. While motorized buses brought about new operating costs, such as fuel expenses and
vehicle maintenance, they were still seen as a more affordable option compared to trains or
trams.

However, as the popularity of bus services grew, so did the operating expenses. The introduction
of diesel engines in the mid-20th century brought about higher fuel costs for bus companies.
Diesel fuel became the standard choice for buses due to its efficiency and lower emissions
compared to gasoline. However, fluctuations in fuel prices became a significant challenge for
bus companies, impacting their operating budgets.

Maintenance and repair costs also increased as buses became more technologically advanced.
Modern buses are equipped with various systems and components that require specialized
knowledge and equipment for servicing. This led to the need for skilled mechanics and increased
expenses for spare parts and repairs.

Labor costs have always been a significant factor in operating expenses for bus companies. Bus
drivers, mechanics, and administrative staff all require fair compensation and benefits. As labor
laws and regulations evolved, bus companies had to adapt to higher wage standards and provide
better working conditions.

In recent years, bus companies have faced additional challenges related to environmental
concerns. The need for cleaner and more sustainable transportation has led to the adoption of
alternative fuels and technologies, such as electric buses. While these options may help reduce
long-term operating costs, the initial investment and infrastructure requirements can be
substantial.

Overall, the history of operating costs for bus companies reflects the changing landscape of
transportation. From the early days of horse-drawn omnibuses to the introduction of electric
buses, bus companies have continuously adapted to meet the evolving needs of cities and towns
while managing their operating expenses effectively.

HISTORY OF OPERATING COST:-

The history of operating costs for bus companies can be traced back to the early days of public
transportation. As cities and towns grew, the need for reliable and efficient transportation options
became apparent. Bus companies emerged as a solution to meet this demand.

In the early years, operating costs were relatively low compared to today's standards. Buses were
simpler in design and required less maintenance. Fuel prices were also relatively stable, allowing
companies to plan their expenses more easily.

However, as technology advanced and buses became more sophisticated, operating costs began
to increase. The introduction of diesel engines, for example, brought higher fuel expenses.
Maintenance and repair costs also rose as buses became more complex and required specialized
knowledge and equipment for servicing.

Over time, labor costs also became a significant factor in operating expenses. Bus drivers,
mechanics, and administrative staff all require fair compensation and benefits, adding to the
overall cost of running a bus company.

In recent years, fluctuating fuel prices have presented a challenge for bus companies. Sudden
spikes in fuel costs can put significant strain on their budgets, requiring careful monitoring and
planning.

Additionally, the need for environmentally friendly practices has led to the adoption of
alternative fuels and technologies, such as electric buses. While these options may help reduce
long-term operating costs, the initial investment can be substantial.

Overall, the history of operating costs for bus companies reflects the evolving nature of the
industry. As technology advances and societal needs change, bus companies must adapt and find
ways to manage their expenses effectively while providing reliable and efficient transportation
services.

HISTORY OF BUS COMPANY:-

The history of bus companies dates back to the early 19th century when horse-drawn omnibuses
were introduced in cities like London and Paris. These early bus services were privately owned
and operated, and their operating costs were relatively low. The main expenses included the cost
of horses, drivers, and general maintenance.

As cities grew and urbanization increased, the demand for public transportation also grew. In the
late 19th and early 20th centuries, buses transitioned from horse-drawn to motorized vehicles.
This shift brought about new operating costs, such as fuel expenses and vehicle maintenance.

In the early years of motorized buses, operating costs were still relatively low compared to other
modes of transportation like trains or trams. Buses were seen as a more affordable option for
both operators and passengers. However, as the popularity of bus services grew, so did the
operating expenses.

The introduction of diesel engines in the mid-20th century brought about higher fuel costs for
bus companies. Diesel fuel became the standard choice for buses due to its efficiency and lower
emissions compared to gasoline. However, fluctuations in fuel prices became a significant
challenge for bus companies, impacting their operating budgets.
Maintenance and repair costs also increased as buses became more technologically advanced.
Modern buses are equipped with various systems and components that require specialized
knowledge and equipment for servicing. This led to the need for skilled mechanics and increased
expenses for spare parts and repairs.

Labor costs have always been a significant factor in operating expenses for bus companies. Bus
drivers, mechanics, and administrative staff all require fair compensation and benefits. As labor
laws and regulations evolved, bus companies had to adapt to higher wage standards and provide
better working conditions.

In recent years, bus companies have faced additional challenges related to environmental
concerns. The need for cleaner and more sustainable transportation has led to the adoption of
alternative fuels and technologies, such as electric buses. While these options may help reduce
long-term operating costs, the initial investment and infrastructure requirements can be
substantial.

Overall, the history of operating costs for bus companies reflects the changing landscape of
transportation. From the early days of horse-drawn omnibuses to the introduction of electric
buses, bus companies have continuously adapted to meet the evolving needs of cities and towns
while managing their operating expenses effectively.

RATIONAL STUDY OF OPERATING COST & BUS COMPANY:-

A rational study of operating costs for bus companies involves analyzing and understanding the
various components that contribute to these expenses. This includes:

1. Fuel costs: Examining the fuel consumption and efficiency of buses, as well as monitoring
fuel prices and exploring alternative fuel options to minimize costs.

2. Maintenance and repair costs: Assessing the condition of buses, implementing preventive
maintenance measures, and identifying cost-effective repair solutions.

3. Labor costs: Analyzing wage standards, benefits, and working conditions to ensure fair
compensation for employees while managing labor expenses efficiently.

4. Insurance costs: Evaluating insurance policies and coverage to find the most cost-effective
options that provide adequate protection for the bus company.

5. Administrative expenses: Reviewing administrative processes and identifying areas where

efficiency can be improved to reduce overhead costs.
6. Environmental considerations: Exploring environmentally friendly alternatives, such as
electric buses, and assessing the long-term cost savings and infrastructure requirements
associated with these technologies.

By conducting a rational study of operating costs, bus companies can identify areas of
improvement, implement cost-saving measures, and make informed decisions to optimize their
financial performance. This helps ensure the sustainability and profitability of the business while
providing reliable and affordable transportation services to the public.

A rational study of a bus company involves conducting a comprehensive analysis of its

operations and costs to make informed decisions and optimize financial performance. This study
includes examining various components that contribute to operating costs, such as fuel costs,
maintenance and repair costs, labor costs, insurance costs, administrative expenses, and
environmental considerations.

1. Fuel costs: The study involves analyzing the fuel consumption and efficiency of buses to
identify areas where fuel can be saved. It also includes monitoring fuel prices and exploring
alternative fuel options, such as biodiesel or natural gas, to minimize costs.

2. Maintenance and repair costs: Assessing the condition of buses is crucial to identify potential
issues and implement preventive maintenance measures. This helps reduce the frequency and
cost of repairs. Additionally, the study involves identifying cost-effective repair solutions, such
as using refurbished parts or outsourcing certain repairs.

3. Labor costs: Analyzing wage standards, benefits, and working conditions is essential to ensure
fair compensation for employees while managing labor expenses efficiently. This may involve
evaluating overtime policies, optimizing staffing levels, and implementing training programs to
improve employee productivity.

4. Insurance costs: Evaluating insurance policies and coverage options allows the bus company
to find the most cost-effective options that provide adequate protection. This may involve
negotiating rates with insurers or exploring bundled policies to reduce costs.

5. Administrative expenses: Reviewing administrative processes helps identify areas where

efficiency can be improved to reduce overhead costs. This may involve streamlining paperwork,
automating certain tasks, or implementing cost-saving measures in areas like procurement or
inventory management.

6. Environmental considerations: Exploring environmentally friendly alternatives, such as

electric buses, is becoming increasingly important for bus companies. The study involves
assessing the long-term cost savings and infrastructure requirements associated with these
technologies. It may also involve exploring government incentives or grants available for
adopting sustainable practices.

By conducting a rational study of operating costs, bus companies can identify areas of
improvement and implement cost-saving measures. This helps ensure the sustainability and
profitability of the business while providing reliable and affordable transportation services to the
public.

TYPES OF OPERATING COST IN BUS COMPANY:-

The types of operating costs in a bus company can include:

1. Fuel costs: The expenses associated with purchasing fuel for the buses.

2. Maintenance and repair costs: The costs of maintaining and repairing the buses, including
regular maintenance, repairs due to wear and tear, and unexpected breakdowns.

3. Labor costs: The expenses related to employing drivers, mechanics, and other staff members
involved in the operation of the bus company.

4. Insurance costs: The premiums paid for insurance coverage for the buses, drivers, and other
liabilities.

5. Administrative expenses: The costs associated with running the administrative functions of the
bus company, such as office rent, utilities, office supplies, and salaries of administrative staff.

6. Depreciation: The decrease in value of the buses over time due to wear and tear and aging.

7. License and permit fees: The costs of obtaining and renewing licenses and permits required to
operate a bus company.

8. Marketing and advertising expenses: The expenses incurred in promoting the bus company's
services and attracting customers.

9. Taxes: The taxes paid by the bus company, including income taxes, property taxes, and sales
taxes.

10. Miscellaneous expenses: Other miscellaneous costs that may arise in the operation of a bus
company, such as legal fees, training expenses, and fines or penalties.

By analyzing and managing these operating costs effectively, a bus company can optimize its
financial performance and ensure long-term sustainability.
FEATURES OF OPERATING COST IN BUS COMPANY:-
1. Variability: Operating costs in a bus company can vary based on factors such as fuel prices,
maintenance requirements, and labor rates. These costs can fluctuate over time, making it
important for the company to monitor and manage them effectively.

2. Direct and indirect costs: Operating costs can be categorized as either direct or indirect. Direct
costs, such as fuel and maintenance expenses, are directly tied to the operation of the buses.
Indirect costs, such as administrative expenses and insurance premiums, support the overall
operation but may not be directly linked to specific buses.

3. Cost control: Managing operating costs is crucial for a bus company to remain profitable. This
involves implementing cost control measures, such as optimizing fuel efficiency, conducting
regular maintenance to prevent costly repairs, and negotiating favorable contracts with suppliers.

4. Cost allocation: Some operating costs, such as labor and administrative expenses, may need to
be allocated across different departments or functions within the bus company. This requires
accurate cost allocation methods to ensure that each department bears its fair share of the costs.

5. Budgeting and forecasting: A bus company needs to develop budgets and forecasts for its
operating costs to plan and allocate resources effectively. This involves analyzing historical data,
considering market trends, and making informed projections about future costs.

6. Benchmarking: Comparing a bus company's operating costs to industry benchmarks can

provide insights into its cost competitiveness and identify areas for improvement. Benchmarking
can help the company set realistic cost targets and implement strategies to achieve them.

7. Continuous improvement: Operating costs should be regularly reviewed and analyzed to

identify opportunities for cost reduction and efficiency improvement. This can involve
implementing new technologies, streamlining processes, and seeking cost-saving initiatives.

Overall, effective management of operating costs is essential for a bus company to maintain
profitability, provide reliable services, and remain competitive in the transportation industry.

SCOPE OF OPERATING COST IN BUS COMPANY:-

The scope of operating costs in a bus company includes all expenses directly related to the
operation and maintenance of the buses, as well as indirect costs that support the overall
operation. This can include but is not limited to:

1. Fuel expenses: The cost of purchasing fuel to power the buses.

2. Maintenance and repair costs: Expenses associated with regular maintenance, repairs, and
replacements of bus parts and equipment.

3. Labor costs: Wages and benefits for bus drivers, mechanics, and other staff involved in the
operation and maintenance of the buses.

4. Insurance premiums: The cost of insuring the buses against accidents, liability, and other risks.

5. Administrative expenses: Overhead costs such as office rent, utilities, office supplies, and
salaries for administrative staff.

6. Depreciation: The gradual decrease in the value of the buses over time.

7. Licensing and permits: Fees for obtaining licenses, permits, and certifications required to
operate the buses legally.

8. Marketing and advertising expenses: Costs associated with promoting the bus company's
services and attracting customers.

9. Training and development: Expenses related to training programs for bus drivers and staff to
improve skills and knowledge.

10. Technology and software costs: Expenses for implementing and maintaining technology
solutions such as GPS tracking systems, ticketing systems, and fleet management software.

11. Taxes and regulatory fees: Payments to government authorities for taxes, fees, and
compliance with regulations specific to the transportation industry.

It is important for a bus company to carefully monitor and manage these operating costs to
ensure financial stability and profitability.

IMPORTANCE OF OPERATING COST IN BUS COMPANY:-

Operating costs are crucial for a bus company as they directly impact the company's financial
stability and profitability. Here are some reasons why operating costs are important:

1. Cost control: Monitoring and managing operating costs allows the bus company to identify
areas where expenses can be reduced or optimized. This helps in controlling costs and improving
overall financial performance.
2. Budgeting and planning: Understanding the operating costs helps in creating accurate budgets
and financial forecasts. This allows the bus company to plan effectively for future expenses and
make informed decisions regarding investments and expansion.

3. Pricing strategies: Operating costs play a significant role in determining the pricing of bus
services. By accurately calculating operating costs, the bus company can set competitive prices
that cover expenses and generate profits.

4. Profitability analysis: Tracking operating costs allows the bus company to assess its
profitability on a regular basis. By comparing revenues with operating expenses, the company
can identify areas where it is making a profit or incurring losses. This analysis helps in making
strategic decisions to improve profitability.

5. Efficiency improvements: Analyzing operating costs helps in identifying inefficiencies in the

bus company's operations. By addressing these inefficiencies, such as reducing fuel consumption
or optimizing maintenance schedules, the company can improve its overall efficiency and reduce
costs.

6. Financial stability: Managing operating costs is crucial for maintaining financial stability. By
controlling expenses and ensuring revenues exceed costs, the bus company can avoid financial
difficulties and maintain a healthy cash flow.

7. Competitive advantage: Operating costs can directly impact a bus company's competitiveness
in the market. By effectively managing costs, the company can offer competitive prices, invest in
better services or technology, and attract more customers.

Overall, understanding and managing operating costs is essential for a bus company to achieve
financial stability, profitability, and sustainable growth in a competitive market.

ADVANTAGES OF OPERATING COST IN BUS COMPANY:-

1. Improved resource allocation: An operating system helps in efficiently allocating resources
such as drivers, vehicles, and fuel. This ensures that the bus company utilizes its resources
effectively, minimizing wastage and reducing operating costs.

2. Streamlined operations: An operating system automates and streamlines various operational

processes such as scheduling, dispatching, and route planning. This improves efficiency, reduces
manual errors, and saves time and effort for the bus company.

3. Enhanced customer service: With an operating system, bus companies can provide real-time
information to customers regarding bus schedules, delays, and route changes. This improves
customer satisfaction and loyalty, leading to increased ridership and revenue.
4. Maintenance management: An operating system can track and manage maintenance schedules
for buses, ensuring regular servicing and repairs are conducted. This helps in preventing
breakdowns and prolonging the lifespan of the vehicles, ultimately reducing maintenance costs.

5. Data analysis and reporting: Operating systems generate comprehensive reports and analytics
on various aspects of bus operations, such as passenger counts, revenue, and fuel consumption.
This data helps in making informed decisions, identifying trends, and optimizing operations for
cost savings.

6. Safety and security: Operating systems can incorporate features such as GPS tracking and
surveillance cameras, which enhance the safety and security of passengers and employees. This
not only improves the overall reputation of the bus company but also reduces the risk of
accidents or incidents.

7. Integration with other systems: Operating systems can integrate with other systems such as
ticketing and payment platforms, enabling seamless transactions and reducing administrative
tasks. This improves efficiency and reduces the chances of errors or fraud.

Overall, an operating system provides numerous advantages to a bus company by improving

resource allocation, streamlining operations, enhancing customer service, and optimizing costs. It
helps in achieving operational excellence and staying competitive in the market.

DISADVANTAGES OF OPERATING COST IN BUS COMPANY:-

1. Initial cost and implementation: Implementing an operating system in a bus company can be
expensive, requiring investments in hardware, software, and training. This initial cost may be a
barrier for smaller bus companies with limited budgets.

2. Technical issues and downtime: Operating systems can sometimes experience technical issues
or downtime, which can disrupt bus operations and cause delays or cancellations. This can lead
to customer dissatisfaction and loss of revenue.

3. Learning curve and resistance to change: Introducing a new operating system may require
employees to learn new processes and adapt to changes in their workflow. Some employees may
resist these changes, leading to resistance and decreased productivity during the transition period.

4. Cybersecurity risks: Operating systems are vulnerable to cybersecurity threats such as hacking
or data breaches. Bus companies need to invest in robust security m easures to protect sensitive
information and prevent unauthorized access.
5. Dependency on technology: Relying heavily on an operating system means that any technical
issues or system failures can have a significant impact on bus operations. This dependency may
make the bus company more vulnerable to disruptions and may require backup systems or
contingency plans.

6. Maintenance and updates: Operating systems require regular maintenance and updates to
ensure optimal performance and security. This can be time-consuming and may require
additional resources or IT support.

7. Compatibility issues: Introducing a new operating system may result in compatibility issues
with existing hardware or software systems. This can lead to integration challenges and
additional costs for upgrading or replacing incompatible system.
8.Despite these disadvantages, the benefits of implementing an operating system in a bus
company generally outweigh the drawbacks. It is important for bus companies to carefully
evaluate their needs, budget, and resources before deciding to implement an operating system.

STATEMENT OF PROBLEM:-
The bus company grapples with a myriad of challenges in its operating cost

ascertainment process. At the core of the issue lies an inadequate system for tracking

and allocating expenses. The current approach is riddled with inefficiencies and lacks

transparency, making it difficult for the company to gain a precise understanding of its

operational costs.

One significant problem is the haphazard record-keeping system in place. Critical

expense data is often dispersed across various platforms and departments, leading to a

lack of cohesion and clarity in financial records. This fragmentation not only consumes

valuable time during the reconciliation process but also introduces the potential for

errors and discrepancies in cost calculations.

Moreover, the allocation of costs presents a formidable challenge. The company

struggles to establish a robust methodology for distributing expenses accurately across

different operational facets. This becomes particularly problematic when trying to

determine the true cost of specific routes or services, hindering the company's ability to

make informed decisions regarding pricing strategies or route optimization.

The absence of a standardized and transparent approach compounds these challenges.

The lack of clear guidelines and documentation regarding the cost ascertainment

process further muddles the financial landscape for the bus company. This opacity not

only affects internal decision-making but also poses a risk in terms of compliance and

accountability.

Additionally, the bus company faces difficulties in adapting its operating cost

ascertainment process to changes in the business environment. As the industry

evolves, new cost factors emerge, and the company must recalibrate its methods to

accurately reflect these shifts. The current inflexible system hinders the company's

agility in responding to dynamic market conditions, potentially impacting its

competitiveness.

In summary, the bus company's operating cost ascertainment process is beset by

challenges stemming from inefficient record-keeping, difficulties in cost allocation, a lack

of standardization, and an inability to adapt to changing business landscapes.

Addressing these issues is paramount for the company to gain a comprehensive and

accurate understanding of its operating costs, enabling informed decision-making and

sustainable financial practices.

NEED OF STUDY:-

Studying the operating cost ascertainment process of a bus company is essential for

several reasons. Firstly, it provides an opportunity to enhance financial transparency. By

scrutinizing the existing processes, the company can identify gaps and inefficiencies in
how operating costs are recorded and allocated, paving the way for a more transparent

and accurate financial reporting system.

Secondly, such a study is crucial for cost optimization. Understanding how costs are

distributed across various operational facets enables the company to pinpoint areas of

overspending or inefficiency. This insight empowers the company to implement targeted

cost-cutting measures or reallocate resources for maximum operational efficiency.

Thirdly, a detailed examination of the operating cost ascertainment process is

instrumental in improving decision-making. Accurate cost data is the bedrock for making

informed strategic decisions. Whether it's adjusting pricing strategies, optimizing routes,

or allocating resources more effectively, a thorough understanding of operating costs is

indispensable for steering the company in the right direction.

Furthermore, the study contributes to regulatory compliance. A robust and standardized

cost ascertainment process ensures that the company's financial practices align with

industry regulations and standards. This not only mitigates the risk of legal issues but

also enhances the company's reputation in the eyes of regulators, stakeholders, and the

public.

In the rapidly evolving landscape of the transportation industry, the need for adaptability

is paramount. Studying the operating cost ascertainment process allows the bus
company to assess its flexibility in responding to changes in the market, technology, or

regulatory environment. This adaptability is critical for staying competitive and resilient

in the face of industry dynamics.

In conclusion, a study on the operating cost ascertainment process of a bus company is

imperative for achieving financial transparency, optimizing costs, improving decision-

making, ensuring regulatory compliance, and enhancing adaptability. It serves as a

foundational step toward sustainable financial practices and long-term success in a

dynamic business environment.

RATIONAL OF STUDY:-

The study on the operating cost ascertainment process followed by a bus company is

motivated by a multifaceted rationale rooted in the critical significance of understanding,

optimizing, and effectively managing operational expenditures. This comprehensive

examination aims to address various challenges, enhance financial transparency, and

contribute to the overall efficiency and sustainability of the company.

1. Financial Transparency and Accountability

At the heart of the rationale lies the imperative to foster financial transparency and

accountability. The current operating cost ascertainment process may lack the clarity

and precision required for transparent financial reporting. In-depth scrutiny will identify

shortcomings in record-keeping, allocation methodologies, and documentation, laying

the groundwork for a more transparent financial structure. This not only instills trust
among stakeholders but also aligns the company with best practices in corporate

governance.

2. Cost Optimization and Resource Allocation

A pivotal goal of the study is to uncover opportunities for cost optimization. By

dissecting the intricacies of the existing cost ascertainment process, the company can

pinpoint areas of unnecessary expenditure or inefficient resource allocation. This insight

is invaluable for implementing targeted cost-cutting measures and reallocating

resources to areas that yield maximum operational efficiency. In an industry where profit

margins can be tight, optimizing costs is a strategic imperative for sustained profitability.

3. Informed Decision-Making and Strategic Planning

Accurate operating cost data is the bedrock of informed decision-making and strategic

planning. The study seeks to provide the company with a nuanced understanding of

how costs are distributed across different operational facets. Armed with this

knowledge, decision-makers can make informed choices regarding pricing strategies,

route optimization, and resource allocation. This strategic foresight is essential for

staying ahead in a competitive and dynamic market.

4. Regulatory Compliance and Risk Mitigation

In an era of heightened regulatory scrutiny, ensuring compliance is paramount. The

study aims to assess the company's adherence to industry regulations and standards in

its cost ascertainment practices. By identifying and rectifying any deviations, the

company can mitigate legal risks, avoid penalties, and uphold its reputation for ethical

and responsible financial practices. This proactive approach to compliance is integral to

the long-term stability and credibility of the company.

5. Adaptability to Dynamic Business Environments

The transportation industry is subject to rapid technological advancements, market

shifts, and regulatory changes. The study acknowledges the need for the company to

be adaptable in the face of these dynamics. Evaluating the current operating cost

ascertainment process allows the company to gauge its flexibility and responsiveness to

change. This adaptability is a strategic asset, enabling the company to proactively

adjust its operations in alignment with emerging trends and challenges.

In conclusion, the study on the operating cost ascertainment process is underpinned by

the overarching objectives of enhancing financial transparency, optimizing costs,

informing strategic decision-making, ensuring regulatory compliance, and fostering

adaptability. This comprehensive examination is not merely a procedural audit but a

strategic initiative geared towards fortifying the company's financial foundation and

positioning it for sustained success in a dynamic business landscape.

EXAMPLES:-

Company Overview: Provide a brief history and background of the bus company.

Mission and Values: Highlight the company's mission statement and core values.

Service Areas: Specify the regions or cities where the bus company operates.

Fleet Overview: Briefly introduce the types of buses in the company's fleet.

Types of Services: Detail the various services offered, such as regular routes, express

services, and special programs.

Fleet Features: Dive deeper into the fleet, discussing features like safety measures,

technological advancements, and eco-friendly initiatives.

Ticketing and Accessibility: Explain how passengers can access the services, including

ticketing options, and emphasize the company's commitment to accessibility

Community Involvement: Discuss the bus company's impact on the communities it

serves, both socially and economically.

Customer Testimonials: Include quotes or stories from satisfied customers.

Future Vision: Outline the bus company's future plans, whether it's expansion,

technological advancements, or sustainability goals.

Contact Information: Provide essential contact details for inquiries, feedback, or

partnerships.

This structure ensures a comprehensive overview of the bus company, covering its

background, services, community impact, and future outlook. Feel free to adapt it based

on specific details or preferences!

2.2:- RESEARCH METHODOLOGY

OBJECTIVE:-

Cost Identification and Categorization:

Detailed Cost Breakdown: To meticulously identify and categorize all operational costs,

including fuel, maintenance, labor, insurance, and administrative expenses, ensuring a

granular understanding of the financial landscape.

Cost Allocation and Apportionment:

Activity-Based Allocation: To employ activity-based costing methods, ensuring that

costs are accurately allocated to specific operational activities and services, thereby

reflecting the true cost drivers.

Variance Analysis and Trend Identification:

Variance Identification: To conduct variance analysis by comparing actual costs with

budgeted or historical costs, enabling the identification of deviations and the exploration

of underlying causes.

Trend Analysis: To identify and analyze cost trends over time, facilitating proactive

management responses to evolving cost patterns.

Benchmarking and Comparative Analysis:

Industry Benchmarking: To benchmark operating costs against industry standards,

allowing for a comparative analysis that identifies areas of competitive strength and

opportunities for improvement.

Peer Comparison: To compare operational costs with similar bus companies, providing

valuable insights for strategic decision-making.

Efficiency and Productivity Measurement:

Operational Efficiency: To assess the efficiency of various operational processes and

identify opportunities for streamlining, cost reduction, or process optimization.

Productivity Metrics: To establish key productivity metrics related to labor, fuel

efficiency, and vehicle utilization, aiding in performance evaluation.

Forecasting and Budgeting Support:

Budget Development: To provide critical data for the development of accurate and

realistic budgets, enabling proactive financial planning.

Cost Forecasting: To support the forecasting of future operating costs, incorporating

anticipated changes in operational activities and external factors.

Continuous Improvement Initiatives:

Identification of Improvement Areas: To identify areas for continuous improvement by

analyzing cost data and encouraging a culture of efficiency and innovation within the

organization.

Cost Optimization Strategies: To develop and implement cost optimization strategies

based on insights gained from the ascertainment process.

Compliance and Reporting Integrity:

Regulatory Compliance: To ensure adherence to financial regulations and reporting

standards, maintaining the integrity of financial reporting.

Audit Preparedness: To prepare comprehensive documentation for internal and external

audits, ensuring transparency and accountability.

In summary, the detailed objective of the operating cost ascertainment process is to

establish a robust framework that not only identifies and categorizes costs but also

provides actionable insights for strategic decision-making, continuous improvement, and

financial sustainability within the bus company.

HYPOTHESIS:-

Accuracy Hypothesis:

Null Hypothesis (H0): The operating cost ascertainment process accurately reflects the

actual costs incurred by the bus company.

Alternative Hypothesis (H1): There are significant discrepancies between the estimated

costs in the ascertainment process and the actual operational expenses.

Effectiveness Hypothesis:

Null Hypothesis (H0): The operating cost ascertainment process has no significant

impact on operational effectiveness.

Alternative Hypothesis (H1): A well-implemented cost ascertainment process positively

correlates with improved operational efficiency and resource allocation.

Variance Analysis Hypothesis:

Null Hypothesis (H0): Variance analysis within the cost ascertainment process does not

reveal statistically significant deviations from budgeted or historical costs.

Alternative Hypothesis (H1): Variance analysis identifies substantial differences,

indicating the need for further investigation and corrective actions.

Benchmarking Hypothesis:

Null Hypothesis (H0): The bus company's operating costs do not differ significantly from

industry benchmarks.

Alternative Hypothesis (H1): Operating costs deviate significantly from industry

standards, suggesting potential areas for improvement or competitive advantage.

Efficiency Hypothesis:

Null Hypothesis (H0): There is no significant relationship between the cost

ascertainment process and operational efficiency.

Alternative Hypothesis (H1): A well-structured cost ascertainment process is associated

with increased operational efficiency, as measured by productivity metrics.

Continuous Improvement Hypothesis:

Null Hypothesis (H0): The cost ascertainment process has no impact on the

identification or implementation of continuous improvement initiatives.

Alternative Hypothesis (H1): An effective cost ascertainment process is positively

correlated with the identification and successful implementation of cost-saving and

optimization strategies.
Forecasting Hypothesis:

Null Hypothesis (H0): The cost ascertainment process does not contribute significantly

to the accuracy of future cost forecasts.

Alternative Hypothesis (H1): A robust cost ascertainment process enhances the

accuracy of forecasting, aiding in proactive budgeting and financial planning.

Compliance Hypothesis:

Null Hypothesis (H0): Compliance with financial regulations is not influenced by the cost

ascertainment process.

Alternative Hypothesis (H1): A well-structured cost ascertainment process contributes to

enhanced compliance, ensuring the integrity of financial reporting and audit

preparedness.

These hypotheses can form the basis for testing and evaluating the effectiveness of the

operating cost ascertainment process within the bus company.

SCOPE OF STUDY:-

Process Overview:
Documentation: Comprehensive documentation of the entire operating cost

ascertainment process, including data collection methods, tools, and the frequency of

assessments.

Key Stakeholders: Identification of key personnel involved in the cost ascertainment

process, from data collection to analysis and decision-making.

Cost Categories:

Detailed Categorization: In-depth exploration of the various cost categories involved in

the process, such as fuel, maintenance, labor, insurance, and administrative costs.

Granular Analysis: Breaking down each category into granular components for a more

detailed understanding.

Data Collection Methods:

Primary Data Sources: Identification and examination of primary sources of data,

including financial records, operational logs, and maintenance reports.

Secondary Data Sources: Analysis of any secondary sources, such as industry

benchmarks or government reports, influencing the cost ascertainment process.

Cost Allocation Techniques:

Activity-Based Costing (ABC): Evaluation of the use of activity-based costing methods

in allocating costs to specific operational activities.

Apportionment Methods: Examination of any apportionment techniques employed to

distribute shared costs among different operational units.

Variance Analysis:

Budgeted vs. Actual Costs: Detailed analysis of variance between budgeted and actual

costs, with a focus on identifying significant discrepancies.

Root Cause Analysis: Investigation into the underlying causes of identified variances,

allowing for informed decision-making.

Benchmarking Practices:

Industry Standards: Comparison of the bus company's operating costs against

established industry standards and benchmarks.

Competitor Analysis: Exploration of how the company's costs compare with those of

similar bus companies in the region or industry.

Efficiency Metrics:
Operational Efficiency Metrics: Examination of key performance indicators related to

operational efficiency, including route optimization, fuel efficiency, and maintenance

effectiveness.

Productivity Metrics: Analysis of metrics related to labor productivity and resource

utilization.

Continuous Improvement Initiatives:

Identification Process: Exploration of how the cost ascertainment process contributes to

the identification of areas for continuous improvement.

Success Metrics: Evaluation of the success metrics used to measure the effectiveness

of implemented improvement initiatives.

Forecasting and Budgeting Impact:

Forecast Accuracy: Assessment of the impact of the cost ascertainment process on the

accuracy of forecasting future operating costs.

Budget Development: Examination of how the process supports the development of

realistic and achievable budgets.

Compliance and Reporting:

Regulatory Compliance: Analysis of how the cost ascertainment process ensures

compliance with financial regulations and reporting standards.

Audit Preparedness: Examination of the process's contribution to audit preparedness

and the maintenance of financial reporting integrity.

By delving into these detailed aspects, the study aims to provide a comprehensive

understanding of the operating cost ascertainment process within the bus company,

offering insights into its effectiveness, efficiency, and impact on decision-making and

financial planning.

LIMITATIONS:-

Data Accuracy and Reliability:

Challenge: The accuracy of operating cost data relies heavily on the precision of input

data. Inaccuracies or inconsistencies in data sources, such as manual entry errors or

outdated records, can compromise the reliability of cost ascertainment.

Subjectivity in Cost Allocation:

Challenge: The process of allocating shared costs among different activities or

departments can be subjective. Different methodologies may lead to variations in cost

allocation, potentially impacting the accuracy of departmental or activity-specific cost

figures.

Complexity of Cost Structures:

Challenge: Operating costs often involve intricate structures with multiple

interconnected components. The complexity of these structures can pose challenges in

accurately capturing and categorizing all relevant cost elements.

Variance Analysis Limitations:

Challenge: While variance analysis is crucial for identifying deviations from budgeted

costs, it may not always provide insights into the root causes of variations.

Understanding and addressing the underlying reasons for significant variances can be

challenging.

Benchmarking Challenges:

Challenge: Benchmarking against industry standards or competitors may be limited by

the availability of relevant and up-to-date data. Industries evolve, and external factors

can impact the comparability of benchmarks.

Dynamic Operational Environment:

Challenge: Bus companies operate in dynamic environments with changing fuel prices,

regulatory requirements, and external economic factors. These dynamic elements make

it challenging to predict and control certain cost variables.

Human Resource Variability:

Challenge: Labor costs are a significant component of operating expenses, and they

can be influenced by factors such as workforce turnover, overtime, or changes in labor

laws. These variables introduce a level of unpredictability into the cost ascertainment

process.

Technology Integration Issues:

Challenge: While technology can enhance the efficiency of the cost ascertainment

process, challenges may arise in integrating new technologies into existing systems.

Resistance to change or technical issues can hinder seamless implementation.

Incomplete Cost Visibility:

Challenge: Certain costs may be challenging to capture comprehensively, especially

indirect or hidden costs. For example, the full extent of the environmental impact or

long-term maintenance costs might not be immediately apparent.

Limited Scope of Non-Financial Metrics:

Challenge: The focus on financial metrics may limit the scope of evaluating non-

financial aspects of performance, such as customer satisfaction, safety records, or

community impact, which are essential contributors to overall operational success.

Regulatory Changes:

Challenge: Changes in regulations, tax laws, or compliance requirements can introduce

uncertainties in cost calculations. Bus companies must continually adapt their cost

ascertainment processes to stay compliant with evolving regulatory landscapes.

Resource Constraints:

Challenge: Limited resources, both in terms of personnel and technology, may restrict

the depth and frequency of the cost ascertainment process. This limitation could affect

the company's ability to conduct thorough analyses.

Understanding these limitations is crucial for bus companies to refine their operating

cost ascertainment processes, addressing challenges and continually improving the

accuracy and effectiveness of financial assessments.

RESEARCH METHODOLOGY:-

Research Design:
Descriptive Research Design: Utilize a descriptive research design to thoroughly

document and understand the operating cost ascertainment process. This design allows

for a comprehensive exploration of the existing process.

Data Collection Methods:

Interviews:

Conduct in-depth interviews with key personnel involved in the operating cost

ascertainment process, including financial analysts, operations managers, and data

collection teams.

Use semi-structured interviews to allow for flexibility and detailed insights.

Surveys:

Distribute surveys to a representative sample of employees involved in or affected by

the cost ascertainment process to gather quantitative data on perceptions, challenges,

and suggestions for improvement.

Document Analysis:
Analyze existing documentation related to the operating cost ascertainment process,

including financial reports, cost allocation methodologies, and variance analysis reports.

Sampling Strategy:

Purposeful Sampling:

Employ purposeful sampling to select participants with diverse roles and responsibilities

within the bus company, ensuring a comprehensive understanding of the entire process.

Stratified Sampling:

Stratify the sample based on key factors such as department (finance, operations, etc.)

and level of involvement in the cost ascertainment process to capture a well-rounded

perspective.

Data Analysis Techniques:

Thematic Analysis:

Apply thematic analysis to categorize and identify recurring themes in qualitative data

obtained from interviews and open-ended survey responses.

Quantitative Analysis:

Utilize statistical tools for quantitative data analysis, including descriptive statistics to

summarize survey responses and identify patterns or trends.

Documentary Analysis:

Employ content analysis for analyzing documents to identify patterns, themes, and

discrepancies in the existing documentation related to the cost ascertainment process.

Benchmarking and Comparative Analysis:

Industry Benchmarking:

Conduct benchmarking against industry standards by comparing the bus company's

cost ascertainment practices with established benchmarks.

Competitor Analysis:

Perform a comparative analysis with peer bus companies to understand best practices

and identify potential areas for improvement.

Ethical Considerations:

Informed Consent:

Ensure that all participants provide informed consent before participating in interviews

or surveys.

Confidentiality:

Guarantee the confidentiality of participants by anonymizing responses and avoiding the

disclosure of sensitive information.

Triangulation:

Data Triangulation:

Employ triangulation by comparing data collected through interviews, surveys, and

document analysis to ensure the reliability and validity of findings.

Methodological Triangulation:
Use multiple research methods, such as interviews, surveys, and documentary analysis,

to cross-verify results and enhance the overall robustness of the study.

Feedback Loop:

Preliminary Findings Presentation:

Present preliminary findings to key stakeholders within the bus company to gather

feedback and ensure accuracy and relevance.

Iterative Data Collection:

Incorporate feedback into the research process, allowing for iterative data collection and

analysis to refine the study's focus and address emerging insights.

Reporting and Dissemination:

Comprehensive Report:

Compile a comprehensive research report detailing the methodology, findings, and

recommendations based on the study.

Presentations:

Deliver presentations to relevant stakeholders, sharing key insights and facilitating

discussions around potential improvements to the operating cost ascertainment

process.

Limitations and Future Research:

Limitations Acknowledgment:

Clearly acknowledge any limitations encountered during the research process, such as

sample size constraints or data availability issues.

Future Research Recommendations:

Provide recommendations for future research avenues, suggesting areas for further

exploration and refinement of the operating cost ascertainment process.

This research methodology aims to provide a thorough understanding of the operating

cost ascertainment process, incorporating a mix of qualitative and quantitative data

collection methods to ensure a comprehensive and reliable study.

3.3.REVIEW OF LITERATURE:-
 sciencedirect.com

Industrial aspects and literature survey: Combined inventory

management and routing
Henrik Andersson, Arild Hoff, Marielle Christiansen, Geir Hasle, Arne Løkketangen

Computers & operations research 37 (9), 1515-1536, 2010

This paper describes industrial aspects of combined inventory management and

routing in maritime and road-based transportation, and gives a classification and

comprehensive literature review of the current state of the research. The literature

is contrasted with aspects of industrial applications from a constructive, but critical,

viewpoint. Based on the status and trends within the field, future research is

suggested with regard to both further development of the research area and

industrial needs. By highlighting the industrial aspects, practitioners will hopefully

see the benefit of using advanced decision support systems in complex situations

related to combined inventory management and routing in their business. In

addition, a classification and presentation of the research should help and motivate

researchers to further focus on inventory management and routing challenges.

A Study on Operating Cost Management at BMTC,

Bangalore.
S Madhu, Mahak Balani

Acharya Institute of Technology., 2019

This research is done with regards to the successful completion of MBA with

specialization in finance. Hence this research is rooted to enlighten the student in

the area of research. This research is done with the cooperation of Bangalore

Metropolitan Transport Corporation and the research is conducted in area of

Operation Cost. The project is titled as “A Study on Operating Cost Management at

BMTC, Bangalore”. It is conducted purely in expectation that the students will attain

an insight and have a critically about the industry. Project stands beneficial as it

teaches the students the facts about the practical knowledge attained and the

theoretical knowledge they have learned. The Project has been carried out over a

period of 6 weeks. The project is undertaken so that the students will have greater

business insight & exposure of real time corporate world. It gives a base for

students to enrich the skills and knowledge required to compete with the external

world.

Adoption of electric vehicle: A literature review and

prospects for sustainability
Rajeev Ranjan Kumar, Kumar Alok

Journal of Cleaner Production 253, 119911, 2020

Scholarly research on the topic of electric vehicles has witnessed a dramatic

increase in the current decade; however, reviews that synthesize and integrate

these findings comprehensively have been lacking. This study is an attempt at

filling in that void through an integrative review methodology. It includes an

integrative review of 239 articles published across Scopus Q1 journals and

compiled using an integrative review protocol. It encompasses the identification of

variables in five different categories: antecedents, mediators, moderators,

consequences, and socio-demographics. The analysis procedure revealed many

interesting insights related to research methods and region-specific developments.

The review draws attention to relatively neglected topics such as dealership

experience, charging infrastructure resilience, and marketing strategies as well as

identifies much-studied topics such as charging infrastructure development, total

cost of ownership, and purchase-based incentive policies. It also clarifies the

mechanisms of electric vehicle adoption by highlighting important mediators and

moderators. The findings would be beneficial to both researchers and policymakers

alike, as there has been a dearth of earlier reviews that have analyzed all

sustainable consequence variables simultaneously and collectively. The

development of a comprehensive nomological network of electric vehicle adoption

added a new dimension in this study. The segment-wise key policy

recommendations provide many insights for stakeholders to envisage electric

mobility.

An application of data envelopment analytic hierarchy

process for supplier selection: a case study of BEKO in
Turkey
Mehmet Sevkli, SC Lenny Koh, Selim Zaim, Mehmet Demirbag, Ekrem Tatoglu

International Journal of Production Research 45 (9), 1973-2003, 2007

This paper aims to apply a hybrid method of supplier selection to a well-known

Turkish company operating in the appliance industry. The data envelopment

analytic hierarchy process (DEAHP) methodology developed by Ramanathan, R.,

(Data envelopment analysis for weight derivation and aggregation in the analytic

hierarchy process. Computers and Operations Research, , 33, 1289–1307) was

chosen as the survey method. In this method, the data envelopment analysis (DEA)

approach is embedded into analytic hierarchy process (AHP) methodology. This

research concluded that the DEAHP method outperforms the AHP method for
supplier selection despite the findings that the AHP model suggested supplier 1 to

be the best supplier, contradicting the suggestion made by the DEAHP model and

the real action taken by BEKO in selecting supplier 2. These findings imply that

DEAHP criteria reflect closer to the real optimum of the decision made. Drawing on

a real case our study has supported Ramanathan's work confirming the view that

the DEAHP method provides a better decision than the AHP method for supplier

selection. Because the DEAHP model is relatively more cumbersome to apply, its

application will be more appropriate for high-value components where stringent

purchasing criteria are required. In contrast, AHP would remain to be an

appropriate approach for relatively lower value components (C class). The novelty

of this research lies in the application of a hybrid approach to a real industry case–

the DEAHP method for supplier selection, where little has been done on this

subject. This study has dealt with one of the most important subjects in supply

chain management providing a better decision for supplier selection using

appropriate quantitative approaches.

Adoption of electric vehicle: A literature review and

prospects for sustainability
Rajeev Ranjan Kumar, Kumar Alok

Journal of Cleaner Production 253, 119911, 2020

Scholarly research on the topic of electric vehicles has witnessed a dramatic

increase in the current decade; however, reviews that synthesize and integrate

these findings comprehensively have been lacking. This study is an attempt at

filling in that void through an integrative review methodology. It includes an

integrative review of 239 articles published across Scopus Q1 journals and

compiled using an integrative review protocol. It encompasses the identification of

variables in five different categories: antecedents, mediators, moderators,

consequences, and socio-demographics. The analysis procedure revealed many

interesting insights related to research methods and region-specific developments.

The review draws attention to relatively neglected topics such as dealership

experience, charging infrastructure resilience, and marketing strategies as well as

identifies much-studied topics such as charging infrastructure development, total

cost of ownership, and purchase-based incentive policies. It also clarifies the

mechanisms of electric vehicle adoption by highlighting important mediators and

moderators. The findings would be beneficial to both researchers and policymakers

alike, as there has been a dearth of earlier reviews that have analyzed all

sustainable consequence variables simultaneously and collectively. The

development of a comprehensive nomological network of electric vehicle adoption

added a new dimension in this study. The segment-wise key policy

recommendations provide many insights for stakeholders to envisage electric

mobility.

Industrial aspects and literature survey: Combined inventory

management and routing
Henrik Andersson, Arild Hoff, Marielle Christiansen, Geir Hasle, Arne Løkketangen

Computers & operations research 37 (9), 1515-1536, 2010

This paper describes industrial aspects of combined inventory management and

routing in maritime and road-based transportation, and gives a classification and

comprehensive literature review of the current state of the research. The literature

is contrasted with aspects of industrial applications from a constructive, but critical,

viewpoint. Based on the status and trends within the field, future research is
suggested with regard to both further development of the research area and

industrial needs. By highlighting the industrial aspects, practitioners will hopefully

see the benefit of using advanced decision support systems in complex situations

related to combined inventory management and routing in their business. In

addition, a classification and presentation of the research should help and motivate

researchers to further focus on inventory management and routing challenges.

An application of data envelopment analytic hierarchy

process for supplier selection: a case study of BEKO in
Turkey
Mehmet Sevkli, SC Lenny Koh, Selim Zaim, Mehmet Demirbag, Ekrem Tatoglu

International Journal of Production Research 45 (9), 1973-2003, 2007

This paper aims to apply a hybrid method of supplier selection to a well-known

Turkish company operating in the appliance industry. The data envelopment

analytic hierarchy process (DEAHP) methodology developed by Ramanathan, R.,

(Data envelopment analysis for weight derivation and aggregation in the analytic

hierarchy process. Computers and Operations Research, , 33, 1289–1307) was

chosen as the survey method. In this method, the data envelopment analysis (DEA)

approach is embedded into analytic hierarchy process (AHP) methodology. This

research concluded that the DEAHP method outperforms the AHP method for

supplier selection despite the findings that the AHP model suggested supplier 1 to

be the best supplier, contradicting the suggestion made by the DEAHP model and

the real action taken by BEKO in selecting supplier 2. These findings imply that

DEAHP criteria reflect closer to the real optimum of the decision made. Drawing on
 a real case our study has supported Ramanathan's work confirming the view that

the DEAHP method provides a better decision than the AHP method for supplier

selection. Because the DEAHP model is relatively more cumbersome to apply, its

application will be more appropriate for high-value components where stringent

purchasing criteria are required. In contrast, AHP would remain to be an

appropriate approach for relatively lower value components (C class). The novelty

of this research lies in the application of a hybrid approach to a real industry case–

the DEAHP method for supplier selection, where little has been done on this

subject. This study has dealt with one of the most important subjects in supply

chain management providing a better decision for supplier selection using

appropriate quantitative approaches.

An application of data envelopment analytic hierarchy process for supplier selection: a

case study of BEKO in Turkey

Mehmet Sevkli, SC Lenny Koh, Selim Zaim, Mehmet Demirbag, Ekrem Tatoglu

International Journal of Production Research 45 (9), 1973-2003, 2007

This paper aims to apply a hybrid method of supplier selection to a well-known Turkish

company operating in the appliance industry. The data envelopment analytic hierarchy

process (DEAHP) methodology developed by Ramanathan, R., (Data envelopment

analysis for weight derivation and aggregation in the analytic hierarchy process.

Computers and Operations Research, , 33, 1289–1307) was chosen as the survey

method. In this method, the data envelopment analysis (DEA) approach is embedded
into analytic hierarchy process (AHP) methodology. This research concluded that the

DEAHP method outperforms the AHP method for supplier selection despite the findings

that the AHP model suggested supplier 1 to be the best supplier, contradicting the

suggestion made by the DEAHP model and the real action taken by BEKO in selecting

supplier 2. These findings imply that DEAHP criteria reflect closer to the real optimum of

the decision made. Drawing on a real case our study has supported Ramanathan's work

confirming the view that the DEAHP method provides a better decision than the AHP

method for supplier selection. Because the DEAHP model is relatively more

cumbersome to apply, its application will be more appropriate for high-value

components where stringent purchasing criteria are required. In contrast, AHP would

remain to be an appropriate approach for relatively lower value components (C class).

The novelty of this research lies in the application of a hybrid approach to a real industry

case–the DEAHP method for supplier selection, where little has been done on this

subject. This study has dealt with one of the most important subjects in supply chain

management providing a better decision for supplier selection using appropriate

quantitative approaches.

View at tandfonline.com

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Transportation decision making: Principles of project evaluation and programming

Kumares C Sinha, Samuel Labi

John Wiley & Sons, 2011

Transportation Decision Making A GUIDE TO EFFECTIVE DECISION MAKING

WRITTEN JUST FOR TRANSPORTATION PROFESSIONALS This pioneering text

provides a holistic approach to decision making in transportation project development

and programming, which can help transportation professionals to optimize their

investment choices. The authors present a proven set of methodologies for evaluating

transportation projects that ensures that all costs and impacts are taken into

consideration. The text’s logical organization gets readers started with a solid

foundation in basic principles and then progressively builds on that foundation. Topics

covered include: Developing performance measures for evaluation, estimating travel

demand, and costing transportation projects Performing an economic efficiency

evaluation that accounts for such factors as travel time, safety, and vehicle operating

costs Evaluating a project’s impact on economic development and land use as well as

its impact on society and culture Assessing a project’s environmental impact, including

air quality, noise, ecology, water resources, and aesthetics Evaluating alternative

projects on the basis of multiple performance criteria Programming transportation

investments so that resources can be optimally allocated to meet facility-specific and

system-wide goals Each chapter begins with basic definitions and concepts followed by

a methodology for impact assessment. Relevant legislation is discussed and available

software for performing evaluations is presented. At the end of each chapter, readers

are provided resources for detailed investigation of particular topics. These include

Internet sites and publications of international and domestic agencies and research

institutions. The authors also provide a companion Web site that offers updates, data for
analysis, and case histories of project evaluation and decision making. Given that

billions of dollars are spent each year on transportation systems in the United States

alone, and that there is a need for thorough and rational evaluation and decision making

for cost-effective system preservation and improvement, this text should be on the

desks of all transportation planners, engineers, and educators. With exercises in every

chapter, this text is an ideal coursebook for the subject of transportation systems

analysis and evaluation.

Niklas Krause, Lisa K Dasinger, Frank Neuhauser

Journal of occupational rehabilitation 8, 113-139, 1998

Workplace injuries which result in lost time from work can have considerable

financial repercussions for employer and employee alike, not to mention their

physical and emotional impact on the employee. In order to lessen workers'

compensation costs and facilitate the rehabilitation process, some employers offer

modified work to their injured employees in order to allow an earlier return to work

than would ordinarily be possible. Although modified work is regarded by many as a

cornerstone in the job rehabilitation process, little is known about the structure,

effectiveness, and efficiency of such programs. This report is a systematic review of

the scientific literature on modified work published since 1975. Its objective is to

synthesize and critically appraise the research on modified work, and, specifically,

to assess the effectiveness of modified work programs. Using a systematic

keyword search in three online libraries, 29 empirical studies of modified work

programs were selected for review. The studies were evaluated for methodological

quality, from which 13 higher quality studies were identified. On the basis of these

13 studies, the effectiveness of modified work programs was evaluated. The main

finding of this review is that modified work programs facilitate return to work for
temporarily and permanently disabled workers. Injured workers who are offered

modified work return to work about twice as often as those who are not. Similarly,

modified work programs cut the number of lost work days in half. The available

evidence also suggests that modified work programs are cost-effective.

Comprehensive cost-benefit analyses are needed to confirm this finding.

Transportation decision making: Principles of project

evaluation and programming
Kumares C Sinha, Samuel Labi

John Wiley & Sons, 2011

Transportation Decision Making A GUIDE TO EFFECTIVE DECISION MAKING

WRITTEN JUST FOR TRANSPORTATION PROFESSIONALS This pioneering text

provides a holistic approach to decision making in transportation project

development and programming, which can help transportation professionals to

optimize their investment choices. The authors present a proven set of

methodologies for evaluating transportation projects that ensures that all costs and

impacts are taken into consideration. The text’s logical organization gets readers

started with a solid foundation in basic principles and then progressively builds on

that foundation. Topics covered include: Developing performance measures for

evaluation, estimating travel demand, and costing transportation projects

Performing an economic efficiency evaluation that accounts for such factors as

travel time, safety, and vehicle operating costs Evaluating a project’s impact on

economic development and land use as well as its impact on society and culture

Assessing a project’s environmental impact, including air quality, noise, ecology,

water resources, and aesthetics Evaluating alternative projects on the basis of

multiple performance criteria Programming transportation investments so that

resources can be optimally allocated to meet facility-specific and system-wide goals

Each chapter begins with basic definitions and concepts followed by a methodology

for impact assessment. Relevant legislation is discussed and available software for

performing evaluations is presented. At the end of each chapter, readers are

provided resources for detailed investigation of particular topics. These include

Internet sites and publications of international and domestic agencies and research

institutions. The authors also provide a companion Web site that offers updates,

data for analysis, and case histories of project evaluation and decision making.

Given that billions of dollars are spent each year on transportation systems in the

United States alone, and that there is a need for thorough and rational evaluation

and decision making for cost-effective system preservation and improvement, this

text should be on the desks of all transportation planners, engineers, and

educators. With exercises in every chapter, this text is an ideal coursebook for the

subject of transportation systems analysis and evaluation.

Cost-effectiveness analysis: Methods and applications

Henry M Levin, Patrick J McEwan

Sage, 2001

" Why should applied researchers be concerned with cost-effectiveness analysis?

Answer: Because it will enable them to discover if a particular program or policy

has attained maximum effectiveness for a given budget. Designed so that an

individual can utilize this book as part of an informal course of self-study or in a

formal course on the subject, Levin and McEwan provide readers with the step-by-

step methods to plan and implement a cost-analysis study. Through the use of

numerous examples drawn from the applied literature, the authors explain,

demonstrate and illustrate the four major techniques of cost analysis: cost-
effectiveness, cost-benefit, cost-utility, and cost-feasibility. They examine issues

that are pertinent to the choice of analysis and its implementation; the nature of

costs, including how to identify, measure, and distribute costs; measuring

effectiveness, utility, and benefits; and, lastly the challenges to incorporating cost

evaluations in the decision making process. In-depth exercises are included at the

end of each chapter to enable readers to sharpen their ability to evaluate policy

options and program effectiveness. The authors also provide readers with

recommended readings at the end of chapters and a comprehensive bibliography

of methodological sources on cost analysis and educational cost studies at the end

of the book. This book will enable readers to reduce the costs of reaching particular

objectives, and expand what can be accomplished for any particular budget or

resource constraint."--Publisher's description.

REFERENCE & CONCLUSION:-

Author: To conclude your study, summarize the key findings, highlight the significance

of effective operating cost ascertainment, and suggest potential improvements or areas

for future research.

Dare: Challenge yourself to incorporate references from both classic and contemporary

sources. Include works by renowned experts in transportation economics, management

accounting, and case studies of successful bus companies. This will add depth and

credibility to your conclusion.

Author: Consider structuring your conclusion by summarizing the main findings,

discussing their implications for bus companies, and proposing practical

recommendations for improving operating cost ascertainment processes.

Dare: Expand your reference list to encompass a variety of perspectives, such as

academic journals, industry reports, and real-world examples. This will not only

contribute to the depth of your conclusion but also showcase a well-rounded

understanding of the subject matter

ABBREVIATIONS:-

Q.1. How satisfied are you with the transparency of the bus company's operating cost

breakdown.

Satisfied

Very satisfied

Neutral

Dissatisfied

Q.2.Rate the bus company's communication regarding how operating cost influence

service quality.

Positive

Slightly affects

No affects

Negative affect

Q. 3. Rate the bus company's communication regarding how operating costs influence

service quality?
Strongly agree

Agree

Neutral

Disagree

Q.4. How well do you think the company's cost management practices align with your

expectations for efficient and reasonable service?

Completely aligned

Slightly aligned

Moderate aligned

Not aligned at all

Q.5. Are you content with the value you receive considering the ticket price paid in

relation to the service provided by the bus company?

Satisfied

Very satisfied

Neutral

Dissatisfied

Q.6. Rate your understanding of how the bus company allocates operating cost across

different aspects of its services?

Completely understand

Good understand

Neutral

No understand

Q.7. To what extent does the bus company's approach to cost management influence

your locality as a customer?

Highly influences

Moderate influences

Neutral

Negatively influences

Q.8. How satisfied are you with the bus company's efforts in controlling and minimizing

operating cost without compromising service quality ?

Satisfied

Very satisfied

Neutral

Dissatisfied

Q.9. Rate the clarity of the bus company's communication regarding how cost changes

impact service improvement or reduction?

Clear

Very clear

Neutral

Unclear

Q.10. How would you rate the bus company's responsiveness to customer feedback

relating to operating cost changes?

Good

Very good

Neutral

Poor

Q.11. How satisfied are you with the bus company's efforts to involve customers in

discussions about operating cost changes and their potential impact?

Satisfied

Very satisfied

Neutral

Dissatisfied