Amtrak 2012 Annual Report Download - page 69

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Summary of Changes from FY11 to FY12
$ Millions
FY11 Total Actual $54.4
Chan
g
es to Base Activit
y
$1.4
$2.8
$4.1
$8.3
FY12 Budget before Reductions $62.6
FY12 Reduction ($11.3)
FY12 Final Budget $51.3
Base Activity Increase/(Decrease) from Prior Year
Increase in Professional Fees due to increased activity (this increase is eliminated via the target budget reductions)
Increase in Investigative/Surveillance Claims due to less activity than expected in FY11 (this increase is also
eliminated via the target budgetreductions)
Inflation of Prior Year expenses including labor agreements
Operations Management / Reliability Centered Maintenance
Overview of the Department
Reliability-Centered Maintenance is an analytical methodology for developing or reviewing a scheduled
maintenance program that will realize inherent reliability levels of complex systems and equipment while
taking into account safety, operational and economic failure consequences. Reliability-Centered
Maintenance is designed to increase equipment availability and reliability, and to improve the
effectiveness of the Corporation's maintenance investment. Amtrak began the RCM Program with
analysis of maintenance requirements for the High Speed Acela in June of 2006 and has since expanded
the program to all rolling stock. The program was further expanded to include a variety of maintenance
process improvements including the use of standardized maintenance procedures and more disciplined
shop supervision.
Amtrak previously engaged a consultant, The McHenry Management Group, to assist in RCM analysis
and program design. The McHenry Group contract was terminated with services to be provided through
December 1, 2011. The contract will not be restarted at this time and the activities of this department
will not continue past December 2011.
Base Activity:
The FY12 budget request is $0.8M compared to the FY11 actual of $7.4M. The reduction is due to the
termination of the McHenry Group contract.
Operating Expense Summary FY10 – FY12: Operations Management
$ millions
FY10
Actual
FY11
Actual
FY12
Budget $%
Employee Related $0.0 $0.0 $0.1 $0.1 0.0%
Salaries, Wages and Benefits $0.0 $0.0 $0.1 $0.1 0.0%
Professional Fees $7.2 $7.4 $0.7
Total Operating Expenses $7.2 $7.4 $0.8
FY12 Incr/(Decr) vs FY11
($6.7) -90.0%
($6.6) -89.2%
FY2012 Budget Post Board 1.20.12.doc 69 of 79