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[CBQ] re: new locomotives and cost

To: CBQ@yahoogroups.com
Subject: [CBQ] re: new locomotives and cost
From: ANDREW KOETZ <andrewkoetz@gmail.com>
Date: Sat, 3 Dec 2011 00:01:33 -0600
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Analogy on cost: 

Railroad locomotive builders, aircraft builders and auto makers all work the same way. If you want "Package A" for options, your cost is two million per locomotive, if you want "Package(s) A,B,C, your locomotive will cost this much $ 40 million per locomotive. Then you throw in the changes that the customer wants during the build, removing option package B, for option package D. That will move the price higher, due to the list was made before the build. Now the builder has to remove said options, and install the other option package. The military is the same way with their new fighters and bombers; which is why it takes so long to get them off the production line. Auto manufacturers ask the customer; :What do you want for options: Manual windows, manual transmission 4-wheel disc brakes, and an AM/FM radio with no CD payer or satellite radio, 4-cylinder engine; base package options. Now said options on a vehicle of your choice could only cost you $15K. Now you add, power windows, door locks, satellite radio, Upgrade the engine to a 6.9 liter V8 from a four cylinder. Now your vehicle cost is up to $40,000.00. The USAF was having some "sticker shock" issues with the C130H when it was getting built several years ago. They changed the game plan in the middle of the build when the manufacturer had built several and sent them out the door. The costs went through the roof for all the changes the USAF wanted done to the existing C130H.


You'd think after spending millions on a new locomotive GE could at least give us a free tank of gas!!


Ryan Gash 

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