Re: LA MTA Blue Line $1.2 BBBBBBBBBillion Overhaul
Author: Ivy Mike
Date: 01-13-2014 - 13:53
Hmmm.... Most of my clients certainly have never heard of your approach. (And my clients include some major networking and tech firms) They spend the minimum possible to maintain until the item is depreciated or they get enough political juice to push through a capital budget and then it gets replaced with new components, typically from whoever greased the right palms or had the best prior business relationship.
Having worked in the manufacturing, tech and medical industries for 15 years, I can speak from first hand knowledge that private sector runs on personal contacts, kickbacks and sometimes outright corruption. Biggest difference I have found to public sector is that public needs to be more open with their books.
Paul Kepler Wrote:
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> The major difference between a private sector rail
> operation and one that runs on public funds is
> this. In the private sector operations are based
> on profit. Maintaining the infrastructure and
> getting the most life out of your equipment is
> smart business sense. Keeping things in good
> running order is an expense, yes! but it is still
> far less costly to do maintenance than it is to
> replace things rather than fix them. With public
> money it is necessary to have NEW equipment on a
> regular basis or the public funds will be
> determined to be surplus to operations and
> allocated to other projects. Use it or loose it.