RR-13 RR-13-04-02 — Cost Accounting and Regulatory Costing

This process involves the cost accounting and regulatory costing for fuel surcharge programs in a US Class I freight railroad. It ensures compliance with STB fuel surcharge calculation decisions and other relevant regulations while optimizing operational costs.

🗺 BPMN Process Flow

Click diagram to zoom & pan • Scroll to zoom • Drag to pan • Download SVG

📋 Process Attributes

Process ID	RR-13-04-02
Domain Family	COMMERCIAL
L1 Domain	Finance, Revenue Accounting & Procurement
L2 Process Group	Cost Accounting and Regulatory Costing
Trigger	Monthly reporting cycle or changes in fuel prices
Outcome	Accurate cost accounting and regulatory compliance, leading to optimized fuel surcharge calculations and reduced financial risks.
Systems	NetControl I-ETMS Umler PS Technology TRAIN II
Regulatory Hooks	49 CFR Part 232 GCOR

📋 L4 Process Steps

Step	Name	Role	System	Input	Output	KPI	Pain Point / Risk	Decision?	Exception?
1.1	Data Collection	Revenue Accountant	NetControl	Monthly fuel consumption data	Fuel consumption report	Accuracy of fuel consumption data > 95%	Inaccurate data entry leading to miscalculations	N	Y
1.2	Regulatory Review	Cost Analyst (regulatory costing)	Umler	Fuel consumption report	Regulatory compliance checklist	Compliance with STB fuel surcharge rules > 98%	Understanding complex regulatory requirements	Y	N
1.3	Cost Analysis	Revenue Accountant	PS Technology	Regulatory compliance checklist	Cost analysis report	Cost savings from optimized fuel surcharge > 2%	Balancing cost optimization with regulatory requirements	Y	N
1.4	Surcharge Calculation	Cost Analyst (regulatory costing)	TRAIN II	Cost analysis report	Fuel surcharge calculation document	Accuracy of fuel surcharge calculations > 99%	Complexity in calculating surcharges based on varying rates	N	Y
1.5	Approval Process	VP Network Planning & Operations	Harriman Dispatching Center	Fuel surcharge calculation document	Approved fuel surcharge plan	Timely approval of fuel surcharge plans > 90%	Delays in the approval process affecting operational planning	Y	N
1.6	Implementation	Train Dispatcher	I-ETMS	Approved fuel surcharge plan	Implemented fuel surcharge rates	Consistency in implementing fuel surcharge rates > 100%	Inconsistent implementation across different regions	N	Y
1.7	Monitoring	Revenue Accountant	Wabtrax	Implemented fuel surcharge rates	Monitoring report	Effective monitoring of fuel surcharge impacts > 95%	Real-time monitoring challenges due to data availability	Y	N
1.8	Adjustment	Cost Analyst (regulatory costing)	PS Technology	Monitoring report	Adjusted fuel surcharge plan	Number of adjustments < 3 per quarter	Frequent adjustments leading to operational disruptions	Y	N
1.9	Reporting	Revenue Accountant	NetControl	Adjusted fuel surcharge plan	Final report	Timeliness of final reports > 85%	Delays in generating final reports affecting financial planning	N	Y
1.10	Review and Feedback	Chairman, President and CEO	Harriman Dispatching Center	Final report	Feedback document	Positive feedback rate > 80%	Inconsistent feedback leading to misalignment with strategic goals	Y	N
1.11	Continuous Improvement	Service Design / Network Planning Analyst	Umler	Feedback document	Improved cost accounting and regulatory costing process	Number of improvements implemented > 2 per year	Resistance to change affecting the adoption of new processes	Y	N
1.12	Documentation Update	Revenue Accountant	TRAIN II	Improved cost accounting and regulatory costing process	Updated documentation	Completeness of updated documentation > 90%	Ongoing maintenance of comprehensive documentation	N	Y

📊 KPIs & Risk Register

KPIs

Accuracy of fuel consumption data > 95% Compliance with STB fuel surcharge rules > 98% Cost savings from optimized fuel surcharge > 2% Timely approval of fuel surcharge plans > 90% Consistency in implementing fuel surcharge rates > 100% Effective monitoring of fuel surcharge impacts > 95% Number of adjustments < 3 per quarter Timeliness of final reports > 85% Positive feedback rate > 80% Number of improvements implemented > 2 per year Completeness of updated documentation > 90%

Key Risks

Inaccurate data entry leading to miscalculations Understanding complex regulatory requirements Balancing cost optimization with regulatory requirements Complexity in calculating surcharges based on varying rates Delays in the approval process affecting operational planning Inconsistent implementation across different regions Real-time monitoring challenges due to data availability Frequent adjustments leading to operational disruptions Delays in generating final reports affecting financial planning Inconsistent feedback leading to misalignment with strategic goals Resistance to change affecting the adoption of new processes Ongoing maintenance of comprehensive documentation

Swim Lanes

Revenue Accountant · 1.1, 1.3, 1.5, 1.7, 1.9 Cost Analyst (regulatory costing) · 1.2, 1.4, 1.8, 1.10, 1.12 VP Network Planning & Operations · 1.5 Train Dispatcher · 1.6 Service Design / Network Planning Analyst · 1.11

Independently compiled from public sources. Not affiliated with, sponsored by, or endorsed by Union Pacific or any other railroad. Illustrative of US Class I practice; every system, regulation, role and metric named here traces to a sourced entry in registries/.