Machinery and Equipment and PPPs

Richard Dibley

3rd Technical Advisory Group

Meeting

2

….relevant extensive personal experience

working on Eurostat capital goods

surveys….

Introduction

• Since 1980s: Collection of the data for the UK

surveys

• 2000 – 2004: Management of the EG surveys in

all EU countries (in conjunction with construction)

• Since 2004: Responsibility for the 37 countries

participating in the Eurostat programme

• 2005 – 2006: Worked on the ICP program for the

UK data

3

Machinery and Equipment

and PPPs:

Survey 2011

4….following by discussion….

Topics to covered

• Background

• Objectives and approach

• Methodology and work proposals

• Pilot survey

• The structure and content of the core product list

• Pilot survey: arrangements

• Future activities

• Summary

5

….these bodies have co-operated for

many years….

Background

• The ICP program 2005 - 2006

• Eurostat surveys

• Work and experience from other

organisations, principally OECD

….sources and experience ….

6

Overall objectives

• To prepare a core list of products to be used for the regions

• To achieve a list that will reflect products available in all regions

• To include representative and identical products across all regions

• To prepare associated data recording and analysis methods

…..regions will have their own lists for their countries…..

…..principally to development a core product list…

7

….conclusion: difficult for analysis and

difficult to compare prices….

The ICP survey: 2005 - 2006

• General specifications - holistic

• Difficult to price – too vague

• Skewed towards some BHs

• List biased towards N. American makes

and models

• Two BHs were omitted

….some problems….

8

….to learn from the lessons from the past…….

Approach: 2010 – 2011

• To move towards the Eurostat approach

• To include at least some specific identical and representative products

• To reflect global markets and products

• To integrate the products, data collection and analysis

9

….a significant trend in the last few years…….

Approach: comments

• Increasing penetration of global markets by

multi-national companies

• Increasing availability of products

internationally

• This will facilitate finding identical products

across regions

10

Methodology

• Study of previous survey results

• Evaluate other lists and work

• Research new products, as appropriate

• Develop the structure of the list

• Discuss and finalise the list

• Design of specification sheets

• Plan analysis methods

…..to end up with a core product list ready for the main survey in mid-2011…

11

….the main survey will take place in mid-2011…..

Proposals

• Start with the Eurostat list for the 2009 survey

• Include results for the ICP 2005 – 2006 as

appropriate

• The list will be divided between generic and

specific products

• There should be an initial pilot survey

• Data recording and analysis methods will be

adapted from Eurostat

12

The pilot survey

….is the emphasis of the presentation

today….

13….the first step is the pilot survey….

Pilot survey: objectives (1)

• To test the overall approach

• To determine which generic products and items are submitted

• To determine the extent to which specific products are found

• To determine the extent to which makes and models not included in the initial list (equivalent) are submitted

….important to carry out initial work before the

main survey….

14

….the first step is the pilot survey….

Pilot survey: objectives (2)

• To ensure that the final list reflects global

makes and models

• To remove bias from initial list

• To ensure that the final list is balanced

across the regions

….important to carry out initial work before the

main survey….

15

….implementation - later in 2010….

Pilot survey: comments

• Carry out the pilot survey in two regions

• Finalise draft core product list

• To decide about the efficacy of the

proposed method Implementation

….pilot survey is the next stage of the work…..

16….and reflect across regions…….

The core product list

• A list including all 17 BHs

• There will be more or less an equally number of products in each BH

• A combination of specific and generic products and items

• The products included are based on the list of the ICP survey and the Eurostat 2009 list

……to aim to select representative and

identical products across all BHs…..

17

….the list is split into products and items…

Products and items

• A product defines a group of specific

pieces of machinery or equipment

• Products are defined in the classification

of BHs

• For our purposes products are sold in

commercial markets as opposed as in

consumer markets

• An item is a sub-division and a variation

of a product (e.g. a particular model

and/or make of a product)

18

….but constrained by the

classification….

Classification

• Based on CPA 1996

• Sometimes difficult to find suitable products in

some BHs

• Out-of-date

• The technology has moved on

• Practical problems - some products cannot be

realistically priced, e.g. planes

….the products defined within in each BH…..

19

….starting point for the core product

list….

Sources

• The product list for the 2005 – 2006 ICP survey

• The 2009 Eurostat list

• Other documents, including classification lists

….list based on existing work…..

20

The core product list: summaryBH no. Title of BH 2006

Products Items

Total Total Generic Specified Total

I. Fabricated metal products, except machinery and equipment (1501111) 5 6 3 3 12

II. Engines and turbines, pumps and compressors (1501121) 10 8 3 5 11

III. Other general purpose machinery (1501122) 5 6 3 3 10

IV. Agricultural and forestry machinery (1501131) 2 6 3 3 9

V. Machine tools (1501132) 6 6 3 3 10

VI. Machinery for metallurgy, mining, quarrying and construction (1501133) 22 8 3 5 13

VII. Machinery for food, beverages and tobacco processing (1501134) 4 6 3 3 8

VIII. Machinery for textile, apparel and leather production (1501135) 0 6 3 3 8

IX. Other special purpose machinery (1501136) 5 6 3 3 8

X. Office machinery (1501141) 5 6 3 3 9

XI. Computers and other information processing equipment (1501142) 9 8 3 5 18

XII. Electrical machinery and apparatus (1501143) 2 7 3 4 9

XIII. Radio, television and communications equipment and apparatus (1501144) 3 6 3 3 10

XIV. Medical, precision and optical instruments, watches and clocks (1501145) 10 8 3 5 14

XV. Other manufactured goods n.e.c. (1501151) 0 6 3 3 8

XVI. Motor vehicles, trailers and semi-trailers (1501211) 11 8 3 5 19

XVII. Software (1503121) 9 10 2 8 15

TOTAL 108 117 50 67 191

2011

Products

21

….at this stage structure more important

than specific products…

Comments on the core product list

• All 17 BHs are included

• Approximately the same number products

for each BH (at the moment)

• Divided by generic and specific

• Sub-divided into products and items

…..initial proposals….

22

….found in various BHs….

Generic products/items

• One: where generic products/items have

their own special specifications

• Two: where generic products/items are

related to the specific products/items

Two types, as below:

23

The core product list: example (1)

Item

Product/

Item no. Description Make Model

Parameters for

specification sheet for

generic items

I. Fabricated metal products, except machinery and equipment (1501111)

Generic

01.01 Single skinned horiz. cyl. storage tank

01 01.01(a) Unspecified 100 cu. m. Special

01.02 Double skinned horiz. cyl. storage tank

02 01.02(a) Unspecified 100 cu. m. Special

03 01.02(b) Unspecified 50 cu. m. Special

01.03 Stainless steel beer keg

04 01.03(a) Unspecified 50 litre standard Special

Specific

01.04 Packaged steam boiler

05 01.04(a) Viessmann (Germany) Vitomax 200 HS, model 237

06 01.04(b) Viessmann (Germany) Vitomax 200 HS, model 237

07 01.04(c) Viessmann (Germany) Vitoplex 200 SX2 1950 kW

08 01.04(d) Viessmann (Germany) Vitoplex 200 SX2 1950 kW

01.05 Hacksaw

09 01.05(a) Stanley (USA) Multiposition hacksaw 15-120

10 01.05(b) Stanley (USA) High-Tension Hacksaw

11 01.05(c) USAG (Italy) 200 S

01.06 Automotive tool set

12 01.06(a) Facom (France) Tool set BT.11A

24….found in some other BHs……….

Example (1): explanation

• BH I: Fabricated metal products

• Split by generic (unspecified) and specified products (makes and models)

• Items under products, as appropriate

• Generic products have special specifications

• No specific makes/models for these products

..where generic items have special specifications..

25

The core product list: example (2)

Item

Product/

Item no. Description Make Model

Parameters for

specification sheet for

generic items

II. Engines and turbines, pumps and compressors (1501121)

Generic

02.01 Portable screw compressor

13 02.01(a) Unspecified - 02.04(a)

02.02 Diesel engine (general purpose)

14 02.02(a) Unspecified - 02.05(a)

02.03 Water pump (stationary)

15 02.03(a) Unspecified - 02.07(a)

Specific

02.04 Portable screw compressor

16 02.04(a) Atlas Copco (USA) XAS 67 Dd Series 7

17 02.04(b) Atlas Copco (USA) XAS 77 Dd Series 7

02.05 Diesel engine (general purpose)

18 02.05(a) Yanmar (Japan) 3TNV88-DSA

02.06 Industrial petrol engine

19 02.06(a) Honda (Japan) GX 270 SWC 4

20 02.06(b) Honda (Japan) GX 160 SX 4

02.07 Water pump (stationary)

21 02.07(a) Grundfos (Denmark) TP 32-320/2

22 02.07(b) Grundfos (Denmark) TP 32-380/2

02.08 Water pump (portable)

23 02.08(a) Honda (Japan) WB 20 X

26

….where generic products/items are related to special

products……….

Example (2): explanation

• BH II: Engines and turbines

• Split by generic (unspecified) and specified products (makes and models)

• Items under products, as appropriate

• Generic products/items have no special specifications

….similar as for the other BHs……….

27….to finalise the list for the pilot

survey….

Further activities:

the core product list

• Types of products in each BH

• Split of generic and specific products

• Items under each product

• Research new products (if any)

• Preparation of specification sheets

….discussion and agreement….

28….need current makes and models….

The core list: checking

• Availability of products

• Ensure makes are current

• Ensure models are current

• Update all specifications

..as near as possible to the start of the fieldwork….

• Product life cycles

• Particular attention to BH XI Computers and BH XVII Software

NB:

29….the next steps….

Pilot survey: arrangements

• Preparation of the final specification

sheets

• Decisions regarding data collection

• Development of the methods and tools for

analysis

• Timing

30

….test the product list and

the methodology….

Pilot survey: fieldwork

• Two contrasting regions:

One “difficult”, e.g. Africa

One “different”, e.g. Asia

• Try to research ALL products and items,

including generic and specific

• Propose any new products

31….to refine the list…….

Pilot survey: analysis

• Evaluation of the results

• Examine generic products/items

• Examine specific products/items

• Analysis of equivalent products submitted in specific positions

• Form groups/splits from products/items that worked

• Incorporate any new products/items

• Evaluate the overall structure of the list

32

….the target will be to finish the core

product list for the main survey….

Post-pilot survey activities

• Combine generic and specific products/items

• Delete any products/items

• Research current products and items

• Finalise the structure of the list

• Checking the list

• Finalise specification sheets/data collection

methods

• Finalise analysis procedures and tools needed

33

….main fieldwork will take place in

mid-2011

Summary

• Further work on the core product list

• Agree the structure and content of the list

• Finalise the list

• Finalise plans for the pilot survey

• Implement the pilot survey

• Analyse results

• Preparation of the core product list for the

main survey

34

…..thank you very much…..