Appendix I – Manual PSS Pricing Tool

This manual helps the user of the PSS Pricing Tool in using the tool correctly and to get a price indication of what Schiphol should pay for a PSS.

Needed information

Generally speaking, there are two sources of information required for the usage of the Tool. 1. Complete TCO tool with financial information

2. Specialist from TEC who knows, or can assess a potential supplier

Opening the tool

The first important step is to press

‘enable content’ or ‘inhoud

inschakelen’. This allow Excel to use the macros embedded in the Tool.

It could also be that Excel gives a second warning. Press ‘Yes’ or ‘Ja’.

Make Custom Save file

The first thing the user needs to do is to save the Tool under a unique name. This can easily be done by filling in the Project name and press ‘Make Custom Save File’.

General Parameters

The next step is to go to general parameters by pressing the ‘To General Parameters’ button. Here, the users must enter the following information:

The number of simulations (1000) and the confidence level (95%) are already filled in. The user needs to add the number of years the project/PSS will be used and the WACC as used in the traditional asset purchase.

Next, press the ‘To General Information Button’ 1

. 2

General Information

This is the sheet the user sees when first using the tool. There are 5 categories of uncertainty. For each uncertainty, the user must check the box if they category is relevant. If the box is clicked, the user must then press the ‘Input-‘ button which is next to the box to start the assessment. This is best done with someone from TEC who knows the supplier best.

Uncertainty Assessment

The user needs to follow the 6 steps as presented in the top left.

1. Choose which uncertainties are relevant for the supplier. Check the box relevance and the box ability to fill.

2. If an uncertainty is missing, below this list is an empty box of max three uncertainties which may be added by hand.

3. Score each uncertainty on the three criteria on a 4-point scale (1, 3, 5, 7). 1 is no uncertainty, 7 is a high uncertainty.

Basic estimate is the estimate of the amount of uncertainty. Rigour of Assessment is the possibility to check it internal for a supplier (for instance, material testing). Level of validation is whether the supplier is able to check it outside its own firm (for instance KPI specifications are provided by Schiphol).

4. Once all relevant uncertainties have been scored, the accuracy of score should say ‘WAAR’ in green.

5. Now press the button ‘To Importance Assessment’

Importance Assessment

The next step is to score the uncertainty on the amount of influence it might have on the total project. This score is given for 1-9, where 1 is no influence and 9 is extremely high influence. There is dropdown menu for only the uncertainties which have been selected as relevant. Once the user has scored all relevant uncertainties, the Complete will turn from a Red NO to green YES

Next click on ‘General Information’.

These steps are to be repeated for each category of uncertainty which is relevant. The procedure is identical.

Uncertainty Score

Now Press Uncertainty score in order to let the tool calculate the uncertainty score of each uncertainty.

An example of how this could look is given below:

Cost Drivers

Cost drivers are the costs in a project. Think of initial purchase and maintenance costs. These cost drivers come directly from the TCO tool. By pressing add cost driver button, the user can add a cost driver to the list.

Now press the Cost Driver – Uncertainty link button

Cost Driver Uncertainty Link

The user now needs to indicate whether an uncertainty has influence on a cost driver or not. The options are Yes and No. Once this has been done for all uncertainties, the overview might look like the one below here.

Cost Driver Uncertainty Score

The sheet will look something similar like the picture above. When you scroll down the uncertainty score of each cost driver is visible.

If a distribution is known, it can be changed from triangular into a different one. But it is suggested to not change, unless absolutely certain.

Next scroll up again and hit ‘Initialise NPV sheet’ if it is the first time that you use the tool or when an adjustment has been made to the number of cost drivers. This initialises the NPV sheet for later usage.

Checking the ranges

First press ‘Get Ranges for Adjustment’ and then Reset/Initiate Revision. This will load the ranges into the table.

Based on the uncertainty score of each cost driver, the cost range is determined. The range assigned to each cost driver can be seen in the figure on the right, which look like a tornado. If no adjustments are needed, the user may press ‘Go to NPV-INPUT Sheet’.

NPV INPUT Sheet

Above the user sees an example of the NPV sheet. Above the double line, the user copies the cashflow from each cost driver from the TCO tool. If any help is needed, the CEC, Business Controller or Financial Advisor should be able to help. The PV Sum shows the value as it is present in the TCO tool. Check this. The value in the row of PV simulation is a value which is part of the simulation. Once completely filled in, the user presses on the ‘To PSS Dashboard’ button.

PSS Dashboard and simulation

The user then finds this empty dashboard. With all parameters and information set, the user can press Simulate! In order to commence the simulation. The simulation takes can 5 to 30 seconds and the screen may flicker some, let it run until it is completely finished.

From the overview, an assessment can be made if some of the ranges might be too big or too small. It can be that uncertainty is under or overstated. This can be adjusted by pressing ‘Adjust Ranges’, which gives the ranges sheet where the ranges can be adjusted.

For each Cost Driver, only if needed, the range can be adjusted. The figures need to be for the Revised Min column between -1,00 (-100%) and 0 (0%) and for the Revised max between 0 (0%) and 1,00 (100%). Once finish, click on go to NPV-Sheet and the ‘To PSS Dashboard’. Then click again on simulate to let the simulation rerun for the new result.