by alain l. kornhauser, phd professor, operations research & financial engineering director,...
DESCRIPTION
Quality of Life 101: Important Elements Environment – Clean air, water, … Employment – “High Quality” Jobs – Correlated with Crime/Personal Safety Mobility – Personal Desire with Societal Oversight Priorities: Safety, Efficiency, Equity, Comfort, Convenience, …TRANSCRIPT
by
Alain L. Kornhauser, PhDProfessor, Operations Research & Financial Engineering
Director, Program in Transportation Faculty Chair, PAVE (P Autonomous Vehicle Engineering
Princeton University
Presented at
Kick-off MeetingJanuary 30, 2015
Putting together theNew Jersey Center for Automated Vehicles
@ Fort Monmouth
Quality of Life 101: Important Elements• Environment– Clean air, water, …
• Employment– “High Quality” Jobs– Correlated with Crime/Personal Safety
• Mobility– Personal Desire with Societal Oversight Priorities:
Safety, Efficiency, Equity, Comfort, Convenience, …
Founding Premise• Automated Vehicle Technology can evolve such that: – If added to a single vehicle, – The probabilities that this vehicle will be involved in various
types of accidents are substantially reduced.
Overall the expected Liability Cost Savings ($L) attributed to those avoided accidents
>Installed Cost ($C) of that Technology
Founding PremiseIf ($L) > ($C) of that Technology
•Then there is an enormous Business Case for the adoption of that technology by that vehicle •and every other vehicle.•The technology more than pays for itself from the savings that it delivers. PLUS:
• The created “High Quality” Jobs, • Improved Personal Safety • Avoided Personal Disruptions• Improved the Environment, and • Arguably Improved: Efficiency, Equity, Comfort, Convenience, …
All Come for FREE!
Fundamental Focus of the NJ Center for AV@ Fort Monmouth:
1. Advancing AV Technologies that ($L) > ($C)– Facilitating Fundamental R&D on
• enabling sensor and control technologies, and • Vehicle<->driver/rider<->WWW<->Vehicle… interface elements
2. Quantifying the Expected Accident Probability implications of those AV Technologies.– To enable positive insurance and risk mitigation interests to
propel adoption that also greatly benefits 3. Testing and Certification of those AV Technologies4. Support Technically the Public Oversight/Regulation of
those AV Technologies 5. Support Technically the Commercialization of those AV
Technologies
Assets We Have:
1. Enabling State LegislationS-734 passed NJ Senate 35-0Assembly bill waiting to move. We can help.
Assets We Have:
1. Enabling State LegislationS-734 passed NJ Senate 35-0Assembly bill waiting to move. We can help.
2. Option on FacilitiesMcAffee Center
25 acre Campus100,000 ft2 office2 large 1st class garages
Eastern Gated Test Site80 acresExisting streets and buildings
Limited use of Fort’s exiting roadways
Vehicle Bays
McAfee Office Building ~ 100,000sf
Support Buildings
Princeton University Center for Research of SmartDrivingCars (CRS)
at Fort Monmouth McAfee Complex
1250’ x 865’ ~ 25.8 acres
Princeton University Center for Research of SmartDrivingCars (CRS)
at Fort Monmouth Exclusive Use Roadways Area
~ 60 acres
Vehicle Bays
McAfee Office Building ~ 100,000sf
Support Buildings
Princeton University Center for Research of SmartDrivingCars (CRS)
at Fort MonmouthMixed Use Roadways
½ The Fort ~ 1 sq. mile
Exclusive Use
Roadways
Assets We Have:
1. Enabling State LegislationS-734 passed NJ Senate 35-0Assembly bill waiting to move. We can help.
2. Option on FacilitiesMcAffee Center Eastern Gated Test SiteLimited use of Fort’s exiting roadways
3. Many interested entitiesUniversities: Princeton, UTRC2, U Md, Monmouth, NJITInsurance: Munich Re, WSTIP, ICNJ, NJM,Technology Co: Siemens, MobilEye, Rosco, Soterea, Lam Cloud Foundations & Corporations: DCH Autogroup, Teen Safety Foundation, Comcast, Verizon, Public & non-Profits: NJ Transit, GCTC, APTA, ATRA, Consultants: HNTB, EPS, Public Sector: NJ DoT, MVC, PANYNJ, NJTPA, L&PS
Organizational Stucture: • Example: Insurance Institute for Highway Safety
http://www.guidestar.org/ReportOrganization.aspx?personid=JOHN%20MULLEN&ein=53-0246204
• Mission StatementThe Insurance institute for highway safety is an independent, nonprofit, scientific
and educational organization it identifies and evaluates ways to reduce the human and economic losses resulting from motor vehicle crashes and communicates the results of that research to the public, federal, state, and local highway and vehicle safety officials, vehicle manufacturers, insurers, the media, the research community and others (IIHS)
The NJ center for automated vehicles @ Ft. Monmouth is an independent, nonprofit, scientific and educational organization. It advances and evaluates automated vehicle technologies to reduce motor vehicle crashes and communicates the results of that research to the public, federal, state, and local highway and vehicle safety officials, vehicle manufacturers, insurers, the media, the research community and others (NJ CAV@FM)
Organizational Stucture: • Example: Insurance Institute for Highway Safety
http://www.guidestar.org/ReportOrganization.aspx?personid=JOHN%20MULLEN&ein=53-0246204
• Impact StatementResearch projects undertaken identify and evaluate methods of reducing the personal
injuries and property damage resulting from the use of motor vehicles (IIHS)
Research projects undertaken:• Advancing AV Technologies that ($L) > ($C)• Facilitating Fundamental R&D on enabling sensor and control technologies, and
Vehicle<->driver/rider<->WWW<->Vehicle… interface elements• Quantify the Expected Accident Probability implications of those AV Technologies.• Test and Certify those AV Technologies• Support Technically the Public Oversight/Regulation of those AV Technologies, and • Support Technically the Commercialization of those AV Technologies (NJ CAV@FM)
Business Plan/Membership Stucture:
• Example: Insurance Institute for Highway Safety : 501 C6
http://www.guidestar.org/ReportOrganization.aspx?personid=JOHN%20MULLEN&ein=53-0246204
• Membership: http://www.iihs.org/iihs/about-us/member-groups
~ 100 Members (Munich Re, USAA, Progressive, GEICO , … Not: WTSIP)
& 3 “Funding Associations (American Insurance Association, National Association of Mutual Insurance Companies, Property Casualty Insurers Association of America )
Business Plan/Membership Stucture: Create a 501 c6 (Mon-profit Trade Association)
Tax exempt Contributions not tax deductibleCompanies write-off contributions as business expenseRevenue can not be funneled to a single partner/memberCan participate in joint project with members as long as sponsoring
entity funds Center and Member separately
Proposed Membership levels For NJ-CAV@FT: Founding/Charter MembersSupporting MembersAffiliated MembersPublic Agency & Non-Profit MembersUniversity MembersAssociate Members
Business Plan/IPO (Initial Private Offering):
All have an OPTION to Join at Chosen Level OPTION expires on April 1.
Level Board composition Annual commitment pledged for four years
Founding/Charter Members
1 per member, senior board positions
$250,000/yr
Supporting Members
0.3 per memberJunior board positions
$100,000./yr
Public Agency & Non-Profit
0.25 per memberJunior board positions
Contract authority
University Members
0.2 per member $5,000/yr
Associate Member No board representation
$25,000/yr
Center Membership (Revenue $ in thousands)
Founding/
CharterSupporting Collaborator
Associate Collaborator Sum
Revenue ($) Note
Founder's Fee (one-time) $ 250 $ 100 $ 25 Annual Contribution $ 250 $ 100 $ 25 Founding Members 5 5 5
15 $ 1,875
EoY 1 Members 6 7 7
20 $ 2,375
EoY 2 Members 7 10 10
27 $ 3,000
Steady-state Members 10 12 12
34 $ 4,000
FTE/member EoY 1 2 1 0.5
4
FTE/member EoY 2 3 2 0.5
6
FTE/member Steady-state 10 5 0.5
16
Office Space (sf) EoY 1 1,800
1,050
525
3,375 150 sf/FTE
Office Space (sf) EoY 2 3,150
3,000
750
6,900 150 sf/FTE
Office Space (sf) S-S 15,000
9,000
900
24,900 150 sf/FTE
Garage Space (# bays) EoY 1 10 1.75 0.7
12
Garage Space (# bays) EoY 2 12 2.5 1
16
Garage Space (# bays) S-S 14 3 1.2
18
Center Management (Expense$ in thousands)
NumbersExpenditure
($) Note
Founding Staff 2
EoY 1 Staff 4
EoY 2 Staff 5 Steady-state Staff 7 Office Space (sf) Start 300 $ 6
150 sf/FTE @ $20/sf
Office Space (sf) EoY 1 600 $ 12
150 sf/FTE @ $20/sf
Office Space (sf) EoY 2 750 $ 15
150 sf/FTE @ $20/sf
Office Space (sf) S-S 1,050 $ 21
150 sf/FTE @ $20/sf
Salary*2.5 ($) Start $ 625 $125Overhead ($) EoY 1 $ 1,300 $130 Overhead ($) EoY 2 $ 1,688 $135
Overhead ($) S-S $ 2,450 $140Research ($) EoY 1 $ 1,150
Revenue$-Office$-Salary$
Research ($) EoY 2 $ 950
Revenue$-Office$-Salary$
Research ($) S-S $ 1,263
Revenue$-Office$-Salary$
Budget
Value to Your Organization:Contributions from around the room
Mod
al D
imen
sion
Sector Dimension
CommercializationCertificationResearch
Tran
sitCa
rsTr
ucks
Center’s Activity Matrix
Overall Traditional Focus:Automated Collision Avoidance
Mod
al D
imen
sion
Sector Dimension
CommercializationCertificationResearch
Tran
sitCa
rsTr
ucks
Center’s Activity Matrix
NJ-CAV@FM Market Focus:Automated Collision Avoidance
Individual Consumers
Fleets
Initial Project Focus:
Mod
al D
imen
sion
Sector Dimension
CommercializationCertificationResearch
Tran
sit
Cars
Truc
ks
Center’s Activity Matrix
Individual Consumers
Fleets
• Vote: Keep going or punt?• If we aren’t punting:
– Form an interim board of volunteers– Create 501 c6– Draft bylaws– Draft a Strategic Plan
• April 1– See who has exercised their option– If sufficient have
• Hire skeleton staff• Finalize deal with FMERA for facilities• Create on-going board• Finalize strategic and tactical plan
Next Steps
