Validation of Equipment Goods Data

International Comparison ProgramWorld Bank

ICP-Africa Regional WorkshopPretoria, South Africa

20 - 24 June 2011

Presentation Outline

Basic Heading and Item List Data Requirements National Level Validation

Checking Item Comparability Verifying Product Specifications

Regional Level Validation Global Level Validation Time Line for Data Collection

List of M&E Basic HeadingsBH Code Basic Heading Names1501111 Fabricated metal products, except machinery and equipment1501121 General purpose machinery1501131 Special purpose machinery1501141 Electrical and optical equipment1501151 Other manufactured goods n.e.c.1501211 Motor vehicles, trailers and semi-trailers1501212 Other road transport1503111 Other products

There are eight Machinery and Equipment basic headings with different size (number of items) and weight (expenditure values)…

Example of M&E ItemsItem Code

Item Name Item Type

150111101 Single skinned horiz. cyl. storage tank Unspecified150111112 Automotive tool set, Facom, Fr, BT.11A Specific150112101 Portable screw compressor Unspecified150113111 Welding equipment, Esab, SE, 410c Specific150113116 Electronic sander, DeWalt, USA, D 26420 Specific150113128 Skid steer loader, Bobcat IR, Ca, S 220 Specific150113138 Open fryer: double well Unspecified150114118 Laptop computer, Apple, USA, MacBook Pro Specific

Some Machinery and Equipment Goods items are specified models, some are generic…

Data RequirementsTerms and conditions# Label Proposed Observeda Order quantity Oneb Unit base price Amountc Currency Specifyd Delivery costs to be included Amounte Installation costs to be included Amountf Discount to be included Amount

Total unit price without VAT

Options:

Notes:

Proposed ObservedProduct Code Product Name Make (and nationality) *

Model *

Total unit price (LCU)

Unit base priceᵟ * Installation costᵟ * *Order quantityᵟᵟ * Other costs (please specify)ᵟDelivery cost⁰ * Discountᵟ

Metric Imperial Observed01 *02 *03 *04 *05 *06 *07 *08 *09 *10 *11 *12 *

Prices

Specifications

Specification

Options/Additional Specifications

Notes

Notice: Fill in all required cells, Options and Notes, then proceed to "Add record to / Update database" below.

Product Code Product Name 150115.04 Exercise equipment: bicycle

ProposedMake (and nationality)

Model Kettler (Germany)

Golf ST Pro

ObservedMake (and nationality)

Model Kettler (Germany)

Golf ST Pro

**

Unit base price 250 *Installation cost* 0 *Delivery costs* 35 *

Order quantity** 1 *Deductible tax* 0 Discount* 10

Total 275 *

Specification Metric National01 Computer for time counter yes yes02 Electronic system for pulse checking yes yes03 Electromagnetic braking system yes yes04 Max. user weight 130 kg 130 kg05 With silver side panels yes yes06 Dimensions (L x W x H) 100 x 53 x 131 cm 100 x 53 x 131 cm07

National Level Validation

• Adjust price if necessary with reference to deviation from proposed specifications

• Compute unit price in Local Currency Units and/or US Dollar using current XR

• Import data to Data Entry Module• Transfer to Data Validation Module• Validate using same procedures as Household

Consumption Data

Checking Item ComparabilityProduct Specification and Price Reporting Form: An Example

Equipment Goods Survey 2011Country: Timberland

150121115: Tractor unit (Specific)Proposed Product Specifications Observed ValuesMake (and nationality): Mercedes Benz (German) Mercedes Benz (Brazil)

Model: ABC–18-4x2 ABC–18-4x2a

Checking Item ComparabilityProduct Specification and Price Reporting Form: An Example

Equipment Goods Survey 2011Country: Timberland

150121115: Tractor unit (Unspecified)Proposed Product Specifications Observed ValuesMake (and nationality): Generic (Cf. Specifications) Scania (Swedish)

Model: Generic (Cf. Specifications) XYZ-19-4x2

Verifying Product SpecificationsSpecifications Proposed Observed Val01 GVW 18,000 kg 19,000 kg 02 Wheelbase 5,700 mm 5,500 mm 03 Engine capacity 12.0 L 11.8 L 04 Engine power output 292 kW 338 kW 05 Gearbox: number of forward speeds 16 14 06 Type of suspension: front Spring Spring 07 Type of suspension: rear Air Air 08 Type of braking ABS ABS 09 Type of cab 1,845 mm 1,900 mm10 With standard roof Yes Yes 11 Fixed fifth wheel coupling Included Included

Validation of product specification Comparable item

Data Requirements - MatchTerms and conditions# Label Proposed Observeda Order quantity One Oneb Unit base price Amount 10,500 c Currency Specify TL Dollarsd Delivery costs to be included Amount 15e Installation costs to be included Amount 0f Discount to be included Amount (–5%) - 525 g Deductible tax Amount

Total unit price without VAT 9,990

Options: Price of standard model. No options available.

Notes: The model specified is not available. Expected on the market early next year. Delivery costs not invoiced separately. Included in unit price.

Verifying Product SpecificationsSpecifications Proposed Observed Val01 GVW 18,000 kg 19,000 kg 02 Wheelbase 5,700 mm 4,500 mm 03 Engine capacity 12.0 L 14.8 L 04 Engine power output 292 kW 338 kW 05 Gearbox: number of forward speeds 16 14 06 Type of suspension: front Spring Spring 07 Type of suspension: rear Air Air 08 Type of braking ABS Regular 09 Type of cab 1,845 mm 1,900 mm10 With standard roof Yes No 11 Fixed fifth wheel coupling Included Included

Validation of product specification Not comparable item

Data Requirements – No MatchTerms and conditions# Label Proposed Observeda Order quantity One Oneb Unit base price Amount 10,500 c Currency Specify TL Dollarsd Delivery costs to be included Amount 100e Installation costs to be included Amount Nof Discount to be included Amount (–5%) - 525 g Deductible tax Amount

Total unit price without VAT 9,975

Options: Price of standard model. No options available.

Notes: Expert advice: This is not a comparable product. The price must be discarded.

Reporting M&E quotations

Regional Level Validation

Inter-country validation within regions uses similar procedure as Household Consumption: Setup Machinery and Equipment Goods

survey in the Regional Module Import average prices Generate Quaranta and Dikhanov Tables Organize data validation workshops as

required

Global Level Validation

Inter-country validation across regions involves iterations of the previous procedure :

Regional Level Validation Global validation

Global Validation Principles Only prices used in regional computation

will be used in global computation, and vice-versa;

No regional computation of PPPs will be carried out before validation is finalized at global level;

Need for harmonization of price and metadata between regional and global coordination agencies.

Timeline for data processing2011 2012

J F M A M J J A S O N D J F M A M J

Data Collection

Data Validation

AfricaAsiaCISLAC

Western AsiaCaribbean

PacificOECD/Eurostat

Thank you…