Potential economies of scale at the university of Bradford |
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| Authors: | John Dunworth Anthony Bottomley |
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| Institution: | (1) University of Bradford, Richmond Road, Bradford, UK |
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| Abstract: | Conclusions It seems that considerable potential economies of scale exist if the University of Bradford is representative. If enrolment is doubled with present accommodation surpluses and course structures, then average costs per student may fall by between 11 and 38 percent, depending upon the course involved and the assumptions made. Further substantial cost reductions would arise with a course structure which handled two intakes a year.However, we became increasingly aware during our research of the absence of any built-in incentive to use resources efficiently. This was most obvious in the case of buildings which were designed in a manner which fits academic requirements more like a sack than a glove, and which, once constructed, were regarded as free goods. It was also the case in respect of current items of expenditure, for under the present system of British university financing and planning, universities know in advance, subject to certain specific exceptions, their income for a five-year period and the approximate number and type of students they will enrol. Thus cost per student over the quinquennium has been determined before the students enter. Once the quinquennium has begun there are few real ways to effect economies since revenue and therefore expenditure have already been determined, nor is there any incentive for universities to cut costs per graduate. The critical time to achieve economies is therefore before quinquennial recurrent grants are fixed, and the power to do this lies with the University Grants Committee and the Department of Education and Science, not with the individual universities. Thereafter universities would need to react to such economies by implementing them as painlessly as possible.This paper demonstrates that substantial economies may be expected in per-student costs at the University of Bradford as the number of undergraduates increases. Further details may be obtained from the authors. |
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