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• W1485404888 abstract "CASE DESCRIPTION This case presents a scenario to develop an equipment replacement policy for a large federal government contractor. This contractor serves as a facility maintenance manager for a federal government research and development organization. The maintenance company has a medium size fleet of cars, vans, pickup trucks and specialty vehicles. Currently, there is no vehicle replacement policy in the company. However, the company keeps some maintenance records of the vehicles that can be used in the development of a vehicle replacement policy. The objective of this case is to illustrate the basics of equipment replacement decision making and the practical application of the probability and statistics. The case is appropriate for use in a production/operations management, engineering, economics, business statistics or managerial accounting courses. The case should take no more than one hour of class lecture and two hours of preparation and research time from students. Total student time should not be more than four hours including research time. CASE SYNOPSIS The case is a simple but realistic application of business statistics models in the area of operations management and managerial accounting. It is an ideal case at the undergraduate level where students need practical application of statistical concepts. It superimposes generally difficult subject matter of statistics with easy to understand concepts of the operating cost of a small vehicle fleet. It will allow students to integrate simple regression, expected value and probability distribution concepts into vehicle replacement modeling. BACKGROUND A large federal government research facility is located in Southeastern part of Virginia. This facility is located on 810 acres of land. It has over 250 office and laboratory buildings including very large hangers, turbines and tunnels. The annual budget of the research facility is approximate $650 million of which 40 percent is operating budget. The research facility has about 2,000 direct employees and 2,500 contract/indirect personnel on the site. The maintenance budget is approximately 10 percent of the operating budget of the research facility. The facility management functions for this federal government research organization are contracted out to a private company. The private maintenance company is responsible for all repair and maintenance of facilities other than specific scientific equipment repair. The current maintenance contractor was awarded the maintenance contract in 2003. This contractor took over all office space, equipment, vehicles and repair part inventory from the previous facility management contractor. The company has an on-site office, workshop and other necessary facilities needed for building and equipment maintenance. It employs approximately 150 repairmen, supervisors and support staff. The repair job varies from simple light bulb replacement to complex turbine engine repair. The company maintains inventory of necessary tools and some repair parts on the site. Typically, a repairman responds to a service call according to a pre-determined priority scheme. A repairman completes a service call in one or more trips to the location of service call. Generally, the first trip involves assessment of the fault and determination of required parts for the repair, if it needs any parts. If repairman does not have the necessary parts with him, he would return to the shop. He will either to back to the repair site with necessary parts if parts are available in the part storage area. Otherwise, he will place an order of the part necessary to make repair in the future. Some repair jobs may require more than two trips. The service request completion time is one of the most important customer satisfaction measures in the organization. To deliver the repair services, the company maintains a fleet of trucks, vans, cars, and specialty vehicles. Typically a repair van or truck is assigned to a specific repairman. …" @default.
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• W1485404888 title "The Development of a Fleet Vehicle Replacement Policy for a Federal Government Contractor" @default.
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