Vehicle Selection

Question 1

Questions

Answer 1

Answers

Question 2

3.1.1 What is a Vehicle selector list? (p.31)

Answer 2

A predetermined list of vehicles that drivers or others can choose from to meet their vehicle requirements

Question 3

3.1.2 What are some questions that managers should address in order to help them in the vehicle selection process? (p.31)

Answer 3

• How many choices of vehicles exist?
• What is important to management?
• How much input do drivers have?
• Can drivers purchase options?
• Philosophy – work or perk?

Question 4

3.1.3 Why can offering too many choices be a disadvantage? (p.31)

Answer 4

1. Greater administrative burden
2. If fewer options are available and a fleet is more consistent, greater discounts will be offered when purchasing

Question 5

3.1.4 List some of the factors a Fleet Manager may consider in the vehicle selection process. (p.32)

Answer 5

1. Fleet managers will need to determine what factors in vehicle selection are important to their organization’s leadership.

Question 6

3.1.5 How can a Fleet manager get driver input and what information should they ask for? (p.32)

Answer 6

1. Annual survey or through a fleet steering committee
2. Preferences on color, vehicle model, and options for the vehicle including entertainment features, style upgrades, GPS and towing capabilities

Question 7

3.1.6 What are some considerations to be made when deciding whether the vehicle should be work or perk oriented? (p. 32)

Answer 7

1. If a fleet manager wants to allow the vehicle for the driver’s own convenience or luxury, a manager needs to decide which features will or will not be paid for by the organization.
2. If the decision is made to allow the driver to purchase luxury options it needs to be discussed before the vehicle is purchased.
3. Depending on the organization philosophy, the driver’s responsibilities, and human resource factor, an organization may place more or less emphasis on the “perk” when making vehicle selection.
4. A public entity would typically lean more towards the work end of the spectrum.

Question 8

3.3.1 What are some concerns of stakeholders in the organization when developing selection criteria? (p.33)

Answer 8

vehicles will be most appropriate for a specific task

Question 9

3.3.10 How can the Fleet Manager manipulate the results of a selection matrix? (p.38)

Answer 9

Changing weight

Question 10

3.3.2 List the four steps in the selector development process. (p.34)

Answer 10

1. Identify Selection criteria
2. Rank Criteria
3. Assign a weight to criteria
4. Conduct a trial Veh selection

Question 11

3.3.3 What stakeholders should the Fleet manager seek feedback from? (p.34)

Answer 11

1. Drivers
2. Staff
3. Customers
4. Organizational leadership

Question 12

3.3.4 List some factors that might impact the vehicle selection criteria. (p.34)

Answer 12

1. Terrain the vehicle will typically travel upon, vehicle duty cycle (8, 10, 12 hour days)
2. Environmental factors (snow, heat, dust, etc)
3. Cost of purchase, vehicle life cycle costs
4. Safety

Question 13

3.3.5 What are quantifiable and non-quantifiable factors? (p.34)

Answer 13

Quantifiable: Can be measured - such as cost, warranty, maintenance, and environment
Non-Quantifiable: Measured through subjective methods - safety, image, and morale

Question 14

3.3.6 What should the Fleet Manager keep in mind while ranking selection criteria? (p.35)

Answer 14

Managers should aim to keep the big picture of the organization in mind when ranking the criteria by knowing what is important to the organization and which criteria will return the most value

Question 15

3.3.7 What should the Fleet Manager consider while assigning a weight to the selection criteria? (p.35)

Answer 15

1. Consider the criteria and quantify how much more important each successive factor is to the fleet
2. The manager will not only determine the difference in weight, but also quantify which criteria have the same relative importance and assign weights accordingly
3. When ranking and assigning weights to the criteria is complete, the fleet manager needs to get management’s approval for the assigned value

Question 16

3.3.8 How does the Fleet Manager test vehicle options against the selection criteria? (p.36)

Answer 16

Conduct a trial comparison w/ 2-3 vehicles

Question 17

3.3.9 How does the Fleet Manager determine a points total in the selection process? (p.37)

Answer 17

The fleet manager then scores each vehicle from 1 to 3 in each of the selection criteria and multiplies that score by the applicable weight to determine a point total.

Question 18

3.4.1 Who should be included in a user input group and what are the responsibilities of the group? (p.38)

Answer 18

1. Drivers, managers, supervisors, and maintenance workers that have the authority to make recommendations
2. User input groups should evaluate the new products and options while keeping clear records of their notes in order to summarize and present for consideration.
3. The input group can use benchmarking or surveying similar organizations to use their successes and failures to improve the outcomes
   for your organization

Question 19

3.4.2 How should the Fleet Manager treat the input provided by several input groups? (p.26-38)

Answer 19

In the end it is the fleet manager who makes the final recommendation on which vehicles to order and what crucial business steps to take.

Question 20

3.4.3 Who makes the final decision on which vehicle to purchase? (p.38)

Answer 20

FM

Question 21

3.4.4 What should be done once the final decision on vehicle selection has been made? (p.38)

Answer 21

FM needs to reconnect with the group that provided input. - the final decision needs to be explained to ensure that the user group understands their input was considered

Question 22

3.5.1 What is Lifecycle Cost Analysis? (p.40)

Answer 22

1. AKA (TCO)

Question 23

3.5.2 How is Lifecycle Cost Calculated? (p.40)

Answer 23

Initial Cost + Operating & Maintenance Costs – Salvage Value = LIFE CYCLE COST

Question 24

3.5.3 What is the major advantage of Lifecycle Cost Analysis? (p.40)

Answer 24

It accounts for the operating costs of ownership and salvage values, yielding a better picture of the true costs of owning the equipment.

Question 25

3.6.1 How are contracts awarded in the public and private sectors? (p.43)

Answer 25

Competitive Bidding

Question 26

3.6.2 What is an organization legally bound to do when beginning the competitive procurement process? (p.43)

Answer 26

• Fully disclose all known information which would potentially influence a Bidder in deciding whether to bid and what price to bid
• Treat all Bidders fairly and equally throughout the process, from qualification through evaluation to final award
• Award a contract which is substantially similar to what was originally sought in the Invitation / Request
• Avoid all undisclosed preferences and potential conflicts of interest between Bidders and evaluators
• Act in good faith to all bidders throughout the competitive bid process
• Reject any bid (no matter how attractive) which is substantially non-compliant
• Negotiate no changes to scope of work, price, or any other major component with any bidder without offering every other bidder the
same opportunity.

Question 27

3.6.3 What is the FASB and what do they do? (p.44)

Answer 27

1. Financial Accounting Standards Board
2. Organization that regulates the financial accounting and reporting aspects of a transaction.
3. They provide standards that investors and financial report users rely upon to help in decision-making.
4. Publishes rules relating to how vehicle purchases and leases are reported on financial statements.

Question 28

3.6.4 What do lease accounting standards require the leaser to do? (p.44)

Answer 28

Currently lease accounting standards require leasers to classify the lease as a sales type:
lease, direct financing lease, leveraged lease, or operating lease