Vehicle Selection Study Guide Questions Flashcards
What is a vehicle selector list? (pg 31)
Predetermined list of vehicles that drivers or others can chose from to meet their vehicle requirements.
What are some questions that managers should address in order to help them in the vehicle selection process? (pg 31)
How many choices of vehicles exist? What is important to my management? How much input do drivers have? Can drivers purchase options? Philosophy - work or perk?
Why can offering too many choices be a disadvantage? (pg 31)
It can cause greater administrative burden and as well as prevent bulk discounts.
How can a Fleet Manager get driver input and what information should they ask for? (pg 32)
Annual Survey or Fleet Steering Committee.
Preferences on color, vehicle model, and options for the vehicle including entertainment features style upgrades, GPS and towing capacity.
Why is it important to select the right vehicle? (pg 33)
Upfront cost is significant and a suboptimal vehicle will have to wait for replacement.
List some of the factors a Fleet Manager may consider in the vehicle selection Process. (pg 31 - 32)
Function, Warranties, Safety, Cost, Disposal, Availability, Morale, Image, Maintainability, Environment.
What are considerations for a Government Fleet? (pg 33)
They are conscious due to the use of tax dollars to acquire vehicles and the public perceptions about spending. Additionally they will purchase vehicles at lower trim levels and with fewer options.
What are considerations for a Corporate Fleet? (pg 33)
Concerned with Image projected by the company and are more likely to use a vehicle as an incentive to retain staff.
Why is it important to select vehicles that meet company needs? (pg 33)
Its crucial to determine vehicle function to determine which vehicle will be most appropriate for a specific task.
What vehicle selection input should be solicited from management? (pg 33)
Organization priorities, cost considerations, work vs perk, exterior graphic designs and environmental concerns.
What are some concerns of stakeholders in the organization when developing selection criteria (pg 33)
Leadership: Cost Concerns
HR: Relation Concerns
Driver: Safety
Sales Management: Reliability
List the four steps in the selector development process (pg 34)
Identify Selection Criteria
Rank The Criteria
Assign a weight to the criteria
Conduct a trial vehicle selection
What are quantifiable and non-quantifiable factors? (pg 34
Quantifiable Factors: Cost, Warranty, Maintenance and Environment. Things that can be measured and tested in non-subjective ways.
Non-Quantifiable: Safety, Image, Morale. Measured through subjective methods.
What should the Fleet Manager keep in mind while ranking selection criteria? (pg 35)
What is important to the organization and which criteria will return the most value to the organization.
What should the Fleet Manager consider while assigning a weight to the selection criteria? (pg 35)
They will quantify how much more important each successive factor is to the fleet.
How does the Fleet Manager test vehicle options against the selection criteria? (pg 36)
Conducting a trial comparison. They will evaluate 2-3 vehicles, score the vehicles and compare results.
How does the Fleet Manager determine points total in the selection process? (pg 37)
The fleet manager will score each vehicle from 1-3 in each selection criteria and multiplies the score by the applicable weight to determine a point total.
Who should be included in a user input group and what are the responsibilities of the group? (pg 38)
Drivers, Managers, Supervisors Maintenance Workers
Evaluate new products and options while keeping clear records of their notes in order to summarize and present for consideration.
Who makes the final decision on which vehicle to purchase? (pg 38)
The Fleet Manager
What should be done once the final decision on a vehicle selection has been made? (pg 38)
The fleet manager should reconnect with the Input Group so they understand that their input was considered and valuable.
What is Lifecycle Cost Analysis? (pg 40)
A technique used primarily to evaluate bids on a basis other than low purchase cost. They incorporate evaluation categories for initial cost, operating and maintenance cost (over a specified life) and a salvage value (at life end).
How is Lifecycle Cost Calculated? (pg 40)
Initial Cost - Operating & Maintenance Costs - Salvage Value = Life Cycle Cost
What is the major advantage of a Lifecycle Cost Analysis? (pg 40)
It accounts for the operating costs of ownership and salvage values, yielding a better picture of the true costs of owning the equipment.
How are contracts awarded in the public and private sectors? (pg 43)
Competitive Bidding Process
What is an organization legally bound to do when beginning the competitive procurement process? (pg 43)
- Fully disclose all known information which would potentially influence a bidder in deciding whether to bid or what price to bed.
- Treat all bidders fairly
- Award a contract that is substantially similar to what was originally sought in the invitation.
More on page 43 …
What is FASB and what do they do? (pg 44)
Financial Accounting Standards Board
Regulates the financial accounting and reporting aspects of a transition. They provide standards that investors and financial reports users rely upon to help in decision making. The publish rules relating to how vehicle purchases and leases are reported on financial statements.
What do lease accounting standards require the leaser to do? (pg 44)
Classify the lease as a sale type lease, direct financing lease, leveraged lease or operating lease.
