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Acquisition and Lifecycle of Vehicles - Coggle Diagram
Acquisition and Lifecycle of Vehicles
Planning & Budgeting
First stage of the vehicle lifecycle
In this stage, business case is made in relation to the acquisition of a new vehicle.
Requires a thorough evaluation of what the organization needs from the vehicle acquired
Involves scheduling of exact acquisition timelines and also the allocation of budget for acquisition.
Corporate Culture
Funding availability
Organizational image
Other factors to consider:
Selection & Acquisition
Selection of Vehicles
Defining of Vehicle Specification
Acquisition of Vehicle
Lifecycle Cost
Fixed
Taxes
Purchase, loan or lease payment
Insurance/ registration
License and permits
Depreciation
Variable
Fuel
Maintenance
Labour
Spare parts
Tolls
Purchasing vs Leasing:
Purchasing - simply acquiring the vehicle by paying the price, either in the lump sum or via instalments.
Leasing - allows you to use the asset for a fixed term, by paying lease rentals periodically
Purchasing vs Leasing factors to consider.
Is the vehicle used for specific contract or can be used for other projects?
Upfront cost of vehicle acquisition
Administrative tasks involved
Size of fleet acquiring
Risk profile and culture in the company
Monthly cash flow budgeted for the usage of vehicle
The length of time the vehicle will be use
Types of leasing arrangement
Open-ended lease
Closed-ended lease (Predictable outcomes)
Evaluation Metrics for Vehicle Finance Options
Cost-Benefit Analysis
Payback Period
Return-on-Investment (ROI)
Net Present Value (NPV)
Internal Rate of Return (IRR)
Placing vehicles in services
Before placing vehicle in service
Insurance
Vehicle marked for safety / License plate displayed
Certificate of Entitlement (COE)
Vehicle Modification Approval
Operation & Maintenance
Fuel Management
Fuel consumption and cost
Monitoring fuel pricing tend
Fleet Management
Tracking of vehicle location
Driver's log
Vehicle utilization
Road Safety
Driver behavior
Accident rate
Maintenance Management
Fleet failure trend
Adherence fleet maintenance plan
ISO 55000: Asset Management
ISO 55002: Implementation and application guide
ISO 55001: Asset Management Requirement
ISO 55000: Overview, principles and terminology
Technologies for fleet asset tracking
Adopting technological systems will help fleet owner to track their vehicles and it's performance.
Examples of technologies for tracking:
Radio-Frequency Identification (RFID) tags
Sensors
Wireless modules for devices
Data Management Systems:
As integrated asset management database and software will provide the convenience for the staff to monitor the vehicles.
Example of such systems:
Maximo
Decommission & Remarketing
The decision to decommission the vehicle depends on:
The current condition of the vehicle
The mileage operated by vehicle to date
Age of the vehicle
"Whole-life" cost of owning the vehicle
Environment targets
Method of disposal upon decommissioning:
Retailing
Employee-sales
Trade-ins
Auctions
Public tender
Transfer to another entity
Controlled/specialized disposal