SECTION 6
FINANCIAL ANALYSIS
39
vehicle has been reached. To begin to implement this strategy, a first step must be taken to
gather additional information needed up front.
Working to lower emissions and operating costs, a comprehensive fleet management
program will examine the full lifecycle of vehicles to determine when it is best to retire,
repair, or replace vehicles in favor of cleaner, more efficient options. This strategy will
provide a decision support system to measure the existing performance and operating cost
of individual vehicles to determine at which point in time, either now or in the future, it
would be best to replace the vehicle, maintaining the optimal lifecycle of the existing asset
while minimizing overall emissions. The strategy involves understanding many things
including the average life, emission factors, cost of a vehicle over its lifecycle, and time
replacement relative to the maintenance and repair cost versus that of new technology.
Using both statistical modeling and decision analysis, individual vehicles in a fleet can be
evaluated as part of the entire fleet, in order to minimize the actuarial present value of all
future costs associated with the fleet, and thus the long-term consumption of scarce
resources.
Details are provided in Volume 3 of the CEAP Technical Documentation –
Comprehensive
Fleet Transformation Strategy – Initial Step”
.