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47 New York Asset Works Fleet Anywhere COTS North Carolina SAP ERP North Dakota AssetWorks FA COTS Ohio Agile Assets 6.9 EAM Oklahoma Agile Assets 6.2 EAM Oregon AssetWorks FA COTS Pennsylvania SAP/Plant Maintenance ERP Rhode Island VUEWorks COTS South Carolina HMMS Customized Module Mainframe/homegrown South Dakota Main Frame Application Mainframe/homegrown Tennessee AssetWorks M5/People Soft COTS Texas AssetWorks M5 COTS Utah Fleet Focus 6.4 COTS Vermont AssetWorks M5 COTS Virginia AssetWorks M5 COTS Washington AssetWorks M5 COTS West Virginia In-house Mainframe/homegrown Wisconsin Fleet Focus FA/homegrown COTS Wyoming Agile Assets Fleet EAM Mainframe/homegrown 11 ERP 4 EAM 8 COTS 27
48 9. APPENDIX B. QUICK-GUIDE FOR FLEET COST ACCOUNTING This appendix is a quick guide with the steps necessary for performing fleet cost accounting. These steps are explained in detail in Section 3.3 and examples of Step 5 (Apply ABC Approach) are given in Chapter 4. Step 1: Identify Users of Cost Accounting Information Step 2: Review Current Cost Accounting Practices Step 3: Identify Direct and Indirect Costs of Fleet Services and Equipment Step 4: Determine Equipment Groupings ⢠4a. Classify Direct Costs by Activity ⢠4b. Identify Cost Drivers for Indirect Costs ⢠4c. Allocate Costs into Activities ⢠4d. Calculate Detailed Costs of Activities Step 5: Apply ABC Approach Step 6: Apply Markup for Contingencies Step 7: Determine a Method for Aggregating Costs to the Appropriate Level within Organization Step 8: Estimate Costs into Future to Understand Impacts from Use and Aging, Technology Change, and Deferral of Spending
49 10. APPENDIX C. PRESENTATION OF COSTS This appendix provides examples and recommendations of data visualization techniques for presenting fleet costs. The examples in Table 12 are not all encompassing but provide a starting place for fleet managers. Often information can be presented multiple ways, so the most effective visualization technique should be selected based on the needs of the target audience and how that audience plans to use the data to inform decision making. The environment in which state DOTs operate is dynamic and challenging. DOT fleet managers must proactively engage stakeholders by sharing fleet cost information that helps define roles, prioritize budgets, and build sustained support for their fleet activity. There are several barriers to effective communication about fleet cost information to non-fleet stakeholders: ⢠The concept of optimal fleet replacement timing is difficult. ⢠Fleet cost information can be difficult to access, organize, and track over time. ⢠Non-fleet stakeholders often see the fleet as a secondary, support function of the DOT rather than as a primary contributor to the DOTâs mission. ⢠Fleet managers may lack the training and expertise to organize fleet costs in a way that makes sense to non-fleet stakeholders. ⢠Fleet manager may not understand how to best present cost information to non-fleet stakeholders. Presenting cost information is not a static process. It requires collaboration with the intended audience to ensure that costs are conveyed in a way that is meaningful, impactful, and empowering. There are several stakeholder audiences that must review cost information to make decisions, from shop managers who need to know how pieces of equipment are performing to the governor who needs to understand fleet costsâ contribution to the state budget. The user groups that benefit from understanding fleet costs include staff at several levels: ⢠Shop ⢠District ⢠Fleet ⢠DOT ⢠Legislature ⢠General public These user groups have different information needs and different time constraints. For example, a shop manager will likely want to see detailed cost information about each piece of equipment, while the general public is more interested in high-level cost indicators and will not spend a significant amount of time poring over data. The communications process outlined in Figure 6 accounts for these factors and provides an overarching strategy for conveying cost information to different audiences.
50 ⢠Assess Available Cost Data. Determine the fleet cost data available for the DOT, including how far back it goes, which databases it is from, and the unit(s) presented. Additionally, deter the validity and accuracy of cost data, since cost estimates are only as good as the input data. ⢠Identify Target Audience. Using the user groups listed above as a guide, determine which audience(s) to present cost data to. The context in which communication of cost information takes placeâincluding the problem to be addressedâinfluences strategy, content, outreach channels, and style. ⢠Define Data Needs. Once identified, engage with the audience to understand what cost data they need and how they intend to use it to inform decision making. ⢠Identify Visualization Technique. There are several ways to present cost information, best based on the end goal of the audience reviewing the information. This appendix provides examples of how to select effective visualization techniques. ⢠Present Data to Audience. Gather the available data and present it to the identified audience using the visualization technique selected in the prior step. ⢠Evaluate Efficacy. Engage with the audience after sharing the cost data to evaluate whether the information provided was effective for supporting decision making and if anything needs to change in the future. This may prove challenging with audiences that have less frequent and less direct engagement, such as legislators and the general public, but the feedback from these stakeholders will give them the information they seek and avoid miscommunication. Taking Communication of Cost Information Seriously Communication must be an integral part of the cost accounting process, not just an add-on when the cost calculations are finished. Ongoing communication brings a network of practitioners, decision makers, and other stakeholders together and ultimately builds lasting relationships. Assess Available Cost Data Identify Target Audience Define Data Needs Identify Visualization Technique Present Data to Audience Evaluate Efficacy Figure 6. Process framework for communicating fleet costs