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91 C H A P T E R 3 Once the tool has been installed, initial setup and configu- ration are required to customize the replacement factors to your agencyâs specifications. The guide describes the replace- ment factors in detail and explains how they are used. Many of the replacement factors have default values preloaded in the optimization tool. Each of the preloaded factors can be adopted as is or changed to fit the agencyâs needs. 3.1 Tool Setup Go to the tool folder C:/Equipment Replacement Opti- mization Tool on the computer and open the Configu- ration File, which is named â00Configuration.xlsx.â See Figure 6. Note: In some versions of Microsoft Windows and Excel, an error message will appear when opening the tool directly from Windows without already having the Excel program open. This can be remedied by opening Excel before opening the toolâs spreadsheets. Formatting in the configuration file is as follows: â¢ Blank white cells require your input to set up the tool. â¢ White cells with preloaded data contain the default values for replacement factors that can be adopted as is or can be changed to meet the agencyâs needs. â¢ Blue cells are locked and cannot be modified. Note: Rows or columns cannot be added to the configura- tion file because many of the toolâs calculations are linked to specific cells in the tables. All of the toolâs spreadsheets are password protected to prevent accidental changes. 3.2 Tool Configuration Follow the steps below to review the default values and enter the values that meet the agencyâs needs. This process can occur in any order. Agency Name In Cell B3, input the organizationâs name (Figure 6). It will appear on most of the files within the tool. Planning Year In Cell B5 in Figure 6, use the drop-down box to select the year in which to begin the equipment analysis. Normally, this should be the current year; however, the tool is preset to go back to 2015. Note: This cell must be updated annually at the beginning of the fleet planning process. Agency Class Codes When opening the tool (Figure 7), the white cells in the first column will be blank. In these cells, input the agencyâs exist- ing class codes corresponding to the universal class codes and descriptions shown in the second and third columns. Any alphanumeric numbering scheme can be used as long as the codes match the equipment history data that will be later uploaded or input to the tool, as discussed hereafter. Note: The codes in the first column must match exactly the codes used in the data entry sheet (see Chapter 4). Only one class code at a time may be entered into the class code cells. If the agency has more than one class code corre- sponding to the default class codes, the user can either analyze all of the units at one time or separate them into individual classes. The following example illustrates how to do this. Assume that an agency has four classes of Â½-ton pickup, as follows: Class 1234âRegular Cab, Gas 90 units Class 1235âExtended Cab, Gas 34 Class 1236âRegular Cab, Diesel 7 Class 1237âExtended Cab, Diesel 157 Total 288 units Tool Setup and Configuration
92 All 288 units can be analyzed together or each class can be analyzed separately. To analyze only Class 1234, for example, enter the number â1234â into the configu- ration file as the agency class code. To analyze all of the units together, enter all of the units into the data entry file under the same code. Current Replacement Cost When opening the optimization tool (Figure 8), the white cells in Column F will be blank. Input the average replace- ment cost for vehicles in the specific class. Replacement cost is the current cost to replace that class of equipment, including the cost to outfit it with lights or radios, if applicable. Equipment replacement costs may vary for individual equipment types within a class. For example, pickups may be 2-wheel drive or 4-wheel drive, and may or may not have extended cabs. Enter the average replacement cost for vehicles within a class, or enter a replacement cost that represents the majority of the equipment types within a class. Note: The replacement costs should be updated each year. Hourly Downtime Rate The hourly downtime rate in Column G in Figure 8 is the agencyâs internal hourly rental rate for each equipment class. The default values preloaded into the tool are based on indus- try norms. Use the default values or input values specific to the agency. Replacement Planning Targets Columns H, I, and J in Figure 9 contain default replacement planning target values for each equipment class based on Figure 6. Configuration file. Figure 7. Equipment class code in data entry.
93 Figure 8. Replacement cost and hourly downtime rate entry. Figure 9. Replacement planning targets. age, miles, and hours. These values are used only to identify potential replacement candidates; these values are not hard- and-fast replacement standards. Use the default values or input values specific to the agency. Accumulated Depreciation Columns K through AI in Figure 10 (Columns E through J are not shown) contain the default accumulated deprecia- tion percentages for each equipment class by miles or hours. These depreciation rates were developed from research con- ducted in this NCHRP project and represent industry norms. For example, a sedan with 30,000 LTD miles has accumu- lated depreciation of 42%, and a sedan with 40,000 miles has accumulated depreciation of 51%. The tool interpolates to compute depreciation between these two mileage values. Use the default values or input values specific to the agency. Universal Cost Factors The tool uses several universal factors for cost and replace- ment analyses (Figure 11). These factors, which begin on Row 64, are described. Use the default values or input values specific to the agency.
94 Figure 10. Accumulated depreciation. Figure 11. Universal cost factors. â¢ Direct Overhead (Cell E64) is applied to the labor cost downloaded from the agencyâs equipment information systems to arrive at a loaded labor cost for equipment maintenance. The tool contains a default value of 45%. The guide describes how the default value was derived and provides a template for developing a direct overhead factor for the agency. Review this factor carefully to make sure it is the correct value for the agency. â¢ Indirect Overhead (Cell E65) is applied to the labor cost in the same manner as the direct overhead factor. The tool contains a default value of 90%. Refer to the guide to develop a value specific to the agency. â¢ Inflation Rate (Cell E66) is the default annual inflation value of 2.5%, which can be changed if needed. â¢ Obsolescence Rate (Cell E67) is applied to fuel costs over the life of the equipment. The tool contains a default value of 2.0%, which can be changed if needed. â¢ Equipment Replacement Priority Factors (Cells E70 and E71) are used by the tool to compute a replacement pri- ority ranking for each equipment unit based on its LTD cost and condition. These cells contain default values of 40% for cost and 60% for condition. Refer to the guide for an explanation of how the priority weighting factors are used. The tool setup and configuration process is now complete and importing the agencyâs equipment data can begin.