Asset Replacement Management Danny Brashear, CEM

 Is it a writing process?  Replacement forms  Using FASTER’s 15-point replacement system  Do your customers know how it works?  Is it part of your business plan?  Why can’t you keep it another 8-years?  Does it really affect your Fleet Operations? Replacement Plan

 As soon as you purchase the new Asset  Life cycle costing is critical in managing your Fleet  How do you depreciate the asset?  Straight line  Remaining balance  Inflation rate  Salvage rate  Life expectancy When Does the Process Start?

15-Points

Replacement Team  Fleet Manager  Shop Manager  Parts Manager  End User Department  Manager/Owner  Drivers  Purchasing / Finance Personnel

 Which options will be standard?  Who decided on those standards?  Did you include the resale side when deciding the standards?  What about the safety of the employee?  Document these standards per class  How to handle or charge for additional options Asset Class Standards

 Downtime increasing  More Technicians  More bays  Cost per meter goes up  Residual value is less  Replacement cost is higher  Obsolete Parts Affect on Your Fleet Operation

 A few reports to look at  109 Equipment Replacement  111 Equipment Replacement by date  112 Average Equipment Age by class  113 Equipment Usage  118 Auction Results  125 Equipment Cost Exception  133 Cost Per Meter Exception  150 Equipment History: Cost & Quantity Justify the Replacement

 Even if you don’t collect replacement funds  Set up different replacement accounts  Notify your customers  You want your customers to rely on you for the replacement information for their budgets  Re-visit your plan yearly  Update your business plan Replacement Fund

 Include all components  Working environments  Usage of the asset  Multiple drivers or operators  Inflation rate  Parts & Service available  Warranty provided Plan for the Replacement

 Put a good plan together  Set up replacement funds even if you don’t collect  Build your replacement team  Provide this service to your customer  Justify your data with reports  Revisit your plan yearly  Update your business plan as needed Recap

Questions?

Danny Brashear, CEM ext Enjoy the rest of the FASTER conference! Thank you for attending!