Use of Historical Work Activities to Evaluate Fleet Management Strategies / Toronto Transit Commission
The Toronto Transit Commission initiated a review to determine optimal bus life for their fleet as well as assess the potential for hybrid propulsion technology. Through specialized modelling methods, a data-driven approach was used to assess the total cost of ownership (TCO) for their fleet vehicles. This review analyzed historical asset work order records along with other capital and operating expenses to help identify the optimal asset life cycle. The four key areas analyzed were:
- Procurement/Installation: Asset Design Specifications & Procurement Cost
- Operations & Maintenance: Labor, Parts, Fuel (if applicable), Consumable Items and Outsourced Work
- Overhaul/Rehabilitation: Major Asset Refurbishment/Component Replacement Cost (ex. Transit Bus Transmission Rebuild or Facility Rehabilitation)
- Disposition: Salvage Value (End-of-Life)
The model provided insights on when the optimal time to dispose of a fleet vehicle to minimize overall fleet cost, the comparative TCO of different vehicle types, and the relative effect and up-time benefit gained for different operations and maintenance activities or rehab treatments, by engine or other component types used in the fleet. They advanced their understanding of treatment effectiveness and allowed them to make more informed decisions about fleet renewal.
Read more in the chapter: 6.4.3 Using Work History Information to Improve Models