The team analyzed BYU-Hawaii's 218 on-campus vehicles and associated expenses. They found that BYU-Hawaii spends $144,181 annually on vehicle maintenance. The team assessed each department's vehicle needs, and found opportunities to downsize some trucks to more efficient vehicles like gas carts. Their recommendations aimed to reduce costs by properly allocating vehicle resources and cutting excess vehicles.

1. Brigham Young University - Hawaii
BUSM 371 - Operations and Supply Chain
On-Campus Vehicle Project
Gethrod Nonato
Nathan Nartker
Diane Kate Nuñez
Drew Farley
Matilda Cai

2. Project Background
Our team began this project by seeking Brother Sharp, director of facility management,
so that he can help us gain pertinent information regarding the Brigham Young University
Hawaii vehicles . He told us to meet with Uncle Kawika to understand better the process of how
they handle the vehicles and the maintenance. We met with Uncle Kawika for about an hour,
and he told us a lot of information including the amount of cars which is 218, his
recommendation of using gas carts because of its cost benefit, and downsizing some trucks to
long bed carts because of the efficiency and effective capability of them. There are only small
trucks like Ford F150 and Toyota Tacoma that stay on campus. He thinks we should use vehicles
in motor pool until 50,000 miles and then push it to a department or sell it for it’s market value.
One of the problems with management is that they move extremely slow in making decisions,
they have rarely replaced vehicles with carts and the organization of data is disorganize.
After having met with Uncle Kawika, we searched for information about all the vehicles
and their associated expenses. We searched in accounting, and they told us to go back to
facilities management. We acquired all the data needed (vehicle charge/cost work history &
vehicle expenses report and the amount of cars on-campus) from TMA Systems, a web-enabled
interface used by the Facilities Management.
We found reports such as vehicle cost, vehicle maintenance, fuel expenses, vehicle
maintenance schedule. Some of the information was difficult to read and analysis in excel, so
we had to organize it to be able to read it and analysis it. The information remained the same,
but it was easier to analysis. Below shows our findings thus far.
Problem Statement
We put in bullets that problems that we needed to address and make necessary
suggestions and implementation plan. The following are:
● BYU Hawaii is overspending on its on-campus vehicles of $141,181.00 annually on
maintenance.
● It is suspected that BYU Hawaii is misallocating its vehicle resources.
● BYU Hawaii is seeking to reduce costs by reallocating its on-campus vehicle resources
properly.
Scope of Project
We narrowed down the scope of our project so that we can focus on a certain resolution
and be able to achieve our concrete goals. The following are:
● Data collection of expenses with regards to vehicles.
● Assess each department's vehicle needs.
● Downsize vehicles where possible.

3. Data Analyzation
After we collected the data, we analyze the data according to the scope of our project. We
found out that the university has a total of 96 cars including the equipment utilities. The most
car type is Toyota Tacoma which accounts to 10% of total cars (see figure 1). In addition,the
number of departments that uses those cars are 19; the biggest departments that uses 20% of
total cars are the Grounds, Central Shops, and Motor Pools (figure 2). See the chart below:
Figure 1
Figure 2

4. When it comes to assessing the vehicle expenses for the past 6 years, we found out that
they have spent about $865,087.67 from 204 until 2010. If we are going to get the quotient for
6 years, we have approximately $144,181.27 per year spending. The questions that need to be
asked are: do they really need this amount of cars on campus? and do they really need
individual vehicles in each departments?
Substantial Suggestion / Action Plan
Based on the data we analyzed, we came up with two substantial suggestion in order for us
to achieve our scope. The two suggestions are the following:
● Downsize some trucks to small gas efficient vehicles - long bed carts: We believe that
there is misallocation of vehicles on campus, and because of that misallocation, there
have been increases in maintenance cost. We know that this is directly proportional.
Therefore, we recommend to downsize some trucks to small gas efficient club cars. The
club carts should be like the figure 3. The idea is to source club cars with a tool box so
that any departments like Central Shops that carry small parts or tools can be put inside.
Figure 3
● Cut excess/unnecessary vehicles: Along with our recommendation of downsizing the
vehicles to small cars, the need to assess the vehicles for each department and look at
the vehicles that are not being used is an important aspect in our project. For assessing
the needs on vehicles, we made a vehicle assessment form where each member in the
team analyzed each department and used the form to assess each vehicle. See figure 4.
The table below shows the vehicle assessment we did to analyze if the vehicle needs to
be kept in a department or need to sell or replace with small gas efficient club car. The
form or Balance score card explains that each car in the department need to be
categorized according to its capability and its type. If 5 cars fall into 15-20 score it means
that it can pretty much do the capability of score 5 to 20 score.

5. Figure 4
Examples Criteria Category Characteristics Yes Score
Type of
Car
(F350)
Large truck
requirements A
Transporting materials
that would not fit in a
normal truck size 5 25
Large
Truck
(small toyota
truck)
Truck
requirements B
Consistently transport
upwards of 50 lbs at least
two blocks 5 15­20
Truck
C
Transported materials
must be dirty/damaging to
a van's interior 5
D
Consistently transport
materials that would not fit
in a van 5
E
Transport materials that
would not fit in a modified
landscaping golf cart 5
(Astro van)
Van
requirements F
Consistently transport
upwards of 50 lbs at least
two blocks 5 15 Van
(Chevy
Malibu)
Passenger
vehicle
requirements G
Consistently going off
campus/reaches upwards
of 30 mph 5 10
Passen
ger
vehicle
(Club car)
Golf cart
requirement H
Carrying materials on
campus 5 5
Club
car
Benefit Summary
Added Value
● The benefit of doing this project is to reduce the spending for vehicles, maintenance,
etc.
● Recommend more efficient and effective vehicles per department.
○ Example: Long-bed cart and golf carts
● Cost analysis justifying reallocation of vehicle resources properly.

6. Cost Benefit Analysis:
Vehicle Maintenance History (6-year period from 2004 to 2010)
Total vehicle maintenance cost is $865,087.67
Yearly cost: $144,181.27
Maintenance includes:
● Safety checks, repairs, oil change, parts, battery, tire, vehicle license renewal, driving,
misc, tune up, etc.
BEST SCENARIO YEARLY VEHICLE COST
Safety Check $20
Maintenance $300
Registration $450
Oil Change $280
Insurance $600
Gas $570
TOTAL $2,220
7 vehicles X $15,540/year (SAVINGS)
Club car maintenance costs
Oil Change $10 *12=120
Gas $15*12=180
TOTAL $400
3 club cars X $1200/year
$15,540-$1200=$14,340 difference between choosing vehicles and club cars savings.
$14,340/$144,181.27= 9.9% savings annually

7. Switching Costs:
SELLING
(Price via KBB)
BUYING A LONGBED
CART
Toyota Tacoma *transfer vehicle $9,950
Toyota Sienna CE $13,000 $9,950
Chevy Astro $9,000 $9,950
Ford F800 $10,000
Toyota Sienna $11,000
Skid Steer $13,000
Ford Truck F-250 $9,000 Toyota Tacoma
TOTAL $65,000 $29,850 $35,150 (SAVINGS)

8. Implementation of Resource
1. Downsize from trucks to small gas efficient vehicles.
a. This could not cost anything if the university sells the vehicle and uses part of the
funds to buy a club car.
b. Show the people in the department that uses cars and evaluate.
c. Smaller vehicles are cheaper to keep and maintain than trucks.
TIME FRAME & COST
Department Time Cost of downsize
Central Shop 1-2 months 2 trucks in AC = $4,400
savings/year
Grounds 2-4 months same concept
2. Cut excess/unnecessary vehicles.
a. Sell suggested vehicles.
b. Buy new long bed club carts.
Potential Barriers
With any project that we do, there are always barriers that can hinder or prolong the
implementation of the project. The following list the barriers:
● Unorganized data - In order for the project to be completed, there must be organized
data so that we can present true data and be able to see the real solution.
● Poor Communication - A project can be prolong or go beyond the target
accomplishment date if there is misunderstanding due to poor communication.
● Inaccurate data - Data that is inaccurate cannot give any concrete result but only
assumption. Data is substantial in giving solution to the stakeholder.
● Fear of Change - This principle is very common in human nature. If people are not willing
to change, there is no room for progression.

9. Team Member Roles:
Active Executive: Drew Farley
● Coordinated with BYUH Accounting and Melanie Unga for the collection of and access to
critical data
● Attended group meetings and added value and direction to group plans and discussions
● Presented with Nathan Nartker in class on 11/4/2014
● Data analysis
● Contributed in doing the PowerPoint and in writing the paper
Evangelist: Matilda Cai
● Organized the spreadsheet data and make the data available to analysis
● Sorted the data and found problems of the project
● Contributed and added valuable information to the PowerPoint and paper
● Attended group meetings and went with the group to get data
● Presented in class on 12/4/2014
Steering Team: Diane Nuñez
● Coordinated with the team and with the sponsors through attending meetings
● Went with Andrew Farley to get the needed reports/data from the TMA system
● Did data analysis through Excel (Pivot Table)
● Contributed in doing the PowerPoint and in writing the paper
● Presented in class on 12/4/2014
Design Team: Gethrod Nonato
● Contributed to mid-semester presentation
● Gathered additional data from Kawika like recent total vehicle on campus.
● Attended group meetings and added value and direction to group plans and discussions
● Data Analysis through Excel (pivot Table ).
● Contributed in doing the PowerPoint and in writing the final paper.
● Presented in class on 12/4/2014.
Design Team: Nathan Nartker
● Contacted brother sharp and got Uncle Kawika’s contact information
● Helped to get the data spreadsheets
● Presented with Drew Farley in class on 11/4/2014
● Analyzed assigned department vehicles
● Data analysis
● Contributed to final powerpoint and in writing the final paper