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Using life cycle costing to pinpoint optimal replacement points

Optimum Replacement of Assets presented by Andre Jordaan at the Mainstream conference 2017

Andre Jordaan, Strategic Partner at Pragma, invites delegates to his presentation at this year’s Mainstream conference to be held from 9 to 11 October 2017 at the Maslow Hotel, Sandton, Johannesburg. This year Andre will illustrate just how powerful life cycle costing can be when applied to fleet management through a case study based on one of our clients in the local government sector.

“My presentation illustrates how lifecycle costing can be used to improve the overall replacement point for various types of vehicles in a big fleet,” says Andre, one of Pragma’s Partner Consultants.
The challenge posed to the Pragma team was to find the optimum replacement point for each of the vehicle types and individual vehicles. This particular client has a fleet with more than 900 vehicles, spanning 14 categories. The value of the more expensive vehicles in this fleet range anything from R 7 million for a landfill compactor to R 4 million for a refuse compactor, but also includes smaller vehicles such as bakkies and sedans.

“When conducting a project like this, data is critical. We were able to extract very credible data from our client’s system. As this is a relatively new client, we look forward to working with them to establish even more data collection points to ensure that we are able to build more comprehensive data models that could be applied to future projects and to refine this analysis.” explains Andre.

Andre’s presentation will take place Monday, 9 October at 12:30 (Track B). If you have not booked your tickets yet, visit the Mainstream Conference website for more details.

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