Question: Please Answer Number 6, Using data provided. Thank You!!!! Question 6: SEE ATTACHMENT 6 This is an actual case history example of outsourcing a fleet


Please Answer Number 6, Using data provided. Thank You!!!!
Question 6: SEE ATTACHMENT 6 This is an actual case history example of outsourcing a fleet maintenance department. Looking at attachment 6, examine Table 1 and describe in detail three (3) steps taken by the Fleet manager which were essential to achieving these cost savings. Syracuse Public-Private Competition. The city of Syracuse's fleet maintenance department had done 10 years of total quality management. It was widely acclaimed to be the most efficient central garage in New York. The mayor decided to bid it out anyway. Three of the biggest players in the country bid on the contract. That's when the department got really serious; they eliminated $2.5 million dollars out of their overhead, increased their productivity per mechanic by 22 percent, reduced the cost to other city agencies, and won the bid (see Table 1) for a total cost savings of $4.6 million up 22% Table 1 City of Syracuse's Fleet Maintenance Competition Before and After: Before After Annual Costs $5.3 Million $2.8 Million Productivity per mechanic very low Employee Compensation Automatic Cost of Living Increase Performance Bonuses Ratio of Workers to Managers 1.1 to 1 4 to 1 Number of Employees 119 82 Number of Complaints 24 5 Number of Vehicles Serviced 2,104 2,202 Includes all management staff such as engineers, administration, supervisors. etcStep by Step Solution
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