Recommendation on approach to follow in the installation of a company real-time vehicle locator
In a medium-sized town from the west, the system of vehicle-locating should rhyme with the geographical size of the town. Some of the factors that are supposed to be considered are the strength of the signal, which will lead to viability of the location process of the vehicles that are installed with the tracking device within the town. Ideally, there are a number of issues that should be identified and solved. In a dense urban centre, there are factors that are essential before determining the strategy to install the system. These include the density and structures of buildings are medium in ranging, the trees that exist in these kinds of towns are quite interfering. Therefore, there is a requirement for a strategy of combined signal quality, as well as, processing power. In a medium-size town, there is a requirement for mobile dispatch units to handle signals from the traffic effectively. Besides locating the mobile units-centers in the town, there is the need to structure the stations with effective GPS units that are well situated to coordinate with the satellites. This initial installation can provide the system providing panel with the advisable next strategy to take. That is; the probability that the system will not work effectively may lead to revision and reformulation of the strategy.
Situation that may lead to change of the recommendation
Initially, this is one of the best strategies to commence with, in the vehicle tracking process. Ideally, the basic factors like construction structures and natural/ environmental parameters are some of the elements that could lead to alteration of the system. First, the cost of installation could be questionable with reference to the performance of the vehicle location system installed. If the quality of the signals, with reference to axiom used within the ISSI, is poor, then this can result to reconsideration of the recommendation. It is discouraging when one finds that the proposed idea is wrong. Ideally, the assessment that is done on the system could be done during a bad weather season or a favorable season. This impartial result could lead to poor recommendation of the reference of the recommendation is done on the basis of the present conditions. The difference in time of assessment could result to reassessment. A simulation model is among the most exigent areas that if passed through a design team that is responsible for approving or disapproving the system’s recommendation leading to altering some sections of the recommendation.
If you are not only concerned about profit, but also take into account reputation effects, how does your model change? Does your decision strategy change?
The objective of every business activity is to perform its duties at the lowest cost in order to maximize profits. This objective can only be achieved by assessing all the accruing fixed and variable costs for a project to perform effectively. The Integrated Sitting System INC (ISSI) aim to expand its services to a different avenue is a decision making problem that results in dilemma for any business that intends to invest in new areas. This problem results from information asymmetry between the company management and structural and environmental aspects of the target area.
Oblivious of the structure of the south-west city, it would be imperative to consider both economic and social costs of the project. One of the major social costs would be the environmental cost that would be incurred in a bid to eliminate large trees that obscure transfer of signals from the vehicles to the station.
Model Redesigning and review of decision strategy
As a project manager, I would concur with Scott’s reluctance to implement the project using the original system and invest in modifying it to accommodate the variables in the new target area of south west. This would require multiple decision making approaches. I would weigh the social cost of conducting a pre-feasibility study against the economic cost of future upgrade of the original system to accommodate variables associated with the target area. Social costs also counter the reputation cost of the company in case the system is subjected to change.
Rationally, it would be logical to halt the contract and invest in upgrading the system to suit the demands of the target area. This would cushion the company against the reduction of credibility and market in case the system fails in its current state. Upgrading costs of the system before implementation would not supersede the reputation cost and the cost of upgrading the system during its period of service. Therefore, marginal benefit (MB) of establishing a standard system would counter the marginal cost (MC) of upgrading the system to suit the requirements of the target area.
In addition to reputation effects, if we introduce loss of future work in case of a failure into the analysis, how does your model change? Does your recommended decision strategy change? The decision strategy will partially change. This is because a bad reputation will result in loss of credibility of the company’s products and services. This effect is a social cost which overlaps the social benefit of the corporation. As a project manager, the key objective is to ensure that the company operates at the break-even point and focuses on accumulating profit in the future.
Therefore, decision analysis will be based on marginal revenue (MR) and marginal cost (MC) of the project. If the cost of upgrading the system prior to implementation is less than the cost of upgrading the system during its service, then the former is the best decision strategy. The decision tree will be as follows:
Noble, James S. An Integrated Systems Approach to the Development of Winter Maintenance / Management Systems. Ames, Iowa: Midwest Transportation Consortium, 2006. Print.
Peng, Zhong-Ren, Eric D. Lynde, and Wei-Ya Chen. Improving Service Restoration Using Automatic Vehicle Location. Madison, Wis.: Midwest Regional University Transportation Center, College of Engineering, Dept. of Civil and Environmental Engineering, University of Wisconsin, Madison, 2008. Print.