Goal of the American National Standards Institute (ANSI) (1-2)
to enhance both the global competitiveness of US business and the US quality of life by promoting and facilitating voluntary consensus standards and conformity assessment systems, and safeguarding their integrity.
*What was the purpose of the signing of a memorandum of understanding with ANSI in 1995 by the National Institute of Standards and Technology (NIST), an agency of the Department of Commerce? (1-2)
To enhance and stregthen the US voluntary standards system through strong public-private sector interaction.
*What act was the major step in bridging the gap between standards developers and the Governmental agencies that create legislation affecting the standards community? (1-2)
The passage of the National Technology Transfer and Advancement Act of 1995 (NTTAA).
*The National Technology Transfer and Advancement Act of 1995 was a major step in bridging the gap between standards developers and who? (1-2)
The Governmental agencies that create legislation.
What are domestic or international organizations which plan, develop, establish, or coordinate voluntary consensus standards using agreed-upon procedures? (1-2)
OMB Circular A-119, voluntary consensus standard bodies.
*What attributes does a voluntary consensus standandards body have? (1-2)
- Openness
- Balance of interest
- Due process
- An appeal process
- Consensus, which is defined as general agreement, but not necessarily unanimity
What year was the first tangible step toward achieving a consensus standardization policy for the property industry? (1-3)
2000
In 2000, what was the first tangible step taken toward achieving a consensus standardization policy for the property industry? (1-3)
When Committee E53 on Property Management Systems was officially organized.
*Who manages the development of standards through the establishment and supervision of one or more Technical Committees (TC) by specific functional areas? (1-3)
Committee on Technical Committee Operations (COTCO)
What was established via a partnership between the NPMA and ASTM International? (1-3)
Committee E53.
What is Committee E53 charged of? (1-3)
The development of management systems criteria, including performance standards, practices, metrics, and methods of effectiveness for the conduct of management and administration activities for durable and movable assets.
*Who assigns the supervision of standards activities to the COTCO? (1-3)
ASTM International Bylaws.
*Who manages the development of standards through the establishment and supervision of one or more Technical Committees (TC) by specific functional areas? (1-3)
COTCO
*What are COTCO's responsibilities. (1-3)
- Approving and discharging TC personnel
- *Ensuring that any TC under its jurisdiction is operating within its approved scope and according to ASTM International-compliant procedures
- Ensuring that TCs within the charter of the Committee are providing due process
- Providing a forum for hearing appeals of actions or inaction by TCs
*What are the goals of COTCO? (1-3)
- Timely implementation of standards and standards actions, such as the development of new documents, revisions, cases, and responses to inquiries
- Accomplish its objectives without extraordinary effort and expense
- Enable wide and timely participation by all concerned
What is the mission of each Technical Committee? (1-3)
The development of standards within a specified scope.
*Where are standards developed by Technical Committees submitted through? (1-3)
Through the COTCO to the ASTM International Committee on Standards (COS) to become approved Voluntary Consensus Standards.
*To ensure balance, how much membership of TC E53 must come from any single category? (1-4)
Not more than 1/3.
Name two duties of the Technical Committee E53. (1-4)
- Developing standards within its scope
- Approving ASTM international standards developed as sub-committee work items under their jurisdiction
How often does ASTM Committee E53 meet? (1-5)
Once a year, usually in mid to late summer.
*What type of living documents are subject to constant change? (1-5)
Both active standards and their related work items.
What provide common ground for all users and managers of personal property, whether they are corporations, governments, medical institutions, or colleges and universities? (1-6)
Standards.
What is the process of identifying and justifying future property acquisitions and providing the necessary funds? (2-1)
Requirements determinations.
How can a property manager be effective. (2-1)
Must be aware of the overall picture, including organizational objectives, the target dates for achieving them, and funding restrictions, and the type and quantity of property needed.
*What is the task of a property management.(2-2)
To manage the property the organization needs to meet its objectives at the lowest cost.
The capital planning process must take into account current and future commitments to: (2-2)
- Provide equipment and facilities to support current contract obligations and customer needs
- Maintain existing technology levels to support research and development and production objectives
- Establish future starategic capabilities
- Meet all environmental and safety obligations
- Maintain, modernize, and expand infrastructure including buildings, grounds, and support system
- Provide for future new business development
- Invest in maintaining and enhancing competitiveness through productivity improvements and cost reduction
During the last quarter or each fiscal year, the organization should request from each department or functional subunit what? (2-2)
Investment plans based on the organization's objectives for the next year or years.
*The capital planning process begins with what? (2-2)
A review by each department of its plans with respect to the organization's strategic plan.
The lists prepared by the managers initially contain what? (2-2)
All known equipment and general-purpose facility needs for the future year (or years).
*What must be placed as the highest priority when it comes to supporting for existing business requirements? (2-3)
The property that is necessary to support those contranct efforts.
*In prioritization, what must be given careful consideration to prioritize the necessary investment items on a reasonable and consistent basis? (2-3)
Support for existing business requirement.
In cost reduction and productivity improvement, what should receive higher priority? (2-3)
Higher-return projects.
*In process outline, what must each department submit? (2-4)
Submit a single list of requested projects.
What is the time frame requisitions for capital equipment should be submitted? (2-4)
At least 45 days prior to each fiscal year end.
*What must be done by property management upon the completion of all appropriate reviews? (2-4)
A final list of all approved capital projects to the respective departments.
*Give the data elements of particular importance in which the approved listing contains that are required when purchase requisitions are initiated.
- Purchase accounts keys (charge numbers)
- Asset category
- Identification codes (if appropriate)
- *Depreciation expense account number
*Property management, working with Fixed Asset Accounting, projects what? (2-4)
It projects the depreciation expense of existing assets and those approved for the next and subsequent fiscal year.
Prior to the generation of purchase requisitions for capital investment items involving substitutions, additions, or cost increases, how are requests should be processed? (2-4)
In accordance with internal department procedure.
All modifications to the Capital Investment Plan should be communicated to who? (2-5)
To Property Management.
What must property management should update to reflect the change, provide the updated pland to the procurement group, and communicate any necessary changes to the requisitioner? (2-5)
The Capital Investment Plan.
What are guidelines, established by the organization, for determining in what quantity, when, and where items or categories of items are required? (2-5)
Use standards.
What is advisable in a budget preparation? (2-5)
An equipment replacement forecast.
*What should be used when use or replacement standards have not been established? (2-6)
A written justification.
*What costs money if its isn't issued within a reasonable time and it's cost continues to increase because of storage cost? (3-2)
Stock
*What is the obvious disadvantage of a central warehouse for consumables? (3-2)
Cost.
*What does requirements determinations starts with? (3-3)
A needs assessment.
A consumable program cannot exist without what (3-3)
Without determining consumables requirements.
What report shows percentage of requests that were accommodated by the requested item's being a stock item? (3-4)
Demand accommodation
What report provides management with information about stock that potentially cannot be located? (3-4)
Number of records without bin locations.
What frequency is Demand accomodation report? (3-4)
Monthly
What frequency is Number of records without bin locations report? (3-4)
As needed.
*What must be done to all items purchased and received by the organization, but not yet issued? (3-4)
They must be managed so that they are available and can be issued immediately upon request.
*What is the point at which the inventory level is low enough to order stock? (3-4)
ROP (Re-order Point).
*What do you call the amount to order each time the ROP (re-order point) is reached? (3-5)
ROQ (Re-order Quantity).
*What plan measures the cost importance of each item demanded from a stock account? (3-5)
An ABC plan.
*What plan divides the inventory into three categories based on the dollar value of demands? (3-5)
An ABC plan.
What type of items are those items that are retained regardless of their lack of demand? (3-6)
Insurance items.
Give an example of insurance item. (3-6)
- Items with a high dollar unit cost
- Items with a long lead time
- Items with an unpredictable demand rate
- *Items whose lack would have a significant detrimental impact on mission performance
What type of inventories whose frequencies and sampling rate are determined by the cost of, demand for, and mission critically of consumble items? (3-6)
Regular inventories.
*What is at the heart of adding value to the organization? (4-1)
Understanding how a contract was formed and knowing where to look for essential information concerning property management.
Who must have a real understanding of the document that conveys the customer's requirements? (4-2)
The property manager.
What is the most important part of being a property manager? (4-2)
Knowing how to interpret the contract for the benefit of the organization.
*What is the most familiar form of agreement? (4-2)
The contract.
*For the most part, how is the contract type selected? (4-2)
Depends upon how much risk (primarily, financial risk) each party is willing to accept.
*What type of contract places the greatest financial risk and full responsibility for all cost and any resulting profit or loss on the vendor ? (4-2) (4-4)
Firm-fixed-price contract (FFP).
What contract type places the greatest financial risk on the acquiring organization? (4-2)
Cost-plus-fixed-fee contract (CPFF).
What is the easiest type of contract for two parties to understand and administer? (4-2)
Firm-fixed-price (FFP).
Give two common characteristics of all fixed-price contracts. (4-2)
- The vendor is contractually bound to complete the contract work
- The acquiring organization is obligated to pay a price equal to the firm price specified in the contract
*What type of agreement is managed under the umbrella of OMB circular A-102 or the requirements of an individual state? (4-3)
Grant.
What grants are managed by OMB Circulars? (4-3)
Grants and Cooperative agreement.
*What type of agreement is legally-binding load agreement? (4-3)
Bailment agreement.
What contract provides maximum incentive for the vendor to control costs and perform effectively, and imposes minimum adminstrative burden upon the contracting parties? (4-4)
Firm-fixed-price contract.
Give the advantages of firm-fixed-price contract. (4-4)
- Minimum administrative burden on both parties.
- Maximum incentive for the vendor to control cost and perform efficiently
- A known monetary obligation
*What is the most distinctive feature of a CR (Cost reimbursement) contract? (4-4)
The flexibility in compensation provisions and work definition.
*When can a CR (Cost reimbursement) contract may only be used? (4-5)
- *The vendor's accounting system is adequate for determining costs applicable to the contract.
- Appropriate oversight
- A determination and findings has been executed in accordance with the acquiring organization's procedure
*When does the vendor must provide written notice to the Contracting Officer that costs to complete the contract will exceed the estimated target? (4-5)
Prior to reaching the cost ceiling (generally within 60 days after the incurred costs reach 75% of the cost ceiling).
*What type of contract is used most frequently for research and development work, particularly with nonprofit educational institutions or other nonprofit organizations? (4-5)
Cost Contract.
What type of contract allows for vendor efforts to be expended that might otherwise present too great a risk for vendors? (4-5)
Cost-plus-fixed-fee (CPPF) contracts.
*What type of contract does the government views as one that does not provide any real incentives for vendors to control their costs or to perform in an effective and efficient manner? (4-5)
Cost-plus-fixed-fee (CPPF) contracts.
What type of contracts are infrequently awarded or not awarded at all? (4-5)
Cost-plus-fixed-fee (CPPF) contracts.
What type of contract is a writeen preliminary contractual instrument that authorizes the vendor to begin work immediately? (4-6)
Letter contract.
How many key facets in contract property management? (4-7)
Five.
Give the five key facets of contract property managment? (4-7)
1. Infrastructure
2. Notification
3. Life-cycle management
4. End of period and closure (closeout)
5. Records retrieval, retention, and purging.
What refers to the organizational structure within the governmental entity, corporation, or instituition, or within the departments involved in contract administration or other administrative processes? (4-7)
Infrastructure.
What must be established for the contract property files to ensure consistency in record keeping? (4-8)
A standard style, content sequence, and labeling system.
What must the PMO (Property Management Officer) have throughout the period of performance of each contract? (4-8)
The ability to receive (or have access to) notification and copies of addendums or modifications to contracts.
*What must be included in the closeout letter? (4-9)
- A statement that the acquiring organization's property has been accounted for, including property at subcontractors and outside vendors; that records have been annotated accordingly; and that supporting documentation is attached.
- *If material was furnished or acquired for the contract, a statement that all material has been consumed and that records have been annotated to reflect a zero balance.
*In the closeout letter, a statement must be included to indicate that all material has been consumed and that records have been annotated to reflect what? (4-9)
Zero balance.
*Who is responsible for the development of written policies for the marking, retention, and subsequent purging of documents? (4-9)
The PMO (Property Management Officer).
*For Federal Government property, how long are records retained? (4-9)
For 3 to 4 years from the date of final payment to the vendor.
*For Federal Government property, records should be retained for 3 to 4 years from the date of what? (4-9)
Final payment to the vendor.
*"Value added" can be applied to anything that adds more to an organization's what that it costs? (5-1)
Profits or effectiveness.
What brought attention to the need for value-added activity by Federal property managers? (5-1)
The Joint Financial Management Improvement Program's (JFMIP) Property Management Systems Requirements.
*For most organizations, the business process includes what? (5-2)
- Strategic planning
- Resource planning
- *Revenue, expense, and capital needs forecasting
- *Budgeting
- *Asset acquisition and disposal
- *Financial accounting
*For manufacturing organizations, the business process includes what? (5-2)
- Materials requirements planning
- Material acquisition
- *Production scheduling
- Receiving
- Production
- Shipping
*Organizations dedicated to supplying services, the business process includes what? (5-2)
- Strategic planning
- Resource planning
- Revenue, expense, and capital needs forecasting
- Budgeting
- Asset acquisition and disposal
- *Consumables planning and procurement
- Receiving
- Financial accounting
*Why does records add value to the organizations? (5-2)
Because they reduce the likelihood that unnecessary equipment will be acquired, and help to ensure that equipment will be available when and where it is needed.
What is business system analysis? (5-2)
The breaking of a business subject (property or material processes) into manageable components for examination in order to improve the processes via better compliance, greater efficiency, or both.
*What are the steps incorporated in business analysis? (5-3)
- Identify requirements and issues: contracts, audits, others
- Review current procedures, forms, reports, and systems use. Conduct supporting interviews as appropriate
- Perform analysis through whatever technique is appropriate: flowcharting, decision analysis, fishbone, cause and effect diagram, check sheet, histogram, Pareto diagram, etc.
- *Identify changes, metrics, training, and implementation techniques.
*What consist in Adding value? (5-3)
- Using state-of-the-art technology
- *Employing the preferred or best business practices
- Meeting the special management needs of the organizaion
*What can a value-added system provide? (5-3)
- *Capture and prioritize the cost of repairs
- Accumulate data from multiple appropriations
-*Provide and on-line search capability based on user-defined parameters
- Provide the capability of interfacing either on-line or through the internet with other organizations (especially useful for gorverment agencies to interface with each other)
- Provide information on the status of upgrades
- Capture warranty and guarantee information, including terms and period of coverage
*What can better customer service achieve? (5-3)
It could assist in getting a quality product delivered on time, meeting cost objectives, supplying an effective business system, and complying with contract provisions.
*Property Management should generally have three to six goals in what categories? (5-4)
- *Safety
- Cycle time
- Quality
- Cost
- Compliance
- Teamwork
*Goals must be measurable, and what? (5-4)
They should be time-bound.
In property system, when reduce cost is the the goal, what is the desired result and value-added task? (5-5)
Correct problems before they occur. Design and carry out self-assessment.
Define risk. (6-1)
The possibility of various outcomes from a given set of circumstances.
Risk implies what? (6-1)
Typically, risk implies the potential for a loss of some kind.
What is the only way to completely avoid risk? (6-1)
To do nothing.
What is a holistic approach to managing the risk of an oranization known as? (6-1)
Enterprise Risk Management (ERM).
What is Enterprise Risk Management (ERM)? (6-1)
The practice of protecting an organization from financial harm by identifying, analyzing, and controllin risk at the lowest possible cost.
Define incident. (6-2)
An event that disrupts normal activities and may result in a loss or claim.
*Define severity. (6-2)
The monetary impact of a loss.
*What is the key risk management term defined as the most likely amount an organization stands to lose as the result of a loss? (6-2)
Maximum Probably Loss.
*What key risk management term is defined as the process by which the dollar values of a project's benefits and costs are estimated and totaled as a means of establishing whether or not the project should be undertaken? (6-2)
Cost-benefit analysis (CBA).
What leads to the use of a risk-based approach in managing personal property? (6-2)
To a more holistic view and realistic analysis of the true risks and potential losses in each property item.
*What risks for a particular piece of property or the property management program are present in every phase of the life cycle? (6-2)
- Human sources
- Natural sources
- Economic sources
*What are examples of risks under human sources? (6-2)
- *Inaccurate recordkeeping and inaccurate financial records
- Arson, vandalism, and theft
- Violation of procedures and improper handling
- Lack of protection
- Lack of training
*What are some examples of risks under economic sources? (6-2)
- Under-utlization
- Under-valuation
- Outdated technology
- Loss of revenue
- Loss of good will
What are some examples of risks under natural sources? (6-2)
- Corrosion, rust, mold, and midew
- Vermin
- Weather conditions
*How can the current computer loss rate, when above the ASTM International standard E2131 for LDD property, be used? (6-3)
This is ammunition for the property manager to use to convince management that something has to be done.
What is involve in controlling a loss? (6-4)
It involves active intervention to prevent a loss from occurring or to lessen the impact of a loss should it occur which may lead to the conclusion that additional controls such as increased inventories should be placed.
* What is critical to the decision-making process in cost-benefit analysis? (6-4)
The need to compare the costs of mitigating a risk to the anticipated benefit.
*What do you call the proces to compare the cost of mitigating a risk to the anticipated benefit? (6-2)
Cost-benefit analysis.
How do you perform a cost-benefit-analysis? (6-5)
First, the amount at risk must be accurately calculated. Next, the time period over which the proposed control will apply must be known along with the organizaiton's internal Weighted Average Cost of Capital (WACC). Finally, the toal cost of the mitigating strategy (including employee wages and benefits) must be obtained.
Where does risk-based property management proceed through? (6-6)
Through identification of the risks, analysis of the risks, control of the risks via active intervention, the active or passive financing of risks, and the administration of the program.
Define property audit. (7-1)
The systematic, objective review and evaluation of an organization's property control system, which includes the organization's established procedures and its application of, implementation of, and compliance with those procedures.
What are the benefits of internal audits? (7-1)
Minizing waste, improving customer service, and safeguarding organization assets.
*What forms the foundation of the property control system? (7-2)
Written procedures.
What is equally indispensable of the property control system? (7-2)
The consistent, conscientious application of written procedures.
What are the 11 steps of audit process? (7-2)
1. State the audit's objectives
2. Define the attributes or traansactions to be tested
3. Define the population
4. Specify and acceptance/rejection rate
5. Determine the sampling method
6. Select the sample(s)
7. Perform the audit
8. Analyze defects
9. Generalize from sample to population
10. Determine the status of the process that is under review
11. Issue the report.
*What is the most important step in the audit process? (7-2)
Stating the audit's objectives.
What is the ultimate objective in the audit's objective? (7-2)
To determine whether or not the property control system is working properly.
*Who must be selected to conduct the audit's evaluation? (7-2)
A knowledgeable in-house person who is not directly involved in the particular areas being reviewed.
In the audit process, define attribute. (7-2)
A characteristic of the entity being evaluated.
*In the audit process, define population. (7-2)
The aggregation of documents, recores, assets, or actions selected for review on the basis of their common characteristics.
What is one of the most critical steps in the performance of a system analysis? (7-2)
The proper selection of a population.
*What is an aggregation of documents, records, assets, or actions selected for review on the basis of their common characteristics? (7-2)
A population.
What is the generally-accepted timeframe for the review of a transactional process? (7-3)
One year or back to the last analysis, whichever is less.
What must be determined before the audit begins? (7-3)
Acceptance and rejection rates.
What regulation includes tables that provide acceptance and rejection rates that the Government uses for a double sampling plan with a 90% confidence of rejecting lots having 10% or more defectives? (7-3)
DOD 4161.2-M
What are the different sampling methods? (7-3)
- Statistical
- Judgement
- Purposeful sampling
What type of sampling is the process by which a random sample is selected from a population? (7-3)
Statistical
What type of sampling is most often used by auditors? (7-3)
Statistical.
*What type of sampling is used when the auditor's judgment is used to determine how many sample items to select and how many defects must be found before an areas is classified as deficient? (7-3)
Judgment
What type of sampling is useful for evaluating processes that do not lend themselves to random sampling, such as security and housekeeping in storage areas or inceidents of lost or damaged property. (7-3)
Judgment.
What type of sampling is closely related to a pure random sample is not used but from a population that has known defects? (7-3)
Purposeful
What type of sampling may be used when the auditor, or upper management, becomes aware of an adverse situation and must verify how deeply rooted in the system the problem is? (7-3)
Purposeful.
What do you call the difference between the percentage of the sample that has the attribute in question and percentage of the population that has it? (7-3)
The acceptable degree of error.
*How is the appropriate sample size generally determined? (7-3)
By the size of the population and the confidence level desired.
*What must be done to preclude bias during an audit? (7-3)
A random number table or program should be used.
Before the audit is actually conducted, what must be necessary ensured? (7-3, 7-4)
- Some form of property control system exists
- The procedures have been reviewed
- The auditor has a good understanding of the processes involved
- The audit's objectives have been stated
- The attributes and transactions to be tested have been determined
- The population and sampling unit have been defined
- The acceptance and rejection rates have been specified
- The sample size has been determined
- A random sample has been selected
*What may evidence consist of during the audit? (7-4)
Observations, interviews, and examiniation of the records and the physical property.
What will be the basis for the audit conclusion? (7-4)
The collected evidence.
What must be done to audit work papers? (7-4)
Systematically filed and indexed to provide a ready reference and documentation of audit evidence and findings.
*What must the auditor study that without such knowledge, the findings may become unreliable? (7-4)
The organization's written procedures and be aware of the underlying requirements that drive those procedures.
*What factors must be considered before defeciencies are judged to be defects and the process is determined to be unsatisfactory? (7-4)
- *Reasonableness
- Materiality
- Magnitude in absolute terms
- * Percentage relationship to dollar amount of property
- Percentage relationship to asset base
- Quality attributes
- *Causality
What must quantitative evaluations be tempered by? (7-4)
Reasonableness
When an audit is performed, what is clear to be detected and corrected? (7-4)
Material erros (substantial or significant)
What plays an important part in the audit process? (7-5)
The relative magnitude of a deviation.
*In the audit process, what do you call an analysis of what caused the defects? (7-5)
Causality.
What is the major advantage of statistical sampling? (7-5)
The auditor may be adquately confident that the deficiencies or defects found are generalizable to the larger population.
What is important than the grade or rating of an audit? (7-5)
The identification and correction of the defects.
What is the final stage in performing the audit? (7-5)
The report.
What is the purpose of the report after an audit? (7-5)
To provide management with a report that summarizes the purpose of the audit, how the audit was conducted, and any findings and observations that resulted from the audit.
How does the report after an audit be distributed? (7-5)
To the managers over the areas that were included in the audit and their upper management as well to the individual(s) who directed that the audit be performed.
*What does the value of the system analysis wholly depends on? (7-5)
The knowledge, integrity, independence, objectivity, and impartiallity of the auditor.
What do you call the core value of an auditor's code of ethics? (7-5)
Integrity.
What is indepensable for the auditor when performing an audit? (7-5)
Independence form the audited entity and outside interests groups (such as upper management).
What is needed in all work conducted by auditors, particularly in their reports, which should be accurate and objective? (7-5)
Objectivity and impartiality.
What should be based exclusively on evidence obtained and assembled in accordance with the auditing standards applied? (7-5)
Conclusions in opinions and reprts.
What should the auditors not use as a means of securing personnel benefit for themselves or for others? (7-5)
The informatin received in the performance of their duties.
What process is an objective and impartial review of an organization's established policies and systems, on that is performed according to well-established rules and procedures? (7-6)
An internal audit.
Who must know how an audit is organized and conducted and how its results are interpreted? (7-5)
Propery managers.
What are the benefits when property managers know how an audit is organized and conducted and how its results are interpreted? (7-5)
- It helps property managers to prepare for an audit.
- It provides a guidebook for the ongoing scrutiny, evaluation, and upgrading of the property control system.
What is the establishing the value of asset called? (8-1)
Valuation.
Give the reason why valuation is essential. (8-1)
- Insurance purposes
- Issuing debt (such as bonds)
- Depreciation
- Property taxes
- Financial statement reporting
- Asset replacement planning
- Equipment and/or project transfers
- Mergers or divestiture of organizational units
- Effective disposal
What is utilized to determine the initial value of assets that are purchased by an organization? (8-1)
The payment documentation.
*What is the value of asset based upon after the payment documentation is utilized? (8-1)
Based upon what a willing buyer and a willing seller would agree to as a purchase price, having reasonable knowledge of all facts and neither being under compulsion to buy or sell.
*What standard is called when assets's value is based upon what a willing buyer and willing seller would agree to as a purchase price, having reasonable knowledge of all the facts and neither being under the compulsion to buy or sell? (8-1)
Fair market value (FMV).
Who often knows what property is worht or how to determine its value? (8-1)
Auctioneers, property managers, accountants, mortgage brokers, and others woho have extensive experience with property is worth.
What is advisable to ensure that the value has been determined in compliance with professional standards? (8-1)
To hire a professional appraiser.
What is defined by the Uniform Standards of Professional Appraisal Practive (USPAP), as provided only by appraisers, while valuation services may be provided by a variety of professionals and others? (8-2)
Appraisal practice.
What do you call a person defined by the USPAP as one who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective? (8-2)
A professional appraiser.
*Who develops, publishes, interprets, and amends the USPAP on behalf of appraiser and the users of appraisal services? (8-2)
The Appraisal Standard Board (ASB).
Who is authorized by Congress as the source of appraisal standards and appraiser qualifications? (8-2)
The Apprisal Foundation.
Since valuation is based on characteristics of an asset, what must be included in the description of an asset in order to arrive at a correct value? (8-2)
All relevant characteristics.
When does a valuation be accomplished following betterment or replacement? (8-2)
Immediately.
*What is defined as an improvement to personal property? (8-2)
Betterment.
What is defined as the replacement of an internal or external part of an tiem of personal property? (8-2)
Replacement.
When does the value of an item affected? (8-2)
When a replacement materially increases the value or estimated useful life of the property, not one that only allows the property to complete its normal life.
How much does the value of the personal property item which the replacement enhances be adjusted? (8-2)
Equal to the cost of the replacement component or part, less the value of the original component or part.
What sources may be used in determining the value of assets? (8-2)
- Invoices or other documents stating original cost
- Manufacturers' price list
- Distributor or supply company catalogs
- Industry prublications and trade journals
- Public records and tax assessment records
What is the reason why the assistance of a professional appraiser should be sought when the value of art and artifacts is to be determined? (8-2)
Specialized knowledge in necessary.
*What is the value placed on an asset by the assessor for tax purposes? (8-2)
The assessed value.
What is based on fair market value (also named full value, true cas value or true value) multiplied by a factor (the assessment ration)? (8-2)
The assessed value.
How is the tax payable calculated? (8-2)
The assessed value multiplied by the appropriate local tax rate.
*What is the actual or allocated cost of assets to the present owners? (8-3)
The historical cost.
What do you call an approach often used to determine the estimated historical cost? (8-3)
Reverse indexing.
What estimates the original cost of a property based on the current value of similar properties and the original date of purchase? (8-3)
Reverse indexing.
What does an organization make into account when performing a reverse indexing determination? (8-3)
The organization must take into account inflation that has occured since the date of purchase.
How does an organization take into account inflation that has occured sind the date of purchase? (8-3)
Through the use of inflation indexes.
What is one one of the indexes available that is updated monthly? (8-3)
Consumer Price Index.
What does the property manager should use when employing reverese indexing? (8-3)
The most current information.
*What do you call the value of the property (or a portion) in accordance with the terms of an insurance policy or other agreement? (8-3)
Insure value.
*What is often the best source for market value? (8-3)
The records of the sale of similar or equivalent assets.
What do you call the value that a willing buyer might pay a willing seller? (8-3)
The market value (fair market value) of an asset.
What do you call the cost of replacing an asset with an equivalent asset which can provide similar service (but need to be of the same structural form) at current market price? (8-3)
The replacement value.
*What do you call the salvage value of an asset? (8-3)
The residual value.
What is the estimated amount that could be realized from the sale of the property at the end of its useful life, based on its having som value in excess of its basic material content? (8-3)
The salvage value.
What do you call the estimated amount that could be realized if the asset were sold for its basic material content at the end of its useful life? (8-3)
The scrap value.
What is the process of valuing a universe of propoerties as of a given date using standard methods, employing common data, and allowing for statistical testing? (8-3)
Mass appraisal.
When developing a mass appraisal, the appraiser must observe what specific requirements? (8-4)
- Collect, verify, and analyze such data as
- The cost of new improvements
- Accrued depreciation
- The value of land by sales of comparable property
- The value of property by sales of comparable
property
- The value of capitalization of income i.e. rentals,
expenses, interest rates, capitalization rates,
vacancy data
- Estimate capitalization rates and projections of future rental rates and/or potential earnings capacity, vacancy rates, expenses, and interest rates on reasonable and appropriate evidence, both current and historical.
- Analyze the terms and conditions of any available leases
- Decide whether or not a physical inspection is appropriate, and if so, its extent
What are the three approaches to the appraisal of machinery and equipment? (8-4)
- Sales approach
- Cost approach
- Income approach
What type of approach entails the gathering of actual sales data or offerings of similar or comparable property? (8-4)
Sales approach.
What some characteristics that may result in adjustments when performing a sales approach? (8-4)
- Age
- Capacity
- Operational capabilities
- Condition
- Etc
What type of approach is more advantageous to determine the value when there is an active market providing sufficient numbers of comparable properties for sale? (8-4)
Sales approach
When is sales approach not feasable? (8-4)
When the subject property is unique.
What is the first step in Sales approach method? (8-4)
To establish the purpose of the appraisal.
*Define Premise of value. (8-4)
Describes the type of market conditions the seller of the business interest might reasonably encounter, such as business as usual or liquidatin conditions.
Define "fair market value". (8-4)
The estimated amount expressed in terms of money.
Define "fair market value in continued use". (8-4)
The fair market value that inclues all normal direct and inderect costs to make the property fully operational.
Define "fair market value-installed". (8-4)
The fair market value that includes all normal direct and indirect costs, such as installation and other assemblage costs, to make the property fully operational.
Define "fair market value-removed". (8-4)
The fair market value considering removal of the property to another location, as of a specific date.
Define "Orderly liquidation value".(8-5)
The estimated gross amount typically realized from a liquidiatin sale.
Define "forced liquidation sale".(8-5)
The estimated gross amount realized from a properly advertised and conducted public auction.
Define "liquidation value in place".(8-5)
The estimated gross amount realized from a failed facility, assuming that the entire facility would be sold intact with a limited time to comolete the sale, as of a specific date.
Adjustments are always made to what? (8-5)
To comparable and not to the subject property.
What are the techniques used for Sales Comparison? (8-5)
- Direct match
- Comparable match
- Percent of cost
What technique used in Sales Comparisons that finds the exact mathc in the market using a pricing guide such as the Blue Book? (8-5)
Direct match
What technique used in Sales Comparisons that finds a comparable match and identifying the differences in the subject property? (8-5)
Comparable match
What technique used in Sales Comparisons that determines a ration of the selling price to the current cost new of the property? (8-5)
Percent of Cost
What begins with the current replacement cost new of the subject property and then deducts for all forms of depreciation, such as the loss in vlaue caused by physical deterioration, functional obsolescence, and economic obsolescence? (8-5)
Cost approach
What do you call the loss in value or usefulness of property due to wear and tear, exposure to elements, physical stresses, age, and other physical factors? (8-5)
Physical deterioration.
What do you call the loss in value resulting form inefficiencies or inadequacies of the property when it is compared to less costly, more efficient propery that benefits from advanced technologies or development? (8-5)
Functional obsolences.
What do you call the loss in value or usefulness of a property caused by external factors such as disproportionately increased material, labor, or utilities costs? (8-5)
Economic obsolescence.
What do you call the cost of buying a new item that is fuctionally identical? (8-5)
Replacement cost new.
What do you call the cost of producing a new replica of the subject property with the same or nearly the same materials?
Reproductin cost new.
What methods are used to determine the replacement or reproduction cost new of a subject property? (8-5)
- Detail method
- Trending method
- Cost-to-capacity method
What method in determining the replacement or reproduction cost new of a subject property where individual components of the subject property are given a value and the sum reflects the replacement cost? (8-5)
Detail method.
What method in determining the replacement or reproduction cost new of a subject property that uses an index or trend factor applied to the historical cost of the subject property (reflects movement of price over time)? (8-5)
Trending method.
What method in determining the replacement or reproduction cost new of a subject property assigns a straight value to the subject property based on its capacity, then makes an adjustment when calculating the cost of a similar property with a different capacity, using the subject property value as the base? (8-5)
Cost-to-capacity method.
What type of approach relates the value of the item to its expected revenues or benefits to the owner(s)? (8-5)
Income approach.
What are the eight basic steps in income approach? (8-5, 8-6)
- Identify the expected future benefits
- Determine the magnitude and timing of the future benefits
- Determine the magnitude and timing of the expenses associated with achieving the forecasted income
- Subtract the annual operating expenses from the annaul income or revenue
- Determine the discount rate (or capitalization) rate if a multiple-year mode is not being used)
- Estimate the salvage, residual, or terminal value of the asset
- Determine the present value of the annual net cash flow
- Develop the appropriate value of the asset
What requires that the appraiser reveal to the client any lack of knowledge or experience if asked to appraise in an area in which he or she is not trained or competent? (8-6)
The Comptency Rule of the USPAP.
What must the appraiser examine when evaluating proposed modifications? (8-6)
Plans, specifications, or other documentation that adequately identifies the extenet and nature of the modifications, evidence indicating the probable time of completion, and reasonably clear and appropriate evidence supporting implementation costs, anticipated earnings, and output (as applicable).
What does the appraiser must determine when analyzing an assemblage or various property or components parts of a property? (8-6)
Individual values for each component, and may not determine the value of the whole by adding individual component values.
What must be determine separately when analyzing an assemblage or various property or component parts of a property? (8-6)
The value of the whole.
What is the central importance to the organization's financila health? (8-6)
The value of an organization's real and personal property.
What is the task of property management in the organization's financial health? (8-6)
To manage the property the organization needs to meet its objectives at the lowest cost; and to manage cost, the value of the organization's property must be accurately and consistently established.
Who must understand and conform to the applicable laws and regulations toward environment? (9-2)
Everyone.
*What act is commonly known as the Superfund? (9-2)
The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). Enacted by Congress on December 11, 1980.
What law created a tax on the chemical and petroleum industries and provided broad Federal authority to respond directly to releases or threatened releases of hazardous substances that may endanger public health or the environment? (9-2)
The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
Who: (9-2)
- Established prohibitions and requirements concerning closed and abandoned hazardous waste sites
- Provided for the liability of persons responsible for releases of hazardous waste at these sites
- Established a trust fund to provide for the cleanup when no responsible party could be identified
The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
How type kinds of response action does the CERCLA law authorizes? (9-2)
Two. Short-term removals and long-term remedial response actions.
What type of removal in which actions may be taken to address releases or threatened releases requiring prompt response? (9-2)
Short-term removals.
What type of response actions is for serious but not immediately life threatening? (9-2)
Long-term remedial response actions.
What type of actions can be conducted only at sites listed on EPA's National Priorities List (NPL)? (9-2)
Long-term remedial response actions.
What hazardous waste that if disposed of in a landfill, liability for cleanup at this landfill could result? (9-2)
Asbestos.
What do you call any container or place where hazardous waste are treated, stored, disposed of, or otherwise located? (9-2)
Facility. Example: a drum, a tank, or a motorized vehicle. One being currenlty operated as well as one that has been abandoned.
*What hazardous substance are defined by CERCLA? (9-2)
- All toxic pollutants and hazardous substances listed under the Clean Water Act (CWA)
- Hazardous wastes regulated by the Resource Conservation and Recovery Act (RCRA)
- Any hazardous air pollutant under the Clean Air Act (CAA)
- Chemicals designated as "immenently hazardous" under the Toxic Substances Control Act (TSCA)
What other substances might be considered by CERCLA as hazardous? (9-2)
If they meet any of the characteristics of a hazardous waste defined by RCRA regulations.
*What type of characteristics may be considered that can meet any of the characteristics of a hazardous waste as defined by RCRA regulations? (9-2)
Ignitability, corrosivity, reactivity, and toxicity.
What items CERCLA excludes from hazardous waste category? (9-3)
- Crude oil
- Petroleum products
- Natural gas products
What is defined as "spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, and disposing" of hazardous substances, which also include abandonment or discarding of barrels, drums, or any other container that contains or was used to contain, hazardous substances.? (9-3)
Release.
What action can trigger CERCLA liability? (9-2)
The abandonment or discarding of barrels, drums, or any other container that contains or was used to contain, hazardous substances.
What is defined as the steps taken to restore the area of site? (9-3)
Remedy.
What is defined as the actions to stop, prevent, or minimize the release or threatened release of hazardous substances? (9-3)
Removal.
What is defined as the action taken to address the release or threatened release of a hazardous substance, whether it is taken by the parties responsible or by enforcement agencies? (9-3)
Response.
What allows the Federal Goverment to clean up site using money from the Superfund? (9-3)
The general thrus of CERCLA.
*The general thrust of CERCLA is to allow the Federal Government to clean up sites using money from the Superfund in order to do what? (9-3)
To speed up the response at these sites.
What amended CERCLA? (9-3)
The Superfund Amendments and Reauthorization Act (SARA) in 1986.
*Why was CERCLA amended in 1986? (9-3)
To address loopholes in the 1980 CERCLA legislation, which did not adequately address the cleanup remedies applied to contaminated areas.
What also contained the Emergency Planning and Community Right-to-know Act? (9-3)
Superfund Amendments and Reauthorization Act (SARA).
What creates emergency planning, reporting, and notification requirements in which facilities are required to report the presence of hazardous chemical substances and to report any release of US IPA-listed substances outside the facility's boundaries? (9-3)
The Emergency Planning and Communit Right-to-know Act.
What also includes a system of administrative, civil, and criminal penalties to enforce the notification requirements? (9-3)
The Right-to-know Act.
What addresses the cleanup of sites requiring most attention? (9-3)
CERCLA.
How do we determined the sites that require most attention when CERCLA addresses the cleanup? (9-3)
Those placed on the Federal Government's National Priority List (NPL).
True or False: Lower priority sites do not fall under the jurisdiction of CERCLA. (9-3)
True.
What matches CERCLA's regulations that they impose strict liability on parties who are responsible to whatever degree for the contamination of the site? (9-4)
The state's regulations.
What in addition does state's regulation impsed on non-cooperative parties? (9-4)
The state's statues allow for punitive damages to be imposed.
What categories are states placed in when it comes to addressing contaminated sites? (9-4)
- Category 1: States that lack independent Superfund cleanup programs, and rely almost entirely on the Federal Superfund program.
- Category 2: States that have cleanup programs which impose less-severe penalties than the CERCLA program imposes.
-Category 3: States that have implented cleanup programs which match the CERCLA liability standards.
When in comes to addressing contaminated sites, what category does most states fall into? (9-4)
Category 2 - States that have cleanup programs which impose less-severe penalties than the CERCLA program imposes.
When it comes to addressing contaminated sites, what category is where States lack independent Superfund cleanup programs, and rely almost entirely on the Federal Superfund program? (9-4)
Category 1.
When it comes to addressing contaminated sites, what category is where States have implented cleanup programs which match the CERCLA liability standards? (9-4)
Category 3.
When it comes to addressing contaminated sites, what category is where States have cleanup programs which impose less-severe penalties than the CERCLA program imposes? (9-4)
Category 2
Who should become familiar with their state's regulations? (9-4)
Companies involved in hazardouos waste activities.
Who must adhere to CERCLA's requirements? (9-4)
The law places that resposibility on the owners or operators of a facility (including land) from which a hazardous substance is released, and on certain prior owners, generators, or transporters of hazardous substances.
*Give some circumstances that have resulted in liability under CERCLA? (9-4)
- Without fault and under the rules of strict liability
- Joint and severally - meaning that any party with involvement in the property as an owner or operator may be held responsible for all or part of the cleanup cost
- Retroactively: for wastes sent to a site for disposal years ago, an organization could be liable for remedial cleanup costs now if there are pollutants being released from that site
- *Upon the new owner after a corporate merger or the acquisition of a facility from which a release has occurred
- Personally and individually for participation in the waste management activities of a firm
- In triple amounts if noncomplieance or contested enforment action is taken
Under Section 107, what classes of persons (Potentially Responsible Parties, or PRPs) does CERLCA identifies are liable for the cleanup of facilities? (9-4)
- Present owners and operators
- Owners and operators at the time of disposal
- Generators of hazardous substances
- Transports of hazardous substance
When it is not clear as to who was specifically responsible for the contamination, who are assigned the cleanup and cost reimbursement at a Superfund site? (9-4)
The PRPs (Potentially Responsible Parties).
True or False: CERCLA does not concern itself with fault. The liability is "strict liability" and retroactive. (9-4)
True.
In the case fo US v. Mirabile (1985)Who may be held liable for the cleanup cost? (9-5)
A Secured creditor who participated in the day-to-day operations of a facility.
What is not sufficient to attach liability? (9-5)
A financial relationship.
What does the law requires to attach liability? (9-5)
Indications of actual control of the property.
*In 1965, why did Congress passed the Solid Waste Disposal Act (SWDA)? (9-5)
To addressed the disposal of municipal solid wastes.
*In 1976, congress enacted the Resource Conservation and Recovery Act (RCRA). What did the RCRA provided? (9-5)
The necessary standards for the storage, treatment, and disposal of hazardous waste.
Subtitle C of the RCRA (Resource Conservation Recover Act) was added to cover what? (9-5)
Hazardous waste.
Subtitle D of the RCRA (Resource Conservation Recover Act) was added to cover what? (9-5)
It was added as a separate program for state regulation of other (non-hazardous) wates pursuant to Federal guidelines.
What is the purpose of the Resource Conservation Recover Act (RCRA)? (9-5)
The tracking and monitoring of hazardous wastes. To regulate existing waste sites, to ensure the building of new, safer hazardous waste treatment and disposal facilities, and to introduce improved hazardous waste management practices.
What legislation mandates that virtually all manufacturers and certain service providers must document and manage the hazardous waste they generate? (9-5)
The Resource Conservation Recover Act (RCRA).
In 1984, What did Congress enacted as a means of refining the Resource Conservation Recover Act (RCRA)? (9-5)
The Hazardous and Solid Waste Amendments (HSWA).
How many amendements did the Hazardous and Solid Waste Amendments (HSWA) introduced? (9-5)
54. Ranging from administrative procedures to hazardous waste issues.
What hazardous waste issues did the Hazardous and Solid Waste Amendments (HSWA) introduced? (9-5)
- Land disposal
- Permits
- Underground storage tanks
- Technology
- Mining
- Small-quantity generators
- Waste oil
What was the Hazardous and Solid Waste Amendments (HSWA) initiative? (9-5)
To attempt to close the regulatory loopholes in the "cradle-to-grave" network of controls covering hazardous waste management.
What does property managers should know when it comes to hazardous waster in their orgranizations? (9-5)
They should know what hazardous materials, if any, are being stored and/or used to operate or maintain the organization's facilities and what wates are being generated.
What can results in failure to comply with the regulatory requirements? (9-5)
Notices of violations (NOVs), fines, and potential administrative, civil or criminal actions resulting from scheduled or unscheduled regulatory inspections.
What does the Departments of Environmental Protection (DEP) or EPA will pursue? (9-6)
"Administrative" actions for noncompliance issues, but criminal enformcement may be pursued for "knowing" or "willful" violations by a company or an individual employee.
*When a transaction involves the acquisition of property that falls under the auspices of the Resource Conservation Recover Act (RCRA), the acquiring party should asses what? (9-5)
The property prior to the completion of the acquisition.
What does the Resource Conservation Recover Act (RCRA) regulation requires form facility owners? (9-6)
Take "corrective action" to remedy the effects of past hazardous waste activities.
* What are the inherint characteristics of waste? (9-6)
Ignitability, corrosivity, reactivity, or toxicity.
What is a characteristics of corrosive waste? (9-7)
Liquid or aqueous wates with a pH of less than or equal to 2, or greater than or equial to 12.5.
What defines toxic waste? (9-7)
- Exhibits any characteristics of hazardous waste
- Found to be fatal to humans in low doses
- Contains any of the toxic constituents listed in 40 C.F.R. Part 261 app. VIII.
*What are some material exemptions from the Resource Conservation Recover Act (RCRA)? (9-7)
- Solid or dissolved material in domestic sewage
- *Solid or dissolved materials in irrigation return flows
- Industrial discrages that are point sources subject to permits under the Clean Water Act
- Source, special nuclear, or by-product material
- Materials subjected to in situ mining techniques
What do you call solid waste or a combination of solid wates, which because of quantity, concentratin, or physical, chemical or infectinous characteristics may:
- Cause or significantly contribute to an increse in mortality or an increase in serious irreversible, or incapacitating reversible, ilness.
- Pose a substantial present or potential hazard to huan health or the environment? (9-7)
Hazardous waste.
What has been classified as hazardous as of March 2001? (9-7)
Cathode-ray-tubes.
What is a material that is used, reused, or reclaimed? (9-7)
Recyclable materials.
What materials used in a manner of constituting disposal, hazardous wastes burned for enerty recovery in boilders and industrial furnaces, used oil exhibiting one or more characteristics of hazardous waste butned for energy recovery, recyclable materials from which precious metals are reclaimed, and spent lead-acid batteries that are being reclaimed? (9-7)
Recyclable materials that are regulated under Resource Conservation Recover Act (RCRA).
Who must be concerned about the presence of hazardous materials as part of the disposition process? (9-7)
Property managers.
What type of materials are exempt from regulation under the Resource Conservation Recover Act (RCRA)? (9-8)
- Regulated industrial ethanol
- Used batteries or battery cells returned to a manufacturer for regeneration
- Used oil that exhibits at least one characteristics of hazardous wasted but is recycled in a manner other that being burned for energy recovery
- Fuels produced from the refining of oil-bearing hazardous wste along with normal process streams at a petrolium rifining faciltiy if the wastes result from normal operations
- Oil reclaimed from hazardous waste resulting from normal petrolium production practices
- Hazardous waste fuels produced in the petroliem industry and reintroduced into a non-distillation process
- Petroleum coke produced from refinery hazardous waste containing oil at the same facility where genereated unless theat coke exceeds one or more of the characteristics of hazardous waste.
*What are any garbage, refuse, sludge from a waste treatment plant or air pollution control faciltiy, and other discarded material, including solid, liquid, semisolid, or contained gaseous material resulting from industrial, commercial, mining, or agricultural operations, and from community activities? (9-8)
Solid waste.
In solid waste, what does not imply only high-density substances? (9-8)
"Solid". It also includes liquids and gases.
What do we call anything that is thrown away? (9-8)
Solid waste.
What addresses activities conducted in an existing building or structure? (9-8)
Prior use.
If the facility is a warehouse, what hazardous products may the organization store or use? (9-8)
- Chemicals
- Waste
- Fuel in underground storage tanks (for backup power generators)
If the facility is a manufacturing site, what hazardous products may the organization store or use? (9-8)
- Chemicals
- By-products
- Waste
- Oils, solvents, or fuels in underground storage tanks.
If the facility is an office building, what hazardous products may the organization store or use? (9-8)
- The business may have underground storage tanks.
What has an impact on the appraisal value of the property when it comes to hazardous waste? (9-8)
The type of faciltiy and the means by which the company disposes waste.
For determing the appraisal value when it comes to hazardaous waste, what are the purposes of complieance that need to be determined? (9-8)
- Has the company chosen a licensed, reputable waste disposal company?
- Has the company propery followed guidelines put forth for its sites(s) to become an authorized treatment, storage and disposal facility (TSDF)?
What would a non-compliant managing of hazardous waste by the company or by neighboring companies ? (9-8)
A negative impact on the subject property.
What are items that may give a negative impact on the subject property that would resut from the non-compliant managing of hazardous waste by the company ro by neighboring companies? (9-8)
- The leaking of an underground storage tank
- The improper disposal of waste on the property site
- The seepage of waste from surrounding property
If the property is vacant, what must a business consider looking to construct a facility on the site? (9-9)
- The surrounding property
- The improper dumping of hazardous waste
- Prior agricultural use
What does not lie the responsibility for compliance iwht regulations that govern environmental issues and hazardous materials? (9-9)
Property Manager.
Where do environmental consideratins affect the day-to-day management of property? (9-9)
- Acquisition
- Receiving
- Identification
- Storage
- Movement
What is part of property management because it includes the acquisition, control, utilization, maintenance, and disposition of both vehicles and equipment? (10-1)
Fleet management.
Who must be able to forecast the needs of the organization they support? (10-1)
Fleet managers.
What skills and areas of expertise may include in a fleet personnel? (10-1, 10-2)
- Specification development
- Methods of purchase (best value)
- Leasing
- Preventive maintenance
- Repair shop management
- DOT compliance requirements
- Budgeting
- Financial analysis and reporting
- Data processing
- Compliance and quality assurance
- Statistics
- Safety
- Labor relations
- Labor negotiations
- Disposition of vehicles
- Federal, state, and local laws
- Insurance
- Taxes
- Accident/incident reviews
- Manual and procedure development
Who must be trained and experienced in basic business competencies, including general management, finance, purchasing, accountingm, personnel, and risk management? (10-2)
Fleet manager.
What skills and qualifications must be possessed by fleet managers? (10-2)
Interpersonal and communication (oral and written) skills and budgeting and financial skills.
*Who can provide the fleet manager with advice and backround information on the service and repair history of fleet vehicles?
Support personnel.
Who can provide vehicle use and performance information? (10-3)
Field personnel.
Who will determine the best sources and prices for vehicle parts and supplies? (10-3)
Purchasing manager.
Who will provide cost information, enabling the fleet manager to formulate the budget for new acquisition? (10-3)
Fleet management's administrative section.
What are the factors to consider when fleet manager formulates the budget for new acquisitions? (10-3)
Operating cost information by vehicle class, type and model; service availability profiles, and performance results from specific project applications, e.g. specialized or alternantive fuel vehicles.
What must be detailed and, if necessary, reformatted for usability to allow the fleet manager to monitor and manage costs in a timely and accurate manner? (10-4)
Cost information.
What is needed so that, if a norm during a given month is exceeded, the index will flag it both in monthly and life-to-date reports? (10-4)
A cost control/operating cost index for each unit.
Who are best qualified to evaluate a vehicle's performance? (10-4)
Operation's personnel.
What process takes a lot of input which involves all of the management functions of an equipment division or department? (10-4)
Evaluation.
What affects the results of operational performance evaluations? (10-4)
The purchasing, use, deployment, heirachy of the equipment organization, and upkeep of equipment from acquisition to disposal.
Why is there more emphasis placed on preventive maintenance today than in the past? (10-4)
Because of rising new equipment, labor, and parts cost.
What is most effectively monitored in the field and scheduled and managed by a preventive maintenance manager at headquarters? (10-4)
A preventive maintenance program.
*What are the five factors fllet managers rank in analyzing fleet efficiencies? (10-4)
- Durability
- Reliability
- Operating costs
- Initial cost
- Life cycle cost
*What has become so critical that cost/performance analysis is being closed-looped back to vehicle considerations at the time of purchase? (10-4)
Cost control.
What actions in fleet management results better management, higher productivity, more informed purchasing, and higher uptime percentages? (10-4)
Fleets are expanding their ability to complare and evaluate equipment not only by brand, but by model within a given brand.
What should fleet buyers seek when purchasing vehicles? (10-5)
Bids from a range of potential sources, e.g., several dealers handling the same brand.
What increases use of local vendors to stock required parts and materials for delivery within 24 to 48 hours minimizing inventory and carrying cost? (10-5)
Just in Time (JIT) inventory.
*What tasks do fleet managers performs? (10-5, 10-6, 10-7)
- Maintenance and Repair Productivity Analysis
- Maintenance Facility Analysis
- Vehicle Cost-effectiveness and Energy Efficiency Analysis
- Establishing a Vehicle Pool
- Lease vs. Buy
- Preventive Maintenance
- Developing a Maintenance Policy
- Developing Training Programs
- Tracking Spare Parts
- Vehicle Replacement
- Disposal of Surplus Equiment
- Cost Comparison
- Finance and Accounting
- Cost and Performance Reports
- Replacement Reports
- Replacement Part Inventory Control
- Production Monitoring and Controls
- Fuel Consumption Monitoring
- Mileage and Trip Reporting
- Personnel Use Procedures
What is incorporated in Maintenance and repair productivity analysis? (10-5)
- Work order preparation
- Work assignments
- Estimated repair times
- Actual repair times
- Preventive maintenance procedures
- In-house repair vs. contract repair
- Vehicle downtime
*What tasks by the fleet manager measures facility efficiency and effectiveness? (10-5)
Maintenance Facility Analysis.
What fleet manager's task reduces the effects or culture and emotions and increases utilization and availability with corresponding reductions in per-vehicle costs? (10-5)
Establishing a vehicle pool.
Fleet managers should ensure what process is used rather than the lowest bid? (10-5)
Best value process.
What does the best value process includes in a fleet manager's activities? (10-5)
Purchase price, life expectancy, maintenance track record, warranty, capability of equipment, and expected resale value.
What other opportunities should also be compared to the expected revenues from surplus sales when it comes to the best value process of the fleet manager? (10-5)
Trade-in opportunities.
What programs must be fromal, and their enforcement must be reasonable when it comes to fleet manager's activities? (10-5)
Preventive Maintenance.
What will increase the useful life of a vehicle? (10-5)
Preventive maintenance.
What fleet manager's activities measures in-house repairs against vendor-supplied repairs? (10-5)
Developing a maintenance policy.
Training that cannot be provided in-house should be provided by whom? (10-5)
Private companies.
What fleet manager's activities reviews stockroom procedures and shop tools, inspect and analyze obsolete items, and establish maximum and minimum levels for parts inventory? (10-5)
Tracking spare parts.
What is the ideal replacement standard (in miles or hours) for replacing a vehicle? (10-5)
Just prior to the need for major repairs.
What helps to determine the best time to replace a vehicle in a specific class? (10-6)
Computing class costs and charting the peaks and valleys in equipment value.
What is not desirable unless the value derived from sed parts exceeds the value projected for the sale of the vehicle? (10-6)
Cannibalizing a vehicle.
Who should develop a positive sale market by offering clean, good vehicles when it comes to disposing of surplus vehicles? (10-6)
Fleet managers.
How much will most sales of surplus vehicles yield if handled properly? (10-6)
15% or more above average.
What will improve the returns, as will general cleaning and the correction of excess damage when it comes to disposal of surplus vehicles? (10-6)
Making minor repairs prior to the sale.
What will enable fleet manager to detect trends, such as a performance change in each vehicle? (10-6)
Knowing monthly costs, fiscal year costs, life-to-date cost per mile, and actual dollars spent.
What are the best tools for obtaining useful information in the fleet manager's finance and accounting activity? (10-6)
Internal profit and loss statements by function.
What are used to track vehicle-related costs and to compare them with pre-established industry standard cost rates to determine profit or loss? (10-6)
Cost and performance reports.
To have profitable operation, what must be comparable to or lower than commercial rates? (10-6)
The rates must be comparable to or lower than commercial rates.
What will make a simple matter to review the last three months of mileage and project the average mileage to determine when the vehicle should be replaced? (10-6)
By using a vehicle replacement reporting system.
What can calculate the total repair costs per mile and identify those problem vehicles that will not reach the mileage replacement criteria? (10-6)
A vehicle replacement reporting system.
What should be assigned to all inventoried and purchased-for-use parts to have an effective part inventory control system? (10-6)
A part number should be assigned.
Who should manually check all reorder items for obsolescence and to adjust for any increase or decrease in the fleet size of a particular model? (10-6)
Fleet manager.
What should be designed to identify trouble areas in a particular vehicle make or model? (10-6)
The work order system.
What fleet manager's activitiy can be manual or automatic and establishes the hours and minutes it takes on average to complete a particular tasks? (10-6)
Production monitoring and controls.
What information should be primarily used for work scheduling purposes rather as an employee performance measurement? (10-6)
Production monitoring and controls.
What will call attention to a vehcile and (except for pool vehicles) to that operator? (10-6)
Fuel consumption monitoring.
A management system should be in place to expedite what monthly reporting when it comes to fleet management? (10-7)
Monthly mileage reporting.
What are the four important measurements in monitoring vehicle use? (10-7)
- Mileage
- Hours of operation
- Weeks used
- Percentage utilized
What should stress good driving habits and emphasize that the organizations is paying the bill? (10-7)
Personal-use procedures.
What should be made only after it has been determined that all existing units are fully and properly utilized? (10-7)
Additional vehicle purchases.
What should the fleet manager use to help in determining the quantity, quality, and fuctional characteristics of the vehicles to be purchased? (10-7)
Questionnaire.
What is in the best interest of the company, especially for units over 10,000 lbs gross vehicle weight (GVW)? (10-7)
A well-thought-out vehicle analysis by the fleet manager, user, crew, and specification engineer.
What starts with a pre-bid conference? (10-7)
The bidding process.
What should be well-publicized to ensure the presence of all interested vendors? (10-7)
The pre-bid conference.
What is relatively complex but is by far the most practical and economical approach to product selection? (10-7)
Evaluating bids using life cycle costs.
What should begin on the date vehicles are placed in service, not when thare delivered? (10-7)
Warranty coverage.
What can also be used for product evaluation? (10-7)
The user questionnaire that was developed to determine specific vehicle needs.
Whether it is developed in-house or purchased, what system shoud contain a flexible database that can easily be expanded and modified to meet changing requirements? (10-8)
A sound vehicle maintenance management system.
What is a specialized branch of property management? (10-8)
