Understanding the Whole of Life Costs (WOLC) of plant or vehicles is an important task for fleet practitioners. A holistic approach is required that considers all cost involved in holding and operating the asset.
A WOLC calculation using the guidelines in Chapter 9 of the IPWEA Plant and Vehicle Management Manual (PVMM) factors in all costs associated with the assets as opposed to focusing on a single element such as purchase price, maintenance costs or fuel consumption.
Using WOLC provides a reliable basis to assist decision making on plant and vehicle acquisitions, determining replacement cycles, and setting charge out rates. Also, understanding the WOLC costs of the fleet is critical deciding whether to own, lease or hire fleet assets.