Town of Roveretto Harvard Case Solution & Analysis

What should Ms. Zambelli recommend to the mayor?

Ms. Zambelli was of the view that in upcoming winter, there were potential repair costs that the town will have to bear because of their old fleet of machines. As machines became old, they required more tuning and maintenance and also consumed more fuel.

Zambelli should recommend to the Mayor that all old fleets should slowly be replaced with new fleets such as with 322 model that is fuel efficient and needs less maintenance cost. By replacing with 322 model, only maintenance cost and fuel cost will not be saved but also labor cost and time also cost. As labor requires less time to complete their task,therefore,there will be no over times and as a result,there will savings of wages.

When there is less than 3-centimeter snow, Ms. Zambelli takes no action, and the snow Devil was kept in town garages. Ms. Zambelli sends vehicles to spread snow to make road less slippery and for vehicles to pass.

Ms. Zambelli’s recommendation to Mayor includes disposal of all the vehicles that the town has to manage for the snow moving purpose, and all the work should be given to contractors. It should be worth considerable here that contractors that are sourced from a third party are never on time and do not complete tasks on time. Due to this, there is a huge problem that the town will face if snow is not removed.

As a member of the mayor’s staff, what would you recommend?

Before members of Mayors’ staff recommend any alternative, it is necessary to evaluate all the pro and cons of the alternatives quantitatively and qualitatively as well. The first alternative is to dispose of all the vehicles that town own and hire external contractors. External contractor although are not the so expensive option, external contractors charge 75 Euro while own vehicle costs more than 75 Euro. As the town has to employ staff and have to maintain own fleet therefore,the cumulative cost will be more than an external contractor.

There are two types of vehicles that town have option; first is Snow Devil 211 and second is Snow Devil 322, both models have their unique features and have own cost structure.

Devil 211 is costly to maintain as its fuel cost is Euro 20 per hour and maintenance cost is lower, while Snow Devil 322 consumes 15 euro per hour and maintains cost is also lower and requires less time to get job done so this in turn also saves labor time, and it wages.

Qualitatively total reliance on the external contractors who do not complete their task and are not available when is they are needed, therefore it is useless to have total dependency on them. Thus, it is highly recommended to have the mix of own fleet and services from the external contractors. In heavy season, there should be use of own fleet, and if capacity is exhausted then should be the use of over time by paying existing laborer as the good amount. If existing staff is not available for the overtime then services of the external vendors should be used.

What action should the mayor take concerning the town’s snow removal situation?

The Mayor should have only one objective in his mind that is to find utmost quality of service to his town people. In the town, people pay taxes and on their amount of taxes all expenses are deducted. The Mayor should take action against the contractor who are not available at the time when their service are required. Warning should be issued to the contractor. If there is no progress then there should be change of contractors.

Further, the Mayor should approve the budget for the purchases of the Snow Devil 322 on the basis of their cost savings and performance. The Mayor should also take notice about the workers over time and should esquire why they are not opt for the over time when they are paid for it. There should be an inquiry for it. If overtime amount is less than as per cost-benefits analysis, there should be an increase in overtime payment.

Town of Roveretto Case Solution

It should be concluded that there is only one month in a year in which there is heavy snow fall, and there is the use of machinery. The Mayor should use continuous use of machinery when there is heavy snow fall and less snow fall as Mayor should not wait for the accumulation of snow.

There should be continuous use of machinery so that snow is not accumulated, and there is no danger of roads blockage and snow sliding............................

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