CONSOLIDATING FACILITIES FOR THE CONNECTICUT DEPARTMENT-OF-TRANSPORTATION - A CASE-STUDY

The Connecticut Department of Transportation (ConnDOT) was charged wit h investigating the possibility of reducing costs by operating with fe wer than 13 equipment repair facilities. Using a mixed-integer progamm ing model, we helped ConnDOT identify options for achieving savings wi thout sacrificing quality of service. A key feature of the model is th at it establishes repair capacities based on the past performance of b enchmark facilities within the system. As we developed recommendations , we gave serious consideration to factors outside the context of the model and to feedback received from ConnDOT personnel. Ultimately, we proposed two options-one containing ten facilities and the other II. T he net present values of savings offered by these options are estimate d at over $5.0 million and $3.1 million, respectively. While the ii-fa cility option is lower in savings, it has advantages in that it: (L) s atisfies concerns highlighted by ConnDOT Maintenance; (2) is easier to implement than the ten-facility option; and (3) represents less of a current commitment, which is beneficial if future consideration of add itional changes is likely. These advantages contributed to the ii-faci lity option being the one most widely preferred within ConnDOT.