Identify important structural cost drivers for the company

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Question: Gilman Heating and Air Conditioning Inc. provides a broad range of services to commercial and residential customer, including installation and repair of several different brands of heating and air conditioning systems. Gilman has a fleet of 28 trucks, each operated by one or more service technicians, depending on the size of a job. A recurrent problems for Gilman has been coordinating the service teams during the day to determine the status of a job and the need to parts not kept in the service vehicle, as well as to identify which team to send on emergency calls. Gilman's service area is spread over an urban/rural area of approximately 50 square miles. The company has developed cost and price sheets so that the service technicians accurately and consistently price the service work they perform. For each case, identify the important structural cost drivers for the company and the related strategic issues that it should address to be competitive.

 

 

Reference no: EM133363418

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