Campus Lighting Economics - Individual Activity

Campus Lighting Economics - Individual Activity

(Estimated Time: 15 minutes)

Read the following story and complete the exercise that follows individually.

Budget Concerns Jeopardize Lighting Improvements

WEST LAFAYETTE – A significant state budget deficit is leading state senators and representatives to start looking for options to remedy the problem. “After last year’s tax increases, we certainly don’t want to raise them again,” said Rep. Sue Neeb. “So we need to look for ways to cut spending.”

These budget cuts are expected to have a significant effect on the university. While university officials had asked the state for a budget increase of 6% for the next fiscal year, they now expect funding to be cut. “We will need to re-evaluate our project proposals, revising where necessary and placing some plans on the back burner,” according to trustee Michael Copen, “but we would like to continue with as many of the projects as possible.”

The last time state budget deficits resulted in budget cuts for the university, trustees raised tuition and student fees to fund project proposals. “We haven’t eliminated that possibility, and we may find it absolutely necessary,” Copen said. “First, we will try to reduce the cost of our plans as much as possible.”

“I can’t afford to pay more for tuition,” said Heather Smith, a junior, when told the news of a possible tuition increase. “I’m already working part time to pay for college and taking out loans. The trustees need to do something else.”

Most of the projects under re-evaluation are considered high priority, according to maintenance and grounds supervisor Ken Breck. “We have put off upgrades and renovations to class buildings as long as we can, and we can’t wait any longer. The lighting project needs to stay a top priority, too. It’s not just that the lamps don’t put out enough light. Many of the fixtures don’t work any more, and others are deteriorating rapidly”

Is this light the best choice for campus? Officials hope to find a better option.

Announced earlier this year, the outdoor lighting project intends to upgrade and improve the lighting fixtures throughout the campus. Surveys filled out by students and faculty showed that the poor lighting in some areas of campus are a top concern of the campus community. University police have also expressed the need for improved lighting for increased security and safety.

The two-year, six-phase project is now under scrutiny. “We want to make sure we’ve made wise choices economically. We need to consider not just the immediate costs of the project, but also ways to minimize the expenses of long-term maintenance and replacement,” said Breck. “Aside from the initial costs of installing the system, we need to consider maintenance and operating costs for long-term savings.”

Re-evaluation of the lighting project and other proposals will take place over the next several months. The university plans to consult with teams of engineers to look at ways of cutting project costs, with announcement of final decisions by the end of next semester.

Task:

University officials have chosen to consult with your team concerning the economic analysis of four lighting system proposals for a specific area of the campus. The university would like to consider installation and purchase costs as well as long-term expenses for operation and maintenance. The university would like to be able to compare the four proposals to each other and to the current lighting system. Details of all five lighting systems are provided in Table 1 below. The current and all proposed lighting systems meet the illumination guidelines for roadways, parking areas, and sidewalks.

The trustees would like your engineering team to develop a list of factors to consider for comparing the different lighting systems. What information, aside from that given in Table 1, will be needed for an accurate comparison, so that the most cost effective plan could be chosen for a long-term project period?

Due to budget and time constraints, the trustees may not be able to obtain all of your requested information. Their researchers will therefore work to obtain the most important data first, based upon your rankings and explanations of importance.

Individually:

1.Generate a list of factors that yourteam must considerwhen comparing the different lighting systems. Be sure to submit your individual work.

TABLE 1: Lighting Proposals
Lamp Type 1 / Quantity / Lamp Type 2 / Quantity / Lamp Type 3 / Quantity
Proposal 1 / MH 250W / 42 / MH 150W / 14 / none / none
Proposal 2 / MH 250W / 40 / LPS 90W / 14 / none / none
Proposal 3 / HPS 250W / 32 / HPS 150W / 12 / none / none
Proposal 4 / LPS 135W / 36 / HPS 150W / 16 / none / none
Current System / Mercury Vapor 400W / 40 / Mercury Vapor 250W / 12 / Mercury Vapor 100W / 10

Campus Lighting Design - Team Activity

(Estimated Time: 45 minutes)

Write the body of a memo to the Board of Trustees that includes:

An outline of what your team considers necessary data for an accurate comparison of the lighting systems and for selection of the best proposal
Explanations why each piece of information is important to the comparisons.
Rankings or levels of importance for each requested information, from most important to least important.

Explanations and rankings of your requests are critical, because budget and time constraints may prevent trustees from gathering all of your requested information. They will therefore work first to obtain data that you indicate to be most critical.