Content AuditFall 2016

6 ESSENTIAL FLEET METRICS YOU SHOULD BE WATCHING AND WHY John E. Dolce

WEBINAR

Fleet Metrics Overview

“Numbers don’t run your fleet. Your savvy does.”

Success metrics are unique to your fleet.

Visibility into complex fleet management processes

Tools to measure and take actionable steps take action on pressing fleet management challenges

Quality fleet data gives you:

The Effects of Bad Fleet DataInaccurate view of fleet processes

Uninformed financial and fleet process decisions

Lack of insight resulting in overspending

6 Essential Fleet Metrics

90%✓ Availability data needs to be

available to all team members during & by the end of each shift

✓ Availability metrics should be organized by percent and class (cars, trucks, utility trailers, etc.)

1. Asset Availability

Availability Rate

Sample VehicleRepair Worksheet

2. Asset Utilization

You should aim for a 90% asset utilization rate, and a 95% asset availability rate. This leaves you with a 5% asset availability buffer.

Activity-BasedCostingFleet Trend Analysis

Preventative maintenance is critical to your operation.

Regulatory compliance requires that you have visibility into your PM schedule.

3. On-Time PM Rate

Public transit fleets must achieve an 80%on-time preventative

maintenance rate.

80%

Daily Customer UpdateWeb-based, real-time updates of a customer’s out-of-service

equipment and vehicles helps you achieve on-time PM rate goals.

- 80% on-time PMs - No more than 20% late PM rate

Preventative Maintenance Parameters

Mileage - Time - Fuel Use -Hours - Repetitions

Telemetrics - Asset Optimization - Condition - Yellow Iron Usage - Construction

Gas - Diesel - Decentralized - Centralized

Inner City - Congestion - Weather

City - Roads - Congestion - Weather

Suburban - Rural Application

Old-Versus-New-Unit Intervals - Frequencies

Application-Specific Environment,Old, New

Dispatch Points - Rotational vs. Spare

Idle Times - Condition-based - Risk-based

Preventative Maintenance Parameters

Asset Optimization

End User Needs

Defects from pre/post trips

Premature Failures:Warranty - Latent Defect

Condition-based

Idle Times -Schedule Maintenance

+ General Repairs

Age: Young - Old - Just Right

Backlog, Two WeeksPersonal Hours

Environment

Unscheduled: Breakdowns - Repeat Repairs - Road Calls

Annual actions:Quarterly Reviews

Diagnostics and Repairs

Diagnostics % Year Range Repair Cost %

5% 1900 - 1940 95%

20% 1940 - 1960 80%

40% 1960 - 1990 60%

60% 1990 - 2010 40%

80% 2010 - Present 20%

Soft + Hard Codes (Prioritize, Sequence, Focus on the process)

7 Common Maintenance Activities:

1. Preventive maintenance inspections2. Preventive maintenance generated

repairs3. Driver daily write-ups (DVIRs)4. Planned component changes - Tires5. Predictive maintenance – Water pump6. Conditional maintenance7. Federal Annual, State, Six Month, Self Ins

Planned Maintenance

Aim to increase planned maintenance rate from 30% to 70%

Operator Preventive Maintenance

Daily driver / operator inspections

Daily PM / lubrication + fluid top off

Technology monitoring, lane changes, following distances and dash cam reviews

Telemetrics monitoring, internal and outsource

4 Elements Preventative Maintenance (PM) Inspections

1. On-time vehicle inspections to avoid asset downtime2. PM scheduling is based on weather conditions, telemetrics,

time, mileage, hours and/or fuel usage. 3. PM Adjustments can be made based on breakdown analysis

(Road calls, premature component failures, repeat repairs, etc). 4. As fleet asset density changes, each vehicle’s type and age has

a huge impact on PM effectiveness.

Sample Vehicle InspectionsReport

4. Breakdown Repair Costs

✓ Repair call trends✓ Locations of vehicle breakdowns✓ Repeat repairs✓ Cause of breakdowns✓ Premature vehicle failures✓ Catastrophic vehicle failures

A powerful fleet management software tool will show you:

Surprise maintenance activity that shortens vehicle and equipment lifecycle, while increasing cost and lowering productivity.

4 Common Unplanned Maintenance Causes:

1. Road calls2. Breakdowns3. Premature components4. Repeat repairs

Unplanned Maintenance

Aim to decrease unplanned maintenance rate from 70% to 30%

System AvgCategory

Contractor A Contractor B Contractor C

# % # % # % # %

97 18 Hydraulic 13 12% 16 14% 68 28%

151 32 Electrical 51 45% 36 30% 64 26%

82 17 Mechanical 14 12% 23 21% 45 19%

17 5 Abuse 1 1% 14 12% 2 1%

37 9 Cooling 13 12% 12 10% 12 5%

37 7 Tires 6 5% 8 6% 23 10%

15 4 Fuel 7 6% 5 4% 3 2%

8 3 Exhaust 4 4% – – 4 2%

26 5 Brakes 3 3% 3 3% 20 9%

470 100 Total 112 100% 117 100 241 100

Activity-based Costing(Analysis Road Calls - January - March)

Electrical

BATTERY 121

STARTER 15

ALTERNATOR 25

CABLES 20

STOPLIGHTS 25

MARKER LIGHTS

25

TOTAL 151

Hydraulic

LINES + FITTINGS

45

FLUIDS 15

MOTOR 15

OIL 25

BLEED SYSTEM 15

CONTROLS 10

FIBER OPTICS 25

TOTAL 97

Mechanical

LINES + FITTINGS

15

FLUIDS 15

MOTOR 20

OIL 25

BLEED SYSTEM 25

CONTROLS 15

FIBER OPTICS 25

TOTAL 82

1:1parts vs. labor spending ratio

Identify parts costs by:

✓ Used parts per repair order✓ Vehicle class✓ Fleet type✓ Monthly expense✓ Quarterly expense✓ Year-over-year expense

5. Parts Costs vs. Repair Costs

Sample Activity-based Costing Form

General ledger + Accounts payable

Sample Activity-based Costing Report

Common Class – High Cost Components

ALL MOST

Tires Lights (LED)

Preventive Maintenance Cooling (A/C + Heat)

Power Plant (Cooling) Fuel

Brakes Cranking

Cab (Sheet Metal + Plastic) Abuse + Accident

Steering

Suspension

Maintenance-Component Life Cycle Costs

Type + Description # of vehicles Num R/O Total DOL CommDOL Parts DOL Labor

DOL

Tires Brakes replace Brakes repair Power replace

Power repair (40% Cooling) Preventive maintenance

Suspension Lighting Steering

5041502849

150445344

65916256343

3361501302

1,616319

110,80357,94340,90339,67930,11468,12446,86540,12932,273

3,02133––42–

265–

106

94,87531,32415,90726,96810,0653,410

22,97811,67114,326

12,90620,58524,99712,69320,00764,71423,62128,45817,842

Total for Top 7 components 457,347 231,52450.62%

225,82349.48%

Total for All Components 759,548 363,978 47.92%

391,28252.08%

6. InventoryTurnover

The cost of simply storing inventory makes up for around 34% of your inventory’s total value.

Vehicle Parts and Supply Management

Parts Concerns: Small Problems, Small Solutions● On time delivery (consistency + reduced downtime)● Percentage of purchase order delivered● Discounts per volume invoice integrity● Warranty (6 months/12 months + reimbursements)● Comebacks (failures + core integrity) ● Core conditions for rebuild integrity● Rebuild vs. remanufactured vs. new vs. OEM vs. gray market● Interchangeability + max min levels & adjustments + fill rates● High availability for vehicles and equipment for efficient usage

Parts Carrying Costs Summary

The key is how you compare to the

“norm” and where you can reduce

costs.

SPACE 4%

SHELVING, MATERIAL-HANDLING, ADMIN 1%

TAXES 1%

INSURANCE 2%

PERSONNEL 11%

SHRINKAGE 5%

MONEY 10%

Context Is PowerGetting the most out of your fleet data requires a powerful

asset management solution aimed at minimizing chaos and helping you focus on what matters most — your business

objectives.

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