Fleet ControlSecrets to Success

The greatest fleet managers take advantage of effective best practices and all of the industry knowledge and technology

available in order to ensure a successful operation

Run a Better, Smarter, More Efficient Fleet

In every fleet operation, regardless of size, there are many opportunities to control costs and reduce expenses without compromising on service, quality or reliability. It’s finding these opportunities, and taking advantage of them that makes the difference between operating an efficient, productive fleet and an unpredictable, expensive one…

Where do those opportunities exist?

• Fuel Management

• Tire Management

• Parts Inventory Management

• PM Management

• Warranty Tracking and Recovery

• Shop and Mechanic Management

• Work Order Management

• Reporting

• Training

Fueling Best Practices

• Highest cost in the fleet operation

• Tracking Fuel Consumption is critical

• Knowing how much fuel is being consumed and which assets are performing at their MPG potential is key to understanding where improvement is needed

• Assets not performing well are costing too much in fuel usage

• Identify and correct problem areas in fuel consumption

• Find the worst four vehicles in the fleet for fuel cost and guarantee they will have a mechanical issue causing the low MPG

• Fuel Controllers – and interfacing to tracking software to update mileage/fuel

• Utilizing GPS systems

• Driver Training Options

• Fuel Compliance and Reporting

• Assessing the financial impact of not managing fuel consumption

Tire Tracking Best Practices

• Second highest cost in a fleet operation – increase cost savings by 5% overall

• Knowing tires costs and which tires are giving the best life and performance is critical to fleet control

• Comparing CPM by tire size and manufacture

• Produce Replacement Projection reports to assist in budgeting

• Tires that are underperforming can cost time and money for unnecessary breakdowns

• Proper tire pressure can increase a vehicle’s fuel mileage by 3% according to the U.S. Department of Energy

• Five pounds of pressure below equals one gallon of fuel every hundred miles ($$$)

• Alignment is critical to tire wear

• For every ½ inch out of alignment the tire is dragged sideways twenty eight feet each mile

• Mismatched tires by even 1/2 inch can cause the smaller tire to travel a shorter distance causing wear and wasted fuel

Parts Management Best Practices

• Inventory Control

• 90% of all fleets have trouble controlling Parts Inventory

• Knowing what parts you have in inventory and the value is critical since the parts room is the most expensive floor space in the shop

• Increase cash flow by decreasing on-hand inventory – 5-10% savings

• Tracking part failure analysis - (Repeat Repairs)

• Turnover Ratio

• Knowing the inventory turnover ratio and helps identify which parts are not moving – 3 to 5 times per year

• Eliminating non-used and obsolete parts allows for cost management in the inventory

• Economic Order Quantity

• Automating Min/Max

• Auto Create Requisitions

• Keep required parts on the shelf – decrease downtime

Parts Management Best Practices

• Part Kits

• Assigned to the vehicle

• Let Technician know what parts are need, if they are in stock, and where they are located

• Quick and Easy to Post

• Warranty Tracking

• Alert when parts are replaced that they are under warranty

• Must create vendor claim form

• Claims aging

• Bar Coding

• Quick and easy way to relieve inventory

• Year end and cycle count control

• Overall time saver (Up to 80 man hours)

Preventative Maintenance Best Practices

• Avoiding Legal Liability - #1 Reason for PM

• If poorly maintained vehicle failures causes injury or death - cost can be catastrophic

• Failing state inspections can cause loss of license to operate and bankruptcy

• Prolonging Vehicle Life

• Knowing when routine services are due in the fleet is critical

• PM’s done on a consistent basis reduces unscheduled repairs and extends component life

• Improving Performance

• A good PM program can have a big impact on a fleet’s fuel cost

• Good PM can reduce cost related to unscheduled downtime by 25%

• A well maintained air filter can increase gas mileage and engine efficiency by up to 10%

• Reduce unexpectant failures

• Components can be replaced before failure (Tune-up)

• Poor maintenance can reduce the life expectancy of parts and components by up to 30%

Preventative Maintenance Best Practices

• Preventing Poor Inspections

• Breakdowns can almost always be traced to poor preventive maintenance

• Use Circle Inspection

• Standardizing PM

• Scheduling and Alerts

• Templates

• Checklists – Standardize the Process

• Part Kits

• Rewards of a sound PM program

• For every 1 hour that is spent on PM it is estimated that 3-8 hours of repair time is saved ($$$)

• What is the value to your organization to keep a vehicle running for one more year?

Good PM Scheduling

WORK OFF

PM

50%

OTHER

SCHED

7%

DRIVER

VCR

8%

PM

15%

OTHER

UNSCHED

6%

ROAD

CALLS

7%DROP INS

7%

Warranty Tracking Best Practices

• Knowing which warranties exist in the fleet can greatly assist in controlling costs

• Tracking warranties on assets is the easiest way to improve the bottom line

• Mechanics should be notified that a part is under warranty when removed

• Not paying for warrantied work and/or recouping dollars for parts warranties go to the bottom line of fleet costs - Up to $300 per asset

• Having a full cycle warranty tracking process can greatly reduce lost warranty dollars

• Track purchase date, vendor, price, PO#, Invoice# and Work Order#

• Creates the warranty claim form

• Tracks which claims are pending, submitted, and received

• Tracks recovery info such as claim #, check # and amount $$$

• One step process to credit warranty back to the vehicle

Shop and Mechanic Best Practices• Managing Mechanics Time

• Scheduling and Accountability

• Tracking how technicians spend their time allows you to gauge shop productivity and identify where improvements are needed

• Only 50% of potential productivity when not measured

• Assign Tools and Shop Bays - Make them responsible

• Managers Time

• Delegate responsibilities of shop to foreman

• Designate specific times for Salespeople, Phone calls, Meetings, and Training

• List top five things to accomplish by importance – complete fifteen a week - over five hundred in the year

• Reduce Paperwork – Paperless Shop

• Resist the Status Quo – Implement failure analysis!

• Shop Space Management

• Too Little Space

• Disorganization of space-(aisles), tools, and people causes lack of productivity

• Too Much Space

• Excessive walk time to parts, tools, etc. increases effort and results in many expensive, lost man hours

Work Orders Best Practices

• Driver Reports

• Communication between the Drivers and the Shop

• Auto Create Work Orders from Driver Reports

• Easily Create Work Orders

• Templates

• Reason Codes and Priorities

• Capture all costs

• Relieve Inventory / Create Requisitions / Warranty Alerts and Claims

• Paperless Shop

• Time Savings and Accountability

• Track Productivity

• Compare Direct vs. Indirect Hours

• Determine who needs training

Reporting Best Practices

• Reports should be thorough but brief

• Ability to view on screen with print option

• All Inclusive with fuel, tires, parts, labor and CPM

• By date range for help with budgeting

• Warranty-Repeat Repairs and Failure Analysis

• Knowing when specific repairs happened in the past – Repeat Repairs or Warranty

• Compare Cost Analysis for future Purchases – Brakes / Components

• Make, Model, Year Reports

• Be able to determine the cost escalation of the fleet year by year

• Comparing depreciation value and productivity of a new vehicle versus the older one

• Key Performance Indicators

• Help measure performance against goals

• Can evaluate the success of all areas of your operation

• Quickly shows areas that need improvement

History ReportsSee where you are spending your time and $$$

Training Best Practices

• BEST RETURN ON INVESTMENT

• Improves Shop Knowledge

• Improves Quality of Work

• Improves Safety Habits

• Improves Tool functions

• Improves Attitude

• Improves Productivity

• Improves Shop Cleanliness

• Training activities should focus on creating Job Security and Job Satisfaction

Fleet Tracking Software Best Practices

• When something is measured it will improve….

• The key to making effective changes is having the critical data to both alert you to necessary changes and inform you if those changes are working

• Fleet management software is important because it gives fleet managers a wealth of data and metrics to draw from in order to better optimize the fleets under their direction.

• Good FMS with robust features, customizable options and detailed reporting for every operation can help streamline your daily operations and take advantage of the best secrets to success

Benefits of Fleet Management Software• Increased employee productivity, efficiency, and safety

• Easier to assign and track tasks

• Delegate work quicker and more efficiently

• View real-time driver analytics

• Less paperwork processing

• Easily record tasks and inventory without need for a pencil and paper

• Reduced carbon footprint

• Reduces vehicle downtime

• For large fleets, small changes add up to make a significant difference

• Cost control

• Use fleet analytics to optimize purchase of fuel, equipment, and additional vehicles

• More abundant fleet data

• Compile data for every aspect of fleet management, from mechanic metrics to accident information

Five Best Practices for Fleet Managers

• Track Everything

• Understanding where the money is going if the first step to effectively managing it

• Accurate and Timely Information is Your Greatest Weapon

• Don’t Underestimate the Power of Preventative Maintenance

• Breakdowns are your worst enemy

• Vehicle Downtime costs on average $100 per hour

• Trim Costs by Making Smart Changes

• Trim Fuel Expenses

• Manage Parts Inventory

• Recover Those Warranties

• Know how Shop Technicians are Spending their Time

Five Best Practices for Fleet Managers

• Open the Lines of Communication

• Develop and Implement a Company Policy

• Make Internal Communication a Habit

• Never Stop Improving

• Measure Performance – Fine Tune

• Automate Internal Processes

• Look for Areas that Need Improvement

• Keep Up with Industry Standards

Thank You