The document discusses best practices for fleet management. It identifies opportunities to control costs and reduce expenses in areas like fuel management, tire management, parts inventory, preventative maintenance, warranty tracking, shop management, work order management, and reporting. Some key strategies mentioned include tracking fuel consumption and identifying inefficient vehicles, comparing tire life and costs, managing parts inventory levels, implementing consistent preventative maintenance programs, tracking warranties to recover costs, managing technician time and productivity, and generating detailed reports. The document emphasizes that measuring performance and continuously improving processes can help fleets operate more efficiently.
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Fleet Control Secrets to Success
1. Fleet Control
Secrets 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
2. 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…
3. Where do those opportunities exist?
• Fuel Management
• Tire Management
• Parts Inventory Management
• PM Management
• WarrantyTracking and Recovery
• Shop and Mechanic Management
• Work Order Management
• Reporting
• Training
4. 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
• UtilizingGPS systems
• DriverTrainingOptions
• Fuel Compliance and Reporting
• Assessing the financial impact of not managing fuel consumption
5. TireTracking 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
6. 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
• EconomicOrder Quantity
• Automating Min/Max
• AutoCreate Requisitions
• Keep required parts on the shelf – decrease downtime
7. Parts Management Best Practices
• Part Kits
• Assigned to the vehicle
• LetTechnician know what parts are need, if they are in stock, and where they are located
• Quick and Easy to Post
• WarrantyTracking
• 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)
8. 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
• ProlongingVehicle 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%
9. 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?
10. Good PM Scheduling
WORK OFF
PM
50%
OTHER
SCHED
7%
DRIVER
VCR
8%
PM
15%
OTHER
UNSCHED
6%
ROAD
CALLS
7%
DROP INS
7%
11. WarrantyTracking 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# andWork 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
12. Shop and Mechanic Best Practices
• Managing MechanicsTime
• Scheduling andAccountability
• 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
• AssignTools and Shop Bays - Make them responsible
• ManagersTime
• Delegate responsibilities of shop to foreman
• Designate specific times for Salespeople, Phone calls, Meetings, andTraining
• List top five things to accomplish by importance – complete fifteen a week - over five hundred in the year
• Reduce Paperwork – Paperless Shop
• Resist the StatusQuo – 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
13. Work Orders Best Practices
• Driver Reports
• Communication between the Drivers and the Shop
• AutoCreateWork Orders from Driver Reports
• EasilyCreateWork Orders
• Templates
• Reason Codes and Priorities
• Capture all costs
• Relieve Inventory / Create Requisitions /WarrantyAlerts and Claims
• Paperless Shop
• Time Savings and Accountability
• Track Productivity
• Compare Direct vs. Indirect Hours
• Determine who needs training
14. 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
16. Training Best Practices
• BEST RETURN ON INVESTMENT
• Improves Shop Knowledge
• Improves Quality ofWork
• Improves Safety Habits
• ImprovesTool functions
• Improves Attitude
• Improves Productivity
• Improves Shop Cleanliness
• Training activities should focus on creating Job Security and Job Satisfaction
17. FleetTracking 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
18. 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
19. Five Best Practices for Fleet Managers
• Track Everything
• Understanding where the money is going if the first step to effectively managing it
• Accurate andTimely Information isYour 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
• RecoverThoseWarranties
• Know how ShopTechnicians are Spending theirTime
20. 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 – FineTune
• Automate Internal Processes
• Look for Areas that Need Improvement
• Keep Up with Industry Standards