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Fleet Management Basics

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Overview of basic concepts of fleet management.

Overview of basic concepts of fleet management.

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Fleet Management Basics Fleet Management Basics Presentation Transcript

  • Fleet Management BasicsPrepared by: James L Cade
  • To properly manage a fleet at its optimum level, understanding Total Cost of Ownership (TCO) is critical
    2
    • Assets – aligning holding periods for vehicles will impact TCO
    • Maintenance – once vehicle holding period is set, maintenance programs must be aligned
    • Fuel – determining the right fuel strategy will impact TCO and operations
  • TCO, measured against an operational activity, is a key metric in establishing a baseline for fleet efficiency, deployment strategy and operating costs
    3
    Operating Cost Levers
    Key Metrics for Evaluation
    • How do I lower the cost per vehicle?
    Fleet Efficiency Levers
    • How can revenue be increased
    with same number of vehicles?
  • TCO can be managed by optimizing vehicle holding periods
    Lifecycle Strategic Approach
    Define optimal holding periods for each major type of vehicle asset
    Establish policy to ensure vehicle holding periods are managed appropriately
    Identify critical parameters to be managed (i.e. source costs, residual values, should be maintenance costs, etc.)
    Light Duty Car & Truck
    Specialized Vehicles
    • Lower source cost
    • High resell market
    • Maintain high residual value
    • Higher source cost
    • Significant up-fit cost
    • Low mileage fleet
    Medium and Heavy Truck
    • Lower source cost
    • Minimal up-fit cost
    • Potential resell market
    • Average mileage vehicles
    10 YR
    1 YR
    5 YR
    Longer holding period
    Shorter holding period
    Fleet maintenance practices will need to be aligned with holding period strategy
    4
  • 5
    PM and PdM
    • Technical Ownership
    • Time Directed / Condition Directed
    • Run to Failure
    • Parameter / Intervals
    • Operations Role
    • Availability
    Work Identification
    • Operating Standards
    • Operator Training
    • Operator Troubleshooting
    • Equipment Monitoring
    • Equipment Numbering / Location
    • W.0. Information Standards
    Authorization / Prioritization
    • “Need” vs. “Want”
    • Priority Standards
    • Equipment Criticality
    • Authorization Levels
    • Cost Review
    Planning
    • Job Scope
    • Estimating (Labor & Parts)
    • Equipment Histories
    • Standard Jobs
    • Integration with Planning
    Backlog Management
    • Ownership
    • Duplication
    • Cost Benefit Analysis
    • Review of Aged Work
    • Cancelled Work Process
    Scheduling
    • Daily Scheduling
    • Operations Input
    • Priority Issue Resolution
    • Resource Allocation
    • Outsourcing Schedule
    • Material Schedule
    Work Assignment
    • Technicians (Who)
    • Detailed Job Explanation (What)
    • How Long (When)
    • Job Location (Where)
    • Repair Specifics (How)
    • Safety / Environmental Req
    Progress Management
    • Work Criticality
    • Awareness of Job Status
    • Identify and Document Barriers
    • Reassign As Necessary
    • Communication
    • Decision Making Process
    Work Evaluation and Action
    • Goal Setting
    • Documenting problems
    • Problem ID (Root Cause)
    • Problem Solving & Measures
    • Progress of Past Problems
    Key Measurements
    • Cause Indicators
    • Workload / Scheduling / PM Comp
    • Effect Indicators
    • Performance / Cost / MTBF
    • Distribution and Utilization
    Maintenance Objectives
    • Reliability Improvements
    • Cost Reductions
    • Service Level Improvements
    • Management Capability Advancements
    • Asset Optimization
    Work Order Requirements
    Define and develop processes that tracks and captures data through the entire repair cycle
  • 6
    Work Identification
    Progress Management
    Work Evaluation and Action
    PM and PdM
    Authorization / Prioritization
    Planning
    Scheduling
    Work Assignment
    Key Measurements
    Backlog Management
    Reliability
    • Equipment Criticality
    • Root Cause Analysis
    • Reliability KPIs (MTBF)
    • Failure Analysis
    • Equipment Design
    • Warranty Management
    Organization Development
    • Strategic Planning
    • Team Building
    • Organizational Alignment
    • Functional Accountability
    • Responsibility Defined
    • Management Ownership
    Maintenance Engineering
    • Maintenance Support
    • Repair Strategy
    • Standard Job Input
    • Capital Resources
    • PM/PDM Analysis & Requirements
    Contractor Management
    • Outsourcing Decision
    • Contractor Safety / Insurance
    • Contractor Training
    • Selection Procedure
    • Cost Tracking
    • Incentives
    Skills Training
    • Ranking & Tracking Systems
    • Identify Skill Set Requirements
    • Establish Skill Set Goals
    • Employee Review & Input
    • Establish Training Programs
    • Recognition
    Production Support
    • Equipment Operating Stds
    • Equipment Monitoring
    • Permitting
    • Product Handling
    • Emergency Planning
    Work Order Requirements
    Maintenance Objectives
    • Reliability Improvements
    • Cost Reductions
    • Service Level Improvements
    • Management Capability Advancements
    • Asset Optimization
    Support Functions
    Develop the functions needed to support and define the repair process
  • 7
    Contractor Management
    Work Identification
    Maintenance Engineering
    Progress Management
    Work Evaluation and Action
    PM and PdM
    Authorization / Prioritization
    Planning
    Scheduling
    Work Assignment
    Organization Development
    Skills Training
    Reliability
    Key Measurements
    Backlog Management
    Production Support
    Support Equipment
    • Scheduling
    • Scheduling Break Policy
    • KPIs
    Inventory/Purchasing
    • Requisition Process (Roles)
    • Stock & Non-Stock Procurement
    • Material Receiving / Storing
    • Security
    • Inventory Management
    • Inventory KPIs
    Tools and Equipment
    • New Hire Tool Policy
    • Technician Required Tools
    • Specialty Tools Responsibility
    • Inspection and Repair
    • Contractor Tools
    Core Elements
    Asset Support
    Maintenance Objectives
    • Reliability Improvements
    • Cost Reductions
    • Service Level Improvements
    • Management Capability Advancements
    • Asset Optimization
    Support Functions
    Identify the necessary actions and support needed to insure assets are available for the repair function
  • 8
    Contractor Management
    Work Identification
    Maintenance Engineering
    Progress Management
    Work Evaluation and Action
    PM and PdM
    Authorization / Prioritization
    Planning
    Scheduling
    Work Assignment
    Organization Development
    Skills Training
    Reliability
    Key Measurements
    Backlog Management
    Production Support
    Support Equipment
    Inventory/Purchasing
    Tools and Equipment
    Unscheduled Work
    • Troubleshooting
    • Labor and Equipment Req.
    • Labor and Equipment Avail.
    • Technical Support
    • Present Maintenance Schedule
    • Communication
    Other
    • Communication / Cooperation
    • Inaccurate Inventory
    • Pilfering and/or Theft
    • Inadequate Materials Inspection
    • Equipment Availability
    • Budget
    Core Elements
    Maintenance Objectives
    • Reliability Improvements
    • Cost Reductions
    • Service Level Improvements
    • Management Capability Advancements
    • Asset Optimization
    Support Functions
    Asset Support
    Constraints
    Indentify and address the constraints to the repair process
  • 9
    Contractor Management
    Work Identification
    Maintenance Engineering
    Progress Management
    Work Evaluation and Action
    PM and PdM
    Authorization / Prioritization
    Planning
    Scheduling
    Work Assignment
    Organization Development
    Skills Training
    Reliability
    Key Measurements
    Backlog Management
    Production Support
    Support Equipment
    Other
    Inventory/Purchasing
    Tools and Equipment
    Core Elements
    Maintenance Objectives
    • Reliability Improvements
    • Cost Reductions
    • Service Level Improvements
    • Management Capability Advancements
    • Asset Optimization
    Support Functions
    Asset Support
    Constraints
    Unscheduled Work
    Maintenance Management System
    • Holder of Maintenance Process
    • Accessibility and Table of Authorities
    • Compatible with Other Business Systems
    • Cost Tracking to Specific Equipment
    • Labor
    • Parts / Materials
    • Equipment & Repair Histories
    • Planning, Procurement, Scheduling &
    Executive Interface
    • KPI Development & Generation
    Tie all the elements together with a system that meets organizations objectives
  • Establish maintenance intervals that balance costs and operational considerations
    1600
    1400
    Ideal PM Interval
    1200
    1000
    Total Cost
    800
    Cost per Hour or Mile
    Preventive Maintenance Cost
    600
    400
    200
    Maintenance Cost
    0
    0
    10
    20
    30
    40
    50
    60
    70
    80
    90
    Accumulated Time or Miles
  • Inspecting maintenance work improves reliability through assurance of quality
    Helps predict future issues
    Quality
    Inspections
    PM Inspection Process
    Number and type of breakdowns
    Lagging
    Leading
    Provides insight to PM Quality
    Implement a quality control system for maintenance repairs
  • Fuel Strategy Development
    12
    Variables To Consider
    Fuel Card
    Bulk Fuel
    Mobile Fueling
    Maintenance Strategy
    Lubricants
    Internal Fueling
    External Fueling
    Evaluate Options
    Fleet Activity Reports
    • Driver Usage
    • Vehicle Usage
    Expense Reports
    • Fuel Costing
    • Fuel Tax Refunds
    • IFTA
    Management Reports
    • Total Vehicle Cost
    • Fuel Spend by Locn.
    • Fuel Budgeting
    • Price Trend Analysis
    Minimal Reporting Requirements
  • Controlling Miles per Gallon Can Pay Big Dividends
    13
    In this example a company operating a fleet of 1k trucks, averaging 100k miles per year /per truck can reduce its fuel expense by more than $640k per year by increasing its average fuel economy by only one-tenth of a mile per gallon
  • The Best Way to Improve Fuel Economy Is To Reduce Idle Time
    14
    • An OTR truck idling an average 26.25 hours per week, will consume more than 1,365 gallons of fuel in the period of a year
    • In this example, reducing idle time by only 5% (3.75 hours per week) results in a savings of more than $515 per week through reductions in fuel usage.
    • On a fleet of more than 1k trucks this would amount to more than $500k annually
  • For more information contact James L Cade at 901-651-0157
    15