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Optimized utilization through measurement of vehicle use
Lift Truck Idle Times Reporting In Real Time
That’s What Matters Most
Integrated Visual Data Technology Inc.
Utilization problem solving by analyzing vehicle activity, time spent actually handling products
The Importance of Right Measurement for Evaluating
Industrial Truck Utilization
Since labor and equipment are the primary controllable cost drivers in most material
handling facilities, managers are seeking for accurate, reliable and most economical ways to
manage these factors. In majority cases, operator and equipment productivity, not the cost of
equipment is their primary challenge.
Deciding what to measure, key performance indicator
Getting your performance measurement right involves identifying the areas of your material
handling vehicle operation it makes most sense to focus on and then deciding how best to
measure your performance in those areas. This type of measurement unit is referred to as a
key performance indicator (KPI) The two key attributes of a KPI are quantifiability (You must
be able to reduce it to a number) and that it directly capture a key business drive.
Knowing how each of your material handling vehicle is utilized is valuable information in it’s
own right, but a good measurement system will also let you examine the triggers for any
changes in performance. The key challenges with performance management is to find which
specific measure (or measures) will enable you to improve your business.
Getting the most from your KPI’s
The purpose of performance measurement is ultimately to drive future improvements in
performance. There are two main ways you can use KPI’s to achieve this kind of
management power.
- The first is to use your KPI’s to spot potential problems or opportunities.
- The second is to use your KPI’s to set targets for employees throughout your operation
Telemetry systems
Few of the OEM’s and other VMS providers of fleet management have developed systems
able to offer “Big Data” collecting all kinds of information including a lot of options few people
need them all. Instead of a large initial investment in such VMS systems the customers
trendsetting is to focus on modular and functionality solution concerns what matter most to
them.
Maximize ROI from technology
Too often companies make the biggest mistake by implementing a solution without knowing
what and how well they were doing before they implemented it.
A preliminary step should be to setting the metrics and putting them in place is order to
understand your current performance. Without the current baseline in place any subsequent
measures of ROI will be meaningless.
What is the area for greatest return on technology
investment
The study shows that of the five year cost of typical lift truck ownership,
up to 80% devolves on the operator cost.
It is time to apply measurement in place to manage and control the 80% of largest
component cost by assigning vehicle utilization awareness, optimum uptime, accountability
to individual operators and focus on setting performance targets to give everyone in your
operation a clear sense of what they should be aiming for.
Improving your current asset utilization
The immediate access to the vehicle usage status in real time for each vehicle and having
the same data visible to the operator is the most important management tool to maximize
asset utilization and operator efficiency.
The adaption of UT SkidWeigh plus technology will enable a company to take an existing
asset and greatly improve its productivity. This can have a huge impact on the company’s
balance sheet if it means that increased productivity of the existing forklift means that they
will not have to acquire new asset.
Key measurement metrics
The material handling fleet optimized utilization through measurement of every vehicle
idling / downtime events requires management attention because of high cost since they are
always present and can grow rapidly without proper control.
The individual driver excessive idling and identified downtimes might not seem that
important in the grand scheme of things but if your lift truck usage is operating below
expected utilization standard will have a huge impact by run up costs that are out of control.
The only way that material handling vehicle can be put to productive use is through an
automatic measurement of vehicle activity associating the operator accountability is
fundamental to addressing vehicle utilization.
Right Data, Big Impacts
The utilization factor and monitoring of the vehicle operational *raw data, driving and
standing loaded and unloaded, lift time, reach, retract times including number of loads per
session, automatic detection of vehicle idle time and keeping close attention to identify
downtime events for each operator is the key to increase the vehicle utilization and operator
productivity substantially.
The idea is not to wait and analyze data after one shift, or one day, or one week or month,
but to have instant visibility throughout the measurement process that will let you examine
changes in performance and put you in a better position to manage fleet performance
proactively.
Review for management
All material handling operations are different, even within the same industry companies do
the same things in different ways. There are good chances that you do not know the idle
time as a total time when key is turned on and vehicle not being productive for each of your
forklift in your material handling fleet.
Industry insiders claim that average forklift idling time in the industry is around 45%, some
other operation having 33% and considered as good and operations with 25% are
considered as a world class. One of the VMS vendor claims that data collected from over
50000 VMS vehicle installation across different industries, one hour of product moved for
every 8 hours paid.*
* It’s not known what measurement metrics was used to arrive to above idling data and information related to
one hour of product moved for every 8 hours paid.
If the forklift fleet idle time range from 25% to 45% is true, than it’s obvious that this area
require careful consideration to examine the reasons for such inefficiency.
It’s important to note that forklift utilization is only a part of the overall material handling
efficiency of the system in place.
The efficiency does not depend on the forklift operator alone, but on the other elements of
the material handling system as a whole.
The only other logical explanation of not being able to increase the vehicle utilization is that
the other elements within the material handling system do not allow better vehicle utilization
due to the following reasons as of example:
Scheduling difficulties
Operator waiting for material
Traffic jams
Insufficient storage
Unexpected delays
Lack of alternate paths
No incentive to work more productively, etc.
The implementation process of
putting vehicle idle time measurement in place
The question now is how the optimum utilization of each material handling equipment can be
achieved in an economical and reliable manner in day to day operation. Unlike of a large
initial investment in a base telematics solutions with purchases of many
units required to gather month’s worth of data for staff to identify areas
with idle trucks, the UT SkidWeigh Plus will provide valuable insight relating to key metrics,
the vehicle idle
Solution
Installation of UT SkidWeigh system in your operational facility will automatically record all
idling times, including preselected five justified downtime reasons and options of additional
information available from different UT SkidWeigh Plus models.
The analysis of your data after one week you will get the current status and assessment of
productive operating hours for your fleet based on data collected only from one vehicle. It’s
beginning only and starting point for the system information on idle times to be used of target
setting that will help you implement your strategies for growth.
The purpose for vehicle idling measurement is ultimately to spot potential problems or
opportunity telling you what's going on in the areas of vehicle uptime and operator
performance.With trends moving in wrong direction, you will know that you have a problem
to solve. Similarly, if the trends move consistently in your favour, you will have practical and
direct way of monitoring and encouraging the progress of individual employees.
The vehicle downtime will provide you vital information about what's happening now and it
also provides the starting point to implement performance standards.
Operator Engagement
Vehicle actual idling mode is automatically activated, with real time
event information in visual and audible form, shown to the operator
on LCD display, recorded to USB or communicated to web page for
analysis and reporting.
Immediate Benefits
With vehicle key switch turned on and the constant automatic measurement of true vehicle
idling and identifying operational downtimes on every lift truck you will be able to reduce your
fleet unproductive idling times, immediately.
With LCD visual display messages of the actual activity status that is shown to the operator
in real time and recorded for the management in itself is a means of increased percentage of
vehicle hours utilized and operator productivity without any further analysis.
USB recording Web page reports
Forklift idling 5P

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Optimized utilization through measurement of forklift use

  • 1. Optimized utilization through measurement of vehicle use Lift Truck Idle Times Reporting In Real Time That’s What Matters Most Integrated Visual Data Technology Inc. Utilization problem solving by analyzing vehicle activity, time spent actually handling products
  • 2. The Importance of Right Measurement for Evaluating Industrial Truck Utilization Since labor and equipment are the primary controllable cost drivers in most material handling facilities, managers are seeking for accurate, reliable and most economical ways to manage these factors. In majority cases, operator and equipment productivity, not the cost of equipment is their primary challenge. Deciding what to measure, key performance indicator Getting your performance measurement right involves identifying the areas of your material handling vehicle operation it makes most sense to focus on and then deciding how best to measure your performance in those areas. This type of measurement unit is referred to as a key performance indicator (KPI) The two key attributes of a KPI are quantifiability (You must be able to reduce it to a number) and that it directly capture a key business drive. Knowing how each of your material handling vehicle is utilized is valuable information in it’s own right, but a good measurement system will also let you examine the triggers for any changes in performance. The key challenges with performance management is to find which specific measure (or measures) will enable you to improve your business. Getting the most from your KPI’s The purpose of performance measurement is ultimately to drive future improvements in performance. There are two main ways you can use KPI’s to achieve this kind of management power. - The first is to use your KPI’s to spot potential problems or opportunities. - The second is to use your KPI’s to set targets for employees throughout your operation Telemetry systems Few of the OEM’s and other VMS providers of fleet management have developed systems able to offer “Big Data” collecting all kinds of information including a lot of options few people need them all. Instead of a large initial investment in such VMS systems the customers trendsetting is to focus on modular and functionality solution concerns what matter most to them. Maximize ROI from technology Too often companies make the biggest mistake by implementing a solution without knowing what and how well they were doing before they implemented it. A preliminary step should be to setting the metrics and putting them in place is order to understand your current performance. Without the current baseline in place any subsequent measures of ROI will be meaningless.
  • 3. What is the area for greatest return on technology investment The study shows that of the five year cost of typical lift truck ownership, up to 80% devolves on the operator cost. It is time to apply measurement in place to manage and control the 80% of largest component cost by assigning vehicle utilization awareness, optimum uptime, accountability to individual operators and focus on setting performance targets to give everyone in your operation a clear sense of what they should be aiming for. Improving your current asset utilization The immediate access to the vehicle usage status in real time for each vehicle and having the same data visible to the operator is the most important management tool to maximize asset utilization and operator efficiency. The adaption of UT SkidWeigh plus technology will enable a company to take an existing asset and greatly improve its productivity. This can have a huge impact on the company’s balance sheet if it means that increased productivity of the existing forklift means that they will not have to acquire new asset. Key measurement metrics The material handling fleet optimized utilization through measurement of every vehicle idling / downtime events requires management attention because of high cost since they are always present and can grow rapidly without proper control. The individual driver excessive idling and identified downtimes might not seem that important in the grand scheme of things but if your lift truck usage is operating below expected utilization standard will have a huge impact by run up costs that are out of control. The only way that material handling vehicle can be put to productive use is through an automatic measurement of vehicle activity associating the operator accountability is fundamental to addressing vehicle utilization. Right Data, Big Impacts The utilization factor and monitoring of the vehicle operational *raw data, driving and standing loaded and unloaded, lift time, reach, retract times including number of loads per session, automatic detection of vehicle idle time and keeping close attention to identify downtime events for each operator is the key to increase the vehicle utilization and operator productivity substantially. The idea is not to wait and analyze data after one shift, or one day, or one week or month, but to have instant visibility throughout the measurement process that will let you examine
  • 4. changes in performance and put you in a better position to manage fleet performance proactively. Review for management All material handling operations are different, even within the same industry companies do the same things in different ways. There are good chances that you do not know the idle time as a total time when key is turned on and vehicle not being productive for each of your forklift in your material handling fleet. Industry insiders claim that average forklift idling time in the industry is around 45%, some other operation having 33% and considered as good and operations with 25% are considered as a world class. One of the VMS vendor claims that data collected from over 50000 VMS vehicle installation across different industries, one hour of product moved for every 8 hours paid.* * It’s not known what measurement metrics was used to arrive to above idling data and information related to one hour of product moved for every 8 hours paid. If the forklift fleet idle time range from 25% to 45% is true, than it’s obvious that this area require careful consideration to examine the reasons for such inefficiency. It’s important to note that forklift utilization is only a part of the overall material handling efficiency of the system in place. The efficiency does not depend on the forklift operator alone, but on the other elements of the material handling system as a whole. The only other logical explanation of not being able to increase the vehicle utilization is that the other elements within the material handling system do not allow better vehicle utilization due to the following reasons as of example: Scheduling difficulties Operator waiting for material Traffic jams Insufficient storage Unexpected delays Lack of alternate paths No incentive to work more productively, etc. The implementation process of putting vehicle idle time measurement in place The question now is how the optimum utilization of each material handling equipment can be achieved in an economical and reliable manner in day to day operation. Unlike of a large initial investment in a base telematics solutions with purchases of many units required to gather month’s worth of data for staff to identify areas
  • 5. with idle trucks, the UT SkidWeigh Plus will provide valuable insight relating to key metrics, the vehicle idle Solution Installation of UT SkidWeigh system in your operational facility will automatically record all idling times, including preselected five justified downtime reasons and options of additional information available from different UT SkidWeigh Plus models. The analysis of your data after one week you will get the current status and assessment of productive operating hours for your fleet based on data collected only from one vehicle. It’s beginning only and starting point for the system information on idle times to be used of target setting that will help you implement your strategies for growth. The purpose for vehicle idling measurement is ultimately to spot potential problems or opportunity telling you what's going on in the areas of vehicle uptime and operator performance.With trends moving in wrong direction, you will know that you have a problem to solve. Similarly, if the trends move consistently in your favour, you will have practical and direct way of monitoring and encouraging the progress of individual employees. The vehicle downtime will provide you vital information about what's happening now and it also provides the starting point to implement performance standards. Operator Engagement Vehicle actual idling mode is automatically activated, with real time event information in visual and audible form, shown to the operator on LCD display, recorded to USB or communicated to web page for analysis and reporting. Immediate Benefits With vehicle key switch turned on and the constant automatic measurement of true vehicle idling and identifying operational downtimes on every lift truck you will be able to reduce your fleet unproductive idling times, immediately. With LCD visual display messages of the actual activity status that is shown to the operator in real time and recorded for the management in itself is a means of increased percentage of vehicle hours utilized and operator productivity without any further analysis. USB recording Web page reports Forklift idling 5P