1. Protecting and Increasing
Profit
By Billy B. Teague
What follows is a list of items that I would be investigating
if I were being used as your Maintenance and Expense
Consultant and I am primarily looking at service and
maintenance of fleet equipment.
I understand that it is unusual to give anyone the ideas one
would normally be selling as their service, but I wish to
relay the value I could bring to your company.
If you decide this information is useful to your company, I
would like to offer my services as a consultant and would
consider employment with your company if presented the
right opportunity.
Protecting and Improving Profit Page 1 of 7
By Billy Teague, 903-241-4468 April 2015

2. My List
I understand that some of these items may already be in place so please forgive any basic
description.
I would ask if biweekly or monthly reports were being utilized to track required
maintenance and needed mechanical repairs in order to verify work completion. These
reports would also identify multiple failure vehicles and equipment in order to determine
a faulty repair process or if equipment should be eliminated from service.
Is there a daily paperwork process {Pre and Post Trips and what items are being
checked} for drivers and is it being monitored? The driver is the best and most consistent
source of information for any piece of equipment. The mileage and information on these
forms should be checked daily to verify maintenance needs and whether any
malfunctions are reported.
Has a mileage or hour interval been established for each type of equipment so the person
monitoring knows when a service is required? The system I describe does not require a
driver to know the maintenance schedule, but the monitor alone who will advise shop
foreman {unless foreman is the monitor} or necessary personnel when equipment needs
to be removed from service.
Does the driver fill out a repair request when a malfunction has occurred with a piece of
equipment? Verbal relays of information are usually forgotten or remembered in part and
not the whole, possibly leaving out valuable diagnostic information needed by the repair
facility or technician. Train drivers to fill out repair request forms and where to place
them or if an immediate or safety repair is needed, a contact person. From this point the
shop foreman and not the service monitor should prioritize and assign the repair order of
equipment.
The repair request is attached to the final work order and given to the repair technician
{the technician now has the driver's full description of the problem} on which the
technician documents his or her repair process. The finished work order is given to the
shop foreman for verification that the repair is complete.
This process followed each day eliminates mistakes and forgotten malfunctions that
could become more expensive and unsafe if left unattended.
The process though simple is highly effective in reducing repair costs due to ignorance
and negligence {driver pre and post trip and repair request form accountability}.
Technician overtime as well as parts costs will be reduced as a result. Repairs caught
early are less expensive and take less time to repair.
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By Billy Teague, 903-241-4468 April 2015

3. Maintenance and Service
Is your company taking advantage of fuel additives on a consistent basis? Do you have a
weekly to monthly process for treating your fuel {depends on fuel usage}? By simply
adding a quality fuel additive to diesel engines, you can increase fuel economy by 2 to
3%. By including an injector cleaning on equipment determined by miles or time you can
increase fuel savings to at least 6%. That is a return of six dollars for every hundred
spent. If you spend $500,000 in fuel in a month, you could reduce fuel cost by $30,000
per month. In a year you would save $360,000. Let me emphasize that these savings
cannot be seen if a process to treat your fuel is not in place and maintained.
How often are your air filters replaced? May I suggest replacing them on at least a
monthly basis? It’s been my experience that drivers relying on technicians to keep them
changed, easily overlook air filters. By having a predetermined replacement schedule
each month, all filters are replaced and engine related malfunctions are reduced
eliminating driver and equipment down time plus the fuel savings that cleaner filters
generate. Fuel filter replacement should be determined by the quality of fuel in an area.
Please note that trucks with cabin air filters should be replaced at the same time the
engine air filters are replaced. If left unchanged dirt will cake the evaporator core
suffocating the ac system resulting in expensive repairs.
Take advantage of on-sight and location fuel tanks. Obviously, fuel costs less in bulk so
each opportunity to fill trucks or equipment lowers fuel expense. If on a drilling location
make arrangements with the drilling company to use their location tanks when filling
equipment. Many times the fuel is made available at no cost or the cost is reduced due to
volume buying.
Does your company have a policy or process for {usually smaller diesel engine trucks}
truck idling? Idling has become a major cost concern when it comes to fuel usage. Do
field hands sit in trucks idling all day when it’s hot or cold outside? Some idle their
trucks even if the weather is pleasant. Most companies have GPS units on their trucks for
monitoring this concern. How long has it been since the idle times where checked on
your trucks? Also note that today’s diesel engine trucks have a particulate filter in the
exhaust and these can be very expensive to clean or replace. By reducing the idle time
and having a driver process in place to have the trucks driven for 45 minutes at speeds of
55mph to 65mph without slowing. This allows the exhaust system to regenerate and clean
itself. This could drastically reduce exhaust and EGR related repairs. Average EGR
Valves {parts cost} are $500 to $900. Particulate filter replacement {smaller diesel
trucks} trucks average $2000 to $2400.
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By Billy Teague, 903-241-4468 April 2015

4. Oil Changes
Does your company use long life oils? Not simply synthetic oil but long life oils. There
are many on the market but I recommend Mantek Fluids. They are worldwide company
and have been around for decades and are centered in Dallas, Texas. Mantek offers a
warranty for every piece of equipment in which their fluids are used in case of oil related
failures. Mantek to date has not had one oil related failure.
I will use smaller diesel engine trucks as an example though these savings can be applied
to larger over the road trucks. Reduce oil changes from every 5K miles to every 20K
miles {this interval can be adjusted for over the road trucks}. That is a reduction of 65%
on common oil changes. I do recommend that a new oil filter be replaced every 5K miles.
If you spend $100,000 on oil changes every month, you would save $65,000 a month and
$780,000 a year. All the time you are saving money, the engines are fully guaranteed
against oil related failures.
Tires and Merchandising
Becoming a tire distributor a company can save 15 to 20% on all tire purchases. This
could be an option for any company that wishes it. If your company purchased $500,000
worth of tires a year saving 20%, the yearly savings would be $100,000 a year.
My estimates are based upon simple figures that will not reflect your actual fleet numbers
that I would presume to be much larger than my projections. The opportunities are there
if acted upon.
Merchandising Locations
Has a comparison of prices and products been conducted to determine whether it would
be profitable to have all items or most items purchased in one region and shipped to
another? I was able to save my prior company 25% only reducing the profitability by 5%
to ship throughout the state still saving 20% overall. Midland being the most expensive
location saved the most.
Do all repair shops and warehouses monitor stocking on a seasonal basis and set stocking
levels accordingly? Lower investment dollars keep profit maximized.
Bulk fluids
Are all shops using bulk fluids? Items such as oil, anti freeze, brake fluid, hydraulic and
DEF fluid are least expensive in bulk.
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By Billy Teague, 903-241-4468 April 2015

5. Depending on the market, large percentages of profit could be realized through proper
merchandising.
Do you have an experienced monitor verifying repairs from repair facilities? Do you have
a monitor that understands how to play the dealership game? Every manufacturer will
make warranty adjustments to assist their better customers if pressed. You simply need to
know when and who to ask.
Here are some conditions that create an atmosphere of cooperation with a dealer.
1. Purchase your trucks from them.
2. Have {Some} customer pay repairs made at the dealer.
3. Purchase {Some} parts from dealer parts department.
4. Know your warranty and what it covers.
5. Perform Internet research for any problems occurring to your trucks. Most times you
will find common problems and knowing about them gives you the upper hand.
Recalls
Do you have a monitor verifying recalls on equipment are being addressed in a timely
manner? Recalls deal with safety related items and presents a liability to any company.
Minimizing truck down time for recalls can be accomplished through proper scheduling
with your dealer. Less down time increases efficiency and profit.
Fleet Utilization
How long has it been since someone looked at fleet route efficiency and scheduling? If
new customers have been added, routes may need to be adjusted for maximum efficiency.
How much more profit could be generated if you were able to eliminate just $50 in fuel
costs per route, per day, per truck?
Again, can excessive idling be reduced or eliminated? Can overtime be reduced or
eliminated by reevaluating truck usage?
Are fleet vehicles being monitored for excessive repairs identifying them and liabilities?
Are fleet vehicles being traded or returned to lease company when most advantageous for
your company?
Do you have a replacement standard for returning or selling fleet vehicles or equipment?
Do you use a mileage maximum or time maximum for fleet vehicle replacement?
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By Billy Teague, 903-241-4468 April 2015

6. Analyzing how you use your fleet could be very beneficial from an excessive repair and
fuel consumption standpoint.
Lease and Rental Equipment
If your company leases or rents equipment, who is in charge of verifying that it is turned
in promptly? Rental equipment if not tracked properly will add cost to overhead through
excessive payments for days kept after it is no longer needed.
Do you have an inspection process in place to verify rental or lease equipment has been
properly serviced by the leasing or rental company and checked for malfunctions before
being placed in the field? Are you running into situations of down time due to improperly
serviced or malfunctioning lease or rental equipment? If so, adding a simple inspection
process can reduce labor costs due to repairs to this equipment not to mention the
frustration created for your customers.
Do you have a servicing schedule for all field equipment with forms identifying
equipment and when it was serviced? A monitor can then track and verify that no
equipment has been missed? This simple process will lower your repair costs through
fewer malfunctions {broken belts, clogged filters, equipment auto shut off due to low
fluids, leaks, etc.}.
How long has it been since you analyzed fleet size for efficiency and productivity? Does
your fleet need to be reduced or increased? Do you have too much equipment at one
location and not enough at another? Can you take from one location and fill the needs of
another without new leases or purchases? It could be beneficial to take another look at
your fleet size and company wide distribution of assets.
Are records for repairs being stored at each location for reference of repeat repair
warranty? Could you be paying for repeat repairs? Do your trucks move from one
location to another and if so, does anyone verify repair histories for trucks that have come
from another location or district?
Contract or Agreement Re-Negotiation
How long has it been since someone verified that vendors are still charging competitive
prices for the services or parts they offer? It could beneficial for someone to re-check the
vendor pricing in your area and market and re-negotiate contracts according to your
findings. Human nature, especially when time is involved conditions us to believe we are
receiving the best pricing so we rarely re-check an older vendor. You could be leaving
profits on the table.
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By Billy Teague, 903-241-4468 April 2015

7. Wrecker Bills
Thinking outside the box, would it be cost effective to own your own wrecker in order to
eliminate these bills? Many variables would come into play such as fleet size, number of
wrecker calls in a week, month and year. Also, if you have multiple locations would each
location require a wrecker or only your busiest or most remote locations? Having your
own wrecker service would diminish waits times lower labor costs for down drivers.
It has been my experience that the more a company can do in-house the more profitable it
can be.
Conclusion
The length of this presentation was necessary to share with you many of the areas I feel I
could help your company. Of course a more personal inspection of locations and
processes might present more ideas of how to lower costs. Theses ideas relate to all types
of equipment whether tractor trailers and trucks, small trucks and all types of field
equipment. If it needs to be serviced these ideas and suggestions apply.
Thank you.
Billy Teague
903-241-4668
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By Billy Teague, 903-241-4468 April 2015