fleet-management.pdf

LSM107 - Successful Fleet and Transport Management

Introduction To Fleet
Management

Fleet Management comprises the target-oriented, optimal
planning, supervision and control of the fleet operations
based on the available resources, considering internal and
external influencing factors. A special focus is on the
integration of organizational processes with modern
information systems.
Definition

• Object tracking (vehicle
tracking)
• Health and safety tracking
• Fuel and speed management
• Sales order transmission
• Route planning
• Driver Management
• Vehicle diagnostics.
Fields Of Application

Fleet Management Process
Begin Here
Survey
Monitor
Analysis
Implement
Begin at “Survey” to step
through and see the details on
our continuous process
Proposal
7

Go the extra mile &
Always
It helps to create the devoted customer
that wants to come back. 8

Fleet Manager Profile & Best Traits
1 - Ability to Multi-Task.
The best fleet managers are “jugglers.”
• They need to balance everything to make the fleet program work efficiently.
Drivers want one thing, suppliers suggest something else, management has a
variety of focus areas (fuel economy, safety, depreciation, image, etc.), and
everyone is an expert about which manufacturer makes the best product.
• The great fleet managers are those who are able to juggle these demands. As
one fleet manager said, if you are not capable of juggling 18 chainsaws at once,
your time as a fleet manager will be limited.
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2 - Good Time Management Skills.
• A great fleet manager must be a master of time management.
• A fleet manager’s customers range from upper management to drivers in the
field. You have to manage your time to satisfy corporate and driver needs, while
completing your own work to keep the fleet running smoothly.
• A great fleet manager has the discipline in day-to-day tasks to focus on the
important without being consumed by the urgent.
10

3 - Goal-Oriented Fleet Management.
• Great fleet managers are goal setters. They are goal-oriented in all aspects of
fleet management and employ metrics to continually benchmark productivity,
vehicle downtime, fleet utilization, and effective management of both fixed and
operating costs.
• Great fleet managers are committed to achieving specific results and govern their
operations with these results in mind.
• It is this results-orientation that pushes a great fleet manager to be creative in
addressing daunting challenges.
11

4- Adaptable to Change.
• The fleet manager role has changed over the past 20 years as fleet department
staffs disappeared, outsourcing became more prevalent, and procurement groups
began playing a greater role in fleet sourcing.
• While good fleet managers adapt to change, great fleet managers thrive because
of it and are willing to recommend change — even if it impacts them negatively.
Fleet is ever-changing and great fleet managers adapt to the change instead of
fighting it.
12

5 - Lifelong Learners.
• Great fleet managers never stop learning. They regularly attend fleet
management seminars and read industry publications to keep pace with best
practices.
• They are active members in industry associations. Plus, they are motivated to
attain professional certifications. They not only focus on professionally
developing themselves, but also their direct reports, customers, senior
management, and team members in fleet management and industry best
practices.
• A continual learner has a constant thirst for knowledge and does not hesitate to
share new-found information with colleagues.
13

What is Preventive Maintenance?
Ensuring vehicle
safety &
cleanliness
Determining the
root cause of
issues
Scheduling
repairs to
fix/identify issue
before it breaks
Quality
assurance
Proper
documentation
14

Operations & Maintenance Relationship
Proper culture = strong communication & trust
• Operations & maintenance are in it together
• Include maintenance in division-wide monthly
meetings
• Include mechanics in new driver training
• Inspections
• Proper equipment use
15

Proper Training
In-House Training
Maintenance Basics
Refreshers
Outside Training
External Vendors
Dealerships
16

Business processes
Сar repairs/Workshop
Executing full package of documents under Work Order (Invoice, Receipt for Work Order, invoice and others)
Drawing up an act of disagreement for adjustment of revenue under Work Order
Monitoring the need to perform any service campaign
Spare parts movement from warehouse to workshop under Work Order and return of unused parts back to
warehouse
Phased repair (request, in progress, repair completed, Work Order closed) and monitoring of repair
Reception of car for repair
Calculation of preliminary cost of repair
Resource planning in the workshop
17

Workflow diagram
Repair of automobiles
Transfer of spare
parts for repair
Calculation of repair
Spare parts order invoice
Receipt of spare
parts to warehouse
Work Order
Invoice
Transfer of spare
parts for repair
Return of spare parts
from repair
Spare parts
order to supplier
Payment by cashier
or bank
Act of disagreement
Register for repair
Reception of car
for repair
18

Objectives of Tire Management
• To achieve higher mileage of new tire and existing tire.
• Give recommendation to the principle, the suitable pattern of tire that can
deliver the lowest cost/km.
• To achieve higher mileage of new tire and existing tire.
• Ensuring correct and safe methods of tire change-outs, tire rotations, tire
pressure and tread depth check and tire wear pattern inspections.
• Implement in all aspect of tire maintenance reporting in line with the tire
maintenance procedure.
• Calculate Cost Per Kilometer
20

The Pros & Cons Of Outsourced vs. In-House
Maintenance
• Outsourced contract maintenance is becoming an increasingly
prevalent method for companies to maintain their assets in numerous
industries, from aviation to IT and manufacturing.
• There are generally three approaches to maintenance management:
• In-house staffing,
• a hybrid of in-house
• outsourcing and complete outsourcing.
• How these may be applied and to what extent is driven by each company and
their own unique needs.
21

22

Basic Workshop
Tools
23

Tool Rules
▪ Purchase quality tools
▪ Keep tools organized
▪ Keep tools clean
▪ Use the right tool for the job.
Tech Tip
The time spent maintaining your tools and toolbox is time well spent. Well
organized tools will save time on each job and help you get more work
done. Unorganized or poorly maintained tools will hurt your on –the-job
performance.,
24

Increasing Workshop Productivity
• Cost-control strategies include such things as
• increasing output,
• improving methods,
• reducing overhead,
• minimizing waste,
• regulating or leveling work flow,
• upgrading to modernize equipment, and
• minimizing tardiness, absenteeism, and turnover.
25

Elements of a Fleet Safety Program
• Why a program?
• An effective loss prevention program within any
fleet, regardless of coverage, involves seven basic
points.
26

Management Support and Direction
• Top management must be committed to a safe operation.
• A fleet safety policy should:
• define the purpose and objective of the program,
• scope of program activities,
• define responsibilities and establish accountability,
and
• evaluate program effectiveness.
27

Driver Selection
• The safety and/or fleet administrator should provide
positive guidelines for the selection of drivers:
• MVR Check
• Job descriptions with qualifications
• DOT requirements
28

Medical Program
• A medical program in a fleet should include the
following major areas: medical evaluation, periodic
health examinations and first aid/emergency
procedures
• DOT safety regulations " Qualifications of Drivers".
29

Employee Training and Supervision
• How comprehensive and formal the training activities are
depends on a number of factors including:
• Size of fleet
• Number of locations
• Amount of turnover
• Experience level of new hires
• Fleet training program should include:
• Orientation
• Job instruction
• Refresher training
• Corrective training
• Auditing of results
30

Vehicle Replacement and Life Cycle
• In institutional fleets, vehicles are replaced when they reach a
certain age, mileage, or become unserviceable. Presently, the
province has set its replacement threshold and lifecycle for the
replacement of vehicles at 300,000 kilometres or 14 years of
service.
• As a best practice, many government fleets are now taking the
position that the smallest, lowest cost vehicle, that meets work
requirements, will be selected and that fuel efficient vehicles that
minimize the environmental footprint will be favoured where
possible
31

Right-Sizing and New Vehicle Assessments
• Is this a new or replacement vehicle?
• What is the unit number, year, make, model, odometer, etc. of the existing unit?
• If a replacement, does current vehicle meet your needs?
• Reason for replacement – due for replacement, accident/write-off, no longer meets functional
requirements, unsafe or economically prohibitive to maintain
• Location of service
• Kilometres driven annually
• Per cent of urban driving (10 per cent, 20 per cent, 30 per cent, etc.)
• Per cent of highway driving (10 per cent, 20 per cent, 30 percent, etc.)
• Per cent of secondary road driving (10 per cent 20 per cent, 30 per cent, etc.)
• Time used off road or on very rough roads – (10 per cent, 20 per cent, 30 per cent, etc.)
• Number of people carried including driver (1-2, 3-4, 5-7, 8+)
• How often do you carry more than two passengers, including the driver (daily, weekly, monthly)?
32

Four Components of a Comprehensive Transport Solution
33
• Facility Locations
• Customer Assignments
• Mode Selection
• Network Validation
• Customer Service
• Operational Metrics
• Optimal Transportation
Routes
• Inbound shipment
consolidation
• Outbound shipment
consolidation
• Safety Stock
• Service vs. Inventory
• Replenishment Frequency

Transportation Design Questions
▪ How should I consolidate shipments to build multi-stop routes?
▪ Should we ship direct from the vendor or go through the DC?
▪ How much savings will I see if I optimize my baseline existing routes?
▪ Are there backhaul opportunities?
▪ How do my routes change with low, average, and high volume
shipment levels throughout the year?
▪ Are there network synergies? Opportunities to consolidate
transportation systems among business units?
▪ How do route costs compare to LTL and parcel costs?
▪ Should we consider a 3PL in addition to our private fleet?
▪ How do I balance my shipments across a weekly schedule?
▪ What is my allocated route cost by shipment?
▪ How do I balance my facility costs versus transportation costs?
▪ How do I balance my drivers workloads?
34

Business Plan
• A resume for your operation
• Helps market your operation to the decision makers.
• Helps you evaluate how your operation is working.
• Facilitates strategic thinking and goal setting
• Provides an unbiased perspective on how well your operation is
meeting its goals.
35

Business Plan (cont)
• Vision and mission statement
• What services fleet provides
• Summarize how you do business
• Key performance measures and trends toward meeting targets
• Provide a strengths, weaknesses, opportunities and threats (SWOT)
analysis to assess where fleet is and where it’s headed.
36

Service Level Agreements
• Identifies parties involved
• Set forth the purpose of a service agreement
• State the agreement between parties
• Identify administrator and program activators
• Term of the agreement and how to renew
37

Service Level Agreements
• Failure to perform conditions
• Termination clause
• Hours of service
• Define fees
• List locations of shops
• Outline areas of responsibility for provider, customer and safety.
38

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…
39

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
40

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 isYourGreatest Weapon
• Don’tUnderestimatethePowerofPreventativeMaintenance
• Breakdowns are your worst enemy
• Vehicle Downtime costs on average $100 per hour
• TrimCostsbyMakingSmartChanges
• Trim Fuel Expenses
• Manage Parts Inventory
• RecoverThoseWarranties
• Know how ShopTechnicians are Spending theirTime
41

Five Best Practices for Fleet Managers
• OpentheLinesofCommunication
• Develop and Implement a Company Policy
• Make Internal Communication a Habit
• NeverStopImproving
• Measure Performance – FineTune
• Automate Internal Processes
• Look for Areas that Need Improvement
• Keep Up with Industry Standards
42

Ways to Reduce Fleet Costs
 Smaller fleet
 Reduce Vehicle Miles Traveled (VMT)
 Get more miles per gallon
 Lower fuel cost
 Reduce vehicle lifecycle cost
◦ Lower acquisition cost
◦ Higher resale
 Lower maintenance cost
◦ Reduce labor cost
◦ Reduce parts cost
◦ Reduce commercial repair cost
 Lower overhead costs (management)
43

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