fleet metrics presenters adlore chaudier ph.d., mercury associates gary hatfield, mercury associates...
TRANSCRIPT
General Services Administration
“What gets measured, gets done.”
– Anonymous
Because performance measures can:Help you make a case for more (or fewer)
resourcesIdentify areas where you need to improveEmphasize your strengths (prove you are doing a
good job)Help you track future performance improvement
or declineLay the foundation for FAST and other reports
Is accepted as meaningful Tells how well goals and objectives are being met Is simple, understandable, logical, and repeatable Shows a trend Is clearly defined Allows for simple and consistent data collection Is timely Drives appropriate action
Management above the fleet management organization often does not understand the science and complexity of fleet management.
An important Fleet Manager’s responsibility is to establish and communicate key fleet performance measures, their meaning, and significance.
Communicate performance to:• Leadership• Customers• Fleet Employees
How many vehicles do we have? Types? Do we have too many vehicles? How do we
know? What's our maintenance cost? By type? Do all our vehicles receive PM? Are we competitive with local repair shops? What is our fleet MPG? By vehicle type? How many accidents do we have? How are the numbers trending?
• A metric is a quantifiable and repeatable standard of measurement;
• A performance metrics program means that you have a process for developing objective sets of data to measure how your fleet is doing relative to goals;
• Use the metrics to develop benchmarks, a standard by which you can measure progress (or lack thereof) against past performance
• If you don’t know where you’ve been and where you’re going, you won’t know when you’ve gotten there.
CostQuality of ServiceTimeliness of ServiceCustomer SatisfactionConformance with Best PracticesCompliance with Legal RequirementsContractor or worker performanceSafetyAccidents
• Basic Fleet• Inventory • Utilization• CPM / CPH (Cost per Mile or Hour)
• Maintenance Shop• PM Compliance• Productivity• Scheduled versus Unscheduled• Parts • Fleet Availability
• Fuel• MPG• Number of transactions• Alternative Fuel Use
Great data driven metric Right-sizing metric Establishes a standard justification for assignment Objective
Quantify as: Miles driven Hours operated or in use Number of trips
Class# of
Units
Total Mileage Hours
Avg Annual Miles / Hours
Annual Use Target
Actual Monthly Miles / Hours
Monthly Use Target
Minivan, Passenger 56 688,843.00 12,300.77 6,150.38 1,025.06 512.53
Sedan, HYB 23 342,178.00 14,877.30 7,438.65 1,239.78 619.89
Pickup, LD, 4X4 38 295,433.00 7,774.55 3,887.28 647.88 323.94Pickup, MD, 4X4 19 128,820.00 6,780.00 3,390.00 565.00 282.50
Bus 12 432,987.00 36,082.25 18,041.13 3,006.85 1503.43
Forklift, Diesel 24 21,971.00 915.46 457.73 76.29 38.14
•Establish Standard for each class of equipment•Don’t Forget about your off road equipment
UtilizationUtilization
Average age of your fleet by Class and Type Average total miles Average Miles per Gallon Average Cost per Mile (or Hour)
Class CodeClass Total Avg Age
Avg Odometer MPG CPM
SEDAN 15.00 7 33211 28.40 0.13
VAN, CARGO 78.00 6 25758 16.90 0.16PICKUP, COMPACT, EXT CAB 4X2 23.00 5 20764 15.30 0.19
SPORT UTILITY, MD, 4X2, 4X4 19.00 3 23400 13.20 0.42
TRUCK, 6X4 5.00 12 102347 8.90 1.34
SWEEPER, ROAD 4.00 9 43678 10.30 0.97
MOTOR GRADER 2.00 22 6543 5.50 1.45
• Cost Per Mile / Hour – (CPM, or CPH) should include:
Ownership (Fixed) Costs•Depreciation•Indirect (Admin – Overhead)
Operating (Variable) Costs•Maintenance & Repair Costs•Fuel
Total Miles Driven 5,654,765 Average Purchase Price $19476
Total Maintenance Costs $347,320Estimated Residual Value $3400
Maintenance CPM $0.06 Depreciation $16076
Total Fuel Costs $567,500.00Estimated replacement cycle 6
Fuel CPM $0.10 Depreciation Per month $223.28
Total M&F Costs $914,820.06Estimated Monthly Mileage 1025
Total Operating Cost Per Mile $0.16 Capitol Cost Per Mile $0.22
•Not all Agencies use depreciation•Use to develop CPM for all classes
Total Fixed Cost Per Mile = $0.22Total Operating Cost Per Mile = $0.16Total Cost Per Mile = $0.38
Measure Target
Fleet availability 95%
Turnaround time 70-80% in 24 hours
Rework rate Less than 2%
Road call rate 2%
PM Compliance 95%
Scheduled work 55-65%
Billable hours 1,500 hours
Technician training 40 hours per year
Customer satisfaction 90-95% good or better surveys
•Fleet accident rate – accidents per million miles•Average repair costs for accidents•Money recovered from programs•Lost time due to accidents
Benchmarks are trends or comparisons expressed as metrics;
Your current metrics are most valuable when they are compared to another metric or benchmark (provide a historical context);
By capturing and benchmarking metrics, a fleet manager can demonstrate improved performance;
Transform your metrics into trend lines.
How are you doing?
Now how do you think you are doing?
Industry Norm
Best in Class
1. Benchmark against yourself (year by year)2. Benchmark against peers3. Benchmark against industry standards4. Benchmark against “best in class”
• Use Internal vs. External comparisons• Other Agencies• Contractors
• Share the data• Customers• Leadership• Agencies (DOE, GSA)
1. Develop a plan that describes how you will gather necessary information and calculate the measure.
2. Establish a suggested performance level for each measure.
3. Assess performance against the established performance level.
4. Based on performance levels, as required, take corrective actions to work toward achieving established goals.
Metric Why How When Who Target
Develop a detailed description of each factor when building your plan for implementing your performance metric program.
Establish goals based on the data Improve process, set goals, measure at
determined intervals, and adjust goals if necessary
Don’t be afraid of bad data! Get customers involved in the process Establish exception report◦ High & low cost per mile◦ High & low utilization◦ PM compliance◦ Fuel MPG◦ Maintenance costs
Metrics can modify behavior Never let it become personal
“There is no guarantee of reaching a goal at a certain time, but there is a guarantee of never attaining goals that are never set.”
David McNally in Even Eagles Need a Push
MERCURY ASSOCIATES, INC.“Specializing in the science of fleet management.”
For more information, contact:
Adlore Chaudier Ph.D.Director, Federal Fleet [email protected]
262-215-5566 (cell)
Gary HatfieldDirector, Public Sector Fleet Consulting
[email protected] 941-685-6907 (cell)