Transcript Part 2 Fleet Metrics

General Services
Administration
“What gets measured,
gets done.”
– Anonymous
Because performance measures can:
 Help
you make a case for more (or fewer)
resources
 Identify areas where you need to improve
 Emphasize your strengths (prove you are doing a
good job)
 Help you track future performance improvement
or decline
 Lay 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.
 Cost
 Quality
of Service
 Timeliness of Service
 Customer Satisfaction
 Conformance with Best Practices
 Compliance with Legal Requirements
 Contractor or worker performance
 Safety
 Accidents
•
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
5000
4800
4600
4400
4200
4000
3800
3600
2005
2006
2007
2008
2009
2010
2011




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
Utilization
•Establish Standard for each class of equipment
•Don’t Forget about your off road equipment
Class
Minivan,
Passenger
# of
Units
Actual
Total
Monthly
Mileage Avg Annual Annual
Miles / Monthly
Hours Miles / Hours Use Target Hours Use Target
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
Pickup, MD,
4X4
38
295,433.00
7,774.55
3,887.28
647.88
323.94
19
128,820.00
6,780.00
3,390.00
565.00
282.50
Bus
12
432,987.00 36,082.25
Forklift, Diesel
24
21,971.00
915.46
18,041.13 3,006.85
457.73
76.29
1503.43
38.14




Average age of your fleet by Class and Type
Average total miles
Average Miles per Gallon
Average Cost per Mile (or Hour)
Class Code
SEDAN
VAN, CARGO
PICKUP, COMPACT, EXT CAB
4X2
SPORT UTILITY, MD, 4X2, 4X4
TRUCK, 6X4
SWEEPER, ROAD
MOTOR GRADER
Class
Total
15.00
78.00
23.00
19.00
5.00
4.00
2.00
Avg
Avg Age Odometer MPG
7
33211
28.40
6
25758
16.90
5
3
12
9
22
20764
23400
102347
43678
6543
15.30
13.20
8.90
10.30
5.50
CPM
0.13
0.16
0.19
0.42
1.34
0.97
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
•Not all Agencies use depreciation
•Use to develop CPM for all classes
Total Miles Driven
5,654,765
Total Maintenance Costs
$347,320
Maintenance CPM
$0.06
Total Fuel Costs
$567,500.00
Fuel CPM
$0.10
Total M&F Costs
Total Operating Cost Per
Mile
$914,820.06
$0.16
Average Purchase Price
Estimated Residual
Value
$19476
Depreciation
Estimated replacement
cycle
$16076
Depreciation Per month
Estimated Monthly
Mileage
$223.28
Capitol Cost Per Mile
Total Fixed Cost Per Mile =
Total Operating Cost Per Mile =
Total Cost Per Mile =
$0.22
$0.16
$0.38
$3400
6
1025
$0.22
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?
D
o
w
n
t
i
m
e
Now how do you think you are doing?
10.0%
D
o
w
n
t
i
m
e
8.0%
6.0%
4.0%
2.0%
0.0%
2005
2006
2007
2008
2009
D
o
w
n
t
i
m
e
Industry Norm
D
o
w
n
t
i
m
e
Best in Class
1.
2.
3.
4.
Benchmark against yourself (year by year)
Benchmark against peers
Benchmark against industry standards
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.
Identify your
area(s) to
Measure
Improve or
Reengineer
Define the
Performance
Measure
Process
Evaluate
Processes &
practices
Collect the
Data
Measure &
Evaluate
performance







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 Consulting
[email protected]
262-215-5566 (cell)
Gary Hatfield
Director, Public Sector Fleet Consulting
[email protected]
941-685-6907 (cell)