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Fleet Benchmarking for Advanced Decision Making

Aaron Alvarado

Tacoma Public Utilities (TPU)

Fleet Manager

TPU Stats• Fleet Size: 1100

• Employees: 30

• Number of Maintenance Facilities: 2

• Budget: $24 M (Biennium)

• Vehicle Replacement: 14.5M

• FMIS: SAP

• Fuel Budget: 4.9 M

• In house parts operation: 165K inventory O/H

• Wireless Matrix

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Background• 2013-Present- Tacoma Public Utilities, Fleet Manager• 2010-2013 Fleet Manager City of Tempe, AZ • 2009-10 U.S. Army Deployed to OIF as Battalion Maintenance Officer

(BMO) 541st CSSB, Ft. Riley KS• 2005-2010 Shop Supervisor, City of Glendale, AZ Fleet size 1450• 1996-2005 Heavy Mobile Equip Repairer Supervisor, Dept. of Army,

2500+ pieces of equipment for deployment to OIF & OEF• 1989-96 USMC, Combat Engineer (Desert Shield/Storm, Japan, Korea)• AZ Army National Guard, Maintenance Warrant Officer (Retired, CW3,

2010)

EDUCATION• MBA Public Admin• B/S Management• 915 E Warrant Off. Adv. Course• A/S Auto Diesel Technology

Fleet Benchmarking for Advanced Decision Making

• Fleet Benchmarking does not have to be complex, seek out industry standard or best practices and start with a goal in mind.

• Where your at today

• Where you want to be

• By when?

• Benchmarking is the process of comparing one's business processes and performance metrics to industry bests or best practices from other industries. Utilize industry standard to measure from.

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Fleet Benchmarking for Advanced Decision Making

• Measure items in your fleet that have some relevance to the executive management team

• Have common procedures to methodically organize your data, template and define data criteria

• Present often as possible to executive team to drive your point home, i.e. State of the Fleet address etc..

What’s worth Benchmarking?

Possibilities include:

productivity measures

CPM/CPG/CPH

idle time

vehicle lifecycle cost

downtime

turn around time

PM compliance

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What’s worth Benchmarking?

•Each fleet operation is unique, recommendation: Define the key objectives and benchmark what is most important to your organization.

Microsoft Excel 97-2003 Workshee

Benchmarking process

•What are the results from benchmarking? Better understanding of your operations true performance

•Define each aspect of what you are going to measure and ensure you make it clear as to what goes into your study.

•Identify similar operations to gather data from, or benchmark similar equipment in your fleet

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Terminal Learning Objective(TLO)

• Task-Overall learning objective is to precisely benchmark key indicators of your operation that are observable and measurable and report out.

• Condition- In a shop setting utilizing FMIS, Telematics, or any other means of gathering data.

• Standard-Industry benchmark standard, such as labor rates, vehicle equivalency etc.

Benchmarking Process

Identify what to

Benchmark

Form Benchmark

Team

Identify specifics of benchmark data (KPI)

Collect and Analyze

Data

Implement Action Plan

Monitor progress

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TLO Flowchart

Strategically choose what measurement

will benefit your organization

Identify KPI’s Pull raw data and

format for fleet use only!

Refine your findings into a graphical representation

Present your information to

Executive Staff as often as they allow

Repeat

Trend Analysis in BenchmarkingDisplaying trend analysis can reinforce your position and pin point poor performance in certain areas. One can act on these indicators quickly to make immediate changes.

Pulling the data over a period of time can show high level maintenance trends excessive downtime etc. that are costing your organization money

In addition, these trends can pinpoint where you spend excessive manpower on repairing a certain type of equipment

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Trending Data Analysis

Vehicle Benchmark analysis

Determine what will go into your analysis: Vehicle typeYear Annual milesPurchase priceFuel gallons/costParts costDepreciation Interest Inflation rateInsurance cost

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Breakdown 2000> vehicle cost summary

Targeted vehicles indicate higher than usual O&M cost

FY 2010/11 Maintenance Cost Trending

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The Raw Data

Sorting the Data

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

0333 Total Cost Per Year

0333 Total  Cost Per Year

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Trending

Trending (cont.)

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Dollar Amount

Year

Lifecycle Replacement Chart1997 Chevy Astro Van

Target disposal timeline

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Graphical Representation

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Dollar A

mou

nt

Year

Lifecycle Replacement Chart1997 Chevy Astro Van

Target disposal timeline

Baseline Summary

Utilize Graphical representation for briefing

Make your case to executive management Return and refocus on other areas to be measured

Analysis of the Raw Data

Isolated vehicles that exhibit high maintenance trends by classification

Extracted and formatted into a template that can be used over and over (consistency is the key)

Identified high concern areas

Benchmarked and compared with like vehicles in your fleet or other municipalities Pinpointed higher than normal operating cost

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Final Decision Based on analysis

• Data represents a higher than normal operating cost over period of time and for certain classification of vehicles, analysis indicates an approximate target date for disposal

• You now can see the representation and determine if retention or replacement is warranted

• Typically decisions that are made either way benefit the fleet manager as long as its documented

Course of Action (COA) on benchmark results

COA #1

• Vehicle age and repairs cost exceeds value of vehicle, funding shifts to capital side of the budget

• Targeted for replacement in next cycle

COA #2

• Vehicle Cost High, No funding for new acquisition• Retention of vehicle shifts funding to the operations

side of the budget, state case for additional FTE

COA #3• Document who made decisions to approve or deny

and keep records for future discussions.

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Benchmarking Idle Time by date range example

What actions increase/decrease idle time?

Lower fuel cost by

reducing Idle time based on

data analysis

Type of operation

Pre/Post Trip Insp.

Idle time policy

Driver Accountability

Repair Idle time

Overall Objective

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Gather information and begin the sorting process

Total Idle Total Cost Max Idle from Max Idle to Max Idle Zone Latitude

1:44:29 9.14 10/21/2011 8:39 10/21/2011 8:53 0:13:53 34‐S Map 3 33.34966

2:25:12 12.71 10/5/2011 7:33 10/5/2011 7:58 0:24:53 Home Yard 33.43123

6:43:23 35.3 10/3/2011 12:30 10/3/2011 13:06 0:36:06 19‐N Map  33.4025

30:33:51 160.46 10/18/2011 11:42 10/18/2011 12:07 0:24:34 32‐N Map  33.37125

26:42:13 140.19 10/13/2011 12:45 10/13/2011 13:20 0:34:20 13‐N Map  33.42162

11:57:50 62.81 10/7/2011 12:38 10/7/2011 13:07 0:29:03 17‐S Map 1 33.39282

0:31:15 2.73 10/11/2011 13:08 10/11/2011 13:14 0:05:33 26‐S Map 2 33.38129

3:38:31 19.12 10/8/2011 9:16 10/8/2011 9:42 0:26:07 Tacoma 33.43244

4:37:11 24.25 10/7/2011 14:31 10/7/2011 15:04 0:33:04 12‐N Map  33.41589

41:14:19 216.5 10/17/2011 7:42 10/17/2011 8:58 1:16:35 Tacoma 33.4324

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Practical Exercise Sort & Graph Data

Enabling Learning Objective(ELO #1)

Using idle information from Zonar, export, sort data, make table and graph

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Remove data not relevant to you’re your briefing

Define Header for information you want to display graphically

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Add table to data sheet to sort quickly

Once Table is generated, sort any tab by using the dropdown in any category

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Sorted by largest to smallest “Total Cost”

Graphical Representation(spreadsheet example)

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Course of Action (COA) on benchmarking data

COA #1

•Data indicates vehicle 890 has most idle time over last quarter of data

•Discuss at individual or small group level to correct

COA #2

•Re-evaluate routing, type of equipment or maintenance factors to determine if less idle time can be obtained

COA #3

•Make constructive recommendation to Ops manager to lower idle rate & decrease fuel consumption

Graphing Data Practical Exercise

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Enabling Learning Objective(ELO #2)

Task: Using database information in excel format reconstruct into a graphical representation for analysis and presentations to executive staff.

Practical Exercise

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Total Cost

Total Cost

Double click in spreadsheet to open Excel Document

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Highlight your data you intend to graph

Once data is highlighted, push “F11” to generate the graph.Clean up your axis to indicate Year & Legend

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Step 1 Highlight “Year” range for Axis Labels

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Double click in spreadsheet to open Excel Document

Summary

• In this session we have covered the benchmarking process.

• Terminal Learning Objective:

Overall learning objective is to precisely benchmark key indicators of your operation that are observable and measurable and report out.

Further data analysis on benchmarking and trending can be found online at Government Fleet Magazine:

http://www.government-fleet.com/video/list.aspx

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