6 minute read
Fleet consolidation
Craig Croner, CPFP
Administrative Services Manager City of Boise, Idaho
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entralizing fleet management activities from a previously decentralized business model can be a daunting task. This process inevitably results in a general reduction of operational control and will most likely affect change management within departments. Pushback will likely ensue in several areas such as procurement, preventive maintenance scheduling and outsourced vehicle repairs. Since most departments involved with the centralization process will have competing interests, it is vital that the fleet centralization project be conducted with executive management support in conjunction with an open, transparent communication strategy.
In 2007, the City of Boise performed a fleet management study that resulted in a directive to centralize and optimize all fleet operations. The study was performed by City staff in coordination with Mercury and Associates. For purposes of this project “optimize” meant achieving a balance between the best services to fleet users at the lowest possible overall cost. A Fleet Strategic Plan was created that identified the goals and made recommendations on how to best achieve them. After further review of the goals and the extent of the consolidation project, it was decided that Step 1 would be to recruit and hire a dedicated Fleet Manager.
Fleet activities in Boise at that time were substantially decentralized. Departments were responsible for developing their own asset management strategy including deciding when to replace vehicles. In fact, there were no City policies that set standards and criteria for replacing vehicles. As a result, the overall fleet utilization was low, fleet asset count was high, and Fleet Services was completely decentralized.
In order to promote an open, transparent communication strategy a Gantt chart was created to identify objectives and time frames for goal accomplishment. We successfully used the Gantt chart in briefings for executive management and in communication with departments. This tool provided the right mix of information for both groups and facilitated change management for everyone.
Major goals identified by the Fleet Strategic Plan and tracked on the Gantt chart are shown below:
• Information Technology
Administration and
Implementation – Develop a centralized Fleet budget – Create a Fleet Advisory Board – Update business plans to reflect the reorganization of Fleet
Services
• Policies and Regulations – Analyze peer city policies and regulations – Create draft policies and regulations • Fleet Replacement Planning – Develop Fleet replacement criteria
– Develop Fleet replacement policy – Conduct a right-sizing analysis – Develop long-range replacement plan – Analyze alternative financing approaches • Cost Control, Cost Allocation and
Charge-back Rates – Develop the Fleet budget further to include capital costs, maintenance and repair costs, fuel costs and the appropriate allocation of indirect and overhead costs
– Develop capital cost chargeback rates
– Develop operating costs chargeback rates
• Fleet Management Information
System (FMIS) – Identify budget for FMIS acquisition – Develop FMIS specification criteria
– Obtain Council approval to fund the FMIS
– Place FMIS specifications out to bid
– Implement FMIS • Maintenance Operations – Consolidate supervision and management of remotely located technicians
– Create an office for the new
Fleet Services Manager – Develop and implement an outsourcing policy that has the
“best Bang for the Buck” – Develop a facility space needs assessment
– Develop a technician training program – Create a comprehensive maintenance procedure manual reflecting centralized operation – Create basic Service Level
Agreements for each department • Fuel and Supply Operations – Review the City’s supply and fuel procurement policies, procedures and practices.
Modify as needed – Analyze Fleet-related transaction and establish a formal contract for parts and services
– Determine if responsibility for City’s fuel transactions should be centralized under Fleet Services after software implementation
The Gantt chart was built around the goals identified in the Fleet Strategic Plan. As of May 2008, the chart looked like that shown in Figure 1.
Items in green are those which had been completed; items in yellow are those next in line to start on or already underway; and items in red show the expected delivery date. Items completed by May 2008 include:
• Developed a centralized Fleet budget • Created a Fleet Advisory Board • Analyzed peer city policies and regulations • Identified budget for FMIS acquisition • Developed FMIS specification criteria
• Obtained Council approval to fund the FMIS
• Placed FMIS specifications out to bid
• Analyzed alternative financing approaches and long-range replacement plans • Consolidated supervision and management of remotely located technicians
• Created an office for the new Fleet
Services Manager • Developed a facility space needs assessment
• Developed a technician training program • Reviewed and analyzed the current fuel procurement policies, procedures and practices. Modify as needed
Figure 1: Boise City Fleet Strategic Plan Gantt Chart as of May 2008
By November 2008, the chart reflected the completion of several additional tasks and established the historical timeline, as shown in Figure 2.
New items achieved include:
• Updated business plans to reflect reorganization of Fleet Services
• Created draft policies and regulations
• Developed official Fleet replacement criteria
• Developed Fleet replacement policy • Conducted a right-sizing analysis • Developed a long-range replacement plan • Analyzed alternative financing approaches • Developed the Fleet budget further to include capital costs, maintenance and repair costs, fuel costs and the appropriate allocation of indirect and overhead costs
• Developed capital cost chargeback rates
• Developed operating costs chargeback rates • Implement FMIS • Developed and implemented an outsourcing policy that has the
“best Bang for the Buck”
• Created a comprehensive maintenance procedure manual reflecting centralized operation
• Created basic Service Level
Agreements for each department
• Analyzed fleet-related transactions and establish formal contracts for
Parts & Services
• Determined if responsibility for
City’s fuel transactions should be
Figure 2: Boise City Fleet Strategic Plan Gantt Chart as of November 2008
centralized under Fleet Services after software implementation
Two additional tasks were identified and added to the chart during this period:
• Developed Motor Pool chargeback rates
• Implement Motor Pool software
As of October 2009, all tasks identified by green in the Gantt chart had been completed. However, the motor pool software was procured in FY 2010 and the implementation was completed in January 2011.
Including the two additions regarding the Motor Pool, the Gantt chart looked like that shown in Figure 3. The Gantt chart held all the objectives and recommendations in one document. By using the Gantt chart during briefings and updates, we were able to clearly show the individual tasks and our progress toward achieving them. This helped gain executive management support for the fleet centralization project. As goals were attained, the changes in the chart gave a clear, concise record to see and gauge progress. Using the Gantt chart during Fleet Advisory Team meetings with department representatives provided the open, transparent communication needed to gain their support.
Throughout the process of implementing Fleet Centralization, we followed the timelines established by the Fleet Strategic Plan. We used a Gantt chart to track and monitor our progress as a tool to promote an open, transparent communication strategy. We also used this tool when reporting progress to executive management. Using a Gantt chart proved to be essential to the success of this project.
Craig Croner has worked in the fleet industry for 28 years and has managed private and public fleets since 1992. He has been the Fleet Manager for the City of Boise since 2008 and helped implement a rapid centralization to the formerly decentralized city fleet. The City of Boise was recognized for the last four years as one of the “100 Best Fleets” in the nation. Craig can be reached at (208) 384-3747 or ccroner@cityofboise.org.
