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GOVERNMENT FLEET
JANUARY/FEBRUARY 2011 • A BOBIT PUBLICATION • VOLUME 9 - ISSUE 1
WWW.GFLEET.COM
FEATURES 16 ELEMENTS OF A COMPREHENSIVE FUEL MANAGEMENT PROGRAM A well-designed fuel management program controls costs, improves driver productivity, meets regulatory requirements and organizational policy goals, and provides for the collection of essential data and production of management information.
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20 INCENTIVIZING DRIVERS TO CONSERVE FUEL Fuel is the No. 1 fleet operating expense. Polk County, Fla., achieved favorable results by addressing one of the main, yet overlooked sources of rising fuel consumption — the driver. 24 HOW TO CALCULATE TECHNICIAN-TO-VEHICLE RATIOS To properly maintain and manage a public sector fleet operation, determining the necessary ratio of technicians to vehicles is key to keeping vehicles on the road and operations running smoothly.
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28 PROS AND CONS OF ‘RIGHT-SIZING’ VEHICLES TO INCREASE FUEL ECONOMY Reducing vehicle fuel consumption and increasing fuel economy is one of the top challenges for fleet. However, some veteran fleet managers caution to research before buying. 30 SEATTLE NAMED NO. 1 GOVERNMENT GREEN FLEET Use of alternative fuels and advanced technology vehicles, as well as fuel reduction strategies and a Green Fleet coordinator, are some reasons the City of Seattle was recognized as the No. 1 Government Green Fleet in North America. 32 STATE OF GEORGIA SAVES MORE THAN $500K BY REDUCING FLEET EXPENSES After moving one-third of its 21,000-vehicle fleet to a statewide contract with Automotive Resources International (ARI), the State of Georgia has seen its administrative, repair, and maintenance costs decrease. 36 TOWN OF CASTLE ROCK FLEET EXCELS IN CUSTOMER SERVICE Through use of its fleet software program, fleet advisory committee, and support of qualified staff members, the Town of Castle Rock, Colo., has maintained a 95-percent customer satisfaction rating. 38 VENTURA USES TELEMATICS & GPS TO IMPROVE FLEET EFFICIENCY After implementing GPS and vehicle diagnostic technology on several fleet vehicles, the California city improved fuel economy by 10 percent, reduced idling time, and improved productivity and routing for customer service.
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E Q U I P M E N T //////////////////////////////////
40 MAINTAINING PAVEMENT & ASPHALT EQUIPMENT Proper maintenance, training, and planned service intervals are necessary to ensure proper care for pavement and asphalt equipment.
Government Fleet is published bi-monthly, with an additional issue in June, by Bobit Business Media, 3520 Challenger Street, Torrance, California 90503-1640. POSTMASTER: Send address changes to Government Fleet, P.O. Box 1068 Skokie, IL 60076-8068. Please allow six to eight weeks for address changes to take effect. Please allow six to eight weeks to receive your first issue. Bobit Business Media reserves the right to refuse nonqualified subscriptions. Please address editorial and advertising correspondence to the executive offices at 3520 Challenger Street, Torrance, California 90503-1640. The contents of this publication may not be reproduced either in whole or in part without the consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission. Periodicals Postage Pending.
Government Fleet
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DEPARTMENTS 4 ON THE WEB 6 MAIL STOP 10 INDUSTRY NEWS ■ NYC Employees Test Car Sharing 48 PUBLIC FORUM ■ Increased Concern Over Staff Burn-Out 44 PRODUCT SHOWCASE ON THE COVER:
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F Fleets are establishiing fuel reduction iincentive programs with drivers, utilizing w GPS and telematics G ttechnologies, and lleveraging lessor pprograms to reduce ffuel costs.
January/February 2011
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GPS Insight Advanced GPS Fleet Tracking
Call 877-377-3036 Do you want to cut unnecessary costs? Could your fleet be more efficient (labor, fuel, productivity)? Do you know if your fleet has unsafe driving habits? Do you want to eliminate the unknowns about your fleet?
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Benefits: » Real-time Tracking
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Start The New Year Of f Right Take Full Control Of Your Fleet! For a free demo, visit www.gpsinsight.com/gov or call 877-377-3036 Nationwide coverage. Regional offices in Phoenix, Chicago, Los Angeles, and Oklahoma City.
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What You're Reading www.government-fleet.com w
THE
5
Government-fleet.com’s Top 5 most popular stories as of October 27, 2010.
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AFDC MAKES CHARGING EASIER FOR EV DRIVERS EV owners now will be able to track down the exact type of station they need and know how long it will take to charge their vehicles.
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HAWAII HYDROGEN INFRASTRUCTURE GETS BOOST The Gas Company (TGC), General Motors, and ten other companies, agencies, and universities have joined the initiative, which aims to integrate hydrogen as an essential building block for Hawaii’s sustainable energy ecosystem.
3
FLD NAMES HARJAMA DIRECTOR OF BUSINESS DEVELOPMENT Harjama previously worked for The Hershey Company from 2007 to 2010, during which time he oversaw an 18-percent increase in total sales in his territory.
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ALLEY TO JOIN KING COUNTY METRO-TRANSIT IN SEATTLE Alley leaves his position of deputy director – Fleet Services Division of the General Services Dept. for the City of San Diego, where he has worked since 1999.
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GSA PURCHASED ONE-FOURTH OF US HYBRID VEHICLES This comes to about 14,584 hybrid vehicles in the past two fiscal years, or about 10 percent of the total vehicles purchased by the federal agency in that period.
THE FLEET CHANNELS Industry Trends
Telematics
Safety
Remarketing
1 WHAT WE’RE W B LO BLOGGING ABOUT MARKET TRENDS By Mike Antich www.government-fleet.com/ Blog/GF-Market-Trends.aspx ANTICH
December 6: You’re Only as Good as Your Staff November 22: Be Part of the Solution, Not Part of the Problem November 15: Maximizing Utilization as a CostContainment Strategy
Fuel
Use the navigator on the government-fleet.com home page to browse the latest articles from the channels. Enter a channel to view in-depth news, articles, tools, calculators and more related to that specific topic. January/February’s Web Channel Highlight: EQUIPMENT Research, compare and view the latest equipment and vehicles for your public sector fleet.
November 8: Redefining Fleet Management in an Era of ZeroGrowth Budgets
FLEET BLOGS: The Voice of the Fleet Community (www.fleetblogs.com )
• Maintaining Loaders and Backhoes • Keeping Grounds Maintenance Equipment in Top Shape • How Do Fleets Dispose of ‘Yellow Metal’? • Bright Ideas: Pinpointing Solutions to Off-Road Equipment Management • Best Practices: Using Telematics to Manage Off-Road Equip
December 21: So You Think Your Job Is Safe
by Anonymous Public Fleet Manager December 18: Use it or Lose it (ROI that is…)
by Robert Donat December 14: The Quest for Alt Fuel Knowledge Makes a Stop at ROUSH CleanTech
by Elisa Durand December 2: Hot for 2011: “Save Me Money!”
by Wayne Smolda
RECEIVE BREAKING NEWS WHEN IT HAPPENS Sign up for Government Fleet’s bi-weekly eNewsletter for timely updates on the latest industry news in public sector fleet management, as well as research and trends, industry events, and current Government Fleet magazine articles and features. Subscribe at www.government-fleet.com. 4
Government Fleet
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October 29: Can Passive GPS Tracking Reduce Fleet Costs?
by Mike Wade Interested in starting your own blog? Go to www.fleetblogs.com for more information.
January/February 2011
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HIGHER QUALITY. At Ford Fleet, we believe higher quality is in the details. When your employees are in our vehicles, you can be confident we’ve left no stone unturned to ensure those vehicles are reliable, durable and sustainable. We’re committed to continuous improvement and dedicate ourselves every day to creating cars and trucks that are greener, safer and smarter. When it comes to quality, hard work and higher standards are all we know. Because our fleet is your fleet. Ford Fleet. Get More.
fleet.ford.com
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MAIL STOP
VP and Group Publisher Sherb Brown (310) 533-2451 • Sherb.Brown@bobit.com Publisher Eric Bearly (310) 533-2579 • Eric.Bearly@bobit.com Editor and Associate Publisher Mike Antich (310) 533-2467 • Mike.Antich@bobit.com Senior Editors Lauren Fletcher (310) 533-2415 • Lauren.Fletcher@bobit.com Grace L. Suizo (310) 533-2414 • Grace.Suizo@bobit.com Assistant Editor Thi Dao (310) 533-2544 • Thi.Dao@bobit.com Field Editors Bob Cavalli, Al Cavalli
Art Director Vince Taroc Editorial Consultant Howard Rauch DISTRICT ADVERTISING MANAGERS Publisher/Sales Manager Eric Bearly (310) 533-2579 • Eric.Bearly@bobit.com
(248) 601-2005 FAX: (248) 601-2004 Robert.Brown@bobit.com Sales & Marketing Coordinator Tracey Tremblay (310) 533-2518 Chairman Edward J. Bobit President & Chief Executive Officer Ty F. Bobit Chief Financial Officer Richard E. Johnson Business and Editorial Office Bobit Business Media 3520 Challenger Street Torrance, CA 90503-1640 FAX: (310) 533-2503 Change Service Requested Return Address Government Fleet PO Box 1068 Skokie, IL 60076-8068
GF01_Letters.indd 6
IMPACT OF FEWER OEM BRANDS The fiscal viability (or not) of vehicle manufactur-
Submitted via e-mail by JAFTLLC
Great Lakes Robert Brown Jr. 1000 W. University Dr., Ste. 209 Rochester, MI 48307
Government Fleet
Dave Cole Mechanical Maintenance and Warehouse Administrator City of Glendale, Calif.
WAKE-UP CALL FOR CITY OF SCOTTSDALE I sure bet this was a wake-up call! (See Nov. 22 news story entitled “Scottsdale Audit Recommends Consistent Rates & Cost-Cutting Measures.”) Here’s a free tip: Reuse your equipment! Stop being convinced that you have to purchase new stuff every time you purchase vehicles! This saves money. It is good for the environment and is much more practical! Great write-up!
Brian Peach (310) 533-2548
6
Walter Burnett Public Works Director City of Macomb, Ill.
RIGHT TO THE POINT The article on the “Top 10 Challenges Facing Public Sector Fleets” was a GREAT article. (See November/December 2010 issue.) It was well written and right to the point. Thank you.
ers is a concern. Already several brand names have been killed off, and the potential for more is very real. This could adversely affect fleet standardization and strategic plans, as well as the availability of parts, etc. On the positive side (for the remaining car companies), fewer manufacturers or brands could give the remaining automakers more “leverage” with consumers to increase prices or offer less options/upgrades for the same price. If this were to
GF READERS REACT TO FLEETS IN THE NEWS
Production Director/Manager Kelly Bracken (310) 533-2574
Printed in USA
CAPTURING THE ESSENCE The cover story in the November/December 2010 issue was a good article. I think you did a nice job of capturing the essence of the challenges. I guess I would sum it up with what I recently told one of our aldermen, which was: “I’m pretty good at doing more with less, but I can’t do more with nothing.” A lot of municipalities are facing that prospect.
As background, the Nov. 22, 2010 news story reported on an audit conducted by the City of Scottsdale, Ariz., of the Public Works Division’s Fleet Management Department, which maintains more than 1,200 City vehicles and equipment. The audit included three recommendations. 1. Fleet Management should ensure that vehicle replacement, maintenance, and operation rates are based upon a documented, cost-based methodology that is consistently applied. In addition, Fleet Management should track the vehicle replacement charges for individual vehicles and equipment to ensure departments are not over- or undercharged. 2. Develop more specifi c fi nancial policies for the fleet management fund. The department should establish written guidelines and procedures for
the development of a 10-year fi nancial plan. Fleet Management should ensure capital funds are only applied to fleet-related capital projects and review whether any money transferred from the fleet fund for non-fleet purposes should be returned. 3. Draft policy and procedures for identifying and removing underutilized vehicles, document policies and procedures for the loaner program and review outstanding loaner vehicles for further fleet reductions, and continue to request an executive review of the take-home vehicle policy and assigned vehicles. The City of Scottsdale Public Works Fleet Management concurred with all fi ndings and has proposed resolutions for each recommendation. All actions are to be completed by June 30, 2011. – Editor KUDOS TO SCOTTSDALE I read the Nov. 22 news story entitled “Scottsdale Audit Recommends Consistent Rates & Cost-Cutting Measures.” I can only offer kudos to Scottsdale, Ariz., for their well-thought-out, logical, and professional review and recommendations for their fleet function! Other entities should take note! Al Cavalli Retired Fleet Manager Past NAFA President Massapequa Park, N.Y.
January/February 2011
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When it comes to alternative fuels, propane is far and away the best alternative. UÊ ÜiÀÊ «iÀ>Ì }ÊV ÃÌÃ UÊ,ivÕi }ÊiµÕ « i ÌÊV ÃÌÃÊÃ } wÊV> Ì ÞÊ iÃÃÊÌ > Ê UÊ/ iÊ }iÃÌÊ`À Û }ÊÀ> }iÊ vÊ> ÞÊ> ÌiÀ >Ì ÛiÊvÕi UÊ,i`ÕVi`ÊÛi V iÊi ÃÃ Ã
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MAIL STOP occur, the fleet industry, particularly the public sector, should explore (or be more open-minded) to automakers from Japan, Korea, etc., as potential sources for future fleet vehicles.
things go as a “status quo” are truly over. Submitted via e-mail by John Musgrove
SSHOW YOUR WORTH In one of your editorials a in Government Fleet magazine, m you wrote about ab being able to show your y job worth — this is so true! This is why it is so important to stay curre rent with the market and w where technology is going. I ssee so many falling behi hind, or were never there in the fi rst place.
Author wished to be e anonymouss
FLEET MANAGEMENT 101: TELL THE STORY The editorial “Fleet Management 101: Tell the Story” was a great article! (See the November/December 2010 issue.) The editorial’s emphasis on being “proactive” as opposed to “reactive” is great! Fleet managers do have it rough, especially as budget cuts always seem to run down to them fi rst. I hope this helps them explain that without a fleet, not much gets done. The days of sitting around and letting
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Government Fleet
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Larry Campbell, CPFP Fleet Management Director City of Fort Wayne, Ind.
NOTHING OUT OF THE ORDINARY FOR CY-2011 I don’t really anticipate anything
new or out of the ordinary for 2011. Budgetary concerns will again be a major factor. Even though we may have been through the worst of the economic downturn, it appears the recovery process will be slow. We will continue to take a conservative approach to expenditures and seek to maintain existing service levels while delaying most new initiatives. At this time, new vehicle purchases are expected to be roughly the same as 2010, which could be a positive sign that things have at least leveled off. As always, we will continue to look for ways to reduce fleet costs and improve services for our customers. For example, we regularly review preventive maintenance procedures to ensure PM cost effectiveness while concentrating efforts on vehicle safety. We anticipate carrying most current fleet staffing vacancies through at least 2011. Author wished to be anonymous
January/February 2011
12/30/10 2:14:02 PM
MAXIMIZING UTILIZATION AS A COST CONTROL STRATEGY I like your thoughts and comments on cost containment and shrinking the fleet to reduce costs. One additional “shrinking” that compounds our struggle is reductions in technician staffing to perform the maintenance, yet retaining aged vehicles instead of a new purchase.
demonstrated fiscal responsibility? Maybe fleet should have spent an extra $10 million. Author wished to be anonymous
As background, the July 29, 2010 news story reported that the new city auditor for the City of Sacramento decided to audit the City fleet. The auditor wanted to delve into why the fleet
division’s budget for fiscal year was $7 million less than its budget in 2007/08, which prompted the reply from the above reader. The City’s fleet, overseen by the General Services Department, had a proposed 2011 fiscal year budget of $34 million. The auditor’s goal is to complete the audit by June 30, 2011, the end of the fiscal year. – Editor
Kelvin Smith Shop Supervisor Minnesota Dept. of Transportation St. Cloud, Minn.
UPTICK IN DIESEL FUEL-RELATED PROBLEMS Ultra low sulfur diesel (ULSD) was needed for catalytic (Pt/Pd) coated DPF system to have a reasonable durability. (See the Public Forum editorial “Unanticipated Trade-Offs to ULSD” in the September/October 2010 issue.) There are other types of DPF systems that do not need ULSD. We developed a fuel borne catalyst (FBC) and Oil Borne Catalyst (OBC)-DPF system that can work with 50-100 ppmS diesel fuel. Guess how much energy and money we can save by adapting 50-100 ppm S-diesel? Now is the time to change the ULSD. We need clean diesel emission at reasonable cost, but do not need “ultra”-clean emission at extreme high cost. Submitted via e-mail by Julius Rim
CITY OF SACRAMENTO AUDITOR INVESTIGATES CITY FLEET This auditor must have a degree in the Science of Rocketry. The fleet lowered its expenses by $7 million since 2007/08 and were promptly rewarded with an audit for its efforts. Seriously, isn’t there a handout program or planning department that requires attention more than a city department that has
THE BIG NAME IN FLEET MANAGEMENT SOFTWARE We’ve decided it’s time to make a big noise about ourselves. In case you didn’t know, we deliver flexible enterprise fleet management software to provide a clear view of fleet performance. What’s more, we’ve been doing it since 1990. Across the country and around the globe. So when you need to manage your assets more effectively, reduce expenditure and ensure compliance, contact the big name in fleet software today. So get on board with the big name in fleet management software. Contact Ron Katz to arrange a free systems review: call (781) 793-0788, email ron@chevinfleet.com or visit www.chevinfleet.com
Government Fleet
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January/February 2011
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INDUSTRY NEWS
FORD DEBUTS STEALTH POLICE INTERCEPTOR
Ford Stealth Police Interceptor
DEARBORN, MI – A specialized stealth concept version of Ford’s Police Interceptor debuted at the SEMA (Specialty Equipment Market Association) trade show in November 2010. The stealth version of the Police Interceptor was designed using imagery of the SR-71, the original stealth airplane revealed in the 1960s, for inspiration, according to Ford. The exterior of the stealth vehicle is solid black. The vehicle features a lowered body, stacked rim section for the illusion of added width, and a thicker mesh grille for more depth. The lights on the car were designed to be inconspicuous, with the surrounding area painted black to blend in until illuminated. The back of the vehicle was given a spoiler adorned with bead lights painted black so they remain unnoticed until the car
is started. The taillights are smoked and the windows tinted. The Police Interceptor sedan was introduced in March 2010, followed by a utility version in September. Both Interceptors will debut simultaneously when production of the Ford Crown Victoria Police Interceptor ceases in late 2011. The Police Interceptor sedan model is available in two powertrain options. A 3.5L V-6 engine delivering at least 280 hp and E-85 compatibility is 25 percent more efficient than the 4.6L single-overheadcam V-8 offered in the current Ford Crown Victoria Police Interceptor. An all-new 3.5L twin-turbocharged, direct-injection EcoBoost V-6 engine will deliver at least 365 hp and 350 lb.-ft. of torque across a broad rpm range, according to Ford.
DC Water Hosts Successful GF/100 Best Seminar WASHINGTON – Pictured (l-r) at the Government Fleet /100 Best Seminar at the District of Columbia Water & Sewer Authority (DC Water) on Nov. 9, 2010 are: Tim Fitzgerald, fleet manager, and Frank Torcisi Jr., analyst, for DC Water; John O’Leary, Harvard Kennedy School; and Tom Johnson, author of the 100 Best Fleets and Government Green Fleet programs.
Green Fleets and Environmental Leaders Awarded SAN DIEGO – Gregg Duckett, Public Works operations manager for the City of Phoenix, was present at the Green Fleet Conference in October 2010 to accept an award from Tom Johnson, author of the 100 Best Fleets and Government Green Fleet programs, after the City was named the No. 6 government green fleet in the nation. Duckett was also recognized with a 2010 Environmental Leadership Award.
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Audit Calls for San Jose to Eliminate 93 Take-Home Vehicles SAN JOSE, CA – An audit of the City of San Jose fleet found the City could save $630,000 annually by eliminating 93 take-home vehicles. Dated Oct. 14, 2010, the audit’s focus was on the commuting portion of City vehicle use, estimated to be 1.5 million miles, or 9 percent of total use. It concluded that “the City has allowed City employees to take home more vehicles than needed to meet its operational needs.” According to the audit, the City operates a fleet of 2,200 vehicles. A total of 166 were used as take-home vehicles in FY 2009-10, 144 of which were in use by the Police Department. Auditors stated: “Vehicles should go home with employees only when frequently needed to address emergencies in the field requiring immediate response. However, the City lacks a defined purpose for take-home use of City vehicles and a process for consistently evaluating department justifications.” The projected $630,000 in savings from commuting costs were calculated from 90 police units (including traffic enforcement motorcycles, canine units, and MERGE units used to respond to critical incidents) and three fire department units. The audit also recommended the City amend its vehicle policy to clearly define the purpose of take-home vehicles and restrict their use to the greatest extent possible, and add that only City employees can be assigned vehicles on a take-home basis. J
January/February 2011
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GF0111toyota_sienna.ind
“Mommy Like. Daddy Like. CFO Like.” –Int –I ntel nt ellilliiCh el hoi oice® say ayss Si Sien enna en na has a his isto tory ry of be bein ing g th the e “Be Best st Overa vera ve rallll Val alue ue of th the e Ye Year ar”” wi winn nner er..1
The Sienna Minivan. There’s plenty to like. Including a bigger interior that’ll give you more than enough storage to fit just about anything for your business. And when it comes to bottom-line efficiencies, consider this, according to IntelliChoice,® Sienna has a history of having the highest retained value of any minivan out there.1 And what’s not to like about its low operating costs, high resale value and high return on investment. You like? We thought you and your bottom line might. To make Sienna a fleet vehicle and an asset to your business, call 1-800-732-2798 or go to fleet.toyota.com MY2011 shown with options. 1MY2001-2010 IntelliChoice.com award. IntelliChoice is a registered trademark of Automotive.com, LLC. ©2010 Toyota Motor Sales, U.S.A., Inc.
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INDUSTRY NEWS
ELECTRIC MODELS DEBUT AT LA AUTO SHOW LOS ANGELES – Several new models were unveiled at the Los Angeles Auto Show in November 2010. Among the vehicles showcased were the Chevrolet Volt, as well as the all-new 2012 Ford Focus. Other electric vehicle and concept debuts included the Honda Fit EV Concept, Toyota RAV4 EV, Mitsubishi i-MiEV, Volkswagen Golf blue-e-motion, and Saab 9-3 ePower.
The Chevrolet Volt’s Voltec propulsion system gives the vehicle up to 350 total miles of range.
The all-new Ford Focus is E-85 flex fuel capable and delivers an expected 40 mpg.
(Above) The second-generation Toyota RAV4 EV is one of 35 vehicles built for a demonstration and evaluation program.
(Above) The Honda Fit EV Concept will achieve an estimated 100-mile driving range per charge. (Left) Mitsubishi’s i-MiEV is its first allelectric production vehicle for the North American market.
(Right) The Saab 9-3 ePower is the automaker’s first EV.
NYC Employees Test Car Sharing NEW YORK – New York City began its first-ever car share program for City employees in October 2010, allowing employees at the Department of Transportation (DOT) to share use of dedicated Zipcar vehicles for daily official business. The vehicles are available for public use on evenings and weekends, according to Mayor Michael Bloomberg’s office. Under the one-year pilot program, 300 DOT employees share 25 vehicles — 23 hybrids and two mid-size vans — to carry out responsibilities related 12
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to the planning, operation, and repair of the City’s streets, bridges, sidewalks, and other infrastructure. They are also used to attend meetings not accessible by public transportation. The car share vehicles are reserved through a computer reservation system. The mayor’s office predicts the pilot could save more than $500,000 over four years in reduced costs for vehicle acquisitions, fuel, and maintenance. The program will be evaluated to determine the effect on agency operations, vehicle miles traveled, cost, and the effect on
parking in lower Manhattan, where the vehicles will be housed. Successful municipal car share systems in Washington, D.C. and Philadelphia were reviewed during the creation of this program. If successful, the car share system could be expanded or implemented by other agencies. The pilot program is a component of a citywide initiative. Mayor Bloomberg ordered City agencies to reduce nonemergency, light-duty vehicles by at least 10 percent in 2009, which resulted in the sale of 750 City vehicles. J
January/February 2011
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INDUSTRY NEWS Polk County Expands Insourcing BARTOW, FL – On Nov. 1, 2010, Polk County, Fla., Fleet Management took over the management and operation of the City of Ft. Meade, Fla., fleet of 46 units. Ft. Meade previously had a shop with three personnel, run by a lead mechan- STANTON ic. After hearing about the successful outsourcing of fleet management by Cities of Lake Wales and Auburndale, Ft. Meade approached Polk County for the same services. The City’s fleet units are now maintained at a County satellite shop previously used exclusively for roadway units, according to Bob Stanton, CPM, CPFP, director of Polk County Fleet Management. Stanton stated that by outsourcing, the cities benefit from the lower costs resulting from economies of scale and from the implementation of professional fleet management processes. Polk County now maintains a total of 2,656 units and employs 35 fleet maintenance technicians.
THINK City Car Coming to U.S. TORRANCE, CA – THINK, a Scandinavian electric vehicle maker, plans to launch its THINK City vehicle in the U.S. in the second quarter of 2011, according to Michael Lock, chief marketing officer. THINK designs, develops, manufactures, and markets full battery-electric vehicles (BEV) and electric vehicle technologies and has been doing so since the early 1990s. The THINK City will be released in the U.S. as a two-seater model, providing “healthy” cargo space, said Lock. While 75 percent of its four-seater model sales in Europe have been derived from fleet over the past year, Lock said the company plans to initially target the U.S. retail market when it arrives in the U.S. this year with an MSRP ranging from approximately $32,000-$33,000 (without incentives). However, THINK announced the State of Indiana took delivery of 15 THINK City electric passenger cars in December 2010 for use principally by the Department of Resources in the State’s park system. THINK City is highway-certified and can travel at a top speed of 70 mph and a 100-mile range, Lock said. The vehicle weighs 2,200 lbs. Standard structural features of the THINK City include the steel load bearing under-structure, plastic body panels, McPherson front suspension, torsion rear suspension, front-wheel drive with electric powertrain, and single speed reduction gearbox. THINK is in the process of determining its distribution channel and does not currently have a dealer 14
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Philadelphia Pilots Car Sharing and Tracking Technology PHILADELPHIA – Philadelphia Mayor Michael Nutter announced a Department of Human Services (DHS) pilot program to install vehicle sharing and tracking technology in 25 City-owned vehicles used by DHS social workers, according to a release from the City. Connect by Hertz provided the technology, which will link to an automated scheduling system that DHS social workers can use to reserve vehicles online. Global positioning system (GPS) tracking, an on-board navigational system, and an in-car, hands-free telecommunication system will be available. Drivers will use an access card to facilitate entry, and car keys will be kept tethered in the vehicle. Drivers can reserve cars with as little as one hour of advance notice. The reserved vehicle’s ignition will be disabled until the reserving driver’s access card is presented at the appointed time on the scheduled vehicle. This technology will provide round-theclock security, seven days a week, with minimal administration. Several drivers can reserve the same vehicle on the same day with this automated reservation system, thus increasing the efficiency of vehicle usage. “Since the City launched its vehicle sharing program in 2004, nearly 500 employees have embraced vehicle sharing as an efficient, effective, and sustainable transportation option,” said Mayor Nutter. “This technology will increase the accountability and transparency of DHS work while increasing the productivity of employees who travel to communities around the City.” According to City officials, the average annual operating cost of a City-owned passenger vehicle is approximately $5,000. If a review of the program shows increased operating efficiency, DHS may expand its use to serve the entire department’s fleet of 107 vehicles. Vehicle sharing enabled the City to reduce its fleet reduction by more than 400 cars since 2007. The City’s vehicle sharing program aligns with Target 12 of the Greenworks Philadelphia plan, which aims to reduce vehicle miles driven in Philadelphia by 10 percent.
Indiana Governor Mitch Daniels (left) receives the key of a THINK City car from THINK CEO Barry Engle. Governor Daniels presided over a vehicle presentation Dec. 16, 2010 at Fort Harrison State Park outside of Indianapolis.
network. The company plans to market the vehicle in less conventional methods, avoiding traditional auto show events. The California Air Resources Board (CARB) approved the THINK City as a zero-emissions vehicle (ZEV).
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ELEMENTS OF A COMPREHENSIVE FUEL MANAGEMENT PROGRAM A well-designed fuel management program controls costs, improves driver productivity, meets regulatory requirements and organizational policy goals, and provides for the collection of essential data and production of management information.
ost government fleet managers oversee fuel, as well as vehicles. While fuel is one of the largest fleet operating costs, the volatility of fuel prices over the past few decades has led some government fleet managers to develop a fatalistic attitude regarding fuel costs and a passive approach to managing fuel. Since fuel prices have spiked in the past and are bound to do so again in the future, government budget directors are accustomed to having to supplement the fleet budget when prices go up. Consequently, some fleet managers see managing fuel costs as a lower priority and focus their attention on other issues. However, savvy fleet managers know there are several steps they can take to reduce fuel use and costs. A well-designed fuel management program controls costs, improves driver productivity by maximizing easy access to fuel, meets regulatory requirements and organizational policy goals, and provides for the collection of essential data and production of management information.
BY RANDY OWEN
Surprisingly, research shows few government fleets have a formal fuel management policy. Such a policy should define: • Goals of the program (e.g. providing ready access to fuel, ensuring fuel is available during emergencies, cost control, environmental stewardship, etc.). • Structure of the fuel program (i.e., bulk fuel and/or commercial fuel cards). • Organizational responsibilities. • Applicable regulations and how they will be met. • Driver accountability and responsibilities (e.g. no premium fuel, accurate recording of odometers, etc.). • Safety and security. • Any policy goals enacted by elected officials (such as reducing petroleum use and the jurisdiction’s carbon footprint). Once a policy is place, the organization should develop a strategic fuel plan that specifically defines how policy goals will be met. For instance, the policy may include
AT A GLANCE Several steps to reduce fuel use and costs include: • Developing and implementing a formal fuel management policy. • Purchasing fuel in bulk. • Expanding fuel site network with a universal commercial fuel card. • Training drivers to operate vehicles and equipment more fuel-efficiently. • Right-sizing vehicle and engine selections. 16
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M
WHAT’S THE POLICY?
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a statement that ensuring sufficient fuel supplies during emergencies is important for the organization. The strategic plan will define precisely how this will be accomplished. The plan should be updated annually, whereas the policy can be reviewed every few years and updated as required.
BULK UP Most government jurisdictions operate one or more on-site fuel stations. There are pros and cons to this approach. The primary advantage is that fuel is purchased in bulk to provide volume price discounts. The rule of thumb is that an organization should realize savings of three to five cents per gallon from operating an on-site fuel station over comparable retail prices. Note that for a valid cost comparison to be made, all direct and indirect costs associated with operating bulk fuel stations (such as depreciation/ replacement of infrastructure, personnel, services and supplies, insurance, etc.) and retail prices based on volume purchase contracts less inapplicable taxes and fees must be included. Comparing the price an organization pays per gallon through its contract bulk fuel supplier to the posted price per gallon at the local gas station is, of course, not valid. Moreover, a relatively high throughput of gallons each year is required to achieve the benchmark price advantage. Fuel from low volume bulk sites always costs more than fuel purchased through good contracts with retail stations or a commercial fuel card provider. Bulk fuel stations also provide insurance against short-term supply disruptions due to natural disasters, offer convenience to crews returning to a central yard each evening, and can provide enhanced security if proper measures are put in place. However, operation of fuel sites also comes with environmental liabilities. The cost associated with mitigating a spill from a single fuel site can run into the millions of dollars. Compliance with federal, state, and local regulations is also increasingly burdensome and expensive. Consolidating stations to ensure high volumes is important. Regional partnerships between cities, counties, and school districts are also a good way
Operating one or more on-site fuel stations has pros and cons. While purchasing fuel in bulk takes advantage of volume price discounts, operation of fuel site stations also comes with environmental liabilities.
to spread overhead costs over the largest possible volume of fuel. Achieving cost savings from operating bulk fuel stations hinges on having a competitive annual fuel contract in place. Such contracts leverage an organization’s volume purchasing capabilities and result in the lowest possible per gallon price for fuel. As such, it is important that all of an organization’s fuel purchases roll up to a single contract even if multiple agencies operate separate fuel stations (consolidating fuel management is always the best approach). It is normal for fuel contracts to be pegged to a price index. The most commonly used index is OPIS (Oil Price Information Service). This independent organization publishes prices each day that can be used by both sellers and buyers to base/track pricing. A major misconception among fleet managers is that a single OPIS price exists when in fact the organization publishes several price indices. Broadly, these are spot prices (the commodity price in New York and a few other locations), rack prices (fuel depot prices), and retail prices. To make things more confusing, OPIS tracks the low, average, and high price each day at several hundred racks around the country. The largest and most important customers at a rack, including “branded” retail gas stations (i.e. major gas stations such as Texaco, Shell, and Exxon) pay the
lowest prices. Independent (“unbranded”) retail stations are next with high volume fleets following in the pricing pecking order. Prices can vary significantly depending on which index and rack location is used to benchmark pricing. Thus, an organization with a fuel contract priced at OPIS minus 5 cents may actually be paying more than another with a contract priced at OPIS plus 2 cents. Therefore, it is important that all invoices are independently verified against the proper index by the buyer, rather than relying on the seller to provide supporting documentation that cannot be verified. Establishing a contract based on a margin (plus or minus) from the unbranded low price per day at a particular rack is probably the best practice. The margin covers the supplier’s overhead costs and profit. The contract should stipulate separate pricing for transportation to each of a fleet’s bulk fuel sites to provide transparency and eliminate the risk of a supplier proposing a low margin, only to make it up by charging more for transportation. Moreover, transportation fees should be clearly defined regarding the rate structure when multiple deliveries are made (such as two fuel products to the same site or split loads to multiple sites). The contract should also differentiate between prices for full tanker loads (generally 8,000 gallons) and “short” loads, which
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FUEL MANAGEMENT always cost more. A fleet may also want to include a variety of services in its fuel contract, such as tank monitoring, fuel site and equipment maintenance, and even an automated fuel management information system (FMIS). Some suppliers will also provide turnkey fuel management services as part of an annual contract. With respect to an FMIS, such systems are no longer a luxury but are considered a requirement if an organization operates bulk fuel sites. An FMIS provides security over theft, essential data for reporting fuel use, and accurate odometers that are important for a host of fleet management purposes. Low volume fuel sites that lack an FMIS should either be automated or closed. Systems can be operated with magnetic stripe cards, key fobs, or entirely by keyboard entry. The best systems are “passive” in that a module installed on vehicles communicates with the system, authorizes the transaction, and records all required data.
WHO HOLDS THE CARDS? Even if your organization operates several bulk fuel sites, you should also consider the advantages of supplementing the network with a universal commercial fuel card. Such programs provide access to thousands of retail fuel stations and can enhance the productivity of drivers by making fuel readily available throughout a city, county, or state. Such programs can also save money for remotely located drivers who otherwise would be required to drive miles out of their way to access one of an organization’s bulk fuel sites — thus unnecessarily burning fuel. Volume price discounts may be negotiated and taxes removed by the fuel card company before a fleet is billed. Given these advantages, some government fleets have moved away from bulk fuel networks in favor of commercial card programs. Corporate and state fleet managers are well acquainted with these programs and can steer you in the right direction. Local government fleets can “piggyback” on state contracts for fuel cards in most cases.
ARE YOU TRAINABLE? An important, and often overlooked, component of effective fuel management 18
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is a program to train drivers on ways they can lower fuel use and costs. For example, driving 65 mph instead of 55 mph can use up to 20-percent more fuel, idling a typical heavy-duty engine burns about 0.8 gallons of fuel per hour, and driving with the engine rpm too high can waste several gallons of fuel each hour. Other common habits that reduce fuel economy are frequent or improper shifting, too-rapid acceleration, too-frequent stops and starts from failing to anticipate traffic flow, and taking circuitous routes. (See resources at the United States Environmental Protection Agency website: www.epa. gov/smartwaylogistics/transport/partnerresources/resources-publications.htm.) Training should also include how trucks are loaded, as unnecessary weight has a dramatic impact on fuel use. Fuel economy is reduced by around 1 percent for every extra 100 lbs. of weight loaded in a vehicle. Drivers should also be educated on proper tire inflation (which can improve fuel consumption by as much as 10 percent) and timely maintenance (which can improve fuel consumption by 4 percent). Tips on fuel use can be communicated through a fleet newsletter, on the fleet website, or through live and in-person training sessions. Some organizations make drivers obtain a city/county/state driver’s license before they are authorized to drive a government vehicle (a good practice). This entails review of and testing on organization policies related to fleet use, safety, and — you guessed it — ways to lower fuel use.
BUY RIGHT Saving money on fuel starts with decisions on which types of vehicles an organization buys. As mentioned, lighter is better. Work crews often want larger vehicles to cover all possible situations they may face in the field. However, not only do larger vehicles cost more to buy, they also use more fuel. Even when larger vehicles are required, smart specification decisions can lower weight and raise fuel economy. Use of aluminum and composites instead of steel can save several hundred pounds of weight, as can smaller engines (which achieve better mileage as well, providing they fit the application and work to be done). Axle types (super
Drivers play an important role in lowering fuel use and costs. Tips on decreasing fuel use can be communicated through a fleet newsletter, on the fleet website, or through live and in-person training sessions.
single versus dual), rear-end ratios, and transmission choices also have a material impact on fuel economy. Government agencies typically must buy from the lowest cost supplier that is responsive to the bid specifications. Consequently, including lifetime projected fuel costs in the cost evaluation process is not only a good idea for driving down fuel use, it is an essential component of lifecycle cost evaluation — a best practice that all fleet managers should follow. Even though fuel prices are bound to rise in the future, fleet managers can still save their organizations money on fuel by actively managing this important function. A combination of competitive contracting, driver training, data management and exception reporting, and smart decisions regarding vehicle specifications can cut fuel use and costs by tens and even hundreds of thousands of dollars each year. ABOUT THE AUTHOR Randy Owen is senior vice president at Mercury Associates Inc. He can be reached at rowen@mercuryassoc.com.
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INCENTIVIZING
DRIVERS TO
CONSERVE
FUEL Fuel is the No. 1 fleet operating expense. Polk County, Fla., achieved favorable results by addressing one of the main, yet overlooked sources of rising fuel consumption — the driver. BY BOB STANTON
A
s fuel costs continue to fluctuate, how can a local government, whose services must continue based on the needs — sometimes emergency — of its citizens, mute the impact of fuel costs, especially when those costs rise uncontrollably? By only reading industry publications, one might presume fuel conservation success can be achieved by technology alone through the use of alternative fuels, hy-
AT A GLANCE Since implementing its driver-based fuel savings program two years ago, Polk County, Fla., has achieved the following results: • Fuel consumption reduced by 13.4 percent, or 436,000 gallons. • Reduced 6.2 million lbs. of carbon. • Reduced preventable accidents by 22 percent. • Crash damage severity reduced by 35 percent. 20
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brid, or all-electric vehicles. The Clean Air Act of 1990 certainly steered governments in that direction and now, 20 years later, it’s clear that legislation failed to achieve tangible results. Governments at all levels nationwide have collectively invested billions in technology, which at best has yielded marginal fuel conservation success, and at worst, the technology, hardware, and vehicles have been scrapped at enormous cost. A negative return on investment (ROI) is certainly hard to justify for any organization, public or private. Like many others, Polk County, Fla., dabbled in the “technology du joir” with mixed results and achieved an unsatisfactory ROI. In the summer of 2008, as fuel costs rose to historic levels, the clarity of two alternatives became evident. Government fleets can’t take the same steps as private fleets, such as reducing the in-
ventory of vehicles, adjusting routes, or consolidating trips. As fuel costs rise, governments can either accede to the increases and cut expenses in other areas, or take proactive and perhaps dramatic steps to conserve fuel. This is the approach taken by Polk County.
STARTING AT THE SOURCE Polk County already had an idle awareness program in place. It was downsizing vehicles and engine sizes and assuring vehicle utilization was maximized by monitoring utilization and repositioning or retiring vehicles that failed to meet utilization criteria. In summer 2008, Polk County went where few other fleets have gone — to its drivers. All studies show the largest single contributor to fuel use and/or conservation is the driver. Polk County decided the quickest route to meaningful fuel conservation was to target driver behav-
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FUEL CO NSERVAT I O N
Polk County, Fla., affixed decals to the rear of its vehicles to alert fellow motorists that County drivers observe 55 mph speed limits.
ior and modify it where possible. A three-pronged approach was used to modify driver behavior. First, the maximum travel speed of the County’s onhighway vehicles was limited to 55 mph. An in-house Eco-Driver training program was developed to train, reinforce, and promote driving habits proven to reduce fuel consumption and assure driver buy-in, and the County added an incentive program to allow employees to share monetarily in their own conservation success.
INSTITUTING A MILES-PER-HOUR RESTRICTION Speed is a huge factor in fuel consumption and vehicle efficiency. Countless studies, both public and private, document the differential in fuel use at various speeds. Although study results vary slightly, they all reach the same conclusion about the efficiency benefits of operating a vehicle at 55 mph compared to higher speed operation. Most agree that operating a vehicle at 55 mph versus 65 mph yields a 15-percent fuel economy advantage. Polk County is as large as the State of Rhode Island and its fleet operates more than 14 million miles per year. The potential benefit from slower speed operation was clear. Because safe vehicle operation is paramount in any vehicle-related decision, the County consulted with the sheriff’s office and the Florida Highway Patrol to verify that such a reduction in speed, for a fleet of its size (2,158 on-road vehicles and 498 off-road units) wouldn’t 22
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Through instituting its driver-based fuel savings program, Polk County, Fla., has reduced fuel consumption by 13.4 percent.
pose an undue hazard to fellow motorists. Both agencies approved the plan. As a further advance measure, the County conducted informal travel time studies on various roadways to assure the limitation wouldn’t impede employee productivity. The County found the time differentials amounted to only seconds. The County affixed decals to the rear of its vehicles to alert fellow motorists that County drivers observe 55 mph speed limits to hopefully send them a message that we are taking extraordinary measures to conserve fuel. The decal also serves as a self-policing device that reminds County drivers that 55 mph is the limit.
INSTITUTING AN ECO-DRIVING PROGRAM As noted above, the driver is the greatest single factor influencing fuel economy. According to Bridgestone’s Real Answers magazine, up to 35 percent of a vehicle’s mpg is directly attributable to the driver. The County endeavored to modify behind-the-wheel driver behavior by developing an in-house “Eco Driver” training program to educate drivers about the simple driving techniques that result in tangible mpg improvements. With simple modifications, a driver can have a huge impact on the efficiency of an operated vehicle. The County’s program draws heavily from County statistics and Ford’s Web-based “Driving Skills for Life” program. Eco-Driving has been embraced by
companies worldwide. There is no shortage of source material from which to develop a simple, one-hour training program to implement fleet-wide. The training was conducted at various convenient locations during the employees’ workday, and because the program took only an hour to present, it didn’t represent a large investment of time, especially when considering the potential payback.
CREATING EMPLOYEE INCENTIVES Did I say payback? How do you achieve and promote employee participation in a program such as this? Fortunately, Polk County employees are excellent. They understand their responsibility to the taxpayer and generally adopt actions management feels are important facets of their jobs. The County went one step further however, by implementing a program that allows County employees to share in their own mpg success through the creation of an employee fuel conservation incentive program. To participate, drivers complete the Eco-Driving skills training program and sign a simple, one-page contract agreeing to adopt and practice the techniques learned. Further, the contract includes a stipulation that if the driver is involved in a preventable crash, participation in the program will be terminated. It’s presumed if a preventable crash occurs, the employee was probably not observing the Eco-Driving principles.
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Embraced company-wide, Eco-Driver training educates drivers about the simple driving techniques that result in tangible mpg improvements.
In return, the County agreed to monitor driver mpg over the one-year contract term and if the driver’s mpg improved by 5 percent, the County would split the fuel savings by dollar with them on a 50/50 basis. The potential payout from this program for some drivers exceeded $300. One driver’s actual incentive exceeded $450. Not all drivers were eligible for the program. For example, unable to participate were drivers of emergency vehicles and transit buses, because they frequently “slip seat” (where one driver replaces another at the end of a shift).
ACHIEVING THE RESULTS Over the two years since implementation, Polk County achieved the following results: • Fuel consumption reduced by 13.4 percent, or 436,000 gallons. • Reduced 6.2 million lbs. of carbon. • Reduced preventable accidents by 22 percent. • Crash damage severity reduced by 35 percent. These results are irrefutable. The overall hard dollar savings seen by Polk County due to these incentives have exceeded $1.5 million. The cost of the program is minimal. Beyond the $800 decal cost and the one-hour training time, the program has cost the County nothing. Even the incentive payouts came at little cost. The incentive payouts originated from dollars saved versus dollars spent. As a result of its success, the Polk County School Board adopted the 55-mph restriction in May 2010 and the Florida Department of Transportation (FDOT) is currently studying the program for statewide adoption.
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ABOUT THE AUTHOR Bob Stanton, CPM, CPFP, is director, fleet management for Polk County, Fla. He can be reached at BobStanton@polk-county.net.
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HOW TO CALCULATE
TECHNICIAN-TO-VEHICLE RATIOS To properly maintain and manage a public sector fleet operation, determining the necessary ratio of technicians to vehicles is key to keeping vehicles on the road and operations running smoothly. BY SAL BIBONA
C
alculating technician-to-vehicle ratios is important, not only in analyzing staffing requirements, but also when making benchmarking comparisons on an inter- and intra-organizational basis. To begin learning how to calculate technician-to-vehicle ratios, start with the fundamentals and learn from real-world examples.
USING SIMPLE RATIOS The most simplistic approach stipulates that a specific number of technicians is needed to support a fleet of a given size. The following table summarizes typical ratios used for different fleet types:
AT A GLANCE When calculating vehicle-to-technician ratios, fleet managers should consider: • Percent of work performed in-house. • Variations in technician utilization due to non-fleet activities, etc. • Vehicle age, utilization, and condition. 24
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TABLE 1
SAMPLE VEHICLE-TOTECHNICIAN RATIOS Vehicle Type
Vehicle : Technician
Ratio
Transit bus
10:1
School bus
20 to 30:1
Fire departments
30:1
Small towns
35:1
Counties & cities
55 to 60:1
Utilities
55 to 75:1
This is the most fundamental and rudimentary type of staffing ratio; it has the advantage of being easy to use. When applied to a specific vehicle type, such as a police car, fire truck, school bus, or trash compactor, this approach can be used in situations where quick and approximate comparisons must be made. When applied to a “mixed” fleet, such as a local government fleet operation, this approach
can work if it can be assumed the mixed fleet under review has a composition of light-, medium-, and heavy-duty vehicles and equipment, somewhat similar to those of peer fleets from which the ratio was derived. Otherwise, the simple ratio approach may not be fully satisfactory.
VEHICLE EQUIVALENCY RATIOS A more precise approach takes into account the size and composition of the fleet by applying vehicle equivalents. Most notable are Maintenance and Repair Unit (MRU) factors, which index the maintenance and repair requirements of a vehicle class relative to a base vehicle class, typically a passenger car. Thus, a heavy truck, which has greater maintenance and repair needs than a basic passenger sedan, has a greater MRU factor than a passenger sedan. MRU factors by class are then multiplied by the number of vehicles in each class to produce the number of MRUs by
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class. These factors are summed for the entire fleet to result in the total MRUs, or vehicle equivalents, of the fleet. Through this process, a mixed fleet size is converted to its vehicle equivalent size, which in turn can be used to estimate technician as well as indirect staffing requirements for the fleet operation.
DERIVING MRU FACTORS The weighting factors used in MRU analysis can be derived in multiple ways. One is to survey fleet managers to obtain their best estimates of the annual total technician hours needed to maintain a particular vehicle class. The median values of their responses are then calculated for each vehicle class. Next, the passenger car is set as the base unit by dividing its technician hour requirement into the technician hour requirements for each vehicle and equipment class. This division yields the respective weighting factors by vehicle and equipment class. The passenger car has a factor of unity (1.0). Another approach is to study the maintenance histories of specific vehicle classes. Sometimes these studies will take into account other factors, such as vehicle utilization or age. Much depends on the availability of data and the degree of precision desired. Sometimes, for convenience, 20 hours per year can be used as the base MRU unit. This facilitates making historical comparisons of benchmarking data from past years, after the number of hours to maintain a passenger car has typically declined. It provides an even number for division. When using 20 hours as the base unit per MRU, it is possible for the MRU factor of a passenger car to be less than or greater than 1.0. For example, a passenger car averaging 12.5 hours per year would have a MRU factor of 0.62. This is why it is important to know what the base unit hours are when trying to compare benchmarking results from one year to the next or from one fleet to the next.
ESTIMATING STAFFING NEEDS MRUs represent a proxy for workload. Once the number of MRUs has been de-
TABLE 2
SAMPLE MRU COMPUTATION Class
MRU Factor (a)
Vehicles
MRUs
Passenger cars (non-police)
1.0
26
26.0
Pickups, vans, and other light trucks
1.5
234
351.0
Sheriff patrol vehicles
1.5
178
267.0
Sheriff motor cycles
0.9
16
14.4
Non-pursuit vehicles
1.0
0
0.0
Ambulances
3.4
0
0.0
Antique fire truck
1.0
2
2.0
Fire trucks
7.6
66
501.6
Brush trucks
3.9
15
58.5
Dump trucks
4.0
18
72.0
Street sweepers
14.0
5
70.0
Refuse compactors
7.3
0
0.0
Farm type tractors
1.4
1
1.4
Transit buses
7.0
0
0.0
Other buses (specify type)
4.8
0
0.0
Sewer trucks
3.8
0
0.0
Backhoes, loaders, and trenchers
2.7
13
35.1
Dozers, scrappers, and pavers
3.8
22
83.6
Roller
3.5
12
42.0
Bucket trucks
3.2
0
0.0
Digger derricks
4.5
0
0.0
Other trucks
3.6
54
194.4
Forklifts
0.9
0
0.0
Mowers
1.0
4
4.0
Other motorized equipment (ATVs, chippers, floor sweepers, etc.)
0.6
23
13.8
Trailers
0.6
Total
21.0 1,757.8
Note: (a) Based on 13.3 hours per MRU. Table 2 presents a sample MRU computation recently developed for a county fleet. As indicated, the total fleet size of 724 has been converted to its MRU size of 1,757.8.
termined, the maintenance and repair workload of the fleet is established. This workload can be converted into staffing requirements in two ways. The fi rst option is the direct ratio approach, in which the number of fleet
MRUs per technician, with a basis of 20 hours per MRU. Similarly, MRU ratios are available for additional fleet positions, such as supervisors, parts persons, fleet managers, etc. The second option is converting the
400 MRUs x 12.5 hours per MRU = 5,000 hours MRUs is divided by an MRU technician to vehicle ratio. Based on recent public service benchmarking surveys, this ratio is typically to be about 78 in-house
MRUs into hourly equivalents by multiplying the fleet size expressed in MRUs times the number of hours needed to maintain the base unit. Thus, if the
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35 724
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M A IN T EN A NCE & S TA FFING MRU factors had a basis of 12.5 hours per passenger car, a fleet of 400 MRUs would require 5,000 technician hours for maintenance and repair. By dividing these hours by the estimated number of hours a technician has during the year for direct work, the estimated number of needed technicians can be calculated. If technicians average 1,350 direct hours per year, 3.7 technicians would be required for proper maintenance.
PERCENT OF WORK DONE IN-HOUSE The two sample computations discussed assumed all work was done inhouse. However, a fleet operation outsourcing most of its maintenance and repair work can be expected to require fewer technicians than a fleet operation of similar size where most maintenance and repair work is performed in-house. To account for such differences, the number of MRUs should be reduced in proportion to the percentage of work performed in-house, before any MRU staffing ratios are applied. Similarly, if MRUs were converted to hours, these hours should also be reduced beforehand, dividing by the number of hours per year a technician has available for direct work. One additional option is to assess the proportion of work performed in-house by vehicle class. In the authorâ&#x20AC;&#x2122;s consulting practice, work orders are analyzed to provide the needed detail. However, if time or resources do not permit such detail, then an approximation of the overall maintenance percentage performed inhouse will need to be made. Typically, this is done on a judgment basis.
VARIATIONS IN TECHNICIAN UTILIZATION The preceding example used 1,350 hours per year as a basis for estimating technician requirements. This equates to 65 percent of the 2,080 total on-theclock hours per year in technician utilization. Some fleets may achieve higher rates, such as 70 percent, or 1,450 hours per year, and others incur lower rates, such as only 50 percent or 1,040 hours per year. In any event, there may be val26
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TABLE 3
ESTIMATED WORKLOAD AND TECHNICIANS NEEDED Total MRUs (from Table 2)
1,757.8
Total hours @ 13.3 hours per MRU
23,378.7
In-house hours @ 95 percent in-house
22,209.8
Estimated number of technicians needed @ 1,350 hours/tech. (i.e. 65-percent utilization)
16.5
Table 3 then converts the MRUs into direct hours at the rate of 13.3 hours per MRU. Assuming that 95 percent of the work is performed in-house and that each technician produces 1,350 direct hours per year (65-percent utilization rate), then the number of technicians is estimated to be 16.5. The 16.5 technicians equate to a ratio of 101 in-house MRUs per technician (95 percent x 1,757.8 divided by 16.5). Alternately, this can be expressed in the inverse as the ratio of 0.99 technicians per 100 in-house MRUs.
id reasons within a given fleet operation for some variation in technician utilization by shop facility. At some shops, technicians may be supporting non-fleet activities, such as maintaining compressor stations for natural gas vehicles. Alternatively, they may have a wider geographic area to cover and must spend more time traveling to service outlying locations. In any event, such variations in technician utilization should be taken into account when comparing staffi ng needs from one garage to the next within the same fleet organization. Of course, if lower technician utilization rates are found due to poor workforce management techniques, these variations should be used to identify where improvement is needed. Sometimes, technicians may be less productive because of older or inadequate facilities. The differences can be used to help justify improvement in the lower-performing facility. In other cases, it may simply be due to underreporting of direct hours. Thus, reasons for utilization variations must be identified before jumping to conclusions.
ADDITIONAL FACTORS TO CONSIDER Data permitting, staffing ratios can be further refined to take into account other such factors as vehicle age, utilization, and condition. This is best done for a large fleet operating a wide range of vehicle ages, utilizations, and conditions. In addition, it should be noted that MRUs represent the amount of time or
workload needed for normal maintenance and repair activity, not capital work. Fleets that engage in significant amounts of capital work, such as rebuilding, overhauling, and upfitting must account for this activity when applying MRU ratios or estimating staffing requirements. The easiest way is to increase the number of MRUs by the equivalent amount of capital work performed. Thus, if a fleet spends 2,000 hours in capital work and is using 12.5 hours per year as its base MRU factor, then 160 MRUs should be added to its fleet size expressed in MRUs (2,000 hours divided by 12.5 hours per MRU = 160 MRUs). Accidents and vehicle damage are not technically included in MRU factors. However, from a practical standpoint, they generally represent only a small percentage of work order hours by vehicle class. The major exceptions are police fleet vehicles, where accidents can account for a significant portion of patrol vehicle repairs. When properly applied, technicianto-vehicle ratios can be a helpful management tool in estimating the staffing needs of a fleet operation. However, it is also important to understand the limitations and assumptions inherent in the process to yield satisfactory and truly useful results. ABOUT THE AUTHOR Sal Bibona is president of Chatham Consulting, Inc., a fleet management consulting company. He can be reached at (973) 966-9262 or slb@chathamconsulting.com.
January/February 2011
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PROS AND CONS OF ‘RIGHT-SIZING’ VEHICLES TO INCREASE FUEL ECONOMY
Reducing vehicle fuel consumption and increasing fuel economy is one of the top challenges for fleet. However, some veteran fleet managers caution to research before buying. BY JOE BOHN
AT A GLANCE When looking to right-size vehicles for fuel economy savings, fleet managers should: • Research whether new alternative-fuel technologies, such as electric vehicles, have the supported infrastructure in operating areas. • Study vehicle utilization for potential “fleet creep.” • Be cautious of new vehicle designs. 28
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“R
ight-sizing” a fleet for better fuel economy requires considerable caution, since it can have its drawbacks as well as benefits. Many fleets, for example, have sought better economy from replacing larger trucks with smaller ones and/or switching to smaller-size power plants. But, as the City of South San Francisco, Calif., discovered, smaller trucks may not always provide the room their operators require. In most instances, the City’s switch from full-size pickups to compact four-cylinder Ford Rangers “worked out okay,” said Keith Potter, public works supervisor for the City of South San Francisco. However, where the Ranger’s interior cab was too confining to accommodate, for example, the laptop computer and stand that service technicians required, officials were forced to switch back to full-size trucks.
SUV HYBRID: POPULAR, BUT LIMITED The Hybrid Escape, Ford’s small SUV, has gained considerable popularity as a means of improving economy, though its work capabilities are rather limited. As one fleet manager, who has been replacing some of his vehicles with Hybrid Escapes, pointed out, “It’s tough to find where the plug-in electrics will work.” Where used, hybrid trucks typically serve as transportation for work supervisors. Generally, the trucks are not very effective in improving fuel economy in work applications, where the truck must idle for lengthy periods or perform other work while idling. That’s because the draw on the electrical system, such as running air conditioning, can eliminate the fuel economy benefits of the electrical backup. Another fleet manager also pointed out that, “While there are a lot of grants
January/February 2011
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SOURCE: EATON CORP.
Eaton’s hydraulic launch assist system, shown above, recovers the majority of the energy normally wasted as heat during braking and uses it to supplement the engine’s power during acceleration. The system provides the greatest benefit when the vehicle’s driving cycle involves stop-and-go driving.
out there for buying hybrids, I don’t see the economical advantage at this moment. There are a lot of unknowns. And, when the lifecycle is up, what do you do with the battery? What about the cost of disposal? The environmental waste?”
NEW EATON TECHNOLOGY As one promising work truck alternative to conventional hybrids, Eaton has developed a new hydraulic launch assist system. Already tested by several fleets and most effective in stop-and-go applications, the system employs the truck’s kinetic energy during braking to aid in launching and accelerating the truck. It basically recovers most of the energy normally generated and then dissipated by the brakes, creating pressurized hydraulic fluid, which works to significantly improve fuel economy, as well as reducing emissions and prolonging brake life, according to company officials.
RIGHT-SIZING FOR ‘FLEET CREEP’ As part of its “right-sizing” effort to cut fuel and other costs, the City of San Diego trimmed its fleet by 300 vehicles to 3,850 this year — the second such reduction in the past two years, according to John Alley, CAFM, former director of the fleet services division for the City of San Diego. The latest fleet reduction provided
savings of about $11.5 million, including an estimated 7-9 percent in fuel costs. Alley noted that, over time, “Most fleets are subject to ‘fleet creep’ where they start adding vehicles for whatever reason.” To counter that, the fleet services division studied vehicle utilization in its 37 different departments, based on either operating hours for those equipped with an OHM meter or mileage (odometer). “In many cases, we found three vehicles could be consolidated into one crew vehicle or a multitude of vehicles could be pooled, rather than individually assigned,” Alley said. A similar, previous effort in 2009 yielded only a 50-vehicle reduction, because it was left up to discretion of individual departments. “When you leave it up to departments, they’re reluctant to get rid of a vehicle,” Alley noted. The 2010 effort carried the authority of a directive from City officials, which made all the difference. One Florida-based fleet similarly “right-sized” its fleet vehicles by scaling it back to 529 vehicles, according to its fleet manager. “The biggest thing we focused on is these vehicles only being used strictly for work.”
RE-THINKING DIESELS
ing a switch back to gasoline engines for certain applications because of emissions system-related problems. Essentially, on 2007 and 2010 models, the emissions system can become clogged with soot on a vehicle that idles or works at idle a great deal without running sufficient highway miles to compensate. That’s because the systems require a certain operating temperature to burn off the soot and regenerate. Vehicles, such as dump trucks that work extensively with a power take-off (PTO), are prime examples of where such problems have occurred.
NEW DESIGNS WARRANT CAUTION When right-sizing for better economy, it pays not to jump into new designs and technology too quickly, one fleet manager cautioned. “A few years ago, everyone — UPS and a lot of other fleets — were hot on the [one particular cargo van]. They got the fuel mileage, but also found out how expensive it could be to maintain. For fleets servicing their vehicles in-house, technicians used to working on Ford and GM vans got lost working on turbodiesel engines. Also, the parts were available only from selling dealers,” he said, adding to their cost. “In addition, the van’s hefty purchase prices, often running well into the $40,000 range, have now also given way to disappointing resale values.” All of these factors have the Floridabased fleet manager fully researching Ford’s Transit Connect van, a vehicle he’s been studying for quite some time. “It could work,” he said about the Transit Connect. “But I have to live with the choices I make for many years after. As an industry, we need three to four years’ real use (proven road experience) before we can say whether it actually helped or not.” Compared to E-Series Ford vans, with a proven track record that has allowed his fleet to operate them for “well over 300,000 miles, 15 years-plus,” the Transit Connect is still a “whole new vehicle,” in his estimation. SOURCES
Some fleets that purchased diesels to boost fuel economy, are now contemplat-
• Keith Potter, public works supervisor, City of South San Francisco. E-mail: keith.potter@ssf.net • John Alley, former director, fleet services division, City of San Diego.
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Educational sessions that provide practical advice from those who face the same everyday challenges as you. • REPORT BACK TO WORK WITH TACTICS TO IMPROVE FLEET PERFORMANCE • TRANSFORM YOUR TRACK RECORD • EARN A CERTIFICATE OF COMPLETION
Seattle’s fleet team includes (l-r) Nanci Lien, fleet administration manager; Ken Bailey, vehicle maintenance director; Chris Wiley, Green Fleet coordinator; and Dave Seavey, Fleet Services director.
SEATTLE NAMED NO. 1 GOVERNMENT
GREEN FLEET Use of alternative fuels and advanced technology vehicles, as well as fuel reduction strategies and a Green Fleet coordinator, are some reasons the City of Seattle was recognized as the No. 1 Government Green Fleet in North America. BY CHRIS WILEY
June 6-8, 2011
San Diego Convention Center San Diego, CA
To register, visit www.GovFleetExpo.com or call 800-576-8788 30
Government Fleet
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T
he City of Seattle recently earned the distinction of being selected as the No. 1 Government Green Fleet in North America, announced at the Green Fleet Conference in October 2010. A total of 40 government fleets were recognized. The City’s Green Fleet program was recognized for its excellent integration of alternative fuels into existing operations and comprehensive examination of where and how petroleum reduction policies and procedures could impact the fleet.
“The fleets in the contest are among the best in the country, and they all have a measurable and real commitment to greening and sustainability. To be the No. 1 fleet shows a superior effort to green the fleet from top to bottom,” said Rhea Courtney Bozic of Clean Fuels Consulting, one of the contest judges.
IMPLEMENTING ALTERNATIVE FUELS Seattle was an early adopter of biodiesel and compressed natural gas (CNG) and is currently negotiating a long-term con-
January/February 2011
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Pictured above is one of the City of Seattle’s 12 diesel hybrid-electric medium-duty trucks.
tract for more than 1 million annual gallons of B-20 biodiesel derived from waste vegetable oil. The Environmental Protection Agency (EPA) has identified waste vegetable oil biodiesel as the lowest carbon-intense transportation fuel for diesel vehicles. The City is also investing in using electricity as a transportation fuel, a viable, low-carbon option for fleet operations.
UTILIZING ADVANCED TECHNOLOGY VEHICLES Seattle operates 569 gas/electric hybrid vehicles and 12 diesel/electric medium-duty work trucks. The City is also currently installing the charging infrastructure to support the largest municipal all-electric motor pool fleet, which will consist of 26 Nissan Leaf vehicles. In addition, electric drivetrains are used in material handling equipment, campus maintenance equipment, utility meter reading, and parking enforcement.
STANDARDIZING FUEL REDUCTION POLICIES The City’s Green Fleet Action Plan has guided fleet decisions since 2003. The City also has operational policies — idling, downsizing, right-sizing, and weight limitations — that set standards for fleet size and operator expectations. These policies and plans have resulted in the reduction of more than 100,000 gallons of fuel in four of the City’s largest departments since 2008.
INCREASING OPERATIONAL EFFICIENCIES One of the unique features of the City’s Green Fleet program is that the Green Fleet coordinator helps City departments
You’ll leave every session with WHERE IN THE WORLD City of Seattle, Wash.
• REAL BUSINESS PLANS
Population: 617,334 (2009 Census) Size: 142.5 sq. mi. Incorporated: 1869 Nicknames: The Emerald City, Seatown, Rain City, Jet City, Gateway to Alaska, Gateway to The Pacific, Queen City
• SPREADSHEETS USED BY FLEET MANAGERS • POLICY AND PROCEDURE MANUALS
evaluate how to deliver services more efficiently. Analyzing how a department delivers service provides great opportunities for fuel reduction, downsizing, and right-sizing of the fleet.
• TEMPLATES all on a convenient flash drive.
PROMOTING EDUCATION AND OUTREACH Information exchange is the hallmark of any successful program and to ensure employees stay informed, the City publishes a semi-annual Green Fleet newsletter and holds bi-monthly departmental fleet coordinator meetings. Fleet coordinators are representatives of the six largest City departments and are tasked with keeping departmental staff knowledgeable about Green Fleet efforts. For the complete list of the 40 government green fleets recognized, go to www.government-fleet.com and search “green fleet.” ABOUT THE AUTHOR Chris Wiley is Green Fleet coordinator for the City of Seattle. He can be reached at Chris.Wiley@ seattle.gov.
June 6 6-8, 8 20 2011
San Diego Convention Center San Diego, CA
To register, visit www.GovFleetExpo.com or call 800-576-8788
Government Fleet
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GF0111gfx_vert02.indd 1
January/February 2011
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STATE OF GEORGIA SAVES MORE THAN $500K BY REDUCING FLEET EXPENSES
W
ith approximately 21,000 vehicles in its fleet, the State of Georgia operates one of the largest government fleets in the country. As such, the State must constantly reas-
AT A GLANCE Benefits of the State of Georgia’s partnership with its fleet management company include: • A 19-percent reduction in monthly administrative costs from $5.95 to $4.82 per vehicle. • Up to 40-percent discounts for state agencies choosing to use National account versus local vendors. • A savings of $330,000 based on “field adjustments.” • A reduced monthly fee. 32
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sess fleet policies, procedures, and vendor contracts in an effort to stay up-todate on the best and most cost-effective programs and partnerships available. Each of the 161 State agencies is responsible for the care of the State vehicles assigned to them, which include sedans, pickup trucks, police units, fi re trucks, ambulances, tractor-trailers, and other highly specialized vehicles. Approximately 143 State agencies utilize fleets that range from one vehicle to 4,500. The agencies with larger fleets include the Georgia Department of Transportation, Department of Corrections, and the 36 colleges and universities under the title of Board of Regents. While State employees drive fleet ve-
After moving one-third of its 21,000-vehicle fleet to a statewide contract with Automotive Resources International (ARI), the State of Georgia has seen its administrative, repair, and maintenance costs decrease. BY CHERYL KNIGHT hicles to do their jobs, vehicles are also occasionally provided to non-profit entities and their employees.
FLEET MANAGEMENT PARTNERSHIP LEADS TO SIGNIFICANT SAVINGS After implementing several losscontrol measures in 2009, the State’s Department of Administrative Services’ (DOAS) Office of Fleet Management (OFM) sought to further reduce costs, this time in the area of vehicle repair. These initiatives stemmed from the OFM’s departmental mission to house and utilize data to drive down the cost of maintaining its fleet. “Realizing that everyone is strug-
January/February 2011
12/30/10 2:34:09 PM GF0111audit.indd 1
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EXPENSE MANAGEMENT WHERE IN THE WORLD State of Georgia Population: 9,829,211 (2009 est. Census) Size: 59,425 sq. mi. Incorporated: 1870 Trivia: Stone Mountain, near Atlanta, is one of the largest single masses of exposed granite in the world.
gling with budget problems, the difficult task is to promote investment. The key is not the expense, but rather the return on investment,” said Ed Finnegan, director, Office of Fleet Management for the State of Georgia. One such State investment included signing up with fleet management company Automotive Resources International (ARI). While the partnership led to cost savings initially, the DOAS/ OFM made the decision to renegotiate its contract to better mesh the programs offered by ARI with the needs of the State agencies. The new ARI agreement is now a “statewide contract,” leading to a savings of thousands of dollars for agencies involved in writing bid specifications and managing evaluation processes associated with initiating RFPs, RFIs, and RFQs. And because the State self insures and has an in-house claims office for all auto exposures, the claims handling section and the subrogation program were excluded from the new agreement.
GEORGIA EXPANDS FLEET MANAGEMENT PARTNERSHIP TO ADDITIONAL VEHICLES The new need-specific partnership between the State and ARI has led to approximately one-third of the State’s vehicles participating in the program. “The program has expanded considerably this year, and we are presently working with ARI to push this program out to other government entities,” Finnegan said. “Several states currently have expressed interest in piggybacking off of our contract, and we welcome those discussions.” Benefits of the new partnership include: 34
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“Realizing that everyone is struggling with budget problems, the difficult task is to promote investment. The key is not the expense, but rather the return on investment,” said Ed Finnegan, director, Office of Fleet Management for the State of Georgia. The State of Georgia launches its new vehicle management program, ARI insights, this year.
The State operates approximately 21,000 vehicles, which include police units such as this patrol vehicle.
• A reduction in monthly administrative costs from $5.95 to $4.82 per vehicle (a 19 percent reduction). This reduced rate would save a fleet with 1,200 vehicles about $16,272 annually just in monthly management expenses. • ARI now offers even deeper discounts of up to 40 percent for state agencies choosing to use National account versus local vendors (e.g., Goodyear, Firestone, Pep Boys, etc.). • A savings of $330,000 based on the “field adjustments” made by ARI CSE technicians in conjunction with OFM employees. • A reduced monthly fee brings the savings to the agencies in “hard costs” to nearly a half million dollars. To further minimize fleet costs, Finnegan relies on his in-house partnerships, including the DOAS’ Risk, Purchasing, and Surplus divisions. He also advocates an “enterprise approach” to the vehicles bought, the way they are maintained, and the training of the drivers. “In our operation, the money supporting all of those programs comes from the same source. I would suggest there be a higher awareness of the sav-
ings that are available when these components work together,” he said. “Purchasing provides vehicles that are fuel efficient and safe. Risk trains the drivers in safety procedures. Fleet maintains the vehicles. Surplus gets a higher return due to the condition of the salvage. Fewer accidents, less downtime, fewer injuries, safer workforce, less premium, lower expenses. They all connect.” This calendar year offers OFM great opportunities, including the new launch of ARI insights, the State’s new vehicle management program. While separate from the maintenance program, it offers the same expert support and tremendously upgrades the State’s capability to capture and push out meaningful data. SOURCE Ed Finnegan, director, Office of Fleet Management for the State of Georgia. E-mail: Ed.Finnegan@doas.ga.gov
January/February 2011
12/30/10 2:34:15 PM
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You can feel confident that within our magazines, websites and trade shows, Bobit Business Media is doing our share to maintain a “green” working environment. As individuals and as a company, we are dedicated to maintaining green initiatives and strive to be good citizens of this planet. Finding new and innovative ways to reduce our carbon footprint is always a priority for Bobit Business Media.
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GF01_Georgia.indd 35 GF0111recycle.indd 1
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The Town of Castle Rock, Colo., provides everything from base preventive maintenance to complex repairs, new installs, parts, and more.
TOWN OF CASTLE ROCK FLEET EXCELS IN CUSTOMER SERVICE Through use of its fleet software program, fleet advisory committee, and support of qualified staff members, the Town of Castle Rock, Colo., has maintained a 95-percent customer satisfaction rating.
T
he Town of Castle Rock, Colo., Fleet Services Division is a model in fleet management and operations. As a full-service municipality, the Town provides its 46,000 residents with general government services including community relations, facilities and risk management, finance, human resources, GIS-mapping, innovation & technology, and municipal court. Castle Rock’s attorney, clerk, and manager offices also provide general government services. The Town’s Fleet Services Division is responsible for keeping it all running, or “Keeping Castle Rock on the move,” as
Fleet Superintendent Todd Richardson describes it. With a staff of six, including Richardson, the Fleet Services Division provides a one-stop facility for vehicle and equipment maintenance, repair, and asset management of the 337 owned or leased vehicles. “We provide it all,” Richardson said. “Vehicle maintenance — everything from base preventive maintenance to complex repairs, new installs, parts, vehicle specifications, vehicle replacement and disposal, purchasing, billing, titles, and registrations.”
AT A GLANCE
CUSTOMER SERVICE KEY TO FLEET’S SUCCESS
Through use of the following, the Town of Castle Rock, Colo., has continued to exceed customer expectations: • Integration of a fleet management software program. • ASE-certified, qualified technicians. • Fleet advisory committee.
Customer service is one of the highest priorities for the Castle Rock Fleet Services Division and one reason for its success. “We base customer satisfaction on feedback received on a service and repair survey. The survey is placed in each unit after any repair or preventive main-
36
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tenance is completed,” Richardson said. The survey consists of four questions on a graded scale of one to 10, based on overall performance and customer satisfaction. The goal is a 90-percent customer satisfaction rate. “We maintained a 95-percent or greater rating over the past 12 months,” noted Richardson.
WHERE IN THE WORLD City of Castle Rock, Colo. Population: 44,639 (2008 Census) Size: 31.6 sq. mi. Founded: 1874 Trivia: One of the original homesteaders, Jeremiah Gould, owned 160 acres to the south of “The Rock.” At that time, the community consisted of just a few shacks for prospectors, quarry workers, and other hired hands.
January/February 2011
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Paul Colell (above) is the parts room manager as well as the Town’s software system administrator.
Another customer service tool is the Fleet Advisory Committee. The committee includes one representative from each town department and meets quarterly. The committee has two purposes: provide performance feedback to the Fleet Services division and help make policy decisions concerning the Town’s fleet. The division’s success is also attributed to the people on the team, Richardson explained. “We have a great team — everyone understands our goals. We have excellent technicians — Chad Bednar, Rian Snowbarger, and Mike McKevly all have ASE certifications and years of mechanical experience. Jorge Chavez, fleet supervisor, keeps shop operations moving doing everything from scheduling to repair work and training. Paul Colell manages the parts room and is our software system administrator.”
Todd Richardson displays a mini excavator used by the utilities department for water line maintenance. This is one piece of equipment for which the Town provides all maintenance and repairs.
(Above) Rian Snowbarger, fleet technician, is shown providing preventive maintenance on one of the Town’s fleet units.
For 2010 and beyond, the team continues to look for ways to improve customer service, efficiency, and overall fleet operations. “If we have goals that challenge us, we continue to get better and will provide the best possible service to our internal customers and to the citizens of Castle Rock,” said Richardson.
FLEET MANAGEMENT SOFTWARE SYSTEM KEEPS TRACK OF FLEET Castle Rock Fleet Services uses a stateof-the-art automated fleet management software system that tracks everything — technician productivity, preventive maintenance, vehicle downtime, and part-fill rates. In addition to tracking daily operational metrics, the system assists with vehicle replacement, assigning a replacement score to each vehicle based on mileage, maintenance and repair cost, and use type. “Our fleet software helps us with vehicle replacement decisions. Once the vehicle meets our replacement criteria, it enters a review process to determine if the vehicle should be replaced, retained for limited use, or if the vehicle’s lifecycle should be extended,” Richardson explained. “The overall goal is to replace
vehicles at the lowest lifecycle cost, before operating costs exceed vehicle capital. Our software system helps us with those decisions and reinforces our replacement decisions because they are based on a formula — not just mileage or years.”
FLEET OPERATION EARNS INDUSTRY ACCOLADES Castle Rock Fleet Services is a successful fleet operation, according to Richardson. The division received the American Public Works Association (APWA) award for the Best Fleet Management and Operations in 2006 and 2009 from the Colorado Chapter. The group also received national recognition as one of the 2008 “100 Best Fleets” in North America. Fleet Services saw a “Green Fleet” resolution passed by the Town Council in 2008. The division also developed and implemented a vehicle replacement program and vehicle use and operation policy. In addition, the fleet team initiated a Fleet Advisory Committee and maintained a 95-percent or higher vehicle availability rate since 2006. In 2009 and 2010, the Fleet Services Division attained the ASE Blue Seal of Excellence. Richardson and Colell earned the designation of Certified Public Fleet Professional (CPFP) from the American Public Works Association. Additional significant accomplishments in 2009 included purchasing two compressed natural gas (CNG) transit buses for the Town transit system. SOURCE
The Town of Castle Rock was named one of the “100 Best Fleets” in 2008.
Todd Richardson, CPFP, fleet superintendent, Town of Castle Rock, Colo. E-mail: trichardson@crgov.com
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VENTURA USES TELEMATICS & GPS TO IMPROVE FLEET EFFICIENCY
After implementing GPS and vehicle diagnostic technology on several fleet vehicles, the California city improved fuel economy by 10 percent, reduced idling time, and improved productivity and routing for customer service. BY CHERYL KNIGHT
L
ocated between Southern California cities Malibu and Santa Barbara on the Pacific Ocean, the City of Ventura provides a wide range of services to more than 109,000 residents. The City’s operating philosophy not only embraces cost efficiencies, but also focuses on sustainability efforts. In 2007, Ventura’s City Council adopted the Green Initiative, the first of many steps toward the City’s goal of becoming a national model for sustainability. Since its adoption, the City has completed a Greenhouse Gas Inventory, as well as joined the Sierra Club Cool Cities Program and ICLEI Local Governments for Sustainability (an association of more than 1,200 local government Members who are committed to sustainable development). As part of its green initiative to become more environmentally friendly, the City partnered with Alert Communications in 2008 on a pilot program aimed at increasing fuel efficiency and reducing exhaust emissions in city vehicles. The City mounted specially equipped Networkfleet global
AT A GLANCE Through the use of telematics, the City of Ventura, Calif.: • Had four pilot vehicles use 30-percent less fuel compared to the same time period the year before. • Saved $10,000 per year in fuel and maintenance costs in the City’s Water Department. • Increased routing efficiency. 38
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positioning system (GPS) units it purchased from Alert Communications to diagnostic ports in seven of its fleet vehicles. The Networkfleet device is connected to the Vehicle Harness connector in each vehicle. In addition to their remote mapping feature, the Web-based Networkfleet GPS units quickly pinpoint vehicles with excessive speeds or idle times, report potential diagnostic problems in vehicles, improve efficient routing of services to the community, and provide mileage/hour information that is used to notify users when vehicles are due for normal maintenance, thus reducing repair costs and vehicle downtime. These technologies help the City meet its Safe Driving Policy, Fuel Conservation Plan, preventive maintenance schedule, noidle policy, and the City’s green initiatives to protect Ventura’s environment. The City operates a 425-vehicle fleet composed of a wide range of models, including Chevrolet, Ford, Dodge, Toyota, International, Sterling, Freightliner, Caterpillar, Onan, John Deere, Toro, Kubota models; BMW motorcycles; and Seagraves and Pierce fire apparatus. The City’s Public Works, Police, and Fire departments utilize vehicles to service the public. Fleet Services’ onsite garage maintains all city vehicles and equipment and maintains fueling sites.
PILOT TEST RESULTS IN IMPROVED PERFORMANCE The two-month pilot resulted in impressive
savings, including four vehicles using 30-percent less fuel compared to the same time period the year before. One vehicle used 50-percent less fuel. “This is a great tool that complements operational efficiencies and the safety of employees,” said Mary Joyce Ivers, CPFP, fleet and facilities manager in the City’s Public Works department. “The maintenance alerts help notify the Fleet Maintenance supervisor prior to any major repairs or mechanical failures.” Fleet Services’ mission “is to provide all City departments with safe, reliable, environmentally friendly vehicles and equipment at economic and competitive rental rates and to provide all City departments and the public with the highest level of service,” Ivers said. Networkfleet can be set up in some states that would eliminate the need to have vehicles physically smog-tested. It also provides information on the most efficient routes for delivery of the City’s Public Works services to the community. One example of more efficient routing involves the pothole repair truck being able to plan its daily routes to maximize the number of pothole repairs in a day. “We have been so pleased to use the Networkfleet GPS system to fulfill our commitment to be leaner and greener in Ventura,” Ivers said. “The system has given us a technological advantage in this regard, and considering the fuel
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WHERE IN THE WORLD City of Ventura, Calif.
The Networkfleet GPS system helps the City fulfill its sustainabilty commitment.
savings so far, the Networkfleet GPS system more than pays for itself.” Networkfleet provides information on efficient
UNITS EXPANDED TO ADDITIONAL VEHICLES After the pilot program’s success, the City mounted eight more units in the Public Works department’s water distribution trucks, one pavement pothole truck, and City waste water vehicles. Ivers said the City’s fire, building, and Safety and Public Works Construction departments also are considering mounting units in their inspection vehicles. Currently, vehicles utilizing the GPS and diagnostic system generate a 10percent mpg increase.
delivery routes for the Public Works dept.
“In the Water department alone, we’re saving $10,000 per year in fuel and maintenance costs,” Ivers pointed out. “For waste water vehicles, it could be up to $1,200 per year, per vehicle because of better efficiency of knowing where they are going.” While the drivers were initially concerned about “Big Brother,” it was explained that the purpose was to provide information to improve the City’s route efficiency, gather GPS data for filling potholes, and provide workgroup locations so the supervisor could send the closest
Population: 109,946 (2009 Census) Size: 32.7 sq. mi. Incorporated: 1866 Trivia: San Buenaventura was founded in 1782 by Father Junipero Serra as the ninth of the California missions. Named after the Italian St. Bonaventure, the City’s nickname is the “city of good fortune.”
employee to a call for service. Ivers communicated the initial pilot test and associated benefits to the drivers via a memo sent on behalf of the supervisors. Based on the success of the pilot program and additional rollout, Ivers hopes to expand Networkfleet to more vehicles as they come up for replacement. SOURCE Mary Joyce Ivers, CPFP, fleet and facilities manager, City of Ventura, Calif. E-mail: mjivers@ci.ventura.ca.us
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MAINTAINING PAVEMENT & ASPHALT EQUIPMENT AT A GLANCE To ensure proper maintenance of asphalt and pavement equipment, fleet managers should: • Keep machines clean and properly serviced. • Monitor wear parts. • Ensure an inventory of key parts are on hand. • Provide proper equipment use training for operators and mechanics. 40
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Proper maintenance, training, and planned service intervals are necessary to ensure proper care for pavement and asphalt equipment. BY STEPHEN BENNETT
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K
eep it clean. That’s the first and last rule in maintaining pavers, manufacturers say, though there are a few other principles that should be followed, too. (See sidebar, “Common Mistakes When Maintaining Asphalt Pavers.”) “If you keep the machine clean, the rest of it’s pretty easy,” said Bryce Davis Jr., general sales manager, North America for paver manufacturer LeeBoy. However, like many things, keeping a paver clean is often easier said than done. “It’s the biggest hurdle to master,” Davis said. Crews should take time at the end of the day to scrape asphalt from the machine, he advised. A convenient time is while waiting for a truck to pick up the paver, Davis said. Being conscientious about the end-of-day cleaning pays off. “If asphalt gets hard, it’s five times harder to get it off the machine — it gets like the road surface.” Attentively following the basic maintenance principles is smart for many reasons, especially financial. “If you’re not maintaining the machine,” Davis said, “it’s probably costing you triple to operate. You’ll probably be replacing it in a shorter time — at a faster rate — for a worse return on investment.”
KEEPING PAVING EQUIPMENT CLEAN & MAINTAINED Typically, a paving machine will require only minor maintenance work up to the 3,000-hour mark, Davis said. At 3,000 hours, it will usually be due for a major overhaul, including new pumps, motors, etc. Fleets keep LeeBoy pavers in service for different durations, Davis said. “Some customers keep them till there are 7,000, 8,000, or 9,000 hours on them. Some customers trade them in at 3,000 hours.” Users of LeeBoy pavers, including government fleets, tend to purchase rather than lease the machines, because they usually are used steadily for patching as well as putting down new paving, Davis noted. Mark Bolick, parts and service manager for LeeBoy, stressed the importance of lubricating the machine for two reasons. It makes cleaning off asphalt easier and it eases the play of the machines’ many moving parts. “We have a material that sets up when it gets cold,” Bolick said of asphalt. “When it’s hot, it doesn’t stick at all. But when it gets cold, we have to use some form of a release agent to keep the asphalt from sticking to the metal when it gets cold. Our manual cites [the need for] a cleaning solution or release agent.” That makes the job of scraping off asphalt easier, Bolick said. And the machine should be lubricated after the end-of-day cleaning and again in the morning, before use, for good measure. “It’s just like coating a cooking pan with oil,” Bolick said. Service intervals are based on hours of operation. Every 10 hours or daily, Bolick said, augers should be greased, because they’re in asphalt all the time. Flat screws should be greased weekly. “They’ll tell you when they need to be greased,” Bolick said of the flat screws, “because they’ll get hard to turn.” He added that “a good operator will hit the bad spots daily and weekly will put a shot or two in the depth screws.” At the back of the machine, the depth screws control the angle of a plate that in turn controls the depth of the material. The constant turning requires regular lubricating to maintain reliable operation. Bolick also said it’s important to use the appropriate heat temperature grease in the
COMMON MISTAKES WHEN MAINTAINING ASPHALT PAVERS 1. Failing to clean the machine at the end of each day’s use. 2. Delaying lubrication or not doing it at all. 3. Poor screed plate adjustment, which will affect mat quality and cause the screed plate to wear prematurely. 4. Putting off parts service or taking shortcuts, including failing to replace parts that show wear, as well as trying to squeeze “one more job” out of a part. 5. Not maintaining thickness control screws — screw assemblies lose precision as they wear. 6. Not following normal service for engine and systems. 7. Lack of training for crew and mechanics: The crew must understand how to use a paver properly so that they do not overload the machine, or operate it under extreme conditions regularly. An abused machine wears out faster. 8. Mechanics must understand how the crew uses the paver so they can anticipate and inspect parts that are liable to need replacing based on “normal” operation. They should also know how to operate the paver. That knowledge helps the mechanic do a better job of troubleshooting and calibrating many parts for optimal performance.
bearings. “That keeps everything working correctly,” Bolick said. “On our machines we’ve got extension slides that have chrome rods,” Bolick pointed out. “You want to keep those chrome rods clean and free of dirt and debris so they slide in and out freely.”
WORKING WITH ASPHALT EQUIPMENT What about the machines used for demolishing what the pavers put down? P.J. Mead, customer service manager for Asphalt Zipper, had some tips for fleet users, some that mirror the care one must take of pavers, and some that don’t. There are three different aspects to caring for the type of machine that Asphalt Zipper manufactures, Mead said: scheduled, periodic maintenance; replacement of parts that wear; and correct operation to avoid damage. A typical element of scheduled periodic maintenance is the replacing of oil, fuel, and air filters — and most fleet operations have that well in hand, Mead said. “Even though they have to call up and order those replacement parts, it’s usually not an emergency,” he said. Fleet maintenance shops often keep a service kit on the shelf, and Mead pointed out that some filters are common to other equipment as well. The second aspect of maintaining a demolition machine, such as Asphalt Zipper’s, is the monitoring of “wear parts,” especially the carbide-tipped cutting tools. “Normally, there is going to wear because of friction during contact with the ground, pavement and so on,” Mead said. “Unlike periodic maintenance where parts replacement is somewhat predictable, wear of carbide bits depends how hard the material is that you’re cutting.” Typically, the bits wear down at an even rate, especially when used in softer asphalt that is two or three inches deep,” Mead said. In those circumstances, an operator can calculate what the Government Fleet
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OFF-ROAD wear rate is going to be. The bits may last through 40 hours of operation, Mead said. However, “every road and every street is a little bit different,” he cautioned. “You’ll be going down the street and all of a sudden, you’re in 10 inches of hard asphalt and your bits start to wear four and five times as fast as you had planned on. Or you get into a base that has a lot of rocks and you start to break bits.”
If a fleet does not make a practice of stocking a large inventory of bits, Mead said, “then all of a sudden they can run out and the project grinds to a halt.” Fleets usually keep some backup bits on the shelf — but not always. “Many times we get panicked orders for those,” Mead said, in which the caller announces, “I’m in the middle of a big job. The guys ran out of bits. I’ve got to have them tomorrow.”
Think the grass is greener somewhere else?
According to Mead, “These are carbide-tipped cutting tools. A box of them weighs 40 lbs. You start shipping those overnight by FedEx and you’re looking at a $200 shipping charge for every box.” Nobody wants to incur that cost — or the wrath that might come with it. “The operator on the job is supposed to stop every once in a while to see how the bits are wearing,” Mead said. Changing one bit takes about one minute, he said. Finally, because the machine is a piece of demolition equipment pulverizing asphalt, there are many forces, stresses, and vibrations to account for. When the machine starts tearing up asphalt, “it is a violent process,” Mead said. Novices on their first training day tend to be surprised by that. “People involuntarily take one step back and say, ‘I don’t know about this.’ They’re very hesitant. But by the end of a week they’re very confident with it and they know exactly what they’re supposed to do with it. It becomes second nature.”
TRAINING IS KEY People who haven’t been trained have no business at the controls, Mead said. If they don’t operate it correctly, the forces, stresses, and vibrations can cause components to fail or result in structural damage. The best way to avoid that outcome is to strictly limit operation to crew members who have been properly trained,
It just might be Search for jobs in your field at www.fleetjobfinder.com
Technicians must ensure augers are greased and equipment properly maintained. 42
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Mead said, which many fleets fail to do. “I see that very, very often, especially with very large fleets,” Mead said. Often, such a fleet will have a half-dozen crew members fully trained by the factory sales person to use the machine, he said. The next group of operators is trained by someone from the first group. “Their training is something less; it doesn’t have the same quality,” Mead noted. And beyond that, there is often a breakdown of formal training that can lead to a breakdown of the machine. So-called “training” at that point might consist of little more than someone saying, “Here’s the ignition key — go for it,” Mead said. That method leads to damage that can be expensive, indeed. Mead described an incident last summer involving an owner of a new machine. The owner had multiple crews. “One crew was trained to use the machine,” Mead recalled. “They passed it on to another crew that had never had any training. They went out, and in a matter of hours destroyed the gear box, which is
Typically, a paving machine will require only minor maintenance work up to the 3,000-hour mark. Once the equipment reaches 3,000 hours of operation, it is usually due for a major overhaul, including new pumps, motors, etc.
a $15,000 piece of equipment. The owner called me up and he was pretty irate.” However, paperwork on file documented the individuals who had been trained, including signatures, Mead said. According to Mead, he has arrived at the scene of a damaged machine more than once and asked, “How did this happen?” A frequent response is, “Oh, we didn’t do that. It was the other crew.” Mead noted, “No crew ever breaks an Asphalt Zipper — it’s always the other crew that did it.” He suggested an effective way to avoid
such outcomes. Users that have one machine can assign responsibility for it to one person. When the machine is going to be used, that person goes with it, and makes sure it is used and serviced, by the book. Usually such fleets have minimal surprise maintenance costs, Mead said. SOURCES • Bryce Davis Jr., general sales manager, North America, for LeeBoy. E-mail bdavis@LeeBoy.com • Mark Bolick, parts and service manager for LeeBoy. E-mail MBolick@leeboy.com • P.J. Mead, customer service manager for Asphalt Zipper. E-mail pjmead@asphaltzipper.com
INVERS Mobility Solutions • 604.742.1145 • 866.308.0091
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NEW PRODUCTS CATERPILLAR 259B3 COMPACT TRACK LOADER Caterpillar’s 259B3 compact track loader (CTL) combines a smallframe CTL platform with a Cat C3.4T DIT engine to provide high breakout forces and strong auxiliary hydraulic performance. Features include an independent, fully suspended steel undercarriage, steel-embedded rubber tracks, 120 inches of lift height, powerful hydraulics, and a refined operator’s station. At 35-percent tipping load, the 259B3’s rated operating capacity is 2,065 lbs., and 2,950 lbs. at 50-percent tipping load. With the optional counterweight, the operating capacity increases to 3,000 lbs. The 259B3’s engine is rated at 71 net hp and can operate at part throttle to reduce fuel consumption and sound levels. Its planetary final drives are powered by two heavy-duty, two-speed hydraulic The 259B3 (shown here with grapple rake) has an engine motors, which drive single-piece steel sprockets. The model also rated at 71 net hp. features low-effort pilot-control joysticks, a hydraulic-oil cooler, standard hand and foot throttles, and an anti-stall system. A variety of the 259B3’s features make for easy maintenance, including a swinging rear door, a tilt-up cooling package and cab, colorcoded electrical wiring, and a Cat S.O.S. sampling valve. WWW.CAT.COM
The WH48A features a 20 hp Kawasaki V-Twin engine with a 48-inch floating deck hydro drive. The TS210 is shown (l-r) in drop, standard, and rise positions.
TELESWIVEL 210 HITCH TeleSwivel hitches extend out from the vehicle and move side-to-side, increasing the “target zone” for connecting a truck and a trailer up to 25 times. The TeleSwivel 210 (TS210) is lighter and more rugged than its predecessor and features a top-pull locking pin handle and high strength abrasion-resistant steel construction. To achieve its level of corrosion resistance, the TS210 assembly receives an auto ferritic coating process which is then co-cured with a final powder coat application. The new design also includes optional height-adjusting accessory probes and an accessory plate model to work with a variety of ball, pintle, and clevis hitches. Optional accessories also include a drop/rise attachment that comes with a standard ball hitch, capable of accommodating most industry-standard weight distribution heads. Available in standard probe, accessory plate, or drop hitch versions, the new TS210 design retains the 10,000-lbs. GTW Class IV rating of previous models. WWW.TELESWIVEL.COM 44
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JOHN DEERE WALK-BEHIND MOWERS John Deere’s new line of commercial walkbehind mowers for 2011 features six new models with gear or hydrostatic transmission in the 16-20 hp engine range. The gear models feature a seven-gauge fabricated deck with a running five-speed transmission that complements the 16 hp Kawasaki engine. These models are also equipped with flat-free front tires. The hydro models feature seven-gauge fabricated floating decks and easy-to-operate twin loop handle controls that feature front and rear index bars. Hydro models are equipped with either a 16 or 20 hp Kawasaki engine, as well as flat-free front tires. Models in the new lineup include the WG32A, WG36A, WG48A, WH36A, WH48A, and WH52A. WWW.DEERE.COM
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The man basket is made from heavy-duty steel.
GFX11-97.10 GFX1 GFX G FX X 1-9 -9 97 9 7.10 .10
Diversified Products’ Quick Attach Man Basket is specially designed for use on service cranes. The yoke-style basket features a universal mounting bracket for installation on a wide variety of service crane styles, and it provides a safer option for construction and utility work than using ladders or climbing on equipment. Diversified’s man basket is made from heavy-duty steel for withstanding tough jobsite conditions. The basket also provides improved access to equipment, and its design allows the unit to be stored on the service body. The full-sized floor is 30 inches wide by 30 inches deep, and the inward opening doors are designed to save space, promote easy entry, and provide additional worker safety. Further safety features are incorporated to help the man baskets meet or exceed ASME standard B30.23 for personnel lifting systems. These features include floor slots to drain water, as well as upset holes to prevent slippage. Additionally, each man basket contains a low-maintenance, high-capacity caliper brake. Options for the man baskets include a step for added convenience, a stand for installation on uneven ground or large cranes, and a CSA-approved upper basket enclosure. WWW.DIVERSIFIEDPRODUCT.COM Government Fleet
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January/February 2011
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DIVERSIFIED PRODUCTS’ QUICK ATTACH MAN BASKET
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PRODUCT SHOWCASE
ASPHALT EQUIPMENT LEEBOY 8816B ASPHALT PAVER The 25,000-lb. LeeBoy 8816B features a Tier 3 130 hp Cummins turbodiesel engine with an 8- to 15.5-foot paving width and 10-ton receiving hopper capacity. It The LeeBoy 8816 features a Tier 3 130 hp Cummins turbodiesel engine. also features dual operator stations with slide-out caCATERPILLAR AP555E ASPHALT PAVER pability, as well as all CAN Caterpillar’s AP555E Asphalt Paver incorporates a compact, lighter design with a Cat Bus and Plus 1-controlled 4.4 turbocharged diesel engine, providing 142 hp of power with ACERT technology, paver functions, including which is compliant with the U.S. steering. Two independent EPA Tier 3 emissions regulations under-auger cut-off doors are governing off-road machines. included, as well as fail-safe Dual swing-out operating stations brakes with an anti-creep combined with tilting consoles function. and a low profile-designed coolThe 8816B’s heavy-duty ing system add increased forward heated and vibrating Legend visibility for the operator. The Screed System is powered AP555E also features a Mobil-trac by an on-board generator undercarriage, belt-driven generaand offers a choice of elector, and a material handling systric or propane-fueled heattem with independent auger and The Caterpillar AP555E Asphalt Paver incorporates a ing systems; no flame, fuel, conveyor controls. compact, lighter design with Cat 4.4 turbocharged or fumes in the heating proThe Advisor Monitoring Sys- diesel engine. cess; and consistent tempertem (AMS) on the left operating ature control. The adjustable station provides an interactive interface that includes project planning calculators, screed system also features a start-up checklists, engine operating conditions, and fault codes for machine func10-percent sloping feature. tions. In addition, the AP555E can be equipped with the AS2252C screed with frontWWW.LEEBOY.COM mounted extenders and an operating weight of 35,290 lbs., or with the AS3251C screed that features rear-mounted extenders and an operating weight of 35,810 lbs. WWW.CAT.COM
ASPHALT ZIPPER
The 6-foot Asphalt Zipper is powered by a 203 hp Cummins diesel engine. 46
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Asphalt Zipper’s new 6-foot Asphalt Zipper features a new wheel loader reclaimer attachment in a 6-foot width. The new attachment retains the power and capability of a large reclaimer attachment and is powered by a 203 hp Cummins diesel engine with 695 lbs. of torque. It can work more than 6,000 square feet of 6-8 inch-deep asphalt per hour, with a total cutting depth of 12 inches. Some uses include full roads, patches, base stabilization, and utility trenches. The wheel loader reclaimer attachment mounts quickly and easily to the bucket of a loader and tows to the location on its own trailer, according to the manufacturer. WWW.ASPHALTZIPPER.COM
January/February 2011
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Navigate Your Fleet to Excellence Come to Government Fleet l Expo & Conference, f the only national event catering solely to all levels of public sector fleet management.
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12/30/10 2:38:12 PM 12/28/10 9:23:07 AM
By Mike Antich
PUBLIC FORUM
INCREASED CONCERN ABOUT STAFF BURN-OUT
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oday’s workplace environment for public sector employees is the perfect storm for staff “burn-out.” Every public sector fleet manager is all too familiar with downsizing — doing more with (substantially) less. More and more fleet managers cite staff burn-out as a growing concern. Staff burn-out is a term used to describe a state of mind brought on by longterm exhaustion, characterized by low employee morale and diminished work interest. For the first time since the early 1980s, many political subdivisions laid off employees in 2008-2010 to help close budget gaps. Many of these layoffs are multi-phased, with subsequent layoffs still slated to kick in during the 2011 calendar-year. Fleet managers are entrusted with managing an operation, but more importantly, managing people. For public sector fleet managers, employee management is becoming a major issue. In the past, public sector employees were accustomed to economic downturns impacting businesses, but not local government. However, as any government worker will tell you, this is not the case this time around, as employees are impacted by layoffs, forced furloughs, and across-the-board pay cuts. “It is harder to keep morale up with employees fearful for their jobs, no raises, and increased contributions from employees for medical insurance and related services. Stress levels are up, which affects productivity and time off from work in times when you need to get more out of your employees,” 48
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said Doug Weichman, director, Fleet Management Division for Palm Beach County, Fla.
VACANT POSITIONS REMAIN UNFILLED Many fleets have not filled vacancies since 2008 and expect this trend to continue. Fleets are also consolidating and reorganizing to strengthen core operations. At many fleet operations, additional services such as night shift and pickup/delivery of customer vehicles are things of the past. Most fleet departments have hiring freezes for technician vacancies. Often, when a position becomes vacant, no replacement is permitted. Also, if personnel quit or retire, those positions are often frozen. Remaining staff members are forced to work harder to maintain “normal” operations. What makes this environment more stressful is that fleets were already operating very lean even before these vacancies occurred, so it has put an extra strain on productivity. Stretched technician resources affect repair turn-around time. In addition, many fleets have eliminated overtime work — except for emergency situations. The one “silver lining” to this era of economic constraints is that public sector fleets are finding it somewhat easier to recruit or retain qualified technicians following the closure of many local automotive dealerships, which created a pool of unemployed qualified technicians. Of course, this only applies to fleets with the funding to hire technicians; not all have the funding to do so. In addi-
tion, this pool of technicians is likely to shrink as experienced technicians from closed dealerships are absorbed elsewhere within the economy.
AVOID STAFF BURN-OUT Is staff performance improvement a goal (or key performance indicator — KPI) of yours? A manager’s job is to keep his or her staff productive and maintain good morale. Job burn-out leaves once-enthusiastic technicians with low morale, feeling cynical, and ineffective. Avoiding staff burn-out needs you to call on your leadership skills to maintain an environment that fosters high employee productivity. But you can’t do it alone. Utilize the resources of your HR department, talk with other department heads, communicate with fleet manager peers, read management books, and search the Internet, which contains many useful articles on how to minimize staff burn-out. While management and individuals can cope with the symptoms of burn-out, the only way to truly prevent burn-out is through a combination of organizational change and education. Progressive organizations combat the threat of staff burnout through management development (training managers to cope with these situations) and engaging HR (and if money allows, external consultants) to assist in establishing new policies and practices in developing a supportive workplace. It is in everyone’s interest to do so — management, employees, and the constituents they serve. At some cities, fleet man-
agers have limited input when hiring new technicians. Fleet managers need to take charge of who is hired in their department. You need to work with your HR department to be involved in the posting. As the supervising manager, you need to be involved in determining the qualifications and be involved in the interview process. Hiring the right people is crucial. Hiring a single “bad apple” is all it takes to “spoil the barrel.” Develop programs that incentivize associates to advance their skill sets by striving for ASEcertification and taking advantage of training opportunities. Let your associates know you are receptive to new ideas to improve fleet operations. Encourage creativity and innovation. A great morale booster is getting recognition of your staff and department in the local newspaper. Learn who the reporter is in charge of covering what happens in the city. When something noteworthy happens in your department, call the local reporter to let him or her know. They are always looking for news stories to write about, so they will appreciate you taking the time to send them leads. When stories are published about your staff or department, route it to your management and elected officials. How are you coping with staff burn-out? Let’s use this forum to share among ourselves successful strategies to maintain staff morale and productivity. If you’ve been successful, we want to hear from you. Let me know what you think. mike.antich@bobit.com
January/February 2011
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ARI Strategic Consulting Team With exceptional insight into our partner’s vehicle usage, we helped this fleet support a corporate initiative.
L-R: Tracy King, Fleet Administrator; Joe Korn, Business Analyst; Elisa Durand, Assistant Manager, Environmental and Fuel Strategies
Partners at Work
For this education publisher, big, gas-guzzling vans are old school. When a long-time partner in education publishing made it a company-wide priority to reduce its carbon footprint, it turned to ARI for a custom fleet solution. Noting that education is evolving away from bulky hardcover textbooks in favor of DVDs and eLearning modules, ARI’s Strategic Consulting team suggested suitable alternative vehicles as well as stricter driver policies to lessen fuel consumption and reduce emissions. Average MPG improvements translated into $200,000 in fuel savings and a 581-ton reduction in CO2 emissions. Some might call it “writing the book on green fleets.” We call it, “partners at work.”
Read the full story and more at:
www.arifleet.com/partnersatwork
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