FLNA Fleet Michael Birk Sr. National Fleet Sustainability Manager
PepsiCo's Performance with Purpose‌
Corporate Vision: Become A Pre-eminent Green Company
Water
100
70 60
'99
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
80
60
25%
90
70
50
Electricity
100
kwh / Lb
BTU / Lb
Gal / Lb
33%
90
80
40
Natural Gas
100
45%
90
80
70
'99
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
60
'99
'00
'01
'02
'03
'04
'05
'06
'07 '08
'09
3
World Class Fleet
Reliability Provide safe, dependable vehicles for all our associates and the customers we share the roads with everyday
Sustainability
Capability
Preserve the environment and reduce green house gases while becoming one of the most fuel efficient fleets in America
Build a powerful team of fleet professionals who continue to provide World Class Service
7th Largest Fleet in North America‌
Route Trucks 13,300
Medium Duty 3,400
Trailers 3,800
Tractors 1,100
Todays Objective… Provide practical “How To” example of implementation technique and tools… Q: What is “Critical Mass” with an Alternative Fuel? A: When it becomes “The Fuel” of choice and the predominant fuel in a segment of the fleet. i.e. when most of your new vehicle purchases are the “alternative” fuel.
We Will Be Most Fuel-Efficient Fleet in America through People, Process, & Technology…
2012
2010
2008
2X MPG
EV
6-7%
MM Gal
46.1
45.6
46.7
47.8
CNG
8-10%
18%
50 46.3
2020
45.7
43.4
41.2
39
37
35
33
25
31
50% 29
27
25
23
‘18
‘19
‘20
Strategy Implemented
0 ‘04
‘05
‘06
‘07
‘08
‘09
‘10
‘11
‘12
‘13
‘14
‘15
‘16
‘17
Electric Box Trucks‌ Largest All-Electric Commercial Fleet in North America with 280 Vehicles by the End of 2013
$.30 per gal.
Reduces
CO2 by
75%
<75% GHG/mi
<89% $/mi
Why CNG…
How to implement NGV’s?
Its about………
Which Fuel Where? Equipment Fuel Maintenance Culture, Organization & Change Management
Business
People
How to figure out what works whereâ&#x20AC;Ś Segment your fleet and the fuel choices Fuel
Availability
Source
Renewable?
High mileage route, bulk & OTR
High
Import
NO
(baseline)
Gasoline
Cars, route trucks
High
Import
NO
(baseline)
Propane
route trucks
CNG
OTR tractors
Diesel
Electric Hydrogen Ethanol/E85 Biodiesel/B20
mid-mileage bulk
High
Domestic
NO
Low/Moderate
Domestic
Some
High
Domestic
Some
GHG/mi
Fuel $/mi
FL Application
LCC/ROI
Future cost down?
Notes
Short vs long term depends on annual miles and grant funding availability no funding requirements
TBD
Low
Domestic
TBD
Moderate
Domestic
YES
net GHG uncertain, cost neutral net GHG uncertain, cost neutral
bulk & OTR
Moderate
Domestic
YES
TBD
Low
Domestic
Some
DME/syn diesel
TBD
Low
Domestic
TBD
Application
Annual Miles
Diesel
Cost vs annual miles
currently still requires grant funding
Cars, route trucks
LNG
Whatâ&#x20AC;&#x2122;s important?
TBD
TBD
TBD
Gasoline Propane
Electric
TBD
CNG
TBD
TBD
LNG
requires significant development
Renewable/Domestic Domiciled vs. long-haul
less costly equipment
Hydrogen
?
Low Route Truck
Med High
?
Low Bulk Truck
Med High Low
Tractor
Med High
?
How to determine the economics… • Side-by-side model • Investment • Fuel • Maintenance CNG Side-By-Side
General # tractors Base Unit MPG, diesel eq. Engine Efficiency Factor Transmission efficiency Annual Miles/Unit Total Annual Miles
Inputs in yellow outputs/calculations in green
Diesel 100 7.0 1.0 1.0 100,000 10,000,000
CNG 100 6.0 0.95 0.90 100,000 10,000,000
Capital Investment Purchase Price ea- w/o incentives Incentives - portion of incremental $ Incentives - cash/rebate Incentives - Tax credit Garage Conversions Net Capital Price Book life, years
$100,000
$150,000
$0 $0 $0 $10,000,000 7
$1,000,000 $0 $1,000,000 $15,000,000 7
Fuel Fuel Price, $/gal (Bulk), GDE Annual Fuel Used, gallons DE Fuel cost/mi Annual Fuel $
$4.00 1,428,571 $0.571 $5,714,286
$2.00 1,666,667 $0.333 $3,333,333
Repair & Maintenance Annual PM, base tractor DEF Subtotal, R&M R&M, cost per mile
$206,878 $114,286 $321,163 $0.03212
$282,819 $0 $282,819 $0.02828
Other Fueling Frequency, x/wk Labor hrs/fueling event Labor rate, $/hr Subtotal, fueling labor
5.00 0 $25 $0.00
5.00 0.4 $25 $260,000.00
SUMMARY - Annual/per truck Fixed expense (depr) Fuel R&M Other
$1,428,571 $5,714,286 $321,163 $0
$2,142,857 $3,333,333 $282,819 $260,000
TOTAL annual
$7,464,021
$6,019,009
TOTAL per mi GHG Generation, mTons GHG g/mi/unit
• Maintenance & Garage conversion models • PM events • Frequency • Cost • Inside vs. outside labor
$0.75
$0.60
14528.6 1452.9
12063.3 1206.3
DIESEL
CNG Diesel Interval
100,000 Mile Look $ 50.00 /hr labor rate Extended Cost
QTY
Cost per event
Parts/Mat'l
Labor hrs
$ $ $ $ $ $ $ $ $ $ $ $ $
3.33 1.67 1.67 0.00 0.00 0.42 0.00 1.25 0.20 0.42 0.20 0.20 0.00
$213 $350 $175 $0 $0 $200 $0 $50 $1,800 $300 $250 $450 $0
$100 $200 $150 $0 $0 $0 $0 $0 $1,500 $200 $50 $250 $0
2.3 3.0 0.5 0.0 0.0 4.0 0.0 1.0 6.0 2.0 4.0 4.0 0.0
708.33 583.33 291.67 83.33 62.50 360.00 125.00 50.00 90.00 -
$ 2,354.17 total for above interval
CNG Interval
PM Task 30,000 60,000 60,000 n/a n/a 240,000 n/a 80,000 500,000 240,000 500,000 500,000 0
Safety Insp/Oil filter/top off Major PM/ LOF Fuel Filter Spark plug Fuel Tank Inspection Valve adjustment Coolant filter only DPF/Regen DPF/Cleaning SCR / DEF system 7th injector maintenance Transmission Fluid Coolant replacement 5410 Tractors / All WO including PM
18,000 36,000 36,000 72,000 36,000 72,000 n/a n/a n/a n/a n/a 306,000 0
Labor hrs
Parts/Mat'l
Cost per event
QTY
1.2 1.8 0.0 1.0 4.0 4.0 0.0 0.0 0.0 0.0 0.0 4.0 0.0
$150 $175 $0 $450 $30 $65 $0 $0 $0 $0 $0 $250 $0
$210 $265 $0 $500 $230 $265 $0 $0 $0 $0 $0 $450 $0
0 2.78 2.78 1.39 2.78 1.39 0.00 0 0 0 0 0.33 0.00
total for above interval:
Extended Cost
$ $ $ $ $ $ $ $ $ $ $ $ $
736.11 694.44 638.89 368.06 147.06 -
$
2,584.56
0.11 / mile $ 2,354.17 PM cost/ 100M miles $0.0235 PM cost / mile
PM MX Difference; CNG B/(W)
($0.0023)
$ 2,584.56 PM cost/100M miles $0.0258 PM cost / mile
Applicable to any alt fuel Understand the main drivers Look for biggest opportunity areas Align with all functions on the numbers
CNG – How to source CNG Fuel Our strategy is to pursue the anchor partner approach Don’t just sit and wait for fuel to come your way! Type
Pros
Cons
Type of Agreement
Public fuel station
•No Capital •No volume commitment •No Operating complexity
•Location •Performance •Pricing
Best Negotiated Price; volume tiers may be available.
Anchor Partner
•No Capital •Pricing •Distance •Performance •Royalty potential
•Volume Commitment
Take-or-Pay Cost +
•Distance •Performance •Pricing
•Operational Complexity •Capital
Internal Station
(gas + capital + ops+ profit)
Cost (gas + capital + ops & mx)
How to pursue stations: Anchor Partner Strategy – National RFP • Commitment for fuel volume over 5 or 7 years. • 14 potential sites for new stations • Issued to national & local fuel providers • Favorable Pricing, Station Performance, & Location • Competitive bidding • Awarded 7 stations for 2013
How to Manage the Change - People
• • • • • • • •
Engage drivers & technicians at site business reviews National Ops Meeting – Mgrs/Leaders Sign Boards National Calls – weekly, monthly Training: leveraged OEs and NGVI Site Prep – countdown readiness Resourcing • Dedicated national program leader • Dedicated national technical expert
Overcommunication! Invite & welcome people to challenge it
How to communicate â&#x20AC;&#x201C; poster board examples
Simple, visual Post in Driverâ&#x20AC;&#x2122;s rooms, hallways, etc.
How to ensure the sites are ready â&#x20AC;&#x201C; site Countdown/ checklist Lead
Task Name
Mi chael B.
CNG Ki ckoff (QBR)
Da vid
Loca l Deal ers hip identifica tion
Vol vo/Agility
Meet with Loca l Dea lers hip
Mi chael B.
Na tional or Regiona l OEM Fi eld Servi ce Conta cts identifi ed
Les ter W
Ma intenance Tra ining (Pla n & Execute)
19-May 26-May 2-Jun 9-Jun
At launch: On-site HQ project team representation
Tank ins pection Tra ini ng Engine Tra ining Jim J
PM interva l identifi ed
Jim J
Communi cate Roa d Side As s i s ta nce i nforma ti on
Jim J
Educa te s ite on flui d recommenda tions
Les ter W
PM Pa rts identi fied / ordered
Les ter W
CNG tool s
Mi chael B.
Tank Ins pection Deca l s
Mi chael B.
Provi de Site OE conta cts
Mi chael B.
Site join na tiona l relia bi lity ca ll
Jim J
PMI Method complete
Jim J
Wa rra nty Informa tion communica ted
Mi chael B.
Pa yl oa d / Ra nge identified a nd communica ted
Loca l tea m
Determine runs CNG tra ctors a re compa tibl e to
Hermes R
Ga ra ge a s s es s ment
Loca l tea m
Site a wa renes s communica tion - CNG Sa fety requirements
Les ter W
Shop fa cil ity wa rning s i gna ge
Loca l tea m
Order a ppropriate CNG s pecifi c fuel ca rds
Loca l tea m
Es ta blis h fuel protocol, prima ry, s econdary, i n-route
Les ter W
Provide Site with CNG Ma intena nce video
Mi chael B.
Provide Site with CNG Sa fety / Opera ti on Vi deo's
HQ/ Si te
Driver Sa fety / Emergency Procedure
Site
Ens ure Site Saftey Ma na ger is invol ved on CNG Project
High urgency and touch on any reliability or fuel issues (w/vendor support)
How to get a site ready â&#x20AC;&#x201C; Demo truck
2 Demo tractors Send to sites ahead of launch Practice & get comfortable with driving and fueling Leasing/Renting may be a viable option
How to Educate • Driver Round Tables/Meetings • Field Participation in Pilot Reviews & Conferences • Training/Familiarization Videos
CNG Fueling
Fueling Process Training Safety Overview
Natural Gas Vehicles A Closer Look at Safety
Fuel Properties Truck Safety Tank Design & Testing
How has it worked? CNG Sites 2013: 208 units = ~20% of fleet at 50% of locations
Beloit
Canton Killingly
Topeka Frankfort Rancho Cucamonga
Phoenix
Jonesboro Charlotte
Irving Dallas Casa Grande
Perry
Rosenberg
2013: 70% of new units are CNG
2014- :
80+%
Orlando
Is the Frito-Lay fleet at “ Critical Mass”
EV – close but not quite yet Propane – close but not quite yet CNG Class 8 – YES!
Business
People
Which Alt Fuel Where? Equipment Fuel Maintenance Culture, Organization & Change Management
â&#x20AC;˘ Save almost 3,000,000 gallons of diesel And 3,000 tons of emissions annually
Questions?