By: Casey Dunn, Texas Chapter Member
What is the most important KPI in our business, Down Time, Fleet Availability, PM Compliance, Technician Productivity? What about Safety KPI’s, Number of Days Since Last Incident, Total Case Incident Rate, Number of Days Since Last Workers Comp?
Safety KPI’s are often overlooked and treated “as just a cost of doing business” but in fact accidents are preventable. Safety does not happen by itself; safety is a culture and must be groomed to become second nature by our employees.
If you are not monitoring your Safety KPI you should begin immediately. We measure our business with KPI’s and safety is no different, after all how are we going to make improvements if we do not know where we stand currently?
. How to implement a Safety Culture
In a down turn economy we might think “I can not afford to spend money on safety”. Now more than ever we can NOT afford not too! If we evaluate what we spend on safety incidents, lost time, lost productivity, workers comp we will find preventing safety incidents is far less expensive than we think.
We as managers have a responsibility to our employees and they deserve to go home in as good as shape as they arrived. Our employees have a responsibility to follow our Safety Policies, use PPE provided and advise their manager is something is unsafe.
We are in the business of both predictable and preventive maintenance, is it not the same when it comes to Safety?
By: Shawna Laird, Business Manager
Knowledge is power. To remain competitive, fleets must capitalize on their efficiencies and maintain full visibility into their operations. Fleet managers who have access to performance information when and where they need it have the power to make decisions that maximize their resources and effectively cut costs. In order to optimize productivity, management needs control over what information they receive, when they get it, and how it is delivered.
Instead of scrutinizing reams of reports and spreadsheets, fleet managers and analysts might consider using custom dashboards. Just like the dashboard in your vehicle gives you key information on your RPMs, oil pressure, and those blinking lights that tell you are running low on fuel or the engine needs to serviced, business dashboards can give managers a quick and informative look into how their maintenance operations are running. Demand for dashboard applications continues to grow as fleets increase the information available about their operations and look to provide their personnel with tools to conquer that volume of data.
Most dashboard applications fall into the category of business intelligence. They process and condense data into summary values and key performance indicators (KPIs) to provide an overview of your operations. Graphical displays are a distinct advantage and a valued alternative to traditional reports. Couple that quick view with the ability to “drill down” to get the details and you have all the information you need in a matter of seconds.
Dashboard applications aren’t just useful for the Fleet Manager, but also for shop supervisors, parts clerks, and even technicians. If technicians had access to customized dashboards (i.e. their direct vs. indirect labor), would they become more productive?
Dashboards that have flexibility in their reporting periods are an advantage because extended time periods enable trend analysis for spotting serious problem areas early. Automating the dashboards is convenient and practical. Information that is current and always available from any computer is the goal. Talk to the Information Technology Department about placing dashboards on the inter- or intranet.
For more information on Dashboard Applications, talk to your fleet software provider or contact a fleet consulting firm.
By: Shawna Laird, Business Manager & Maggie Laird, Business Services Team
No matter what we buy today, there are hidden costs associated in our purchase price. The manufacturers and vendors set the price of the part(s) to include all their associated costs and a profit. Government fleets agencies are not typically allowed to make a profit, but we should cover all of the related costs. We could hide those costs in a fully burdened shop rate, but as those costs climb, we are in jeopardy of not being market competitive. Changing the charge rate for labor to reflect only the maintenance related costs and adding parts markup to cover the cost of the parts operations allows the managers to better monitor and manage their operations and stay competitive.
There are different methodologies in calculating a parts markup. Here are some examples:
Now how do you define the total cost of your parts program? Some programs charge a flat mark-up percentage without fully understanding what that markup should cover. Some things to consider when determining the “total cost”:
Also remember, that the cost of a part rises every minute it is not used on a vehicle. If a part is ordered and then sits on a shelf, it continually accrues costs. Warehousing and labor for physical counts can quickly multiply. Parts programs, ideally, would only keep parts that turn over rapidly and thereby keep the cost of a part low. So when calculating total costs, be sure to consider the cost of keeping certain hard-to-acquire parts or parts with long lead time on the shelf.
The FleetPros Blog is written and moderated by the Business Manager with contributions from the membership and Business Services Team.