Vehicle Tracking, Deployment Asset, Equipment Replacement Policy and Measuring Cost

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Vehicle Tracking, Deployment Asset, Equipment Vehicle Tracking, Deployment Asset, Equipment Replacement Policy and Measuring Cost Replacement Policy and Measuring Cost

Rick D. LongobartRick D. LongobartFacilities, Fleet, and Central Stores Manager

City of Santa AnaPresident

Municipal Equipment Maintenance Association (MEMA)

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March 22, 2012

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• Reduce cost, improve efficiency, reduce liability and accident reduction.

• Define and Create vehicle Lifecycle approaches.

• Discuss the key steps in the planning process.

• Describe several types of decision models.

• Identify key elements of the best replacement and charge back approaches and policies.

• Alternative Energy Policies and Procedures

• Resources and organizations.

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Learning ObjectivesLearning Objectives


What is Fleet Management?What is Fleet Management?


Consists of two main distinct functions:

•Fleet Management: – Identify the vehicle/equipment type needed.– Purchase a vehicle for a department/division.– Develop and manage a replacement, deployment, and

tracking program, dispose of vehicles and equipment once their useful life has been attained.

•Fleet Maintenance:– Service and repair vehicles and equipments.– Ensure all equipment is safe, reliable, economical, and

maintained in the most cost-effective manner.

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Fleet Management FunctionsFleet Management Functions


Developing an Efficient Fleet Developing an Efficient Fleet Management ProgramManagement Program

Vehicle & EquipmentVehicle & Equipment PoliciesPolicies

Maintenance Cost and Maintenance Cost and Rental RatesRental Rates

Deployment of Deployment of Equipment and GPS Equipment and GPS

Tracking Tracking


Best Practices by a City FleetBest Practices by a City Fleet

You can only ManageYou can only Managewhat you can See what you can See

andand Measure Measure


Best PracticesBest PracticesGPS Solution GPS Solution

Vehicle Tracking Phase IVehicle Tracking Phase I


GoalsGoals

• Increase productive employee time available during the day

• Reduce Greenhouse Gases • Reduce maintenance and fuel costs• Remote engine diagnostics and trouble codes sent

direct to Fleet• Reduce speeds• Driver safety• Reduce accidents


KPI MetricKPI Metric

• MPG per vehicle • MPG average of the fleet per month• Total miles driven per vehicle • Cost of maintenance and fuel prices • Cost of accident repairs for the fleet per year• Cost of towing for the fleet per year


KPI MetricsKPI Metrics

Metrics continued:• Number of public complaints for driver behavior

per year• Number of calls complaining of lack of…(name the

event: street not swept, traveling too fast.


Successful ImplementationSuccessful Implementation

Focus on specific data:Focus on specific data:• Reduce Speed- alerts sent to Supervisors• Reduce Idle Time- Daily Summary during pilot• Establish Standard Operating Procedures for speed and Idle.• Dispatch –Use the map to dispatch closest vehicle• Routing- Use breadcrumb trail and Landmark reports to see activity• Monitor Begin & End of Day times• Clear communications with employees that this is a tool to help

manage costs and time.• Service Engine Codes as they arise


Management Tracking Management Tracking

Gather 2 years worth of data from your Street Gather 2 years worth of data from your Street Tracking management:Tracking management:

• Annual Maintenance Cost• Labor Cost• Parts and Fuel Cost• Productivity • Utilization


Sweeper Utilization Sweeper Utilization

• Each driver provided the Bread Crumb trail report to his or her supervisor at the end of each day

• Before GPS it took 8 sweepers with 40 hour work weeks to cover the city in a month

• After GPS it took 6 sweepers to cover the same distance and miles of streets


SupervisionSupervision

• Required supervisors to work with a crew once a week for the whole day

• Supervisors gained a better understanding of the work in the field and things that slowed crews down

• Exposed the crews to the work ethic standards that the city expected


Fuel Reduction Fuel Reduction • 50 Light Duty vehicles:

– Reduce 10 miles per week– Reduce 15 minutes of idle per day– Reduce 5 mph of top speeds– = Savings of $42,000 per year in Gasoline costs

• 50 Heavy Duty vehicles:– Reduce 10 miles per week– Reduce 15 minutes of idle per day– = Savings of $40,800 per year in Diesel Costs

• Reducing 15 minutes of Idle= $500 per year in fuel savings. (EPA Study)


The Black BoxThe Black Box

Why so many black boxes?Why so many black boxes?


Vehicle Life Cycle: An OverviewVehicle Life Cycle: An Overview


Vehicle Life Cycle – Phase IIVehicle Life Cycle – Phase II


Develop an Equipment Develop an Equipment Replacement Policy Replacement Policy

• Why do you need an Equipment Replacement policy?

• What should it look like?• Who should know about the policy?• How do you adopt the policy?• Buy-in of the policy


Equipment Replacement PlanEquipment Replacement Plan and Matrix and Matrix

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Establish a minimum vehicle replacement criteria for all classes of vehicles:•Utilization•Number of years in service

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Prepare and Develop a Vehicle Prepare and Develop a Vehicle Replacement CriteriaReplacement Criteria

Things you need to consider:• Vehicle down time cost• Repair costs• Availability of new vehicles or

equipment

• Safety• Public image• Resale value• Replacement cost


CATEGORIES MILEAGE/HOURS YEARS

Light Vehicle 120,000 MILES 12 YEARS

Large Vehicle 80,000 MILES 12 YEARS

Heavy Equipment 6,000 HOURS 12 YEARS

Special Equipment AS NEEDED AS NEEDED

Miscellaneous AS NEEDED AS NEEDED

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Sample of Replacement ScheduleSample of Replacement Schedule

Source: Paradise Irrigation District – 2010 Proposed Vehicle & Equipment Replacement Policy


Equipment Replacement Matrix Equipment Replacement Matrix

..\..\Backup Files\Fleet Services Division\Policies and Procedures\optimum replacment police-3 vehicle life cycle used Culver City.XLS


Equipment Replacement Equipment Replacement Committee Committee

• Determine who should be in the committee.• What is the replacement criteria? • What should the outcome look like?• Are there any variables?


Fleet management team will determine the following:

• Is the vehicle type and utilization justified?

• Is the type and style of vehicle or equipment is still suited for the task?

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Next StepNext Step


Vehicle Life Cycle – Phase IIIVehicle Life Cycle – Phase III


• Maintenance and Operation charges

• Straight line deprecation

• Rental rates based on miles

• Rental rates based on fuel or hours usedF:\Santa Ana Documents\FMCS Study 2011\New Rental Rate 2012\MODEL Equip

Rental Rate 02-02-12 DRAFT.xlsx

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Equipment Rental Rates and Cost Equipment Rental Rates and Cost


• Fleet Management system• Financial software systems• GPS Tracking• Motor Pool reservation system• Accident collision reporting • Vehicle video monitoring systems• Vehicle data Inspection

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How Do You Capture The Data How Do You Capture The Data


• MEMA – www.memasocal.org • APWA – www.apwa.net • NAFA – www.nafa.org • RMFMA – www.rmfma.org

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Resources Resources


Questions?Questions?Rick D. Longobart

Facilities, Fleet, and Central Stores Manager City of Santa Ana

215 S. Center Street Santa Ana, California 92703

Office 714 647-3348Cell: 714 926-6332

[email protected]