general services administration

General Services Administration

“What gets measured, gets done.”

– Anonymous

Because performance measures can:Help you make a case for more (or fewer)

resourcesIdentify areas where you need to improveEmphasize your strengths (prove you are doing a

good job)Help you track future performance improvement

or declineLay the foundation for FAST and other reports

Is accepted as meaningful Tells how well goals and objectives are being met Is simple, understandable, logical, and repeatable Shows a trend Is clearly defined Allows for simple and consistent data collection Is timely Drives appropriate action

Management above the fleet management organization often does not understand the science and complexity of fleet management.

An important Fleet Manager’s responsibility is to establish and communicate key fleet performance measures, their meaning, and significance.

Communicate performance to:• Leadership• Customers• Fleet Employees

How many vehicles do we have? Types? Do we have too many vehicles? How do we

know? What's our maintenance cost? By type? Do all our vehicles receive PM? Are we competitive with local repair shops? What is our fleet MPG? By vehicle type? How many accidents do we have? How are the numbers trending?

• A metric is a quantifiable and repeatable standard of measurement;

• A performance metrics program means that you have a process for developing objective sets of data to measure how your fleet is doing relative to goals;

• Use the metrics to develop benchmarks, a standard by which you can measure progress (or lack thereof) against past performance

• If you don’t know where you’ve been and where you’re going, you won’t know when you’ve gotten there.

CostQuality of ServiceTimeliness of ServiceCustomer SatisfactionConformance with Best PracticesCompliance with Legal RequirementsContractor or worker performanceSafetyAccidents

• Basic Fleet• Inventory • Utilization• CPM / CPH (Cost per Mile or Hour)

• Maintenance Shop• PM Compliance• Productivity• Scheduled versus Unscheduled• Parts • Fleet Availability

• Fuel• MPG• Number of transactions• Alternative Fuel Use

Great data driven metric Right-sizing metric Establishes a standard justification for assignment Objective

Quantify as: Miles driven Hours operated or in use Number of trips

Class# of

Units

Total Mileage Hours

Avg Annual Miles / Hours

Annual Use Target

Actual Monthly Miles / Hours

Monthly Use Target

Minivan, Passenger 56 688,843.00 12,300.77 6,150.38 1,025.06 512.53

Sedan, HYB 23 342,178.00 14,877.30 7,438.65 1,239.78 619.89

Pickup, LD, 4X4 38 295,433.00 7,774.55 3,887.28 647.88 323.94Pickup, MD, 4X4 19 128,820.00 6,780.00 3,390.00 565.00 282.50

Bus 12 432,987.00 36,082.25 18,041.13 3,006.85 1503.43

Forklift, Diesel 24 21,971.00 915.46 457.73 76.29 38.14

•Establish Standard for each class of equipment•Don’t Forget about your off road equipment

UtilizationUtilization

Average age of your fleet by Class and Type Average total miles Average Miles per Gallon Average Cost per Mile (or Hour)

Class CodeClass Total Avg Age

Avg Odometer MPG CPM

SEDAN 15.00 7 33211 28.40 0.13

VAN, CARGO 78.00 6 25758 16.90 0.16PICKUP, COMPACT, EXT CAB 4X2 23.00 5 20764 15.30 0.19

SPORT UTILITY, MD, 4X2, 4X4 19.00 3 23400 13.20 0.42

TRUCK, 6X4 5.00 12 102347 8.90 1.34

SWEEPER, ROAD 4.00 9 43678 10.30 0.97

MOTOR GRADER 2.00 22 6543 5.50 1.45

• Cost Per Mile / Hour – (CPM, or CPH) should include:

Ownership (Fixed) Costs•Depreciation•Indirect (Admin – Overhead)

Operating (Variable) Costs•Maintenance & Repair Costs•Fuel

Total Miles Driven 5,654,765 Average Purchase Price $19476

Total Maintenance Costs $347,320Estimated Residual Value $3400

Maintenance CPM $0.06 Depreciation $16076

Total Fuel Costs $567,500.00Estimated replacement cycle 6

Fuel CPM $0.10 Depreciation Per month $223.28

Total M&F Costs $914,820.06Estimated Monthly Mileage 1025

Total Operating Cost Per Mile $0.16 Capitol Cost Per Mile $0.22

•Not all Agencies use depreciation•Use to develop CPM for all classes

Total Fixed Cost Per Mile = $0.22Total Operating Cost Per Mile = $0.16Total Cost Per Mile = $0.38

Measure Target

Fleet availability 95%

Turnaround time 70-80% in 24 hours

Rework rate Less than 2%

Road call rate 2%

PM Compliance 95%

Scheduled work 55-65%

Billable hours 1,500 hours

Technician training 40 hours per year

Customer satisfaction 90-95% good or better surveys

•Fleet accident rate – accidents per million miles•Average repair costs for accidents•Money recovered from programs•Lost time due to accidents

Benchmarks are trends or comparisons expressed as metrics;

Your current metrics are most valuable when they are compared to another metric or benchmark (provide a historical context);

By capturing and benchmarking metrics, a fleet manager can demonstrate improved performance;

Transform your metrics into trend lines.

How are you doing?

Now how do you think you are doing?

Industry Norm

Best in Class

1. Benchmark against yourself (year by year)2. Benchmark against peers3. Benchmark against industry standards4. Benchmark against “best in class”

• Use Internal vs. External comparisons• Other Agencies• Contractors

• Share the data• Customers• Leadership• Agencies (DOE, GSA)

1. Develop a plan that describes how you will gather necessary information and calculate the measure.

2. Establish a suggested performance level for each measure.

3. Assess performance against the established performance level.

4. Based on performance levels, as required, take corrective actions to work toward achieving established goals.

Metric Why How When Who Target

Develop a detailed description of each factor when building your plan for implementing your performance metric program.

Establish goals based on the data Improve process, set goals, measure at

determined intervals, and adjust goals if necessary

Don’t be afraid of bad data! Get customers involved in the process Establish exception report◦ High & low cost per mile◦ High & low utilization◦ PM compliance◦ Fuel MPG◦ Maintenance costs

Metrics can modify behavior Never let it become personal

“There is no guarantee of reaching a goal at a certain time, but there is a guarantee of never attaining goals that are never set.”

David McNally in Even Eagles Need a Push

MERCURY ASSOCIATES, INC.“Specializing in the science of fleet management.”

For more information, contact:

Adlore Chaudier Ph.D.Director, Federal Fleet Consultingachaudier@mercury-assoc.com

262-215-5566 (cell)

Gary HatfieldDirector, Public Sector Fleet Consulting

ghatfield@mercury-assoc.com 941-685-6907 (cell)